Alpha under Threat from Market Technology ‘Singularity’
Anna Reitman published for Finance Magnates an interesting article on AI “Singularity” and its impact on Alpha, quoting Nicolas Vitale and Alpha Novae.
With markets increasingly driven by technology, experts ask a big question: are we approaching a financial singularity in which alpha goes to zero?
The very concept of ‘singularity’ is borrowed from the world of artificial intelligence (AI) research, and refers to a scenario in which AI systems are able to create future superior generations, exponentially faster, ultimately surpassing human intelligence.
Visiting two industry conferences in London, one has something of a mixed image; while fintech advocates hail new technologies and allude to their role in creating a more efficient market, financial singularity is keeping key participants “awake at night”.
Read full article here.