AI-powered trade surveillance systems expected to increase by 82% by 2029, according to research from Juniper Research.

Propelled by an increasing reliance on artificial intelligence, third-party trade surveillance systems are anticipated to experience a substantial boom in the upcoming years. Juniper Research has conducted a comprehensive study forecasting an 82% surge in global spending on such systems by 2029, with expenditures projected to soar to US$4.9 billion from US$2.7 billion in 2025.

Trade surveillance systems play a crucial role in capturing and scrutinizing trade data to identify potential market infringements, such as insider trading or the propagation of false market appearances. The significant growth in the adoption of these systems is primarily attributed to the tightening grip of regulations that necessitate financial institutions to monitor a wider array of trade data to thwart illicit trading operations.

The study underscores the pivotal role of complete and accurate data integration in comprehending trade contexts effectively. Juniper Research emphasizes the imperative need for trade surveillance systems to harness the power of artificial intelligence to proactively thwart unlawful trading activities rather than merely responding reactively to them.

The report recommends that trade surveillance systems be granted access to employee communication data and external news sources to empower AI in pinpointing anomalous trading patterns. Communication monitoring tools are posited as indispensable for detecting subtle cues of market manipulation that may elude detection from trade data analysis alone.

Juniper Research advocates for surveillance product vendors to forge partnerships with news agencies, trading platforms, and messaging service providers to bolster their capabilities in combatting financial misconduct. Daniel Bedford, the author of the research, asserted that in order to seize the opportunities presented by the evolving regulatory landscape, it is imperative for vendors to ingrain AI at the heart of their operations. Those who fail to embrace robust and proactive AI models may find themselves outpaced by more nimble competitors in the market.

In essence, the era of AI-driven trade surveillance systems is rapidly approaching, signaling a critical transformation in the domain of financial monitoring and regulatory compliance. As businesses navigate an increasingly complex and interconnected marketplace, the integration of AI technologies into surveillance systems emerges as a strategic imperative for safeguarding market integrity and ensuring regulatory adherence in the years ahead.