Can we predict the market future using Artificial Intelligence?

Artificial intelligence is the ‘Big Thing’ right now. Machine Learning and AI is being considered as a solution for almost every problem mankind faces. What makes artificial intelligence attractive is that it combines computing power with an intuitiveness that was previously only available from human involvement.

Artificial intelligence is heavily used in the financial sector. Many believe that soon artificial intelligence will crack the proverbial code of the markets by taking advantage of big data and machine learning.

Nowadays we will find trading platform that allow users to take the added advantage of Artifical Intelligence.

To be completely honest, AI has not reached the point of unlocking the secrets of making money in the market, but, what it is doing currently is giving investors a systemic edge.

To put it in simpler terms, computers are getting better at assessing when risks should be taken along with the amount of risk to take.

Let’s be honest here. Almost every online stock trading app today use some form of AI, but not at the point where it will accurately predict the future. If that was the case, the stock market would quickly collapse.

What it does is look at quantifiable data, and data that previously was unquantifiable, such as speech, video, and photographs, and help investors get a clear picture of where a business is, how society feels about the business, and what the financial predictions for the business could be in the future.

The biggest challenge for AI is that the market is a living thing. When artificial intelligence is applied in a factory, it can help machines make smart decisions within a predefined set of boundaries. In the market, nothing is stationary or pre-defined.

Multiple things that impact the markets that neither humans nor machines can predict. Things such as social unrest, political changes, natural disasters, and economic upheavals can affect the market in phenomenal ways.

For instance, we predicted that a worldwide pandemic would bring the market to its knees. However, many sectors are thriving during the pandemic in ways that no one saw coming. As a result, artificial intelligence is limited in how much of the future of the markets it can predict.

Abundance of valuable information can be gathered AI. However, it has not and in face may never reach the benchmark where it can accurately predict the future of the market with any consistency.

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