The Limits of AI in Investing:
The Limits of AI in Investing:
Blog Article
Joseph Plazo’s Hard Truths to Asia’s Next Generation of Investors
In an age of algorithmic promises, a bold voice in Southeast Asia issues a sharp reminder that money still bends to human instinct—conscience, context, and conviction.
“AI won’t make you rich. But it will amplify your errors at scale.”
That was the blistering opener at his jam-packed keynote at the University of the Philippines’ main forum—and it hit the crowd like a whipcrack.
Facing him were the region’s next-gen economists and AI thinkers—portfolio hopefuls, quant researchers, and finance scholars 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 actual 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 built the system they copied,” he said, dryly.
Laughter broke out—but ego wasn’t the point.
The message? Most models replay what already happened.
“You can’t outsource conviction. AI doesn’t feel in a trade—it echoes what already happened.”
“When war erupts, when Powell slips during a Fed announcement, when a bank goes under—AI doesn’t flinch. That’s where we come in.”
### The Students Who Challenged Him—and Got Schooled
One unforgettable moment? A showdown between machine and instinct.
A student from NUS presented an AI-backed trade on the Nikkei—equipped with indicators, trends, and sentiment metrics.
Plazo eyed it. Then said:
“Solid—but blind to central bank footprints. Your AI doesn’t read motive. It consumes noise.”
The audience leaned in. The student bowed slightly. 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. Quantum speed won’t erase flawed logic. Train an AI on fear, and it’ll become hysteria with processing power.”
### The Three Myths Plazo Shattered in 45 Minutes
1. **“AI Will Replace Portfolio Managers.”**
Nope. AI supports—it crunches, optimizes, and speeds up decisions—but it doesn’t see through fog-of-war events.
2. **“AI Understands Fundamentals.”**
Wrong. AI interprets numbers, but can’t see through diplomatic posturing. It may model interest rates, but it doesn’t hear whispers in Davos.
3. **“AI Makes You Smarter.”**
Actually, it might make you duller. “The danger isn’t in trusting AI,” Plazo warned. “It’s losing your grip on human reason.”
### Why Asia Paid Close Attention
This wasn’t your average AI hype fest.
Asia’s universities are now home to finance’s future titans. They’re asking: more code, or more conscience?
Plazo’s call: “Do both—but lead with the mind.”
In closed-door chats at Ateneo and a roundtable at AIM, professors wrestled with what they called a clarion call.
One finance dean shared off-record, “This talk shifts the ethical foundation. Not magic—mirror.”
### The Future AI Can Build
Despite the truth bombs, Plazo isn’t against innovation.
He’s building models that read psychology as well as numbers—fusing bias detection and central bank logic.
His stance? “Co-pilot AI. Don’t worship it.”
“AI doesn’t need more data. It needs discernment. And website that still lives in humans.”
The crowd rose as one. And his message is still echoing in Asia’s halls of learning.
In a world drunk on AI hype, Plazo gave the crowd what AI can’t: humanity.