Institutional investors increasingly recognize the role of artificial intelligence (AI) in trading processes with each passing year. A recent JPMorgan survey found that most of them believe neural networks will be a key technology for stock trading in the next three years.

Traders Praise Prospects for AI Technologies

According to a survey conducted by JPMorgan analysts, 61% of institutional traders surveyed expect AI and machine learning to have a greater impact on trading processes than other technologies in the next three years. By comparison, the percentage of AI adherents was 53% in 2023 and 25% a year earlier. 

Respondents also highlighted other developments that could positively impact the future of trading in the coming years, namely:

  • application programming interfaces (API) (13%);
  • distributed ledger technology (DLT) and blockchain (7%);
  • quantum computing (7%);
  • mobile trading applications (6%);
  • natural language processing algorithms (6%).

What’s notable is that traders are getting more skeptical of certain technologies every year. For example, blockchain technology became less interesting to investors since 2022, losing 18% of adherents in two years. Mobile trading apps also saw a decline here, with 23% fewer traders using them in recent years.

Moreover, about 78% of traders don’t plan to trade cryptocurrencies in the next five years. Furthemore, the percentage of investors not interested in trading digital assets grew by 6% since last year. However, the percentage of respondents who started crypto trading increased slightly from 8% in 2023 to 9% in 2024.

JPMorgan surveyed 4,010 institutional traders conducting their professional activities in 65 countries.

By the way, a recent PricewaterhouseCoopers survey showed that 25% of CEOs worldwide plan to lay off at least 5% of employees in 2024, replacing them with AI-based systems.

Author: Nataly Antonenko
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