According to a survey conducted by the worldwide financial services conglomerate JP Morgan, more than half of institutional traders have concluded that artificial intelligence and machine learning will be the predominant technologies guiding trading decisions over the next three years. Also, this result was cited four times more often than blockchain or distributed ledger technologies.
JP Morgan’s e-Trading Edit report, now in its seventh year of existence, surveyed 835 institutional traders from 60 global markets and unveiled their views on various asset classes. The company was able to discern which topics are drawing considerable attention and upcoming trends through this assessment.
With the recent bear market in crypto and increasing public anticipation concerning accessible AI technology, such as ChatGPT, financial industry professionals have re-evaluated their outlook. Surprisingly, blockchain and distributed ledger technologies tied with AI and machine learning came in second place, with 25% of respondents perceiving them as critical to future growth; mobile trading applications ranked first at 29%.
AI has emerged as the leading technology category with a 53% citation rate, a dramatic leap over API integration (14%), blockchain (12%), and mobile apps (7%). AI has also overshadowed even quantum computing and natural language processing.
JP Morgan’s survey revealed that 72% of traders have no intention of trading crypto or digital coins in the near future. However, 14% anticipated engaging in cryptocurrency trade within five years.
According to the report, crypto and digital coins, commodities, and credit are expected to experience extraordinary growth in electronic trading volumes over the next year. Participants even stated that by 2024 they anticipate 64% of their activity will be in cryptocurrency.
It’s no surprise that traders expect the markets may face a stormy future ahead; when asked which potential developments will have the greatest impact on 2023 markets, respondents pointed out recession risk (30%), inflation (26%), and geopolitical conflict (19%) as top concerns.
JP Morgan’s e-Trading Edit report is only the most recent in a string of studies and reports released this month on cryptocurrency and digital assets. A few days ago, JP Morgan forecasted “significant obstacles” for Bitcoin and Ethereum while highlighting that Solana, Terra, as well as tokens, had progressively been becoming more prevalent within DeFi (Decentralized Finance) & NFTs (Non-Fungible Tokens).
Last month, JP Morgan assessed Coinbase‘s potential future and concluded that the Shanghai upgrade for Ethereum could bring about a new epoch of staking for this leading crypto exchange.