AI Is Changing the Game—Are Human Traders Still Needed?

Artificial Intelligence has officially entered the trading floor are human traders still needed? From Wall Street to crypto, AI is increasingly managing decisions once made by humans.

According to Precedence Research (2024), the global AI trading platform market hit $11.26B, projected to grow to $69.95B by 2034, with a 20% CAGR. McKinsey forecasts that by 2030, 50% of trading jobs especially execution traders may be automated.

Why AI Outperforms Human Traders in Some Areas

AI's Advantages

• Speed: AI executes trades within milliseconds.

• 24/7 Availability: Especially useful for crypto and global markets.

• Emotionless Logic: No fear, no greed—just math.

Two Sigma, a quant hedge fund, used AI to earn a 10.7% return during volatile 2023 markets. Virtu Financial consistently limits its daily P&L variance to within 1.5% using advanced AI modeling.

Data-Driven Proof

• 68% of North American asset managers now use AI-assisted trading (Statista)

• PwC: AI expected to contribute $1.2 trillion to the financial industry in the next decade

• Bridgewater’s PriOS uses over 1.2 billion financial text data to enhance macro prediction accuracy

But Human Traders Still Matter

1. The "Black Box" Problem

AI models lack transparency. When they fail, human intervention is critical. For instance, models based on dovish rate assumptions crashed during the 2022 hawkish pivot.

2. Handling the Unexpected

Pandemics, wars, sudden regulations—AI struggles with non-patterned, one-time events. Many AI systems missed the liquidity crunch in early COVID.

3. Creative Alpha

Only humans can create new frameworks, imagine novel cross-asset plays, and take contrarian bets.

Real-World Case Studies-Are Human Traders Still Needed

Goldman Sachs

From 600 cash equity traders down to 2 and a suite of AI systems. Marquee, its client-facing data tool, provides insights built on AI-backed research.

Bridgewater’s PriOS

Analyzes over a billion financial text entries to generate trading signals. Final calls are human-approved.

MyITS Hybrid Strategy

MyITS leverages automated quant strategies with real-time monitoring to enhance trading efficiency and risk control in the crypto market. It integrates both spot and futures markets to balance long-term growth and short-term opportunities.

The Next Evolution: AI-Generated, Human-Refined Trading

• AutoML: Enables non-coders to design models via visual interfaces

• Generative AI: GPT, Claude can help write code, generate research drafts

• Reinforcement Learning (RL): Systems like AlphaPortfolio learn from live market conditions to adapt

MyITS is already experimenting with co-decision layers—where AI proposes, but human risk managers assign final scores.

Future = AI + Human = Enhanced Trading

The World Economic Forum suggests three hybrid trader roles will emerge:

Role	Function
AI Engines	Execute trades and scan for opportunities
Human Traders	Apply judgment and manage risks
Data Analysts	Explain and fine-tune AI outputs

It’s not that AI will replace all traders—it’s that traders who use AI will replace those who don’t.

AI is no longer a future trend. It's here—and growing fast.

📌 Are you integrating AI into your trading workflow? Drop a comment and let us know. Don't forget to share this post and follow us for more market + tech insights.

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Disclaimer: 

This article is for educational and informational purposes only. It does not constitute financial advice. Always conduct your own research or consult a certified financial advisor before making investment decisions.