AI Sentiment Survey in Trading

In a debut AI sentiment survey conducted at the forefront of trading, the responses were overwhelmingly positive, with 80% of participants already using AI in some form and 90% viewing it as a future competitive advantage. However, concerns about accuracy and compliance have been raised, as per Laurie McAughtry reports.

Global Trading, in partnership with AMD and ipushpull, launched its first AI sentiment survey in April. Over eight weeks, the survey gathered insights from the industry, including nearly 40% from the buy-side. The survey explored daily AI usage, future plans, concerns, and potential market evolution. 

A significant 80% of respondents use AI, with machine learning (31%), generative AI (24%), and large language models (21%) being the most common applications. Interestingly, 11% use all three forms of AI, with 60% of this group being buy-side. AI applications include code generation, trading statistics, sentiment analysis, investment stock selection, market analysis, and more. A buy-side respondent noted using AI for content summarisation, generation, retrieval, and aggregation.

Despite enthusiasm, some warned that true AI usage is limited. Others were less enthusiastic, using AI mainly for marketing and communications.

Looking ahead, the majority of non-users (just under 20%) plan to adopt AI, with 52% intending to invest. However, 11% remain opposed, and 35% are undecided. Concerns about data standards were highlighted as essential for AI confidence.

An overwhelming 94% plan to invest further in AI, focusing on AI-driven research platforms, coding assistance, data analysis, automation support, pre-trade optimisation, and named entity recognition. Workflow efficiency and automation (51%) were seen as the main benefits, followed by data management and analysis (24%).

Accuracy (40%) tops the list of concerns, followed by compliance (26%). Cost (11%) and regulation (8%) were less concerning. Data ownership and human challenges, such as resistance to change, were also noted.

Overall, 91% AI will provide a competitive advantage, emphasising the importance of proper design and application. Ensuring effective data standards is crucial for AI to deliver a return on investment.

Optimism prevails, with one respondent noting, “We’re only scratching the surface.” The sentiment suggests that future survey results will show significant evolution in AI usage in trading.