Displaying items by tag: artificial intelligence
Research Like a Big Firm, Without the Labor Costs
Large financial firms have dedicated research teams that construct portfolios. Individuals or even sub-teams dedicate to different factors, and smaller firms previously had a hard time competing. However, technology is shifting the balance, as tools like machine learning and artificial intelligence can augment current labor to boost productivity. These measures can enhance productivity without increasing one of the largest input costs in finance: labor. Magnifi’s powerful artificial intelligence can amp up your research department by providing detailed analytics, and powerful search features that navigate thousands of portfolio opportunities without the large teams. Technology is leveling the playing field and giving small firms the edge in labor output.
AI is About to Hit the Wealth Management Industry
(New York)
Can you remember any technology (maybe since the internet) that has had as much hype as artificial intelligence? Blockchain and Bitcoin come close, but other than that we cannot think of one. That said, advisors may be wondering how it is going to affect them. Well, Barron’s has published a long piece looking at how the technology will impact everything in wealth and asset management. Everything from portfolio optimization, to trade execution, to loss harvesting is being looked at through the lens of AI. Even securities selection itself is having AI applied to it through a number of techniques that all harvest big data on stocks.
FINSUM: AI has a lot of promise, not just hype. And from looking at how it might impact the sector, we don’t think the effects are going to be detrimental to human advisors, at least not in a major way.