Rich Repetto, Piper Sandler’s managing director, believes artificial intelligence could change the way investors trade securities. “You look at ChatGPT and that’s just an automation in decision-making on steroids. I think about speed, convenience and price — that’s still what drives trading,” Repetto told CNBC’s Bob Pisani in an interview from the Piper Sandler Global Exchange Conference on Wednesday. As AI continues to make breakthroughs, Wall Street is curious how the technology could disrupt the asset management and trading businesses. A recent preliminary study showed ChatGPT, the hottest AI tool in the world, could have the potential to improve investment decision-making. Repetto said AI-powered personal advisers can be personalized and it could address the issue of a crowded trade on Wall Street. “One of the big problems on Wall Street is that when you do have a good trade, it is a crowded trade,” Repetto said. “What you see in ChatGPT is that you don’t always pick the highest probability outcome, you pick 80%. That’s called a temperature. It still can be successful.” The longtime industry expert believes there will be more regulation around automation and AI in finance.
This story originally appeared on CNBC
