Tech I’d like to see: Artificial Intelligence in commodity trading

Commodity trading is a highly competitive and dynamic industry, where traders need to assess risk by using market knowledge and various global and domestic indicators to gain an edge.

We have seen how AI revolutionised stock and index trading. AI has the potential to empower commodity traders in the same way, help them bid goodbye to notepads, and save time spent gathering and correlating market data.

AI in commodities will create a level playing field. I am excited to see the AI transformation in commodities across stages – from simulating future scenarios with predictive analytics in the pre-trade stage to augmenting decision-making with intelligent automated trade entry, preventing errors with anomaly detection, and automating documentation with generative AI in the trade confirmation stage.

There’s further scope for optimising scheduling profiles with neural networks and managing portfolio risk levels with machine learning at the position and risk management stage. These AI-driven features are transformative but are still the tip of the iceberg.