The world is always looking for easy way to make money. Everyone is trying to outsmart one another. Now I received inquiry whether there is such Artificial Intelligence (abbrev. AI) tool for analyzing stock.
Can AI analyse stocks? For a Fundamentalist, I am afraid no such effective tool. Few questions that we need to ask, is human the one continuing to run the business operation and making business decision? If the answer yes, then how does an AI analyse what the business managers (of the particular stock) think and rationale in arriving in that decision? Running business is an art. How to analyse art? I seriously I doubt the effectiveness.
Google GO player has AI that had all the pre-set rules and algorithm of the game, there is finite possibilities of predicting the moves of the opponent. Then does making business decision have finite possibilities? The answer is no.
If every machine arrives at the same conclusion, isn’t then stock market becoming very static? Then who is going to be the loser?
Can AI replace Fund Managers? Yes, it is possible if the manager is really lousy because his stock picking thought process is as rigid as a robot.
Can AI be like the Tesla technology predict car accidents in advance, predicting market meltdown ahead? I really doubt so. The input variables into the smart cars’ sensors are limited. The factors that cause the stocks crisis is infinite, uncountable input. Often the market crisis are end result of greed and fear; human factors play significant part. I really doubt such capability.
If we are able to use AI to model the business scenarios and economic environment, Economists would have been able to predict economy very accurately in the past.
If one day, someone is trying to sell me AI to help me analyse stock, most likely I will think it is just like some products that are trying to use Jargon (in this case, AI) to be impressive.
