The financial world is abuzz with the promise of Artificial Intelligence (AI), powered by the recent surge in the prices of NVIDIA and the so-called “Magnificent Seven”. We must be reminded that history teaches us that underestimating technological disruption can be costly. In the early days of the Internet, many investors and corporate executives laughed at the analysts who painted a rosy outlook for companies like Amazon and Microsoft, at the height of the dot-com bubble. Reading those “bullish” reports today, we realise that their assumptions were far too conservative.
In fact, the true losers of the dot-com bubble were not the investors that bought in at the height of the mania, although their shorter-term pain was significant, but rather those companies who failed to adapt their business models to the Internet age. Remember Blockbuster, Borders and Kodak? They failed to grasp the transformative power of the Internet and were swept aside by more agile competitors.
At Mazi Asset Management, and Mazi NextGen in particular, we are not just observing the AI revolution; we are actively working to embrace it. We believe that AI and machine learning are not just investment opportunities, but fundamental technologies that will reshape how we analyse data, make decisions and interact with our clients.
Here are a few examples of how we are integrating AI across our business:
- Investment analysis. Our proprietary machine learning models sift through vast amounts of data, identifying patterns and signals that humans might miss. This allows us to uncover high-probability investment opportunities with speed and accuracy, minimising emotional bias and enhancing our investment decision-making. Imagine algorithms that analyse market sentiment, company fundamentals, news events and economic indicators unemotionally and accurately, providing a dynamic and comprehensive view of the investment landscape.
- Research efficiency. In today’s information-saturated world, staying ahead of the curve requires efficient research. Our in-house Large Language Model, MaziGPT, acts as a tireless research assistant, summarising external research reports, financial news articles and company filings. This provides our analysts with concise and readily digestible information, freeing them to focus on critical, strategic thinking and client interaction.
- Process automation. We are automating repetitive middle and back-office processes, such as data entry and report generation. This reduces the risk of human error and liberates our team from tedious tasks, allowing them to contribute more strategically to the business.
- Business development. Large Language Models (LLMs) are streamlining our responses to due diligence questionnaires, a critical but often time-consuming aspect of client onboarding. These LLMs learn from our previous submissions and assist us in completing new documents more efficiently.
These are just a few examples of how AI transforms our business. We are committed to continuous innovation, exploring new ways to leverage AI to improve our investment process, enhance operational efficiency and deliver exceptional client service.
The key takeaway for asset managers is clear: the question isn’t whether to invest in AI-related stocks, but how to integrate AI into your business to ensure its future success. The asset management industry is a competitive landscape and firms that fail to adapt to the AI revolution risk being left behind. AI is not just a technological advancement or investment opportunity from which you can generate potential outperformance in your investment portfolios; it’s a paradigm shift that will redefine the future of investing. Be sure that your company and those of your partners do not get left behind.
