Artificial Intelligence Can Make Markets More Efficient—and More Volatile by Nassira Abbas, Charles Cohen, Dirk Jan Grolleman, Benjamin Mosk published by IMF/Blog (10/2025).
“AI-driven trading could lead to faster and more efficient markets, but also higher trading volumes and greater volatility in times of stress
More efficient or more volatile? The adoption of the latest iterations of artificial intelligence by financial markets can improve risk management and deepen liquidity; but it could also make markets opaque, harder to monitor, and more vulnerable to cyber-attacks and manipulation risks.“
