The Intersection of AI and Investing: A Transformational Moment

At the Cornell Business Forum in New York City on January 30, hosted by the Cornell SC Johnson College of Business, a group of industry leaders and academics discussed how AI is transforming investing, what it means for the future of financial professionals, and the ethical questions that remain unanswered. The panel, “Investing and AI: Innovation in Action,” dove into how AI is reshaping financial markets, career paths, and regulatory landscapes.

Angela Mwanza, MBA ’00, managing director at Rockefeller Capital Management and chair of the SC Johnson College Leadership Council, opened the event by introducing Andrew Karolyi, the Charles Field Knight Dean at the Cornell SC Johnson College of Business, with a humorously AI-generated introduction that dubbed him the “Captain America of Business Education.” Karolyi then took the stage, offering a brief update on the state of the college and expressing his appreciation for staff and event organizers.

AI experts on the panel included Maureen O’Hara, Robert W. Purcell Professor of Finance at Cornell; Helen Shan, MBA ’93, chief financial officer at FactSet; and Robert Fauber, MBA ’99, president and CEO of Moody’s, with CNBC senior market correspondent Dominic Chu ’99 moderating the conversation.

AI’s role in reshaping Wall Street

One of the central themes of the discussion was how AI is already moving financial markets. With algorithms now driving a significant portion of trading activity, panelists emphasized that AI’s ability to process vast amounts of data and identify patterns has made it an indispensable tool for investors.

“We are seeing a shift where AI is not just an analytical tool, but a fundamental driver of decision-making in financial services,” said Fauber. “Firms that fail to integrate AI into their workflows risk falling behind.”

Fauber shared one example of how his company has implemented AI on an early warning system that detects subtle risk indicators before they become significant issues. This capability allows for more proactive risk management and better credit assessments, providing clients with immediate insights that traditional models might miss.

Fauber explained that by integrating AI into their workflows, Moody’s has reduced the time required to analyze complex financial patterns while improving predictive accuracy. However, he cautioned that the effectiveness of such AI tools depends on transparency, rigorous oversight, and continual refinements to minimize bias.

Shan shared a similar experience, pointing out that AI is reducing inefficiencies in portfolio management and asset allocation. “The ability to automate data-driven insights is giving asset managers a significant competitive edge,” she noted. However, she cautioned that adoption remains slow in some areas due to the regulatory complexities surrounding AI-driven decision-making.

Regulation and the ethical implications of AI in investing

While AI presents exciting opportunities, it also introduces regulatory and ethical dilemmas. The discussion touched on the risks associated with AI-driven investing, including biased algorithms, data privacy concerns, and the potential for market manipulation.

One of the most pressing issues raised was the transparency of AI decision-making. “AI systems are only as good as the data they’re trained on,” O’Hara pointed out. “If there are biases in the data, those biases will be reflected in investment decisions, which could have far-reaching consequences.”

Fauber highlighted the importance of responsible AI governance, noting that firms must ensure compliance with evolving regulations. “The challenge for regulators is staying ahead of the rapid pace of AI development,” he said. “We need a framework that fosters innovation while ensuring market stability and fairness.”

DeepSeek, a cutting-edge AI model that has recently made waves in the financial sector, also became a focal point in the discussion around ethics. The panelists explored its potential implications, particularly in high-frequency trading and risk assessment. While some saw it as a game-changer that could improve efficiency and predictive capabilities, others raised concerns about its impact on market stability and competitive fairness.

Panelists also debated the need for stricter guidelines to prevent AI from being used in manipulative or opaque ways within financial markets. “With tools like DeepSeek, we have to be especially mindful of how AI-driven decision-making is audited and controlled,” O’Hara noted. “Without transparency, we risk losing trust in these systems.”

The evolving role of financial analysts

AI’s impact on financial careers is becoming more pronounced, too. The panel addressed the growing concern that AI could eventually displace traditional entry-level roles such as financial analysts and investment researchers.

O’Hara emphasized that while AI can automate many tasks, human expertise remains essential. “Future financial leaders will need to be well-versed in AI and machine learning techniques to remain relevant,” she said. “The ability to critically assess AI-driven insights and apply them in the real world will be crucial.”

Shan acknowledged the industry’s shift but maintained that AI will not replace humans outright. “It’s about augmentation rather than replacement,” she said. “AI can handle repetitive, time-consuming tasks, freeing up professionals to focus on higher-value work.”

Still, Fauber reinforced the importance of adaptability. “AI is evolving so quickly that the skills needed today may not be the same skills needed five years from now,” he remarked. “The key is to stay agile and continuously upskill.”

O’Hara discussed how Cornell is taking steps to prepare students for this AI-driven financial landscape. The SC Johnson College of Business has introduced new coursework focused on AI applications in finance, machine learning for investment strategies, and ethical considerations in AI decision-making. Partnerships with industry leaders provide students with hands-on experience through AI-driven case studies and simulations.

The future of AI and investing

Looking ahead, panelists shared their predictions on where AI is headed in the investment landscape. Shan predicted that AI-powered personalized financial services would become the norm, giving investors tailored insights at an unprecedented scale. “AI-driven analytics will enable hyper-personalized investing, where recommendations are uniquely customized based on an individual’s risk appetite, financial goals, and market conditions,” she said.

The panel made it clear that AI is not a passing trend—it is a fundamental shift to the investment landscape. While challenges remain, the opportunities are vast. Firms that embrace AI thoughtfully and strategically will be the ones that thrive.