These days, artificial intelligence is making waves again, according to The Voice of Business. A mysterious account named “Master” has swept the top go players in China, Japan and South Korea on several online platforms, winning 60 games in a row. Google has since revealed that Master is an improved Version of Alphago. It was a scene reminiscent of Arnold Schwarzenegger’s “I’ll be back” in terminator.
Go was once considered one of the last bastions of human intelligence because it is so complex that even an unrivals computer could not use up all of the 361 points on the board. Therefore, it is not difficult to imagine the shock brought to people by “Alpha Dog” killing top Go players.
Giiso Information, founded in 2013, is a leading technology provider in the field of “artificial intelligence + information” in China, with top technologies in big data mining, intelligent semantics, knowledge mapping and other fields. At the same time, its research and development products include editing robots, writing robots and other artificial intelligence products! With its strong technical strength, the company has received angel round investment at the beginning of its establishment, and received pre-A round investment of $5 million from GSR Venture Capital in August 2015.
What happens if AlphaGo plays the stock market?
Alphago is just the epitome of artificial intelligence. So will there be a stock dog with powerful artificial intelligence next? Ai expert Dai Wenyuan said that the financial and securities field will be the target of AI’s next “attack” : “I think there are two conditions to see whether AI will enter an industry, one is data, the other is value. So why we predict that the financial sector will be the next industry for AI to enter is mainly based on these two preconditions.”
In fact, one fact that surprises many people is that, in the eyes of some programmers, the stock market is easier than go. The variables and algorithms involved in the stock market may be less complex than go, the pinnacle of human intelligence, in the program itself. In fact, the seeds of artificial intelligence have already been sown in the field of financial securities. Especially in the field of securities, “fry the dog” intervention I am afraid has exceeded our imagination of ordinary people.
In the first half of last year, some foreign startups turned over all the stock trading in their hedge funds to AI without any human interference. Even more impressive, the AI engines responsible for various trading systems are said to not only analyze data, study reports, but even “get together” to make market predictions and then “vote” on the best market decisions. In this sense, the application of artificial intelligence in the field of securities is not familiar with those quantitative modeling, high-frequency trading and other simple operations.
Will AI wipe out traders and retail investors?
For now, artificial intelligence is becoming the new darling of finance, just as self-driving cars did. For example, intelligent investment management allows investors to hand over their money to a robot to manage without human operation. Around the world, large financial institutions such as Morgan, Goldman Sachs and BMO are all deploying intelligent investment services. In the domestic market, Internet financial companies are increasing their research and development on intelligent investment services. Intelligent investment management disperses investment through asset allocation mode set by computer, with high transparency, low cost and less interference from objective factors. Hu Jinhui, chief technology officer of CreditEase MiRA, cited the volatility in global financial markets on the day of Brexit as an example. “If you invested in an Italian index fund that day and lost 12 percent that day, you lost 12 percent that day. If you bought the Nasdaq that day, you lost more than 4 percent. If you bought the MiRA, even the riskiest, you lost 2.73 percent.”
In fact, through deep learning and evolutionary algorithms, AI can run its own systems to create virtual traders, and then genetically engineer these virtual traders to compete with each other in a trillion-level competition and elimination to winnow down the best traders. And on top of that, they have deep neural networks, and they might find features that humans can’t logically find, but do exist, and then they can buy and sell. That would be hard for existing traders and retail investors to match. But Bao Ran, an Internet expert, says the change also means human progress: “If you look at every technological revolution in history, from the steam engine revolution, to the electrical revolution, to the information revolution, and now the artificial intelligence revolution. Each technological revolution destroys many old industries and professions in the short term, but creates more new ones over the longer term.
For example, 100 years ago there was no profession: programmer, but now programmer is a common profession. In the era of ARTIFICIAL intelligence, many new jobs will be created.”
Ai brings hope rather than despair to the financial industry
Alphago’s defeat of the entire go world is shocking. And in many scenes of human life, the huge progress of computing power is also “crushing” the human once proud of all aspects of the financial industry will be no exception.
For the financial industry, powerful information reserve management ability, accurate rational analysis and high speed decision is the direction of the future, and this is the strength of ARTIFICIAL intelligence. For example, the average fund manager tracks less than 50 stocks individually, while ai big data can cover all stocks in the market. At the same time, ARTIFICIAL intelligence has stronger information processing ability, more diversified investment strategies, and can avoid human subjectivity, relatively more objective and fair.
Giiso information, founded in 2013, is the first domestic high-tech enterprise focusing on the research and development of intelligent information processing technology and the development and operation of core software for writing robots. At the beginning of its establishment, the company received angel round investment, and in August 2015, GSR Venture Capital received $5 million pre-A round of investment.
However, these advantages do not mean that the financial industry will be replaced by ARTIFICIAL intelligence, because even the most advanced AI trading algorithm systems are not able to think as creatively as humans. Therefore, the ideal future financial management should be a combination of human and ARTIFICIAL intelligence, using both forces simultaneously.
Therefore, from a comprehensive and forward-looking perspective, artificial intelligence brings the financial industry not despair, but hope, is to create a new financial ecology in the future, the key to the financial industry reform.