Humans still outperform AI at making money in financial markets, STUDY shows

Humans still outperform AI at making money in financial markets, STUDY shows

Despite vast progress in many areas, AI remains absent in making money in financial markets.

Analysis of academic research into machine-learning algorithms and stock market forecasting found that AI is currently unfeasible in the real world of financial industry.

A combination of AI and humans can create strong outcomes - as long as the investment decisions are left to humans, write three experts.



Artificial intelligence (AI) has now closely matched or even surpassed humans in what were previously considered unattainable areas. These include chess, arcade games, Go, self-driving cars, protein folding and much more. This rapid technological progress has also had a huge impact on the financial services industry. More and more CEOs in the sector declare (explicitly or implicitly) that they run “technology companies with a banking license”.

There is also a rapid emergence and growth of the financial technology industry (fintech), where technology startups increasingly challenge established financial institutions in areas such as retail banking, pensions or personal investments. As such, AI often appears in behind-the-scenes processes such as cybersecurity, anti-money laundering, know-your-client checks or chatbots.

Among so many successful cases, one seems conspicuously absent: AI making money in financial markets. While simple algorithms are commonly used