At a gathering of future leaders in AI-driven investment, investment strategist Joseph Plazo, made a notable appeal: in a world increasingly shaped by machines, human judgment remains essential.
From the financial heart of Southeast Asia — At the Asian Institute of Management, the tone was measured, the message clear: technology is no substitute for conscience.
Plazo, the founder of Plazo Sullivan Roche Capital, is widely regarded as a leading figure in machine-driven investing.
And yet, it was not code he chose to champion—but caution.
“Delegating execution is easy. Delegating principles is dangerous.”
???? **A Technologist Who Questions the Tools He Built**
Plazo’s credibility comes not from critique, but from contribution. He has helped reshape modern investment practices through AI.
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“AI is excellent at execution. But poor at explaining ‘why’.”
He recounted a key moment during the COVID-19 crash: a bot under his firm’s control flagged a short position on gold—hours before an emergency Federal Reserve announcement.
“We intervened,” he said. “It processed the data. But ignored the danger.”
???? **Why Strategic Delay Still Matters**
In a reference to a 2023 Fortune roundtable, Plazo cited concerns that traders increasingly feel disconnected from the market—no longer making decisions, but following models.
“Friction slows trading, yes,” he said. “But it creates space for reflection.”
He proposed a decision framework, which he called **“Conviction Calculus”**, grounded in three guiding questions:
- Are we compromising our values for technical correctness?
- Are we listening to data or ignoring deeper patterns?
- Are we prepared to accept accountability if the model fails?
???? **Technology Is Advancing, But Is Oversight Keeping Pace?**
Across Asia, investment in AI and fintech is accelerating. Countries like Singapore, South Korea, and the Philippines are becoming hubs for automated trading systems and tech-led asset management.
Plazo’s message? We may be scaling faster than we are thinking.
“You can scale capital faster than character,” he said. “And that imbalance is a concern.”
In 2024 alone, two hedge funds in Hong Kong reported billion-dollar losses due to AI-driven decisions that failed to anticipate geopolitical shifts.
“Automation doesn’t mean immunity from error.”
???? **The Next Step: Context-Aware AI**
Despite his warnings, Plazo remains optimistic about AI’s future—when developed thoughtfully.
His team is building what he described as **“narrative-integrated AI”**—tools that factor in not just financial data, but also context, tone, timing, and social dynamics.
“Data without story is dangerous.”
At a private gathering after his talk, his proposals attracted immediate interest from capital firms seeking long-term resilience. One described his vision as:
“Exactly what the financial sector needs right now.”
???? **The Warning That Shouldn’t Be Ignored**
Plazo concluded with a sobering statement:
“The next major market failure won’t come from panic,” he said. “It will come from logic—executed too quickly, with no one questioning the outcome.”
No theatrics. No drama. Just a message every leader in finance should read more consider.
Because in the race to automate everything, what’s often lost is not just time—but responsibility.