AI: Leveling the Divide Between Discretionary and Systematic Investing

Andrew Y. Chin | Chief Artificial Intelligence Officer

What You Need to Know
AB’s Chief AI Officer, Andrew Chin, explores AI advances in Leveling the Divide Between Discretionary and Systematic Investing: How AI Enables Breadth and Depth. The research paper, recently published by The Journal of Portfolio Management, includes these key findings:

• AI, especially large language models (LLMs), are dissolving the boundaries between traditional discretionary (fundamental) investing and systematic (quantitative) approaches.
• LLMs broaden the reach of discretionary investors by applying their insights over a larger universe of investment opportunities. They also extend the nuance and depth of systematic investors by quantifying the qualitive.
• In this new world, alpha generation will be driven by unique datasets, expert application and customization of LLMs through prompting and fine tuning, and the efficient delivery of actionable insights.
   

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About the Author

Andrew Y. Chin

Andrew Chin is Chief Artificial Intelligence (AI) Officer and a member of the firm’s Operating Committee. In this role, he leads the firm’s strategy to leverage AI in transforming the organization and driving better outcomes for clients and the firm. Previously, Chin was the Head of Investment Solutions and Sciences, overseeing the research, management and strategic growth of the firm’s asset-allocation, data science, index and tax-management businesses. From 2022 to 2023, he was the head of Quantitative Research and chief data scientist, developing and optimizing quantitative research and data science infrastructure, capabilities and resources across the organization. As the firm’s chief risk officer from 2009 to 2021, Chin led all aspects of risk management and built a global team to identify, manage and mitigate the various risks across the organization. He has held various leadership roles in quantitative research, risk management and portfolio management in New York and London since joining the firm in 1997. Before joining AB, Chin spent three years as a project manager and business analyst in global investment management at Bankers Trust. He holds a BA in math and computer science, and an MBA in finance from Cornell University. Location: New York