{"id":666,"date":"2018-05-04T01:46:54","date_gmt":"2018-05-04T01:46:54","guid":{"rendered":"https:\/\/wdqnt.wpengine.com\/?post_type=idea&p=666"},"modified":"2022-04-25T01:44:46","modified_gmt":"2022-04-25T01:44:46","slug":"the-artificial-intelligence-gambit","status":"publish","type":[9],"link":"https:\/\/www.worldquant.com\/ko\/ideas\/the-artificial-intelligence-gambit\/","title":{"rendered":"The Artificial Intelligence Gambit"},"content":{"rendered":"","protected":false},"featured_media":660,"template":"","tags":[22,92,65,23],"topic":[21],"team":[],"class_list":["post-666","idea","type-idea","status-publish","has-post-thumbnail","hentry","tag-artificial-intelligence","tag-big-data","tag-innovation","tag-machine-learning","type-leadership","topic-science-technology"],"acf":{"authors":[{"name":"Igor Tulchinsky","author_link":{"ID":183,"post_author":"1","post_date":"2022-03-23 13:19:01","post_date_gmt":"2022-03-23 13:19:01","post_content":"","post_title":"Igor Tulchinsky","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"igor-tulchinsky","to_ping":"","pinged":"","post_modified":"2025-12-16 15:31:10","post_modified_gmt":"2025-12-16 15:31:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/wdqnt.wpengine.com\/?post_type=people&p=183","menu_order":0,"post_type":"people","post_mime_type":"","comment_count":"0","filter":"raw"}}],"header_image":{"ID":1286,"id":1286,"title":"Computer,Artificial,Intelligence,Hand,Concept,Of,Check,Mate,Against,A","filename":"1660x1072px-Artificial-intelligence-gambity-scaled.jpg","filesize":281403,"url":"https:\/\/www.worldquant.com\/wp-content\/uploads\/2022\/04\/1660x1072px-Artificial-intelligence-gambity-scaled.jpg","link":"https:\/\/www.worldquant.com\/ko\/ideas\/the-artificial-intelligence-gambit\/computerartificialintelligencehandconceptofcheckmateagainsta-2\/","alt":"","author":"5","description":"","caption":"Computer artificial intelligence hand concept of check mate against a white king chess piece. AI technology brain of a robot arm supersedes human power. Copyspace area.","name":"computerartificialintelligencehandconceptofcheckmateagainsta-2","status":"inherit","uploaded_to":666,"date":"2022-04-20 01:30:53","modified":"2022-04-20 01:30:53","menu_order":0,"mime_type":"image\/jpeg","type":"image","subtype":"jpeg","icon":"https:\/\/www.worldquant.com\/wp-includes\/images\/media\/default.png","width":2560,"height":1910,"sizes":{"thumbnail":"https:\/\/www.worldquant.com\/wp-content\/uploads\/2022\/04\/1660x1072px-Artificial-intelligence-gambity-150x150.jpg","thumbnail-width":150,"thumbnail-height":150,"medium":"https:\/\/www.worldquant.com\/wp-content\/uploads\/2022\/04\/1660x1072px-Artificial-intelligence-gambity-400x298.jpg","medium-width":400,"medium-height":298,"medium_large":"https:\/\/www.worldquant.com\/wp-content\/uploads\/2022\/04\/1660x1072px-Artificial-intelligence-gambity-768x573.jpg","medium_large-width":768,"medium_large-height":573,"large":"https:\/\/www.worldquant.com\/wp-content\/uploads\/2022\/04\/1660x1072px-Artificial-intelligence-gambity-1024x764.jpg","large-width":1024,"large-height":764,"1536x1536":"https:\/\/www.worldquant.com\/wp-content\/uploads\/2022\/04\/1660x1072px-Artificial-intelligence-gambity-1536x1146.jpg","1536x1536-width":1536,"1536x1536-height":1146,"2048x2048":"https:\/\/www.worldquant.com\/wp-content\/uploads\/2022\/04\/1660x1072px-Artificial-intelligence-gambity-2048x1528.jpg","2048x2048-width":2048,"2048x2048-height":1528}},"synopsis":"

The recent success of DeepMind\u2019s computer chess program illustrates the power of AI to cause major disruptions in every industry, including asset management.<\/h2>\n","article_content":"

In early December, a group of researchers from\u00a0DeepMind Technologies<\/a>, a London-based artificial intelligence enterprise acquired by Google in 2014, shocked the chess world when they\u00a0published a paper<\/a>\u00a0detailing how their company\u2019s AlphaZero program had handily defeated the leading computer chess program after teaching itself to play the game in just four hours. Unlike typical programs, which analyze tens of thousands of games by grandmasters and use an opening book and endgame table to arrive at the optimal move, AlphaZero was armed with only the basic rules of chess. Beginning from random play, its tabula rasa algorithm learned by playing against itself, game after game. \u201cIt\u2019s a remarkable achievement,\u201d former World Chess champion Garry Kasparov told Chess.com. \u201cWe have always assumed that chess required too much empirical knowledge for a machine to play so well from scratch, with no human knowledge added at all.\u201d<\/p>\n

AlphaZero won 28 out of 100 games against its computer opponent, Stockfish, without losing even once (the other 72 games were draws). Perhaps most impressive was the efficiency of the AlphaZero program: It evaluated 80,000 positions per second, compared with 70 million for Stockfish. \u201cAlphaZero compensates for the lower number of evaluations by using its deep neural network to focus much more selectively on the most promising variations \u2014 arguably a more \u2018human-like\u2019 approach to search,\u201d wrote DeepMind\u2019s researchers.<\/p>\n

DeepMind\u2019s recent success has implications that go well beyond the world of chess. Artificial intelligence will cause major disruptions in every industry as computers increasingly take on tasks that in the past have required human intelligence. Using neural networks, deep learning algorithms and other\u00a0machine learning<\/a>\u00a0methods, computers free up people from monotonous tasks so they can work on more complex and valuable projects. Consulting firm Deloitte is calling for an exponential increase in commercial AI-based applications over the next three to five years. \u201cWe have reached the tipping point where adoption of machine learning in the enterprise is poised to accelerate, and will drive improved business operations, better decision making and provide enhanced or entirely new products and services,\u201d says Deloitte vice chairman Paul Sallomi.<\/p>\n

More Profound than Electricity<\/strong><\/h3>\n

Artificial intelligence\u2019s potential for improving productivity has not been lost on heads of state and corporate chiefs. This past January, U.K. Prime Minister Theresa May committed to develop her country\u2019s artificial intelligence technology, which the government believes could add \u00a3630 billion ($895 billion) to its economy by 2035. Google CEO Sundar Pichai recently remarked that artificial intelligence is \u201cprobably the most important thing humanity has ever worked on,\u201d calling it \u201cmore profound than electricity or fire.\u201d<\/p>\n

The artificial intelligence revolution is being fueled by the combination of faster and cheaper hardware, the explosion in cloud computing services and the massive growth in unstructured data. Neural networks like DeepMind\u2019s AlphaZero feed on data; the more data they have, the more problems they can solve. And there\u2019s no shortage of data. IBM estimates that 2.5 quintillion bytes of data are created every day, on average, as people upload 300 million photos to Facebook, perform more than 3.5 billion Google searches, watch 5 billion videos on YouTube and take 10 million Uber rides.<\/p>\n

The exponential growth of data and the quantification of that data are arguably the two most important long-term trends facing investors today \u2014 and they are driving\u00a0innovations in technology for asset management<\/a>\u00a0firms. At WorldQuant, we consider applying AI techniques at different stages of our investment process, from translating data into predictive trading signals, which we call alphas, to combining those signals into strategies and portfolios. While our use of AI has historically involved simple machine learning, we have more recently begun to explore other, more sophisticated AI techniques. That\u2019s one reason we were so excited to see the news about AlphaZero: The program was able to reach a superhuman level of play\u00a0in just four hours<\/em>\u00a0for a nearly 1,500-year-old game that has more possible outcomes than the number of atoms in the observable universe.<\/p>\n

\u201cThe ability of a machine to replicate and surpass centuries of human knowledge in complex closed systems is a world-changing tool,\u201d said Kasparov after AlphaZero\u2019s recent victory. He should know: In 1997 the then\u2013world champion\u00a0lost a six-game match to IBM\u2019s Deep Blue supercomputer<\/a>, starting the AI revolution.<\/p>\n

For the asset management industry, artificial intelligence may be a game changer. Although financial markets are dominated by humans today, human behavior doesn\u2019t change. We learn, driving progress and innovation, but we don\u2019t necessarily evolve rapidly. Unlike humans, AI has the potential to quickly evolve. Each generation of AI can be thought of as a new and more advanced species, and each new and better species of AI holds the potential to shape how markets are approached and analyzed.<\/p>\n

Igor Tulchinsky<\/span><\/strong> is Founder, Chairman and CEO of WorldQuant.<\/em><\/p>\n","endnotes":"","disclaimer":"

Thought Leadership articles are prepared by and are the property of WorldQuant, LLC, and are being made available for informational and educational purposes only. This article is not intended to relate to any specific investment strategy or product, nor does this article constitute investment advice or convey an offer to sell, or the solicitation of an offer to buy, any securities or other financial products. In addition, the information contained in any article is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice. WorldQuant makes no warranties or representations, express or implied, regarding the accuracy or adequacy of any information, and you accept all risks in relying on such information. The views expressed herein are solely those of WorldQuant as of the date of this article and are subject to change without notice. No assurances can be given that any aims, assumptions, expectations and\/or goals described in this article will be realized or that the activities described in the article did or will continue at all or in the same manner as they were conducted during the period covered by this article. WorldQuant does not undertake to advise you of any changes in the views expressed herein. WorldQuant and its affiliates are involved in a wide range of securities trading and investment activities, and may have a significant financial interest in one or more securities or financial products discussed in the articles.<\/p>\n","ideas_panel":{"ideas_panel":{"heading":"Keep reading","subheading":"","articles":[{"ID":664,"post_author":"5","post_date":"2020-02-13 01:38:52","post_date_gmt":"2020-02-13 01:38:52","post_content":"","post_title":"Lessons Learned from Apollo","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"lessons-learned-from-apollo","to_ping":"","pinged":"","post_modified":"2022-04-29 16:49:13","post_modified_gmt":"2022-04-29 16:49:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/wdqnt.wpengine.com\/?post_type=idea&p=664","menu_order":0,"post_type":"idea","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":671,"post_author":"5","post_date":"2017-10-27 02:04:59","post_date_gmt":"2017-10-27 02:04:59","post_content":"","post_title":"Meeting the Challenge of the Quantasaurus","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"meeting-the-challenge-of-the-quantasaurus","to_ping":"","pinged":"","post_modified":"2022-04-25 01:50:06","post_modified_gmt":"2022-04-25 01:50:06","post_content_filtered":"","post_parent":0,"guid":"https:\/\/wdqnt.wpengine.com\/?post_type=idea&p=671","menu_order":0,"post_type":"idea","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":747,"post_author":"5","post_date":"2021-10-08 21:40:33","post_date_gmt":"2021-10-08 21:40:33","post_content":"","post_title":"The Future of Work","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-future-of-work","to_ping":"","pinged":"","post_modified":"2022-04-24 22:42:09","post_modified_gmt":"2022-04-24 22:42:09","post_content_filtered":"","post_parent":0,"guid":"https:\/\/wdqnt.wpengine.com\/?post_type=idea&p=747","menu_order":0,"post_type":"idea","post_mime_type":"","comment_count":"0","filter":"raw"}],"see_more_link":""}},"pdf_file":false},"yoast_head":"\nThe Artificial Intelligence Gambit - 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