How Hudson River Trading Actually Uses AI

Odd Lots

Bloomberg

News, Investing, Business, News Commentary, Business News

4.4 • 1.6K Ratings

🗓️ 31 October 2025

⏱️ 60 minutes

🔗️ Recording | iTunes | RSS

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Summary

Unfortunately, it doesn't seem as though you can get great stock picks just by going to ChatGPT and asking it to recommend some investments. And yet financial firms of all sorts — including trading firms — say they're increasingly using AI. But are the tools actually being deployed? And how do these tools differ from traditional machine learning or algorithmic approaches to trading, the likes of which have been used by quant firms for decades now. On this episode of the podcast, we speak with Iain Dunning, the head of AI research at Hudson River Trading, a major US market maker. We discuss the firm's attempts to use AI not just for more efficient trading, but also to make short-term predictions about price, which further gives its traders an edge. Dunning walks us through his work, his views on the main constraints facing the space (labor, power, chips, etc.) and how his work is both different and similar to what's happening at the major cutting edge research labs like ChatGPT.

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0:00.0	You're being sold an AI future where you're obsolete or irrelevant.
0:04.0	That vision is wrong.
0:06.0	At Palantir, they're building AI that helps workers and unlocks their full potential.
0:12.0	American workers are our nation's greatest strength.
0:16.0	AI shouldn't eliminate them. It should elevate them.
0:19.0	Palantir is here to tell their stories. From factories
0:23.0	to hospitals, AI is freeing people from drudgery, letting them do what humans do best. Create, solve,
0:31.0	build. Palantir, making Americans irreplaceable. Hello and welcome. This is the Michelle Hussein show.
0:39.3	I'm Michelle Hussein.
0:40.8	I speak with people like Elon Musk.
0:43.3	I think I've done enough.
0:44.2	And Shonda Rhymes.
0:45.2	That's so cute.
0:46.2	This will be a place where every weekend you can count on one essential conversation
0:51.8	to help make sense of the world.
0:53.7	So please join me. Listen and subscribe to the Michelle Hussein Show one essential conversation to help make sense of the world.
1:00.2	So please join me, listen and subscribe to the Mishal Hussein show from Bloomberg weekend,
1:02.2	wherever you get your podcast.
1:04.1	You certainly ask interesting questions.
1:13.0	Bloomberg Audio Studios, Podcasts Radio News.
1:26.6	Hello and welcome to another episode of the Odd Lots podcast.
1:27.8	I'm Jill Wisenthal.
	...

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