Howard Marks: Great investors demonstrate strength in the weakest areas of AI.

Howard Marks, co-chairman of Oaktree Capital Management, said that artificial intelligence may, like index funds have done in the past, squeeze out many investors in the asset management business because of its outstanding performance in data absorption and pattern recognition. Marks wrote in a memo that fund managers who will be able to stay in the industry will be experts in areas where AI falls short. These areas include assessing management skills, the importance of new products, and other qualitative factors. Marks completed this memo with the assistance of Anthropic's Claude AI model, pointing out that humans are better at handling situations that cannot easily be fit into existing patterns.