AI and FX – what does the future hold?
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Foreign Exchange

AI and FX – what does the future hold?

With artificial intelligence already widely used for tasks such as trend analysis, the focus has turned to how artificial general intelligence could chat with FX traders to help them fine-tune their decisions, as well as automate order execution and currency monitoring.

Illustration: iStock

In a recent blogpost, Bart Joris, head of FX sell-side trading at Refinitiv, noted that currency traders perform better when artificial intelligence (AI) techniques are coupled with human insight. He added that new skillsets were becoming more important, to enable these individuals to use AI and machine-learning tools to make the best decisions.

It is a topic that is exercising many in the FX world right now. Artificial general intelligence (AGI) – a type of AI that has the ability to understand, learn and apply knowledge across a wide range of tasks, in contrast to narrow AI, which is designed to perform a specific task – could theoretically engage in conversations with traders to help then fine-tune their decisions, suggests Thomas Friesleben, managing director at StoneX Pro.

Allen Li, HSBC

“This could involve the AI understanding the trader’s goals, strategies and risk tolerance and then providing personalized advice based on its market knowledge,” he explains. “AGI could also automate order execution and currency monitoring, although some forms of these tasks are already being performed by narrow AI.”


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