Will Financial Markets Eventually Be Replaced by AI?

We never doubt AI's capabilities. In fact, we've been amazed by it every day for the past few years. But when it comes to financial markets, we don't believe it will be completely replaced by AI. Why?

1. Financial Markets Are Self-Fulfilling Prophecy Markets

Financial market movements are driven by capital. If your funds are large enough, or if your influence is strong enough, market movements actually lie within your thoughts and actions. AI cannot predict your thoughts. Simply put, you can even randomly publish a prophecy in advance, and the market may move according to your prophecy, which has nothing to do with AI.

For example, market movements often depend on Federal Reserve Chairman Powell's statements. No matter how AI predicts beforehand, Powell has the complete ability to make market movements opposite to AI's predictions (although he may not necessarily do so). In other words, AI can never replace human influence in this regard.

2. Markets Have Reflexivity

Simply put, if you predict correctly and make money, you'll want to take profits. Even if you don't want to take profits yourself, others will think about taking profits, and your profit-taking behavior will inevitably bring market decline. So, once a smart AI guesses correctly, it may actually lead to a crash scenario next.

3. Game Theory Nature

People who really make big money in the market don't make money by predicting direction. They profit through high-frequency trading or market making. In short, they make money by setting rules because they have enough capital, enough speed, and can get licenses. If AI completely dominates the market, then who will lose money?

This can't happen. The final result must be that some AIs lose their magic because they rely on data to make decisions. At that time, there will definitely be some data changes that make some AIs lose their decision-making ability.

Simply Put: Markets Have Reflexivity, Self-Fulfilling Prophecy, and Game Theory Characteristics

Even the smartest AI cannot completely dominate the market.

But one thing is undeniable: all market participants have to rely on AI to make decisions, at least to improve decision-making efficiency. In fact, this phenomenon has always been happening in the financial modeling industry, except that initially they didn't use large models, but technologies like machine learning.

But the emergence of models hasn't changed the essence of finance. In fact, the emergence of the computer industry and even artificial intelligence research were originally designed to serve the financial field. The financial field has always been the earliest field to use AI.

Conclusion

Don't worry about AI replacing traders, and don't worry about all the money in the market being made by AI giants. Instead, you should embrace AI, such as using our dashpull :>