Our comments:
Trader
Strong Impact of AI on this Job
60%
level of automation
0%
100%
This section reviews the 3 main tasks associated with the job studied and assesses the potential level of automation induced by AI ('AI Automation Impact').
The modeling uses 8 criteria detailed on the 'Methodology' page.
The modeling uses 8 criteria detailed on the 'Methodology' page.
| Tasks | AI Automation Impact |
|---|---|
| Buy and sell financial instruments, such as stocks, bonds, currencies, or commodities, based on market opportunities. | High |
| Continuously analyze economic data, financial news, and market trends to make informed decisions. | High |
| Manage risks associated with transactions, adhering to limits set by the bank or financial institution. | High |
Through our research, we have identified two pivotal categories of skills that will be impacted by AI-driven automation :
- 'At-risk skills,' which are likely to become obsolete due to their susceptibility to automation
- 'Future-proof skills', which are projected to retain their value and resist automation, thereby ensuring their relevance in the forthcoming job market.
| At-risk Skills | |
|---|---|
| Quantitative analysis | The advent of high-frequency trading algorithms and automatic analysis systems is impacting the quantitative dimension of analysis. These are gradually being replaced by algorithms capable of analyzing vast amounts of data at a speed that humans cannot match |
| Trend monitoring | Algorithms can now automatically monitor markets 24/7, detect the slightest price movements, and trigger transactions based on predefined criteria. This reduces the need for human traders to constantly monitor real-time data, as AI can handle this task with greater precision and speed. |
| Future-proof Skills | |
|---|---|
| Risk management | Even though algorithms can assist in risk assessment, human judgment remains crucial. Traders must be able to evaluate market scenarios, anticipate the consequences of unforeseen global events, and apply nuanced understanding of human behavior and economic motivations |
| Data interpretation | Although algorithms can now analyze news to adjust their trading strategies, the ability to understand context, interpret ambiguous information, and predict human reactions to major events remains a distinctly human skill. |
How does AI impact this job type ?
Get the full analysis
Artificial intelligence and automation have already profoundly transformed trading, especially high-frequency trading, where algorithms execute transactions in a matter of milliseconds. Algorithms are also used to analyze massive volumes of real-time data and make buying or selling decisions.
However, for some complex and strategic transactions, as well as risk and ethics governance, human judgment remains indispensable. Overall, trading is one of the most automated professions in the financial sector.