You may have noticed, but generative AI is a hot topic at the moment. And the investment industry — which has never seen a wildly-hyped fad it didn’t like — is on it.
The reality is that quantitative money managers and high-frequency traders have been using “AI” for quite some time now. Machine learning, for example, is useful for predicting trading patterns, while using natural language processing to analyse corporate and central bank waffle is table stakes.
But Man Group’s AHL quant unit has now published an interesting overview of the generative AI landscape that explores how it might affect the asset management industry. Unsurprisingly, the potential is the greatest in language analysis: