The 2024 Morningstar Investment Conference concluded with a panel discussion titled “Back to the Future: AI and Machine Learning,” where industry experts delved into the implications of these technologies for financial research. The panel featured Michele Aghassi from AQR Capital, Kevin Franklin from BlackRock, Kathryn Kaminski from AlphaSimplex, and Gilbert Haddad from Fidelity.
Artificial intelligence and machine learning have been subjects of interest for years, with various applications developed over time. However, their effectiveness in the financial markets has been a topic of debate. The panelists explored the challenges and limitations of applying AI/ML to financial research.
The discussion touched upon the historical context, referencing the days of the Clippit, or “Clippy,” the digital assistant on Microsoft Windows. The panelists highlighted that while AI and machine learning have shown promise in certain areas, their application in finance requires careful consideration.
The experts emphasized the need for robust data sets and the importance of understanding the limitations of AI/ML algorithms. They acknowledged that while these technologies can provide valuable insights, they should not replace human judgment and expertise in financial decision-making.
The panelists also discussed the potential risks associated with relying solely on AI/ML models, such as the possibility of algorithmic biases and the challenges of interpreting complex outputs. They stressed the importance of maintaining a balance between human judgment and technological advancements.
Overall, the panel provided a comprehensive overview of the implications of AI and machine learning in financial research. While recognizing their potential, the experts cautioned against overreliance and emphasized the need for a cautious and thoughtful approach.