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Why AI needs to inform, rather than replace, human judgement in capital markets

Once upon a time, the human race had to travel by foot, horse or carriage. Then, one day, Karl Benz, several other clever guys, and a few decades of development gave us the car.

The revolutionization of travel wasn’t without its objectors. Dickens’ short story The Signal-Man, a ghost story that takes place on the railway tracks, was written as a result of the deep fear Victorians felt towards new trains. They thought trains were haunted by inhuman technology. Sound familiar?

Change will always beget fear, but it is often the things we fear that transform our society for the better, that provide brighter futures and stronger societies.

There is a wind of change in the financial industry. The digitalization of banking technology has provided unprecedented new avenues for profitability. Artificial intelligence, like the car, has several decades of testing and development behind it. Founded as an academic discipline in 1956, AI has now been developed and explored in the last 50 years. We are now able to make future predictions based on the data the past provides us. Unfortunately, this hope of a fortuitous predictability system has led some banks to spend inordinate amounts of money on systems that don’t add value. Systems that they tell you will replace your current workforce.

When the car was created, they didn’t reinvent the wheel, rather, they gave it an engine. The workflows involved in financial trading don’t need to be scrapped. Recent spend on AI by banks has demonstrated that this system of breaking up decades worth of workflows isn’t profitable or necessary. Instead of replacing a whole workforce, AI should be implemented into the current workflow. Traders don’t need to be kicked out and AI shouldn’t replace the discerning and unique power of human judgement. AI’s purpose is to use decades of data, personalized development and huge machine power to provide a prediction.

CPQi provides predictive artificial intelligence technology to financial markets. However, the systems we create don’t replace a bank’s workflow, but works with capital market businesses to predict patterns in trading.

What we create is a technological system that learns from your data. If you’re a long-standing bank, that means our system learns from your 50 years of information and deals. That system then spends its life analysing financial fluctuations and absorbing and evaluating the entire matrix of trading information from the unique perspective of your data. After implementation, you ask our system what it thinks will happen next. Your traders will then decide what they want to do based on the highly personalized and specialised prediction that our artificial intelligence system gives you.

CPQi enhances and optimizes human decision making by providing predictive artificial intelligence trading systems. As an example, systems that we create predict the equity index volatility direction up to an 85% accuracy rate.

The financial industry is changing. Join us at the AI World Forum to learn more about artificial intelligence. Our CEO and Founder, Terry Boyland, will discuss AI’s impact on financial institutions in his presentation “Don’t Waste Money on AI” March 4th from 9:40am-9:55am.