AI (Artificial Intelligence) & the financial markets, how will it affect FIRE?

[gimmi80]

Hi, long time reader but first post.

Lately I've been reading on artificial intelligence and algorithms and I'm interested in picking your brain on how you think the development of such technologies can affect the market and in particular FIRE.

Let's say that, for example, Goldman Sachs develops a very powerful and efficient AI with the goal of filling their coffers. what are some of the possible outcomes for everybody else?

[scottish]

Investment bankers are already trying to do this.   It's called high frequency trading.    They pay extra for low latency connections to the stock exchanges so they can make the most of arbitrage opportunities.

I don't think AI is going to change much.    It's been very heavily hyped over the last year...

[Metric Mouse]

I guess everyone could invest in Goldman Sachs?

[tarheeldan]

Algo trading is already big, heck I set one up as part of a little technical analysis course I took.

The high frequency stuff (HFT) provides liquidity. But algos also are only as good as the programmer.

There's a fun little documentary about this, a little old now. My company interviewed a kid who worked with these guys in NY briefly.

https://youtu.be/kFQJNeQDDHA