There has been a noticeable increase in interest in artificial intelligence (AI) and machine learning (ML), but not everyone seems convinced of their application to make life (or business) easier. . The latest to cast doubts on their effectiveness is Zerodha founder Nithin Kamath. Although he himself did not comment on the use of AI and ML in the brokerage industry, he shared what the “man behind the scenes” at his company – Kailash Nadh, the CTO at Zerodha – had to say about it. Nadh said most of the claims that “being powered by AI” is “superfluous marketing and pure hogwash”.
Kamath tweeted He is repeatedly asked how or if Zerodha uses AI or ML and he keeps saying that he “hasn’t found” any use cases yet. So Kamath decided to ask Nadh this question and shared Nadh’s response on Twitter.
Nadh said that Zerodha does not use any AI or ML system other than a basic image recognition tool for image processing during onboarding, and the company has not encountered any issues yet. He also said that many brokers openly advertised “powered AI,” but none of them reported use. This finding, he added, was based on Zerodha’s interaction with market regulator SEBI, which conducts a quarterly survey of the use of AI or ML by all brokers in India.
“Based on my interactions with the industry, I’m strongly inclined to say that most of the claims that ‘being powered by AI’ are superfluous marketing, pure hogwash. The gist of using AI or ML, if at all, are basic tools that can be trivially plugged in that aren’t even worth mentioning, let alone strong ‘powered by’ marketing. AI, ”Nadh said.
I keep getting asked how we use AI / ML / Blockchain to @zerodhaonline, and I keep saying that we haven’t found any use cases yet. This time I asked our man behind the scenes, Dr. K, to comment. I couldn’t help but share his answer ???? pic.twitter.com/IMEnnsWgBb
– Nithin Kamath (@ Nithin0dha) 25 November 2021
The CTO added in its memo that most of the “AI-driven mindsets” in the industry have been serious cases of “flawed assumptions, outright delusions, and often intellectual dishonesty.” Nadh also said he was “very skeptical” of anything called “AI powered”.
Zerodha is a large brokerage firm based in Bangalore. It started its activities in August 2010. The name of the company is a combination of the words zero and “rodha”, the Sanskrit word for barrier.