Prediction markets have always rewarded people who can process information faster than everyone else. Now, the fastest traders are being rewarded as the markets fill up with casuals.
A growing number of traders are building sophisticated systems powered by artificial intelligence, custom software and even specialized hardware in an effort to gain an edge on platforms like Kalshi and Polymarket.
As the industry continues to expand, what was once viewed as a hobby or side hustle is beginning to resemble a professional trading business and if you don’t have an edge, you’re nearly guaranteed to lose.
Contracts for Everything
Prediction markets have offered contracts on nearly everything and this is a big reason why pros are gaining an edge. Between the leading prediction market platforms, traders now have access to well over 100,000 active markets covering politics, economics, sports, entertainment and global events.
No individual can realistically monitor that much information manually, pushing many serious participants toward AI powered tools that usually buy and sell at the correct time. Traders will these systems have dove in full time.
One example highlighted by CNBC is 26-year-old Logan Sudeith, who reportedly earned $250,000 during a single month of trading. During the Super Bowl, he purchased a television antenna to receive broadcasts with lower latency than internet streaming services. Those few extra seconds allowed him to react more quickly in markets tied to commercials and specific events happening during the game.
That kind of preparation shows how competitive prediction markets have become and if you don’t have tools, you can’t win. The other way people have been more successful is through AI.
Artificial intelligence is Taking Over
Trader Kenneth Deneau reportedly relies on Anthropic's Claude AI model to sift through newsletters, Discord communities and other sources looking for useful information before it becomes widely known. Earlier this year, he even searched court records while researching a market tied to whether President Donald Trump would dismiss former Attorney General Pam Bondi, demonstrating how prediction market research increasingly extends beyond financial news.
Others are removing themselves from the trading process almost entirely.
Atlanta based data engineer Steve Farmer created an AI bot that automatically trades economic event contracts on Kalshi throughout the day. According to Farmer, the system has achieved roughly a 70 percent win rate, although he cautioned that performance may not hold up over the long run as markets evolve.
Michael Boss has taken a similar approach, developing software capable of placing trades across multiple markets simultaneously while turning many discretionary decisions into automated processes. Instead of manually clicking through contracts, algorithms are increasingly making those decisions in real time.
The platforms themselves are also embracing more advanced trading technology.
Recently, Kalshi introduced its Pro trading terminal, designed to give users faster execution and more detailed market data. Meanwhile, Kairos, a trading platform backed by Andreessen Horowitz, allows users to monitor and trade contracts across multiple exchanges, including both Kalshi and Polymarket. It combines live pricing, headlines and market movement into one interface.
These developments suggest prediction markets are entering a new phase as pros and institutions flock to the market.
The Trade Handle Prediction Markets Take
Prediction markets have evolved as they’re now moving toward more professionals. There are still casual traders in the market, but it’s getting harder to survive.
The result is a market that increasingly resembles professional financial trading rather than casual entertainment.
As prediction markets continue attracting more users, institutional attention is only going to cause the industry to evolve.
The prediction market boom is no longer just about forecasting the future. It's becoming a competition over who can build the smartest system to get there first.