AI and the Future of Finance

Five centuries ago, the printing press redrew the map of who controlled knowledge. Now AI is doing the same to finance, driving the marginal cost of prediction so low that it amounts to a revolution. This book makes a sharp, compelling case that the real story of the AI revolution isn't the technology itself, but the shift in value that follows when prediction becomes cheap. The authors argue that wealth and value in the future of finance won't come from prediction alone, but from its essential complements: Data, Judgment, and Execution. Through vivid case studies across asset management, retail banking, insurance, and investment banking, the book shows how these three complements separate winners from losers, and lays out the most practical survival map for anyone looking to protect their organization and assets in the upheaval to come.

Preface Part I: How the Prediction Revolution Works Chapter 1. When Prediction Costs Nothing The Steel Alchemist of 1856 A New Era of Prediction: The AI Revolution AI as a General-Purpose Technology What Happens When the Cost of Prediction Falls New Questions Emerge Chapter 2. The Complements Revolution Complements and Substitutes Data: The New Oil Judgment: Turning Prediction into Wisdom Execution: Turning Prediction into Value The Fall and Revival of Substitutes: Adapt or Vanish A New Map of Power Part II: The Prediction Revolution in Finance Chapter 3. Asset Management: From the Guru's Gut to the Algorithm The Star System Era New Frontiers, Discovered by Machines The Model Factory Era How Complements Are Reshaping Asset Management Practical Barriers and How to Overcome Them From Individual Intuition to Systematic Edge Chapter 4. Retail Banking: From Face-to-Face to Data-First The Battle of Midway: Why Banking Giants Are Losing to Fintech Twilight of an Empire: The End of Branches and Relationships Personalization at Scale System Evolution: The Integrated Battle Platform What It Takes to Make the Transition Chapter 5. Insurance: From Payouts to Prevention The Law of Large Numbers and Reactive Processing Risk in Real Time The Preventive Services Ecosystem Insurance Reshaped The Coming Shift and Its Practical Hurdles Chapter 6. Corporate Finance and Investment Banking: Relationships in the Age of AI The Unique Ecosystem of Investment Banks What Can Be Predicted, and What Cannot Finding a New Equilibrium: Evolving Roles and Emerging Challenges Hadid's Lesson and the Open Road Ahead Part III: Life Under the New Order Chapter 7. What Separates Winners from Losers Why Conventional Success Theories Fall Short A New Framework: The Internal-External Four-Quadrant Matrix The Road to the Golden Zone Chapter 8. A New Map of Power The Hidden Engine Behind Power Shifts The Future These Forces Will Shape Cracks and Side Effects of the Power Shift New Frontiers Chapter 9. At the Crossroads Change vs. Progress When Change Isn't Progress Progress Is a Choice So What Should We Choose? A Journey with No End Epilogue Appendix: AI and the Audit Industry What Makes Auditing Different, and the AI Paradox Practical Implications The Public-Good Dilemma and the Value of Judgment References