Machine Learning, Human Investing
The future, by the time it arrives, is seldom as compelling as when first envisioned.
Artificial intelligence (AI), especially as a tool for investment, is undergoing extremely swift technological advancement, even as some would-be adopters are hesitant. Part of that reticence is due to cybersecurity concerns, and uncertainty about whether autonomous systems create data risk greater than that of current systems. Likewise, a fund generating alpha on a consistent basis sounds good to clients, but if it is AI-based, it will likely prompt some investor discomfort about the “black box” nature of its decision making.