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Artificial Intelligence-Driven Investing: High Alpha behind the Buzz

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Artificial intelligence (AI) may be among the latest buzzwords in finance, but applying it to investment decision making will disrupt the industry and benefit those investors who harness its power. If used correctly, AI can add high alpha potential within a more stable modeling framework. AI is the basis for a different quantitative investment paradigm. It is a nonlinear, high-dimensional learning approach that typically seeks to replicate human reasoning. One interpretation of this new paradigm can be thought of as learning (and learning to apply) "Graham and Dodd"–style systematic rules.



Beyond Robo-Advisers: How AI Could Rewire Wealth Management

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Asked if a computer will ever be able to give better investment advice than a human, Oliver Bussmann does not hesitate. "I believe it's possible," said Bussmann, who until March was the chief information officer of UBS. Banks' wealth management departments and other investment firms are starting to adopt artificial intelligence. This is different from the robo-advisers you've probably heard about. Those have simplistic, rules-based models -- you give them your age, risk tolerance, goals, and so on and they select a basket of exchange-traded funds for you.


What happens when AI rewires wealth management?

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Asked if a computer will ever be able to give better investment advice than a human, Oliver Bussmann does not hesitate. "I believe it's possible," said Bussmann, who until March was the chief information officer of UBS. Banks' wealth management departments and other investment firms are starting to adopt artificial intelligence. This is different from robo advisers. Those have simplistic, rules-based models -- you give them your age, risk tolerance, goals, and so on and they select a basket of ETFs for you.


Portfolio Managers, Artificial Intelligence Is Coming for Your Jobs

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This is the second installment in a three-part series exploring the impact of artificial intelligence (AI) on investment management. I want to thank the speakers at the AI and the Future of Financial Services Forum, hosted by CFA Institute and CFA Society Beijing, for inspiring this series. The first installment offered a primer on the AI technologies that are relevant to investment professionals. Artificial intelligence (AI) is coming to the investment world. With the help of deep learning techniques, AI researchers have made significant strides in natural language processing (NLP), speech recognition, and image recognition.