April 19, 2024

Institutions Embrace AI for Trading: JPMorgan Survey

Institutional investors are increasingly favoring artificial intelligence (AI) for trading, with 61% anticipating its impact within the next three years, according to a JPMorgan survey of 4,010 traders across 65 countries.

AI and machine learning (ML) have risen to prominence, ranking as the most impactful technologies, a substantial increase from 25% two years ago. Conversely, skepticism has grown around technologies like blockchain and mobile trading applications, experiencing an 18% and 23% decline in investor preferences since 2022, respectively.

AI and ML have played a pivotal role in reshaping the financial landscape, providing features such as trade predictions and real-time threat identification. A 2022 Nvidia report revealed that 30% of respondents successfully integrated AI and ML, leading to over a 10% reduction in annual revenue. Despite the increasing reliance on AI, institutional traders, as indicated by the survey, are showing reduced interest in entering cryptocurrency trading.

The survey results from JPMorgan highlight that 78% of institutional traders have no intentions of trading cryptocurrencies like Bitcoin in the next five years, representing an increase from 72% in 2023. Conversely, the percentage of respondents actively engaging in or planning to trade crypto has slightly increased from 8% in 2023 to 9% in 2024.

This shift occurs within the context of JPMorgan’s nuanced relationship with cryptocurrencies, as CEO Jamie Dimon has maintained a critical stance on digital assets despite the bank becoming an authorized participant in a rapidly growing Bitcoin exchange-traded fund by BlackRock.

Image By vector_corp

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