“Automated Finance, Human Consequences: Plazo Urges Caution on AI in the Markets”
“Automated Finance, Human Consequences: Plazo Urges Caution on AI in the Markets”
Blog Article
At a regional summit of Asia’s most promising technocrats and business students, Joseph Plazo—founder of the algorithmic trading firm Plazo Sullivan Roche—broke the rhythm of praise for AI with a moment of reckoning.
Inside one of Southeast Asia’s most influential business schools — What he offered instead was something rarely heard in AI circles: resistance.
“Profit isn’t the only thing on the line. So is principle.”
???? **Joseph Plazo: A Technologist Sounding the Alarm**
Plazo is not new to this space. His firm’s AI systems have posted a 99% win rate across key timeframes and are in use by institutional clients across Europe and Asia.
Yet even with these results, he insists—performance isn’t the only metric.
“AI can optimise a mistake to perfection if no one stops it.”
He shared a case from the early days of the pandemic. One of his firm’s bots flagged a short on gold just before the U.S. Federal Reserve issued an emergency policy shift.
“We overrode it. It was a machine doing math, not reading history.”
???? **Machines Act Fast. But Leadership Sometimes Waits.**
AI’s appeal lies in its instant execution. But at what cost?
“We must remember that a moment of hesitation can protect reputations—and futures.”
Plazo introduced a framework he calls **“Conviction Calculus”**—three questions that must be asked before executing an AI recommendation:
- Who takes responsibility if the code is flawless—but the outcome disastrous?
- Is there non-digital confirmation? What do experience, memory, and culture say?
- Will anyone say, ‘This was click here my call,’ or just point at the machine?
???? **Asia’s Race Toward AI Could Be Missing Its Compass**
Across Asia, nations are investing heavily in fintech and AI-driven innovation. From Singapore to South Korea, the push toward automation is framed as economic strategy.
But Plazo’s question cuts deeper: “Are we building intelligence without wisdom?”
He referenced multiple AI-driven losses in the past year.
“It was failure by design—because no one was allowed to stop it.”
???? **The Alternative: Narrative AI That Considers More Than Numbers**
Plazo is not anti-AI. He’s pro-responsibility.
His firm is developing what he calls **“narrative-integrated AI”**—models that factor in geopolitics, tone, and social context alongside market data.
“The future isn’t faster bots—it’s smarter, humbler ones.”
At a private dinner after the event, multiple venture capital leaders discussed collaborations.
One investor called Plazo’s talk:
“A blueprint for ethical AI in an unequal world.”
???? **What Happens When No One Says ‘Stop’**
Plazo ended with a thought that may echo across boardrooms:
“We won’t be victims of chaos—but of unchecked confidence.”
Not a warning against AI—but a demand for wisdom to go with it.
Because when machines take over the trades, someone must still own the consequences.