Читать книгу Artificial Intelligence for Asset Management and Investment - Al Naqvi - Страница 34

The intelligence era connects all ten schools into one—the intelligence-centric competitive advantage. In doing so the competitive advantage is shaped by factors such as:

 Intelligent machines are deployed to help understand internal and external environments, the existing states, the competitive dynamics, the cultural and social dynamics, and the set of opportunities and threats.

 The product itself, the production platform, and the interlinked network become the source of strategic information.

 The system creates awareness about its own states and transitions to a new state with awareness that a change event has transpired calling for transition.

 The system is viewed as a learning system and is composed of interactive agents that interact with each other and with external systems forming a complex system.

Now let us evaluate what this means for an investment firm:

 Humans and Machines: Investment strategies will result from the interactive and collaborative efforts of machines and humans.

 Products: On the investment strategy side, learning machines (intelligence) will enable us to:

1 develop new investment strategies;monitor the investment environment better;understand our own biases in formulating portfolio or asset selection strategies;predict outcomes;understand metacognitive structures in the markets—for example, stories, narratives, and alpha signals that are not easily detectable;respond quickly to opportunities and threats; anddesign, develop, and offer new products faster.

 Production Platform: On the production platform side, learning machines will help us improve regulatory and governance requirements, help identify and onboard new clients, help us develop and strengthen relationships with institutional clients, increase assets under management (AUM), deploy powerful marketing, provide excellent customer service, give clients powerful insights, enable value added services, introduce new products, and support all other services that are necessary for operations and production.

 Interlinked Network: This means that learning machines help build greater understanding of partners, suppliers, regulators, channel partners, and all other entities with whom the firm interacts.

The competitive advantage of a firm is therefore architected based on the above factors. It is from these factors that firms understand how they will compete and win. It is also across those dimensions that differentiation of a firm would materialize. None of the above factors can be ignored by a firm.

Note that the above discussion focused on intelligence of machines and the resultant augmentation of human capacity to understand our environment and make better decisions. Intelligence, in that context, is one side of artificial intelligence. The other side is automation.