AI is no savior when markets get tough … but it can help, says Nickel Digital chief
AI is useful in investment analysis, but human intervention is crucial for risk management during tough market conditions.Summary
Anatoly Crachilov, CEO of Nickel Digital Asset Management, asserts that while Artificial Intelligence plays a major role in core investment processes—with 96% of surveyed trading executives confirming its importance—it is not a market savior during tough times. AI, including machine learning and predictive models, struggles with identifying incorrect information, necessitating human oversight. Crachilov emphasizes that in volatile markets, an "old school" approach involving human discipline is required to enforce risk limits, such as maximum drawdown constraints, even when AI drives the strategy. Furthermore, human intervention is necessary to interpret potentially erroneous or incomplete data feeds from fragile crypto exchanges, preventing automated systems from making poor decisions based on bad data. Nickel Digital's philosophy centers on removing single points of failure, which includes layering human oversight onto their highly diversified, data-informed operations.
(Source：CoinDesk)