ING is starting to use A.I. to TRADE CURRENCIES, REPLACING A JOB traditionally performed by HUMANS!
Next frontier is creating AI to reduce number of traders banks need!
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A.I. WILL CLEARLY REPLACE HUMANS IN JOBS THEY CURRENTLY OCCUPY. HOW FAST WILL THIS OCCUR? WILL HUMANS BE ABLE TO BECOME TRETRAINED AND RE-ENTER THE WORKFORCE IN A DIFFERENT CAPACITY, ONE THAT HASN’T ALSO ALREADY BEEN REPLACED BY A.I? HOW WILL THIS TURN OUT? ARE YOU PREPARED? READ THE METALS AND MINERS REPORT ON THIS TOPIC BELOW THE ARTICLE!
LONDON - ING Groep NV is starting to use artificial intelligence (AI) to price currencies, replacing a job traditionally performed manually by the bank's traders.
The Dutch lender's new AI model employs "reinforcement learning" — a technique that mimics the trial-and-error process humans use — to make pricing decisions to keep up with market volatility, said Simon Bevan, its global head of electronic trading, in an interview. That was previously a crucial yet time-consuming task for its trading team in London.
"It's a full-time job monitoring the market, adjusting spreads and managing the risk, so it's freed up basically a whole person," Bevan said. "This model completely takes care of that and has performed way beyond our expectations, it has definitely outperformed a human."
The move is the latest in a race by banks to develop the most cutting-edge technology to reduce expenses and be competitive in the US$7.5 trillion-a-day global currency market. The next frontier is developing AI, which promises to increase efficiency and reduce the number of traders banks need to employ.
ING hired James Robinson, with a PhD in machine learning, from UBS Group AG's electronic FX trading team five months ago to develop the technology. The overall build out took three months before six weeks of testing. Robinson is now working on creating other AI programs.
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The Collision Between Artificial Intelligence And A Historic Unemployment Event