Addressing a curated group of business and engineering students at AIM, algorithmic fund pioneer Joseph Plazo called for a recalibration of priorities in the financial technology race.
From Manila’s premier business school — Plazo shared a message that resonated far beyond the lecture hall:
“Profit is a goal. Integrity is a mandate.”
???? **From Performance to Prudence: Plazo's New Message**
Plazo is no outsider critiquing from the edge.
His firm’s AI-driven systems boast a 99% win rate across diversified assets and are trusted by institutional clients across Asia and Europe.
“The best model still needs a moral compass.”
He cited a 2020 scenario where one of his bots advised shorting gold—mere hours before a Federal Reserve intervention reversed market sentiment.
“We halted the trade. The system processed indicators—but missed the policy shift.”
???? **Why Human Friction Still Matters in Finance**
Plazo addressed a trend increasingly seen in Asia’s financial centers: a growing dependence on data-driven execution at the cost of reflection.
“Friction is often seen as a problem,” he noted. “But it creates space for leadership.”
He introduced a framework his firm uses, called **Conviction Calculus**, structured around three key questions:
- Will this move preserve the firm’s reputation if it fails?
- What does experience say, not just the screen?
- If this fails, who takes responsibility—the model or the leadership team?
???? **Tech Is Moving Fast. Are Ethical Systems Keeping Up?**
Fintech investment in the region has reached unprecedented scale.
Plazo noted:
“AI governance must grow at the same pace as its power.”
He referenced two hedge fund collapses in Hong Kong get more info during 2024, driven by AI systems that misread geopolitical shifts.
“Without proper oversight, even flawless execution can create catastrophic outcomes.”
???? **Plazo Pushes for AI That Understands More Than Data**
Despite the warnings, Plazo remains committed to AI—when deployed responsibly.
His firm is developing what he terms **“narrative-integrated AI”**—systems that process not only market data but also intent, public tone, policy climate, and geopolitical direction.
“Context isn’t a luxury. It’s a safeguard.”
At a private dinner following the event, several institutional investors from Tokyo and Jakarta expressed interest in co-developing these ethical frameworks.
One executive called the model:
“A framework for risk-aligned growth in uncertain markets.”
???? **The Exit Thought: Crashes No Longer Begin With Panic**
Plazo ended with a quiet but forceful reflection:
“We won’t fall from chaos. We’ll fall from consensus—written in code.”
It wasn’t a rejection of innovation—but a recalibration.