In a recent exclusive interview, Charles Li, the rotating chairman of the Yabuli China Entrepreneurs Forum and founder of Micro Connect, delved into the future of finance amidst the AI boom. He characterized AI as "the smartest fool in the world," a tool of immense power that requires careful navigation. Li argues that we are currently at a turning point, shifting from a "macro-finance" model to a "micro-finance" era, where investment opportunities become more fragmented and numerous.
Addressing the ubiquitous question of an AI bubble, Li offered a nuanced perspective by dissecting the Chinese phrase for "bubble." He explained that "泡" (pao) represents a single, large bubble that bursts instantly upon touch, while "沫" (mo) refers to a vast expanse of foam that dissipates very slowly. In his view, most market cycles are more like the latter, a slow-releasing foam, rather than a single catastrophic pop. He contrasts this with the 2008 subprime crisis, which he sees as a true "pao" – the result of a long-term risk buildup within a single industry. With AI, its widespread utility and strong cash flow generation suggest we may only be seeing a fraction of its potential impact on humanity.
Li emphasized a critical distinction between merely "using" AI and truly "commanding" it. While using AI to improve efficiency has its limits, commanding it can transform a company's scale exponentially. He envisions a structure where AI manages production and sales, with humans at the helm, steering the AI-driven company. This means the "middle management" consists of humans directing AI managers, who in turn oversee other AI systems. He likens this to flying an airplane: AI is the powerful machine, but the human must always be the pilot. The responsibility ultimately rests with the human at the top, ensuring accountability in a chain where AI handles the operational load.
On the impact of AI on finance, Li believes it will initially be a significant boost to efficiency, not a disruption. Since finance is fundamentally based on people's money, the system must remain human-centric, with clear lines of accountability. True disruption would only occur if AI can demonstrably provide better risk control and investor protection than humans, but that would require new regulations and a societal consensus, a process that will take time. He positions his new project, "牛码新市" (Niu Ma Xin Shi), as a venture into uncharted territory. This platform uses AI to standardize vast numbers of commercial contracts into investable products, creating a new market for contract financing beyond stocks and bonds. It leverages AI for the groundwork while ensuring that humans retain ultimate responsibility.
Li elaborated on the concept of "micro-finance," a shift away from relying on long-term, large-scale predictions. This new model breaks down financing into smaller, shorter-term contracts based on real-time performance, making the financial market accessible to millions of small businesses. This approach requires investors to use AI to screen and select opportunities in bulk, rather than evaluating them one by one. He uses a restaurant analogy: instead of ordering one dish, an investor specifies their nutritional needs (risk, return, liquidity) and lets the "restaurant" assemble a personalized meal from a wide array of small ingredients. This transformation is driven by both an economic shift towards a more diverse and granular economy and the technological enablers of digitalization and AI, which allow for high-frequency operations and analysis on a micro scale.
Li concludes that the success of this new market hinges on collaboration and transparency. He has committed to publishing a development update on the 3rd of each month, covering new rules, whitepapers, or system updates, to build consensus and trust as they aim to reach a critical point for a full launch by year's end.