Can A.I. Improve Investment Results? With Rob Arnott, Founder & Chair of Research Affiliates.
Money Maze Podcast
Money Maze Podcast
4.9 • 238 Ratings
🗓️ 30 April 2026
⏱️ 39 minutes
🧾️ Download transcript
Summary
Rob Arnott, Founder & Chair of Research Affiliates, discusses where AI works well & can assist across the money management ecosystem, the risk of ‘AI hallucination’ & over-reliance, quant vs human judgement, and the future of work.
Amidst the volumes written about AI’s impact on the business and investing worlds, we wanted to ask some specific questions about adoption, learning, implementation and limitations within the investing universe.
We asked these questions of Rob Arnott, founder of Research Affiliates and a previous guest, whose firm is steeped in data, systematic disciplines and empirical evidence. In a compelling and engaging conversation, Rob discusses why common sense can beat data, how AI can hallucinate, its creative limitations, but its unequivocal potency in improving multiple areas of the investing business.
Finally, when asked for his convictions across markets, he discusses the exceptional value in US small vs large cap equity!
The Money Maze Podcast is kindly sponsored by J.P. Morgan Asset Management*, IFM Investors, World Gold Council and LSEG.
*During the episode we cite J.P. Morgan Asset Management as Europe’s leading active ETF provider by assets under management. This is sourced from J.P. Morgan Asset management and Bloomberg, data as of 30 March 2026.
Transcript
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| 0:00.0 | I view AI as a very powerful tool. |
| 0:05.0 | I would say the willingness to embrace AI is partly correlated with Chihuah de Vier. |
| 0:11.0 | If you love life and love adventure, you can embrace AI. |
| 0:17.0 | AI doesn't mean a better product. |
| 0:20.0 | How you use AI can mean a better product. How you use AI can mean a better product. Turning it over to |
| 0:25.8 | AI, it's not ready for that prime time. I would say the world is always changing. Technological |
| 0:33.7 | innovations always kill millions of jobs. This will be no exception. |
| 0:39.3 | Technological innovation creates millions of jobs. |
| 0:43.3 | Be alert to those opportunities. |
| 0:46.3 | But if you go back over the last 30 years, what you find is that the small companies |
| 0:52.3 | have actually had about 2% per-am faster growth than the small companies have actually had about 2% per am faster growth than the large companies. |
| 0:58.7 | Today, we're starting a interesting series of conversations with some of the world's leading investors, |
| 1:06.0 | very specifically around what I have dubbed beyond human judgment. |
| 1:12.7 | Can AI improve investment results? |
| 1:15.4 | As we know, lots of people have lots of opinions and they may be worthy and well-founded, |
| 1:19.1 | but I think we are in the fog of investment uncertainty with regard to AI. |
| 1:24.5 | And as I looked through previous guests, one name stood at, and that was Rob Arnott, |
| 1:30.8 | who in June 24, appeared on the Money Made's podcast and talked widely and broadly, and having listened to |
| 1:37.1 | the show again yesterday, with some degree of accuracy about what was going on in the markets, |
| 1:43.6 | what you expected to unfold. |
| 1:46.0 | Your firm, research affiliates, says on the tin that it runs systematic investment strategies |
| 1:52.1 | based upon theory and supported by empirical evidence, which provides opportunity for improved |
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