In 1997, IBM's Deep Blue beat world chess champion Garry Kasparov. When asked about his reaction, Kasparov said that he believes that artificial intelligence has an advantage that it cannot recreate. The key factors contributing to his defeat were the loss of energy and the emotional toll that the match had inflicted on him. The AI was able to outsmart the chess grandmaster with its ruthless ability to instantly compute huge amounts of data without being mentally and physically exhausted. Financial advisers can learn from Kasparov's defeat at Deep Blue. Instead of going head to head with AI, consultants should work with it. Investing that has traditionally been about human decision making can be improved when technology seeks to help limit human error.
We are not programmed to process huge amounts of information in an efficient, efficient and neutral way over time. Whether we decide whether we should sacrifice a piece on the chessboard or invest in stocks, people tend to make decisions shrouded in conscious and unconscious biases. In the investment world, where markets are volatile and can sometimes engulf people, removing emotions can help improve decision-making and ultimately a person's financial well-being. .