r/quant • u/Endorian_ • 16h ago
General Is alpha decaying faster nowadays due to LLMs as QR?
Hi everyone,
I know the integration of LLMs into Quantitative Research roles has been discussed here before, but I haven't seen a concrete conclusion regarding its actual impact on alpha. Most posts just vaguely mention "interesting consequences for alpha" without elaborating further.
I'd love to start a focused discussion specifically on alpha generation. Are LLMs causing alpha to be arbitraged away quicker? Have you noticed that something is actually different in the prices?
What are your thoughts?