It’s no secret that artificial intelligence (AI) is accelerating at a phenomenal rate. In fact, it’s doubling around every two years. Soon AI will dominate pretty much every industry from manufacturing to financial markets. Private companies, big investment firms, and individuals are all injecting large amounts of cash into AI right now as the possibilities that are becoming apparent using it are endless.
While most industries have been integrating AI into their businesses left, right and centre, there are still a few stragglers. However, that’s all likely to change very soon. The hedge fund community alone is injecting huge amounts of cash into the development and acceleration of AI.
For those funds that are professionally managed, there are two main factors driving AI adoption right now. The first is the rapid acceleration of computing power. As data gets moved to cloud servers with the latest technology, costs are getting much lower. The second is the amount of data that’s now become available to use. While processing power is needed to run the AI, data is the fuel that keeps it going.
One of the most difficult areas to achieve a high level of accuracy using AI is in the world of finance as markets are influenced by so many different variables. Regulations, news events, politics, and economics all play a part in market fluctuations and trying to teach all of that to an AI program is no easy feat. That being said if it can be done and the AI has been designed properly it can help tremendously, particularly when it comes to things like stock selection. When used in conjunction with some of the most trusted stocks out there the AI system is able to predict those which are likely to perform the best.
This is just the beginning of what we can expect to see in the near future when it comes to AI. The problem is that the development and acceleration of AI is a costly process. Many AI projects run into millions of dollars, which is not something the average Joe is able to come up with. Even entering into a hedge fund can cost millions.
In the investment world, every day is different, and it’s hard for humans to keep track of every market all the time. But for AI, it’s a piece of cake. For that reason alone, AI is here to stay.