First of all sophisticated AI and related technologies have been used by hedge funds for decades. More recently this has been known as "the machine" as so much short term market trading is done by algorithms.
The biggest positive impact it will probably have is in analyzing individual portfolios and financial goals and generating useful advice (augmenting or even replacing some financial advisor work).
The negative impact will be that it will be relied upon too much by naive investors. AI is really just statistical machine learning models which are trained on past events. You have garbage-in/garbage-out risks, as well as relying too much on past behavior predicting future returns.
The biggest positive impact it will probably have is in analyzing individual portfolios and financial goals and generating useful advice (augmenting or even replacing some financial advisor work).
The negative impact will be that it will be relied upon too much by naive investors. AI is really just statistical machine learning models which are trained on past events. You have garbage-in/garbage-out risks, as well as relying too much on past behavior predicting future returns.
Statistics: Posted by bstewartny — Wed Jan 31, 2024 10:38 am — Replies 93 — Views 6146