Artificial intelligence can beat the finest human minds at chess and even at Go, the Japanese board game, where there are more potential moves than there are atoms in the known universe. So setting an AI programme to beat the stock market might seem like a potentially easy task by comparison.
However, while many fund management companies are planning to use AI, they do not think it is ready to take over the entire investment process. “There is no ‘piña colada’ system in which a fund manager can let the AI model loose and then go sit on the beach, sipping cocktails,” says Chris Ford of London-based Sanlam Investment Management.
AI will increasingly be used in specific areas of wealth management, from conducting corporate analysis, through customer research and marketing to handling trades. Over time, these techniques may have a significant effect on the fund management business. However, AI will not be taking over the business and, in the short-term at least, clients may not even notice a huge difference in service.