The world is in a constant state of change. Furthermore, the global pandemic has accelerated many processes and developments. This is also true for the investment industry, which is constantly evolving. An emerging trend at many conferences and in conversations concerning investments is “Artificial Intelligence”. The financial markets are ultimately determined by the opinions of millions of people and complex inter-market forces. Embracing AI makes a lot of sense, as algorithms can understand market developments and predict future outcomes in many cases better than humans, regarding the fact that humans are emotional and tend to behave irrationally.
When speaking about AI in the investments industry, it should seriously be considered that many companies do not invest “with” AI but “in” AI. Because of misleading marketing, many people assume that managers invest with the help of AI, but they do not investigate in all details, which leads to false assumptions. Different from others, The LEHNER INVESTMENTS Group is considered as a pioneer in investment funds based on Big Data and Artificial Intelligence. Founded by Markus Lehner over 30 years ago, the company focuses on investing with Artificial Intelligence and Big Data in their fund management for several years.
As described above, many asset and fund managers invest “in” companies using Artificial Intelligence, such as Google or Facebook, but do not use AI in their processes of stock selection. In other words, old processes are still being used. This is particularly because integrating AI and Big Data into the investment process is not a trivial matter and needs long time experience and a very different skill set for the (investment) team. A very similar risk is evolving now also in the Digital Assets space as many companies give the impression to invest in Crypto Currencies directly but many times the actual investment is just in companies remotely related to Crypto Currencies.
Finding the real investment opportunities in the complex Crypto space is challenging as there are already more than 10 thousand (!) Crypto Currencies existing, and so even experienced investors might have difficulties looking through, but AI can provide excellent tools to search and select Crypto among this large universe. Words like “AI” or “Crypto” are often used for attraction, even if in many cases this is only to look more promising and attractive – as it certainly would be if a regulated fund could invest directly in Cryptos managed by AI.
