AI Threatens Fund Managers: Study Claims 71% of Trades Predictable

• Harvard Business School study reveals AI can predict 71% of active mutual fund managers' trading decisions.
• Machine learning model used historical data to forecast buy, sell, or hold actions, raising questions about active management fees.
• Professor Lauren Cohen led research using a neural network to learn fund managers' trading patterns.
• Only 29% of decisions were unpredictable by AI, representing true human judgment and often leading to better performance.
• Study suggests AI will challenge traditional finance roles, pushing active management towards advanced research and customized strategies.