Cliff Asness on how #AI changes quantitative investing #stockmarket #shorts

AI in Investment - AI adoption in investment processes may lead to a reduction in intuitive understanding [1] - The value of AI lies in uncovering insights beyond simple observations [2] Quantitative Analysis - Quantitative analysis has been used to gauge momentum in price and fundamentals, including sentiment analysis of earnings calls [2] - A common approach involves assigning numerical values to words and phrases to assess the overall sentiment [3] - This approach is vulnerable to misinterpretation, as context is crucial [3][4] - The industry acknowledges the risk of flawed analysis when relying solely on quantitative methods without considering context [4]