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AI is not just changing trading strategies — it is changing how capital moves. In my latest Economic Journal column, I explore how AI is beginning to reshape not only trading and investment decisions, but the flow of capital itself.For decades, markets have been driven by human judgement, research teams, and discretionary allocation decisions. AI changes that equation. Today, AI can: 1. process massive datasets in real time 2. detect patterns and regime shifts faster than traditional methods 3. optimize execution and portfolio construction dynamically and increasingly influence how capital is allocated across markets This does not mean human investors become irrelevant. But it does mean the nature of edge is changing. As AI becomes embedded into trading systems, research workflows, and asset allocation frameworks, market behaviour itself may become faster, more adaptive, and potentially more reflexive. In the article, I discuss how AI could reshape trading dynamics, investment flows, and the broader competitive landscape for fund managers and market participants. The future may not belong to those with more information — but to those who can interpret, filter, and act on it better. #AI #hedgefund #trading