.jpg){kind=avatar}
.jpg){kind=avatar}
In the FT, a former Morgan Stanley and UBS research head argues that for new technology to be trusted, it must include a human element. While AI excels in financial predictions, clients value human intuition, making a tech-personal touch blend essential.
We can find some clues in the work of data scientist César Hidalgo on how humans judge machines. When we use a program, we zero in on the performance of the tool. Thus, any prediction error by that program will make our financial professional lose confidence in it. And in most of the cases, it does not matter if the algorithm is on average better than the human. Our financial adviser will let her intuition and experience take over. Hidalgo’s research shows that we behave differently when judging human advice. We look beyond performance, by factoring in the intentions of the person giving us advice. When we engage with a private banker or trust our money to a fund manager, we will assume an alignment with our purposes, especially if the contract has performance-incentive fees.
unknownx500
