How Can AI and Big Data Be Used in Finance?
Ke Jie, the world top professional player lost to AI in January 2018. Investment professionals were watching this phenomenon both excitedly and anxiously: Is there a way AI will outrun people in investing business likewise?
AI and big data help and enable to:
1. Process data in new methods.
2. Process new data that wasn’t accessible or processable before.
Progress in natural language processing (NLP), computer vision, and voice recognition, allow us analyse more information automatically. In these spheres, AI already have greater performance than the average human.
What can be derived from these advances? More routine human tasks will be more often performed by AI.
Using the developments in machine learning and deep learning, it’s possible to discover new precise relationships based on this data. Most of today's data analysts uses linear programming techniques that create some limitations on variables and their intended relationships. Machine learning and deep learning potentially could get rid of those constraints.
How will investment professionals react to use of AI and big data in investing?
AI and big data lead us to the next steps of investing. Their wide use is probably to come up to big changes in the world’s industry.
Data can be processed in innumerable methods with machine learning and deep learning. This process allows us to discover relationships that could be unknown before.
Thriving future investment managers should be good in artificial intelligence and human intelligence as well. They should carry out investment and innovative technological functions.
The world is becoming more complex. Future investment professionals are expected to possess certain skills — special investment knowledge, technology and soft skills to get along with data analysts.
The key conclusion is obvious: AI is transforming investment management market, but this is not a mass extinction process for human investment teams. Rather, those investment professionals that are well adapting to changing conditions are going to thrive.