Prediction markets are being transformed by autonomous AI agents, with machines now playing a major role in trading outcomes on platforms like Polymarket.
David Minarsch, CEO of Valory AG, says AI agents built on the Olas protocol are enabling retail users to compete in automated markets. The flagship agent, Polystrat, trades continuously on Polymarket, executing over 4,200 trades within a month of launch and achieving single-trade returns up to 376%.
Over 30% of Polymarket wallets now use AI agents, according to LayerHub. While fewer than 13% of human traders consistently profit, more than 37% of Polystrat agents show positive P&L.
AI agents excel in the 'long tail' of niche prediction markets-areas humans often ignore. These include localized events or low-volume bets where machines can analyze hundreds of data points simultaneously.
Minarsch envisions AI not as a replacement but as a collaborator, augmenting human decision-making with proprietary data integration. The goal: a user-owned agent economy where individuals retain control and benefit from AI-generated value.
Security advances, such as MoonPay’s Ledger-secured agents, reinforce this model by ensuring private keys remain offline during AI-initiated transactions.
Regulatory guardrails remain critical, especially for sensitive markets. But AI itself may help detect manipulation, helping shut down problematic contracts before they spread harm.