Hedge-fund manager Brian Kelly keeps his staff working around the clock, yet his payroll expenses are a fraction of previous levels. This is because Kelly, who previously operated a cryptocurrency hedge fund, established his new trading firm, Bracket22, to be driven entirely by agentic artificial intelligence.
“I previously had about seven or eight employees worldwide, many based in New York,” Kelly told CNBC. “Between their salaries, compute costs, healthcare, and other expenses, my annual payroll exceeded millions of dollars.” Factoring in office space and bonuses, Kelly estimated his total labor-related costs before implementing AI were roughly $5 million per year. “Now, using AI, I spend around $30,000 to $40,000 annually, total. That covers every AI agent, all compute, and everything needed to replicate a hedge fund entirely with AI,” he explained.
Bracket22 illustrates a growing trend on Wall Street as firms explore AI’s benefits and limitations in finance. JPMorgan Chase CEO Jamie Dimon stated in February that the technology is already reshaping his workforce, with “huge redeployment” plans for employees. The bank intends to launch AI agents later this year capable of working autonomously for hours. Morgan Stanley is also leveraging AI for certain tasks. However, some hesitation remains; a Goldman Sachs partner recently cautioned against allowing AI to diminish bankers’ reasoning abilities.
Kelly, a former “Fast Money” trader, closed his cryptocurrency hedge fund in early 2025 and began testing AI applications later that year. Bracket22 invests only Kelly’s own capital, trading cryptocurrencies, stocks, and commodities.
Kelly demonstrated several AI agents to CNBC, each serving a distinct role. A bot named “Steffi” manages technical analysis, “Desmond” handles quantitative strategies, and “Houston” acts as mission control, integrating all components. “I designed each agent as a specialist in its field,” Kelly stated. “I wanted to isolate them to obtain an unbiased perspective on my activities.” He added, “I then apply my human judgment and insight to make the final decision.”
Kelly estimates he is “at least 10 times more productive” with his agents. While he replaced his staff with AI, he believes the true opportunity lies in augmenting human workforces. “If you have a staff of 100, AI gives you the equivalent of a thousand,” he said. “It is not simply about replacing everyone with AI agents; you can make your current employees at least 10 times, if not more, more productive.”