AI Investing, AI in Fund Management, Pension Funds, AI trading in Stock Markets and Global Financial Services AI, Banking AI. Extract from Chapter 21 - new book: How AI will Change Your Life - by Patrick Dixon, keynote speaker on Fund Management AI

Futurist Keynote Speaker: Posts, Slides, Videos - Banks, Banking, Insurance, Fund Management

AI WILL CUT banking costs, improve decision-making and reduce certain risks, in particular from fraud. But AI decisions will also dominate global markets, destroy some banks and risk global economic chaos.

A very important area of financial services is wealth management, and much of this relates to pensions, because for most people almost all the wealth they have, other than their homes if they are owners, is in pension savings (unless they work for government).

AI is taking control of stock markets globally

AI is rapidly taking control of all global stock markets. More than $110tn of company shares are listed in these exchanges, but over 90% of trading decisions are by computers, nanoseconds after a small or large event. Human beings are no longer involved. And increasingly such decisions are controlled by AI.

In the past, computer trades were automated, using human rules linked to market data, social media and news bulletins. The key to ‘algorithmic trading’ is ultra-speed. If there’s an earthquake in San Francisco, or an assassination in Brazil, computers dump huge volumes of shares a few billionths of a second later. That’s because their rules are set to ‘expect’ many others to ‘panic sell’.

The most successful trading companies make tens of millions of dollars a year by sending in their own automated orders just a few billionths of a second before anyone else. They have faster processors, shorter cables, and use other digital tricks such as their own microwave transmitters to avoid latency in public networks.

Because every large investment house has automated software, one big sell can easily trigger ‘panic selling’ or ‘panic buying’ by thousands of others, creating price crashes and spikes. But every one of these price movements is also another opportunity to make money. That is why most orders are so-called ‘high-frequency trades’ (HFTs) – where the same system dumps and buys back a few nanoseconds later, maybe thousands of times over a short period.

These systems have caused all kinds of crazy market swings – for example massive sell-offs triggered by fake news. A share price can collapse by 20% or more. If someone wants to influence an election, a story has to convince over weeks or months, but a ‘fake’ only needs to ‘survive’ for a single second or a minute to spook a market.

Even if the entire market thinks there is a 99% chance that a potentially large news story is complete nonsense, that fake will still earn money. The 1% perceived risk will be more than enough to trigger selling by most automated systems until the situation is clearer.

Read on - buy new book NOW. How AI Will Change Your Life

Looking for a world-class keynote speaker on Fund Management and AI? Call +44 7768511390

* Dr Patrick Dixon is one of the world's best known keynote speakers on global trends, often described as Europe’s leading Futurist. Author of 18 books, he has advised over 400 of the world’s largest corporations, often sharing platforms with their CEOs at their most important global events. His clients include Google, Microsoft, IBM, Intel, LinkedIn and many of the world’s largest manufacturers as well as governments. Patrick is a cancer physician by first training and his first start-up company some decades years ago was an AI-simulator, using computers to talk to and diagnose patients. His website globalchange.com has had 15 million unique visitors with 9 million video views.

How AI will change your life - Contents of Book

Chapter Headings:

Part One: How AI Is Evolving

1 The Truth About Artificial Intelligence 

2 Super-Smart AI and a Reality Check 

Part Two: How AI Will Shape Our Future World

3 Workplace AI

4 Office Workers - impact of AI

5 Healthcare - how AI will drive better health

6 Pharma, Disease Prevention and Wellness - how AI will transform pharma

7 Education – in School and at College - AI challenges to education

8 Adult Education and ‘Truth’ - why AI will redefine "Truth"

9 Software Development - AI will help but less than many think

10 Film-making and Music - get ready for AI revolution

11 Search Engines, Social Media, Publishing and Art - massive AI impact

12 Marketing - most campaigns will be driven entirely by AI

13 Retail - AI will have huge impact on retail eg fashion

14 Travel and Leisure - multiple impacts of AI on airlines, auto industry etc

15 Relationships - relationships with AI bots, and impact of AI on human to human relationships

16 Food Industry - AI will drive greater efficiency

17 Satellites and Space Colonies - impossible without AI

18 Manufacturing, Logistics and Supply Chains - major benefits from AI

19 Construction and Cities - AI will transform construction and the built environment

20 Environment - AI will consume huge amounts of power but also enable sustainability initiatives

21 Pensions and Wealth Management - AI already controls most investment decisions

22 Corporate and Retail Banking, and Insurance - AI poses major threats but will deliver cost savings

23 Cybersecurity - greatest risk from AI right now

24 Surveillance - AI is every dictator's dream tech

25 Military and War - get ready for AI driven wars

26 Government - AI will enhance government and threaten democracy 

Part Three: How Should We Respond?

27 Ten Steps for Governments 

28 Twelve Steps for Individuals 

29 Ten Steps for Companies 

30 Postscript – A Story 

Read on - buy my new book NOW AI Will Change Your Life".

Read on - buy new book NOW. How AI Will Change Your Life

Looking for a world-class keynote speaker on Fund Management and AI? Call +44 7768511390

Join the Debate! What are your own views?

* Your name
* Email address (will not appear or be used)

Send me emails of replies to my comment?

 

1