AI Trading Bots Exploit Prediction Market Inefficiencies for Retail Trader Profits

Artificial intelligence is empowering retail traders to identify and capitalize on pricing discrepancies, known as 'glitches', in prediction markets. These AI-driven tools analyze vast amounts of market data to spot mispriced contracts on platforms like Polymarket, allowing individual traders to execute arbitrage strategies previously dominated by institutional players. By automating the detection of these inefficiencies, AI levels the playing field, enabling savvy traders to generate returns from short-term market imbalances. This trend highlights the growing sophistication of retail trading tools and the evolving landscape of decentralized prediction markets, where technology uncovers new profit opportunities.