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How Artificial Intelligence Could Impact Investing

Experts examine how asset managers are leveraging artificial intelligence and other smart tools.

This analyst blog is part of our coverage of the 2018 Morningstar Investment Conference. 

Kevin Franklin of BlackRock joked that the definition he most wanted to address during a panel at the Morningstar Investment Conference was "what is artificial intelligence." In his mind, this was the term that was most fun to define from the smorgasbord of topics addressed. Similarly amusing was his response, which he confessed was from a Google query (particularly since he admitted he didn't move past the first hit). The answer he shared was that when a machine process achieves the level of an intelligence of a human, then you can call it AI. What was impressive was the boundaries of what AI is capable of, moving forward. The past, as elucidated by the panel, should serve as a reminder. In the financial field, if one were to return 30 years ago, no one would have thought to allow a machine to develop the risk model for a portfolio. Today, it would be unheard of not to systematize this process.