[ C O V E R
S T O R Y
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M I L E S
K U M A R E S A N ]
“Everything that we are doing now
is to create tools; where they already
exist we will use them, but if they
don’t exist then we will create
specialist tools for the traders.”
AI in trading still remains a
somewhat slippery entity; while
there are some impressive AI
systems out there, Kumaresan says
that much of this is simply “what
used to be called statistics a couple
of years ago.” Having spent the
greater part of his academic years
studying computer sciences and
having attained a Master of Phi-
losophy degree in AI and Robotics,
Kumaresan doesn’t impress easily
when it comes to the AI label that
can often be erroneously applied in
the FinTech space.
“Having built AI for a long time
in other contexts my view is that
the majority of the technology with
the AI sticker is mere snake oil,”
he says. “Therefore, I am a little
hesitant in using the word AI.”
And he says that having AI re-
place humans for trading is “abso-
lutely not” likely in the foreseeable
future: “AI can beat chess grand
masters because chess has clear
states, structure and rules. Trading,
on the other hand, requires com-
plex higher level decision making
based on vast amounts of mostly
noisy and ambiguous information.
Therefore, I expect execution to
remain an inalienable prerogative
of human traders for a long time to
come,” he says.
Nordea also has models to nor-
malise trade slippage, to convert
raw slippage data into a form
that is comparable across met-
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