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AI Investment Advice Arrives: Are Cryptocurrencies Ready?
Disclosure: The views and opinions expressed herein are solely those of the author and do not represent the views and opinions of the crypto.news editorial.
Long before OpenAI introduced the world to ChatGPT’s powerful artificial intelligence (AI) model, rudimentary automation was deeply rooted in the financial world.
In 1978, for example, the award-winning mathematician James Simons founded Renaissance Technologies, a quantitative hedge fund, uses data to analyze statistical probabilities for stock price movements. The firm’s signature Medallion fund was established in 1988 and would enjoy the best documentation in the history of investments.
Shortly after Simons introduced quantitative investing, expert systems has become the norm in the banking and finance industry to mitigate the risks of human error. Eventually, they were used to formulate financial plans for individuals with relatively high incomes.
More recently, machine learning, natural language processing (NLP), and interactive chatbots have been leveraged to help investment firms, banks, credit bureaus, and other financial institutions formulate predictive analytics, combat fraud, understand customer needs, streamline customer support, and more. .
Now in the “The golden age of artificial intelligence”, powerful new AI models are introducing a host of disruptive tools and solutions with the potential to redefine the financial services industry. However, as most industries eagerly implement AI solutions to streamline internal processes and provide better customer service, the once innovative financial sector has been left behind, second to Teddy Flo, general counsel of Zest AI.
But that is starting to change, in part thanks to the adoption of artificial intelligence in the cryptocurrency and blockchain industry.
We have already seen numerous crypto platforms and AI-based projects that leverage AI for various reasons. Platforms like Recover.aia machine learning platform designed to automate tasks like data processing and trading, and Bittensor, a decentralized network that enables AI knowledge dissemination, show ingenuity at the intersection of blockchain and AI.
Now, traditional finance could easily integrate the next generation of artificial intelligence. At this point, the cloud-native SaaS (Software as a Service) investment management platform FundGuard was recently launched lifted up $100 million in Series C round through its intuitive platform designed to assist asset managers and their service providers in managing mutual funds, exchange-traded funds (ETFs), hedge funds, pensions and other financial products. The platform also supports digital transformation, process automation, AI-driven insights and cloud migration, often serving as a central system for many financial institutions.
Likewise, thanks to an abundance of structured and unstructured data, accessible computing power, and greatly improved neural networks, complex algorithms now provide the foundation for more accessible and more efficient investment options.
As investors look for innovative ways to gain an edge in financial markets, the transformative capabilities of artificial intelligence are now being harnessed to support investment strategies and decision making, highlighted by legendary tech entrepreneur Steve Cohen launch an AI-driven hedge fund with algorithm-based strategies and decisions.
Similar approaches have occurred in the cryptocurrency industry. Because engaging in and making informed decisions about digital assets requires a high degree of technical understanding, the AI-powered cryptocurrency trading platform GT Protocol uses advanced algorithms to act as users’ “personal web3 investing and trading assistant”.
Suitable for all levels of investors, GT Protocol’s platform features an all-encompassing conversational interface to provide analysis and create investment strategies and trading recommendations – a much-needed aid for those with different skills and goals.
Whether you operate in traditional or decentralized finance, we can expect a growing demand for simplified investment solutions and reliable strategies. Artificial intelligence enables the industry to function better by providing customers with easy, painless and intelligent investment solutions.
At this point, it doesn’t matter whether an institution is a DAO, a dApp, a major bank, or an international investment firm, the use of AI is quickly becoming a prerequisite to remaining competitive.