| | DECEMBER 202319Combining 'Human & Machine' for OptimalSolutionsThough AI can present numerous insights, one must remember that at the end of the day, any machine will give results based on inputs by a human. Any AI based results are ultimately the results of algorithms written by human. Where the machine scores over a human is the ability to compute vast amounts of data in split seconds and present them in a categorised or struc-tured manner. So, it is a complimentary skill of human analysis plus the processing speed of a machine to help better decision making skills.Why speed matters?One of the biggest advantages of AI and ML in investment analysis is the speed at which data sets can be presented. For example, if were to track the stocks that gained the highest in value over the last month, it just takes the click of a button. Similarly, I can shortlist stocks that gave highest returns in the previous month and the month prior to that. Furthermore, additional conditions can be applied to these selected sets and the system can generate a shortlist of stocks that may meet the multiple criteria for an investor. This whole exercise can be done in a few clicks and the result is available within minutes. The logic and conditions can have any number, but the result of processing multiple data points and producing actionable insights happens in a few minutes.Application across the Spheres of InvestmentsAI can also enhance the execution of large orders and optimise order flow, improving efficiency in the financial markets. Advancements in AI technology are transforming the peer-to-peer (P2P) lending industry, streamlining data processing for more efficient creditworthiness evaluations of potential borrowers, optimising underwriting processes, and enabling more effective management of lending portfolios.The integration of AI technology in investment decision-making processes has the potential to bring about a significant transformation in the finance industry. AI can improve investment outcomes while also minimising risks for investors. This means that by using AI, investors can make more informed and data-driven decisions about their investments, leading to better returns on their investments.Conclusion:AI can help in analysing vast amounts of financial data and identify patterns that might be difficult for humans to recognize. This could potentially result in more accurate predictions about market trends, which could aid investors in making more informed decisions. AI can also provide real-time insights and recommendations that can help investors react quickly to market changes.Moreover, AI can help in reducing human errors and biases, which can result in better investment decisions. AI can analyse data objectively, without being influenced by emotions, opinions, or personal biases. This can result in a more reliable and consistent investment strategy. Further improving the accuracy of investment decisions using AI and ML is probably the next level of things that we can anticipate in coming days. The integration of AI technology in investment decision-making processes has the potential to bring about a significant transformation in the finance industryThe use of AI in investment decision-making offers a significant advantage as it can quickly analyse vast amounts of data that may be overlooked by human analysts
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