Nomura’s Head of Digital Warns of AI’s Predictive Limitations

The investment bank’s deputy chief digital officer says machines cannot predict markets, as the bank consolidates trading operations and builds an AI trading platform for fixed income and FX.

Predicting losses

Could AI predict market movements? 

Matthew Hampson, deputy chief digital officer at Nomura, is not convinced that this will ever happen, as he warns of the technology’s limitations.

“The market is stochastic. It has a level of randomness that is challenging to model,” Hampson says. “It’s not like it’s a turbine failure, or the way retail shoppers buy food, or whether you’re going to develop an illness. Those areas are based on physics or biology, and [therefore] statistical models work well

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a WatersTechnology account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: