Wall Streeters say AI is going to disrupt their business more than any other tech. Many big investors are getting left behind.
will have on Wall Street, but one portion of the industry has been slow to adopt the cutting-edge technology.
Only 23% of those on the buy side — meaning firms such as hedge funds and asset managers — said they are currently using artificial intelligence in trading inconduct by research firm Greenwich Associates. By comparison, the majority of respondents from banks and trading venues said they were already using the tech.
And while 31% of respondents at hedge funds and asset managers said they plan to incorporate the tech within two years, 46% currently have no futures plans for using AI. All of this comes at a time when AI is far and away considered the technology that will disrupt Wall Street the most in the coming years. More than half of respondents said AI will be "very disruptive" to the industry.
What's stopping hedge funds and asset managers from diving into the tech that nearly all agree will be important boils down to the amount of investment it requires, the report said. With fees continuing to shrink, buy-side firms are happy to outsource AI techniques to vendors, as opposed to spending time and resources trying to develop a tool of their own that might not pan out.
"The ability to easily tap into new, fully-vetted tools through a third-party provider alleviates this problem considerably, reducing the risk while still allowing the asset manager or hedge fund to put cutting-edge technology to work on the trading desk," the report said.It's also worth noting the area firms are currently seeing AI have the biggest impact is via algorithmic trading , something many hedge funds don't see as a differentiator.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Tesla’s AI Chips Are Rolling Out, But They Aren’t A Self-Driving PanaceaTesla's AI chips have been inaptly glorified by some in the media and it's time to set the record straight.
Read more »
Hedge Fund Billionaire Reportedly Donated $37.3 Million to Ensure His Kids Got Into Their Preferred Ivy League Schools
Read more »
A banker revolution against Brexit is brewing in London's leafy stockbroker belt'Opinions are changing,' says one hedge fund manager. Wealthy residents of the Tory stronghold of Surrey are 'appalled at the current government.'
Read more »
Major U.S. investors have billions at risk in Chinese stocksMajor U.S. fund managers have tens of billion of dollars at stake in some of the...
Read more »
Cryptocurrency exchanges including Coinbase are uniting to create a rating system for digital tokensThe points-based rating system determines whether a digital asset falls under U.S. securities law using guidance from the SEC.
Read more »
The Trump Administration Is Trying to Patch Gaps in Birth Control Access Using Planned Parenthood Funds
Read more »