Is AI the Future When it Comes to Capital Markets?

Is AI the Future When it Comes to Capital Markets?

In the middle of the 20th century, the first successful artificial intelligence program was created after ideas had been developing around the subject over the previous years. It was for the game checkers, and was brought to life in 1951 (and worked on over the following years) by Christopher Strachey. It advanced to the point where it could then be played against by experienced checkers players. The development in this form of game AI is considered a turning point in technology – what other possibilities were out there?

In modern day, AI has come on leaps and bounds, even though it has been less than a century since it’s initial conception. Now, it spreads across most industries and has become a force to be reckoned with. In this article, we are going to focus on the use of ai in capital markets. Is AI the future when it comes to investing and money management? Let’s explore the subject.


The beauty of AI is it takes the pressure off humans through automation. It can rapidly analyze huge chunks of data and answer important questions. When it comes to capital markets, you want to know about the risks involved, potential forecasting, and generally what to expect. Whilst often you can’t be given a guarantee when it comes to stocks and shares, artificial intelligence can at least give you a good idea of potential outcomes for you to consider. This means you can make smarter choices. 

Noticing Patterns

As we mentioned, AI assesses the data available to highlight your options. One of the ways this is done is by noticing data patterns. This could be by its knowledge of previous events that are similar, for example if a natural disaster occurs and something of a similar nature happens again. AI can look at what happened the previous times and how the market recovered, within what timeframe. This can mean it can keep you more informed than ever, by taking out a lot of the legwork involved with looking at historical data. 

Spotting Mistakes

AI is also great for picking up on mistakes or anomalies. When there is never ending data to analyze, it is incredibly difficult for one individual human to manage it successfully. Mistakes are easily made, whether due to data being incorrectly input or analyzed. With the automation from AI, answers are created much more quickly and as the technology follows a set format, mistakes are greatly reduced. This has massively helped capital markets as human error can be incredibly costly when it comes to asset management. 

What Does the Future Hold?

AI has already made a positive impact on investors in capital markets. With the implementation of this type of technology, firms have seen great monetary gains. With better efficiency and risk control, the future is looking bright for AI assisted investing. The likelihood is that most capital markets will adapt to this way of asset management as there are so many more benefits and it has proved to be far more cost effective.

About the author


Tom Bernes

Tom Bernes is the Editorial Director at The Next Hint Inc.

Prior to joining The Next Hint Inc, Tom had a hand in a number of online and print publications, including as chief copy editor and Government Technology Magazine as managing editor. He also did a stint in Sydney as group editor of RBI Australia's manufacturing group, which is when he also developed an affinity (a love, really) for cricket.

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