Wall Street’s expectations for AI’s influence on markets are skyrocketing, JPMorgan survey says

Amid the recent hype surrounding ChatGPT, Wall Street increasingly anticipates artificial intelligence will change how markets operate.

JPMorgan survey found that 53% of institutional traders believe AI or machine learning will be the technology that has the biggest influence on trading over the next three years. Last year, only 25% of survey respondents held that view. 

“We continue to see strong momentum towards electronic trading, as seen by 100% of survey respondents predicting an increase in electronic trading over the coming years,” Scott Wacker, JPMorgan’s global head of FICC e-sales, said in a statement included in the survey.

To be sure, AI technology has been revolutionizing Wall Street for years. For example, the vast majority of trades are already executed by algorithms.

And many asset managers have been using some type of AI, according to Bloomberg Intelligence’s 2022 US Institutional Equity Trading study.

But since OpenAI’s language tool ChatGPT broke onto the scene in November, the bot has proven competent in writing articlesdating-app messages, and emails, giving rise to predictions on which jobs could soon be replaced by AI.

“We’re seeing a lot of new entrants in the fixed income market which is really pushing the electronic agenda for the whole industry,” Wacker maintained. “It’s an exciting time for the electronic and automation space right now, as we look to offer clients added choice of execution options.”

Meanwhile, the hype created by ChatGPT has sent artificial intelligence stocks like Nvidia surging recently. The craze has even sent some obscure small-cap artificial intelligence stocks soaring too.