Tag Archives: AI

Anthropic’s Project Glasswing Could Change Cybersecurity Forever

There are moments in tech when you read an announcement and immediately realise that something important has shifted.

That was very much my reaction when I came across Project Glasswing, a newly announced initiative from Anthropic that is aimed squarely at one of the biggest looming problems in modern computing: what happens when AI becomes exceptionally good at finding software vulnerabilities. Source

According to Anthropic, Project Glasswing brings together a heavyweight list of partners including Amazon Web Services, Apple, Broadcom, Cisco, CrowdStrike, Google, JPMorganChase, the Linux Foundation, Microsoft, NVIDIA and Palo Alto Networks, all with the goal of securing critical software for what Anthropic calls the AI era. It is also extending access to more than 40 additional organisations that build or maintain important software infrastructure. Source

Now, that alone would be interesting enough, but the real headline here is the model sitting behind it all.

Anthropic says its unreleased model, Claude Mythos Preview, has already demonstrated the ability to find and exploit software vulnerabilities at a level beyond all but the most skilled human experts. That is a huge claim, and if it holds up in practice, it means we may have crossed into a very different phase of cybersecurity. Source

In plain English, this is not just about a chatbot helping someone write a bit of code more quickly. This is about AI being able to inspect complex software, spot weaknesses that humans and automated tools have missed for years, and in some cases work out how those weaknesses could be exploited. Anthropic says the model has already found thousands of high-severity vulnerabilities, including flaws affecting major operating systems and web browsers. Source

Some of the examples are rather startling. Anthropic says Mythos Preview uncovered a 27-year-old vulnerability in OpenBSD, a 16-year-old flaw in FFmpeg, and even chained together several Linux kernel vulnerabilities in a way that could escalate ordinary user access into full control of a machine. The company says those issues have now been responsibly disclosed and patched. Source

That, to me, is the bit that really lands.

Because for years we have tended to think of cybersecurity in terms of patching known issues, following best practice, keeping software up to date and hoping the really serious flaws are found by the good people before the bad people. But if AI systems are now reaching the point where they can autonomously discover dangerous bugs in code that has survived decades of scrutiny, then the pace of both defence and attack could increase dramatically. Source

Anthropic is clearly trying to frame Glasswing as a defensive first move. The company says it is committing up to $100 million in usage credits for Mythos Preview and $4 million in direct donations to open-source security organisations. The idea seems to be to put these capabilities into the hands of defenders, infrastructure operators and maintainers before similar systems become more widely available. Source

And that is probably the most sensible angle here.

Because whether we like it or not, the genie is not going back in the bottle. If one frontier AI lab can build a model that is frighteningly good at vulnerability discovery, others will too. Eventually, those capabilities will spread further. The question is not really whether AI will reshape cybersecurity. It is whether defenders can get enough of a head start to stop things getting seriously messy. That is an inference from Anthropic’s announcement and the examples it gives, rather than a direct claim from the company, but it feels like the unavoidable conclusion. Source

For those of us who run websites, servers, ecommerce platforms, mail systems or anything else connected to the wider internet, this should be a bit of a wake-up call. The old approach of leaving systems half-maintained, delaying updates, or assuming that obscure software will somehow stay below the radar looks even more risky in a world where AI can inspect code at speed and scale.

Project Glasswing may turn out to be remembered as one of those early milestone moments, the point where the cybersecurity industry publicly acknowledged that AI is no longer just a helpful assistant for defenders. It is becoming a serious force multiplier, and one that could work for either side.

That makes this announcement both exciting and slightly chilling.

And, in true Gadget Man fashion, it is exactly the kind of development that reminds us technology is never just about shiny new tools. It is also about consequences, responsibility and how quickly the world has to adapt when the rules suddenly change.

Source

Anthropic, Project Glasswing: Securing critical software for the AI era

Why ‘123456’ Is Still Ruining Business Security

There are some things you expect to see in 2026. AI everywhere. Electric cars quietly taking over. Smart homes that know when you have run out of milk.

What you do not expect is that one of the biggest threats to company security is still someone typing 123456 into a login box.

Yet here we are.

A recent piece of research from NordPass lays it all bare. After analysing huge volumes of passwords exposed in real world data breaches, the conclusion is both fascinating and slightly terrifying. Business passwords are often no better than the ones we were being warned about twenty years ago.

The same bad habits, everywhere

Across sectors like healthcare, manufacturing, tech and finance, the patterns repeat themselves. Simple number sequences dominate. Obvious choices like 123456, 123456789 and password keep cropping up. In some cases people are even using their own email address as the password.

That last one is particularly grim. If your username is already public, you have effectively handed an attacker half the keys to the building.

What struck me most was how universal this problem is. This is not a single careless industry or a few unlucky firms. It is a human behaviour issue. Convenience beats caution every time unless systems are designed to protect us from ourselves.

Why attackers love this

From an attacker’s point of view, weak passwords are a gift. Automated tools can try millions of common combinations in seconds. If employees reuse passwords across systems, one breach can quietly unlock several more doors.

This is often how serious incidents begin. Not with Hollywood style hacking, but with someone guessing a password that should never have existed in the first place.

The uncomfortable truth for businesses

Here is the bit that matters. This is not really a technical problem. The tools to fix it have existed for years.

Strong password policies. Password managers. Multi factor authentication. Alerts for leaked credentials. None of this is exotic or expensive anymore.

What is missing is consistency and enforcement. Many organisations still rely on guidance rather than rules, or assume that staff will naturally do the right thing. History shows they will not, especially when speed and convenience are rewarded.

What actually works

From everything I have seen over the years, both professionally and personally, a few things make the biggest difference.

First, remove the burden from users. A good password manager means nobody has to remember anything clever.

Second, enforce unique passwords everywhere. No exceptions.

Third, enable multi factor authentication wherever possible, especially for email and admin accounts.

Finally, treat leaked passwords as inevitable, not hypothetical. Monitor for them and act quickly.

Still relevant, still risky

It is easy to laugh at 123456. It feels like a joke from the early days of the internet. But when that same password is still opening real company systems today, it stops being funny very quickly.

The NordPass research is a useful reminder that cybersecurity does not always fail at the cutting edge. More often, it fails at the front door.

And the front door is still wide open far too often.

From Pixels to Platinum: When AI Designed My New Hairstyle

From Pixels to Platinum: When AI Designed My New Hairstyle

There’s something oddly thrilling about letting technology take creative control. I’ve spent years testing gadgets, reviewing innovations, and exploring the limits of artificial intelligence — but this time, I let the tech get a little more personal.

A few weeks ago, I asked Midjourney — my go-to AI image generator — a simple question:
“What would The Gadget Man look like with a fresh new hairstyle?”

The result was, quite frankly, impressive. The AI produced a series of strikingly realistic portraits featuring a textured, platinum-blonde cut that looked part cyberpunk, part 21st-century rockstar. I loved it. The catch? It wasn’t real… yet.

The AI Concept

Armed with a few reference prompts and an experimental mindset, I spent an evening fine-tuning the digital version of myself. Midjourney, in its infinite wisdom, decided that bleached hair and choppy texture were the future of The Gadget Man brand.

At first, it was just a bit of fun. But the more I looked at the AI render, the more I realised — this was something I could actually pull off. So, I decided to make it happen.

Turning AI Into Reality

I booked an appointment with my stylist and brought along the AI images on my phone — full 360-degree green-screen shots of the “digital me.” It’s not every day you walk into a salon and say, “I’d like this look, please — it was designed by artificial intelligence.”

To their credit, they didn’t flinch. Instead, we broke it down into human-achievable steps:

  • The Cut: Short, faded sides with plenty of texture on top.
  • The Style: Tousled and natural, with enough lift to keep things casual.
  • The Colour: A cool, silver-white platinum tone — bold but clean.

The Result

Wait and see!!!

AI as a Creative Partner

This little experiment isn’t just about hair — it’s about what happens when AI moves from the screen into the real world. Whether it’s designing products, testing ideas, or in this case, reinventing a hairstyle, AI has become a kind of creative partner.

From Pixels to Platinum: When AI Designed My New Hairstyle
From Pixels to Platinum: When AI Designed My New Hairstyle

 

From Pixels to Platinum: When AI Designed My New Hairstyle
From Pixels to Platinum: When AI Designed My New Hairstyle

Coming soon: a behind-the-scenes video of the full transformation — from my original hairstyle to the final platinum reveal. Keep an eye on The Gadget Man socials for the big unveil.

#TheGadgetMan #AIstyle #MidjourneyToReality #TechMeetsHuman #FromPixelsToPlatinum

Apple Unveils the iPhone 16e – The Affordable Powerhouse

Apple has just dropped a brand-new addition to the iPhone 16 lineup—the iPhone 16e. This model is designed to deliver cutting-edge performance and Apple Intelligence at a more affordable price, making it a compelling choice for users looking for premium features without the premium price tag.

Apple Unveils the iPhone 16e – The Affordable Powerhouse
Apple Unveils the iPhone 16e – The Affordable Powerhouse

Design and Display

The iPhone 16e follows Apple’s signature sleek design ethos with a durable build, available in elegant matte black and white finishes. The device features a 6.1-inch Super Retina XDR OLED display, providing vibrant colours and crisp text, perfect for streaming HDR content, gaming, and everyday tasks. It also boasts IP68-rated water and dust resistance, ensuring it can handle the rigours of daily life.

Performance Boost with A18 Chip and Apple C1 Modem

Under the hood, the iPhone 16e is powered by Apple’s latest A18 chip, delivering exceptional speed, efficiency, and AI-powered enhancements. The C1 modem, Apple’s first in-house cellular modem, ensures fast and reliable 5G connectivity while also improving power efficiency, further enhancing battery life.

Speaking of battery life, Apple claims that the iPhone 16e lasts up to six hours longer than the iPhone 11 and up to twelve hours more than previous iPhone SE models, making it the best 6.1-inch iPhone in terms of battery longevity.

Camera System: A 48MP Fusion Camera with 2x Telephoto

Photography enthusiasts will love the 48MP Fusion camera system, which allows for high-resolution shots with enhanced computational photography. The integrated 2x telephoto lens provides optical-quality zoom, making it feel like having two cameras in one. Features such as Night Mode, Portrait Mode, and Smart HDR ensure stunning photos in all lighting conditions. The front-facing TrueDepth camera offers autofocus for sharper selfies and enhanced Face ID functionality.

Apple Intelligence and AI Integration

A significant highlight of the iPhone 16e is its support for Apple Intelligence. This AI-powered system introduces advanced features such as:

  • Image Cleanup Tool – Easily remove distractions from photos.
  • Genmoji – Custom emoji creation.
  • Improved Siri – More conversational and able to maintain context across multiple interactions.
  • ChatGPT Integration – Built directly into Siri and Writing Tools, allowing users to access AI-generated assistance seamlessly.

Action Button for Quick Access

The iPhone 16e features the Action Button, first introduced on the iPhone 15 Pro series. Users can customise it to launch the camera, activate Shazam, switch focus modes, or even trigger in-app functions.

Satellite Connectivity and Safety Features

Apple continues to lead in emergency communication with the inclusion of satellite-based features such as:

  • Emergency SOS – Contact emergency services when out of cellular range.
  • Roadside Assistance – Access help via satellite in case of car trouble.
  • Find My via Satellite – Share location with loved ones, even in remote areas.
  • Crash Detection – Automatically dials emergency services in the event of a severe accident.

iOS 18 and Customisation Options

The iPhone 16e runs iOS 18, introducing new personalisation options, enhanced privacy settings, and redesigned Control Centre for improved accessibility. Users can now customise their Home Screen with dark or tinted app icons and arrange widgets more freely.

Pricing and Availability

Apple has positioned the iPhone 16e as a budget-friendly yet powerful device, starting at £599 in the UK. Pre-orders begin on February 21, with availability set for February 28. The device will be available in 128GB, 256GB, and 512GB storage options.

Final Thoughts

The iPhone 16e delivers an impressive mix of premium features and affordability, making it a strong contender for those looking for top-tier Apple performance without breaking the bank. With the A18 chip, improved battery life, AI-driven features, and a robust camera system, the iPhone 16e is set to be a popular choice in 2025. Stay tuned for a hands-on review soon!

The UK’s AI Opportunities Action Plan: A Bold Vision for the Future

Artificial Intelligence is not just the technology of the future—it’s the force shaping our present. Recognising this, the UK government has unveiled the AI Opportunities Action Plan, an ambitious roadmap designed to cement Britain’s position as a global AI superpower.

Prime Minister Keir Starmer, in his foreword to the plan, described AI as “the defining opportunity of our generation”, highlighting its transformative potential across public services, healthcare, education, and beyond. The plan outlines 50 recommendations aimed at harnessing AI’s potential to drive innovation, improve lives, and ensure Britain leads in this fiercely competitive sector.


A Vision Rooted in Innovation and Leadership

The Action Plan reflects the UK’s rich history of innovation—from Turing to Lovelace—and leverages the country’s strengths in world-class universities, pioneering tech companies, and a commitment to ethical AI. The government’s mission is clear: be a creator, not just a consumer, of AI breakthroughs.

Key priorities include:

  • Building cutting-edge AI infrastructure.
  • Creating AI Growth Zones to attract investment and foster innovation.
  • Supporting AI adoption in public and private sectors.
  • Addressing the growing demand for AI skills and talent.
  • Strengthening regulations to build trust and promote innovation.
The UK's AI Opportunities Action Plan: A Bold Vision for the Future
The UK’s AI Opportunities Action Plan: A Bold Vision for the Future

Key Highlights from the AI Opportunities Action Plan

  1. Supercomputing for AI:
    The UK will expand its sovereign compute capacity by 20x by 2030, starting with the creation of a state-of-the-art supercomputing facility. AI researchers and SMEs will benefit from powerful resources like Isambard AI in Bristol and Dawn in Cambridge, helping drive economic growth through innovation.
  2. AI Growth Zones (AIGZs):
    The government will pilot AI Growth Zones at sites like Culham, home to the UK Atomic Energy Authority, which will feature one of the UK’s largest AI data centres. These zones aim to accelerate AI infrastructure development while creating jobs and boosting local economies.
  3. Energy for AI:
    With AI’s energy demands growing, the government will establish an AI Energy Council to explore clean, renewable energy solutions, including the use of Small Modular Reactors (SMRs), ensuring sustainable growth in the sector.
  4. The National Data Library:
    Public sector data will be unlocked securely and ethically to drive AI research. The National Data Library will give researchers access to high-value datasets, ensuring that AI advancements directly benefit society.
  5. AI Skills Pipeline:
    To address the skills gap, the government will launch initiatives like an AI scholarship programme and expand pathways into AI education and careers, ensuring diversity in the talent pool.
  6. Safe and Trusted AI:
    By strengthening institutions like the AI Safety Institute, the UK will ensure that advanced AI models are safe, reliable, and aligned with societal goals.
  7. Public Sector Transformation:
    AI pilots, like the Caddy project, will revolutionise public services by automating tasks, improving efficiency, and giving staff more time for meaningful face-to-face interactions.

Why This Matters

AI has the potential to transform every aspect of our society, from reducing NHS waiting lists to revolutionising education and speeding up planning applications. The UK government’s proactive stance reflects the importance of staying ahead in the global AI race.

“Some countries will make AI breakthroughs and export them to the world. Others will be left to import them. This plan ensures Britain is the former,” said the Prime Minister.


Next Steps

The government is already taking action to implement the recommendations. From scaling up compute resources to introducing sector-specific AI champions, the Action Plan is geared to deliver tangible results. By Spring 2025, further details will emerge, including a Compute Strategy, additional AI Growth Zones, and updates on AI regulation.


A Bold Plan for a Transformative Future

The AI Opportunities Action Plan is more than a vision—it’s a blueprint for securing the UK’s place as a global leader in AI innovation. Whether it’s creating jobs, improving public services, or fostering groundbreaking discoveries, the plan is set to shape a future where AI works for everyone.

What do you think of the UK’s bold AI ambitions? Will this plan keep Britain at the forefront of global innovation? Share your thoughts in the comments below!

Tech Meets Tongues: An AI-Powered Multilingual Journey on The Gadget Man

Hello, tech enthusiasts and language lovers! Today, I’m thrilled to unveil something truly groundbreaking at The Gadget Man – a fusion of cutting-edge AI technology with the art of language translation.

This isn’t just any ordinary video. A few years back, I recorded a clip that has now been transformed into a multilingual marvel, thanks to the brilliant minds at San Francisco-based AI company Sync-labs. My voice, originally in English, has been meticulously analysed and cloned. The audio was transcribed and then translated into an array of languages, and here’s the really clever bit – the translated audio has been engineered to sound exactly like me, but in each respective language.

From Swedish to Urdu, each version maintains a natural tone and inflection unique to its language. The result? An impressively accurate lip-synced video of me speaking to the camera in English, Swedish, Dutch, French, Japanese, German, Ukrainian, Italian, Welsh, Urdu, Arabic, Spanish, Thai, Turkish, and, of course, a special digital voice rendition.

The goal here is not just to showcase the wonders of AI but to connect with our diverse audience. We’re breaking down language barriers while keeping the essence of communication – the personal touch.

Now, here’s where you come in. I invite you, our valued visitors, to be part of this exciting journey. Watch the video and let us know what you think of each translation. How well does the AI capture the nuances of each language? Does it sound natural to you? Your feedback is invaluable, as it helps us understand the effectiveness of this technology from a real-world perspective.

Rate each translation and share your thoughts in the comments below. Whether you’re a native speaker or a language enthusiast, your insights will contribute to a broader understanding of AI’s role in breaking down linguistic barriers.

As we embrace this new era of technological advancements, it’s crucial to remember that at the heart of all innovation lies communication and connection. So, let’s explore together the fascinating intersection of technology and language.

Here’s me telling a joke translated to Chinese

and the same joke in German

Stay tuned for more tech explorations and insights right here on The Gadget Man.

I Automated Malicious IP Blocking with the Help of AI

Introduction: Navigating the complexities of cybersecurity requires a blend of alertness and innovation. In my latest project, I embraced this ethos by deploying AI, particularly ChatGPT-4, to craft a Python script that automates the blocking of malicious IP addresses. (Moreover, the ‘tags‘ you see in this post are the product of a WordPress plugin, also primarily developed with insights from ChatGPT-4 too!)

The Challenge: With brute force attacks becoming increasingly common, developing a swift and automated response mechanism was crucial. My aim was to create a system capable of promptly identifying and neutralizing threats from malicious IP addresses.

AI as a Collaborative Partner: ChatGPT-4’s advanced language understanding capabilities played a pivotal role in this project, assisting both in scripting and in WordPress plugin development.

  1. Script Development: ChatGPT-4 provided step-by-step guidance in crafting a Python script to parse alert emails and extract IP addresses. Its ability to generate code snippets and troubleshoot issues was invaluable.
  2. Integrating Security Tools: The script was integrated seamlessly with cPHulk and CSF, using Python’s subprocess module. This integration, suggested by ChatGPT-4, was critical for the effective blocking of suspicious IPs.
  3. Handling Sensitive Data Securely: In dealing with login credentials, ChatGPT-4 recommended secure practices, such as using environment variables, which were crucial for maintaining the script’s integrity.
  4. Error Handling and Efficient Logging: Robust error handling and comprehensive logging, as advised by ChatGPT-4, ensured the system’s reliability and maintainability.
  5. Automating with Cron Jobs: The script’s automation was achieved through a cron job setup, a process in which ChatGPT-4 played an advisory role.
  6. WordPress Plugin for Tag Generation: Beyond the script, ChatGPT-4’s assistance extended to developing a WordPress plugin for generating tags for my blog posts. This plugin analyzes the content and contextually generates relevant tags, showcasing the AI’s versatility.

The Outcome: The result is a robust, AI-enhanced cybersecurity mechanism, complemented by an AI-driven tagging system for my blog. This project exemplifies the synergy between human expertise and AI in solving complex technical challenges.

Conclusion: This venture into AI-assisted development has not only fortified my server’s security but also revolutionised how I manage content on my blog. It stands as a testament to the power and potential of AI in cybersecurity and beyond.

Future Prospects: This successful collaboration with AI opens new horizons for future projects. I am excited to delve deeper into the integration of AI in various aspects of problem-solving, especially in technology and cybersecurity.

AI Transforms Blogging Efficiency (November 2023)

Using AI to Write Blog Posts

In the rapidly evolving digital landscape, artificial intelligence (AI) is no longer just a buzzword but a practical tool revolutionizing various industries, including content creation. Blogging, an integral part of digital marketing and personal expression, is one area where AI’s impact is notably significant. This post delves into how AI is transforming the way we write blog posts, its advantages, potential challenges, and tips for effectively using AI in blogging.

The Emergence of AI in Blogging

AI in blogging isn’t just about automated content generation; it’s about enhancing the writing process. Tools like OpenAI’s GPT-4 offer advanced language models that can draft text, suggest ideas, and even refine content tone. The integration of AI in blogging platforms simplifies tasks such as keyword optimization, grammar checks, and style improvements.

Key Benefits of Using AI for Blogging

  1. Efficiency and Speed: AI can generate drafts quickly, helping bloggers produce content more frequently.
  2. SEO Enhancement: AI tools can optimize content for search engines, improving blog visibility and reach.
  3. Consistency in Quality: AI maintains a consistent quality and tone, crucial for brand messaging.
  4. Idea Generation: It can suggest topics based on trends and user interests, keeping the content relevant and engaging.
  5. Personalization: AI can tailor content to different audience segments, enhancing reader engagement.

Challenges and Considerations

While AI brings numerous benefits, it also poses challenges:

  • Originality: There’s a risk of producing generic content. Balancing AI assistance with personal insight is key.
  • Over-reliance: Sole reliance on AI can diminish a writer’s skill and creativity.
  • Ethical Concerns: Issues like content authenticity and plagiarism need careful consideration.
AI Transforms Blogging Efficiency (November 2023)
AI Transforms Blogging Efficiency (November 2023)

Tips for Using AI in Blog Writing

  1. Start with a Clear Goal: Define what you want from the AI tool – be it generating ideas, creating drafts, or editing.
  2. Blend AI with Personal Touch: Use AI for the heavy lifting, but add your insights and experiences to make the content unique.
  3. Regularly Update AI Parameters: Keep the AI tool aligned with your evolving content strategy and audience preferences.
  4. Monitor Performance: Use analytics to understand how AI-generated content performs and refine your approach accordingly.
  5. Stay Informed: Keep up-to-date with AI advancements to leverage new features and capabilities.

Conclusion

AI in blogging is a powerful tool when used wisely. It can enhance the quality and efficiency of content creation while providing valuable insights into audience preferences. However, the heart of a great blog post still lies in the human touch – the experiences, insights, and personal stories that AI cannot replicate. Balancing AI capabilities with human creativity is the key to successful blogging in the AI era.

In embracing AI, bloggers are not replaced but empowered, equipped with tools to create more impactful, relevant, and engaging content. The future of blogging with AI looks promising, offering endless possibilities for content creators worldwide.

This is an update of the original blog post Using AI to Write Blog Posts and using newer versions of ChatGPT (version 4)  and Midjourney (version 5.2)

This post was written by ChatGPT 4 (AI)
Tags produced by a plugin written by ChatGPT4 which utilises the GPT3.5 Turbo API
Images created using Midjourney (AI)
All cut and pasted by Matt Porter The Gadget Man (Human)

Using AI to write blog posts

In today’s fast-paced digital world, it’s no surprise that many businesses and individuals are turning to artificial intelligence (AI) to help them with various tasks, including writing blog posts. AI technology has come a long way in recent years, and it has the potential to help bloggers save time and improve the quality of their content.

Using AI to write blog posts - created by Midjourney
Using AI to write blog posts – created by Midjourney

One of the biggest advantages of using AI to write blog posts is that it can help save time. Rather than spending hours researching, outlining, writing, and editing a blog post, you can use AI to quickly generate high-quality content. This can be especially useful if you’re crunched for time or if you need to produce a large volume of content on a regular basis.

Another advantage of using AI to write blog posts is that it can help improve the quality of your content. AI technology can analyze your existing content and use that information to generate new posts that are similar in style and tone. This can be especially useful if you want to maintain a consistent voice and tone throughout your blog. Additionally, AI can use natural language processing to ensure that your content is well-written and easy to read.

Of course, using AI to write blog posts is not without its challenges. One of the biggest challenges is that AI technology is not yet capable of fully replicating human creativity and intuition. As a result, your AI-generated content may not always be as engaging or original as content that is written by a human. Additionally, AI technology is still in its early stages, and it may not always produce error-free content.

Despite these challenges, using AI to write blog posts can be a valuable tool for bloggers who are looking to save time and improve the quality of their content. As AI technology continues to advance, it’s likely that we’ll see even more sophisticated tools that can help bloggers generate high-quality content quickly and easily. In the meantime, it’s worth considering using AI to write blog posts if you’re looking for ways to streamline your content creation process and produce high-quality content on a regular basis.

This post was written by ChatGPT (AI)
Tags produced by ChatGPT (AI)
Images created using Midjourney (AI)
All pasted by Matt Porter The Gadget Man (Human)

The Impact of Tech on the Forex Industry

There’s no doubt that the forex market has enjoyed exponential growth in the digital age, with the total daily trading volumes having increased from $5.1 trillion to $6.6 trillion in the three years between 2016 and 2019.

This growth has a great deal to do with technological advancement, as new innovations have begun to impact on forex trading and make the market more accessible to part-time and novice investors.

In this post, we’ll look back at how forex used to be traded, while appraising the impact of technology on the wider FX industry. 

How Was Forex Traded in the Past?

Interestingly, trading forex is as old as the history of civilization, with people in ancient times known to exchange goods and services for an agreed price (which would often be represented by raw materials or food).

The issue here was assigning and establishing value fairly, so future generations of civilians resolved to develop commodity money and, over time, metal coins and paper currencies with predetermined stores of value.

This paved the way for the international forex market that we know and love today while making it far easier to exchange goods between nations. It was in the 17th century that the first ever forex market was established in Amsterdam, with this further facilitating global market exchanges and creating opportunities for investors.

Prior to 1944, the value of international currencies was pegged to gold, but this changed with the advent of the ‘Bretton Wood System’ immediately after the Second World War.

This was forged to create a stable environment and allow for increased international trade after the war, while it underpinned an adjustable pegged foreign exchange market.

With this system, major currencies chose to peg their value to the US Dollar, but this failed in the early 1970s when there was no longer enough gold to back the amount of greenback in circulation.

How has Technology Changed Forex Trading?

Since the 70s, the market has evolved to be governed by a free-floating exchange rate, where the price of specific currency pairs is influenced by an array of factors including geopolitical conflicts and the wider macroeconomic climate.

From a technological perspective, one of the biggest changes occurred with the advent of online brokerage sites.

Such entities replaced the traditional middleman and corporeal trading floors across the globe, creating an online portal and making a host of markets more accessible to aspiring traders.

As a result, investors can now engage in forex and indices trading through a single online interface, enabling real-time market analysis and the execution of live orders.

More recently, we’ve seen the emergence of automated and AI-influenced trading online. Ideal for scalpers and day traders, automation has helped individuals to optimise the number of orders that they execute in real-time, while AI is improving the analysis of even unstructured datasets and driving more informed trades in the process.

AI has also improved the quality and functionality of so-called “forex robots”, helping to eliminate human error and increase profits over an extended period of time.

 

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