How do you think relying on Artificial Intelligence in effective fund management of client’s portfolio will benefit or will it still be considered as a tool which cannot think beyond human intelligence? It is a parody of sort as professional fund managers cannot have enough of all the stress from the markets that they have a humanoid competing with them! Well, times are changing, robotics is not just limited to science fictions and matter of being metal pieces in art Galleries, they too have evolved from a mere sketch in pen and paper to perform activities which a human can do and in a much better way.
The Invisible One
Assisting fund managers in their operations, placing funds of clients in the top performing financial products, these nonphysical forms of automated software are often termed as the invisible kinds who are out there to transform the operation of a fund house more efficiently and effectively. Now most of us are aware what the Black rock did in replacing AI doing the jobs of the Fund managers, well it is a win some lose some in this field to test the technology. They lost out in a bad trade due to an incorrect algorithm and went bankrupt.
Now should we rely on the AI?
It is not about the win of the human mind over technology, it is just about being cautious not to rely too much on automated biases, which is nothing but too much dependence on technology and its outcome, increases the acceptance of the outcomes. Similar is the experience when it comes to airline industry where there is a lot of experimenting with AI, that pilots avoid major accident related precautions as they are too busy in relying on how an instructionless flight cockpit work, which has resulted in huge loss of human life which cannot be ever, ever replaced.
The dependence on automated systems makes one believe that this is the ultimate step which cannot go wrong and all is well. With Artificial Intelligence Fund managers coming at the behest, they pose a new form of risk both for the investors, as well as the fund houses that are addicted to the automation bias. Though the AI can pick the right kind of investment product they can never match the human mind which has this intuitive capacity to study the entire stock markets within a couple of minutes and save the client from making an incorrect decision.