{"id":140062,"date":"2025-05-19T07:35:22","date_gmt":"2025-05-19T04:35:22","guid":{"rendered":"https:\/\/tietopankki.crnet.fi\/fi\/yleinen\/trading-bots-are-evolving-what-happens-when-ai-cheats-the-market\/"},"modified":"2025-05-19T07:35:22","modified_gmt":"2025-05-19T04:35:22","slug":"trading-bots-are-evolving-what-happens-when-ai-cheats-the-market","status":"publish","type":"post","link":"https:\/\/tietopankki.crnet.fi\/en\/yleinen\/trading-bots-are-evolving-what-happens-when-ai-cheats-the-market\/","title":{"rendered":"Trading bots are evolving: What happens when AI cheats the market?"},"content":{"rendered":"<div class=\"mp_wrapper\">\n  <div class=\"mepr-unauthorized-message\">\n    <p>You are unauthorized to view this page.<\/p>\n  <\/div>\n  <div class=\"mepr-login-form-wrap\">\n            \n<div class=\"mp_wrapper mp_login_form\">\n                  <!-- mp-login-form-start -->     <form name=\"mepr_loginform\" id=\"mepr_loginform\" class=\"mepr-form\" action=\"https:\/\/tietopankki.crnet.fi\/en\/login-2\/\" method=\"post\" data-trp-original-action=\"https:\/\/tietopankki.crnet.fi\/en\/login-2\/\">\n            <div class=\"mp-form-row mepr_username\">\n        <div class=\"mp-form-label\">\n                              <label for=\"user_login\">Username<\/label>\n        <\/div>\n        <input type=\"text\" name=\"log\" id=\"user_login\" value=\"\" \/>\n      <\/div>\n      <div class=\"mp-form-row mepr_password\">\n        <div class=\"mp-form-label\">\n          <label for=\"user_pass\">Password<\/label>\n          <div class=\"mp-hide-pw\">\n            <input type=\"password\" name=\"pwd\" id=\"user_pass\" value=\"\" \/>\n            <button type=\"button\" class=\"button mp-hide-pw hide-if-no-js\" data-toggle=\"0\" aria-label=\"Show password\">\n              <span class=\"dashicons dashicons-visibility\" aria-hidden=\"true\"><\/span>\n            <\/button>\n          <\/div>\n        <\/div>\n      <\/div>\n            <div>\n        <label><input name=\"rememberme\" type=\"checkbox\" id=\"rememberme\" value=\"forever\" \/> Remember Me<\/label>\n      <\/div>\n      <div class=\"mp-spacer\">&nbsp;<\/div>\n      <div class=\"submit\">\n        <input type=\"submit\" name=\"wp-submit\" id=\"wp-submit\" class=\"button-primary mepr-share-button\" value=\"Log In\" \/>\n        <input type=\"hidden\" name=\"redirect_to\" value=\"\/en\/wp-json\/wp\/v2\/posts\/140062\" \/>\n        <input type=\"hidden\" name=\"mepr_process_login_form\" value=\"true\" \/>\n        <input type=\"hidden\" name=\"mepr_is_login_page\" value=\"false\" \/>\n      <\/div>\n    <input type=\"hidden\" name=\"trp-form-language\" value=\"en\"\/><\/form>\n    <div class=\"mp-spacer\">&nbsp;<\/div>\n    <div class=\"mepr-login-actions\">\n        <a\n          href=\"https:\/\/tietopankki.crnet.fi\/en\/login-2\/?action=forgot_password\"\n          title=\"Click here to reset your password\"\n        >\n          Forgot Password        <\/a>\n    <\/div>\n\n      \n    <!-- mp-login-form-end --> \n  <\/div>\n      <\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<div class=\"smart_content_wrapper\">\nAlgorithms have been used in trading for decades, but recent advancements could throw up new challenges for regulators.<br \/>\nMalevolent trading practices aren\u2019t new. Struggles against insider trading, as well as different forms of market manipulation, represent a long-running battle for regulators. In recent years \u2014 however \u2014 experts have been warning of new threats to our financial systems. Developments in AI mean that automated trading bots are not only smarter, but they\u2019re more independent too. While basic algorithms respond to programmed commands, new bots are able to learn from experience, quickly synthesise vast amounts of information, and act autonomously when making trades.<\/p>\n<p>According to academics, one risk scenario involves collaboration between AI bots. Just imagine: hundreds of AI-driven social media profiles begin to pop up online, weaving narratives about certain companies. The information spread isn\u2019t necessarily fake, but may just be the amplification of existing news. In response, real social media users start to react, highlighting the bots\u2019 chosen message. As the market is tipped by the crafted narrative, one investor&#8217;s roboadvisor rakes in profits, having coordinated with the gossiping bots. Other investors, who didn\u2019t have the insider information, lose out by badly timing the market. The problem is, the investor profiting may not even be aware of the scheme. This means that charges of market manipulation can\u2019t necessarily be effective, even if authorities can see that a trader has benefitted from distortive practices.<\/p>\n<p><em>Social platforms are changing trading<\/em><br \/>\nAlessio Azzutti, assistant professor in law &amp; technology (FinTech) at the University of Glasgow, told Euronews that the above scenario is still a hypothesis \u2014 as there\u2019s not enough evidence to prove it\u2019s happening. Even so, he explains that similar, less sophisticated schemes are taking place, particularly in \u201ccrypto asset markets and decentralised finance markets\u201d. \u201cMalicious actors\u2026 can be very active on social media platforms and messaging platforms such as Telegram, where they may encourage members to invest their money in DeFi or in a given crypto asset, to suit themselves,\u201d Azzutti explained. \u201cWe can observe the direct activity of human malicious actors but also those who deploy AI bots.\u201d<\/p>\n<p>He added that the agents spreading misinformation may not necessarily be very sophisticated, but they still have the power to \u201cpollute chats through fake news to mislead retail investors\u201d. \u201cAnd so the question is, if a layman, if a youngster on his own in his home office is able to achieve these types of manipulations, what are the limits for the bigger players to achieve the same effect, in even more sophisticated markets?\u201d<\/p>\n<p>The way that market information now spreads online, in a widespread, rapid, and uncoordinated fashion, is also fostering different types of trading. Retail investors are more likely to follow crazes, rather than relying on their own analysis, which can destabilise the market and potentially be exploited by AI bots. The widely-cited GameStop saga is a good example of herd trading, when users on a Reddit forum decided to buy up stock in the video game company en masse. Big hedge funds were betting that the price would fall, and subsequently lost out when it skyrocketed. Many experts say this wasn\u2019t a case of collusion as no official agreement was created.<\/p>\n<p>A spokesperson from ESMA, the European Securities and Markets Authority, told Euronews that the potential for AI bots to manipulate markets and profit off the movements is &#8221;a realistic concern&#8221;, although they stressed that they don&#8217;t have &#8221;specific information or statistics on this already happening&#8221;. &#8221;These risks are further intensified by the role of social media, which can act as a rapid transmission channel for false or misleading narratives that influence market dynamics. A key issue is the degree of human control over these systems, as traditional oversight mechanisms may be insufficient,&#8221; said the spokesperson. ESMA highlighted that it was &#8221;actively monitoring&#8221; AI developments.<\/p>\n<p><a rel=\"noopener\" href=\"https:\/\/www.euronews.com\/business\/2025\/05\/18\/trading-bots-are-evolving-what-happens-when-ai-cheats-the-market\">Read more&gt;&gt;<\/a><\/p>\n<p>Source: <a rel=\"noopener\" href=\"https:\/\/www.euronews.com\/business\/2025\/05\/18\/trading-bots-are-evolving-what-happens-when-ai-cheats-the-market\">Euronews Business<\/a><\/p>\n<\/div>\n<p>The post <a rel=\"noopener\" href=\"https:\/\/vastuullisuusuutiset.fi\/fi\/csr-news-en\/trading-bots-are-evolving-what-happens-when-ai-cheats-the-market\/\">Trading bots are evolving: What happens when AI cheats the market?<\/a> appeared first on <a rel=\"noopener\" href=\"https:\/\/vastuullisuusuutiset.fi\/fi\">Vastuullisuusuutiset.fi<\/a>.<\/p>","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[22,1],"tags":[3519,18820,555,18821,655],"class_list":["post-140062","post","type-post","status-publish","format-standard","hentry","category-news","category-yleinen","tag-ai","tag-cheats-the-market","tag-csr-news-en","tag-what-happens","tag-yleinen"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/tietopankki.crnet.fi\/en\/wp-json\/wp\/v2\/posts\/140062","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tietopankki.crnet.fi\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tietopankki.crnet.fi\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tietopankki.crnet.fi\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tietopankki.crnet.fi\/en\/wp-json\/wp\/v2\/comments?post=140062"}],"version-history":[{"count":0,"href":"https:\/\/tietopankki.crnet.fi\/en\/wp-json\/wp\/v2\/posts\/140062\/revisions"}],"wp:attachment":[{"href":"https:\/\/tietopankki.crnet.fi\/en\/wp-json\/wp\/v2\/media?parent=140062"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tietopankki.crnet.fi\/en\/wp-json\/wp\/v2\/categories?post=140062"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tietopankki.crnet.fi\/en\/wp-json\/wp\/v2\/tags?post=140062"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}