The software engineer at Bridgewater Associates, LP, the world’s largest hedge fund, is developing a secret artificial intelligence project that will automate the company’s management, which is entirely dominated by robots. Ray Dalio, the company’s founder, called the project “The Book of the Future.”
But the company’s founders took the initiative to implement this futuristic idea. The new technology developed by the company will incorporate Dalyo’s non-traditional management methods into software systems. Allegedly, the system will send “GPS-style instructions” to employees, plan a clear schedule for employees to perform precisely like a machine, and arrange even fine-tuning when to call a customer. The system is currently under research and development. The exact details of its business are still being discussed within the company. Some details of the project are still a secret. An employee familiar with the project described it as “replicating Dalio’s brain with a computer.”
Dario’s leadership style is very different. In meetings in the company to record, the company encourages employees to criticize each other, people often discuss their own weaknesses. In his blog, Dalio wrote: “Criticism is popular and encouraging in the company, so there is no reason to talk behind the scenes.” And the performance of employees is also measured by a pile of data, and all this is up to Under the control of Rio. After automating the management model, even if Dario wouldn’t be employed by the company, the bridge fund he founded will continue to operate in accordance with his management model.
Bridgewater, which manages assets of up to $160 billion, is the largest of all hedge fund companies. According to LCH Investments, a company that invests client funds in hedge funds, Bridgewater’s profits are double the total profits of all competitors. According to the financial magazine “Institutional Investor”, Mr. Dario’s personal income alone reached US$1.4 billion last year. The “Future Book” software automation management, officially called “principal operating system” (abbreviated as Prios), will make the company’s management as systematic as the company’s investment process. The system’s input data comes from the personality test results of Bridgewater employees. In these tests, the managers passed a written test to determine their “hierarchy”, which was based on an unconventional score of the conceptual skills developed by Canadian psychoanalyst Elliott Jaques.
The test questions included “What is the biggest problem Bridgewater currently faces?” Those who can find long-term trends will score higher. Mr. Dalio had the highest test score and the company made this information public. Similarly, Bridgewater’s software determines that Mr. Dalio is the company’s most “trusted” employee in matters such as investment and leadership, which means that his opinion is even more important.
The ultimate goal is that the automated management system PriOS will be able to predict the outcome of the meeting before the meeting is completed and guide people to take certain actions throughout the day. The role of the company’s employees will no longer be to make individual decisions, but to design the system to make decisions, and to intervene when the system is abnormal. Within five years, Mr. Dalio’s goal is to make nearly three-quarters of management decisions up to Prios. Ultimately, office work will completely disappear and machines will replace humans.