Transcription
Anthropic's latest AI agents are designed to win over Wall Street, but here's why traders look safe in their jobs for now.
Anthropic, the firm behind Claude, has unveiled 10 new tools aimed at banking, insurance, asset management, and fintech. It says the new agents can draft pitch decks, review financial statements, and escalate cases for compliance review.
But, what is AI's actual track record when it comes to taking on human traders? Across a series of trading contests between the world's leading AI models, results from these trading arenas show that most models lose money. They trade too much, they make wildly different decisions even with the same instructions. Some people even say that each AI model has its own trading personality.
And the real question here is, will the upcoming upgrades overcome these setbacks, or are we discovering a clear divergence between the capabilities of LLMs and how markets actually [music] work? These experiments seem to indicate that while AI can replace specific tasks on Wall Street, ultimately trading profitably is a complex process with many different parts. And it seems like that is still hard for LLMs to pull off.
Perhaps that should be no surprise given that beating the markets is notoriously difficult even for humans. And none of the most successful hedge funds have ever published their secrets for the LLMs to learn from. So, for now, the hardest job in finance may still be in the hands of the smartest humans.