Joe Tsai claims AI can completely replace equity research analysts
- At the CONVERGE LIVE event in Singapore, Joe Tsai discussed the capabilities of AI in equity research, claiming it may replace human analysts for mundane tasks.
- He emphasized that while machines could handle much of the research effort, humans would still be indispensable for their judgment and qualitative assessments.
- Ultimately, Tsai argued that AI could enhance jobs rather than eliminate them, positioning Alibaba to benefit from AI integrations.
In Singapore on March 12, 2025, Alibaba's Chairman Joe Tsai participated in CNBC's CONVERGE LIVE event, where he discussed the transformative potential of artificial intelligence in the finance sector. He asserted that AI could entirely replace equity research analysts when it comes to the generation of reports on companies like Nvidia and Apple. However, he clarified that the role of humans would still be essential for high-quality analysis where judgment and experience are required. Tsai noted that machines could handle mundane research efficiently, allowing human analysts to focus on more complex tasks that demand critical thinking. Moreover, he touched upon the evolving landscape of legal work, suggesting that while AI can assist in drafting legally binding documents, the nuanced understanding needed for effective counsel could never be wholly automated. Client relationships and strategic advisory roles are built on judgment and personal understanding, highlighting the importance of human involvement in these fields even as AI grows increasingly capable. Tsai also highlighted Alibaba's strong positioning to benefit from the rising dependence on AI solutions through its cloud computing infrastructure. As companies adopt AI, there is a growing demand for cloud services to support training models and running inferences. Experts have noted that Alibaba has made notable advances in its AI cloud business, contributing significantly to its profitability in the prior quarter. Looking ahead, Tsai expressed optimism regarding the internal operational uses of AI within Alibaba. The company plans to enhance advertising efforts on its platforms through AI innovations. Furthermore, Kuo Zhang, President of Alibaba.com, indicated that they expect all merchants on the platform to utilize AI tools by 2025, with more than half of their sellers already incorporating such technologies into their marketing and customer service practices. This shift underscores the impact of AI in rapidly transforming how e-commerce functions and highlights the necessity for businesses to adapt to these emerging technological capabilities.