What AI Can’t Replace:
What AI Can’t Replace:
Blog Article
Joseph Plazo’s Hard Truths to Asia’s Next Generation of Investors
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 Asia’s brightest young minds—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 delivers—and fails to grasp in real-world investing.
And what it misses, he stressed, is think like a human.
### Beyond the Hype: Investing in the Age of Overpromised Intelligence
Dressed in a bespoke ensemble, Plazo moved like a cross between preacher and prosecutor.
He opened fire 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 followed—but that wasn’t the punchline.
The message? Most models replay what already happened.
“You can’t outsource principles. AI doesn’t believe in a trade—it echoes what already happened.”
“When war erupts, when Powell slips during a Fed announcement, when a bank tumbles before markets open—AI doesn’t notice. That’s where we come in.”
### The Students Who Challenged Him—and Got Schooled
One unforgettable moment? A showdown between machine and instinct.
A student from NUS presented an AI-backed trade on the Nikkei—equipped with indicators, trends, and sentiment metrics.
Plazo studied it. Then said:
“Solid—but blind to central bank footprints. Your AI doesn’t read motive. It consumes noise.”
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 more info AI on fear, and it’ll become panic on steroids.”
### The Three Myths Plazo Shattered in 45 Minutes
1. **“AI Will Replace Portfolio Managers.”**
Nope. AI supports—it crunches, optimizes, and speeds up decisions—but it doesn’t replace gut instinct.
2. **“AI Understands Fundamentals.”**
Wrong. AI reads tables, but fails at narrative causality. It may model interest rates, but it can’t predict a Strait of Hormuz conflict.
3. **“AI Makes You Smarter.”**
Actually, it might weaken your edge. “The real risk isn’t AI itself,” Plazo warned. “It’s deskilling ourselves at scale.”
### Why Asia Paid Close Attention
This wasn’t a TED-style pep talk.
Asia’s universities are now launching the next generation of quant leaders. They’re asking: more code, or more conscience?
Plazo’s call: “Code, but think critically.”
In closed-door chats at Ateneo and a roundtable at AIM, professors debated what they called a sobering perspective.
One finance dean remarked candidly, “He just reset our compass. Not magic—mirror.”
### The Future AI Can Build
Despite the truth bombs, Plazo isn’t anti-AI.
He’s building hybrid neural systems—integrating macro signals and crowd psychology.
His stance? “Ride with it. Don’t abdicate to it.”
“It’s not starving for stats. It’s starving for judgment. And that still lives in humans.”
The applause echoed across campuses. And his message is still echoing in Asia’s finance incubators.
In a world drunk on AI hype, he delivered the one thing no model ever could—wisdom.