In the United States, an estimated 75% of all stock trades are now done by high frequency trading computers and algorithms that have no need of human intervention. And with the majority of equity markets now simply just playgrounds for computer trading, one financial institution in Russia is forecasting that within five years banks will be run by artificial intelligence (A.I.’s), rather than by human bankers.
Russia’s largest lender Sberbank may rely on artificial intelligence to perform 80 percent of operations already in five years.
Russia’s largest lender Sberbank may rely on artificial intelligence to perform 80 percent of operations already in five years, which would significantly improve the quality of the decision-making process, the bank’s CEO Herman Gref said on Thursday. “We make a lot of decisions without human involvement. We estimate that if we compare the bank today and the Sberbank five years ago, about 50 percent of the decisions, which were made by people, are now made by machines. We believe that in five years we will be able to make about 80 percent of our decisions using artificial intelligence,” Gref said in a speech at the Higher School of Economics in Moscow. – Sputnik News
Finance, trading, as well as banking entered the digital age some 40 years ago, and were expanded in this arena by none other than a former Chairman of the Federal Reserve when in the 1970’s, Alan Greenspan created programs to rig and control markets to protect against inflation and economic crashes. But over time even these electronic mechanisms were corrupted by evil and greedy men, and it was from these acts that securities such as derivatives were forged, and systems like MERS were created, to expand finance to levels uncomprehensible to the average mind.
Those who control finance at its highest levels know that we stand at a crossroads between what can legally be done to stave off economic catastrophe, and what they would love to have the power to do by moving all finance and currency to a wholly digital landscape. And with most of the world seemingly content to function in their daily lives in a cashless system, the idea of banks and markets being run by an A.I. sometime in the near future is not completely out of the realm of possibility.
Kenneth Schortgen Jr is a writer for Secretsofthefed.com, Examiner.com,Roguemoney.net, and To the Death Media, and hosts the popular web blog, The Daily Economist. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.