So this is the last post. Eight posts later, we have walked through the entire first half of Artificial Intelligence in Finance by Yves Hilpisch. AI fundamentals, neural networks, superintelligence, financial theory. A lot of ground.
Chapter 4 of Artificial Intelligence in Finance opens with something fun: stories about AI beating humans at games. And honestly, these stories are some of the most fascinating parts of AI history. Games sound trivial, but they’re actually perfect testing grounds for intelligence. If a machine can figure out a game on its own, what else can it figure out?
Chapter 3 of Artificial Intelligence in Finance opens with the quote about AlphaGo beating a human Go player. That event was a big deal back in 2016. People thought it would take at least another decade. It didn’t. And that sets the tone for this chapter. AI moves faster than experts predict.
Chapter 2 of Artificial Intelligence in Finance is technically labeled a “Preface,” but it does a lot more than set the stage. Hilpisch opens with a quote from Robert Shiller asking whether financial markets will ever become truly perfect, with every asset priced correctly. It is a big question. And honestly, the way the chapter frames AI in finance around that question is what makes it interesting.
Book: Artificial Intelligence in Finance Author: Yves Hilpisch Publisher: O’Reilly, 2020 ISBN: 978-1-492-05543-3
Here’s a question that bugs me. Can AI actually beat the stock market? Not in a sci-fi movie way. In a real, consistent, make-money-while-you-sleep way.