How Artificial Intelligence Is Changing Investment Arena

Goldman Sachs, for example, employed around 600 people at their US cash equities trading desk in 2000. Today, this workload has been taken over by AI with the same trading desk employing just two people.

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AI(Artificial Intelligence) concept. deep learning. metamorworks / Shutterstock.com
AI(Artificial Intelligence) concept. deep learning. metamorworks / Shutterstock.com

By Priven Reddy, CEO of KRYPTEUM

Benjamin Franklin famously said that “time is money”, and nowhere does this hold more true than in investing.

The ability to quickly develop dynamic actionable analysis to make investment decisions is a key competitive advantage.

Traditionally, investment analysis and decisions were done by Executive Investment Managers who would interpret reams of data and make predictions based on it. However, no matter how skilled they are, the danger of human error is ever present.

An incorrect calculation here, a missed number there or just simply too much data to process in the time available can lead to errors.

Increasingly, Artificial Intelligence (AI) and Machine Learning (ML) are being used to crunch numbers and sort data in the investment space.

Machine learning and artificial intelligence concept. Computer display illustrative screen and blue tone of automate wireless Robot arm in smart factory background (Photo Credit: www.shutterstock.com)

Essentially, AI does what humans do, except much faster and more accurately. This expediency provides a significant advantage over how investors historically performed manual analysis.

In addition, AI can self-train, updating itself to accurately integrate any new information gained which results in better analysis, daily.

Consequently, the investment industry has changed irrevocably. The teams of investment specialists previously needed are no longer required. The powerhouse investment firm, Goldman Sachs, for example, employed around 600 people at their US cash equities trading desk in 2000. Today, this workload has been taken over by AI with the same trading desk employing just two people.

Despite the tremendous impact that AI is having in the investment space, I don’t believe that it will ever completely take over all investing. A balance of human oversight and AI would be the most logical and safest option. Artificial Intelligence and Machine Learning are of course not the only disruptors in investing.

Digital money , blockchain and bitcoin concept. Block chain texts and network connect link and smartphone screen with blur laptop background , flare light
Digital money , blockchain and bitcoin concept. Block chain texts and network connect link and smartphone screen with blur laptop background , flare light (Photo Credit: www.shutterstock.com)

The blockchain, as a mechanism for cryptocurrency trading, is enabling investors to reimagine both what currencies are and how investment works.

A 2015 meeting with a Saudi Arabian client in the USA was the catalyst that switched me on to the possibilities of merging AI and Machine Learning with cryptocurrency investing. Having had an early start with cryptocurrency investing I was well-aware of the time it required to constantly keep checking markets, source and calculate data to perform analysis on and keeping up-to-date with current social media and news events.

Realising I would not have the time to do this effectively, I decided to incorporate AI with Machine Learning capabilities to trade my portfolio for me. Training any AI model takes huge volumes of data.

For investing, with so many different ratios and indicators, the data required is exponentially more.

One of the first things we had to do was source huge amounts of verifiably accurate historical data to “feed” the system for it to learn how all these things interact with each other.

Two years of development, testing and refining later, we launched KRYPTEUM, the first AI traded cryptocurrency in the world, with the dream of making money while saving investors time.

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