How Emerging Markets Can address AI and Data Challenges

In the HKGCC's International Business Summit, Kenny Lam, CEO of Two Sigma Asia-Pacific, shares his views on the evolving regulations surrounding the deployment of advanced technologies and data usage. He also pointed out the challenges faced in the talent acquisition due to the growing emphasis and funding in AI technology. Following are the key insights:

In the emerging markets like Japan and China, advanced technologies and unstructured data to uncover alpha opportunities is transforming the investment activities. Despite being AI tools been integrated into various operations for long, the present AI technology demands innovation in the light of huge competition for recruitment. With research and development being focused over the years, Hong Kong has become a main research hub.

Harnessing Data and Technology for Investment Growth

By witnessing investing as a scientific process and trying to utilize the most significant amount of data, the most advanced technologies can apply to that data and create algorithms to find alpha. Hence, it's quite a unique process that's different from other types of investment firms. With that context, bringing it to Asia signifies it has a lot of upside. Considering Asia, It is one of the largest capital markets like Japan and China. There is a lot of unstructured data, which means the data are not processed but could do a lot with it and find value. Besides, there is an impressive amount of talent, not only from China but also from Hong Kong, Japan and everywhere. And this is a considerable upside. However, at the same time, it is essential to deal with evolving regulations on deploying technologies and using data.

Exploring AI Evolution Amid Talent and Resource Challenges

There is a lot of hype and uproar surrounding AI. It's a generic term and can be deployed by many sub-tools within AI for a long time. Considering natural language processing, users started it about 10 years ago. This is not an essential step in evolution, but it is a revolution that would disrupt day-to-day business. However, it needs to be to evolve continuously. There were two main changes in the last four or five years. Given the focus on AI and the investment in AI, recruiting talent is highly competitive. Nowadays, heaps of firms competing for talent in AI with computing resources have become more constrained.

Shaping the Future of Investment through R&D in Asia

It is imperative to put a lot more effort into the research and development to ensure building the best platform in the future. The process has started about 24 or 25 years ago. Investing should follow a scientific approach, reducing emotional influence as much as possible. Therefore, using advanced data technologies has always been the process and it’s very excited to be in Asia. Eventually, Hong Kong is an important place for the firm, which started about 13 years ago. Despite significant markets in Japan and Shanghai, Hong Kong continues to serve as the company's most prominent research base in Asia and a key location for attracting top talent.