Updated: Mar 14
A technology revolutionizing the modern world in all aspects
What is Artificial Intelligence?
Think of a machine or a program which acts as an intermediary between humans without direct contact. This is called Artificial Intelligence (AI). However the response of people towards AI was a failure when it was introduced. But in recent days the people are solely depends upon the Tech Giants like Google, Facebook, Apple etc. and these companies use AI to improve their technologies in order to catch up people's mind. Could you believe that a person has a lifetime dream to buy an iPhone. This situation was not there in the early 2000's. How is this possible ?
AI Influences on People
You may wonder how a machine could replace a human but it's happening. For example in Google if you type anything it gives out the best result for you. Probably you wouldn't command it to give out the best results, then how is it possible ? This is because of AI. Let me explain to you elaborately, Google sets up an AI program in the search bar where you search for your results where it will analyze your previous searches and optimizes the result and gives out the best for you. From this case you can observe that AI reduces our workforce from typing in an elaborate manner. This may seem to be small scale but there are cases where AI is applied in large scale too. For example, many companies are using highly advanced AI programs to manage their database environments and they also use for their software development. This influence people to produce more AI programs to manage works and other development stuffs.
This graph represents the no.of startups developing AI programs and systems. It clearly represents the influence of AI on people over the years and it was at it's peak on and after 2015. Many people were encouraged to do AI systems for enterprises to manage their work and today many companies are relied on AI for workflow and development. The evolution of AI goes on and many new applications are found for effectiveness and capability as the expectations goes on.
Applications of AI
Anyone can create their own AI program or system according to their own flexibility. As anyone can create their AI program it is called as User-Defined system. Being an user-defined system there are many applications of AI around the world. Some of the prominent applications are Machine Learning and Deep Learning.
Machine Learning :
Machine Learning is an application of AI which deals with computer algorithms. You might have a question what is Computer Algorithms ? It is a set of sequence which are pre-build in computers to solve cases and problems. Machine Learning provides the computer or software with the ability to learn automatically. The program for Machine Learning is not necessary to be in a precise manner which is considered as an advantage of Machine Learning. What can Machine Learning be used for ? Machine Learning focuses on the development of computer programs and it is also used for identifying data patterns (tells us the way by which the data has been extracted). Being an automated learning program, Machine Learning identifies the Data Patterns and gives us the ideal decision to make and also used for predictions. Some of the well-known examples are Siri by Apple and Alexa by Amazon.
Deep Learning :
Deep Learning is considered as a subset of Machine Learning where artificial neural networks( a series of algorithms which imitates the function of human brain )and algorithms which are inspired by human brain provides the computer with a broader range of data. As the computer access large amount of data Deep Learning helps the machine to solve complex problems even when it is using an unstructured data pattern. You can observe that I had related the human brain with Deep learning at places. Why is it so ? There are many relations between our human brain and Deep Learning. Firstly, the functions of Deep Learning is well-related to the highly advanced functions of human brain. The Deep Learning has presence of some large elements which are most similar to the neurons present in our human brain. Finally, Deep Learning consists of artificial neural networks which are designed a way too similar to the networks present in human brain. One of the main advantages of Deep Learning is the capacity to execute programs on their own and it combines data using networks to enable the program to be faster.
Types of Artificial Intelligence
There are many number of AI programs out there, but here we're going to have a look on the three predominant types of AI. The three types are namely:
Artificial Narrow Intelligence (ANI)
Artificial General Intelligence (AGI)
Artificial Super Intelligence (ASI)
Artificial Narrow Intelligence (ANI) :
ANI, is an artificial intelligence where it performs only one narrow or simple task at a time. It is used in areas such as weather forecasting, able to play chess, data analyzing and also helps to develop software like Siri and Alexa. This intelligence is also called Weak Intelligence due to its functions and capacity. ANI is considered as Stage-1 in this classification.
Artificial General Intelligence (AGI) :
AGI is the hypothetical intelligence of a machine which has the capacity to understand or learn any task that a human can do. It matches its intelligence with human brain when compared to functions. The paramount target of Artificial General Intelligence is Future Studies. One of the best examples is IBM's Watson, which is an AI program considered as one of the smartest program in the world.
Artificial Super Intelligence (ASI) :
ASI is considered as the future vision of AI. This vision is accomplished when the capability of computers and machines outclass humans. This intelligence when improvised will be the dominant form or position in major sectors of the world. However, Technological researchers and Statisticians disagree this Theory of machines surpassing human-intelligence. One of the main drawbacks of Artificial Super Intelligence is that they can't match the cognitive senses of human and the human perception skills. These two plays a vital role in decision-making situations. For example, imagine there is a popular company which has a CEO. Now the CEO of the company has to make an important decision which has impact on employees across the globe, we can't do any analysis at this time. So, we can't expect anything from a program at this point and here is where humans use their cognitive and perception skills to find a solution. The advantage of ASI is that they have the capability to produce instant reports and they are smart at every moment where humans are not.
Implications of AI in Finance
There are many implications of AI in the finance industry. AI is one of the best in data mining. This advantage can be used in sectors like Wealth Management and Investment Banking where they use data mining for sentiment analysis which means the status of a company like performing, outperforming, poor etc. AI helps the Wealth Management sectors to be efficient by enhancing the accuracy of trading plans and decisions. Nowadays, top wealth management companies like Goldman Sachs , J.P.Morgan and Vanguard Group are using AI for better insight. As AI being an user-defined system financial companies are using trading algorithms which are built using sentiment analysis and other public data sources, helps in processing the data. Banks use Artificial Intelligence to identify fraudulent cases and also provides personalized plans and recommendations for customers. AI has been very helpful in Risk Management by providing optimized models and paradigms (methodologies). Therefore, AI has been a 'game-changer' in the Financial World by shifting it towards technological innovations and still there are many implications of AI in finance.
Can AI change the world ?
The world is fast evolving and there has been a trend in getting anything at instant. For example, in cricket people don’t like to watch a test series instead they are interested in T20 matches. Being a rush-up world people don't have the patience to get a job done within a long period and here is where AI gives up a hand to people to get the job done at instant. AI has the capacity and it functions competitive to our human brain. For example, if we got our hand at fire we would quickly take of our hand from it and this activity would take place within fraction of seconds and this is how AI performs. This is the reason why AI has become more popular. But the question is Can AI change the world ? My answer will be a 'No', because the globe's most abundant and important resource is Human Capital and how can a machine or a program could replace it. Human emotions plays a vital role in this world. Can you ever imagine a world with a sequence of algorithmic programs ? If you ask what is the future of AI it would be robotic devices, smart intelligence, human interaction, etc. but the future of Humans is their vision and nothing is capable of replacing it. Apart from this there is also a bright side of AI. Artificial Intelligence plays a key role in productivity in the future. AI is fully based on automated process which helps in analyzing and predictions. According to a report the market spending of companies is major in cognitive technologies and AI. This reflects how the companies are relied on AI for productivity. AI is also considered as a good investment for the future as it is one of fastest growing technological chain in the world. Therefore AI can't change the world by replacing humans in various sectors but can change the world by shifting people towards a technological side.