The use of artificial intelligence in derivatives markets was a key theme at FIA's Expo conference on 2 October with speakers sharing how they are exploring potential uses for generative AI as well as demonstrating current applications in trading and clearing. 

In the first AI panel of the day, speakers discussed the practical issues that firms should consider as they begin experimenting with generative AI tools and models. Setting the scene, Erin Stanton, global head of analytics client coverage at Virtu Financial, explained the difference between generative AI – or Gen AI – and traditional machine learning. 

"Traditional machine learning is what I call 'discriminative AI'. It looks for patterns and trends within data it is trained on and makes predictions from those patterns," Stanton said. "Generative AI refers to models or algorithms that create something new. For example, you can use it to help you draft an email. You can use it to ideate on a marketing slogan, or you can use it to help you generate Python code. Discriminative AI is looking for patterns in data, generative AI is more creative."