3 Ways Artificial Intelligence Is Transforming the Stock Market Landscape (and Making It More Secure)

The AI software market has rapidly grown over the past few years. And, based on expert forecasts, it’s not slowing down. According to Statista, the size of the AI software market is predicted to reach a whopping $126 billion by 2025, which is more than 12x what it was in 2018.

And while (at least right now) the majority of the world’s population sees AI as a fun way to generate images they can show off on social media, for investors, artificial intelligence comes with much more impactful benefits.

If you’ve ever wondered whether AI could genuinely transform the stock market landscape or make it more secure, the following are the changes that are already happening.

Building More Profitable Stock Portfolios

One of the most prominent advantages of using AI for trading is speed. An artificial intelligence piece of software can scrape the internet in search of information in a matter of minutes. But even more impressively, it can process all that information in the blink of an eye — something that would take humans hours to do equally thoroughly.

For this reason, AI has the potential to aid traders in making quicker investing decisions. And, considering how time-sensitive successful trading can be, this is a huge benefit.

But is AI, in itself, enough to aid traders in building more profitable stock portfolios? Well, as of right now, it’s not.

These days, making sound investing choices still requires extensive insights, experience, and a bit of human touch. That’s why the best way of utilizing AI is to combine it with other trustworthy stock market investing tools. Nonetheless, the future is guaranteed to see an advancement in artificial intelligence software. In a few years, AI solutions might be enough to inform solid, risk-proof investment decisions.

Fraud Detection

Another highly-impactful effect of employing AI solutions in finance is that this tech could allow organizations to protect themselves from an ever-growing rate of cyber threats. In fact, AI can be so competent at detecting and flagging irregular and malicious trading activity that Nasdaq started applying it to the U.S. stock market in 2019.

Of course, considering that the development of effective security-oriented AI solutions is still expensive, it’s safe to expect the trend to be slow on the uptake. But it is safe to say that, in the future, more and more financial organizations will be starting to implement AI solutions in their fraud detection and security systems to minimize risk and maximize their security.

Improved Customer Service

One unexpected way AI is transforming the stock market landscape is by making communication between financial service providers and their customers vastly less complicated and more straightforward.

In the past, clients who had any account queries or required technical data had to get in touch with a customer service representative, who would then have to collect and send that data. But now, these requests can be dealt with almost momentarily, mainly thanks to the speed with which AI can conduct similar tasks.

With artificial intelligence software, a simple request can be met in minutes without relying on excessive employee involvement. And best of all, the results are immediately felt, as operational costs are vastly reduced. The speed with which matters are taken care of also results in a significant improvement in customer satisfaction rates.

Considering that both of these factors play parts in securing the future of any financial institution, it’s safe to say that the role of AI in improving customer service is tremendous.

Final Thoughts

Artificial intelligence solutions that have the potential of transforming (and securing) the stock market landscape are not yet at their peak level. Realistically speaking, we still have a decade or so to go before we can say that we’ve successfully changed the world of finance.

However, we can say with absolute certainty that the change is coming. And we can rest assured that it’s going to be positive.

What remains to be seen is how small and mid-size organizations will cope with developing and implementing AI in their workflows — whether they’ll go the custom route or pull the trigger and share solutions for the sake of mutual prosperity.

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Owais takes care of Hackread’s social media from the very first day. At the same time He is pursuing for chartered accountancy and doing part time freelance writing.