Lecture 8

Question 1

When were the “golden years” of AI?

Answer 1

1938-1946

Question 2

Who started wordnet?

Answer 2

George Miller

Question 3

What does wordnet do?

Answer 3

Helps computers understand the meaning of words and their relationship with other words

Question 4

How does Imagenet work?

Answer 4

Uses countless images so the algorithm can understand

Question 5

What is ImageNet largescale recognition challenge?

Answer 5

Competition to develop algorithms that can accurately identify objects within a large dataset of images

Question 6

What are 2 important developments propelled by AI?

Answer 6

1. Data availability
2. Computing power

Question 7

How do you improve ML?

Answer 7

More data

Question 8

What is AI?

Answer 8

Computer programme with mechanism to learn

Question 9

What is machine learning?

Answer 9

Uses algorithms to learn from data patterns

Question 10

What is rules based programming?

Answer 10

Programme acts accordingly to pre-defined rules, no self-learning

Question 11

What are the 3 types of ML?

Answer 11

1. Supervised learning
2. Semi-supervised learning
3. Unsupervised learning

Question 12

What is Supervised learning?

Answer 12

Aims to learn a function that approximates a function that maps inputs to outputs, given data and desired outputs

Question 13

What is semi-supervised learning?

Answer 13

Based on prelabelled training data set. contains examples which can be used to train ML models

Question 14

What is unsupervised learning?

Answer 14

equivalent to self-learning, analyse uncategorised data sets by studying intrinsic pattern and statistic laws of data set

Question 15

What is Deep learning?

Answer 15

a type of machine learning and artificial intelligence (AI) that imitates the way humans gain certain types of knowledge

Question 16

What is ANI and AGI and where do we see them?

Answer 16

ANI - artificial narrow intelligence (what we have now)
- AGI - artificial general intelligence (what we see in movies eg star trek)

Question 17

What are the pro’s of Robo-advice?

Answer 17

• Online tools appeal to younger generation
• can focus on small investments
• automated platforms

Question 18

What are the cons of Robo-advice?

Answer 18

• 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

Question 19

What are the 3 main broad investment strategies?

Answer 19

• stock pickers
• passive funds
• Quantative funds

Question 20

What is the Quant fund approach?

Answer 20

1. analyst proposes new idea
2. a referee spends a week trying to destroy thesis
3. idea gets presented to an approval board who decide whether it should be included and the weight

Question 21

What do financial institutions use AI for?

Answer 21

• financial advice
• Fund management
• risk mitigation
• Fraud detection
• anti money laundering
• Loan (credit risk decisions)

Question 22

What are the shortcomings of AI?

Answer 22

• Only as good as the data
• Historical data will be bias against minorities
• Focusing on AI ethics at an early stage slows down innovation