Imagine an intricate network of elastic compute clouds, data centres, rows of quiet office desktop computers running algorithms that communicate with one another engaged in fierce competition or active collaboration. The whole purpose of their existence is to grow stronger, become more resilient and survive in a turbulent, chaotic and at times rather hostile environment. They seem to carry out some distinctly different functions: many of them are workers, warriors, some seem to be silent guardians that protect their environment. Their level of intelligence reminds us of the wonderful animal kingdom that thrives on our beautiful planet. They are of different material, they are a product of higher intelligence but their nature seems to be in harmony with that of the living word. They live, they breed, and they die. Their end is an agent of change and their survival features are passed from one generation to another. Their actions are not prescribed or contained by a single overarching script as they become more complex, graceful and smart in the flux that surrounds them.
They conduct and participate in large scale simulations, they learn to deal better with boom and bust cycles, slow and fast markets; they seem to pinpoint human cognitive biases that let many market participants sabotage themselves and work around them. All with a high degree of autonomy.
The research is carried out. New ways of asset allocation, rebalancing and trading are distilled, reports prepared, client sentiment is gathered to adjust the risk parameters to protect and increase their wealth and ensure the longevity of the Fund.
Some old jobs are gone. Exciting new ones are created. This new world of AI is not an aberration, it is just another milestone of this universe on its expansion path. An advanced life form creates another.
No one and nothing seems to be able to prevent this change now. In many respects, it has already happened. Welcome to the brave new world of AI. Don’t be intimidated by it, seize the opportunity.