I think AI may make markets more synchronized before it makes them smarter.
Most people are focused on speed, analytical power and automation. I am looking at a different risk.
In the past, it took time for thousands of investors to reach the same conclusion. Even when they were looking at the same data, the time between interpretation and execution was different.
That gap is getting smaller.
Now thousands of decision engines can read the same information and reach similar conclusions within seconds. The real issue is not that everyone holds the same asset.
It is that everyone can reach the same idea at the same time.
I call this decision compression.
If the same signal turns into similar positions almost instantly, markets may not need more capital or more leverage to become more violent.
Sometimes a shorter decision cycle is enough.
Risk does not always come from the size of positions. It can also come from thousands of independent decisions collapsing into the same behavior at the same moment.
I do not think the crowded trade of the future will be millions of people thinking the same thing.
It may be millions of decision engines thinking the same thing in the same second.
AI may not change markets most through better predictions.
The real shift may begin when it removes the time gap between independent decisions.
#ArtificialIntelligence #MarketStructure #TufanSalur