Thanks for the article Andrew. This is re: PS section about AI taking over investments eventually. Whilst the tool / technology is definitely going to or rather already has percolated into the work flows of most investors, professional or individual - I am rather sanguine about the future as far as AI is concerned.
Thanks for the article Andrew. This is re: PS section about AI taking over investments eventually. Whilst the tool / technology is definitely going to or rather already has percolated into the work flows of most investors, professional or individual - I am rather sanguine about the future as far as AI is concerned.
Firstly, as you have mentioned above, AI will likely be used in conjunction with humans so as to achieve a man-machine interface which will likely outperform either working in isolation. Second, assuming that AI takes over completely, one would need to be pragmatic to the fact that AI is and will likely be in the future developed and maintained by humans - each with their own biases, flaws, strengths and weaknesses. Now assuming we reach a stage where AI develops enough to become self-correcting - as far as markets are concerned, even the self correcting features are going to be written by humans, or at least the code will be written by AI developed by humans.
Thence, the key I think here is going to be the genesis of every technological cycle. Having engaged in a similar debate a few years ago with professional money managers, I believe having a fear of being replaced by machines is actually a positive sign, as it is an indicator of people worrying about their professional abilities to a healthy level (the same paranoia can be seen in almost every other industry - including programming). My take is that fundamental investing with a high touch (human touch i.e. ;) hehe ) is here to stay for the long run irrespective of developments otherwise. Will the speed of the markets and evolution increase? Yes, but then markets are inefficient and evolution not always perfect therefore, opportunities will always be aplenty!!
Thanks again for your regular notes and happy investing!!
Thanks for the article Andrew. This is re: PS section about AI taking over investments eventually. Whilst the tool / technology is definitely going to or rather already has percolated into the work flows of most investors, professional or individual - I am rather sanguine about the future as far as AI is concerned.
Firstly, as you have mentioned above, AI will likely be used in conjunction with humans so as to achieve a man-machine interface which will likely outperform either working in isolation. Second, assuming that AI takes over completely, one would need to be pragmatic to the fact that AI is and will likely be in the future developed and maintained by humans - each with their own biases, flaws, strengths and weaknesses. Now assuming we reach a stage where AI develops enough to become self-correcting - as far as markets are concerned, even the self correcting features are going to be written by humans, or at least the code will be written by AI developed by humans.
Thence, the key I think here is going to be the genesis of every technological cycle. Having engaged in a similar debate a few years ago with professional money managers, I believe having a fear of being replaced by machines is actually a positive sign, as it is an indicator of people worrying about their professional abilities to a healthy level (the same paranoia can be seen in almost every other industry - including programming). My take is that fundamental investing with a high touch (human touch i.e. ;) hehe ) is here to stay for the long run irrespective of developments otherwise. Will the speed of the markets and evolution increase? Yes, but then markets are inefficient and evolution not always perfect therefore, opportunities will always be aplenty!!
Thanks again for your regular notes and happy investing!!
Warm Regards,
Sanket Karve