This article was written by Kemy Huang – Research Analyst at I Know First

Summary

• Earlier times, AI had been particularly slow to develop with periodic booms in research. However over the past decade, due to the digital world transforming into the data world, the promising leaps to surpass traditional computing power, and some businesses start to make fortune from the technique. Based on those reasons lead to the AI boom.
• The innovation in the AI area shows the great potential of how powerful it could be. Nowadays, the example in AlphaGo showed the milestone of AI that it doesn’t need to be constrained by the limits of human knowledge.
• The technique of Artificial intelligence can bring a fortune to the market. I Know First the promising company that could upgrade investment decisions by providing effective forecasting solutions for the investors.

The Era of AI Boom

Artificial intelligence, an art of science that is devoted to making machine thinks and behaves like a human. The ideas of AI could be traced back to the decades, which was found and originated by a flock of scientists, born at the Dartmouth Summer Research Project in1956. In the 1960s, there are several successful leaps in computing and machine learning, which lead to AI receiving a big investor- the US military. The agent is called Defense Advanced Research Projects Agency (DARPA), they provide all sources of funding in AI research in the wide spreads of use like GPS navigation and language transcriptions. However, the real world was far more complicated to cross over the problems, in the 1970s AI experienced the “cold winter” in investment season. Earlier times, AI had been particularly slow to develop with periodic booms in research resulting in few real-world applications and leading to long dry spells for funding, but over the past decade, the field has boomed. UBS stated AI is one of the best investment opportunities for over the coming decade.

There are three broad reasons to show that AI is the movement for the following decades:

First and foremost, the demand in data analyzing that traditional computing can’t afford leads to the demand in the AI area. Nowadays we live in a digital world that generates vast amounts of data every day. However, data is growing at an exponential pace, it would be too much to make sense for traditional computing. By 2030, the global data storage would be projected to 660 zettabytes(ZB= 10¹⁸GB). So how big is the data? 660 zettabytes are enough to storage for 19,800 billion 4K movies, or 39,600 billion video games, or 4,950 trillion MP3 songs according to Seagate.

 The second reason that AI is taking over its computing power is rising to the occasion, it’s not about the traditional computing power in our laptop, it’s the power that can be taken over the specialized chip that grows out in video games and can handle a highly parallel processing needs for AI, or the application-specific chips from the big tech companies or massive data center to help them deal with the task such as Marvel technology. 

The third reason for the Ai boom is that some companies have already made the fortune from it, and no longer require funding from the government. For instance, the AI application in Netflix. Netflix uses thousands of video frames from an existing movie or show as a starting point for thumbnail generation and annotates these images then ranks each image to identify which thumbnails have the highest likelihood of resulting in your click. They even use their viewing habits to create new shows. These applications are just the tip of an iceberg of how AI helps businesses to make real money.

The Power of Artificial Intelligence

When it comes to the power of AI, we could wonder how powerful and impactful the machines could be. Machine learning is a subset of AI that talks about computers being able to think and act based on the structured data, then making decisions by finding patterns and relations in the data. For example, traffic prediction, speech recognition, medical diagnoses, and so on. Whereas deep learning elevates the level of how machines can learn and recognize things in the unstructured and more complex data which means to think more like a human brain. AlphaGo is a classic example that perfectly demonstrates the power of deep learning. Go, is a three-thousand-year-old Chinese broad game that has more possible board configurations and is enormously complicated than chess. AlphaGo is a go-playing program that is learned from numerous human games to help it develop an understanding of reasonable play. Then it plays against different versions of itself thousands of times, each time learning from its mistakes. This program beat the best player in the world in 2017. Not only that, shortly after the game alphabet quickly announced another program called AlphaGo Zero. The machine was only taught by the rules and had to learn by itself. It quickly develops its movement and strategy that have never seen before, even surpassing all other players. This milestone shows that AI is no longer constrained by the limits of human knowledge. 

 The power of AI could be categorized by its capability. There are three types of AI which are weak, strong, and super AI. 

Weak AI is both the most limited and the most common type of AI. It’s also known as narrow AI or artificial narrow intelligence (ANI). Weak AI refers to any AI tool that resembles human intelligence but only focuses on one specific task. It’s more like an intelligent specialist at completing the specific tasks that are programmed to do.

Strong AI, also called general AI or artificial general intelligence (AGI) refers to AI that exhibits human-level intelligence. It’s an idea that machines can understand, think, and perform like a human in general. it’s a subject that march towards the research, doesn’t yet exist. The typical example is Jarvis, the computer helps Iron Man in the movie.

Last, Super AI is the intelligence that surpasses all human intellect and abilities. It’s also named artificial superintelligence (ASI) or superintelligence which is not even in the progress yet, but we can perceive its concept from the movies. Such as SkyNet from the terminator.

Market Trend in Artificial Intelligence 

According to Eric Schmidt, the former CEO of Google, AI could bring benefits to both large and small tech companies. The valuation of AI startups is in the billions, and the market in the US is helping those companies get their capital to support their business. Yet, not all companies participating in AI will win, but the few will win tremendously. UBS recommends that instead of the large tech companies, investors should cast their eyes on small and mid-size companies which might face fewer regulatory risks. As a leading role in an AI Fin-tech company, I Know First provides various capital markets predictions for investors based on AI algorithms. We offer more than 10,500 financial assets forecasting solutions and suggestions for various needs. 

I Know First is a leading company in the algorithmic trading market, generating daily market forecasts for over 10,000 markets using a self-learning advanced algorithm. The algorithm filters out and charts predictable patterns on the stock market and separates them from random and unprofitable trades. It predicts the future of the market considering other stocks and movements on the market. The Algorithm looks for trends on the market, both positive and negative, and generates a wave chart, essentially giving traders a prediction of the direction in which the stock market is expected to go for the future years. The algorithm is completely based on data and is not run by any human opinions. The algorithm tests years of historical and future market data and proposes suggestions and theories about the market data.

I Know First’s algorithm has also achieved notable success as shown in the below forecast performance report for the most recommended investment avenues of 2021. This report contains a broad range of forecasts for the US market, European market, ETFs, Commodities market, Currency, and Cryptocurrency markets. 

*Fiat Chrysler (FCAU) merged with Peugeot (PUGOY) to create Stellanis NV (STLN)
**PRA Health Sciences Inc (PRAH) was acquired by ICON. The last trading day of PRAH is June 30, 2021

The algorithm accurately forecasted 31 out of 36 trades and provided a positive return across all forecast groups. The overall average return was 35.44% compared with the S&P 500 return of 25.39% for the same period. The greatest average return came from the Currency and Cryptocurrency Forecast at 50.29%. Further notable returns came from the Equities Forecast and the Commodity Forecast at 45.70% and 36.13%, respectively. While the US Indices Forecast, the ETFs Forecast, and Europe Indices Forecast provided at 18.04%, 16.32%, and 16.20%, respectively. Moreover, the Commodity Forecast, the ETFs Forecast, the US Indices Forecast, and the Europe Indices Forecast had accuracy at 100%. While the Equities Forecast, and the Currency and Cryptocurrency Forecast had accuracy at 69% and 66%, respectively. Also, it should be noticed that the Equities Forecast provided the average return of 45.70% versus the S&P500 return of 25.39% implying a market premium of 20.31%. With this excellent outcome presented, I Know First’s algorithm can be considered as an expert player in finding patterns and trends and making investment decisions more reliable and accurate.

Conclusion

In short, Artificial Intelligence is a promising trend for the following decades, which has great potential to make contributions to human societies and bring great fortune to the business market. As a pioneer in the AI industry, I Know First has great potential to become one of the most impactful companies, that provides a high level of efficiency forecast to the market.

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Please note-for trading decisions use the most recent forecast.