The New AI Stock Pickers Are Destined to Disappoint: Nir Kaissar

Meet the new stock pickers. They will remind you of the old stock pickers.

One thing to watch for next year is AI-driven investment products. There’s a lot of buzz around Wall Street about artificial intelligence taking over from real-life fund managers, presumably because AI will be better at picking stocks.

It can’t do worse. Twice a year, S&P Global Inc.’s Spiva scorecard shows that most active managers unfailingly lose to a broad stock market index over most time periods. S&P’s report doesn’t extend to hedge funds, but they haven’t fared any better.

Enter AI with hopes of ...