The Transformation of Trading through AI

Artificial intelligence (AI) is significantly transforming the financial industry, particularly in trading practices. AI techniques such as algorithmic trading, which rely on machine learning, have reshaped how capital markets operate, with equity and treasury markets already utilizing high-frequency trading driven by AI. Recently, the emergence of generative AI has introduced new capabilities, allowing for the creation of trading strategies and insights that mimic human decision-making processes. The report emphasizes the need to understand how generative AI impacts trading activities and its potential to enhance market efficiency.