The Limits of AI in Investing:

A Wake-Up Call from Manila’s Leading AI Strategist

As machines increasingly shape markets, a defiant voice in the Philippines’ capital reminds us what money still listens to—judgment, ethics, and gut.

“Artificial intelligence won’t hand you fortune. But it will amplify your errors at scale.”

That was Joseph Plazo’s blistering opener at his jam-packed keynote at the University of the Philippines’ main forum—and it hit the crowd like a whipcrack.

In front of him were the region’s next-gen economists and AI thinkers—portfolio hopefuls, quant researchers, and finance scholars from leading institutions across Asia.

Plazo—CEO of a firm at the intersection of AI and capital—delivered a roadmap on what AI offers—and where it falls short in live-market investing.

And what it misses, he stressed, is replace your instinct.

### Beyond the Hype: Investing in the Age of Overpromised Intelligence

Dressed in a razor-sharp outfit, Plazo moved like a cross between preacher and prosecutor.

He started boldly with a short video montage—social media influencers promising 90% win rates. Then he paused.

“I engineered what they now sell as magic,” he said, dryly.

The crowd chuckled—but this wasn’t ego.

The message? Most AI is built on hindsight.

“You can’t outsource guts. AI doesn’t believe in a trade—it mirrors what already happened.”

“When war unexpectedly explodes, when Powell coughs during a Fed announcement, when a bank tumbles before markets open—AI doesn’t notice. We do.”

### The Students Who Challenged Him—and Got Schooled

One unforgettable moment? A showdown between machine and instinct.

A student from NUS presented an AI-backed trade on the Nikkei—equipped with indicators, trends, and sentiment metrics.

Plazo eyed it. Then said:

“Solid—but blind to central bank footprints. Your AI doesn’t read motive. It consumes noise.”

The audience leaned in. The student bowed slightly. Then: applause.

Another moment: A robotics PhD from Kyoto asked if quantum computing would render all current models useless.

Plazo’s answer? “Yes—and no. Quantum speed won’t erase flawed logic. Train an AI on fear, and it’ll become hysteria with processing power.”

### The Three Myths Plazo Shattered in 45 Minutes

1. **“AI Will Replace Portfolio Managers.”**
Nope. AI supports—it crunches, optimizes, and speeds up decisions—but it doesn’t see through fog-of-war events.

2. **“AI Understands Fundamentals.”**
Wrong. AI interprets numbers, but can’t see through diplomatic posturing. It may model interest rates, but it can’t predict a Strait of Hormuz conflict.

3. **“AI Makes You Smarter.”**
Actually, it might make you duller. “The real risk isn’t AI itself,” Plazo warned. “It’s deskilling ourselves at scale.”

### Why Asia Paid Close Attention

This wasn’t a TED-style pep talk.

Asia’s universities are now launching the next generation of quant leaders. They’re asking: more code, or more conscience?

Plazo’s call: “Code, but think critically.”

In closed-door chats at Ateneo and a roundtable at AIM, professors debated what they called a sobering perspective.

One finance click here dean remarked candidly, “He just reset our compass. Not magic—mirror.”

### The Future AI Can Build

Despite the critique, Plazo isn’t anti-AI.

He’s building hybrid neural systems—integrating macro signals and crowd psychology.

His stance? “Ride with it. Don’t abdicate to it.”

“It’s not starving for stats. It’s starving for judgment. And that still can’t be coded.”

The applause echoed across campuses. And that jolt of insight is still shaking up syllabi in Asia’s elite universities.

In a world drunk on AI hype, he delivered the one thing no model ever could—wisdom.

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