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Cognitive Technologies

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1) Computers can understand and infer meaning.

2) They learn to recognise patterns and learn rules and behaviours.

3) How are smart agents levelling up financial services?

4) What’s next?

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1Computers

can understand and infer meaning

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1) Computers can understand and infer meaning Computers have relentlessly expanded

the range of activities in which they can match or even outperform humans. (Driving cars, playing Ping-Pong etc.).

Computers can now see, listen, read, and write, but also understand and infer meaning. (Facebook can recognize faces with better accuracy than humans. Skype can now translate conversations in real time).

Smart or cognitive systems have reached new levels of sophistication

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1) Computers can understand and infer meaning

Natural language processing is used by many applications like Siri or Google Now.

Sentiment analysis allows agents to determine the emotional state of their interlocutors and react accordingly.

All these features contribute to making interactions with smart agents more and more easy, natural and pervasive.

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1) Computers can understand and infer meaning Virtual assistants provide technical assistance to experts in

aeronautics or oil-platforms to perform complex constructions and repairs.

Embedded smart systems allow autonomous cars to self-drive millions of miles without accidents.

Robots like Baxter can be easily taught literally showing them the actions to perform.

IBM’s cognitive system Watson has already contributed to cancer research by improving diagnosis accuracy.

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1) Computers can understand and infer meaningIPsoft’s Amelia: The first cognitive agent who understands like a human

She understands implied, not just stated, meanings, and improves her performance by hearing humans deal with questions she can't yet answer.

She is able to do the job of a call-centre operator, a mortgage or insurance agent, even a medical assistant, with virtually no human help.

Amelia can understand text, follow processes, solve problems and learn from experience.

Amelia can digest an oil-well centrifugal-pump manual in 30 seconds and give instructions for repairs.

http://www.ipsoft.com/what-we-do/amelia/

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2They learn to

recognise patterns and learn rules

and behaviours

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2) Computers recognise patterns and learn the rules and behaviours

Algorithms are not programmed to cover every possible situation.

Not only is this an impossible task (you cannot generate and store the translation of every possible sentence in every language),

But this is also pointless in many situations (how can you write a guided algorithm if you don’t know the solution to the problem e.g., curing cancer?).

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2) Computers recognise patterns and learn the rules and behaviours

Instead of brute-force calculations, pre-programmed responses and keyword look-up, most of these algorithms learn to recognise patterns and learn the rules and behaviours from examples.

Machine Learning

Machine learning is a subfield of computer science that evolved from the study of pattern recognition and computational learning theory in artificial intelligence. (Source: wikipedia)

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2) Computers recognise patterns and learn the rules and behaviours

This learning component is key to making cognitive technologies work in real environments.

Learning agents don’t need to be reprogrammed each time a new situation arises.

They naturally improve and expand their capabilities with time.

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SMART OR COGNITIVE TECHNOLOGIES, IN THEIR VARIOUS FORMS, ARE NOW SHAPING MANY

BUSINESSES AND INDUSTRIES

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3) How are smart agents levelling up financial services?

The complexity of the financial markets, the vast amount of data, and the need for automation and better customer experience make cognitive technologies the right answer in a variety of situations.

In risk management and compliance, smart agents can evaluate all cases against approved policies and guidelines and understand the complexities of risk exposure.

The financial services industry naturally lends itself to the use of cognitive technologies.

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3) How are smart agents levelling up financial services?

Financial and market analysis can be made more insightful through the analysis of vast amounts of information.

Smart agents can treat open-ended questions and detect key trends and variables that were not hard-coded in the system.

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3) How are smart agents levelling up financial services?

WEALTH MANAGEMENT

Relationship managers advise their clients by

analysing large volumes of complex data such as

research reports, product information,

and customer profiles.

MARKET FINANCE

Smart advisors can now provide cost-effective,

personalized investment advice based on the ever-growing corpus of

investment knowledge.

BANKING

For instance, DBS Bank uses Watson to identify

the needs of wealth management

customers, offer better advice and determines

customers’ best financial options.

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3) How are smart agents levelling up financial services? Robots beat humans in trading battle (2001)

In the first ever test of its kind; a team of robots has beaten humans in simulated financial trading.http://news.bbc.co.uk/2/hi/business/1481339.stm

Artificial Intelligence hedge fund (2015)A trading robot will start trading US equities this year. The team hopes it will deliver returns on the three years and millions of dollars it has taken to build, by turning huge swathes of financial and linguistic data into unique investment strategies.http://qz.com/389647/artificial-intelligence-is-the-next-big-thing-for-hedge-funds-seeking-an-edge/

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4What’s next ?

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4) What is next ?

We have now reached the tipping point where cognitive technology capabilities are powerful and reliable enough to be deployed in real life environments.

Cognitive systems will allow organisations to reduce cost, improve their processes, and focus on their core business.

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4) What is next ?

Cognitive technologies make it possible to automate knowledge work (i.e. tasks that require a certain level of knowledge or expertise) across a broad range of functions.

Some activities will be mostly automated and only require some human supervision (e.g., call centres). Investment advice will be enhanced by the use of cognitive technologies.

Human presence and relationships will, nonetheless, remain essential, albeit to various degrees.

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Learn more on cognitive technologies on: Levelling up financial services through cognitive technologies