Industry News: Machine Learning and Artificial Intelligence News November 13, 2017

November 13, 2017

AI will assist creative professionals, not replace them

…The impact of artificial intelligence on creativity and design is top of mind for creative professionals. AI will undoubtedly accelerate the rapid pace of digital transformation and change the way we work, live, and play at a scale the world has never experienced before.

Naturally, we should expect profound changes across many industries and employment categories. But we shouldn’t fear them. For all the disruption caused by technolo…
2017-11-10 00:00:00 https://venturebeat.com/2017/11/10/ai-will-assist-creative-professionals-not-replace-them/

CloudQuant Thoughts: For the past few years the Kershner Trading Group traders have used our backtesting service to prove out their quantitative trading ideas. In our case they have used AI to prove out their creative process. We are now seeing this with Crowd Researchers who are developing ideas about trading.

In a recent Quora post, a prospective trader proposed a new trading strategy. We took their idea and used our backtesting engine to prove it wouldn’t be a good trading strategy. See Tayloe Draughon’s strategy review on Quora. In this case, we used AI to assist the creative process to disprove an idea.

Bad Trading Strategy

We have been able to use the backtesting AI to prove a trading idea as shown in the following breakout strategy idea.

Improved Breakout Strategy

Digital and Online Learning: A New Way to Pursue a Skill

…Hello, everyone! In my last article, I talked about what artificial intelligence technologies can do, that traditional technology cannot do. There is a number of different artificial intelligence techniques and algorithms that will help in achieving automation and creating intelligent machines, but that is not the case with traditional technologies. Traditional technologies such as Java, C++, C and others do not have such high feasibility in order to build smart systems. Thus…
2017-11-06 09:22:37+00:00 http://technoitworld.com/digital-online-learning-new-way-pursue-skill/#respond

CloudQuant Thoughts: We are seeing many people pick up Python as a new skill. It is allowing people with skills in other areas, like trading or portfolio management, become proficient in programming. They are able to make the transition from “click trading” to algorithmic trading easier.

Grasping Big Data Gives Investing Edge With ETFs, Risk

…Understanding the capabilities and disruptive threats of big data is a must for all sophisticated finance professionals today. This article considers the development and the current state of Big Data Finance, as it specifically relates to investment advice, with an application to ETF investing.

Big Data Finance is a revolution as well as an evolution coming to prominence over several decades. Chartists and other technical analysts since at least the 1920s have…
2017-11-08 00:00:00 http://techcenter.thinkadvisor.com/2017/11/08/grasping-big-data-gives-investing-edge-with-etfs-r

CloudQuant Thoughts: We are seeing AI utilizing both historical big data and streaming data to change the way that automated trading and quantitative finance is being successfully implemented.

How AI Redefines Customer Service

…By 2020, Customer Experience is predicted to overtake product and price as the number one differentiator among businesses. Companies wishing to stay ahead are taking note and increasingly turning to artificial intelligence (AI) to meet consumers’ growing demands. According to a recent study by Oracle, nearly 8 out of 10 businesses have already implemented or are planning to adopt AI as a customer service solution by 2020. Gartner predicts that by this same year, customers will manage 85% of their relationships with an enterprise without interacting with a human.

A generational shift is driving these changes. Mille…
2017-11-08 06:00:28+00:00 https://www.topbots.com/solvvy-how-ai-redefines-customer-service/

CloudQuant Thoughts:  Customer service is already utilizing Natural Language Processing to create bots to respond to customers. We expect to see more of this.

Beyond Backpropagation: Can We Go Deeper Than Deep Learning?

…Deep learning almost single-handedly made “AI” a buzzword in research labs, corporate board meetings, the stock market, and the homes of digital consumers. A branch of machine learning that uses artificial neural network structures to enable computers to learn, deep learning is responsible for recent performance leaps in technologies such as natural language processing, audio recognition, computer vision, autonomous vehicles, drug design, and advanced recommendation engines. The approach is also behind much of the tech world’s latest batch of milestone products: from Amazon Ech…
2017-11-09 06:00:47+00:00 https://www.topbots.com/deeper-than-deep-learning-beyond-backpropagation-geoffrey-hinton/

CloudQuant Thoughts:  Many trading models already utilize Supervised Learning in the CloudQuant environment.

After $2.95M round, corporate deal ensures word-of-mouth marketing for RiskGenius

…Founded in 2012, RiskGenius — previously known as ClaimKit — grew from an initial concept focused on improving insurance claim documentation to now an artificial intelligence platform for policy automation.

“RiskGenius has a bigger market potential,” he said. “ClaimKit solved a niche problem for people, but RiskGenius is focused on a huge, nasty problem that is literally costing people hundreds of millions of dollars, and we are the only people out there solving it.”


2017-11-12 14:30:43-05:00 http://www.startlandnews.com/2017/11/after-2-95m-round-corporate-deal-ensures-word-of-mouth-marketing-for-riskgenius/

CloudQuant Thoughts:  Congratulations. We weren’t familiar with RiskGenius before so will spend some time to learn about them.

Robocops can’t tackle online crime without human assistance

…s are qualified. The ISACA predicts that this lack of qualified applicants will lead to a global shortage of 2 million cybersecurity professionals by 2019.

In response, many companies are turning to artificial intelligence to pick up the slack. This raises a very important and expensive question: Are robocops ready for the job?

Training and supervision are paramount

One of AI’s apparent benefits is in providing authentication without the need for human involvement. Monitoring of implicit data points (i.e., a user’s environment, or geo-location), device characteristics (metadata of the call), biometrics (heartbeat…
2017-11-11 00:00:00 https://venturebeat.com/2017/11/11/robocops-cant-tackle-online-crime-without-human-assistance/

CloudQuant Thoughts: The section on eliminating “False Positives” is worth review. Every algorithmic developer should be thinking about eliminating false positives in their applications. In algorithmic trading we see the better algos regularly reviewing trades that their algorithm chose to make that have proven less profitable.

3 different types of machine learning

…By Sebastian Raschka, Michigan State University.

If you’re new to machine learning it’s worth starting with the three core types: supervised learning, unsupervised learning, and reinforcement learning. In this tutorial, taken from the brand new edition of Python Machine Learning, we’ll take a closer look at what they are and the best types of problems each one can solve.

Learn more about the algorithms behind machine learning – and how to build them in Python Machine Learning …
2017-11-03 00:00:00 https://www.kdnuggets.com/2017/11/3-different-types-machine-learning.html

CloudQuant Thoughts: Trevor Trinkino, a quantitative analyst and trader at Kershner Trading Group recently put together an introduction to Machine Learning utilizing CloudQuant and Jupyter Notebooks.  His video is worth review.

Tech stars split over AI: threat or salvation?

…”We need to be aware of the dangers.” A warning from Professor Stephen Hawking for the world’s leading tech experts. That the emergence of artificial intelligence could be the “worst event in the history of our civilization”. “We need to learning, beyond the theoretical discussion of how AI should be, and take action and plan for how it can be.” Hawking is concerned the tech could lead to powerful autonomous weapons and be used to oppress people. Speaking at Web Summit in Portugal. AI is the hot topic here. The scientist behind Sophia the Robot, Ben Goertz…
2017-11-10 00:00:00 http://www.reuters.com/video/2017/11/10/tech-stars-split-over-ai-threat-or-salva?videoId=372946191&feedType=VideoRSS&feedName=Business&videoChannel=5

CloudQuant Thoughts: Every technology has downsides. Fearing innovation isn’t what propels us forward.

Nvidia CEO: Gaming will be huge, but so will AI and data center businesses

…ellar quarter for the three months ended October 31. Nvidia had $2.6 billion in revenue in the quarter, and $1.5 billion of it came from graphics chips for gaming PCs. But the company’s investment in artificial intelligence chips is paying off, with data center growing beyond $500 million in revenue for the first time.

Jensen Huang, CEO of Santa Clara, California-based Nvidia, said his company started investing in AI seven years ago, and that its latest AI chips are the result of years of work by several thousand engineers. That has given the company an edge in AI, and other rivals are scrambling to keep up, he sai…
2017-11-10 00:00:00 https://venturebeat.com/2017/11/10/nvidia-ceo-gaming-will-be-huge-but-so-will-ai-and-data-center-businesses/

CloudQuant Thoughts: Kernal bypass applications using GPUs have been around for a while.

Accounting software giant Intuit launches direct business loans

…accounting platform with approximately 2.4 million customers, the QuickBooks platform provides the most complete set of small business data available in the market,” she said.

QuickBooks Capital uses machine learning to help small businesses demonstrate credit-worthiness.

“For example, we give small businesses the ability to get credit for future profits by looking at things such as open invoices”, Succar said.

“Using machine learning, we’re able to predict when those invoices are likely to be paid, thereby providing an extremely detailed picture of a business’ cash flow.

According to a study by the Federa…
2017-11-07 00:00:00 https://www.cnbc.com/2017/11/07/intuit-unveils-business-lending-product-quickbooks-capital.html

CloudQuant Thoughts: The QuickBooks software is widely used by small businesses. The data inside their databases would be a very interesting Alternative Data Set to be used in formulating quantitative trading strategies.

Artificial Intelligence is the next frontier in social media: executive

Artificial Intelligence is the next frontier in social media: executive
Penny Wilson, global chief marketing officer at Hootsuite, sees artificial intelligence as an area to watch in social media applications….
2017-11-12 00:00:00 https://www.cnbc.com/video/2017/11/12/artificial-intelligence-is-the-next-frontier-in-social-media-executive.html

CloudQuant Thoughts: The description is poor for this post. This video goes into how Social Media will become more of a distribution of video, and how AI, especially with Chat Bots will be the next wave.

SEC Shows Off Cybersecurity Muscle Following EDGAR Breach

…and who formerly worked as an attorney at the SEC’s Enforcement Division. “The cyberunit, if the previous five specialized units are a guide, will hire staff with expertise in cybersecurity, leverage data analytics to identify anomalous trading that may have resulted from unauthorized intrusions, and bring cases.”

Edwards said initial cases may arise from violations, such as: failure to have/follow robust cybersecurity policies and procedures, and failure to establish appropriate controls; failure to perform sufficient periodic assessments of cyber procedures and measures; and failure to protect networks c…
2017-11-08 00:00:00 http://www.thinkadvisor.com/2017/11/08/sec-shows-off-cybersecurity-muscle-following-edgar

CloudQuant Thoughts: The SEC, FINRA, CFTC, and numerous exchanges have all stated that Cybersecurity is a significant focus. We hope that they continue to strengthen every aspect of our financial markets.

Open Source Meets Quant Trading – Futures Industry Association

On Thursday, October 17-19, 2017 CloudQuant’s CEO participated in the Future Industry Associations EXPO panel discussion on Open Source Meets Quant Trading. During this discussion, several topics were covered including:

  • Alternative Data Sets (Twitter, Satelite
  • Crowd Resouces
  • Algo source code ownership
  • Online Resources
  • Quantitative platforms

Chair:

Joe Signorelli, Managing Partner, RCM Risk Advisors

Speakers:

Jared Broad, Founder & Chief Executive Officer, QuantConnect
Martin Froehler, Chief Executive Officer, Quantiacs
Andrew Keane, Global Head, Listed Derivatives Algo Trading, Citigroup Global Markets
Morgan Slade, Chief Executive Officer, CloudQuant