Lecture 8 Flashcards
When were the “golden years” of AI?
1938-1946
Who started wordnet?
George Miller
What does wordnet do?
Helps computers understand the meaning of words and their relationship with other words
How does Imagenet work?
Uses countless images so the algorithm can understand
What is ImageNet largescale recognition challenge?
Competition to develop algorithms that can accurately identify objects within a large dataset of images
What are 2 important developments propelled by AI?
- Data availability
- Computing power
How do you improve ML?
More data
What is AI?
Computer programme with mechanism to learn
What is machine learning?
Uses algorithms to learn from data patterns
What is rules based programming?
Programme acts accordingly to pre-defined rules, no self-learning
What are the 3 types of ML?
- Supervised learning
- Semi-supervised learning
- Unsupervised learning
What is Supervised learning?
Aims to learn a function that approximates a function that maps inputs to outputs, given data and desired outputs
What is semi-supervised learning?
Based on prelabelled training data set. contains examples which can be used to train ML models
What is unsupervised learning?
equivalent to self-learning, analyse uncategorised data sets by studying intrinsic pattern and statistic laws of data set
What is Deep learning?
a type of machine learning and artificial intelligence (AI) that imitates the way humans gain certain types of knowledge
What is ANI and AGI and where do we see them?
ANI - artificial narrow intelligence (what we have now)
- AGI - artificial general intelligence (what we see in movies eg star trek)
What are the pro’s of Robo-advice?
- Online tools appeal to younger generation
- can focus on small investments
- automated platforms
What are the cons of Robo-advice?
- lose relationship aspect of business
- FCA finds they: don’t give customers enough warning about risk and don’t properly evaluate a clients knowledge, experience, investment objectives and capacity for loss.
- some clients prefer human touch
What are the 3 main broad investment strategies?
- stock pickers
- passive funds
- Quantative funds
What is the Quant fund approach?
- analyst proposes new idea
- a referee spends a week trying to destroy thesis
- idea gets presented to an approval board who decide whether it should be included and the weight
What do financial institutions use AI for?
- financial advice
- Fund management
- risk mitigation
- Fraud detection
- anti money laundering
- Loan (credit risk decisions)
What are the shortcomings of AI?
- Only as good as the data
- Historical data will be bias against minorities
- Focusing on AI ethics at an early stage slows down innovation
