Industry News: Machine Learning and Artificial Intelligence for November 27, 2017

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UBS Seeks to Expand Workforce in Artificial Intelligence

…UBS Group AG is expanding its workforce in one of the few areas in banking where demand for talent is growing.

“We’re currently recruiting more people for artificial intelligence,” Veronica Lange, head of innovation at Switzerland’s biggest bank, said in an interview in Moscow. “These are data scientists, architects, business analysts.”

AI refers to technology capable of performing tasks that normally require human intelligence. Big global banks like UBS are using it to scour vast databases for insight on customers and markets that could help lenders stay competitive as …
2017-11-23 00:00:00 https://www.bloomberg.com/news/articles/2017-11-23/ubs-seeks-to-expand-workforce-in-artificial-intelligence

CloudQuant Thoughts: The need to grow AI skills within trading and banking will continue to grow. We see it every day. Many firms are seeking to hire qualified talent but there is a shortage of skills. The solution may be to grow them yourself. We are having success finding the talent in places that Wall Street doesn’t typically look – CrowdSourcing!

Everything You Need to Know About Smart AI Chips

…The future of artificial intelligence is here. From smart home thermostats that adjust themselves according to historical weather trends and future predictions to smartphone apps that provide relevant shopping recommendations based on your purchase history, many of us use next-gen AI without even realizing it.

But if companies like Microsoft and Facebook have their way, it will soon be impossible to miss the prevalence of AI in our …
2017-11-25 22:33:02+00:00 http://bigdata-madesimple.com/everything-you-need-to-know-about-smart-ai-chips/

CloudQuant Thoughts: While the big companies are all trying to come up with standard chips, the trading industry is using GPU boards and specialty networks to enable high-frequency trading and AI on risk and trading applications. Our industry is continually innovating. We expect the trading industry to be early adopters of anything, including special AI chips, that will increase a firm’s search for alpha.

BlackRock Plans New Active Sector ETFs Curated by Robots

… stock. Tobacco companies are considered a consumer staple.

But unlike traditional passive funds that rely on those indexes, BlackRock’s new funds will use advanced data science techniques – such as machine learning – to choose which companies go where.

“The classification system allows for a company to be classified into multiple sectors rather than being assigned solely to a single sector, reflecting the multi-dimensional nature of these companies,” BlackRock said in the filings.

“Sector constituents are expected to evolve dynamically over time to reflect changing business models.”

A BlackRock spokeswom…
2017-11-20 14:05:28-05:00 http://www.wealthmanagement.com/etfs/blackrock-plans-new-active-sector-etfs-curated-robots

CloudQuant Thoughts:  BlackRock has been a pioneer in applying data science to the world of investment. We are not surprised to see them branching off into robot managed ETFs based upon sector analysis. We all know that companies no longer fit into just one category. Firms are innovating and branching out.

How workflow can improve a hedge fund

…the right set of information at the right time, using the right delivery mechanism, in the right order. They can then measure the impact and analyse what has been successful, with who and when. Using artificial intelligence or machine learning solutions, fund managers and marketers can work out what vehicles are likely to be well received and what behaviour investors could display in the future.

Streamlined workflows in each part of the firm can play a huge part in the risk management strategy too, as the manual element of many tasks is minimised, and team members are guided and supported to manage their workloads …
2017-11-23 00:00:00 https://www.hedgeweek.com/2017/11/23/258640/how-workflow-can-improve-hedge-fund

CloudQuant Thoughts: We are convinced that AI and ML will revolutionize the industry.

3 trends powering the rise of financial robo-advice

…g forward the rapid development of a new generation of financial robo-advice models. In fact, gains in these three areas create the potential for a Moore’s Law pattern of acceleration in the field of artificial intelligence-powered financial advice models.

1. Availability of data

We generate more than 2.5 billion GB of data every day. Innovators and developers access the vast lakes of this data from a seemingly endless range of sources. For example, states and government organizations now open up their data, including robust offerings from the Internal Revenue Service and the U.S. Census Bureau. There is a similar…
2017-11-24 00:00:00 https://venturebeat.com/2017/11/24/3-trends-powering-the-rise-of-financial-robo-advice/

CloudQuant Thoughts: The availability of data, Increased power and storage, and Advancements in AI mentioned here are definitely key to the growth of robo-advice. We see it even in the above article about Robo-Sector ETFs by BlackRock. But there is also a growing awareness of Data Science and greater access to people who are applying statistical and quantitative analysis to their worlds.

Interview: Microsoft Azure CTO Mark Russinovich on the intersection between serverless and edge computing

…I was going to ask: is anybody actually doing this?

Russinovich: We’ve seen a tremendous amount of interest in this as devices are getting more and more intelligent. A big driver of this actually is machine learning on the edge. AI on the edge. We’re seeing a lot of interest in that. This is why you’re seeing us being able to train a model in the cloud, take that model, and push it out to the edge. Or push it out to a mobile device and run it there locally.

The model is part of a larger application typically. And I want to compose that model as a self contained unit, but then have it interact with other thi…
2017-11-24 19:20:14+00:00 https://www.geekwire.com/2017/interview-microsofts-mark-russinovich-intersection-serverless-edge-computing/

CloudQuant Thoughts: Looks like this one is going to take some reading to figure out how it would work in the world of quantitative trading.

China Citic, Baidu launch direct bank in fintech push

…AiBank is one among several tie-ups between an internet firm and a lender in China’s booming online finance market where technology gurus like Alibaba Group Holding Ltd (BABA.N) and Tencent Holdings Ltd (0700.HK) have already set up their own finance arms to offer a range of financial products including payment, wealth management and micro loans

A direct bank offers services over the internet instead of through physical branches.

AiBank will focus on lending to individuals and small businesses while leveraging big data and artificial intelligence to build new risk control models, Li Rudong, president of the new bank said at a launch event in Beijing.

2017-11-17  https://www.reuters.com/article/us-china-banks/china-citic-baidu-launch-direct-bank-in-fintech-push-idUSKBN1DI04D 

CloudQuant Thoughts: AiBank = Artificial Intelligence and Banking. Makes us wonder if AiTrade should be what we are doing?

The UK is in the fast lane to the future and teachers are in the driving seat

… to ensure the country remains one of the global leaders in cloud computing, AI and other next-generation technologies.

Philip Hammond has promised to put Britain in the “fast lane” with funding for artificial intelligence, computer science education, driverless cars and digital skills.

The road to making the UK a leader in the Fourth Industrial Revolution will be a long one, but we are on it together.

It’s also important to remember that the country is not starting from scratch, and the UK is built on a strong foundation of innovation. From Ada Lovelace, through Alan Turing to Sir Tim Berners-Lee, Britain has al…
2017-11-22 00:00:00 https://news.microsoft.com/en-gb/2017/11/22/the-uk-is-in-the-fast-lane-to-the-future-and-teachers-are-in-the-driving-seat/

CloudQuant Thoughts: More and more digital skills are being required in life. The lack of these skills in our primary and secondary schools should alarm us. My (Tayloe Draughon) background allowed me an amazing opportunity to see the use of an Apple computer in 1979 while attending Ivanhoe Grammar School in Melbourne Australia. I was in middle school. It sparked my curiosity. I went on to begin using the computer in high school after my family returned to the US. As a result of early developed skills that drove my career. Technical and Data skills in schools is necessary to propel innovation in the Fourth Industrial Revolution.

Triple Alpha aiming to broaden access to hedge fund-style trading algorithms

…tacles that prevent private investors anywhere from accessing the asset management industry. The Triple Alpha fund will make the best investing technologies broadly available, which rely on excellent machine learning algorithms and big data analytics.

“The extremely high returns on investments in crypto-assets are subject to the huge volatility of the nascent market while existing instruments for investing in stocks have serious limitations and poor transparency. Triple Alpha is revolutionising the international asset management market, creating a niche with a small minimum investment (from USD100) and ret…
2017-11-23 00:00:00 https://www.hedgeweek.com/2017/11/23/258641/triple-alpha-aiming-broaden-access-hedge-fund-style-trading-algorithms

Aquila Capital changes investment process of long-only multi-asset strategy

…Aquila Capital is to evolve the investment process of its long-only multi-asset investment strategy to take into account the latest developments in quantitative finance and artificial intelligence.

To reflect these developments, the AC Risk Parity Fund has been renamed as the AC – Adaptive Diversification Fund (the ‘Fund’). The investment process includes an advanced range of indicators to measure market attractiveness, aiming to deliver stable returns largely independent of market cycles.

The Fund offers a dynamic approach to balancing risk, responding fast to increasingly challenging…
2017-11-23 00:00:00 https://www.hedgeweek.com/2017/11/23/258651/aquila-capital-changes-investment-process-long-only-multi-asset-strategy

CloudQuant Thoughts: The application of AI and ML tools and techniques requires knowledge and insight not just a business decision to enter the market. Innovation driven AI and ML happens in the hiring process, in the management process, and in the culture. We are always interested in seeing the success of funds moving more into the world of AI and ML.

Investment Bankers Are Hard to Replace With Robots, Nordea Says

…eod says it’s clear others in the financial industry have now “woken up and smelled the coffee.”

Even in investment banking, MacLeod says he expects a lot of support work to be automated in future.

Machine learning and artificial intelligence will “bring instant insight to those investment bankers’ fingertips,” he said.

But despite immersing himself in the subject every day, MacLeod says it’s impossible to know exactly what to expect. A bank’s defense against uncertainty is a willingness to experiment, he said.

“Experimentation is really important at this stage right now,” MacLeod said. “Because we know t…
2017-11-26 00:00:00 https://www.bloomberg.com/amp/news/articles/2017-11-26/investment-bankers-are-hard-to-replace-with-robots-nordea-says?utm_referrer=https%3A%2F%2Fzen.yandex.com

Crowdsourced AI platform picks Putin as top prospect for Time’s Person of the Year

… company called Unanimous AI, Russian President Vladimir Putin is favored to follow in the footsteps of President Donald Trump.

To reach that conclusion, Unanimous uses a hybrid of crowdsourcing and artificial intelligence that it calls “Swarm AI.” The company assembles a group of about 40 folks who are familiar with the topic at hand, and then uses software to guide them through an iterative process of ranking and eliminating prospects.

The computer-aided tug of opinions eventually focuses the swarm on a single choice. The process has been known to outperform movie critics when it comes to predicting Oscar winner…
2017-11-23 01:10:10+00:00 https://www.geekwire.com/2017/crowdsourced-ai-platform-picks-putin-top-prospect-times-2017-person-year/

CloudQuant Thoughts: Interesting use of crowdsourcing.

UK Announces Pharma Investment, Aims to Boost Productivity

…not been good enough, and is holding back our earning power as a country,” Business Secretary Greg Clark said.

The government said it will invest 725 million pounds ($968 million) in areas including artificial intelligence, driverless cars and the life sciences, “with the aim of making the U.K. the world’s most innovative nation by 2030.”

That comes on top of a previously announced 1 billion pounds in spending on innovative industrial projects.

Britain aims to increase spending on research and development from the current 1.7 percent to 2.4 percent of GDP within a decade….
2017-11-27 00:00:00 https://www.usnews.com/news/business/articles/2017-11-27/uk-announces-pharma-investment-aims-to-boost-productivity

CloudQuant Thoughts: We are seeing a lot of articles that are showing the UK investing in AI and ML. Reference the above article about investing in teachers.