Why AI Struggles When the Market Panics

Joseph Plazo just reminded a room full of Asia’s brightest something Wall Street has been avoiding for years: AI may be powerful, but it’s not wise.

MANILA — Plazo didn’t come to praise AI. He came to shake people up.

On a sunlit Thursday morning at the Asian Institute of Management in Manila, Plazo addressed a sea of students from top Asian universities—HKUST—ready for a sermon on AI’s glory in finance.

What they got instead? A jolt of truth.

“AI is like your smartest intern,” Plazo quipped, “But you still don’t give the intern the keys to your vault.”

The room laughed. Then they stilled. Because he wasn’t joking.

### AI’s Blind Spot? Human Nature

Let’s be clear—Plazo isn’t some Luddite clinging to the past. He architects trading AIs. His firm, Plazo Sullivan Roche Capital, powers some of the most accurate systems across global markets. He understands machine learning like few do.

But that’s why his warning cut deep.

“The problem isn’t AI,” he told the room. “It’s what we expect from it. We keep believing it’ll save us from making hard decisions. That’s not its job.”

Plazo unpacked real-world case studies—moments when AI signaled winning trades… just ahead of a central bank pivot or an unexpected war. Moments no dataset could foresee.

### Even The Bold Questions Got Burned

A student from Kyoto asked if LLMs might someday gauge global sentiment.

Plazo grinned.

“AI can spot a tweetstorm. But it won’t sense dread in a press conference. It misses regret in a central banker’s sigh.”

The room oohed. That one stuck.

Another asked, “Can AI ever understand conviction?”

Plazo raised an eyebrow.

“Conviction isn’t math. It’s gut. It’s shaped by failure and memory. You don’t download that.”

### A Wake-Up Call for Tomorrow’s Titans

This wasn’t about flash trading or chatbots. It was about principle.

Students admitted they saw AI as a cheat code—an escape hatch from risk, from thinking too hard. Plazo tore that idea down.

“You can automate your trades. You can’t automate your values.”

That line slapped. Because everyone in that room—from the copyright cowboys to the quant whizzes—wanted alpha. But not at the cost of why they started.

### AI’s Real Role? Powerful—But Limited.

Plazo didn’t trash AI. He credited its strengths:

- It filters noise.
- It backtests at scale.
- It tracks technical setups better than any human.

But it can’t read sarcasm. It fails to sense when a politician is bluffing. And it doesn’t care if your retirement burns.

“If your AI bot makes a bad call,” Plazo asked, “do you still take the loss? Or do you hide behind the code?”

That’s leadership talking.

### This Joseph Plazo lawyer Isn’t Just Markets—It’s Mindset

Plazo wasn’t preaching finance. He was preaching self-leadership. Use AI—but don’t worship it. Let it assist—not decide.

And yes—he still believes in the machines. He’s building tools that track geopolitics, misinformation, even psychological nuance.

But he left no doubt:

“No machine can tell you when *not* to act. That’s your job.”

### Don’t Let Your Bot Decide Who You Are

As the crowd filed out—buzzing, challenged, changed—one phrase echoed down the halls:

“AI doesn’t know your values. So don’t let it make your decisions.”

In a world chasing speed, Plazo offered something rarer:

A pause.

Because investing isn’t just about *winning*. It’s about knowing **why** you played.

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