AI isn’t ready to take over all the human aspects of trading, said Robinhood’s CEO.
In an interview with Bloomberg Wealth released on Wednesday, Vlad Tenev reiterated his view that people don’t always trade to make money and that there will always be a human aspect to business.
“Most of the time you’re not doing it just because you want to make money,” he said. “You also love trading and you’re you’re extremely passionate about it.”
He added: “I don’t think there’s going to be a future where AI just does all of your thinking, all of your financial planning, all the strategizing for you.”
Tenev, who cofounded the brokerage platform in 2013, said that AI could be a bigger platform shift than mobile and cloud technologies. He said that while every company will quickly become an AI company, AI won’t completely take over trading.
“It’ll be a helpful assistant to a trader and also to your broader financial life,” he said. “But I think the humans will ultimately be calling the shots.”
Tenev made similar remarks about how investors “legitimately enjoy trading” in an August interview with Axios.
On Tuesday, Robinhood announced it was building a social media platform where users can post their trades and track what other investors, including politicians, are buying or selling.
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Other CEOs are also wary of pronouncing AI the future of trading.
Ken Griffin, the founder and CEO of Citadel, said he doesn’t think AI will revolutionize the investment business.
“Do we use it in our investment business? A little bit, a little bit. I can’t say it’s been game-changing,” Griffin said in a May interview with Stanford Graduate School of Business.
“It saves some time. It’s a productivity enhancement tool. It’s nice, I don’t think it’s going to revolutionize most of what we do in finance,” Griffin added.
On the topic of AI and trading, Goldman Sachs CEO David Solomon has said that AI has been a big boost to productivity in the investing business.
In an interview with CNBC last year, he said that 40 years ago, when he started the banking business, it took six hours to compare two stocks. Now, it takes an instant, he said.
The firm has already launched ventures that could change how Wall Street makes deals. Louisa AI, a startup founded within the firm six years ago, helps bankers and investors analyze millions of articles and employees’ knowledge to identify deals.
