Wealth Manager

Understanding Neural Net Machine Learning: A Brief Overview for Investors

Decades ago, trying to create artificial intelligence meant building software systems that directly reflected the kinds of rules that govern human thinking. Despite many millions of dollars being poured into such efforts by organizations like the Defense Advanced Research Projects Agency, computer scientists never made much progress along this front.

More recently, a very different approach to artificial intelligence has been producing impressive results in a tremendous range of applications. From systems that recognize or translate human language to those that classify and identify images, artificial intelligence based on neural networks has proved successful where the old fashioned perspective did not.

This powerful new style of artificial intelligence is now being applied to wealth management, as well. Working with an Investment Advisor who understands how to make the most of neural net systems in the context of investment can open up entirely new possibilities.

Leveraging the Power of a Network of Virtual Neurons

Although the human brain is capable of some incredibly impressive feats of reasoning and imagination, it is made up of fairly simple parts. The average person's brain contains somewhere around 100 billion individual structures called neurons, with each activating under certain conditions.

Instead of handcrafting algorithms that are meant to reflect human thought in the digital realm, today's artificial intelligence experts confine themselves to creating software networks made up of many virtual neurons. These systems can then be supplied with learning material and encouraged to develop in certain directions that suit the overarching goal.

With incredible amounts of computing power and other resources now being available to such neural networks, truly impressive results are being produced in a wide variety of settings. Of the most recent developments in the field, the application of this style of artificial intelligence to the field of investing is likely one of the most promising and interesting of all.

Real Benefits for Investors

Naturally enough, making good use of this advanced technology is not something that every financial specialist is prepared or equipped to accomplish. Seeking out a wealth manager who specializes in this approach to the domain will always make a rewarding experience much more likely.

For investors who do make the effort, experts believe that improved returns can be generated compared to passive approaches and even the best conventional management services. At the same time, neural networks trained to minimize volatility and risk are achieving these kinds of results in far more predictable and confidence enhancing ways than used to be possible. As a result, this relatively new application for the most powerful type of artificial intelligence is quickly become one of the most highly regarded.