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Could Wall Street Be Transformed With Artificial Intelligence?

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Could Wall Street Be Transformed With Artificial Intelligence?

Finance is of the biggest sectors that could be improved by Artificial Intelligence. AI could start transforming Wall Street soon.

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Artificial Intelligence is globally recognized as one of the most important and exciting tech developments in human history — and with good reason. To date, mankind has been able to produce functional machinery only, but the predictive power of Big Data is bringing us closer to artificial sentience. Machines can learn, think, and improve, which has fascinating implications for our world.

One of the biggest sectors for potential investment is in finance. Experts are starting to ask themselves if AI could transform Wall Street — and it might happen soon.

The Future of Finance

The reason AI is such a powerful investment tool is that it reduces the risk associated with economic interpretation.

Modern finance can be very complicated, but in its simplest form, it is little more than data on pricing and value.

This means that global finance information can be plugged into predictive algorithms to help investors look ahead into what is likely to happen in the markets.

While no amount of data can ever truly make investment fool proof, AI can empower customers and investors alike to make informed decisions — which can be extremely profitable.

Along with the rise of fintech designed to simplify the world of money, AI is already at play in our daily financial lives and on the rise in the investment arena.

A Better Workplace

While there is still a lot of debate around the impact that AI will have on employment figures, the fact is that it can be used to create a better working environment.

Artificial Intelligence and Big Data can not only be used to calculate financial performance — they can both help expand the performance of human capital.

In a Wall Street environment, investment managers are under severe pressure to deliver results and make the right decision thousands of times a day. With so much pressure, any tool that can help the decision-making process will see less anxiety and more decisiveness.

AI can also help big companies fight problems such as absenteeism and poor performance. A situation where companies are performing better means the markets will perform better, and that means there’s more to go around for everyone.

AI isn’t just about automation; it’s also about helping people work smarter.

Better Security

As the financial world becomes more reliant on digital solutions, cyber security must develop to keep pace.

Banking and trading now happen in the palm of people’s hands too, and that’s why the development of products like the fido u2f security key are so important.

With so much money at play, the temptation to use to defraud society is massive. Cyber criminals and terrorists are hard at work creating disruptive software to derail the global economy for their own gain.

AI learns to recognize patterns and it can pick up potential threats in digital environments. Due to its sense of awareness, software that is being developed in one London data centre will be able to continually test its own vulnerability and safeguard against attack.

AI is an important role in the defense of personal data — and at Wall Street, that is essential.

Working Smart

Like so many financial sectors, timing largely drives investment banking.

Knowing when to buy or sell is only the start. Bankers need to know how to maximize every waking moment to ensure that they don’t miss an opportunity.

AI can make the practicalities of working in an always-on industry simpler. A simple example would be coping with traffic. AI software could warn you that there’s a 40-minute delay, and advise when to work remotely.

It may seem like a minor impact, but empowering Wall Street bankers to do what they’re paid to do in a more productive way can see huge growth figures.

Transparent Trading

Due to the way it is portrayed in film and the media, Wall Street doesn’t have the best reputation.

According to SerpAlliance.com, AI is an ethical tool. It is not biased or underhanded. It is not smart enough to take advantage of people, and it’s not greedy. It is purely the application of advanced math and economic systems.

This means that it makes the industry more transparent and trustworthy, which — when coupled with the benefits above — is why AI is so welcome on Wall Street.

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Topics:
artifical intelligence ,big data ,wall street

Opinions expressed by DZone contributors are their own.

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