Fund houses get picky over where to use machine learning

Buy-siders limit usage of deep learning techniques due to haziness over their inner workings

In aviation, a black box is an on-board record of flight data that can be crucial in tracing the causes of an aircraft accident. The black box is, in reality, painted bright orange; it is designed to be found, opened and inspected.

By contrast, black boxes in the finance industry are opaque repositories of complex algorithms and coding that are tough to break open and study. With more widespread adoption of artificial intelligence, investment managers are starting to ask themselves whether

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