Artificial intelligence will likely displace many investors from asset management, much like index funds have, according to Oaktree Capital Management co-chairman Howard Marks. In a Bloomberg Markets interview, Marks warned that AI's ability to rapidly process data and identify patterns makes it a formidable competitor to human investors.

Marks drew a parallel to how index funds have transformed the investment industry by offering low-cost, passive alternatives to active management. Now AI threatens to accelerate this disruption by performing similar analytical functions at scale and speed that humans cannot match. The technology's pattern recognition capabilities could make many traditional investment strategies obsolete.

However, Marks suggested that great investors possess qualities where AI remains weakest - judgment, creativity, and the ability to navigate unprecedented situations. These human strengths may become even more valuable as AI handles routine analytical tasks. The shift could redefine what it means to be a successful investor in an AI-dominated landscape.