Dan Loeb: AI, a Key Competence at Third Point

Dan Loeb, founder and CEO of Third Point, a New York-based hedge fund, emphasizes the importance of artificial intelligence (AI) in the professional landscape. He asserts that the only way to become proficient in this field is to start using AI right now. This approach is shared within his team, which regularly exchanges best practices and ideas on integrating AI into their daily tasks.

During an episode of the podcast "Invest Like The Best," Loeb acknowledged that he underestimated the speed at which AI would disrupt certain companies. Although Third Point has made some successful bets against companies affected by AI, Loeb admitted that the firm misjudged AI's ability to upend parts of the market it thought were more resilient. He specifically mentioned that believing AI would not really affect a segment of the information services sector or that these companies had proprietary information was a mistake. This has been, according to him, a key investment lesson over the past year.

To address the uncertainty brought about by AI, Loeb encourages his team to use it directly. He insists that actively using AI is essential for developing skills in this area. Third Point employees, with varying levels of technical expertise, are encouraged to explore as many applications of AI as possible. Computer science experts, recruited for their AI skills, coach the team, but learning is encouraged at all levels.

Continuous improvement is an obsession for Loeb, both on an individual and organizational level. He cites Claude from Anthropic as a tool that rewards effort and commitment, enabling employees to become more autonomous and skilled. Loeb explains that the involvement and energy invested in using AI determine the benefits one can derive from it.

As part of this initiative, Third Point employees regularly share their experiences and how they integrate AI into their work. Some use AI agents overnight, while others, like Loeb himself, use it for specific queries. "You know, some people run agents all night and use tons of tokens. Others, like me, use it more for queries and things, but we are all very engaged," he stated.

Other companies are also following this trend. In July 2025, Ashley Stewart from Business Insider reported that Microsoft was considering incorporating AI usage into employee evaluations. Julia Liuson, head of Microsoft's developer tools division, emphasized in an internal email that AI is now essential to every role and level within the company. Similarly, in August 2025, Brian Armstrong, CEO of Coinbase, laid off some employees reluctant to adopt AI, affirming his commitment to this technology.