Institutional Investor - The Rise of the Tech Model May Soon Make You Obsolete 5-15min

Machine learning, artificial intelligence and other technological advances are transforming how pensions, endowments, sovereign funds and other institutions manage their assets. ... Will the financial services industry soon be challenged by technology entrepreneurs with little initial - or no exclusive - interest in the investment business? ... The hot technologies being developed today will offer unparalleled insight into the complex world around us, and the applications to the entire domain of finance and investing are countless. ... One example: The ascendance of nonbiological intelligence means computing systems will learn and process many types of inputs far faster than even the most-expert individuals. Once experts partner with the systems, these man-machine teams will become extremely competent at rules-based goal seeking. The days of using scarce computing resources to model complex systems - backcasting, calibrating, validating and eventually forecasting - are nearly over. ... a growing number of computing systems and technologies will empower people, organizations, networks and information in transformative ways. Service industries will be particularly affected, as they often require human, labor-intensive analytics and networking scale. But if technologies can help people network and analyze faster and better, some of the companies in the industries that provide these services will face an existential challenge. As with the rise of computing and the Internet, we expect new technologies in the coming decade to challenge service industries, such as finance, in ways that few people today appreciate.