At a gathering of some of the region’s top young economic thinkers, investment strategist Joseph Plazo, made a notable appeal: in a world increasingly shaped by machines, human judgment remains essential.

From the financial heart of Southeast Asia — At the Asian Institute of Management, the tone was measured, the message clear: technology is no substitute for conscience.

Plazo, the founder of Plazo Sullivan Roche Capital, is widely regarded as a leading figure in machine-driven investing.

And yet, it was not code he chose to champion—but caution.

“Letting AI handle your trades is fine—but not your conscience.”

???? **A Technologist Who Questions the Tools He Built**

Plazo’s credibility comes not from critique, but from contribution. He has helped reshape modern investment practices through AI.

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“AI is excellent at execution. But poor at explaining ‘why’.”

He recounted a key moment during the COVID-19 crash: a bot under his firm’s control flagged a short position on gold—hours before an emergency Federal Reserve announcement.

“We intervened,” he said. “It processed the data. But ignored the danger.”

???? **The Importance of Human Oversight in Automated Systems**

In a reference to a 2023 Fortune roundtable, Plazo cited concerns that traders increasingly feel disconnected from the market—no longer making decisions, but following models.

“Friction slows trading, yes,” he said. “But it creates space for reflection.”

He proposed a decision framework, which he called **“Conviction Calculus”**, grounded in three guiding questions:

- Are we compromising our values for technical correctness?
- Have non-digital factors been considered—such as public sentiment, leadership experience, or history?
- Can we explain the reasoning behind this action—beyond algorithms?

???? **Why Joseph Plazo’s Message Resonates Across the Region**

Across Asia, investment in AI and fintech is accelerating. Countries like Singapore, South Korea, and the Philippines are becoming hubs for automated trading systems and tech-led asset management.

Plazo’s message? The pace is impressive—but governance must not be left behind.

“You can scale capital faster than character,” he said. “Which leads to systems that look smart, but act recklessly.”

In 2024 alone, two hedge funds in Hong Kong reported billion-dollar losses due to AI-driven decisions that failed to anticipate geopolitical shifts.

“Machines are fast—but they’re not wise.”

???? **Building Technology That Understands More Than Just Numbers**

Despite his warnings, Plazo remains optimistic about AI’s future—when developed thoughtfully.

His team is building what he described as **“narrative-integrated AI”**—tools that factor in not just financial data, but also context, tone, timing, and social dynamics.

“It’s not enough to replicate hedge funds,” he said. “We need systems check here that reason—not just react.”

At a private gathering after his talk, venture leaders from Tokyo and Jakarta approached Plazo about potential collaboration. One described his vision as:

“A necessary counterweight to unchecked automation.”

???? **Why Slowing Down May Save the System**

Plazo concluded with a sobering statement:

“The next major market failure won’t come from panic,” he said. “It will come from logic—executed too quickly, with no one questioning the outcome.”

No theatrics. No drama. Just a message every leader in finance should consider.

Because in the race to automate everything, what’s often lost is not just time—but responsibility.