In this Topic Deep Dive, Cyrill Moser, Head Provider Management at Zwei Wealth, speaks with Diego Föllmi, CEO of Hérens Quality Asset Management (HQAM), about how artificial intelligence is changing investment research and what this means for quality investing.
AI can process company filings, earnings transcripts, traditional data feeds and alternative data much faster than before. As one example, HQAM integrates alternative data such as satellite, web-scraping and sentiment data into its fundamental research and uses AI to accelerate the screening of the MSCI World.
Yet faster access to information does not remove uncertainty from investing. Investment decisions still require context, experience and accountability. AI can enhance the research process, while investment conviction and final decisions remain human.
Why human judgement matters
As powerful analytical tools become widely available, access to information becomes less of a differentiating factor. The way information is interpreted therefore becomes increasingly important.
How durable is a company's competitive advantage? Is management allocating capital intelligently? Which assumptions are already reflected in the price? A clear investment philosophy and differentiated questions provide the framework for turning information into investment decisions.
Technology evolves, investment principles remain
The tools available to investment managers are changing rapidly. The fundamental principles used to assess quality remain consistent: sustainable cash flows, attractive returns on capital, intelligent capital allocation and defensible competitive positions.
Microsoft provides an example discussed in the Topic Deep Dive. Its evolution from on-premise software to cloud services and now AI infrastructure illustrates how an established quality company can adapt as technology changes.
Does AI strengthen the case for quality investing?
Rapid technological change puts characteristics such as adaptable management, financial strength, pricing power and the capacity to reinvest into sharper focus. This also changes the way investors can frame the question. Instead of focusing solely on which companies will benefit directly from AI, they can consider which companies can adapt successfully to an AI-driven world.
What remains distinctly human?
Responsibility and accountability remain at the heart of investment management. Investors ultimately have to decide which risks to take, which assumptions to challenge and when new evidence requires a change of view. AI can provide information and analytical support. Turning those insights into an investment decision still requires human judgement.
Key takeaways
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AI accelerates investment research and information processing.
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Human judgement remains essential when making decisions under uncertainty.
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A clear investment philosophy becomes increasingly important as technology becomes more widely available.
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Quality characteristics can help companies navigate technological change.
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Responsibility for investment decisions remains human.
As Diego Föllmi summarises it: «AI changes the process. Economics determines the outcome.»
