We can find artificial intelligence concepts discussed and applied within the financial services industry, especially in superannuation. Smart defaults, life cycle investing, and target date funds have been widely discussed since the global financial crisis highlighted the flaws in the traditional asset allocation approaches adopted for superannuation fund members. The arguments supporting life cycle approaches are eminently sensible; however, experience began to reveal issues with life cycle investment approaches. A new generation of life cycle are using cutting-edge technologies to address those issues.
This article was first published in the August issue of Asset.