Where AI Fails: Lessons from Joseph Plazo:
Where AI Fails: Lessons from Joseph Plazo:
Blog Article
Human Intelligence Still Wins in Finance’s Final Frontier
In an age of algorithmic promises, a bold voice in Manila issues a sharp reminder that judgment still beats the algorithm—intuition, discipline, and story.
“AI isn’t your golden ticket. But it will accelerate your losses.”
That was Joseph Plazo’s unapologetic opener at his overflowing keynote at the University of the Philippines’ amphitheater—and it drew audible gasps from the audience.
In front of him were the region’s next-gen economists and AI thinkers—portfolio hopefuls, quant researchers, and finance scholars from leading institutions across Asia.
Plazo—CEO of a firm at the intersection of AI and capital—delivered a roadmap on what AI offers—and where it falls short in live-market investing.
And what it misses, he stressed, is replace your instinct.
### Beyond the Hype: Investing in the Age of Overpromised Intelligence
Dressed in a tailored navy suit, Plazo moved like a cross between preacher and prosecutor.
He began the teardown with a short video montage—clips of online traders pushing miracle machines. Then he paused.
“I created the model they ripped off,” he said, matter-of-fact.
Laughter broke out—but that wasn’t the punchline.
The message? Most models replay what already happened.
“You can’t outsource principles. AI doesn’t feel in a trade—it echoes what already happened.”
“When war erupts, when Powell slips during a Fed announcement, when a bank goes under—AI doesn’t flinch. That’s where we come in.”
### The Students Who Challenged Him—and Got Schooled
The highlight of the talk? A battle of brains and bots.
A student from NUS presented an AI-backed trade on the Nikkei—technically solid, sentiment-scanned, and data-rich.
Plazo studied it. Then said:
“Good. But you missed the BOJ’s stealth bond buy this morning. Your AI doesn’t sense the bluff. It scans headlines.”
The audience leaned in. The student grinned. Then: applause.
Another moment: A robotics PhD from Kyoto asked if quantum computing would render all current models useless.
Plazo’s answer? “Yes—and no. Faster chips won’t purge panic from data. Train an AI on fear, and it’ll become panic on steroids.”
### The Three Myths Plazo Shattered in 45 Minutes
1. **“AI Will Replace Portfolio Managers.”**
Not quite. AI assists—it backtests, filters, calculates—but it doesn’t replace hard-earned narrative memory.
2. **“AI Understands Fundamentals.”**
Wrong. AI reads tables, but fails at narrative causality. It may track oil supply, but it won’t flag a coup in Venezuela.
3. **“AI Makes You Smarter.”** get more info
Actually, it might lure you into dependency. “AI won’t kill you—but your laziness might,” Plazo warned. “It’s in forgetting how to think without it.”
### Why Asia Paid Close Attention
This wasn’t just another keynote.
Asia’s universities are now home to finance’s future titans. They’re asking: more code, or more conscience?
Plazo’s call: “Harness tech, but stay human.”
In closed-door chats at Ateneo and a roundtable at AIM, professors wrestled with what they called a turning point speech.
One finance dean privately told Forbes, “This talk shifts the ethical foundation. Not magic—mirror.”
### The Future AI Can Build
Despite the warnings, Plazo isn’t a luddite.
He’s building models that read psychology as well as numbers—that blend intuition cues with algorithmic structure.
His stance? “Co-pilot AI. Don’t worship it.”
“AI doesn’t need more data. It needs discernment. And that still belongs to us.”
The standing ovation was thunderous. And the ripple is still moving in Asia’s halls of learning.
In a world drunk on AI hype, Plazo gave the crowd what AI can’t: humanity.