The Limits of AI in Investing:
The Limits of AI in Investing:
Blog Article
Human Intelligence Still Wins in Finance’s Final Frontier
While tech evangelists tout AI supremacy, a defiant voice in Manila reminds us that judgment still beats the algorithm—intuition, discipline, and story.
“AI isn’t your golden ticket. But it will make your mistakes faster.”
That was the provocative opener at his standing-room-only keynote at the University of the Philippines’ academic hall—and it landed like a thunderclap.
Before him were hundreds of future fund managers and technologists—portfolio hopefuls, quant researchers, and finance scholars from Asia’s top universities.
Plazo—a pioneer in intelligent trading systems—unveiled a truth-filled lecture on what AI offers—and where it falls short in live-market investing.
And what it misses, he stressed, is replace your instinct.
### Beyond the Hype: Investing in the Age of Overpromised Intelligence
Dressed in a tailored navy suit, Plazo moved like a cross between preacher and prosecutor.
He opened fire with a short video montage—social media influencers promising 90% win rates. Then he paused.
“I built the system they copied,” he said, dryly.
Laughter followed—but this wasn’t ego.
The message? AI is retrospective, not prophetic.
“You can’t outsource guts. AI doesn’t carry skin in a trade—it reacts what already happened.”
“When war breaks out, when Powell frowns during a Fed announcement, when a bank goes under—AI stays blind. Humans do.”
### The Students Who Challenged Him—and Got Schooled
The highlight of the talk? A battle of brains and bots.
A student from NUS presented an AI-backed trade on the Nikkei—technically solid, sentiment-scanned, and data-rich.
Plazo studied it. Then said:
“Good. But you missed the BOJ’s stealth bond buy this morning. Your AI doesn’t read motive. It consumes noise.”
The audience leaned in. The student grinned. Then: applause.
Another moment: A robotics PhD from Kyoto asked if quantum computing would render all current models useless.
Plazo’s answer? “Yes—and no. Faster chips won’t purge panic from data. Train an AI on fear, and it’ll become hysteria with processing power.”
### The Three Myths Plazo Shattered in 45 Minutes
1. **“AI Will Replace Portfolio Managers.”**
Nope. get more info AI supports—it crunches, optimizes, and speeds up decisions—but it doesn’t see through fog-of-war events.
2. **“AI Understands Fundamentals.”**
Wrong. AI interprets numbers, but can’t see through diplomatic posturing. It may model interest rates, but it doesn’t hear whispers in Davos.
3. **“AI Makes You Smarter.”**
Actually, it might make you duller. “The danger isn’t in trusting AI,” Plazo warned. “It’s losing your grip on human reason.”
### Why Asia Paid Close Attention
This wasn’t your average AI hype fest.
Asia’s universities are now home to finance’s future titans. They’re asking: more code, or more conscience?
Plazo’s call: “Do both—but lead with the mind.”
In closed-door chats at Ateneo and a roundtable at AIM, professors wrestled with what they called a turning point speech.
One finance dean privately told Forbes, “This talk shifts the ethical foundation. Not magic—mirror.”
### The Future AI Can Build
Despite the warnings, Plazo isn’t a luddite.
He’s building multi-signal trading engines—that blend intuition cues with algorithmic structure.
His stance? “Let AI drive—but you steer. Don’t go on autopilot.”
“AI doesn’t need more data. It needs discernment. And that still belongs to us.”
The crowd rose as one. And his message is still echoing in Asia’s halls of learning.
In a world drunk on AI hype, Plazo gave the crowd what AI can’t: humanity.