Trading tech: the trends you need to know about

Keeping tabs on the latest technology trends could boost your trading knowledge and mean you’re ahead of the curve when it comes to one of the world’s most lucrative industries. This is what you really need to know about:

Artificial Intelligence

Artificial Intelligence, or AI, is the use of algorithms that allow machines to solve problems in a human-like manner. AI technology will ultimately lead to improvements in productivity, product value and consumption, which could create $15.7 trillion in GDP by 2030, according to estimates from PwC. Compare that to the GDP of the US - the world's largest economy – that was around $20.5 trillion in 2018 and you get an idea of how huge AI is set to become.

Of course, there are risks; technology changes so fast that it’s easy for initial leaders to struggle when competitors catch up. Mature companies can be left behind, while emerging companies generally have more upside to start with but come with risk.

It’s worth taking a close look at companies who work in AI powered machine-vision technology. This is the tech behind facial recognition, autonomous vehicles, and robotics-driven manufacturing. The majority of new data over the next ten years will likely come from videos and images, boding well for companies creating further advancements.

Machine Learning

A sub-category of Artificial Intelligence, Machine Learning focuses on the idea that algorithms can effectively “learn” patterns, and adapt to the user’s need from experience. The more data they accumulate, the more accurate and effective they become. The companies that establish an early charge in this form of AI could create serious advantages which other businesses find hard to compete with.

Industries where machine learning could really change the face of how things work may become particularly interesting. Algorithms used in the health industry could potentially analyse patient histories and offer diagnoses. Companies that work in data are powering the progression of AI and machine learning. It’s estimated the world’s digital data will increase tenfold between 2017 and 2025, and it’s this data which will be fed into new algorithms and power machine learning.

Cybersecurity

Cybersecurity is the protection of internet connected systems, from data to hardware. As technology becomes increasingly sophisticated at an increasing pace, cybersecurity is in high demand. In 2018, 62% of businesses reported having a phishing or social engineering attack - and that’s before 5G networks were rolled out.

While this isn’t good for individual businesses, the cybersecurity industry is set to reap the rewards. Although well-publicised cyber-attacks often bring a short-lived boost to cybersecurity stocks, global spending on the industry is set to step up and hit $133.7 billion by 2022. Expect the industry to move past cutting-edge firewalls.

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