Navigating the AI Disruption in Financial Markets

ET (Economic Times) CFO and TalentSprint’s webinar on “AI for Financial Markets” with eminent financial market experts from NSE.
Having closely witnessed how AI is transforming financial markets, the panelists shared deep insights.

With the global economy on course to experience an AI-driven productivity revolution, the financial market will inevitably change. From a trader’s perspective, this is both good and bad news. On one hand, automation in trading has already started to make waves in recent years with high-frequency trading (HFT) becoming ever more pervasive. This trend is unlikely to stop now as machines evolve from traders’ tools into becoming valuable unavoidable everyday applications. But it also means that many of today’s jobs are at risk too – there will be fewer positions for human traders and fund managers who can’t use AI in their trade. 

According to IDC, worldwide spending on artificial intelligence (AI) systems will be around $98 billion by 2023. Artificial intelligence (AI) and machine learning are all set to open new opportunities in many industries. 

Panelists Mukesh Agarwal, CEO, NSE Data and Analytics Limited & NSE Indices Limited, Tirthankar Patnaik, Chief Economist, National Stock Exchange of India Limited, Dr. Santanu Paul, MD and CEO, TalentSprint and Anand Jayaraman, Program Director, TalentSprint answered some intriguing questions.

  • How can AI help fund managers make predictive analysis and help in decision making? 
  • How can AI help predict the future of fund inflows and outflows at a macro level?
  • How can AI leverage visual data in financial markets? 
  • With AI intervention, how are professionals affected in financial markets? 
  • How can professionals gear up for this ‘New Normal’ of the Stock Market? And much more.

Here are the excerpts from the webinar.

Is artificial intelligence (AI) for real or hype for financial markets?

Technology has outperformed humans in many areas. For example, AI can drive cars better than humans and also detect tumors better than doctors. Moreover, it works great in a data-driven environment and helps predict the future. As a result, Al has a disruptive impact on capital markets. Today, AI is used in various activities in real-time that include trading, capital optimization, robot advisory, and robot chat. AI focuses on crunching vast amounts of data, finding patterns, indexes, and outlook for the next few days, and drives better decisions. 

Insights on how AI is transforming financial markets by eminent financial market experts and panelists from NSE at the Webinar by  ET CFO  and TalentSprint

Post pandemic AI prediction in the financial market

AI has a firm role in financial markets; it lowers trading costs, helps fund managers take an objective decision, and predicts near term future. For instance, in the year 2020, the markets were crashing because of uncertainty and pandemic. However, looking at federal funds data, AI modules generated algorithms that helped predict the low volatility period and entered a bull market. Thus, AI can correctly predict the market just by analyzing historical data. 

Mix ‘N’ match model

AI can accurately predict the near future or changes in financial markets based on data. It helps people to make informed decisions. However, it does not factor in other problems like the pandemic. So, human intervention is crucial. Human intuition, subjective judgment, and knowledge of socio-cultural trends are essential in the data-driven market. In the future, maybe with more data, the AI-powered models will learn from the historical data and will improve. It is best to mix and match AI-driven data and human knowledge to make the best decisions.  

Opportunities based on sentimental data analysis and alternate data

AI offers insights into financial markets. Advancement in technology and AI tools has made it possible to get extra performance. For example, AI models can extract sentimental data for any stock based on published articles or tweets. These technologies are easy to get and use. The Data Science techniques offer better opportunities and can add value to the portfolio. Al offers insights into those patterns which are not visible to naked eyes. The alternate data helps to understand non-standard behavior and patterns in the financial market. In addition, Al tools and data analysis helps to prevent scams and fraud.  

Building relevant capabilities to ride the AI wave

TalentSprint’s Advanced Program in AI for Financial Markets helps professionals leverage AI to perform better in financial market careers. It offers an excellent opportunity to understand this valuable area and leverage AI’s power in making crucial decisions. In this program, professionals can learn AI modules, algorithmic trading, and fundamentals of valuation. In addition, this program offers faculty-led interactive masterclass lectures, capstone projects and mentor support to professionals for building a firm foundation in the financial market. 


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