According to the article, only a handful of traders currently have access to these tools, giving them an edge in electronic trading. They are able to spot trends and act on them so quickly and in such large scale that it's possible for a trader (that is, and AI trader) to buy in-demand shares and almost immediately sell them to slower traders at a profit.
This use of artificial intelligence is not as glamorous as warrior robots, but it may have the potential to change the behavior of markets, not to mention create an uneven playing field based on access to this technology. The immediate changes are obviously welcomed by the traders who can indulge in high-frequency trading, but what are the ramifications down the road?
Thanks to Colin Allen (a member of the PAIT Planning Committee) for bringing this article to my attention.
Ken Pimple, PAIT project director.