AI Is Already Trading Markets — We Just Don’t See It Yet | Nathan Powell

AI isn’t coming for markets — it’s already here.

In this episode of Futures Edge, Jim Iuorio and Bob Iaccino sit down with Nathan Powell, Founder & CEO of Deep Market Making, to explore how deep learning is quietly transforming bond markets, trading desks, and financial decision-making — far faster than most investors realize.

Nathan shares his journey from Microsoft’s early deep-learning research to JP Morgan, where AI models beat traditional bond pricing systems and went live in production. From there, the conversation expands into bigger, more uncomfortable questions:

- Will AI eliminate trading jobs — or redefine them?

- Is the “edge” in markets shifting from execution to asking better questions?

- Can AI optimize markets without causing dangerous alignment or crashes?

- And what does this mean for younger generations choosing careers in a world where intelligence is automated?

This episode goes well beyond investing. It’s about how humans coexist with exponentially improving machines, why finance may be the most under-AI’d industry of all, and why traders may need to think more like entrepreneurs going forward.

Timestamps:

Chapters

00:00 Introduction and Housekeeping

01:00 Nathan Powell's Background in AI and Finance

03:59 The Role of AI in Trading and Market Predictions

07:44 Human vs AI: The Future of Trading

11:44 Deep Market Making: Applications and Future Plans

14:24 AI's Pervasiveness and Its Impact on Employment

17:16 Education and the Future Job Landscape

20:54 Concerns About Technology and Its Effects on Society

24:31 AI's Accuracy and Reliability in Financial Markets

27:59 The Impact of AI on Various Sectors

29:03 AI in Finance: A Game Changer

29:52 Challenges in Quantitative Finance

31:01 Measuring AI's ROI in Banking

32:40 Optimizing Trading Strategies with AI

37:00 Multi-Objective Optimization in Trading

39:07 Addressing AI Fears and Misalignments

42:08 The Future of AI and Financial Crashes

44:07 Convergence of AI and Crypto