Issue 3 2022 19 Jan22178 Intelligent Investing In every industry, artificial intelligence is having an enormous impact on what we do and how we think. Investment is no different, with companies searching for new insights from ever larger datasets. The team at 3AI are leading the way in this regard. In the Artificial Intelligence Awards 2021, 3AI’s product ALBA™ was named Most Innovative Smart Investing AI 2021. We take a closer look to discover more. There is enormous potential in what we can do now with artificial intelligence as machine learning opens up new doors in multiple sectors. A lot of discussion around AI revolves around the relationship between job loss and artificial intelligence. The team behind 3AI design their systems not to create job loss, but to empower the professional workforce. Their incredible product, ALBA, is the perfect example of what they offer to their clients. Its cloud framework performs trillions of calculations per second and to update its stock forecasts. It’s a model which genuinely thinks, considering the implications of the data it has gathered. The team has multiple machine learning solutions designed specifically for professional investing challenges, from stock picking to identifying which investment assets best optimise a balance sheet. Machine learning does not think in the same way a human does, and the key is to find ways of marrying both organic and non-organic intelligences. With hundreds of thousands of public companies, each with unique financial, exchange, analyst and news-based data, there’s simply too much information today for a human to become an empirical expert in equities. The power of machine learning is being able to understand and explain the meaning of this data and ALBA does both. The driving force of 3AI is their principle that their AI must attain superhuman level performance before being released to market. To act as a tool for people, it must be capable of delivering better results than them. ALBA allows people to think at scale. The success of this approach can be seen in the way that its top 1% rated stocks, as selected January 1st last year, outperformed its bottom 1% by 58.3%, as compared to a 7.8% outperformance over the same period using the collective wisdom of around 18,000 professional research analysts. 3AI are well versed in introducing new technological breakthroughs, having previously come to national acclaim winning Information Age’s Data 50 Award in finance as the former data science department of a leading UK insurer. Here their self-learning AI solved balance sheet investing challenges and discovered new principles adopted by the Chief Investment Officer. ALBA as a core AI is thought of by the team as an “intelligence” or expert like any other and covering all global stocks. It has application to any and everyone who invests worldwide. Introduced to market at the end of last year, they have already been inundated with interest from the world’s leading funds. 3AI are offering ALBA’s predictions & insights as a data service for systematic investors, and as an AI assistant & additional pair of eyes performing the work of thousands of data scientists for discretionary investors, who do not have the infrastructure in place to research, develop and deploy machine learning at scale. 2022 will see the release of a new set of intelligent factor models for fund customers, enabling systematic investors to rapidly discover new information in aggregated versions of the proprietary factors engineered for ALBA. The team are also intending to release a new set of ALBA powered indexes for global stocks. These will power the world’s first investment products actively using artificial intelligence and big data to scour the global equity markets for the best investment opportunities. The disruption potential is huge here. With an overlaid software interface, ALBA is able to take all the data market practitioners can find in a professional terminal such as Bloomberg, analyse it and turn it into future meaning. This was not imaginable when Mike Bloomberg formed his company in 1981, just as ALBA would not be possible without the work data aggregators like his have achieved. Likewise, a major index like the S&P 500 has not been challenged since its creation in 65 years ago, yet it doesn’t analyse or think – naively holding more of a stock if its price rises without regard to valuation. Extracting information from data is far from a new process, but the team at 3AI have found a way to perform it at scale. Whilst many are worried about the impact of this new technology, those who are more aware of the broader environment are better equipped for future survival. Machine learning is here to stay. It’s the future, and 3AI sits at the forefront of what this future has to offer the financial sector. Company: 3AI Ltd. Name: Jacob Ayres-Thomson Email: [email protected] Web Address: www.3ai.co
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