AI can play poker, but It can’t play the markets yet

Worldwide spending on AI systems will grow to nearly $35.8 bn in 2019 – a 44% increase on 2018. It’s expected to more than double to $79.2 billion by 2022. In my own sector of international capital markets, the chorus of voices proclaiming the dominance of machine-learning is growing by the day.

But chasing autonomous trading unicorns misses the bigger opportunity of AI and machine learning. The goal should not be to overtake humans but instead augment their abilities – including in the making of trading decisions. Unlike computer algorithms, human traders with expertise and insights can respond to inefficiencies in the market, shock news or unusual activity. The marriage of human judgment with cutting-edge technology enables traders to provide valuable liquidity in more thinly traded stocks which are generally outside the focus of AI-driven strategies. This is essential in providing investors with more options and opportunities, while also encouraging capital formation.

There is a growing cadre of like-minded experts calling for a better understanding of ‘augmented intelligence’ - an alternative conceptualisation of AI focused on how it should assist and advance human capabilities instead of replacing them. AI and automation can – with the right public policy and private sector commitments – give humans across all sectors more time and capacity to focus on being more creative and insightful in the tasks they do well, and ones which robots are often ill-equipped to handle. In a new article for Datafloq, an independent platform for thought leadership on big data, blockchain, artificial intelligence and emerging technologies – SVI Vice-President and COO Hugo Kruyne argues that augmented intelligence is the best way forward for the capital markets industry and the global economy.

Read the article at Datafloq.

 

Hugo Kruyne - August 5, 2019.