What is AI Trading?
Using artificial intelligence systems to make or assist trading decisions.
Formal Definition
AI trading covers any system where machine learning, large language models, or other AI techniques generate trade signals, manage portfolios, or execute orders. Modern AI traders can ingest news, fundamentals, technicals, and alternative data at once. The AI Stock Challenge benchmarks frontier models from OpenAI, Anthropic, xAI, and Google on the same financial-reasoning task.
In Simple Terms
It is letting a computer program, often powered by the same kind of AI behind chatbots, decide what stocks to buy and sell. The goal is to process far more information than a human could and act on it quickly.
Example
A model reads the day's market data and news, then outputs buy, sell, or hold decisions with written reasoning that a panel of judges grades.