Sorry, AI Just Can’t Sniff Out a Market Crash
Sorry, AI Just Can’t Sniff Out a Market Crash
Blog Article
Finance innovator Joseph Plazo just reminded a room full of Asia’s brightest something Wall Street has been avoiding for years: AI may be powerful, but it lacks wisdom.
MANILA — This wasn’t a pep talk—it was a strategic slap.
On a sunlit Thursday morning at the Asian Institute of Management in Manila, Plazo addressed a sea of students from top Asian universities—Kyoto—expecting a sermon on AI’s inevitable rise.
What they got instead? A jolt of truth.
“AI is like your smartest intern,” Plazo quipped, “But you still don’t give the intern the keys to your vault.”
The room laughed. Then they stilled. Because he wasn’t joking.
### AI’s Blind Spot? Human Nature
Let’s be clear—Plazo isn’t some Luddite clinging to the past. He designs trading AIs. His firm, Plazo Sullivan Roche Capital, powers some of the most accurate systems on global markets. He understands machine learning like few do.
But that’s exactly why his warning landed like a punch.
“The problem isn’t AI,” he told the room. “It’s what we expect from it. We keep hoping it’ll save us from making hard decisions. That’s a fantasy.”
Plazo unpacked real-world case studies—moments when AI signaled winning trades… right before a central bank pivot or an unexpected war. Moments no dataset could foresee.
### Asia’s Best Challenged Him—and Learned Something
A student from Kyoto asked if LLMs might someday gauge global sentiment.
Plazo grinned.
“AI can spot a tweetstorm. But it won’t sense dread in a press conference. It won’t catch regret in a central banker’s sigh.”
The room oohed. That one stuck.
Another asked, “Can AI ever understand conviction?”
Plazo raised an eyebrow.
“Conviction isn’t math. It’s gut. It’s shaped by failure and memory. You don’t download that.”
### A Wake-Up Call for Tomorrow’s Titans
This wasn’t about flash website trading or chatbots. It was about principle.
Students admitted they saw AI as a cheat code—an escape hatch from risk, from thinking too hard. Plazo tore that idea down.
“You can automate your trades. You can’t automate your values.”
That line slapped. Because everyone in that room—from the copyright cowboys to the quant whizzes—wanted alpha. But not at the cost of why they started.
### AI’s Real Role? Powerful—But Limited.
Plazo didn’t trash AI. He credited its strengths:
- It filters noise.
- It backtests at scale.
- It spots technical setups better than any human.
But it can’t read sarcasm. It fails to sense when a politician is bluffing. And it doesn’t care if your retirement burns.
“If your AI bot makes a bad call,” Plazo asked, “do you still own it? Or do you blame the code?”
That’s leadership talking.
### This Isn’t Just Markets—It’s Mindset
Plazo wasn’t preaching finance. He was preaching maturity. Use AI—but don’t worship it. Let it assist—not decide.
And yes—he still believes in the machines. He’s building tools that track geopolitics, misinformation, even psychological nuance.
But he left no doubt:
“No machine can tell you when *not* to act. That’s your job.”
### Don’t Let Your Bot Decide Who You Are
As the crowd filed out—buzzing, challenged, changed—one phrase echoed down the halls:
“AI doesn’t know your values. So don’t let it make your decisions.”
In a world chasing speed, Plazo offered something rarer:
A choice.
Because investing isn’t just about *winning*. It’s about knowing **why** you played.