What AI can't replace in smart investing

Summary: Can AI replace the thinking investor? In response to Dhirendra Kumar’s note on AI and investing, readers across professions echoed one message: while machines gather data, only humans can judge wisely.

Artificial intelligence (AI) can summarise everything ever written about a company in seconds. But can it teach investors how to think?

When Dhirendra Kumar, in his latest Editor’s Note, argued that “the advantage in investing never came from gathering information, but from thinking about it better,” readers wrote back with thoughts as layered as the theme itself.

From college students to seasoned professionals, the consensus was clear—technology may change how we collect data, but it can’t replace how we make sense of it.

Machines gather, humans discern

“The message was really thoughtful,” wrote Venkataraman. “I was also thinking before reading this article that with so much information around, people can start investing using machines. But it is certain that no machine can replace thinking or deciding on vital things like investment.”

Vikas Jain agreed, warning that “people’s blind faith in AI and less on themselves” could lead to blind investing.

CA Prakhar Jain, an early reader every week, described the column as “relevant and timely,” noting that while AI research tools give the illusion of insight, “their inability to differentiate noise from quality is exactly what the investor must guard against.”

Old lessons, new tools

Several readers drew analogies from other professions. “With the advent of MRI testing, everyone thought history-taking and examination were no longer needed for diagnosis,” wrote Bipin Bhimani. “After the initial over-enthusiasm, it’s clear that age-old methods are still most useful. The same applies to investing.”

Velmurugan Sumathi praised the perseverance behind Value Research’s early days and saw continuity in mindset: “The same perseverance that built this ecosystem now guides us on how to use AI effectively without losing the human edge.”

Thinking, not prompting

For Tejas Kokcha, a CFA Level 2 student, the note hit close to home. “Nearly everyone in my college wanted to jump to ChatGPT for their projects with just one prompt,” he wrote. “I liked doing the stuff the old way—studying deeply, falling in love with the topic—though that made me the odd one out.”

Arvind Padmanabhan echoed this balance between human awareness and digital tools: “Data has been easily available for long. But what we do with it is important. The AI model alone won’t take care; people should think realistically and not rely on it blindly.”

Bicycles for the mind

Among the most detailed reflections came from Sidharth, who connected the piece to Steve Jobs’ analogy of computers as “bicycles for the mind.” He drew from a 1973 Scientific American study showing that humans on bicycles were more energy efficient than any animal—a metaphor Jobs used to explain how computers amplify mental capacity.

“Just as computers once removed the drudgery of manual work,” Sidharth wrote, “AI removes the drudgery of collecting and summarising data, freeing time for judgment. This makes discernment even more valuable.”

He even cited recent research from the National Bureau of Economic Research titled The Economics for Bicycles for the Mind, explaining that as tools automate implementation, human opportunity judgment becomes exponentially more valuable—precisely echoing the article’s central argument.

Information isn’t wisdom

Some readers reminded that while thinking is key, information gaps still exist. “Even with all the data online, information asymmetry persists,” observed Ajay Ashok. “Critical information is still held by a few, and insider trading continues. Skill asymmetry, instinct and imperfect markets mean analysis alone isn’t enough—judgment still matters most.”

Wisdom, not speed

“Critical thinking remains essential for sound long-term decisions,” wrote Ambermani Sundaresan, who finds each weekly column “grounded in simplicity and timeless wisdom.”

Others agreed that technology doesn’t negate experience. “Your perseverance has built this ecosystem,” said Rajendra Mehta. “Time-tested wisdom and insights distinguish your views.”

And as Ambar Sinha put it, “Very few of us extract the relevant information, process it and act with conviction. You make thinking interesting.”

The enduring edge

AI may summarise faster, but as readers reminded us, speed has never been the measure of understanding. The real advantage—in investing or any field—still belongs to those who pause, think and judge what truly matters.

Credits

Venkataraman • Vikas Jain • CA Prakhar Jain • Bipin Bhimani • Velmurugan Sumathi • Tejas Kokcha • Sidharth • Arvind Padmanabhan • Ajay Ashok • Ambar Sinha • Ambermani Sundaresan • Rajendra Mehta

Also read: How panic selling rewards the calm and steady

This article was originally published on October 06, 2025.