The next stage of energy trading
There are concerns that AI technology will end in world domination. How reasonable is this fear? Let’s think about it this way: If you're negligent with scissors, you can injure yourself quite seriously, but using them to open cardboard boxes or to clip coupons is sensible. It’s all about how we implement technologies, and the same is true for artificial intelligence.
Today, AI has practical applications in many sectors and fields of interest, e.g., search engines, translations, self-driving cars, healthcare, deepfakes, and video games. In the coming decades, we can expect revolutionary impacts across mainstream and niche industries, including energy trading. Soon enough, the current standard in trading will be revolutionized by augmented trading. Proper use of AI will bring significant momentum to the industry. Self-driving cars offer a good analogy to illustrate this concept.
Driven by AI
Autonomous driving refers to cars that get you from A to B completely on their own. That means they can accelerate, brake, steer, and park without human intervention. Self-driving cars don't need pedals or a steering wheel, and, just like humans, they are aware of traffic lights, pedestrians, cyclists, cones, and other drivers. This developing technology could eventually lead to a smarter, more efficient, and less accident-prone way of driving.
Here, we can draw a comparison to augmented trading, an approach where manual trading is replaced with self-learning AI. The human role in this strategy becomes more focused on design, application of machine learning and AI methods, and the combination of the latest AI technology with market knowledge. Innovative trading strategies can be implemented to stay ahead of ever-changing market conditions. Instead of using fixed rules, the AI learns how the market works by scanning huge volumes of market data – similar to a self-driving car detecting its surroundings, staying in the lane, switching lanes, and following GPS instructions to the final destination.
Next-stage energy trading
We believe augmented trading and the use of AI will follow a similar course in trading as they did in chess games, where the introduction of AlphaZero had a revolutionary impact on the chess community. It has been observed that even the best chess players struggle to keep up with AI-developed strategies, and the same holds true for trading.
Trading with AI
At enspired, we see augmented trading as a groundbreaking new way of integrating power assets into the energy markets. Combining the capabilities of new technologies with the skills and experience of human trading experts elevates the trading outcome, and this incentivizes asset owners to market their flexibility.
By deploying self-learning algorithms, tailoring optimization strategies to asset specifications, and enhancing live trading with embedded monitoring, risk controls, and real-time data, we ensure that our proprietary platform stays ahead of the competition. Our AI-augmented algorithms recognize changes in market conditions and adapt their behaviour accordingly to achieve superior performance for our customers.
Are you interested in leveraging AI to maximize the revenue of your flexibility?
