Citadel, Bridgewater Associates and Man Group are expanding their use of artificial intelligence across investment research and operational processes, while warning that security risks and excessive reliance on automated systems could undermine investment decision-making, according to a report by Business Insider.

Speaking at a Bloomberg conference in New York, executives outlined how their firms are deploying AI agents to improve research efficiency and automate routine tasks. Some Citadel investment teams have developed AI versions of themselves capable of conducting independent research, while Bridgewater's AIA Labs is extending its AI-driven research capabilities and processes across the organisation.

Andrew Janian, Citadel's interim chief technology officer, said the firm maintains strict controls around its AI systems to prevent agents from operating outside designated environments. Aaron Linksy, a partner at Bridgewater and founding member of its AIA team, similarly warned that ensuring autonomous agents do not expose the firm to security or operational risks remains an unresolved challenge.

Executives also cautioned against treating AI as a substitute for investment judgement. Citadel encourages fundamental investment teams to use AI to challenge investment ideas and prepare for meetings rather than independently formulate investment theses.

Greg Bond, chief investment officer at Man Group, warned against what he described as "cognitive surrender", where employees become overly dependent on AI-generated outputs. He stressed that human judgement, collaboration and critical thinking remain essential to investment processes, particularly in financial markets ultimately driven by human behaviour.