Machine learning is a method of data analysis that automates analytical model building. As a branch of artificial intelligence (AI), it is based on the idea that systems can learn from data, identify patterns and make decisions with minimal human intervention. The use of machine learning has increased across the financial services industry, although problems such as data quality do continue. This interesting news came to us from Reuters in their article, “Machine-learning on the rise in financial services: Refinitiv.”
Machine learning uses algorithms and statistical models in financial markets without using human directions. It relies on patterns to make choices instead.
Machine learning has been a favorite with deep-pocketed hedge funds, which have combined complex algorithmic strategies with financial data to make big bets on markets. However, with the growing use of cloud computing and the constant pressure on banks to reduce costs, machine learning techniques have also seen a greater acceptance.
Melody K. Smith
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