AI Startup: Artificial Intelligence & Machine Learning’s Applications

  The article was written by Moises Meir, a Financial Analyst at I Know First

AI Startup: Artificial Intelligence & Machine Learning’s Applications


  • The Technological Innovation of Our Era
  • Impact and Applications of Artificial Intelligence
  • How we Use Artificial Intelligence at I Know First
  • Artificial Intelligence in Finance


Computers, the combustion engine and electricity are just a short list of ground-breaking innovations that completely changed the world. In fact they are so embedded in our daily lives that you are using two of them right now, without even realizing it. These technological breakthroughs created business opportunities and companies find a way to leverage them to create new, profitable business models.

AI Startup

The technological innovation of this era is artificial intelligence (AI), particularly machine learning (ML) — that is, the machine’s ability to keep improving its performance without humans having to explain exactly how to accomplish all the tasks it’s given. Given its nature, ML systems are great learners and can achieve superhuman performance in many activities and business processes.

In the business world, artificial intelligence and machine learning are expected to have a substantial impact. Even though AI is being used in thousands of companies in the world, most of the big opportunities have not been exploited yet. The coming decade will see the real rise of AI as managers find new ways to apply the technology to their business, or even better create new AI-related businesses . Virtually every industry has applications for AI to optimize their business models and for ML to transform their core processes.

As of today, artificial intelligence is very advanced in two areas: perception and cognition. In the former area, the most popular and advanced aspect is voice recognition (Apple’s Siri and Amazon’s Alexa, for example). A study in Stanford University found that speech recognition is three times as fast than typing on a cellphone. The error rate, once 8.5%, has dropped to 4.9% since the summer of 2016. Another perception-based aspect is very improved image recognition. A great example is Facebook,  which has accurately recognized the face of friends in pictures since 2014. The error rate for recognizing images from a database called ImageNet, with several million photographs, fell from more than 30% in 2010 to about 4% in 2016.AI Startup

Although perception is the “sexy” part of AI, most experts agree that the bulk of the applications for it are in cognition and problem solving. Google claimed they had “optimized” their cooling systems at their data centers, and the use of ML systems further improved the cooling system by 15%. PayPal uses ML to prevent money laundering. Amazon employs it to optimize inventory and improve product recommendations to customers.

Artificial Intelligence in Finance

Dozens of companies, such as I Know First, utilize ML for finance.

I Know First is pushing this frontier and making bold moves towards the future of financial investment. The company uses predictive algorithms based on artificial intelligence to process years of historical stock market data and develop different investment vehicles. There are two tiers to I Know First’s service. Tier I is a client-based daily support forecast. It provides clients with a heatmap of the top picks for bullish and bearish stocks over various time horizons. Tier II is institution-based. For Tier II, I Know First uses its AI algorithm to structure an investment portfolio.

At I Know First we use a state of the art, self learning AI-based algorithm to forecast and uncover the best investment opportunities. Every day, the algorithm inputs data from 7,000 different financial assets, then the data is analyzed by comparing it to stored data and trends from the last fifteen years. After thousands of relationships and data points are analyzed, the algorithm outputs a prediction for each asset in six timeframes. The form of the prediction is of two numbers that indicate which asset to buy, hold and sell. Then an email with the prediction is sent to all subscribers.

AI Startup

From that point onward, self-learning or ML part of our algorithm takes over, constantly proposing “theories”, testing them on years of market data, then validating them on the most recent data, which prevents over-fitting. If an input does not improve the model, it is “rejected” and another input can be substituted.

We have one of the most diverse package selection in the world. Our selection includes but is not limited to: biotech stocks, commodities, currencies, ETF’s, options, European stocks, under $10 stocks and top (and bottom) 5 through 40 stocks. Each one conveniently sent to the e-mail address of your choice.

For experienced investors, it has the potential to save substantial amounts of time, which could be used for other important issues. For novice investors it is an easy way to enter the trading world, as it can serve as a lead and as a guideline on how to analyze stocks. In addition, all subscribers would enjoy the advantage of leaving emotions out of the mix. It is known that sometimes emotions like greed and overconfidence influence investors to make poorly timed decisions. With I Know First, emotions are off the grid as the model is 100% empirical.