The future is here. Supercomputers and artificial intelligence are paving the way for a new kind of investing. Robots, or highly sophisticated computers, are taking on the stock market with high success rates.
AI is changing the way business is conducted.
Less threatening than automation, AI works alongside humans as a support tool that helps businesses operate at higher efficiency levels. Compared to traditional software, AI is able to learn from situations and adapt to them.
AI makes a wider range of decisions than traditional software and breaks through programmatic thresholds that otherwise exist.
And now supercomputers are helping break the ice in investing and may help businesses in the future excel in investing.
Robots Taking on Wall Street
Wall Street is a prime example of complexity, yet AI has started to break into the field and is doing so in a big way. AI Powered Equity ETF was created to track and allow investors to invest in funds that use artificial intelligence to beat the market.
The ETF has gained 6.9% since its inception.
IBM’s Watson, a supercomputer, has also entered Wall Street with the Equbot and Watson AI Total US ETF. Watson’s power allows the fund to be “actively managed,” and there’s a quantitative model that the computer users to make picks.
Watson already powers several financial tools, including an analytical tool.
Fundamental analysis of stocks will be carried out by IBM’s Watson, which will use up to 10 years of historical data and apply recent data to make picks. Companies are ranked daily based on current trends, conditions and world events.
BlackRock, the largest money manager in the world, has decided to turn to algorithms and artificial intelligence to help manage many of the group’s actively managed funds. BlackRock’s automated trading products have been able to beat indexes and surpass human counterparts.
Large data sets allow computers to excel where humans cannot.
BlackRock claims that there are tasks AI can conduct that humans simply can’t. The ability to use AI alongside human intelligence is expected to change the way businesses decide to invest their capital.
AI is able to, as BlackRock explains, analyze satellite data of big stores in an effort to determine sales volumes. Internet search monitoring can also be conducted to analyze and predict sales volumes of companies. AI and Watson can analyze a forex article, read through forums, research stock picks and do it all in a fragment of the time it takes a human.
Near real-time analysis allows for AI to have the competitive edge in investing.
In the very near future, businesses may decide to invest with an AI fund that is actively managed through big data sets and changed based on current economic events.
The potential allows businesses to lower their risk of losing capital and increase their risk of being able to make money off of their investments.
AI’s Impact Reaching the World’s Biggest Industries
AI is impacting big industries around the world, and the reach of AI is going well past investments. The industries that are expected to or already are being impacted by AI are:
- Healthcare. Doctors and nurses are turning to AI to help analyze patient data, offer treatment options and even help with diagnoses. Cancer treatment and diagnosis is also being sped up thanks to the addition of artificial intelligence in the healthcare field.
- Agriculture. The agricultural industry is also changing thanks to AI. Deep learning through Blue River Technology enables farmers to better monitor livestock, pinpoint weeds and even manage their crops with higher efficiency.
- Sports. AI is also breaking into the sports world by helping coaches plan their strategies better. Player performance is being improved and game predictions are being done, too.
Customer interactions in the retail world are also being impacted. AI is able to find answers to consumer questions and will be a large part, suggested at 85%, of customer interactions by 2020.
That means businesses will be able to maintain smaller customer service teams, improve their customer service and do it within the next two years thanks to AI.
Deep learning and AI is also changing the shopping experience of consumers by making it faster, more efficient and easier to buy products. Price matching is even being done on-the-fly to ensure that consumers always get the best price for products.