The above are a few but important applications in the financial markets. Other applications are in the R&D stage. It only seems to be a matter of time before they are out and available.

The story back home

India is not lagging behind.  In Delhi two computer scientists cum entrepreneurs have successfully utilized AI in portfolio management services.  The fund management firm runs on a mathematical model that integrates data analysis and AI to manage their stocks and funds. Hedge funds are increasingly turning to artificial intelligence in order to spot trends to try to make money for their customers.

There are at least 22 Indian AI companies (and counting) that started developing as early as 2005. But the majority of AI companies in India have come up in the last 3 years. The trend is only expected to continue.

Creation Vs the Creator?

It is believed that it took about 30 years to develop and build the first self learning algorithm that analyses and predicts stock markets. Based on machine learning, research is continuously done globally and in India to improvise the use of AI into financial markets. Asset managers have increasingly resorted to using artificial intelligence in managing their investments. Using techniques such as data mining and deep learning, they are trying to analyse tons of data and (including social media news and information) to develop portfolios for investment.

As recent as December, 2017, Bloomberg reported that a hedge fund manager and a computer scientist have found a promising new way to use artificial intelligence to pick stocks over longer periods than the typical machine-driven approaches that are currently being favoured by Wall Street. Bloomberg also reported in August 2016 that a hedge fund robot out smarted its human creator by investing more profitably than him. With efforts on to integrate to bring in the “creative” element into machines, it remains to be seen whether the creation outsmart the creator.

AI governed by Laws?

Advanced nations are yet to catch up with the need to put in place stringent legislations to tackle with issues arising out of ownership, development, use and monitoring of AI.

India is yet to have a comprehensive law governing development and regulation of its artificial intelligence. There are some independent bodies whose aim is to better research and development of AI to its maximum potential. Non-profit Societies such as Artificial intelligence Association of India (AIAI) were incorporated in 2009 with the objective to understand mechanisms underlying human intelligence and integrate it with machines; increase public awareness of AI.  Another organisation – the Artificial intelligence and Robotics – an arm of the DRDO is engaged in developing AI that can be used by strategic government departments and law enforcement agencies. However there is no exclusive legislation in place yet. Development of laws also become imperative in face of intellectual property rights issues with respect to such developed AI machines / robots / software programs. Our existing laws do not charge a machine or robot for criminal charges or IPR infringement. Tapping on the increasing potential of AI, especially after the “Digital India” program, the government announced in the Union budget, 2018 government doubled the fund allocation to the think tank NITI Ayog for development of AI programs. This has clearly been done with the objective of the national defence and security and also facilitate ease of doing business. Human intelligence....to develop artificial intelligence!