Artificial Intelligence for Asset Management and Investment

Chapter 9A New Beginning

IN PART 1, WE LEARNED HOW TO think in terms of building our firm with AI. We learned that strategic transformation of our business happens when we organize our firms with the AI mindset. The AI mindset is both a strategic and operational paradigm change. It orients leaders to think differently about business. From a strategy perspective, you achieve by enhancing strategic performance potential, flexibility, innovation, market share, and profitability of your firm. You reduce costs through better coordination of work across the firm. You innovate and launch new products. You market and sell more effectively. You manage change in a profound way. You increase collective awareness about the firm. You hire the right talent and manage the talent more effectively. You avoid mistakes and regulatory problems. Your ability to predict improves. As various functions across the firm work in a coordinated intelligent manner, the overall performance increases.

To garner the power of those benefits, you need an operational transformation. Operational transformation comes from the steps of: design, data, model, evaluate, deploy, and performance. Building an AI-centric firm means that you develop the capabilities to implement industrial-scale enterprise machine learning. We learned those in Chapter 3 to Chapter 8.

In Part 2, we shift attention back to the value chain and strategic transformation. In this chapter we will develop a high-level functional model of an investment ...