artificial_intelligence   2841

« earlier    

People + AI Research - Library - Google Design
Get practical insights from Google’s People + AI Research team on how to take a multidisciplinary and human-centered approach to designing with machine learning and AI. Inside, find articles and video on how ML is changing the way we build experiences and interact with the world.
research  design_research  artificial_intelligence 
3 days ago by shannon_mattern
Passive investing is storing up trouble
August 2, 2018 | Financial Times | by Megan Greene.

I was recently informed by the owner of an artificial intelligence fund that markets do not listen to economists any more. .....A fundamental shift in market structure towards rules-based, passive investing over the past decade means a lot of trading is no longer based on fundamentals. But just because some markets do not pay attention to economists, it does not mean economists should not pay attention to these markets........AI quant funds are not waiting on tenterhooks for analysis of every non-farm payrolls report, Fed press conference, Donald Trump tweet, or earnings report. Instead, they look for trading strategies that are succeeding and adopt those strategies until a better one comes along, regardless of the underlying fundamentals. But what happens when the strategy suddenly becomes to sell everything? Will the computers find the buyers they need?.......ETFs, often set up to mimic an index, have to buy more of equities rising in price, sending those stock prices even higher. ETFs similarly ignore fundamentals.....This creates a piling-on effect as funds buy more of these increasingly expensive stocks and less of the cheaper ones in their indices...Risks of a bubble arise when there is no regard for underlying fundamentals or price. It is reasonable to assume a sustained market correction would lead to stocks that were disproportionately bought because of ETFs and index funds being disproportionately sold.

But again, in a crisis will the ETF managers find liquid markets? ....Passive investors and quant funds could also threaten the economy by making markets vastly more complex, noisy and opaque. They send mixed signals to active investors about what the fair value of a stock is. That could cause a significant misallocation of capital.

The danger is exacerbated by the speed at which trading is now done. The average holding period for a security on the New York Stock Exchange has fallen from two months in 2008 to just under 20 seconds today.......Systemic failures, misallocation of capital and dried up liquidity could cause a bear market, dragging on growth when the economic backdrop is already lacklustre......So even though passive investors ignore economists, economists should pay attention to risks posed by the shift in market structure they represent....This is not to say that index funds, ETFs and AI quant funds are necessarily bad. But the real test will come when there is a sudden crisis followed by a sustained bear market.
active_investing  artificial_intelligence  bear_markets  economists  ETFs  index_funds  investing  liquidity  market_fundamentals  misallocations  passive_investing  piling_on  risks  systemic_failures  rules-based  bubbles  quantitative 
13 days ago by jerryking
How Big Data and AI Are Driving Business Innovation in 2018
2018 survey is that an overwhelming 97.2% of executives report that their companies are investing in building or launching big data and AI initiatives. Among surveyed executives, a growing consensus is emerging that AI and big data initiatives are becoming closely intertwined, with 76.5% of executives indicating that the proliferation and greater availability of data is empowering AI and cognitive initiatives within their organizations.
big_data  artificial_intelligence  mitsmr 
16 days ago by tom.reeder

« earlier    

related tags

19th_century  21st_century_fox  @-public  academicpublishing  accountability  active_investing  active_matter  adm  agribusiness  agriculture  ai  algonomy_suffering-science  algorithms  alphago  amazon  andrew_carnegie  anne-marie_slaughter  archives  arm  arms_race  artificial_life  artificialintelligence  at&t  automation  automotive_industry  autonomous_vehicles  bbc  bear_markets  benedict-evans  biases  big_data  blindsided  book  books  bot  bubbles  bunge  cambridge  cancer  capitalism  cargill  cathy_o’neil  centralization  cfius  character_traits  chatbot  china  classification  climate_change  clojurescript  cloud_computing  code  collective_dynamics  college-educated  colleges_&_universities  comcast  commodities  computational_thinking  computer  corruption  course  cpus  creative_destruction  creativity  crime  cs  customer_service  customization  dark_side  data_centers  data_driven  data_ethics  data_mining  data_scientists  decentralization  decision_making  deep-learning  deep_fakes  deep_learning  deeplearning  demis_hassabis  design_research  digital_archives  digital_art  digital_economy  digital_ethics  digitalization  disney  donald_trump  dopost  drug  ecology  economic_aggression  economic_warfare  economists  edge  education  election  elon_musk  emotions  empathy  end_of_ownership  entertainment_industry  environment  erasure  etfs  ethics  ethics_of_algorithms  ethnography  expertise  experts  facial_recognition  failure  fairness  fashion  fdi  fin-tech  food_crops  future  gazelles  geopolitics  google  google_docs  grains  health_care  hp  hpe  humanity  image_recognition  immersive  index_funds  industrial_internet  industrial_policies  inequality  informational_advantages  installation  intel  intellectual_property  international_trade  internet  investing  investors  it  jobs  joseph_schumpeter  journalism  kim  knowledge  language  law  law_enforcement  libraries  liquidity  louis_dreyfus  machine-learning  machine_learning  machine_vision  machinelearning  magic  manufacturing  mark_zuckerberg  market_fundamentals  mass_media  mathematics  medical  mental_models  mergers_&_acquisitions  methodology  microproducers  misallocations  mitsmr  ml  mooc  moocs  morality  music  mw2017  nationalization  netflix  neural-networks  news  nimbleness  nlp  nvidia  ocr  one_belt_one_road  organization  passive_investing  personalization  piling_on  pittsburgh  platform_capitalism  platformization  platforms  podcast  policy  politicians  politics  privacy  programming  projection  propaganda  protectionism  quantitative  racism  regulation  relationships  research  risks  robotics  rules-based  russia  scaling  security  security_&_intelligence  self-driving_cars  self_organization  silicon_valley  size  soes  sotala  speculation  starcraft  starred  start_ups  statistics  stitch_fix  sustainability  systemic_failures  systems  talent  target_marketing  teaching  tech  tech_and_demos  technology  text_mining  textbook  theft  time_warner  tools  traders  transgendered  transparency  u.s.  united_kingdom  venture_capital  vertical_integration  washington_d.c.  watson  weird  white-collar 

Copy this bookmark: