Category : Data Science

AI isn`t smarter than you but is better at data-driven decisions

Artificial Intelligence /AI/ is all around us, and this is not a joke. It is literally everywhere. From chat-bots to smart assistants who are the most visible of its incarnations, through healthcare and architecture, AI has impacted all industries. Today AI is capable enough not only to help designing machinery much faster and more efficiently but also to create actual art.

Let’s face it – AI and its abilities are a significant part of our daily lifestyle, even though we might not suspect this at all. It is quite possible that your personal credit score is defined by AI. Just like the fruits you’ve just put in your basket – their logistic might be designed by AI. Preferences suggestions? Quite likely, they are products of AI. PC & console games, public administration, finance and pharmaceutical businesses, all of them rely on AI for one thing or another. Even the smart vacuum cleaners are advertised as the Artificial Intelligence that sweeps the floor. 

More certainty for the consumer finance business amid COVID-19

“Only when the tide goes out do you discover who has been swimming naked.”

Warren Buffett

Those who act fast and adapt to turmoil will survive and succeed. In the context of the Coronavirus pandemic and the lending business, this means that financial institutions should have instruments to continuously analyze on a permanent basis what is happening and react immediately if needed.

As experts in credit scoring utilizing artificial intelligence (AI) and machine learning (ML), we have prepared this publication to offer an in-depth understanding of the problems the consumer finance business is currently facing. We focus on counteraction mechanisms, emphasizing the potential of automated decision-making in general. The dramatic change in people’s lives, the social distancing measures and the heterogeneous impact of the crisis on particular segments of the population, especially employment, as well as the need for additional financing led to a shock for the consumer finance business. As a result, some businesses have drastically reduced their operations and switched their credit scoring processes to manual loan approvals. This significantly reduced the speed and efficiency of their lending process as a whole. Some companies even chose to shut down part of their business abroad due to fears of significant deterioration of their loan portfolio and the negative effect of the imposed legal measures on debt repayment and collateral liquidity.

How AI is dropping the cost of prediction analytics

Have you ever heard about Moore`s law? In 1965, Gordon Moore, who would later become one of the founders of Intel, wrote a paper claiming that the number of electronic components, which could be placed into an integrated circuit, will double every year. This exponential became known as Moore`s law and turned out to be the foundation of the digital world.

When a computer understands more than you do

It was 1997 when the Deep Blue computer beat the world chess champion, Garry Kasparov. It was the first machine over human victory while playing the mother of all strategic games. Well, even though the Deep Blue computer was created specifically to play chess versus human, it took just a few years more for standard desktop computers to dominate our brains on the chess board. Now there are smartphone chess apps have been able to defeat exceptionally good players.

This was the first time when the machine ‘outminded’ humans. By declaring that AI software scored a better result than humans in a large-scale reading and comprehension test, it seems we are witnessing the second breakthrough.

Data Scientists are 30 years old average and Python is their most used tool

Worldwide known data science community Kaggle did something nice and sweet as industry-wide survey sharing interesting and valuable information on data scientists from around the globe. More than 16 000 data scientists, analysts, experts, and statisticians joined the Kaggle survey which is full of interesting insights. Among the most important is the fact that 3 of every 4 participants rely on Python, followed by R and SQL and the logistic regression is the most commonly used data science method, followed by decision trees and random forests.

Why AI can`t beat the fake news?

As data analytics company, at A4E we are more than familiar with the capabilities and potential of Artificial Intelligence widely known as AI, especially combined with some kind of automation. As society members, just like you, we also know that the fake news is not just pieces of information heavily disliked by politicians with disputable reputations. This is why we are curious whether AI is capable to help users and media businesses to distinguish the real news out of fake ones.

Leo Messi should be the best-paid football player but he is overpaid. Data analytics explains why

Named as one of the best currently active football players in the world, Lionel Messi is also one of the best paid among them all. His Barcelona contract alone is securing him a payment of €40 M per year or €770 000 per week.

Well, recently performed data analytics model confirmed what we all suspected. Even though Messi should be the best paid, he is extensively overpaid. The model and its results are described in a study conducted by a team of Lawrence Technological University in Michigan, which used machine learning and data science to analyze the salaries of 6082 professional football players in Europe. The salary of each was compared to a set of 55 attributes, reflecting each player`s skill set. The model is evaluating scoring and passing accuracy, aggression and vision on the field, speed, acceleration, ball control, physical condition, etc.

When Data Scientists Race Some Fast Cars

Elon Musk and his Tesla Model S started it all. The premium electric sedan was equipped with advanced and self-learning Autopilot system, which can take the chauffeuring work out of the driver. It was a complete breakthrough because if it works as good as it should; it is going to change driving forever. It is all because of Artificial Intellect (AI) and the way it works fueled by data sensors and powered by video analytics. And since we have, to be honest, it wasn’t started by Elon Musk but the automotive industry itself. It doesn’t matter if we talk about rain sensing wipers (Cadillac) or adaptive cruise control (Mitsubishi) or lane departure systems (Mercedes-Benz). Such systems work with predefined events with some variables in the input data and one particular, predefined outcome.

Dealing with multivariable analytics models

Nowadays, mankind possesses a tremendous number of data, regarding many real-life phenomena. The availability of such a source of information is the main premise for the wide spread usage of the data-driven modelling. When account for more factors in the model development, this usually leads to a better ability of the model to represent the specifics of investigated system. Naturally, in fields like economics, society, medicine, etc. the models are with many inputs and many outputs (MIMO).