These days, the topic that caught my interest is rather fascinating. AI gets smarter each day, it can write texts, solve problems, analyze charts and assist in investments. This got me thinking…
Could AI be a better investor than a human?
Frankly speaking, there isn't a clear answer on this one.
AI has many benefits. It can process thousands of different pieces of information in a matter of seconds. Unlike people, it won't get tired or panicked in case of a drop in the market. In contrast to the vast majority of people, AI can analyze the market even in the nighttime.
Pretty impressive.
Nevertheless, there is one thing that I consider to be an advantage of humans over AI Experience.
It may happen that not only the numbers are important when it comes to investments. The understanding of the people, news, emotions, fears, and excitements of people can influence the state of the market unexpectedly. Human investors can apply their own judgment in such situations.
There is also one more aspect that I have noticed.
Many people believe that AI will always give a correct answer. I have to say that I don't agree with this assumption. AI can use the available information for learning, however, it can't predict the future 100%. In case it did, everybody who used AI would already be rich, which obviously isn't the case.
Personally, I consider AI to be an extremely helpful tool, but not the replacement of human judgment.
For instance, AI can quickly provide an understanding of a particular project, explain any hard concepts, and compare different cryptocurrencies. Such technology helps to save a lot of time. However, when it's about the real investment of my money, I don't mind having the final word.
I guess that the smartest investors of the future won't be those who choose either AI or human investors.
The most successful will be those who combine these two into one.
AI will do the analysis.
People will make decisions.
This combination seems to be ideal to me.
Technology will develop even more and AI will become even stronger. Nevertheless, I don't think that AI will replace human investors in the nearest future. Investing isn't limited to the analysis of the patterns – it requires patience, discipline, and ability to make decisions without regretting them afterwards.
So, who wins?
From my point of view, AI and people are the strongest opponents of each other. AI can make us smarter; however, it shouldn't replace our personal judgments.