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MBA Program Program & Admissions Overviews

GMAC MBA Tour: Kansas City

Join top business schools in Kansas City! Meet admissions, hear application advice, and network with your peers.

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Press

Artificial intelligence: A revolution underway in finance and trading

Auto trading (or algorithmic trading) has become so successful that it now accounts for a significant portion of trading in financial markets. As professor Andrew W. Lo explains, "Trading algorithms exploit opportunities that even the most experienced human traders cannot detect in time." However, while auto-trading offers unparalleled execution speed, it also requires constant vigilance.

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The trouble with meritocracy

Professor Emilio J. Castilla wrote: "The paradox of meritocracy suggests that the more managers and others in decision-making positions are reassured of their companies' meritocratic ethos, the less likely they are to reflect on their own biases, often leading to decisions that may disproportionately affect marginalized employees."

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Big Tech is crushing middle managers. Some fear the great flattening has gone too far.

Ideally, companies would remove layers and spread decision-making throughout the organization so that those closest to customers or technology, for example, could generate ideas and make decisions, professor Deborah Ancona said. "You're kind of flipping the organization," she said. "Rather than all the ideas coming from on high, you have entrepreneurial leaders who are lower down in the organization coming up with new ideas."

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