The latest 5 key takeaways on AI in Trading this week from transforming investment strategies at the Milken Institute Global Conference to AI’s impact on volatility and enhancing operational resilience.
🚀 Milken Institute Global Conference 2025: AI Takes Centre Stage
At the 2025 Milken Institute Global Conference in Beverly Hills, growing use of AI dominated discussions. Umesh Subramanian, Citadel’s CTO, highlighted AI’s pivotal role in enhancing discretionary investing. Citadel uses AI-driven tools, including chatbots, to help analysts efficiently process vast data, from news to financial documents, while embedding data scientists within investment teams to optimize workflows. WorldQuant highlighted their expanding use data inputs beyond text to include images and audio, aiming to enhance model insights. Freestone Grove noted the need to balance AI with human judgment to ensure analytical intuition. Read more here – https://www.businessinsider.com/how-citadel-worldquant-freestone-grove-use-ai-2025-5?utm_source=chatgpt.com
📊 Multi-Agent LLM Systems in Trading: Insights from STAC London
Hanane Dupouy showcased her work with multi-agent LLM frameworks like AutoGen, CrewAI, and LangGraph for momentum trading analysis, corrective RAG for financial reports, and agent-based execution strategies. Explore her GitHub repository for practical examples of LLMs in finance. Pere Martra demonstrated how pruning, quantization, and distillation can optimize LLMs for domain-specific tasks. His new book explores this in depth. Check it out here. Thanks to https://www.linkedin.com/in/jacorcoran/ for sharing.
📈 More on AI in Research and Idea Generation
- Rogo: Automating financial analysis for investment banks, now used by Moelis and Nomura – https://rogo.ai/
📜 US Copyright Office: New Developments in AI Training
The US Copyright Office issued a new report this week on uses of copyrighted works in AI training which could impact data input for models. While USCO acknowledge such usage may be transformative, fairness depends on factors such as the type of works used, their source, purpose, and output controls. Analytical or research uses are less likely to replace original works, but commercial uses creating expressive content that competes with originals—especially through unauthorized access—likely exceed fair use boundaries. The Office supports the continued development of voluntary licensing markets over government intervention, ensuring innovation without undermining intellectual property rights – one to watch. Explore the full document.
📊 AI as a Solution During Market Volatility
During April’s market volatility, JPMorgan Chase reported that its AI tools, notably “Coach AI,” significantly enhanced client service, driving a 20% increase in asset and wealth management sales between 2023 and 2024. The bank’s GenAI toolkit, used by over half of its 200,000 employees, has now delivered nearly $1.5 billion in cost savings through improved fraud prevention, trading, and credit decisions. Read the full story at Reuters
⚡ Power Outage in Spain: Impact on Trading
The power outage in Spain on April 28, 2025, disrupted critical infrastructure, including the Madrid Stock Exchange (BME). The blackout, which saw a 60% loss of national electricity supply, forced temporary trading suspensions and highlighted vulnerabilities in energy-reliant financial systems. This incident is likely to underscore renewed regulatory interest in enhanced and extensive operational resiliency for financial markets. Particularly as the data centers, crucial for AI, consume significant energy and water, raising operational and sustainability challenges. Read more here – https://www.marketwatch.com/story/massive-power-outage-strikes-spain-and-portugal-9e4e46be
As always, thanks for reading! Let me know what you liked, didn’t and what you would like to see more of.
Many thanks
Rebecca
