Arbitrage opportunities in prediction markets often exist for seconds, giving AI-driven systems a structural advantage over humans.
How AI agents can reshape arbitrage in prediction markets
AI-driven systems exploit microsecond-scale arbitrage opportunities in prediction markets, creating structural advantages over human traders. This vulnerability disproportionately affects financial platforms and trading algorithms relying on prediction market APIs, enabling automated exploitation of pricing inefficiencies. Immediate mitigation is required to prevent systemic financial risks and unfair market advantages.