The Human Factor Why Intelligence and Intuition Remain Crucial in Financial Machine Learning

Since the release of ChatGPT in November 2022, AI has dominated headlines, generating both excitement and debate. While large language models (LLMs) have showcased their transformative potential, they

Since the release of ChatGPT in November 2022, AI has dominated headlines, generating both excitement and debate. While large language models (LLMs) have showcased their transformative potential, they are not a one-size-fits-all solution to every AI challenge. Financial machine learning is one such area where more nuanced techniques—often driven by human intelligence—still hold sway.

The capabilities of machine learning models are ultimately bound by the skills, experience, and intuition of the humans who create and guide them. No matter how powerful the algorithm, without expert human oversight, the model risks misinterpreting data or falling short in real-world applications.

In this article, I aim to provide a comprehensive perspective on the interplay between human and artificial intelligence, particularly within finance. While AI has made significant inroads, there are inherent limitations that necessitate human intuition, especially in complex environments like financial markets. K…