How AI is Changing the Way We Invest

Artificial intelligence is rapidly evolving. Unprecedented advances in machine and deep learning have even called for some concern. Elon Musk, futurist billionaire and CEO of SpaceX and Tesla Motors, has dubbed it mankind’s “greatest existential threat.” Indeed, driverless cars, a technology Musk himself is developing, would displace up to 15 percent of the world’s workers – a figure the Tesla CEO provided himself. The world of finance is by no means immune to the disruption AI will cause. In fact, artificial intelligence is already changing the way we invest. According to Investopedia, algorithmic trading already comprises 70 percent of daily trading. As trading becomes more automated, the need for human analysts has sharply decreased. Traders are already being replaced by AI and, as each day goes by, the technology only grows more sophisticated. Quantitative analysis, a strategy that involves crunching numbers and analyzing data, is a task much better suited for advanced software systems as they are much less prone to error and have the ability to absorb a greater amount of data at a much faster speed. When AI traders do make mistakes, they are able to learn from them at an exceptionally fast rate. What takes traders months…

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