• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
  • Articles
  • News
  • Events
  • Advertize
  • Jobs
  • Courses
  • Contact
  • (0)
  • LoginRegister
    • Facebook
    • LinkedIn
    • RSS
      Articles
      News
      Events
      Job Posts
    • Twitter
Datafloq

Datafloq

Data and Technology Insights

  • Categories
    • Big Data
    • Blockchain
    • Cloud
    • Internet Of Things
    • Metaverse
    • Robotics
    • Cybersecurity
    • Startups
    • Strategy
    • Technical
  • Big Data
  • Blockchain
  • Cloud
  • Metaverse
  • Internet Of Things
  • Robotics
  • Cybersecurity
  • Startups
  • Strategy
  • Technical

AI Can Play Poker, but It Can’t Play the Markets Yet

Hugo Kruyne / 4 min read.
August 1, 2019
Datafloq AI Score
×

Datafloq AI Score: 86.33

Datafloq enables anyone to contribute articles, but we value high-quality content. This means that we do not accept SEO link building content, spammy articles, clickbait, articles written by bots and especially not misinformation. Therefore, we have developed an AI, built using multiple built open-source and proprietary tools to instantly define whether an article is written by a human or a bot and determine the level of bias, objectivity, whether it is fact-based or not, sentiment and overall quality.

Articles published on Datafloq need to have a minimum AI score of 60% and we provide this graph to give more detailed information on how we rate this article. Please note that this is a work in progress and if you have any suggestions, feel free to contact us.

floq.to/1QREO

Facebook’s AI-powered Pluribus system astounded the world when it recently defeated six professional poker players – including World Poker Tour title record holder Darren Elias in games of no-limit Texas Hold Em. The AI revolution’ is being lauded in pretty much every sector you can imagine from healthcare and agriculture to fast-moving consumer goods and even reading the news.

Worldwide spending on AI systems grew to nearly $35.8 bn this year a 44% increase in 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.

After retail, the banking and finance sectors are the second biggest beneficiaries of AI investment. Such levels of spending are undoubtedly going to change the make-up of international capital markets and the traders who operate in them. But we must ask ourselves if we are headed in the right direction.

That AI is so popular with venture capitalists now is clear, but what’s not clear is whether it’s working. For every dollar invested in new technology, a dollar is quickly withdrawn from a project that fails to make money. In many cases, investment pours into programmes without a clear sense of purpose. In some cases, it is technology for technology’s sake, rather than addressing a genuine need.

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.

Theoretical neuroscientist and entrepreneur Vivienne Ming is part of 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. In capital markets, that means helping the traders who operate in them become faster, smarter and more efficient at what they already do.

Intelligent machines have big potential for trading in terms of sifting through large quantities of data and other less analytical tasks. While robots are more powerful and efficient than they were decades ago, we have yet to see any conclusive evidence to suggest that robots can consistently interpret trading patterns to make the complex decisions that traders do for their clients.


Interested in what the future will bring? Download our 2023 Technology Trends eBook for free.

Consent

Algorithms are not yet good at determining causality and analysing the meaning behind patterns in the market – this remains a task best reserved for human insight. Machines that decide when to buy and sell are struggling to keep up with a world where many of the rules have been checked out the window. Uncertainty over President Trump’s trade policies and Brexit are just a couple of examples of macro drivers of the international trading environment which AI is poorly equipped to handle. That these are also a challenge for human traders cannot be ignored, however, I believe humans still tend to do better in response to unexpected outcomes as they are not driven by a straight reliance on past patterns of behaviour.

Data-crunching computers making investments predicated on historical price trends did worse than human managers in 2018. These computers were handling some $220 billion of capital, but the losses got so bad investors were forced to pull billions out. The irony is that these types of investments had been regarded as an effective way of protecting portfolios against downside risks in previous years when they were managed by humans.

One also has to ask when things go wrong in AI investing, is the machine legally responsible? I have argued they should not be, but rather it should be the individuals and firms responsible for the development of the AI who should be held to account.

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.

For decades now, a large swathe of companies that operate in the capital markets have attempted to replace human judgment with automated systems. They have also largely ignored stocks in areas of more limited liquidity, smaller capitalisations and emerging growth companies. If we want more competitive and stable global markets, more firms should embrace augmented intelligence to support these more thinly traded types of stocks.

Workers around the world fear that AI and automation will make their jobs redundant and leave them out of work. But the potential of augmented intelligence can be applied to a plethora of sectors beyond capital markets and finance, and I am optimistic that the most likely outcome is a reimagination and reframing of work.

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. Augmented intelligence is the best way forward for the capital markets industry and the global economy.

Categories: Artificial Intelligence
Tags: AI, Artificial Intelligence, markets, skills

About Hugo Kruyne

Hugo Kruyne is Vice-President and COO of Select Vantage Inc (SVI), a trading firm that marries human judgement with advanced technology on a global scale.

Primary Sidebar

E-mail Newsletter

Sign up to receive email updates daily and to hear what's going on with us!

Publish
AN Article
Submit
a press release
List
AN Event
Create
A Job Post
Host your website with Managed WordPress for $1.00/mo with GoDaddy!

Related Articles

The Advantages of IT Staff Augmentation Over Traditional Hiring

May 4, 2023 By Mukesh Ram

The State of Digital Asset Management in 2023

May 3, 2023 By pimcoremkt

Test Data Management – Implementation Challenges and Tools Available

May 1, 2023 By yash.mehta262

Related Jobs

  • Software Engineer | South Yorkshire, GB - February 07, 2023
  • Software Engineer with C# .net Investment House | London, GB - February 07, 2023
  • Senior Java Developer | London, GB - February 07, 2023
  • Software Engineer – Growing Digital Media Company | London, GB - February 07, 2023
  • LBG Returners – Senior Data Analyst | Chester Moor, GB - February 07, 2023
More Jobs

Tags

AI Amazon analysis analytics app application Artificial Intelligence BI Big Data business China Cloud Companies company costs crypto customers Data design development digital environment experience future Google+ government industry information learning machine learning market mobile Musk news Other public research sales security share social social media software strategy technology

Related Events

  • 6th Middle East Banking AI & Analytics Summit 2023 | Riyadh, Saudi Arabia - May 10, 2023
  • Data Science Salon NYC: AI & Machine Learning in Finance & Technology | The Theater Center - December 7, 2022
  • Big Data LDN 2023 | Olympia London - September 20, 2023
More events

Related Online Courses

  • Oracle Cloud Data Management Foundations Workshop
  • Data Science at Scale
  • Statistics with Python
More courses

Footer


Datafloq is the one-stop source for big data, blockchain and artificial intelligence. We offer information, insights and opportunities to drive innovation with emerging technologies.

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Recent

  • 5 Reasons Why Modern Data Integration Gives You a Competitive Advantage
  • 5 Most Common Database Structures for Small Businesses
  • 6 Ways to Reduce IT Costs Through Observability
  • How is Big Data Analytics Used in Business? These 5 Use Cases Share Valuable Insights
  • How Realistic Are Self-Driving Cars?

Search

Tags

AI Amazon analysis analytics app application Artificial Intelligence BI Big Data business China Cloud Companies company costs crypto customers Data design development digital environment experience future Google+ government industry information learning machine learning market mobile Musk news Other public research sales security share social social media software strategy technology

Copyright © 2023 Datafloq
HTML Sitemap| Privacy| Terms| Cookies

  • Facebook
  • Twitter
  • LinkedIn
  • WhatsApp

In order to optimize the website and to continuously improve Datafloq, we use cookies. For more information click here.

Dear visitor,
Thank you for visiting Datafloq. If you find our content interesting, please subscribe to our weekly newsletter:

Did you know that you can publish job posts for free on Datafloq? You can start immediately and find the best candidates for free! Click here to get started.

Not Now Subscribe

Thanks for visiting Datafloq
If you enjoyed our content on emerging technologies, why not subscribe to our weekly newsletter to receive the latest news straight into your mailbox?

Subscribe

No thanks

Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Necessary Cookies

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.

Marketing cookies

This website uses Google Analytics to collect anonymous information such as the number of visitors to the site, and the most popular pages.

Keeping this cookie enabled helps us to improve our website.

Please enable Strictly Necessary Cookies first so that we can save your preferences!