PETALING JAYA: The investment industry in Malaysia will always need the human touch, which can never be replaced fully by artificial intelligence (AI), says an asset management expert.
AHAM intermediary distribution and private retirement scheme (PRS) chief officer Chan Ai Mei said although AI has the potential in the future to provide tailor-made recommendations based on the investors’ needs and preferences, it cannot replace the human touch.
“AI tools have certainly helped industry professionals with day-to-day tasks and enhancing productivity.
“Whether it is processing vast amounts of data or identifying patterns and trends, AI tools can lead to more informed decision-making to help fund managers in their role,” she said.
However, Chan does not believe that AI will fully replace human professionals in the industry.
“Investing relies on more than just computational analysis and algorithms. It encompasses human intuition, the ability to read people and gut instincts.
“We believe that a personal touch is still needed when initiating conversation about wealth.
“This is especially so in Malaysia, where investments are primarily still sold and not proactively bought.
“As such, there is value in having professional advice from a qualified wealth consultant to navigate the investment landscape and help deal with things like volatility and risk,” she added.
Senior investment professional Datuk Shireen Ann Zaharah Muhiudeen, who is also the former Bursa Malaysia chairman, said computer trading needs volatility, which comes from liquidity.
“When the underlying stock has no liquidity or market makers, it is extremely hard (for AI to provide the volatility).
“Using AI to trade is useful in large liquid markets. Scams work in illiquid markets,” said Shireen.
