Ken Griffin, founder of multi-strategy hedge fund major Citadel, has expressed scepticism over the ability of generative artificial intelligence (GenAI) to help hedge funds outperform the market, according to a report by Bloomberg.

Speaking at the JPMorgan Robin Hood Investors Conference in New York, Griffin said that while GenAI can enhance productivity, it “just falls short” for uncovering alpha.

Griffin, who founded Citadel in 1990 and oversees a $69bn hedge fund empire, noted that the technology has not replaced the meaningful research conducted at Citadel. He added that generative AI is unlikely to create widespread, profound changes in the hedge fund industry, and its impact will be uneven across different sectors.

The Citadel founder also highlighted how AI is driving corporate America to invest in technology and elevate their chief technology officers, effectively pushing companies to implement improvements that should have been made over the past 25 years.

Griffin’s comments reinforce his previous warnings that AI remains a limited tool for investment analysis and is unlikely to replace human expertise in the near term.