Introduction
The promise of artificial intelligence (AI) to boost productivity by 80% has been touted as the solution to many of our modern-day woes. However, is this promise too good to be true? Recent conversations with media professionals and experts have revealed a widespread misunderstanding of AI’s capabilities and limitations. In this article, we’ll delve into the reality of AI-driven productivity gains and separate fantasy from fact.
The Unrealistic Expectations of AI
A recent conversation with a media person about AI and investing revealed the extent to which people have been misled about AI’s role in finance. Many believe that AI is already managing substantial portions of mutual fund portfolios, actively analyzing stock holdings for retail investors, and even delegating investment decisions entirely to machines. However, the reality is far from it.
The Limitations of AI
While AI has revolutionized industries across the globe, its capabilities are still limited. AI can process vast amounts of data quickly and accurately, but it lacks the nuance and human judgment required for complex decision-making. Investment decisions, in particular, are a perfect example of this. An expert may use AI to analyze data and identify trends, but ultimately, the decision to invest or not is still a human one.
The Future of AI in Finance
So, what does the future hold for AI in finance? While AI will undoubtedly continue to play a significant role in the industry, it will be used as a tool to aid human decision-making, not replace it. AI can help with research and analysis, but investment decisions will remain stubbornly human. According to Michael Kratsios, Director of the White House Office of Science and Technology Policy,
Originally published on https://www.communicationstoday.co.in/promise-of-ai-driven-80-productivity-gains-is-dangerous-fantasy/
Originally published on https://www.communicationstoday.co.in/promise-of-ai-driven-80-productivity-gains-is-dangerous-fantasy/
