Why aren’t you a slave to an algorithm?

////Why aren’t you a slave to an algorithm?

Why aren’t you a slave to an algorithm?

By | 2013-06-09T08:48:10+00:00 June 11th, 2013|Behavioral Finance|1 Comment
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(Last Updated On: June 9, 2013)

http://www.aeonmagazine.com/world-views/steven-poole-can-algorithms-ever-take-over-from-humans/

A great article by Steven Poole.

He highlights what Turnkey readers are slowing learning via our Models vs. Experts series:

Speaking to the evidence that models beat experts in determining repeat offenders:

In Baltimore and Philadelphia, software is already being used to predict which prisoners will re-offend if released. The software works on a crime database, and variables including geographic location, type of crime previously committed, and age of prisoner at previous offence. In so doing, according to a report in Wired in January this year, ‘The software aims to replace the judgments parole officers already make based on a parolee’s criminal record.

But computers can’t enjoy and understand books like expert critics? …wrong.

In the early days of Amazon, the company employed a panel of book critics, whose job was to recommend books to customers. When Amazon developed its algorithmic recommendation engine — an automated system based on data about what others had bought — sales shot up. So Amazon sacked the humans.

Need a psychotherapist?

A new wave of smartphone apps with eccentric titular orthography (iStress, myinstantCOACH, MoodKit, BreakkUp) promise a psychotherapist in your pocket. Thus far they are not very intelligent, and require the user to do most of the work — though this second drawback could be said of many human counselors too.

Anyway, a fascinating article.

When are you eating humble pie and joining the algorithm-based decision-making revolution?


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About the Author:

After serving as a Captain in the United States Marine Corps, Dr. Gray earned a PhD, and worked as a finance professor at Drexel University. Dr. Gray’s interest in bridging the research gap between academia and industry led him to found Alpha Architect, an asset management that delivers affordable active exposures for tax-sensitive investors. Dr. Gray has published four books and a number of academic articles. Wes is a regular contributor to multiple industry outlets, to include the following: Wall Street Journal, Forbes, ETF.com, and the CFA Institute. Dr. Gray earned an MBA and a PhD in finance from the University of Chicago and graduated magna cum laude with a BS from The Wharton School of the University of Pennsylvania.