In further evidence that the financial world is moving towards artificial intelligence and machine learning, JP Morgan, one of the largest investment banks in the world, has hired a machine learning expert. Previously working for Goldman Sachs, Chris Murray is joining the firm to advance the company’s use of artificial intelligence in a rapidly changing world.
Over the past several years, the investment banking space has progressed to the age of the algorithms. With all kinds of trading programs in the market, each trying to outdo the other, a substantial portion of trading was shifting away from bankers. The proliferation of algorithms has increased this competition, necessitating a push into new technology for banks like Goldman Sachs and JP Morgan.
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Artificial intelligence and machine learning aids firms in understanding the correlation between the behavior of people and the markets, providing an edge in business.
JP Morgan hired expert New York-based expert Chris Murray to help manage its global central risk book. Previously an equity analyst at Goldman Sachs, he will report to Matt Mallgrave, who manages cash equities trading for the Americas. Chris has a master’s degree in machine learning from the Carnegie Mellon University.
It is likely that banks will be increasingly using machine learning to improve the efficiency of their traders and portfolio managers. These tools crunch data from past trades and analyze market behavior to deliver information to aid better decision making in relation to trades. Any consequent improvements in performance is likely to benefit banks and their trading returns in the long run.