The Limits of AI in Investing:
The Limits of AI in Investing:
Blog Article
Human Intelligence Still Wins in Finance’s Final Frontier
As machines increasingly shape markets, a defiant voice in the Philippines’ capital reminds us what money still listens to—intuition, discipline, and story.
“Artificial intelligence won’t hand you fortune. But it will accelerate your losses.”
That was Joseph Plazo’s unapologetic opener at his overflowing 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—rising economists, AI researchers, and budding asset managers from leading institutions across Asia.
Plazo—CEO of a firm at the intersection of AI and capital—delivered a dose of realism on what AI delivers—and fails to grasp in real-world investing.
And what it still lacks, he stressed, is think like a human.
### Beyond the Hype: Investing in the Age of Overpromised Intelligence
Dressed in a bespoke ensemble, Plazo commanded the stage with surgical precision.
He started boldly with a short video montage—social media influencers promising 90% win rates. Then he paused.
“I engineered what they now sell as magic,” he said, deadpan.
The crowd chuckled—but ego wasn’t the point.
The message? AI is retrospective, not prophetic.
“You can’t outsource conviction. AI doesn’t feel in a trade—it reacts what already happened.”
“When war breaks out, when Powell frowns during a Fed announcement, when a bank goes under—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 eyed it. Then said:
“Looks clean, but what about Japan’s unannounced intervention?. Your AI doesn’t see the invisible. It reads tweets.”
The audience murmured. The student bowed slightly. Then: applause.
Another moment: A robotics PhD from Kyoto asked if quantum computing would render all current models read more useless.
Plazo’s answer? “Yes—and no. Faster chips won’t purge panic from data. Train an AI on fear, and it’ll become panic on steroids.”
### 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 hard-earned narrative memory.
2. **“AI Understands Fundamentals.”**
Wrong. AI reads tables, but fails at narrative causality. It may track oil supply, but it won’t flag a coup in Venezuela.
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 launching the next generation of quant leaders. 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 absorbed what they called a sobering perspective.
One finance dean privately told Forbes, “Joseph might have rebooted our entire AI syllabus. Not magic—mirror.”
### The Future AI Can Build
Despite the critique, Plazo isn’t a luddite.
He’s building multi-signal trading engines—that blend intuition cues with algorithmic structure.
His stance? “Let AI drive—but you steer. Don’t go on autopilot.”
“It’s not starving for stats. 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, Joseph Plazo offered something rare: intelligence that’s still human.