According to a recent publication by JPMorgan, institutional investors are increasingly focusing on artificial intelligence (AI) and machine learning (ML) as key technologies for the future of trading.
The 'e-Trading Edit: Insights from the Inside' survey, which included responses from over 4,000 institutional traders across 65 countries, found that 61% of participants expect AI and ML to be the most impactful technologies for trading within the next three years.

The survey also revealed that application programming interface (API) integration is considered important by 13% of respondents, while blockchain, or distributed ledger technology, and quantum computing each garnered 7% of the vote.

Why does it matter?

The growing focus on AI and ML represents a substantial increase from two years ago, when these technologies accounted for just 25% of the ranking. Institutional traders are more sceptical about the potential of other technologies, such as blockchain, which has witnessed a decrease in investor interest by 18% since 2022.

The survey reveals that institutional investors are more inclined to invest in AI and ML technologies for trading rather than engage in cryptocurrency trading in the near future. In contrast to the bullish sentiment on AI, the survey results show a declining interest in cryptocurrency trading among institutional traders. JPMorgan's approach to cryptocurrencies has been controversial, with CEO Jamie Dimon criticizing cryptocurrencies like bitcoin even though the company has been involved as an authorized participant in a bitcoin exchange-traded fund by BlackRock.