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—intuition, discipline, and story.
“AI isn’t your golden ticket. But it will accelerate your losses.”
That was Joseph Plazo’s unapologetic opener at his overflowing 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 Asia’s top universities.
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 real-world investing.
And what it misses, he stressed, is replace your instinct.
### Beyond the Hype: Investing in the Age of Overpromised Intelligence
Dressed in a bespoke ensemble, Plazo moved like a cross between preacher and prosecutor.
He opened fire with a short video montage—clips of online traders pushing miracle machines. 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 feel in a trade—it echoes what already happened.”
“When war erupts, when Powell frowns 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
The highlight of the talk? A battle of brains and bots.
A student from NUS presented an AI-backed trade on the Nikkei—technically solid, sentiment-scanned, and data-rich.
Plazo studied it. Then said:
“Good. But you missed the BOJ’s stealth bond buy this morning. Your AI doesn’t sense the bluff. click here It scans headlines.”
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. 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.”**
False. AI augments—it backtests, filters, calculates—but it doesn’t see through fog-of-war events.
2. **“AI Understands Fundamentals.”**
Wrong. AI interprets numbers, but doesn’t grasp geopolitics. It may track oil supply, but it doesn’t hear whispers in Davos.
3. **“AI Makes You Smarter.”**
Actually, it might make you duller. “The real risk isn’t AI itself,” 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 minting billion-dollar fund builders. 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 debated what they called a clarion call.
One finance dean remarked candidly, “He just reset our compass. Not magic—mirror.”
### The Future AI Can Build
Despite the truth bombs, Plazo isn’t against innovation.
He’s building hybrid neural systems—fusing bias detection and central bank logic.
His stance? “Ride with it. Don’t abdicate to it.”
“AI doesn’t need more data. It’s starving for judgment. And that still lives in humans.”
The crowd rose as one. And his message is still echoing in Asia’s finance incubators.
In a world drunk on AI hype, Plazo gave the crowd what AI can’t: humanity.