Artificial Intelligent Strategy In Investment

Artificial Intelligence in Investing
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In the digital era, transformational technology is powering new forms of automation that are more universal and smarter than ever before. The technology have not only changed significant operational aspects such as logistics, manufacturing, and warehousing but also the investment industry at large. Technologies associated with artificial intelligence help in performing tasks commonly associated with human beings such as logical operations, visual operations, speech recognition, visual perceptions, language translation and decision-making. Today,Computer technology has the capabilities of trouncing human intelligence in solving complex computations in shorter periods. The same technique can be replicated in investment in problem-solving, decision making and risk management. For instance, artificial intelligence tools helps in making faster precise assessment of potential borrowers at minimal cost which accounts for better informed and data backed decision that reduces human bias.
Investing on product portfolios backed with reliable information is an important aspectthat helps yield profitability. The increasingly advancement incomputer technology and algorithms have improved the way money managers invest (TG. 2014). The digital revolution is transforming the asset management industry as well as the digitized data increasingly accelerating the demand for artificial computing engine. Today, portfolio managers depend on the available data in prevailing markets to make investment decisions. Artificial intelligence is considered more efficient than human capacity in sorting, analyzing massive amounts either structured or unstructured data (Price, 2018).
According toPrice (2018), Artificial intelligence is the capability of a machine to demonstrate human-like intelligence and a degree of independent learning. For financial organization, on both the buy side and sell side, artificial technologies alter the industry that has long been stuck on its ways with significant risks and opportunities. Firms from buy side and sell side are using artificial intelligence to execute trades, manage portfolios and service their clients(Bunz &Janciute, 2018). Today, these companies utilize artificial intelligence to improve the analysis of securities to make investment decisions and also improve the operational processes. Artificial intelligence help improves efficiency, reduction of errors and increase the probability of better predictions for the investment industry. In the future, artificial intelligence will revolutionize how investment information is analyzed, packaged and presented to the investors(Berke et al, 2016).
Currently, algorithmic high frequency trading have has been on the rise in the recent past. For example, in the year 2018, over two trillion dollar were traded through artificial intelligence platforms. Typically, intelligent trading system process both structured and unstructured data for shorter period than human beings would take. In trading, time is critical element, hence, faster data processing translates to faster decisions and more swift transactions. Moreover, predictions over these tools on stock performance are more ...