Artificial Intelligence isn't just smart machines as we have seen in the Terminator and Matrix. AI is quickly becoming THE technology for handling the scattered and growing amount of data. Some hedge funds and other large financial institutions forecast that AI may replace human fund managers, providing even better results than todays algo-trading tech. But as with all disruptive tech, speculators arise and feel human creativity will never be replaced. If future investment managers can find a way to work together, in sync, with AI tech, this may lead to the unraveling of data like never before. Understanding how human and cultural behaviors do truly affect and manage markets.
“The challenge facing the investment world is that the human mind has not become any better than it was 100 years ago, and it’s very hard for someone using traditional methods to juggle all the information of the global economy in their head,” David Siegel, co-head of Two Sigma, one of the leading computer-powered hedge funds, said at a conference last year. “Eventually the time will come that no human investment manager will be able to beat the computer.” Or, as Agent Smith put it more succinctly in The Matrix: “Never send a human to do a machine’s job.”