Artificial Intelligence

Abstract

The dual headed disruption tidal wave of blockchain enabled activities and artificial intelligence will invariably lead to anxiety, stress, and potentially misunderstanding of just what these technologies represent for financial services. Blockchain, hopefully, at this point has been demystified to a certain extent, but the idea of artificial intelligence may appear and seem like a more amorphous concept that is both difficult to understand but potentially disruptive in nature. While artificial intelligence has been featured in numerous media outlets, movies, and T.V. shows, the image that is most often presented to audiences and market actors is one that, almost invariably, has negative connotations and implications for the developers and users. Fortunately, while there have been numerous advances in the development and implementation of artificial intelligence, the limits of current iterations are still substantial. In other words there is no need to fear the Terminator coming for financial practitioner roles. Prior to diving into what the applications and implications of AI may very well be, however, it seems appropriate to first put forward a definition that makes sense in the context of this discussion. Not meant to be overly technical, but rather a working definition to assist financial professionals seeking to understand and explain the implications of AI, a working definition as follows is a workable option: