The Limits of Artificial Intelligence
The Limits of Artificial Intelligence
Blog Article
In a packed amphitheater at the University of the Philippines, renowned AI investor Joseph Plazo laid down the gauntlet on what AI can and cannot achieve for the future of finance—and why understanding this may define who wins in tomorrow’s markets.
You could feel the electricity in the crowd. Students—some furiously taking notes, others streaming the moment live—waited for a man revered for blending code with contrarianism.
“Machines will execute trades flawlessly,” he said with gravity. “But understanding the why—that’s still on you.”
Over the next lecture, Plazo delivered a fast-paced masterclass, balancing data science with real-world decision making. His central claim: AI is brilliant, but blind.
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Bright Minds Confront the Machine’s Limits
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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Why AI Still Doesn’t Get It
Plazo’s core thesis was both simple and unsettling: code can’t read between the lines.
“AI doesn’t panic—but it doesn’t anticipate,” he warned. “It finds trends, but not intentions.”
He cited examples like machine-driven funds failing to respond to COVID news, noting, “Machines were late to the signal. People weren’t.”
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Reclaiming the Edge: Why Humans Still Matter
Rather than dismiss AI, Plazo proposed a partnership.
“AI is the vehicle—but you decide the direction,” he said. It works—but doesn’t wonder.
Students pressed him on behavioral economics, to which Plazo acknowledged: “Yes, it can scan Twitter sentiment—but it can’t smell fear in a boardroom.”
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Asia Reflects: From Tech Worship to Tech Wisdom
The talk left a mark.
“I thought AI could replace intuition,” said Lee Min-Seo, a finance student from Seoul. “Now I see it’s judgment, not just data, that matters.”
In a post-talk panel, tech mentors agreed with his sentiment. “They’ve been raised by data—but instinct,” said Dr. Raymond Tan, “is only half the story.”
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Co-Intelligence: Merging Math with Meaning
Plazo shared that his firm is building “symbiotic systems”—AI that understands not just volatility, but motive.
“Only you click here can judge character,” he reminded. “Belief isn’t programmable.”
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An Ending That Sparked a Beginning
As Plazo exited the stage, the hall erupted. But more importantly, they stayed behind.
“I came for machine learning,” said a PhD candidate. “Instead, I got something more powerful—perspective.”
In knowing what AI can’t do, we sharpen what we can.