The financial industry is no stranger to technological advancements and has been at the forefront of adopting new technologies to streamline operations and improve customer experiences. With the introduction of ChatGPT, financial institutions have been able to take financial management to the next level. As the adoption of AI continues to accelerate, what are some of the risks and scenarios this technology has in the financial ecosystem?

In this episode, Rusty talks with Jay Jacobs, U.S. Head of Thematics and Active Equity ETFs at BlackRock. Before BlackRock, Jay joined Global X ETFs in 2013 and founded the firm's Research and Strategy team, which originates the firm's insights on markets and ETFs. In his current role, Jay is responsible for the research and development of the Megatrends suite, driving the commercialization of these products, and managing product sales and marketing for the Megatrend franchise. Jay is also responsible for BlackRock's active equity and international ETF suites.

Recognizing that artificial intelligence will impact careers, the economy, and the markets, Jay talks to Rusty about one of the most popular generative AI today, ChatGPT. They also explore the impact of AI on the financial industry, how AI will affect U.S. stocks, technology, and interest rates in the future, and weigh some of AI's potential risks and scenarios.

Key Takeaways

[01:40] - Jay's professional background and his role at BlackRock.
[03:13] - How Jay defines risk.
[05:48] - What ChatGPT is and what it means for the future of AI.
[07:34] - What the industry has learned from ChatGPT's explosive growth.
[08:54] - The impact of generative AI on the financial industry.
[10:37] - Why disruptive growth opportunities are shrinking in the current interest rate environment.
[12:51] - The winners and losers from the rise of AI.
[14:47] - One of the best things Jay has ever done with ChatGPT.
[18:13] - Jay's thoughts on how AI will affect U.S. stocks, technology, and interest rates in the future.
[23:58] - A good use case scenario for artificial intelligence.
[26:41] - How innovation fits into the investment portfolio.
[28:52] - Other risk factors investors should consider.

Quotes

[03:28] - "One of the risks that people sometimes don't think too much about in the finance world is the risk of disruption, the risk that things can change unexpectedly." ~ Jay Jacobs

[06:16] - "ChatGPT is just one of a grouping of companies in the AI space called generative AI. These software programs can take simple inputs and turn them into something completely new." ~ Jay Jacobs

[27:18] - "Most people are generally underweight in innovation. They think they have innovation because the S&P 500 benchmarks tend to have a lot of exposure to technology and communication services. But when you look under the hood, a lot of that is previous-generation technologies, not truly innovative technologies that will disrupt and create entirely new markets." ~ Jay Jacobs

Links

Connect with our hosts

Rusty Vanneman

Subscribe and stay in touch

Disclosure

Access to the services presented is provided solely as a service to financial advisors. Orion Risk Intelligence does not make recommendations or determine the suitability of any security or strategy. Past performance of a security or strategy does not guarantee future results. Orion Risk Intelligence research and tools are provided for informational purposes only. While the information is deemed reliable, Orion Risk Intelligence does not guarantee its accuracy, completeness, or suitability for any purpose, and makes no warranties with respect to the results to be obtained from its use.

0667-OAT-3/6/2023

Weighing The Risks

Overview

Outlines

Mindmap

Transcript

Keywords

Highlights

Shownotes

AI Summary