The AI Avengers: One Exchange at a Time to Save the Market! Written by none other than Daniel Reitberg

Market makers are the DJs who play the music of liquidity on exchanges, which are like dance floors. Artificial intelligence has now shown up at the party and is changing everything in ways we didn’t see coming! “AI-powered market-making wizards help exchanges keep liquidity flowing like a well-oiled machine across various asset classes, making sure users can trade without a hitch,” Reitberg says. AI systems are like personal trainers for the market. They are always keeping an eye on things and changing bid-ask spreads to keep assets as liquid as a smoothie, even when the market chooses to dance the cha-cha of volatility. This means that markets for exchanges are about as efficient as a squirrel on coffee, spreads are as tight as your favorite pair of jeans after the holidays, and transaction costs are almost asking to be lowered! In the world of exchanges, AI acts like a superhero, luring people in with the promise of a trade environment so stable it could beat a rock—with very little price slippage, of course! As more exchanges use AI to make markets, they will show off in a way that attracts both individual and institutional buyers like moths to a flame. Who knew that selling could be so cool? In the trading world, AI is shaking things up and making markets run like a well-oiled machine that even your grandmother could use—if she had a smartphone, of course.

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