The Next Step Toward Machine Domination of World Financial Markets
Last week Ben Goertzel and his company, Aidyia, turned on a hedge fund that makes all stock trades using artificial intelligence—no human intervention required. “If we all die,” says Goertzel, a longtime AI guru and the company’s chief scientist, “it would keep trading.”
Goertzel and other humans built the system and they’ll continue to modify it as needed. But their creation identifies and executes trades entirely on its own, drawing on multiple forms of AI, including one inspired by genetic evolution and another based on probabilistic logic. Each day, after analyzing everything from market prices and volumes to macroeconomic data and corporate accounting documents, these AI engines make their own market predictions and then “vote” on the best course of action.
Aidyia represents a notable shift in the world of finance. Backed by $143 million in funding, San Francisco startup Sentient Technologies has been quietly trading with a similar system since last year. Data-centric hedge funds like Two Sigma and Renaissance Technologies have said they rely on AI. And according to reports, two others—Bridgewater Associates and Point72 Asset Management, run by big Wall Street names Ray Dalio and Steven A. Cohen—are moving in the same direction.
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“The human mind has many strengths, but ultimately lacks the memory, calculation capability and breadth of information integration to keep up with AI systems in the context of analyzing, understanding and predicting modern financial markets. In the end it’s going to be viewed as irresponsible to entrust trillions of dollars to some emotional human being,”
Ben Goertzel, co-founder of Aidyia