Institutional investors have been increasingly betting on the role of artificial intelligence (AI) in the future of trading, according to a new survey by the multinational investment bank JPMorgan.

In the most recent edition of JPMorgan's “e-Trading Edit: Insights from the Inside” survey, 61% of the 4,010 institutional traders surveyed across 65 countries anticipated AI and machine learning (ML) to emerge as the most impactful technologies for trading within the next three years.

According to the survey’s rankings, AI and ML are followed by application programming interface (API) integration, with 13% of respondents choosing it as one of the most important technologies shaping the future of trading.

Blockchain, or distributed ledger technology, and quantum computing come next, both accounting for 7% based on the respondents’ preferences. Those are followed by mobile trading applications and natural language processing, with both securing 6% from respondents.

Chart

Technologies shaping the future of trading. Source: JPMorgan’s survey “e-Trading Edit: Insights from the inside”

AI and machine learning have been steadily gaining ground in JPMorgan’s “e-Trading Edit” report in recent years, with the tech accounting for just 25% in ranked importance two years ago.

On the other hand, institutions have been growing increasingly skeptical about the role of other technologies in trading, including mobile trading applications and blockchain, according to JPMorgan’s survey. Since 2022, blockchain and mobile trading applications have lost 18% and 23% of investors’ choices as promising technologies for trading, respectively.

AI has been reshaping the future of finance over the past few years by offering various features, including trade predictions or identifying real-time threats to market sentiment. According to a 2022 report by Nvidia, investors have been integrating AI and ML, with 30% of respondents reportedly managing to reduce their annual revenue by more than 10%.

While doubling down on the AI role in trading, JPMorgan-surveyed institutions have become less willing to get into cryptocurrency trading.

According to the survey results, 78% of institutional traders have no plans to trade cryptocurrencies like Bitcoin (BTC $47,944) or digital coins within the next five years. The percentage of investors not planning to trade crypto has increased since last year, as 72% of respondents indicated unwillingness to trade such assets in 2023.

Chart

Institutional sentiment to cryptocurrency investment. Source: JPMorgan’s survey “e-Trading Edit: Insights from the inside”

At the same time, the percentage of respondents that have started trading crypto or trade it already has slightly increased from 8% in 2023 to 9% in 2023.

JPMorgan has been controversial in terms of its approach to crypto over the past few years. CEO Jamie Dimon continued to slam cryptocurrencies like Bitcoin even after the company was named an authorized participant in one of the fastest-growing spot Bitcoin exchange-traded funds by BlackRock.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Ethereum price recovers slightly as whales begin accumulation spree

Ethereum price recovers slightly as whales begin accumulation spree

Ethereum showed signs of recovering its bullish momentum on Thursday, briefly rising to $3,618 as whales entered a buying spree. Despite the movement from whales, the US Securities and Exchange Commission Wells notice to Uniswap could affect Ethereum in the long run.

More Ethereum News

Solana borrowing and lending platform MarginFi sees massive withdrawal after CEO resignation

Solana borrowing and lending platform MarginFi sees massive withdrawal after CEO resignation

MarginFi saw more than $260 million leave its platform into other competing Solana platforms on Thursday. This follows controversial accusations from staking protocol SolBlaze and CEO Edgar Pavlovsky's resignation.

More Solana News

Doge contributor warns of extreme volatility amid Coinbase listing of DOGE and PEPE futures products

Doge contributor warns of extreme volatility amid Coinbase listing of DOGE and PEPE futures products

A Dogecoin contributor warned the DOGE community on Thursday to desist from derivatives trading due to the high volatility that may occur as the Bitcoin halving approaches. The warning comes as Coinbase is set to begin trading the Dogecoin futures contract after gaining approval from the CFTC.

More Dogecoin News

SEC quietly investigated and closed case against altcoin FLOW founder Dapper Labs in September

SEC quietly investigated and closed case against altcoin FLOW founder Dapper Labs in September

Flow cryptocurrency received attention on Monday after Fortune obtained a document revealing the Securities & Exchange Commission closed an investigation on its founding company, Dapper Labs, which is also responsible for developing NBA Top Shot and Crypto Kitties NFTs.

More Cryptocurrencies News

Bitcoin: Short-term holders add 1.12 million BTC, what does this mean?

Bitcoin: Short-term holders add 1.12 million BTC, what does this mean?

Bitcoin (BTC) price action for the past three weeks has been confusing for sidelined participants. On the one hand, investors are ignoring BTC and trading altcoins, and on the other hand, traders are expecting a potential dip.

Read full analysis

BTC

ETH

XRP