How AI Changes the Investing Game

I’ve been involved in the investment business for over 30 years. When I started, it was unusual for brokers and financial advisors to have a computer at their desk. We would look up three-month-old research from Value Line, which came in a three-ring binder.

Times have changed since then.

The investment industry was an early adopter of AI and automated trading. It is a very quantitatively driven business. The first robo-advisors arrived around 2010. Today, the five largest mutual funds investing in stocks ALL run algorithmically based index strategies.

In the early 2000s, the biggest bank in Delaware had 30 stock analysts. This was the job that I wanted as a college graduate. Now, it doesn’t exist.