Thursday, December 22, 2016

Forget About AI - Machine Learning Is What Matters

IT, like any other mature industry,  shows less and less capacity for the true and radical innovation. This is proven yet again with the latest waves of AI noise ( skyrocketing NIPS attendance, mediocre Salesforce Einstein software, crazy prices for companies repackaging old Machine Learning concepts).

What is a typical (or major ) financial institution to make and do about the latest craze ?

AI is a wide discipline with many, typically siloed i.e. disparate problem areas - it offers domain specific solutions to diverse, often unrelated sets of problems ( self-driving cars; recommendation systems; speech recognition ). It is also completely empirical ( result driven ), with no theoretical foundations or explanations why artificial neural network work the way they do, for example. (" But it works " - G. Hinton  51:00).

We remember quite well noises, notions and semi-flops of the past ( CASE, OODBMS, Y2K, Hadoop ). Even the Cloud made limited direct inroads to the standard enterprise landscape.  Cloud didn't became mainstream replacement for on premise hardware and software, as majority of mission critical corporate systems still keep data and run in house.

Oracle CEO Larry Ellison Bashes 'Cloud Computing' Hype ( please note Ellison repented since this 2009 cloud bash episode ).


Consequently we think that, once AI smoke clears and mirrors are gone, all that will be left will be good old Machine Learning ( lucratively renamed Deep Learning ), which will hopefully gain some foothold in more forward thinking ( or more adventurous ) financial establishments.



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