During a keynote at the Asian Institute of Management, investment strategist Joseph Plazo, made a notable appeal: in a world increasingly shaped by machines, human judgment remains essential.
MANILA — Within one of Manila’s top academic venues, what began as a discussion on AI became a deeper debate on accountability.
Plazo, the founder of the high-performing quant firm Plazo Sullivan Roche, has developed trading algorithms with a documented 99% win rate.
And yet, it was not code he chose to champion—but caution.
“Letting AI handle your trades is fine—but not your conscience.”
???? **A Technologist Who Questions the Tools He Built**
Plazo’s credibility comes not from critique, but from contribution. Major asset managers rely on his proprietary tools.
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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. “The AI was technically correct, but it lacked the wider understanding.”
???? **The Importance of Human Oversight in Automated Systems**
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.
“Pausing isn’t always inefficient. Sometimes, it’s responsible.”
He proposed a decision framework, which he called **“Conviction Calculus”**, grounded click here in three guiding questions:
- Does this move copyright the firm’s reputation?
- Have non-digital factors been considered—such as public sentiment, leadership experience, or history?
- Is this a decision we would defend in public?
???? **Asia’s AI Momentum—and the Growing Need for Governance**
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? Growth is welcome. But guidance is vital.
“You can scale capital faster than character,” he said. “That gap must be addressed—or consequences will follow.”
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:
“A timely model for responsible innovation.”
???? **Final Thought: The Most Dangerous Errors Are the Quietest**
Plazo concluded with a sobering statement:
“Crashes won’t always be emotional. Some will be perfectly rational—and perfectly wrong.”
It was a reminder: leadership is about asking the hard questions—especially when the data says yes.
Because in the race to automate everything, what’s often lost is not just time—but responsibility.
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