We’ve seen wealth management teams use the previous day’s activity of the AI as input into their investment committee meetings. Analysts present their thesis for investment direction and one team member presents what the AI has identified, as well as, what sectors and algorithms have seen the most activity since the last meeting making AI part of the overall decision process.
Hortz: Where do you see the next generations of AI efforts and R&D going?
Aferiat: I know for Trade ideas our focus is on creating and optimizing more longer term algorithms that focus on months and quarters. We also are planning to leverage the AI analytics against other asset classes like micro mini futures, crypto currencies, and other international exchanges.
Hortz: Any final thoughts or advice you would like to share to the broader investment professional community about how they can best react to AI technology?
Aferiat: Not to generate fear, but every delay is a day lost, as the competition is increasingly using these tools. To make an analogy, none of us go a day without an iPhone or Android, even though we may prefer not to. And 15 years ago, they did not exist. AI and machine learning technologies today are in a similar position as smart phones were in their early years.
We highly recommend that advisors and asset managers develop a plan of action to further investigate AI and how it can be best used in their investment process. The benefits in performance are substantial and consistent over time. AI has been demonstrated to provide real impact for asset managers. So the real question is not: Who needs it? But Why Don’t You Have It?
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