The Partnership for New York City said Wednesday that 22% of financial firms plan to shed staff here in the next five years. The group cites the high cost of doing business, but there’s another reason: Machines are getting better at playing the market than humans.
Exhibit A: the AI Powered Equity ETF, which uses artificial intelligence to pick stocks. Heading into this morning AIEQ had risen 42% in the past 12 months while the S&P 500 added 31% and Nasdaq, 37%. Most money managers who aim to beat the market don’t.
Starting 30 years ago, computers made a lot of back-office work in finance obsolete, which explains
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