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AI Adoption on Wall Street Raises Concerns About Crowded Trading

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2026-07-01 10:13:13
Wall Street’s growing use of artificial intelligence is raising concerns that investors could end up crowding into the same trades as they rely on similar models, Bloomberg reported.

Researchers are examining whether broader AI adoption by hedge funds and wealth managers could lead to more investors buying the same stocks, reacting to the same headlines, and at times repeating the same mistakes.
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