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ChatGPT-powered Wall Street

The benefits and perils of using AI to trade stocks and other financial instruments

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    • The advent of ChatGPT-powered trading algorithms and similar programs could worsen the problem of too many traders on the same side of a deal.
    • High-frequency trading uses computer programs to analyse market data and execute trades at extremely high speeds.
    • The advent of ChatGPT-powered trading algorithms and similar programs could worsen the problem of too many traders on the same side of a deal. PHOTO: REUTERS
    • High-frequency trading uses computer programs to analyse market data and execute trades at extremely high speeds. PHOTO: AFP

    Pawan Jain

    Published Fri, Jun 2, 2023 · 09:00 AM

    ARTIFICIAL intelligence (AI)-powered tools, such as ChatGPT, have the potential to revolutionise the efficiency, effectiveness and speed of the work humans do.

    And this is true in financial markets as much as in sectors like healthcare, manufacturing and pretty much every other aspect of our lives.

    I have been researching financial markets and algorithmic trading for 14 years. While AI offers lots of benefits, the growing use of these technologies in financial markets also points to potential perils. A look at Wall Street’s past efforts to speed up trading by embracing computers and AI offers important lessons on the implications of using them for decision-making.

    Artificial IntelligenceChatGPTStock tradingWealth & Investing

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