Citadel's Ken Griffin Calls AI Replacing Hedge Fund Managers A 'Fantasy,' Arguing LLMs Are 'Not Smart' And Entry-Level Jobs Are In Trouble

Artificial intelligence (AI) might take your job, but the hedge fund industry isn't at risk. At least, that's if you believe what Citadel Founder and CEO Ken Griffin has to say on the topic.

“There are people that have a fantasy that large language models (LLMs) are going to tell you what stocks to buy. … It’s just a fantasy,” Griffin said.

To support his belief, Griffin argues that AI doesn't have the critical thinking skills necessary to be a successful hedge fund manager. "[LLMs are] not smart," he said. "They are very good thoughtfully regurgitating what is available to use on the worldwide web."

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Griffin said AI puts entry-level jobs at the most risk, singling out jobs at call centers.

Griffin can't be too worried if his job disappears. He owns 80% of his hedge fund, which has $63 billion of assets under management, helping to support his estimated $36.4 billion net worth.

But the average American has experienced heightened stress.

According to a survey by the American Psychological Association, 38% of American workers reported worrying about AI either making some or all of their work responsibilities unnecessary in the future. 

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Younger workers are particularly worried, with 44% of American workers aged 26-43 reporting anxiety over AI taking their job functions.

Griffin also shared his relatively modest expectations about AI's ability to cause sweeping changes, saying, “It’s not clear to me that we’re going to get the productivity gains out of AI that the markets are broadly hoping for” and that he does "not see some of the hoped-for game-changing outcomes that other people talk about."

Some experts, such as Swiss economics professor Richard Baldwin, aren't worried about mass AI-induced job loss. "AI won't take your job, it is somebody using AI that will take your job," he said.

His view implies that skills in AI are learnable, with a possible way to gain job security being to work for an employer that values investing in their employees by helping them upskill and learn new technologies. 

Those hoping to get into the hedge fund industry and have a chance to reach Griffin's success better hope his views on AI come true.

People with savings to invest can participate in the AI boom by investing in AI leaders such as Nvidia Corp. NVDA or Microsoft Corp. MSFT.

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