How AI Is Making Fortunes and Creating Chaos in Stock Markets
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From Goldman Sachs to solo traders, AI has become Wall Street’s most powerful asset — and its biggest risk. As algorithms make billions, regulators warn that the next crash may not be human-made.
By S JHA
Mumbai, November 3, 2025 — Stock market traders are deploying algorithm tools to master trades as screens on bourses lighten with moves in prices of stocks. Traders in Mumbai, Kolata, Hyderabad, and Chennai are investing in artificial intelligence tools to trust their trades rather than conventional wisdom gained through pain and euphoria over the years.
“Artificial intelligence isn’t just reshaping Wall Street — it’s ruling it,” wrote former Kyrgyz Prime Minister Djoomart Otorbaev in a post on LinkedIn, titled “Wall Street’s New God: How AI Is Making Fortunes and Creating Chaos.”
A feverish transformation is underway in global finance, he said, adding that “artificial intelligence is rewriting the rules of Wall Street — and not quietly.” “What began as an experiment in financial modelling has become a multibillion-dollar arms race,” wrote Otorbaev.
He claimed that “solo traders are reportedly earning up to $1 billion a year using AI-generated insights. Institutional players have gone all in: Goldman Sachs says AI now prepares 95% of IPO documents, while J.P. Morgan spends $18 billion annually on technology — most of it AI. The bank’s proprietary system now supports over 200,000 employees daily.”
He further stated that “Morgan Stanley’s collaboration with OpenAI has saved an astounding 280,000 hours of coding in just a year. Bridgewater has launched a $2 billion AI fund, and Blackstone relies on algorithms to optimise insurance portfolios.”
Verified Market Research estimates that AI in finance could generate $250 billion annually by 2032. But as Otorbaev points out, “beneath this glittering surface lies a growing unease.” The U.S. Securities and Exchange Commission (SEC) has already fined firms over deceptive “AI-washing” — false claims about using artificial intelligence. Regulators now face a paradox: if they curb AI use, American finance risks falling behind; if they allow it unchecked, liability to clients could skyrocket.
On the flip side, Otorbaev argued that “AI systems hallucinate, misread data, and overstate revenues by as much as 25%, according to Baytech Consulting.” “Even more chilling, research by The Wharton School and HKUST revealed that trading bots can collude — forming cartels to suppress competition, all without human direction,” he warned, adding that “the British firm XTX Markets, which trades $300 billion daily with just 31 employees, earns more than $2 billion a year.”
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