“Automated Finance, Human Consequences: Plazo Urges Caution on AI in the Markets”

Inside the Asian Institute of Management, Joseph Plazo—founder of the algorithmic trading firm Plazo Sullivan Roche—broke the rhythm of praise for AI with a moment of reckoning.

From Manila, where financial optimism runs high — Plazo didn’t talk about speed or scale.

“Profit isn’t the only thing on the line. So is principle.”

???? **The Man Behind the Model—Now Questioning Its Impact**

He’s not critiquing technology from a safe distance. His firm’s AI systems have posted a 99% win rate across key timeframes and are in use by institutional clients across Europe and Asia.

And yet, his concern is clear: accuracy means little without accountability.

“AI can optimise a mistake to perfection if no one stops it.”

He shared a case from the early days of the pandemic. One of his firm’s bots flagged a short on gold just before the U.S. Federal Reserve issued an emergency policy shift.

“We overrode it. It was a machine doing math, not reading history.”

???? **When Pausing Is a Form of Leadership**

Traders are trained to move quickly—too quickly.

“In high-volatility moments, the pause is where leadership happens.”

Plazo introduced a framework he calls **“Conviction Calculus”**—three questions that must be asked before executing an AI recommendation:

- Does this decision align with our values—not just our strategy?
- Have we cross-checked this with human knowledge—not just system signals?
- Will anyone say, ‘This was my call,’ or just point at the machine?

???? **Asia’s Race Toward AI Could Be Missing Its Compass**

Across Asia, nations are investing heavily in fintech and AI-driven innovation. From Singapore to South Korea, the push toward automation is framed as economic strategy.

But Plazo’s question cuts deeper: “Are we building intelligence without wisdom?”

He cited the 2024 collapse of two Hong Kong hedge funds.

“No one made a mistake. But no one questioned the machine either.”

???? **A New Path: Machines That Listen as Well as Compute**

Plazo is not anti-AI. He’s pro-responsibility.

His firm is developing what he calls **“narrative-integrated AI”**—models that factor in geopolitics, tone, and social context alongside market data.

“Machines that don’t just predict, but understand.”

At a private dinner after the event, multiple venture capital leaders discussed collaborations.

One investor called Plazo’s talk:

“A blueprint for ethical AI in an unequal click here world.”

???? **What Happens When No One Says ‘Stop’**

Plazo ended with a thought that may echo across boardrooms:

“We won’t be victims of chaos—but of unchecked confidence.”

Not a warning against AI—but a demand for wisdom to go with it.

Because when machines take over the trades, conscience cannot be coded out.

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