The post Citadel founder says generative AI has yet to boost hedge Funds appeared on BitcoinEthereumNews.com. Billionaire Ken Griffin, CEO of Citadel, has expressed skepticism about the impact of generative artificial intelligence (GenAI) on hedge fund performance. Griffin says that GenAI has not yet delivered the anticipated market-beating returns. Speaking Wednesday at the JPMorgan Robin Hood Investors Conference in New York, “With GenAI, there are clearly ways it enhances productivity, but for uncovering alpha, it just falls short.” Griffin’s remarks reflect a broader industry perspective. Umesh Subramanian, Citadel’s CTO, stated earlier this year that achieving lasting alpha would still be challenging, even with a reliable quantitative trading AI that could backtest its own decisions. “In a world where the AI was making the trading decisions, everyone would know what it would do,” said Subramanian. He added that true alpha exists at the frontier of innovation—“that is where human beings come in.” Amidst the AI hype, Subramanian noted that AI is a tool rather than a revolution and that it’s not even that new. He continued to say that Citadel’s quant traders have used machine learning for 10 years: “Google came out with tensor flow and within like a week we put that to use to make money.” Griffin believes AI is unlikely to displace that many people as projected Griffin has made similar remarks in the past, suggesting that AI’s usefulness in analyzing investments is only modest and that fears of mass job losses are overblown. Speaking at the conference, he emphasized that generative AI is unlikely to spark a radical transformation. “It is going to have some effect, but the effects are not transformative and they’re going to be different across sectors,” he said. AI has motivated US companies to invest more in technology and increase the value of CTOs, hastening shifts that were previously stalled, he added. However, in a surprise move, Citadel actually… The post Citadel founder says generative AI has yet to boost hedge Funds appeared on BitcoinEthereumNews.com. Billionaire Ken Griffin, CEO of Citadel, has expressed skepticism about the impact of generative artificial intelligence (GenAI) on hedge fund performance. Griffin says that GenAI has not yet delivered the anticipated market-beating returns. Speaking Wednesday at the JPMorgan Robin Hood Investors Conference in New York, “With GenAI, there are clearly ways it enhances productivity, but for uncovering alpha, it just falls short.” Griffin’s remarks reflect a broader industry perspective. Umesh Subramanian, Citadel’s CTO, stated earlier this year that achieving lasting alpha would still be challenging, even with a reliable quantitative trading AI that could backtest its own decisions. “In a world where the AI was making the trading decisions, everyone would know what it would do,” said Subramanian. He added that true alpha exists at the frontier of innovation—“that is where human beings come in.” Amidst the AI hype, Subramanian noted that AI is a tool rather than a revolution and that it’s not even that new. He continued to say that Citadel’s quant traders have used machine learning for 10 years: “Google came out with tensor flow and within like a week we put that to use to make money.” Griffin believes AI is unlikely to displace that many people as projected Griffin has made similar remarks in the past, suggesting that AI’s usefulness in analyzing investments is only modest and that fears of mass job losses are overblown. Speaking at the conference, he emphasized that generative AI is unlikely to spark a radical transformation. “It is going to have some effect, but the effects are not transformative and they’re going to be different across sectors,” he said. AI has motivated US companies to invest more in technology and increase the value of CTOs, hastening shifts that were previously stalled, he added. However, in a surprise move, Citadel actually…