Autonomous revolution: What else is going Driverless?

17

September

2018

In the autonomous revolution that is underway, virtually every means of transportation will be self-driving.

5/5 (3)

In the autonomous revolution that is underway, virtually every means of transportation will be self-driving. The automotive industry might still need a few decades before the first driverless car is commercially available. But what about other industries? Be prepared to say good bye to your favourite cab driver, machinist,..and maybe even your human pilot.

Autonomous Ships – Riding the Wave of the Future
In 2016, freight shipping accounted for 90% of world’s trade, which amounts to around 10.3 billion tons of product. Besides freight shipping, industries such as wind farming, oil/gas, fishing and environmental research, have ships at sea. An over-crowded sea and the market size of freight shipping make and interesting case for startups and multinationals, such as Rolls Royce, to automate maritime vessels. The first vessels could become seaborne as soon as 2020. [1] [2] [3] [4] 

Fun fact: MIT is a frontrunner in the research on automated ships. The first major research project of autonomous boats in metropolitan areas is conducted in Amsterdam by MIT and the AMS  Institute [5]. Another interesting project in the Netherland is led by captainai.com, which is developing AI navigation software [6].

Autonomous Helicopters
The first successful heli projects already came to fruition. One of them is the AACUS using LiDAR, cameras, on-board computers and reinforcement learning algorithms. The AACUS has been developed by Aurora, acquired by Boeing. It already completed multiple flights and made first cargo deliveries in 2017. Through reinforcement learning, robotic helicopters teach themselves to fly difficult manoeuvres by observing other helicopters. After learning through observation, they can fly their own aerobatic stunt show. Autonomous helicopters are particularly interesting to the marine (think autonomous warfare), as well as for people and cargo transportation. Most research is currently conducted by the the marine, NASA and universities, such as Stanford. [7] [8]

And many more…
Other means of transportation expected to go autonomous include planes, trains, taxis, trucks and shuttles. In the past decades, major advances have been made, however, the autonomous revolution is still further ahead than some of us would like to think. Do you believe in the dawn of the autonomous revolution?

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Would you fully trust a machine to invest your savings?

26

September

2017

4.71/5 (78)

shutterstock_317361941_artificial_intelligence

“The most important general-purpose technology of our era is artificial intelligence, 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. Within just the past few years machine learning has become far more effective and widely available. We can now build systems that learn how to perform tasks on their own.” – Brynjolfsson and McAfee (2017)

Personally, I am also fascinated by ML. Developments such as learning machines to beat the world’s best chess players, learning machines how to drive by themselves and learning machines to cook proper meals made me fantasize AI’s about possibilities.

If machines can be educated to become that smart, are they also able to invest money in the stock market? I am pretty certain they can, but can they earn better returns in contrast to professional managers? If they can, will they replace hedge fund managers in the future? In this blog post, I will evaluate how AI can be used in investments.

Tremendous amounts of research have been conducted in the area of investments. Some believe in technical analysis, some believe in company fundamentals and others analyse macro-environments. Analysing all this data requires great cognitive capabilities. Too great, even for the most cognitively gifted humans. This is where AI and ML can step in.

Machine learning involves deep-learning. Which makes machines able to handle enormous amounts of big data. Humans are simply unable to process such large amounts of data. Consequently, machines can use and handle significantly more data than a human investor can.

However, does this really mean that AI can outperform a human investor? The stock market is characterised by human greed, stupidity and emotion (Johnson, 2017). Therefore, using all available data in the world is no guarantee for good investment returns.

Then, is there no way for AI to be of use in investing? I think there is. The power of AI lies with the ability to learn everything and processing vast amounts of data (Dassori, 2017). AI in investments is a relatively new technique, and innovations can always provide a slight advantage over the competition. Professional investment firms also see this benefit, and invest rapidly in AI innovations.

In my opinion, having a machine advise you in trading, explaining you the rationale behind possible investments and help you to evaluate the effects of macro-economic events on your investments can be of serious aid. Nevertheless, for now, you should be in charge.

One last thought to take into consideration.. Even if robots that have been taught to invest can earn significantly higher risk adjusted returns compared against professional human investors, an ethical dilemma remains: would you fully trust a machine to invest your savings?

 

References

  1. Brynjolfsson, E. & McAfee, A, 2017. “The business of Artificial Intelligence”.
  2. Dassori, 2017. “Artificial intelligence for investing” Retrieved from: https://blogs.cfainstitute.org/investor/2017/05/31/artificial-intelligence-for-investing/
  3. Johnson, M, 2017. “When it comes to investing, human stupidity beats AI”. The Financial Times. Retrieved from: https://www.ft.com/content/244d8d60-1df9-11e7-b7d3-163f5a7f229c

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