Reading reports, analyzing stock prices, assessing the right time to invest: large investment companies have long relied on much more than conventional computer applications. What artificial intelligence (AI), specifically the large so-called large language models such as Chat-GPT, mean for asset management was the subject of a smaller discussion on the sidelines of the World Economic Summit in Davos. One person responsible for the group: Sebastian Müller, professor at the Heilbronn campus of the Technical University of Munich (Tum).
Browse business reports, look at key figures, make technical language understandable: AI language models such as Chat-GPT can help small investors and thus lead to the democratization of stock investing. AI can help investors, believes Sebastian Müller. “You can get a lot of information quicker and easier,” says the Tum professor. “That’s a positive aspect.”
Investing with artificial intelligence: The mood is good among start-ups in Davos
Sebastian Müller was in Davos for the first time with Tum; those responsible discussed AI in the so-called AI House. The mood, especially among the start-ups present, was very good. He describes the spirit of optimism, especially among those who took part in the discussion. AI applications in asset management: “Interest has increased, the market is there.”
How good is the AI actually at analyzing individual values? Sebastian Müller compares it to applications in the medical field. It has to be 100 percent correct, regardless of whether a person or a computer makes the decision. Things look different in the financial sector, where professional investors are already not 100 percent correct. That also means that the AI doesn’t always have to interpret everything exactly.
Job loss due to AI? According to the Tum professor, the financial industry will be hit
The financial industry relies on AI, and this is precisely where the challenges lie for the industry and its employees. Analyze a lot of data sets: AI can do what previously required humans more quickly. Are these companies at risk of job losses, and if so, how much? “In the financial industry, staff reductions through AI could be one of the first areas to be reflected, as it is very number-heavy and does not always need 100% correct forecasts,” says the professor. “Entry-level positions appear to be particularly at risk, for example junior analyst or junior portfolio manager.”
The attitude at the discussion was that in the end a person would of course have to make the final decision, said Sebastian Müller. It would make sense, but will it happen? Ultimately, hedge funds were interested in making money. How much does a portfolio manager bring this AI support on board? It would be good, says the professor, if there was information about this in the annual reports.
date: 2026-02-12 23:34:00
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