Human insight meets AI: The rise of systematic investing

IN THE fast-paced world of finance, the image of a seasoned investor poring over pages of company annual reports is rapidly giving way to a new reality. We are standing on the precipice of an investment revolution, where artificial intelligence (AI) is not just a tool but a transformative force, propelling the rise of a discipline known as systematic investing.

Systematic investing is the application of rules-based, data-driven models to analyse mountains of information – across structured data such as financial statements and stock prices, as well as unstructured data like news articles and satellite imagery.

These insights are then meticulously applied through predefined rules to select securities, manage risk and construct diversified portfolios.