Big Data, AI and Machine Learning Adoption: Where Are We Now?

It is difficult to look at the business press today without reading about the onward march of technology and the rapidly diminishing ranks of traders – both on the buy- and sell-side. But what are current views on disruptive technologies among capital markets firms – are they seen as friend or foe? This Market Note summarises the views of over 160 buy-side, sell-side and exchange/trading venue firms on the adoption of artificial intelligence (AI) approaches. Key findings include: two-thirds of capital markets firms are at least at planning/research stage of implementing AI; AI/Machine learning approaches being used primarily in investment decision-making process; and, while current budgets for AI are modest (up to $500k), the majority of firms plan to increase spend on AI over the next 12 months.