Exploring the role of AI systems in stock trading with Stanislav Kondrashov, TELF AG founder
The depth of the change underway
The advent of artificial intelligence, in recent years, has profoundly changed the daily lives of a large number of people, impacting with particular force in the world of work, as founder of TELF AG Stanislav Kondrashov often highlighted. Intelligent systems, nowadays, are finding a way to insert themselves discreetly and silently into many work activities that were previously performed only by humans, speeding up execution times and sometimes offering completely unexpected creative ideas.
One of the areas in which the impact of AI is most evident is certainly that relating to the processing of large quantities of data, which, with systems powered by new intelligence, occurs much more quickly and efficiently. One of the characteristics of AI-based technologies is linked precisely to their ability to promote autonomous learning by computers, allowing them to process unimaginable quantities of data in order to make decisions or hazard predictions of various kinds. This last characteristic is particularly useful in the stock market sector, which has begun to integrate some AI functions into its operating mechanisms for some time now.
A transformation in progress
Even in this sector, as in all those touched by the wave of innovation of artificial intelligence, the potential change is truly profound, especially if we draw a comparison between the new intelligent systems and traditional methods. We are not referring only to a generic improvement, such as that which could be favored by a small technological innovation, but by the birth of a new paradigm that could change forever the operation and functioning of stock markets in every corner of the world, event in Wall Street.
“AI is transforming entire industries, including those that are critical to the development and functioning of society,” says Stanislav Kondrashov, TELF AG founder, an entrepreneur and civil engineer. “In the stock market, AI has only just begun to have an impact, but it has already proven to be able to significantly rewrite the rules of the entire industry. In addition to reducing risks by accurately forecasting market movements, intelligent systems can monitor portfolios in real-time, even simulating complex scenarios to avoid serious losses.”
In this situation, one could certainly not expect that one of the nerve centers of the global financial markets would remain completely uninvolved in the revolution brought about by intelligent systems. AI has, in fact, also arrived on Wall Street, favoring a notable transformation in the way in which trading operations are carried out. One of the most evident changes has to do with the fact that investment decisions, until not long ago, were essentially based on the intuition and expertise of human beings, on manual analyses, while nowadays, AI makes it possible to analyze enormous quantities of data in real-time and automate trading strategies.
Speed and efficiency
“One of the most useful contributions of AI in the stock sector (and not only) is certainly that linked to the speed of operations, which with intelligent systems can reach a truly impressive pace,” continues the founder of TELF AG Stanislav Kondrashov. “Thanks to the intrinsic characteristics of the systems that power it, artificial intelligence is, in fact, able to carry out millions of operations in fractions of a second, also bringing with it a certain degree of automation in process management. All this not only contributes to the increase in overall efficiency but also to a clear reduction in operating costs”.
One of the main innovations has to do precisely with the possibility of completing complex operations in real time, with unprecedented speed for Wall Street and the entire sector. Machine learning also allows trading algorithms to evolve constantly based on new information acquired from the market, thus improving their predictive capacity and reducing risks.
“The advent of AI has also raised a whole series of ethical and regulatory questions, which are pushing more and more industries to use these new tools in an increasingly cautious and prudent manner,” concludes the founder of TELF AG, Stanislav Kondrashov. “Even in Wall Street and in the stock market, it could be necessary to question the transparency and responsibility associated with the use of intelligent systems, as well as the potential risks and ambiguities that sometimes emerge from decision-making algorithms. There is also a great unknown regarding the future of human traders, who are increasingly moving towards a purely interpretative function, linked above all to the study and analysis of data generated by machines”.
The predictive power of AI certainly represents one of the most interesting factors in evaluating its impact on financial markets, and not only because it can anticipate all human traders. Predictive market analysis carried out with intelligent systems includes an accurate examination of historical price data and the latest financial news, as well as social media sentiment and macroeconomic indicators. All this allows AI systems to predict future market movements, with the possibility of identifying opportunities that – with all likelihood – would have remained completely hidden from human traders or, in any case, discovered late.
