Artificial Intelligence (AI) is a comprehensive simulation of human intelligence in machines with extensive application in different verticals. Its integration with stock trading platforms, in the form of Robo-advisors, is already trending.
The North America Artificial Intelligence (AI) in Stock Trading Market is projected to grow at a CAGR of more than 50% during the forecast period, i.e., 2023-28. AI & other data-science technologies have simplified the stock trading workflow by enabling easy & real-time identification of complex trading patterns across varied markets. Besides, they have also reduced communication complexity and enhanced business processes & customer care interactions. Hence, the coming years will likely be highly optimistic for AI in the stock trading industry. With increasing innovations in AI & machine learning, payment processors, banks, and other financial organizations are now able to detect fraud & make informed decisions. In addition, the capability of AI to gather & classify unbiased information, recognize stock patterns, and effectively perform stock analysis is expected to propel the industry in the coming years.
|Study Period||Historical Data: 2018-21|
|Base Year: 2022|
|Forecast Period: 2023-28|
|Country Covered||The US, Canada, Mexico|
|Key Companies Profiled||Trading Technologies International Inc., Kavout, Auquan, GreenKey Technologies LLC, IBM Corporation, TrendSpider LLC, BlackBoxStocks, Inc, Imperative Execution Inc., Techtrader, Trade Ideas LLC, Imperative Execution Inc., Looking Glass Investments LLC|
|Unit Denominations||USD Million/Billion|
Further, incorporating AI-based Chatbots into online trading platforms provides users with various services like frequently asked questions, faster access to real-time market estimates, account reports, notifications about active traders, etc. These Chatbots help users monitor loads of trading data pointers and execute transactions at preferred prices. They also enable human analysts to study the market accurately and assist trading companies in efficiently alleviating risks to offer higher returns. Backed by such features, the integration of Artificial intelligence in Stock Trading platforms has become frequent in recent years, compelling service providers to expand their portfolios in the coming years. Besides, the surging requirements for customized trading solutions from credit unions, government banks, etc., alongside rapid integration of the mobile application with trading platforms, are other crucial factors expected to drive the demand for AI in stock trading over the forecast years.
Moreover, with prominent companies like GreenKey Technologies & Auquan actively participating in the industry developments, the Artificial Intelligence (AI) Stock Trading Market in North America is projected to attain considerable growth through 2028. The AI in Stock Trading platform of GreenKey Technologies uses speech recognition & natural language processing technology for a quicker search through conversions, notes, and financial data. Numerous financial experts are using this AI-based platform to filter through insights, trending companies, and other real-time stock market information, encouraging industry enlargement. On the other hand, the Auquan platform for AI in stock trading enables analysts from different backgrounds to generate algorithms & trading strategies and solve investment challenges. Consequently, investors can make an informed decision and enjoy the benefits without hiring high-cost in-house expertise.
Key Driver: Inevitable Mechanization of Stock Trading Processes across North America
In recent years, financial investors have begun automating their stock trading activities by employing computer systems. Thus, the incorporation of AI has gained momentum owing to its ability to identify complex stock trading patterns across the market in real time. In addition, the integration of AI in stock trading through machine learning enables high speed & extensive processing power for risk assessment. This shall increase the participation of companies in the forecast period, subsequently stimulating Artificial Intelligence (AI) in the Stock Trading industry in North America.
Possible Restraint: Strict Regulations by Foreign Agencies and Exchanges
The most prominent aspect that might hinder Artificial Intelligence (AI) in Stock Trading Market in North America is the inability of vendors to abide by the norms of primary regulators entwined with the lack of awareness associated with new solutions & regulations in stock trading. The government, self-regulatory bodies, foreign agencies, and exchanges regulate the stock market extensively, making the investors obliged to follow the standards.
Growth Opportunity: The Advent of AI-Powered ETFs and AI Stock Pickers
The world of portfolio investment has changed dramatically with the arrival of AI-managed portfolios like exchange-traded funds (ETFs). Since most ETFs are index funds and are not actively managed, they have low expense ratios. With minimal human interference and insignificant security selection need, demonstrated by INDEX funds, integration of AI may make their running substantially easier.
The AI-driven equities exchange-traded fund AIEQ is an illustration of an ETF powered by AI. This actively managed portfolio is the first of its type, which runs the fund and is driven by IBM's Watson artificial intelligence. The S&P 500 consistently outperforms the AI-powered equity ETF or AIEQ.
The adoption of AI Advisers as stock pickers to replace human advisors in actively managed equities funds is another way AI is used to manage portfolios. For instance, BlackRock, the largest American investment management company, has begun to replace human stock pickers with a fully automated investment program built on artificial intelligence algorithms capable of self-learning. Thus, these aspects are likely to present lucrative prospects for the market players.
Key Trend: Rapid Investments in AI/ML for Minimizing False Positives in Trade Surveillance
For the past few years, minimizing false positives in trade surveillance has become crucial, thus compelling numerous firms to invest rigorously in artificial intelligence and machine learning capabilities. According to the Global Compliance Survey 2019 by Nasdaq, investments in such technologies have proliferated, with 42% of respondents reporting that they have recently invested in it and 65% planning to invest in it over the next 12 to 24 months. In fact, Nasdaq, the second-largest stock exchange in the world, for the first time applied artificial intelligence to its U.S. stock market in 2019. With this initiative, the firm seeks to revolutionize market surveillance by detecting irregular and potentially malicious trading activity.
Based on End-Users,
Among all, Banks & Financial Institutions are anticipated to dominate the market with the largest share in the coming years. It owes to the increasing deployment of AI across banking & financial institutions, principally for benefits like better products & services offered to consumers. In addition, the incorporation of AI also enables these institutions to achieve cost reduction, subsequently, enhanced productivity.
Thus, banking & financial institutions benefit their customers by providing them with better investment strategies using data insights and improving the financial inclusions of clients with limited credit history by analyzing their creditworthiness.
Moreover, implementing AI across banks & financial institutions helps them identify fraudulent & unusual transactions, automate processes, and personalize customer service, another crucial aspect fueling the overall market growth through 2028.
Based on Component,
Between the two, AI-based Stock Platforms are anticipated to acquire a sizable market share during 2023-28. Because of its extensive applications, Artificial Intelligence is projected to transform stock trading platforms owing to rapid innovations substantially. Hence, multiple companies are increasingly deploying AI-based trading platforms through Robo-Advisors to help users observe the trading data pointers & execute at optimal prices while mitigating the risks to get higher returns.
Trade-Ideas is one of the most advanced & stimulated market intelligence platforms for stock trading that allow traders, particularly beginners, to learn the dynamics and invest & navigate the stock market without risking their money. With the integration of AI in Trade-Ideas, traders can find the best trade setups in the market and attain insights & real-time updates for precise decision-making.
On the other hand, Trend Spider is the most technically comprehensive analysis software that offers a fully customizable automation engine on a charting platform. It researches the data and presents them with actionable & meaningful insights for users to make informed decisions, thereby elevating the industry’s growth.
The North America Artificial Intelligence (AI) in Stock Trading Market expands across:
Of them all, the US is expected to maintain its dominance in the market during the forecast period. It owes prominently to rapid technological advancements and increasing applications of AI-based trading across the country's banks & financial institutions. The US has the largest liquid financial ecosystem and is an early adopter of AI technology. Around 70% of the overall trading volume in the US stock market & other developed financial firms is generated through algorithmic trading. Furthermore, massive investments by stock trading firms in integrating AI & Machine Learning (ML) with their existing stock trading platforms also contribute to the overall market growth in the US.
On the other hand, Canada is anticipated to witness significant market growth during the forecast period. The market growth in Canada attributes to the recent development by the Royal Bank of Canada (RBC) in collaboration with its research center Borealis AI. RBC has introduced an AI-based electronic trading platform, Aiden, for its Capital Market clients that trade in the US & Canadian equities. It is designed to improve order execution by allowing the stock trading algorithm to adjust its own rules with what is happening in the market using AI technology, Deep Reinforcement Learning.
Recent Developments in the North America Artificial Intelligence (AI) in Stock Trading Market
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Frequently Asked Questions
A. The North America Artificial Intelligence (AI) in Stock Trading Market is projected to grow at a CAGR of more than 50% during 2023-28.
A. Inevitable mechanization of stock trading processes across North America is likely to drive the market further during the projected time frame.
A. The prominent players anticipated to stiffen the competition across the region are Trading Technologies International Inc., Kavout, Auquan, GreenKey Technologies LLC, IBM Corporation, TrendSpider LLC, Black Box Stocks, Inc, Imperative Execution Inc., Techtrader, Trade Ideas LLC, Imperative Execution Inc., and Looking Glass Investments LLC.
A. Banks & Financial Institutions are anticipated to emerge as an area of remunerative opportunities for the leading players in the North America Artificial Intelligence (AI) in Stock Trading Market during the forecast period.
A. The USA would provide lucrative prospects for the North America Artificial Intelligence (AI) in Stock Trading Market in the years ahead.
A. Rapid investments in AI/ML for minimizing false positives in trade surveillance is the significant trend projected to shape the North America Artificial Intelligence (AI) in Stock Trading Market through 2028.
A. The advent of AI-Powered ETFs and AI Stock Pickers is expected to present remunerative opportunities for the leading players in the North America Artificial Intelligence (AI) in Stock Trading Market during the forecast period.
A. Strict regulations by foreign agencies and exchanges is the possible restraint affecting the growth of the Market during 2023-28.