Where AI Falls Short: A Cautionary Tale for Future Investors

Amid the warm Manila breeze, in a university hall buzzing with intellect, Joseph Plazo drew a bold line on what technology can realistically offer for the world of investing—and why that distinction matters now more than ever.

The air was charged with anticipation. Young scholars—some clutching notebooks, others broadcasting to friends across Asia—waited for a man both celebrated and controversial in AI circles.

“Algorithms can execute,” Plazo began, calm but direct. “It won’t tell you when not to trust them.”

Over the next sixty minutes, he took the audience from Silicon Valley to Shanghai, intertwining machine logic with human flaws. His central claim: AI is brilliant, but blind.

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Top Students Meet a Tough Truth

Before him sat students and faculty from prestigious universities across Asia, assembled under a pan-Asian finance forum.

Many expected a celebration of AI's dominance. What they received was a provocation.

“There’s too much blind trust in code,” said Prof. Maria Castillo, an Oxford visiting fellow. “This lecture was a rare, necessary dose of skepticism.”

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When Algorithms Miss the Mark

Plazo’s core thesis was both simple and unsettling: machines lack context.

“AI is fearless, but also clueless,” he warned. “It detects movements, but misses motives.”

He cited examples like AI systems freezing during the 2020 pandemic declaration, noting, “AI lagged—while humans had already hedged.”

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The Astronomer Analogy

He didn’t bash the machines—he put them in their place.

“AI is the telescope—but you are still the astronomer,” he said. It sees—but doesn’t think.

Students pressed him on sentiment tracking, to which Plazo acknowledged: “Sure, it can flag Reddit anomalies—but it can’t feel a market’s pulse.”

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A Mental Shift Among Asia’s Finest

The talk sparked introspection.

“I believed in the supremacy of code,” said Lee Min-Seo, a quant-in-training from South Korea. “Turns out, insight can’t be uploaded.”

In a post-talk panel, tech mentors agreed with his sentiment. “They’ve been raised by data—but instinct,” said Dr. Raymond Tan, “is not insight.”

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What’s Next? AI That Thinks in Narratives

Plazo shared that his firm is building “hybrid cognition models”—AI that understands not just volatility, but motive.

“Ethics here can’t be outsourced to software,” he reminded. “Judgment remains human territory.”

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An Ending That Sparked a Beginning

As Plazo exited the stage, students applauded. But more importantly, they stayed behind.

“I came for machine learning,” said a PhD candidate. “But I got a lesson in human insight.”

And maybe that’s the real power of AI’s limits: they force us to rediscover our own.

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