Note from the Publisher: Well, at least this one is Canadian-based. We're pretty sure that we're going to continue using this headline for some time to come, though, since every major investment management firm or bank is going to have to get into this game sooner or later. Responsive Capital Management, based in Vancouver (LOVE that city), will supposedly be different than most other robos because it will use incoming economic and market data points to manage customer assets, whereas more traditional (passive) robos keep a preset balance on their portfolios, based on historicals. However, with that added advantage, the management fees will also be significantly higher than most other robos as well.
"Davyde Wachell, whose Vancouver-based company is launching a new artificial intelligence robo-advisor, says computers will never be as smart as humans assisted by machines.
But Wachell’s Responsive Capital Management is touting artificial intelligence and deep data as its edge over automated competitors. Human decisions powered by artificial intelligence, says the company’s chief executive, will outperform the most intelligent computer or the smartest person.
'Amateur-level chess players could beat [chess champion Garry] Kasparov and [chess computer] Deep Blue, if they were given AI assistance. The Pentagon, the U.S. military, calls this the Centaur model,' says Wachell, whose company launches its eponymous machine-learning robo advisor this month. But he cautions: 'There’s no substitute for thinking. If you want to plug in something [AI] and hope everything’s going to be OK, I’m worried for you.'"
Read Full Article at Advisor.ca