More than half of institutional traders surveyed by JPMorgan Chase & Co said artificial intelligence (AI) and machine learning will be the most influential technologies shaping trading methods over the next three years. AI was cited four times more than blockchain and distributed ledger technology in the survey.
The findings were published in the financial services giant’s January E-Trading Report, an annual assessment of sentiment across various asset classes, containing responses from 835 institutional traders across 60 global markets.
AI outpaced every other major technology category in the survey, with 53% citing it as the most influential, well ahead of 12% blockchain and 7% mobile apps. This is in contrast to 2022 when blockchain and AI are tied for second place with 25% of respondents predicting them to be key emerging technologies. Mobile trading applications came in first at 29% last year.
Last year’s drop in cryptocurrency prices and a spate of scandals and bankruptcies in the industry, such as the collapse of crypto exchange FTX, have dampened interest in the sector, with JP Morgan finding that 72% of traders have have no plans to” [or] Digital Coins” in 2023.
As soon as crypto lost its luster for these traders, AI technology entered, online tools like AI program ChatGPT emerged as one of the fastest growing consumer internet apps. It can perform language-related tasks from answering user questions to composing essays based on complex prompts, and reportedly had 100 million unique users in January, according to analysts.
crypto profit?
While institutional traders are taking a shine to ChatGPT, so are cryptocurrency enthusiasts, using it for research, building trading bots, and coding assistance for developers. Thus, AI outpaces crypto as a hot emerging technology, with many blockchain-based companies looking to integrate it into their business models and platforms.
US-based cryptocurrency exchange PayBito said this month it will integrate ChatGPT on its platform to teach new investors about crypto trading. PayBito said that AI integration in crypto can enhance market data analysis and trend predictions.
Over the weekend, Justin Sun, founder of the open-source blockchain-based system TRON, announced a framework for integrating AI systems such as ChatGPT and OpenAI onto a blockchain-based payment system.
“By combining AI technology with the security and efficiency of blockchain, AI developers can maximize their potential… Tron Blockchain provides the best infrastructure support for all AI developers by leveraging OpenAI, ChatGPT and its robust blockchain payment system.” could,” Sun wrote in a twitter thread,
“This framework will realize a decentralized payment system that is secure, reliable, tamper-proof, anti-censorship and AI enabled, helping people build a new decentralized, intelligent financial ecosystem,” Sun said. .
However, the 32-year-old crypto entrepreneur received mixed reactions On his thread on Twitter, he was taking advantage of the latest tech buzz and jargon with some sense. The price of the TRX token on the TRON blockchain was unchanged since Sun’s comments, according to data from Coinmarketcap as of press time.
new model
However, other companies – such as Numerai, an AI-run hedge fund; and Ocean Protocol, a blockchain-based marketplace that sells tokenized data – are building new business models based on AI and crypto integration.
SingularityNet, a project aimed at creating a blockchain-based marketplace for artificial intelligence services, has seen its native token AGIX jump over 200% from US$0.17 to US$0.55 over the past 7 days, according to data from CoinMarketCap.
Although the JP Morgan report showed that institutional investors were more upbeat about the immediate implications of AI, respondents said that investors, overall, are bullish on the crypto space.
According to the report, crypto and digital coins, commodities and credits are estimated to account for the largest growth in electronic trading volumes next year, and 20% of respondents plan to start crypto trading within five years.
This suggests that the weaving of AI technology with blockchain and Web 3 could bring back some of the buzz and investor attention to the cryptocurrency industry that it lost during the turbulent 2022.
