Quant Radio: The Pros and Cons of AI in Quant Finance

Artificial intelligence is reshaping the landscape of quantitative investment. In this video, we explore the shift from traditional quant models to AI-driven approaches, covering how deep learning and large language models (LLMs) are revolutionizing the way investors generate alpha, manage risk, and execute trades.

We delve into how deep learning models—like convolutional neural networks, transformers, and graph neural networks—are being used to uncover complex patterns in financial data. You'll also see how reinforcement learning is being applied to optimize decision-making in dynamic market environments.

The video also highlights the growing role of LLMs in finance. These models can process vast amounts of unstructured data, generate novel alpha signals, and even function as AI agents within the investment process. But while the potential is exciting, we also address the key limitations, including issues with interpretability, overfitting, market frictions, and the numerical reasoning gaps still present in current LLMs.

Whether you're a quant, a data scientist, or just curious about how AI is changing the future of investing, this video offers a thoughtful and balanced look at one of the most transformative trends in finance today.

Find the full research paper here: https://community.quantopian.com/c/community-forums/from-deep-learning-to-llms-a-survey-of-ai-in-quantitative-investment

For more quant-focused content, join us at ⁠⁠⁠⁠https://community.quantopian.com⁠⁠⁠⁠. There, you can explore a wealth of resources, connect with fellow quants, engage in insightful discussions, and enhance your skills through our extensive range of online courses.

Quant Radio is an AI-generated podcast, intended to help people develop their knowledge and skills in Quant finance. This podcast is not intended to provide investment advice.