Source: The Next Web
The shift from AI-as-analyst to AI-as-teammate changes who bears responsibility for portfolio performance and creates new liability questions for firms that delegate judgment to models. When AI moves from executing investor instructions to proposing independent thesis and flagging opportunities without prompting, investment firms must manage algorithmic drift, model degradation, and regulatory scrutiny around decision-making authority that legacy compliance frameworks weren't built for. The firms that win will be those that build institutional trust around when and how to override algorithmic recommendations.