Finance Professor Josh Della Vedova talks new report bots are outperforming traders in prediction markets

May 2, 2026 - 03:29

Josh Della Vedova, a finance professor at the University of San Diego, recently appeared on "Fast Money" to discuss a new Bloomberg report showing that automated trading bots are outperforming human traders in prediction markets. According to the report, these bots are using algorithms to analyze data and place bets on future events with greater speed and accuracy than people can manage.

Della Vedova explained that prediction markets, where participants wager on outcomes like election results or economic indicators, have become a testing ground for artificial intelligence. The bots are not just faster; they are also better at processing complex information without emotional bias. Human traders often fall prey to overconfidence or herd mentality, while the bots stick to statistical models.

The professor noted that this trend raises questions about the future of trading. If bots can consistently beat humans in these markets, it could signal a shift toward fully automated systems in other financial sectors. However, Della Vedova cautioned that prediction markets are still niche and may not reflect broader market dynamics. He added that human oversight remains important, especially when markets face unpredictable events that algorithms might not handle well.

The report has sparked debate among traders and academics. Some see it as a sign that AI is becoming indispensable, while others worry about job displacement. For now, Della Vedova suggests that traders should focus on improving their own strategies rather than trying to compete directly with machines. The full discussion aired on "Fast Money" and has drawn attention from those following the intersection of finance and technology.