Where AI Falls Short: A Cautionary Tale for Future Investors
Where AI Falls Short: A Cautionary Tale for Future Investors
Blog Article
At a lecture hall in Manila, renowned AI investor Joseph Plazo made a striking distinction on what AI can and cannot achieve for the future of finance—and why that distinction matters now more than ever.
You could feel the electricity in the crowd. Young scholars—some clutching notebooks, others broadcasting to friends across Asia—waited for a man both celebrated and controversial in AI circles.
“Algorithms can execute,” Plazo began, calm but direct. “But it won’t teach you why to believe in them.”
Over the next sixty minutes, Plazo delivered a fast-paced masterclass, intertwining machine logic with human flaws. His central claim: AI is brilliant, but blind.
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Top Students Meet a Tough Truth
Before him sat students and faculty from prestigious universities across Asia, assembled under a pan-Asian finance forum.
Many expected a victory lap of AI's dominance. Instead, they got a reality check.
“There’s a growing religion around AI,” said Prof. Maria Castillo, guest faculty from Europe. “Plazo’s words were uncomfortable—but essential.”
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When Algorithms Miss the Mark
Plazo’s core thesis was both simple and unsettling: code can’t read between the lines.
“AI is fearless, but also clueless,” he warned. “It finds trends, but not intentions.”
He cited examples like AI systems freezing during the 2020 pandemic declaration, noting, “AI lagged—while humans had already hedged.”
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The Astronomer Analogy
He didn’t bash the machines—he put them in their place.
“AI is the telescope—but you are still the astronomer,” he said. It analyzes—but lacks awareness.
Students pressed him on sentiment tracking, to which Plazo acknowledged: “Sure, it can flag Reddit anomalies—but it can’t discern hesitation in a policymaker’s tone.”
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A Mental Shift Among Asia’s Finest
The talk sparked introspection.
“I believed in the supremacy of code,” said Lee Min-Seo, a finance student from Seoul. “Now I realize it also needs wisdom—and that’s the hard part.”
In a post-talk panel, faculty and entrepreneurs echoed the caution. “This generation is born with algorithmic reflexes—but instinct,” said Dr. Raymond Tan, “is not insight.”
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The Future Isn’t Autonomous—It’s Collaborative
Plazo shared that his firm is building “symbiotic systems”—AI that pairs statistical logic with situational nuance.
“No machine can tell you who to trust,” he reminded. “Capital still requires conviction.”
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Standing Ovation, Unfinished Conversations
As Plazo Joseph Plazo exited the stage, the crowd rose. But more importantly, they started debating.
“I came for machine learning,” said a PhD candidate. “But I left understanding myself better.”
In knowing what AI can’t do, we sharpen what we can.