BlackRock shelves unexplainable AI liquidity models
Risk USA: Neural nets beat other models in tests, but results could not be explained
Quants at the world’s largest asset manager have decided to shelve promising AI liquidity risk models because they have not been able to explain the models’ output to senior management.
“The senior people want to see something they can understand,” Stefano Pasquali, head of liquidity research at BlackRock, said at Risk USA on November 9, commenting on why the fund manager chose not to deploy two
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