The use of artificial intelligence in asset management is rapidly increasing -- or at least that's what asset managers want you to believe. I've evaluated scores of managers claiming to use AI. Although some are genuine in their adoption, many are guilty of what I call AI-washing -- professing to use AI when in fact they are merely employing traditional quantitative techniques, such as simple linear regressions, that technically qualify as "machine learning." These dubious claims largely target asset owners who are "eager" to invest in AI-driven funds, according to a recent CFA Institute Investor Trust Study. The survey found that 84 percent of institutional investors want to invest in funds that use artificial intelligence and 78 percent "believe that the use of AI in investment decision making will lead to better investor outcomes."

Reinforcement learning, another type of machine learning, is based on algorithms that learn through trial and error which actions to take to achieve a …

Machine learning in finance is one of the biggest buzzwords in the finance sector for so long, but no more. Over the past decade, technological progress caught up with real life, with data science revolutionizing the entire industry. The digitalization of investment and money matters can give you all the edge you need. Finance companies that have no way to leverage machine learning are being left behind. By combining machine learning with many elements of big data, companies can take advantage of financial opportunities that almost nobody takes.

You got a little too caught up in Instagram and lost track of time. You dash over to your home office to quickly log into to work hoping no one will notice your tardiness. Alas, as soon as you connect, you get an immediate message from your boss: "You're 17 seconds late to work! Your performance score will be impacted." This situation seems far-fetched but a little too real at the same time.