Last year, the market was again led by mega-cap growth and tech stocks. With the economic winds shifting, a rotation out of growth and into value might finally be in store.
In the Financial Services & Fintech sector, the potential shift away from high-growth tech could impact the deployment of AI-driven solutions for fraud detection, algorithmic trading, and personalized financial advice. Fintech companies may need to re-evaluate their investment strategies and focus on more sustainable AI applications that deliver immediate and measurable value, rather than relying on speculative growth.
Fintech companies utilizing AI for services like robo-advising or algorithmic trading need to continuously monitor and update their models with real-time data to account for shifting economic conditions. This includes increased investment in data acquisition, model retraining infrastructure, and potentially the development of hybrid AI models that can adapt to both growth and value environments. Efficiently adapting AI models to this change will be critical.