JP Morgan Says Institutional Traders Moving From Blockchain to AI

JP Morgan, the global financial services giant, conducted a survey of institutional traders, which revealed that most of them believe artificial intelligence (AI) and machine learning would prove to be the most influential technology.

They are of the opinion that this technology would help in shaping the future in the next three years. The institutional investors cited it four times more than they did blockchain, or distributed ledger technology (DLT).

The report

This is the seventh time that the e-Trading Edit report has been published by JP Morgan and the latest one was based on a survey conducted in January in 60 global markets.

There were a total of 835 institutional traders who participated in the said survey. It is the annual assessment of the sentiment of traders and explores different asset classes.

The purpose is to highlight the most hotly debated topics and upcoming trends. It appears that financial industry professionals have had a change in their outlook.

This could be in light of the rather tumultuous bear market in the crypto industry, along with the recent commercial and consumer hype over AI technology, such as ChatGPT.

The change

In the previous year, mobile trading applications had been at the top, with 29% of the survey respondents believing them to be the key to the future.

AI and machine learning had tied with blockchain and distributed ledger technology for second place, with 25% of the survey respondents considering them to be important.

This year, Artificial Intelligence (AI) has managed to dwarf every other technology category with a 53% citation rate.

This puts it ahead of API integration and blockchain, which had citation rates of 14% and 12%, respectively.

Mobile apps, which had been the top technology last year, dropped to 7%, along with natural language processing and quantum computing.

Crypto

As far as crypto is concerned, JP Morgan discovered that 72% of the institutional investors did not have any plans of trading crypto or digital assets.

There were 14% who said that they planned on trading them in the next five years. Even then, respondents were sure that others had a bullish stance where the crypto industry is concerned.

The report said that crypto, commodities, digital tokens and credit are expected to see the highest increases in electronic trading volumes in the next year.

The participants predicted that by 2024, they would see 64% of their activity taking place in the crypto sector.

According to the survey, the traders unanimously agreed that there would be growth in electronic trading, they also predicted that there would be some tough times ahead.

They believe that the biggest impact on the crypto market this year would be from the risk of recession, inflation as well as geopolitical conflict, with 30%, 26%, and 19% likely to have an impact.

This latest report is just one of the numerous reports and studies that have been released by JP Morgan in the last month, which are related to crypto and digital assets.