Monetary Matters with Jack Farley How AI Tools Are Rapidly Disrupting the Investment Industry | Brett Caughran & David Plon
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Sep 3, 2025 Brett Caughran, founder of Fundamental Edge, and David Plon, CEO of Portrait Analytics, dive into how AI is transforming the investment industry. They discuss the rapid advancements in AI, likening its impact to that of Microsoft Excel. The importance of human insight remains crucial despite AI's efficiency in enhancing research. They also touch on the challenges of adopting AI tools in traditional funds and stress the need for clear communication with AI to optimize its use in investment strategies.
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AI Transitioned From Toy To Core Tool
- AI has moved from a toy to an indispensable research tool within months due to model and engineering improvements.
- Brett Caughran believes even incremental advances make AI permanent for high-stakes equity research.
Model Improvements Happen In Inflection Steps
- Model improvements have come in stair-step inflection points as scale, data, and compute increased.
- David Plon sees current AI adoption as moving from novelty to competitive necessity in hedge funds.
Use Specialized Tools For Complex Tasks
- Use specialized AI platforms for complex workflows like idea generation that require orchestration and proprietary data.
- Rely on vendor tools when general-purpose models struggle to combine many disparate operations reliably.