According to a recent survey conducted by JPMorgan, institutional investors are increasingly recognizing the value of artificial intelligence (AI) in the future of trading. The survey, titled “e-Trading Edit: Insights from the Inside,” collected responses from 4,010 institutional traders in 65 countries. The results revealed that 61% of the participants expect AI and machine learning (ML) to have the most significant impact on trading within the next three years.
In terms of technology rankings, AI and ML took the top spot, followed by application programming interface (API) integration, which was chosen by 13% of respondents as a key technology shaping the future of trading. Blockchain or distributed ledger technology and quantum computing both received 7% of the respondents’ preferences. Mobile trading applications and natural language processing secured 6% of the votes.
Notably, AI and machine learning have been steadily gaining importance in JPMorgan’s reports over the past few years. Two years ago, these technologies accounted for only 25% in terms of ranked importance. On the other hand, the survey revealed growing skepticism among institutions regarding the role of other technologies in trading, such as mobile trading applications and blockchain. Since 2022, blockchain and mobile trading applications have lost 18% and 23% of investor support, respectively.
AI has been reshaping the finance industry by offering various features, including trade predictions and real-time threat identification to market sentiment. According to a report by Nvidia, 30% of respondents have integrated AI and ML into their trading strategies, resulting in a reduction of annual revenue by more than 10%.
Despite the increasing recognition of AI in trading, JPMorgan’s survey showed a decreased interest in cryptocurrency trading among institutional traders. A staggering 78% of respondents stated that they have no plans to trade cryptocurrencies like Bitcoin or digital coins within the next five years. This percentage has increased since last year when 72% of respondents expressed unwillingness to trade such assets. However, there was a slight increase in the number of respondents who have started trading or currently trade cryptocurrencies, rising from 8% in 2023 to 9% in 2024.
JPMorgan has been known for its controversial stance on cryptocurrencies in recent years. CEO Jamie Dimon has been critical of Bitcoin and other cryptocurrencies, even after the company became an authorized participant in one of the fastest-growing spot Bitcoin exchange-traded funds managed by BlackRock.
As the trading landscape continues to evolve, it is crucial for investors to navigate the volatile market and protect their cryptocurrency investments. Experts and Bitcoin OGs offer valuable insights on how to safeguard your crypto assets in these uncertain times.