Ken Griffin, CEO of Citadel, expressed skepticism about AI's role in transforming the investment industry, noting its limited application. While acknowledging that his hedge fund utilizes AI to some extent, he remarked that it acts mainly as a productivity tool rather than a revolutionary force. Griffin highlighted AI's effectiveness in short-term trading but criticized its inability to handle long-term investment predictions. He also recognized the broader societal impacts of AI, emphasizing the need to address job displacement caused by its adoption.
"Do we use it in our investment business? A little bit, a little bit. I can't say it's been game-changing," Griffin said.
"It saves some time. It's a productivity enhancement tool. It's nice, I don't think it's going to revolutionize most of what we do in finance," Griffin added.
"So machine learning models work really well with problems that are more static in nature. Reading a radiological report. But investing is about understanding how the future is going to unfold, and that's where these models really struggle, right?" Griffin said.
"They work great in short-term trading, and short-term, I mean as in like the next five minutes. But when you think about the next year or two years, they really start to fall apart," he continued.
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