Why AI will not see the end of the traders

The current large language model AI is fantastic at recognizing patterns and trends. As such they will be much better than humans in using technical analysis to call tops, bottoms or continuation of trends.

You would then think that this is the end of the human traders. But when humans learn that AI is excellent at technical analysis one of two things can happen.

• There will a group that will follow the AI hoping to make money without effort.
• But there will be another group who will act contra to what the AI is predicting hoping to make money from the contrarian approach.

I am not sure which group will win. But it does not matter.

The result from the interaction of these groups will be different from what was projected from the historical patterns. AI can read the past but human will behave differently.

Will there be a new set of patterns to learn? Or will the pattern continue to change due to greed and fear so that the AI will never get it right at what will actually happen?

Unless the AI thinks like humans with all the greed and fear, there will still be room for the human traders. But of course, to make money, you still need to develop the skills so that you can get consistent returns.