incidents such as the 2010 Flash Crash, caused by small data errors entering the system and wiping nearly $ 1 trillion in market value from the US stock market, serving as a stark reminder.
In a similar vein, McIntyre highlights that data and human oversight are equally important for fair and safe leveraging of AI in capital markets, stating:“ If you think about that with that whole phrase‘ garbage in is just garbage out’. Well, it ' s not actually in our world, it ' s a compliance event- it ' s a breach, it ' s a fine. We really can ' t avoid the severity of that.
“ Our clients have got their clients to look after, so for us, it ' s the foundation it stands on. If you don ' t have that single source of truth, then how can you trust the AI to be always consistent? Fragmented data like that need reconciliation to avoid the risk of not getting the numbers right.”
This link between strong data and human oversight marks a significant development in the usage and understanding of AI within capital markets and must be understood as a dual-part mechanism in ensuring compliant and safe implementation.
Consigny adds:“ With traditional machine learning, it was mostly all about the data- you needed good data to get good outputs. But nowadays, it’ s much more about the user. You need people to understand what they are doing, whether that means asking the right questions, interpreting outputs properly or supervising the process critically.”
Wave of the future AI is no longer a future concept in capital markets, but is already reshaping how firms operate, trade and make decisions. As adoption accelerates, the conversation is shifting away from what AI can do, towards how it should be used.
As the industry adapts, mindsets are also likely to change, and striking the right balance between human judgement and technological capabilities is key. In some regards, this may take the shape of a cultural reset, changing the way the markets approach technology and automation, and as McIntyre explains:“ We all think AI is a solution, but we don ' t always know what the problem is.
“ It ' s a cultural thing, especially in the investment management industry- how do we adjust our culture to adopt AI and not see it as a threat, [ but ] see it as an empowerment.”
Building on this, openness to change may prove just as important as the technology itself. Summarising this, Carey concludes:“ My big message is to be adaptable, be curious, embrace it, because AI is here and it ' s powerful, if done correctly.”
“ I do think we are a long way away from AI being able to consistently mimic cognitive functions associated with all types of human intelligence.”
CYPRIAN ZIMECKI, SENIOR MULTI- ASSET TRADER, VONTOBEL ASSET
MANAGEMENT
Issue 88 // thetradenews. com // 35