(Citywire) Artificial intelligence (AI) will gradually become more important for hedge fund firms over the next decade, but they will never fully replace humans. AI, for example, is particularly important in short-term trading. To stay competitive, systematic investors and hedge fund firms, especially those specialising in short-term investing, may need to invest heavily in developing their own more advanced machine learning capabilities.
A new report by Alternative Investment Management Association and Aberdeen Standard Investments found that hedge fund firms that do not develop AI capabilities to aid their human employees may soon find themselves at a competitive disadvantage.
