Differentiation is essential, especially in a highly competitive environment where everyone is looking for alpha, according to Matthias. He believes that AI can detect developments that look random to the human eye but actually have a hidden structure.

Although the learning process may be slow, AI can teach fund managers which building blocks work and which others do not. Matthias explains that machines will essentially search for codes to describe what is happening in the markets, generating insights that can be turned into investment alpha.

Find out more here (article behind paywall).