Howard Marks Says Great Investors Are Strong Where AI Is Weakest

Artificial intelligence will probably push many investors out of the asset management business, the same way index funds have, because it is so adept at absorbing data and seeing patterns, according to Oaktree Capital Management co-chairman Howard Marks.

The money managers who remain in the industry will be expert in areas where AI lags, such as assessing the skill of management, the importance of a new product, and other qualitative factors, Marks wrote in a note on Thursday. They will also be better at navigating situations that don’t easily match prior patterns, according to Marks, who wrote his note with help from Anthropic’s Claude AI model.