TECH TUESDAYis a weekly content series covering all aspects of capital markets technology. TECH TUESDAY is produced in collaboration with Nasdaq.
Artificial intelligence (AI), specifically generative AI, has perhaps been the hottest emerging technology topic in markets of late. Traders Magazine caught up withMike ORourke, Head of AI and Emerging Technology at Nasdaq, to learn more about the current AI landscape and how it will evolve.
Tell us about your background and your current role at Nasdaq.
Ive been with Nasdaq for 25 years, the last 10 of which have been primarily focused on emerging technologiesAI, data science and our move to the cloud.
Back in 2016, I ran our data business technology; we were doing a lot of data science, but there was no formal data scienceprogramat Nasdaq. So, we built out a whole career track as well as a center of excellence for AI because, at the time, Brad Peterson, Chief Technology, and Information Officer at Nasdaq, and I anticipated that this was going to be very important. We wanted to start building up talent, a skill set and prowess in AI.
When did Nasdaq start using AI, and what were the early use cases?
The early projects at that time focused on using machine learning and AI language models to understand data and make new alternative data sets. How can we use AI to process unstructured data and convert it into structured data and knowledge so people can make better investments and trading decisions? We also used machine learning models to better understand trading activity and behavior. Why am I not getting the fill rate that I want? Why did this order not execute? How are my trading patterns compared to other firms? Things like that.
How has Nasdaqs cloud journey and partnership with Amazon Web Services (AWS) facilitated AI adoption?
AWS has been a wonderful partner. The cloud is really where innovations happen first, and Nasdaq took the stance that we needed to be early adopters by moving our data and systems there. It was about being agile and able to scale more easily.
Our investment in the cloud is paying offthe new emerging AI technologies are there, and because our data is there, too, we can readily implement these new models on top of our data. Weve invested a lot in having really good data systems, and to have good AI, you need sound data, which we have in the cloud.
AI is one of our strategic pillars across the companywe want to incorporate it into all our products and services, and the cloud is a significant enabler of this.
What current AI use cases are you most excited about?
Id be remiss if I didnt talk aboutDynamic Midpoint Extended Life Order (M-ELO), which is part of our dynamic markets program. We believe we can provide better service to our clients by having order types that can dynamically adapt to market conditions. Its still early days for Dynamic M-ELO, but its been quite successfulwere seeing increased order flow and higher hit rates, and were seeing no degradation in markouts. So, clients are clearly benefiting from the service.
Another part of dynamic markets is our strike optimization program, where we use machine learning models to figure out which strikes we should have listed in the options market. About 1.3 million strikes can be listed in the options market, so manually determining what strikes should be listed is difficult. We think this is a perfect use case where machines can do it better than humans.
We have several other items in the research phase, such as order types and other solutions within the dynamic markets program. We believe these two first launches are just the beginning of how AI will transform markets.
Generative AI has been a very hot topic. Do any AI use cases at Nasdaq utilize generative AI?
Broadly speaking, if theres an investigative component anywhere within a solution set, generative AI can be very valuable.
As for specific applications, ourVerafinand market surveillance solutions are rolling out automated investigators that use generative AI to make investigating illicit activities more effortless. We recently launched a feature inBoardVantagethat allows us to summarize documents, which can make reviewing length board documents easier.
Beyond those examples, there are a host of new product enhancements that use generative AI. Really, anywhere theres a user interface where people are trying to answer questions, youre probably going to see some sort of generative chatbot interface in the near future.
What will the AI adoption weve been talking about mean for Nasdaq and the markets in the future?
Information can be acted upon much more quickly because generative systems can summarize data more quickly.
Im dating myself here, but when I was a kid, if I wanted to research something, I had to go to the libraryit would take me quite a long time to find the answer. With the advent of the internet, I didnt have to drive to the library anymore. And then when mobile came out, I didnt even have to go home to my computer. Timeframes for information access have gotten shorter and shorterand generative AI will further compress that time.
The upshot for markets is that information will be acted upon much more quickly. This is why we think dynamic market solutions are so important.
What about generative AI raises caution flags?
Generative AI is an incredibly exciting area, but there are risks, and people need to take those risks seriously.
How are AI models built, how are they trained and where are they hosted? At Nasdaq, we focus on having excellent AI governance, where anything that goes out is looked at from a compliance, regulatory and technology perspective to ensure its safe, secure and scalable for clients. No AI solution goes out without a rigorous governance process to ensure that the models are effective and can be trusted.
Explainability is also critical. When we came to market with some of our dynamic market solutions, like Dynamic M-ELO, we were very transparent; in fact, we published a whole whitepaper about it. We covered questions like what features are going into the model, how the model behaves and what type of information it will use to make decisions.
Having that transparency and explainability is essential, and its something we value at Nasdaq.
Transparency is a core value for Nasdaq and a key part of what makes modern financial markets work so well. When it comes to generative AI at Nasdaq, transparency is equally important. Being able to explain both where information comes from and why its relevant is critical to ensuring generative AI is trustworthy and effective. Were excited about what transformation opportunities generative AI can provide, and we look forward to continuing this journey of discovery.
Creating tomorrows markets today. Find out more about Nasdaqs offerings to drive your business forwardhere.
Excerpt from:
TECH TUESDAY: Assessing the Present and Future of AI in Markets - Traders Magazine
- Global Data Science Platform Market Report 2020 Industry Trends, Share and Size, Complete Data Analysis across the Region and Globe, Opportunities and... [Last Updated On: November 11th, 2020] [Originally Added On: November 11th, 2020]
- Data Science and Machine-Learning Platforms Market Size, Drivers, Potential Growth Opportunities, Competitive Landscape, Trends And Forecast To 2027 -... [Last Updated On: November 11th, 2020] [Originally Added On: November 11th, 2020]
- Industrial Access Control Market 2020-28 use of data science in agriculture to maximize yields and efficiency with top key players - TechnoWeekly [Last Updated On: November 11th, 2020] [Originally Added On: November 11th, 2020]
- IPG Unveils New-And-Improved Copy For Data: It's Not Your Father's 'Targeting' 11/11/2020 - MediaPost Communications [Last Updated On: November 11th, 2020] [Originally Added On: November 11th, 2020]
- Risks and benefits of an AI revolution in medicine - Harvard Gazette [Last Updated On: November 11th, 2020] [Originally Added On: November 11th, 2020]
- UTSA to break ground on $90 million School of Data Science and National Security Collaboration Center - Construction Review [Last Updated On: November 11th, 2020] [Originally Added On: November 11th, 2020]
- Addressing the skills shortage in data science and analytics - IT-Online [Last Updated On: November 11th, 2020] [Originally Added On: November 11th, 2020]
- Data Science Platform Market Research Growth by Manufacturers, Regions, Type and Application, Forecast Analysis to 2026 - Eurowire [Last Updated On: November 11th, 2020] [Originally Added On: November 11th, 2020]
- 2020 AI and Data Science in Retail Industry Ongoing Market Situation with Manufacturing Opportunities: Amazon Web Services, Baidu Inc., BloomReach... [Last Updated On: November 11th, 2020] [Originally Added On: November 11th, 2020]
- Endowed Chair of Data Science job with Baylor University | 299439 - The Chronicle of Higher Education [Last Updated On: November 11th, 2020] [Originally Added On: November 11th, 2020]
- Data scientists gather 'chaos into something organized' - University of Miami [Last Updated On: November 11th, 2020] [Originally Added On: November 11th, 2020]
- AI Update: Provisions in the National Defense Authorization Act Signal the Importance of AI to American Competitiveness - Lexology [Last Updated On: January 12th, 2021] [Originally Added On: January 12th, 2021]
- Healthcare Innovations: Predictions for 2021 Based on the Viewpoints of Analytics Thought Leaders and Industry Experts | Quantzig - Business Wire [Last Updated On: January 12th, 2021] [Originally Added On: January 12th, 2021]
- Poor data flows hampered governments Covid-19 response, says the Science and Technology Committee - ComputerWeekly.com [Last Updated On: January 12th, 2021] [Originally Added On: January 12th, 2021]
- Ilia Dub and Jasper Yip join Oliver Wyman's Asia partnership - Consultancy.asia [Last Updated On: January 12th, 2021] [Originally Added On: January 12th, 2021]
- Save 98% off the Complete Excel, VBA, and Data Science Certification Training Bundle - Neowin [Last Updated On: January 12th, 2021] [Originally Added On: January 12th, 2021]
- Data Science for Social Good Programme helps Ofsted and World Bank - India Education Diary [Last Updated On: January 12th, 2021] [Originally Added On: January 12th, 2021]
- Associate Professor of Fisheries Oceanography named a Cooperative Institute for the North Atlantic Region (CINAR) Fellow - UMass Dartmouth [Last Updated On: January 12th, 2021] [Originally Added On: January 12th, 2021]
- Rapid Insight To Host Free Webinar, Building on Data: From Raw Piles to Data Science - PR Web [Last Updated On: January 12th, 2021] [Originally Added On: January 12th, 2021]
- This Is the Best Place to Buy Groceries, New Data Finds | Eat This Not That - Eat This, Not That [Last Updated On: January 12th, 2021] [Originally Added On: January 12th, 2021]
- Which Technology Jobs Will Require AI and Machine Learning Skills? - Dice Insights [Last Updated On: January 12th, 2021] [Originally Added On: January 12th, 2021]
- Companies hiring data scientists in NYC and how much they pay - Business Insider [Last Updated On: January 12th, 2021] [Originally Added On: January 12th, 2021]
- Calling all rock stars: hire the right data scientist talent for your business - IDG Connect [Last Updated On: January 12th, 2021] [Originally Added On: January 12th, 2021]
- How Professors Can Use AI to Improve Their Teaching In Real Time - EdSurge [Last Updated On: January 12th, 2021] [Originally Added On: January 12th, 2021]
- BCG GAMMA, in Collaboration with Scikit-Learn, Launches FACET, Its New Open-Source Library for Human-Explainable Artificial Intelligence - PRNewswire [Last Updated On: January 12th, 2021] [Originally Added On: January 12th, 2021]
- Data Science Platform Market Insights, Industry Outlook, Growing Trends and Demands 2020 to 2025 The Courier - The Courier [Last Updated On: January 31st, 2021] [Originally Added On: January 31st, 2021]
- UBIX and ORS GROUP announce partnership to democratize advanced analytics and AI for small and midmarket organizations - PR Web [Last Updated On: January 31st, 2021] [Originally Added On: January 31st, 2021]
- Praxis Business School is launching its Post Graduate Program in Data Engineering in association with Knowledge Partners - Genpact and LatentView... [Last Updated On: January 31st, 2021] [Originally Added On: January 31st, 2021]
- What's So Trendy about Knowledge Management Solutions Market That Everyone Went Crazy over It? | Bloomfire, CSC (American Productivity & Quality... [Last Updated On: January 31st, 2021] [Originally Added On: January 31st, 2021]
- Want to work in data? Here are 6 skills you'll need Just now - Siliconrepublic.com [Last Updated On: January 31st, 2021] [Originally Added On: January 31st, 2021]
- Data, AI and babies - BusinessLine [Last Updated On: January 31st, 2021] [Originally Added On: January 31st, 2021]
- Here's how much Amazon pays its Boston-based employees - Business Insider [Last Updated On: January 31st, 2021] [Originally Added On: January 31st, 2021]
- Datavant and Kythera Increase the Value Of Healthcare Data Through Expanded Data Science Platform Partnership - GlobeNewswire [Last Updated On: January 31st, 2021] [Originally Added On: January 31st, 2021]
- O'Reilly Analysis Unveils Python's Growing Demand as Searches for Data Science, Cloud, and ITOps Topics Accelerate - Business Wire [Last Updated On: January 31st, 2021] [Originally Added On: January 31st, 2021]
- Book Review: Hands-On Exploratory Data Analysis with Python - insideBIGDATA [Last Updated On: January 31st, 2021] [Originally Added On: January 31st, 2021]
- The 12 Best R Courses and Online Training to Consider for 2021 - Solutions Review [Last Updated On: January 31st, 2021] [Originally Added On: January 31st, 2021]
- Software AG's TrendMiner 2021.R1 Release Puts Data Science in the Hands of Operational Experts - Yahoo Finance [Last Updated On: January 31st, 2021] [Originally Added On: January 31st, 2021]
- The chief data scientist: Who they are and what they do - Siliconrepublic.com [Last Updated On: January 31st, 2021] [Originally Added On: January 31st, 2021]
- Berkeley's data science leader dedicated to advancing diversity in computing - UC Berkeley [Last Updated On: January 31st, 2021] [Originally Added On: January 31st, 2021]
- Awful Earnings Aside, the Dip in Alteryx Stock Is Worth Buying - InvestorPlace [Last Updated On: February 12th, 2021] [Originally Added On: February 12th, 2021]
- Why Artificial Intelligence May Not Offer The Business Value You Think - CMSWire [Last Updated On: February 12th, 2021] [Originally Added On: February 12th, 2021]
- Getting Prices Right in 2021 - Progressive Grocer [Last Updated On: February 12th, 2021] [Originally Added On: February 12th, 2021]
- Labelbox raises $40 million for its data labeling and annotation tools - VentureBeat [Last Updated On: February 12th, 2021] [Originally Added On: February 12th, 2021]
- How researchers are using data science to map wage theft - SmartCompany.com.au [Last Updated On: February 12th, 2021] [Originally Added On: February 12th, 2021]
- Ready to start coding? What you need to know about Python - TechRepublic [Last Updated On: February 12th, 2021] [Originally Added On: February 12th, 2021]
- Women changing the face of science in the Middle East and North Africa - The Jerusalem Post [Last Updated On: February 12th, 2021] [Originally Added On: February 12th, 2021]
- Mapping wage theft with data science - The Mandarin [Last Updated On: February 12th, 2021] [Originally Added On: February 12th, 2021]
- Data Science Platform Market 2021 Analysis Report with Highest CAGR and Major Players like || Dataiku, Bridgei2i Analytics, Feature Labs and More KSU... [Last Updated On: February 12th, 2021] [Originally Added On: February 12th, 2021]
- Data Science Impacting the Pharmaceutical Industry, 2020 Report: Focus on Clinical Trials - Data Science-driven Patient Selection & FDA... [Last Updated On: February 12th, 2021] [Originally Added On: February 12th, 2021]
- App Annie Sets New Bar for Mobile Analytics with Data Science Innovations - PRNewswire [Last Updated On: February 12th, 2021] [Originally Added On: February 12th, 2021]
- Data Science and Analytics Market 2021 to Showing Impressive Growth by 2028 | Industry Trends, Share, Size, Top Key Players Analysis and Forecast... [Last Updated On: February 12th, 2021] [Originally Added On: February 12th, 2021]
- How Can We Fix the Data Science Talent Shortage? Machine Learning Times - The Predictive Analytics Times [Last Updated On: February 14th, 2021] [Originally Added On: February 14th, 2021]
- Opinion: How to secure the best tech talent | Human Capital - Business Chief [Last Updated On: February 14th, 2021] [Originally Added On: February 14th, 2021]
- Following the COVID science: what the data say about the vaccine, social gatherings and travel - Chicago Sun-Times [Last Updated On: February 14th, 2021] [Originally Added On: February 14th, 2021]
- Automated Data Science and Machine Learning Platforms Market Technological Growth and Precise Outlook 2021- Microsoft, MathWorks, SAS, Databricks,... [Last Updated On: February 14th, 2021] [Originally Added On: February 14th, 2021]
- 9 investors discuss hurdles, opportunities and the impact of cloud vendors in enterprise data lakes - TechCrunch [Last Updated On: February 14th, 2021] [Originally Added On: February 14th, 2021]
- Rapid Insight to Present at Data Science Salon's Healthcare, Finance, and Technology Virtual Event - PR Web [Last Updated On: February 14th, 2021] [Originally Added On: February 14th, 2021]
- Aunalytics Acquires Naveego to Expand Capabilities of its End-to-End Cloud-Native Data Platform to Enable True Digital Transformation for Customers -... [Last Updated On: February 22nd, 2021] [Originally Added On: February 22nd, 2021]
- Tech Careers: In-demand Courses to watch out for a Lucrative Future - Big Easy Magazine [Last Updated On: February 22nd, 2021] [Originally Added On: February 22nd, 2021]
- Willis Towers Watson enhances its human capital data science capabilities globally with the addition of the Jobable team - GlobeNewswire [Last Updated On: February 22nd, 2021] [Originally Added On: February 22nd, 2021]
- Global Data Science Platform Market 2021 Industry Insights, Drivers, Top Trends, Global Analysis And Forecast to 2027 KSU | The Sentinel Newspaper -... [Last Updated On: February 22nd, 2021] [Originally Added On: February 22nd, 2021]
- A Comprehensive Guide to Scikit-Learn - Built In [Last Updated On: February 22nd, 2021] [Originally Added On: February 22nd, 2021]
- Industry VoicesBuilding ethical algorithms to confront biases: Lessons from Aotearoa New Zealand - FierceHealthcare [Last Updated On: February 22nd, 2021] [Originally Added On: February 22nd, 2021]
- How Intel Employees Volunteered Their Data Science Expertise To Help Costa Rica Save Lives During the Pandemic - CSRwire.com [Last Updated On: February 22nd, 2021] [Originally Added On: February 22nd, 2021]
- Learn About Innovations in Data Science and Analytic Automation on an Upcoming Episode of the Advancements Series - Yahoo Finance [Last Updated On: February 22nd, 2021] [Originally Added On: February 22nd, 2021]
- Symposium aimed at leveraging the power of data science for promoting diversity - Penn State News [Last Updated On: February 22nd, 2021] [Originally Added On: February 22nd, 2021]
- Rochester to advance research in biological imaging through new grant - University of Rochester [Last Updated On: February 22nd, 2021] [Originally Added On: February 22nd, 2021]
- SoftBank Joins Initiative to Train Diverse Talent in Data Science and AI - Entrepreneur [Last Updated On: February 22nd, 2021] [Originally Added On: February 22nd, 2021]
- Participating in SoftBank/ Correlation One Initiative - Miami - City of Miami [Last Updated On: February 22nd, 2021] [Originally Added On: February 22nd, 2021]
- Increasing Access to Care with the Help of Big Data | Research Blog - Duke Today [Last Updated On: February 22nd, 2021] [Originally Added On: February 22nd, 2021]
- Heres how Data Science & Business Analytics expertise can put you on the career expressway - Times of India [Last Updated On: March 14th, 2021] [Originally Added On: March 14th, 2021]
- Yelp data shows almost half a million new businesses opened during the pandemic - CNBC [Last Updated On: March 14th, 2021] [Originally Added On: March 14th, 2021]
- Postdoctoral Position in Transient and Multi-messenger Astronomy Data Science in Greenbelt, MD for University of MD Baltimore County/CRESST II -... [Last Updated On: March 14th, 2021] [Originally Added On: March 14th, 2021]
- DefinedCrowd CEO Daniela Braga on the future of AI, training data, and women in tech - GeekWire [Last Updated On: March 14th, 2021] [Originally Added On: March 14th, 2021]
- Gartner: AI and data science to drive investment decisions rather than "gut feel" by mid-decade - TechRepublic [Last Updated On: March 14th, 2021] [Originally Added On: March 14th, 2021]
- Jupyter has revolutionized data science, and it started with a chance meeting between two students - TechRepublic [Last Updated On: March 14th, 2021] [Originally Added On: March 14th, 2021]
- Working at the intersection of data science and public policy | Penn Today - Penn Today [Last Updated On: March 14th, 2021] [Originally Added On: March 14th, 2021]
- The Future of AI: Careers in Machine Learning - Southern New Hampshire University [Last Updated On: April 4th, 2021] [Originally Added On: April 4th, 2021]
- SMU meets the opportunities of the data-driven world with cutting-edge research and data science programs - The Dallas Morning News [Last Updated On: April 4th, 2021] [Originally Added On: April 4th, 2021]
- Data, Science, and Journalism in the Age of COVID - Pulitzer Center on Crisis Reporting [Last Updated On: April 4th, 2021] [Originally Added On: April 4th, 2021]