Between January and March 2016, a record $15 billion was pulled out from Hedge Funds, the second highest outflow since 2009, when the economy was going through a downturn. Investors were responding to the inability of some of the superstar fund managers to protect their assets. When we hear stories of AI robots taking control of our lives, the image of panic is ingrained in us, primarily contributed by Hollywood movies, but popular culture fails to measure the nimbleness of high net worth individuals. Their fickleness changes demand in a market and subsequently freezes hiring. Perhaps, super-specialization is not a good idea in domains where innovation is disrupting the daily responsibilities of a well-established hierarchy.
Babak Hodjat, one of founding members of Siri, before Apple acquired the team, shares how the AI Hedge Fund Managers will disrupt the space. Like any other AI agents, the trading agents or digital stock traders uses historical data, market sentiments, and risk factors, before purchasing an instrument in a segment.
After the purchase, instructions are also provided on the risk of the sector, the exposure, and the exit price. Unlike the annoying digital assistants that you saw with Microsoft Office in the 90s, the AI Hedge Fund Managers creates its own assistants, train them with real data sets and those who have proven their worth is replicated. The under performing agents are killed off, eventually creating a system of smart traders. Now imagine competing with thousands of AI traders. No amount of ‘The power of intuition and experience’ will work in the new reality. You will soon be irrelevant.
If you go by the track record of Siri, be comfortable in knowing that the disruption is 5-10 years away, and your super niche specialization as an Analyst for Hedge Funds is safe, but the problem is with the investments in AI. From 2013 to 2015, the investments have tripled from $700 million to $2.4 billion. The speed of learning and the lack of distraction makes AI agents a potent replacement for MBA analysts.
Another trend that would accelerate AI adoption is the productivity per employee numbers in the US that is set to fall by 0.2 percent, in 2016-17, first time after three decades of a year on year growth. Wage stagnation, pressure on companies to maintain profit margins and the rising costs means companies have to look at options other than incentivizing employees with Career Opportunities, Work/Life Balance, or higher autonomy. The pressure from shareholders to maximize return would lead to faster adoption of AI into the workforce.
Unless you are working in Oil & Gas or Mining where human, political, environment and market dynamics along with innovation in technology determine the future of the industry, don’t take an MBA based on the ‘carrot’ that with an MBA, you can climb the middle manager ladder.
There won’t be any ladder in a decade – the time when you would need to fetch the long-term return from an MBA.
The above post is an Excerpt from the Chapter: Big Data, AI & Future for MBAs (F1GMAT's Comprehensive MBA Research Guide)
2019 MBA Research Guide - Choose your MBA
F1GMAT's Comprehensive MBA Research Guide will teach you how to select MBA programs through a bottom-up approach.
Articulating your Post-MBA Goals and Career Path is the FIRST step. Which program will give you that hike in Salary, Switch in Career, Change in Location or Job Satisfaction?
We cover them all through our extensive analysis.
+ How to Choose the Best MBA Program: Factors to Consider
Define Post-MBA Goals
Pick your Path: Generalize or Specialize
Use Moral Algebra Method
Use Multi-Attribute Utility Theory
Understand the Top 5 Risks
Measure MBA Career Service Team's Effectiveness
Use Bookending to Calculate MBA Admission Chance
Use Net Present Value to Calculate MBA Return on Investment
Don't Fall for the Mere Exposure Effect
Best Practices to find the truth in MBA Information Session or MBA Tour
Comprehensive MBA Research Guide: Includes Top MBA Programs by 19 Specializations:
+ General Management
+ Operations Management
+ Supply Chain Management
+ Luxury Management
+ Information Systems
+ Hospitality Management
+ Leadership Development
+ Military &
+ Top MBA Program Ranking
Top 20 MBA Programs - Tuition Fee (2018)
Top 31 MBA Programs in United States – Total Cost & Salary (2017)
Top 60 MBA – GMAT and GPA (Average & Median)
Top 20 European MBA Programs - Tuition Fee, Total Cost & Salary
Top 20 European MBA Programs (Based on Actual Salary Increase)
Top 20 European MBA Programs (Short-term return on investment)
Top 20 Affordable European MBA Programs
Top 10 MBA in UK – Salary & Fee (2018)
Top MBA Destinations Based on Happiness Index
Top MBA Destinations based on Innovation Index
Top 10 MBA Job Markets based on Cost of living and Purchasing Power
Top MBA Destination: By Economy
+Comparisons - Top MBA Programs
Wharton vs. Columbia MBA (2018)
MIT vs. Stanford MBA (2017)
Haas vs. Ross MBA (2018)
Kellogg vs Ross MBA
Booth vs Wharton MBA
MIT Sloan vs Tuck MBA
IMD vs. INSEAD MBA (2017)
IIMA vs. ISB (2017)
+ MBA in France (2018)
Top Industries in France
Top MBA Programs in France
+ MBA in the UK (2018)
Top Industries in the UK
Top MBA Programs in the UK
Scholarships in the UK