3:45–4:30 p.m.

The Role of Technology in the Investment Decision-Making Process

Claire Gallagher, CFA
​Quantitative Analyst
Orbis Investment Advisory Ltd.

Larry Cao, CFA, Moderator
Senior Director, Industry Research
CFA Institute

  • Technology and human judgement can work together to enhance investment decision making. At each step of the process (e.g., idea generation, research, stock selection, capital allocation, trading, and performance evaluation), there are tasks that computers are better able to handle and others where humans have the edge.
  • Computers are good at solving problems where the rules are constant and there’s a fixed number of outcomes, but humans are better at dealing with problems where the rules change, and the possibilities are infinite. Technology and AI excel in processing large amounts of data.  In particular, AI is better at spotting historical patterns and technology is also effective when analyzing performance results and identifying areas of potential improvement.
  • Humans are more creative, more flexible, and better at abstract thinking. This allows the human investor to imagine a wider range of potential outcomes, including situations where there has been a fundamental change (e.g., industry disruption, political changes) that might cause the future to differ from the past.
  • Specific stock examples offer perspective on how investors might use technology to complement traditional fundamental analysis.

Specialty Focus Area: Tech