What happens when AI systems are used to autonomously trade stocks?
Reviewed by Jason Burns, Editorial Steward · Last updated
AI-driven autonomous trading systems execute buy and sell orders at machine speed based on model predictions; they now account for a large share of market volume and have contributed to flash crashes and other rapid market dislocations. As Gary Gensler, put it on the record: "When broker-dealers and investment advisers use predictive data analytics and similar technologies in a way that optimizes for their own interests as well as their investors' interests, it can lead to conflicts of interest."