Issue link: http://cp.revolio.com/i/356
20 Feb 2009 bIo enhAnCeD nAno neURo hUMoR FoReVeR YoUng AI THE GLOBAL FINANCIAL CRISIS: A Hiccup on the Path to Superintelligent Financial Markets? o ne of the many interesting aspects of the current global fi nancial crisis is the role that AI and advanced computer software has played in it. It's worth asking a few questions about exactly what this role has been — and what it suggests for the future. There's not much "strong AI" used in the fi nance industry today, but there are plenty of "narrow AI" software techniques in place, alongside other advanced mathematical methods — recognizing subtle nonlinear patterns in fi nancial data, and relating fi nancial data with other information about the economy, news, weather and so forth. And, certainly, this software played a role in the crisis that unfolded this fall. but before we blame the machines, it's worth digging a little deeper. The root of the problem really came down to the ways people chose to use this software to serve their own ends. And it's arguable that, if we'd had strong AI instead of narrow AI involved, a crisis like this would never have come about. getting into the nitty-gritty, perhaps the central factor that paved the road to the recent fi nancial disaster was the use of massive leverage — a technique allowing investors to gamble much more money than they actually have. If you bet $10 on some fi nancial instrument ben goeRTzeL