Ken Griffin: AI Not Going to Be a Sport Changer for Funding Enterprise

Ken Griffin, the founder and CEO of Citadel, mentioned he does not suppose AI will revolutionize the funding enterprise.

“Will we use it in our funding enterprise? A little bit bit, somewhat bit. I am unable to say it has been game-changing,” Griffin mentioned in an interview that was revealed on the Stanford Graduate College of Enterprise’ YouTube channel on Thursday.

Griffin was chatting with college students as a part of Stanford’s “View From The Prime” interview sequence when he was requested how AI will have an effect on Citadel.

“It saves a while. It is a productiveness enhancement software. It is good, I do not suppose it’ll revolutionize most of what we do in finance,” Griffin added.

Griffin mentioned generative AI fashions don’t lend themselves effectively to funding evaluation as a result of they can not make long-term forecasts.

“So machine studying fashions work very well with issues which are extra static in nature. Studying a radiological report. However investing is about understanding how the longer term goes to unfold, and that is the place these fashions actually battle, proper?” Griffin mentioned.

“They work nice in short-term buying and selling, and short-term, I imply as in like the following 5 minutes. However when you consider the following 12 months or two years, they actually begin to crumble,” he continued.

To make sure, Griffin didn’t brush apart the affect AI may have on the world at giant. Within the interview, Griffin mentioned AI is “going to alter the world round you in plenty of profound methods.” He cited jobs equivalent to working at a name heart or translating paperwork disappearing as AI begins to take over these duties.

“So machine studying goes to come back with a price to society, a price that we have to perceive. How can we assist these folks land on their toes so we do not find yourself with a backlash in opposition to AI and machine studying,” Griffin mentioned.

Griffin’s view of AI in his business contrasts with that of many enterprise leaders throughout industries, from e-commerce and retail to tech and banking. JPMorgan’s CEO Jamie Dimon has been extra bullish on the affect of AI on his financial institution’s operations.

In April 2024, Dimon wrote in his annual letter to shareholders that JPMorgan envisions having generative AI “reimagine complete enterprise workflows.”

“Whereas we have no idea the total impact or the exact charge at which AI will change our enterprise — or the way it will have an effect on society at giant — we’re utterly satisfied the results can be extraordinary and presumably as transformational as a few of the main technological innovations of the previous a number of hundred years,” Dimon wrote.

Representatives for Griffin at Citadel didn’t reply to a request for remark from Enterprise Insider.