Jordan Edelson, CEO of TradeZing, shares his insights with NASDAQ on how generative AI will have an impact on the way investors interact in the market.

AI’s generative abilities to accurately predict trends, read behavioral patterns, create program code and more will alter the way many tasks in the business and finance worlds are executed.

Jordan Edelson, TradeZing CEO

ChatGPT and advanced generative artificial intelligence (AI) seem to be the big buzz words on the market today. There is no question that this type of AI is making waves across all industries and aspects of society. In fact, the market for this technology is expected to grow to $110.8B by 2030 at an annual rate of 33% according to Acumen Research and Consulting – that’s only seven years away.

Generative AI was created to consume and produce detailed content as opposed to its more traditional, simpler counterparts. While the latter will always serve a purpose for quick access to everyday information, AI’s generative abilities to accurately predict trends, read behavioral patterns, create program code and more will alter the way many tasks in the business and finance worlds are executed.

What Generative AI Brings to the Table

Inevitably, this pace of innovation means that generative AI will make waves in the trading and investing spaces. While there is still much work to be done in terms of implementation, eventually the technology will allow traders and investors to streamline information and organize data sets unlike previous technology. It will help them act more quickly by giving them the ability to pull out key insights and behaviors and act upon them much faster than before. In fact, Gartner predicts that within two years, 10% of all datasets will be generated by AI. This has the potential to be a gamechanger.

A key driving factor behind the stock market is its innate human element – something that can never be truly and fully replicated by artificial means. However, with human activity comes a higher potential for risk and error, as well as various forms of bias. Machine learning has long been a part of market analyzing strategies and aiding these risks, but we are approaching uncharted territory. The enhanced possibility for AI to correct these risks and biases is another benefit that generative AI will bring to the table.

A Question of Ethics

As innovation progresses, so will the ethical conversation around AI’s role in the financial markets. 

Generative AI is self-contained at this point, but innovators are eager to make new strides and release the next big thing. As the technology becomes more advanced, markets will have to prepare to adapt to this new age of processing information and data. As with all modern day innovations, there are plenty of benefits, but the negative effects must be kept at bay for the greater good. If generative AI begins to outsmart the most experienced humans in the financial space, this could create astounding issues for the economy as we know it. For lack of better words, we must treat this technology like a cautionary tale.

Generative AI will likely be regulated at some point, and it will be interesting to see how this is approached. Who will have access? Who will not? What is fair and what is not? There is a lot of buzz around it right now, as there once was with crypto and NFTs, but as history has shown us, people must remain aware of the missteps that can happen when too much dependence is thrown onto an innovation at once, especially when it comes to the financial systems that hold our economy together.