Successfully applying AI to investing appears as a completely different challenge compared to the numerous industries in which it has enjoyed success. The mix between the risky nature of financial markets and the crucial role of asset managers in the economy makes AI reliability the most important factor to consider – the same trustworthiness required from security engineers when building a 100-story skyscraper in the center of Manhattan.
Just as buildings need solid foundations to resist earthquakes, AI models require learning from meaningful data to deliver what they promise: greater portfolio efficiency, risk control and the ability to continuously adapt and improve over each market cycle. Yet, it is often unclear how to achieve this. In this paper, we discuss the essentials to build AI that investors can rely on. To invest with models we can trust and control – not the other way around.
