Artificial Intelligence: Gamechanger in FinTech and A Double-edged Sword Too

Original Aritcle: 16 April 2017 | Wired | Wordsworth

Credit: Bakal / iStock

On 23 April 2013, a tweet by Associated Press costed the market US$ 136 billion. AP's compromised Twitter account, which had millions of followers, tweeted the following news item:

“Breaking: Two Explosions in the White House and Barack Obama is injured.”

How did this happen? Two letters - "A.I.". The market had sought for a faster way to react to the events that might create changes to the market and A.I. was the answer. However, this incident illustrated the vulnerabilities involved in automated trading. Quoting the article:

"No human being could orchestrate an attack of that magnitude... A human might have spotted the tweet and, upon realising the catastrophic financial implications, called an AP rep for confirmation. But the whole point of the algorithms involved in high-frequency trading is to detect, analyse and make decisions faster than a human heartbeat."

For the full article, please follow the LINK .

To find out more about the latest trends and technology in FinTech from the industry leaders and academic experts, sign up for the FinTech Professionals Congress. This, together with many other issues that would Shape Our Future, would be discussed in details by our expert speaker faculty!