AI Trading Surges as Cryptocurrency Enthusiasm Dims: JPMorgan Survey
In a recent survey by JPMorgan, institutional investors are increasingly turning to artificial intelligence (AI) for trading.
Out of over 4,000 institutional traders surveyed globally, 61% anticipate AI and machine learning (ML) to reshape trading within three years.
Following AI and ML, 13% of respondents expressed interest in application programming interface (API) integration. Blockchain, quantum computing, mobile trading applications, and natural language processing also received attention, albeit to varying degrees.
The importance of AI and ML has notably surged in recent years, contrasting with declining interest in other technologies like blockchain and mobile trading applications.
AI and ML integration in finance has led to advancements such as trade predictions and real-time market sentiment analysis, with a reported 30% reduction in revenue volatility according to a 2022 Nvidia report.
However, institutional interest in cryptocurrency trading, notably Bitcoin, appears to be diminishing. A significant 78% of institutional traders have no plans to engage in cryptocurrency trading over the next five years, indicating a shifting focus away from this sector, despite a slight uptick in current or potential involvement.