The Limits of AI in Investing:
The Limits of AI in Investing:
Blog Article
Human Intelligence Still Wins in Finance’s Final Frontier
In an age of algorithmic promises, a bold voice in Manila issues a sharp reminder that money still bends to human instinct—judgment, ethics, and gut.
“AI won’t make you rich. But it will amplify your errors at scale.”
That was Joseph Plazo’s blistering opener at his jam-packed keynote at the University of the Philippines’ amphitheater—and it drew audible gasps from the audience.
In front of him were Asia’s brightest young minds—portfolio hopefuls, quant researchers, and finance scholars from leading institutions across Asia.
Plazo—venture strategist, AI architect, and CEO of Plazo Sullivan Roche—delivered a dose of realism on what AI delivers—and fails to grasp in actual investing.
And what it still lacks, he stressed, is understand story or nuance.
### Beyond the Hype: Investing in the Age of Overpromised Intelligence
Dressed in a razor-sharp outfit, Plazo paced the stage like a courtroom litigator.
He began the teardown with a short video montage—YouTubers hawking AI bots. Then he paused.
“I created the model they ripped off,” he said, matter-of-fact.
Laughter broke out—but that wasn’t the punchline.
The message? Most models replay what already happened.
“You can’t outsource principles. AI doesn’t believe in a trade—it mirrors what already happened.”
“When war unexpectedly explodes, when Powell coughs during a Fed announcement, when a bank tumbles before markets open—AI doesn’t notice. We do.”
### The Students Who Challenged Him—and Got Schooled
The jaw-dropper? A live AI-vs-human trading duel.
A student from NUS presented an AI-backed trade on the Nikkei—equipped with indicators, trends, and sentiment metrics.
Plazo nodded thoughtfully. Then said:
“Looks clean, but what about Japan’s unannounced intervention?. Your AI doesn’t see the invisible. It reads tweets.”
The audience shifted. The student shrugged. 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. get more info Infinite processing won’t fix human incentives. Train an AI on fear, and it’ll become a chaos machine.”
### The Three Myths Plazo Shattered in 45 Minutes
1. **“AI Will Replace Portfolio Managers.”**
Not quite. AI assists—it backtests, filters, calculates—but it doesn’t replace gut instinct.
2. **“AI Understands Fundamentals.”**
Wrong. AI reads tables, but fails at narrative causality. It may model interest rates, but it can’t predict a Strait of Hormuz conflict.
3. **“AI Makes You Smarter.”**
Actually, it might weaken your edge. “AI won’t kill you—but your laziness might,” Plazo warned. “It’s in forgetting how to think without it.”
### Why Asia Paid Close Attention
This wasn’t just another keynote.
Asia’s universities are now home to finance’s future titans. They’re asking: more code, or more conscience?
Plazo’s call: “Harness tech, but stay human.”
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 against innovation.
He’s building models that read psychology as well as numbers—that blend intuition cues with algorithmic structure.
His stance? “Co-pilot AI. Don’t worship it.”
“AI doesn’t need more data. It needs discernment. And that still belongs to us.”
The standing ovation was thunderous. And the ripple is still moving in Asia’s halls of learning.
In a world drunk on AI hype, Plazo gave the crowd what AI can’t: humanity.