{"id":1492885,"date":"2024-09-29T12:45:00","date_gmt":"2024-09-29T16:45:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1492885"},"modified":"2024-09-29T12:45:00","modified_gmt":"2024-09-29T16:45:00","slug":"brace-for-layoffs-ings-new-ai-model-definitely-outperforming-humans-in-pricing-currencies","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/brace-for-layoffs-ings-new-ai-model-definitely-outperforming-humans-in-pricing-currencies\/1492885\/","title":{"rendered":"Brace For Layoffs: ING’s New AI Model “Definitely” Outperforming Humans In Pricing Currencies"},"content":{"rendered":"

Brace For Layoffs: ING’s New AI Model “Definitely” Outperforming Humans In Pricing Currencies<\/span><\/p>\n

\n

Brace for mass layoffs on Wall Street.<\/em><\/p>\n

It’s becoming evident that ING’s new\u00a0AI model, which uses\u00a0\u201creinforcement learning\u201d, is doing a better job at pricing currencies than humans,<\/strong> according to a new report from Bloomberg<\/a>.<\/p>\n

The AI process “mimics the trial-and-error process humans use\u00a0to make pricing decisions to keep up with market volatility,” according to\u00a0global head of electronic trading Simon Bevan.\u00a0<\/p>\n

He continued: \u201cIt makes sense to take what we\u2019ve done and see how we can use it in different asset classes. Working on more AI models will be a big focus for us going into next year.\u201d<\/strong><\/em><\/p>\n

In an interview with Bloomberg, he said:\u00a0\u201cIt\u2019s a full-time job monitoring the market, adjusting spreads and managing the risk, so it\u2019s freed up basically a whole person. This model completely takes care of that and has performed way beyond our expectations, it has definitely outperformed a human<\/strong>.\u201d<\/p>\n

Bevan\/Bloomberg<\/a><\/a><\/p>\n

Bloomberg writes<\/a> that banks are racing to deploy advanced technology in the $7.5 trillion-a-day global currency market to cut costs and stay competitive. The focus has shifted to AI, which could streamline operations and reduce the need for human traders.<\/p>\n

ING recently hired James Robinson, a machine learning expert from UBS’s electronic FX trading team, to spearhead this effort. After a three-month build and six weeks of testing, Robinson is now developing additional AI solutions.\u00a0<\/p>\n

The role of traders is evolving as AI becomes more prominent, but complete automation remains uncertain. At a recent conference, dealers expressed doubts about eliminating human oversight and raised concerns about accountability if issues arise.<\/p>\n

Despite these worries, ING\u2019s Bevan emphasized that traders will still be responsible for monitoring and halting any AI malfunctions. The bank\u2019s model approval process has been smooth so far,<\/strong> the report<\/a> says.\u00a0<\/p>\n

\u201cThe speed of change within the FX landscape makes accurately measuring and reacting to these changes with traditional algorithmic models challenging. This sort of new AI-based algorithm \u201chas vast applications across financial markets,\u201d Kimiya Minoukadeh, global head of quant trading, concluded.\u00a0<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nSun, 09\/29\/2024 – 08:45<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/markets\/brace-layoffs-ings-new-ai-model-definitely-outperforming-humans-pricing-currencies<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Brace For Layoffs: ING’s New AI Model “Definitely” Outperforming Humans In Pricing Currencies Brace for mass layoffs on Wall Street. It’s becoming evident that ING’s…<\/p>\n","protected":false},"author":0,"featured_media":1492886,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1492885","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1492885","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1492885"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1492885\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1492886"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1492885"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1492885"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1492885"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}