“AI Is Winning Trades. But Can It Lead?”
“AI Is Winning Trades. But Can It Lead?”
Blog Article
At the Asian Institute of Management, one of Southeast Asia’s top business schools, Joseph Plazo—founder of AI investment firm Plazo Sullivan Roche—offered a message rarely heard in boardrooms today: pause.
His technology powers some of Asia’s most reliable portfolio strategies.
And yet, he stood in front of the next generation of business leaders to say:
“We didn’t automate strategy. We automated speed. That’s not the same.”
???? **The Architect Who Questions the Architecture**
Plazo is not retreating from AI—he’s refining how it’s led.
“Optimization is not orientation,” he said. “A model may execute flawlessly, yet move the organization away from its mission.”
He recalled a moment in 2020: a bot under his direction flagged a short on gold—hours before the Federal Reserve’s emergency announcement.
“We reversed the trade. It processed the pattern. But missed the policy.”
???? **The Discipline of Slowing Down**
Plazo introduced a concept he now teaches internally: **Strategic Friction**.
“Deliberation protects reputation,” he said. “Friction isn’t inefficiency—it’s discipline.”
He then outlined **Conviction Calculus**, a leadership-level framework for decision validation in AI-assisted organizations:
- What does this say about our organization’s long-term identity?
- Has senior leadership had a voice before execution?
- Will we own the outcome if it fails?
???? **The Scaling of Systems Must Be Matched by Strategic Intent**
Plazo pointed to Asia’s surging fintech sector—with massive investments in algorithmic trading and automation infrastructure from Singapore, South Korea, and the Philippines.
But he cautioned:
“Governance is lagging behind growth.”
He referenced recent collapses of AI-driven hedge funds in Hong Kong in 2024, where systems failed to interpret macroeconomic risk.
“The code executed flawlessly. The oversight didn’t exist.”
???? **Plazo’s Vision: Narrative-Integrated AI**
Plazo is now here advancing what he calls **“narrative-integrated AI”**—systems that integrate geopolitical signals, regulatory context, intent, and human tone into algorithmic output.
“Strategy lives in story, not just numbers,” he said. “AI must learn to read both.”
Following his talk, venture firms from Tokyo and Jakarta began discussions on enterprise-level governance systems for algorithmic infrastructure.
One executive called the talk:
“A boardroom blueprint for AI era decision-making.”
???? **What Happens When No One Says 'Wait'?**
Plazo closed with a sobering truth:
“Flawless execution without intent can still cause systemic damage.”
The message was clear: AI may dominate execution, but humans must lead intention.