In the February 5, 2019 New York Times article, author Eduardo Porter shows that automation is increasing in the workplace. Yet, economic productivity indexes are lagging behind by about 20 years. Thus, automation paradoxically does not guarantee higher efficiency.
Tech Is Splitting the U.S. Work Force in Two.
Take, for example, the post office address database. Towards the end of your online experience, you find yourself filling in the ship-to address. All of a sudden, the system offers you a “best match” as a replacement for the address that you just typed, an address that you know so well to work. Ordinarily, an enlightened design should accept the user input as superior information. On the other side, if human administrators force something else, then they risk introducing errors into the automated procedures, causing an unintended complication in their checkout experience.
Automation can bring with it a whole new set of potential problems. And, we can deduce the way automations can bring with them an entire set of professions trouble shooting these problems.
The Rise of the Financial Machines – Computers increasingly call the shots in financial markets.
In the recent October 3, 2019 blog by The Economist, the author shows that indeed a large percentage of trades are automated, worldwide.
But, how would 100 automated trading systems interact in the global arena? Historically, markets tend to be volatile, and portfolio returns tend to be erratic. It is too much to predict for now. So far, we do not know what changes the automated trading systems may foster on a global scale.
Thus, we are still unsure of the ratio of benefits to disadvantages with regards to automations within trading.
Trading on AI Auto Pilot
Let’s look at an example pilot project for one particular fund.
AIEQ began trading on the NYSE on October 17, 2017. Amazingly enough, the process is controlled via artificial intelligence, and with no human intervention.
However, automated trading systems are proprietary, so no one outside the strategists within knows what they actually do. Ideally, AI should reduce portfolio volatility, and produce steady annual portfolio returns, regardless of the broad market index behaviors. That kind of performance would be a major new achievement.
For now though, as outsiders we can only speculate at the role and consequence of automations within trading.
Unicorn Hunters: These Investors Have Backed The Most Billion-Dollar Companies.
According to CB Insights from May 7, 2019, the majority of Unicorns – profitable jackpot startups – are in the United States (49%) which is followed by China (26%). Some investor entities can sense Unicorn potential, AND those same entities tend to keep discovering MORE Unicorns.
Meanwhile, at the capital-raising events in Florida, many investor groups keep insisting: “It is impossible to predict a Unicorn.” You can reference our opinion on tech startups in Miami. Human herd behavior is alive and well.
Thus, we leave the last opinion on the role and outcome of automations to you. Leave your predictions in the comments section.