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The most attractive part of stock markets is that they always offer opportunities. The processes in the stock market have changed in many ways with artificial intelligence. Market experts say that AI will lead the next wave of economic growth and productivity for at least the next couple of decades.
The algorithmic trading or automated trading used by the institutions and retail investors in the stock market so far does not use the real algorithm of AI. Instead, it is said to be true AI if it adapts to the market conditions and makes trade decisions.
Open AI, a San Francisco-based organization founded by Elon Musk, works toward advancing AI in an open source manner. According to this organization’s report, sometimes AI does not understand what happens around, but this feature improves the ability to evolve in a complex environment without much training by humans opens up a lot of possibilities. AI drives new skills, involvement, impact, and ability to influence the markets.
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The markets provide the correct valuation and liquidity for the stocks. With the implementation of AI in the stock market, the time taken for stocks to reach accurate valuation will drop to a fraction of seconds. AI has the ability to evaluate and predict the correct valuation by considering all technical, fundamental, and external factors. All of this will happen within seconds.
AI has the ability to predict the current and future fair value of any stock. AI will be considered in the evaluation of the stocks in the market; during evaluation, the stock trading algorithm will interact with other algorithms that may lead to crashes. The AI algorithm must be designed in such a way where there wouldn’t be a crash in any circumstances during evaluation.
AI will have a significant role to play in the future of trading. All the trading decisions are going to be taken by AI without human interference in the future. Probably, advanced versions of trading platforms would be built where they could augment themselves.
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