How does machine learning help investors?

2 min. reading
Artificial Intelligence / 17 September, 2021
How does machine learning help investors?

Sofía R. Ustáriz Journalist

Machine learning is a term that is heard a lot these days and that has revolutionized the field of artificial intelligence, but in what sense? This term, which is also a branch of artificial intelligence, refers to the learning capacity that a machine has based solely on data, without any programming that indicates it.

The development of machine learning can affect any branch of everyday life that uses artificial intelligence, which basically exists in every electronic device that we use such as cell phones, smart homes or smart homes, virtual assistants and many others; but it’s not limited there.

Artificial intelligence: what is and how we face it

Artificial intelligence: what is and how we face it

We speak of “Artificial Intelligence” (AI) when we refer to those machines or devices that are equipped with an intelligence similar to that of human beings. This term was used for the first time by the computer expert John McCarthy in 1956 and, despite the earliness of the announcement and the time that has passed, it is still not very common to find in our current environment.

Machine learning and finances

The environment of finances has also been impacted by the progress of this branch and has had a positive impact. Through machine learning, financial advisors are able to improve their proposals and estimates, in addition to ensuring availability and access to a certain type of investment.

In the words of José Luis Espinoza, data scientist at BBVA Mexico, “the ‘machine learning’ is a master of pattern recognition, and is capable of converting a sample of data into a computer program capable of extracting inferences from new data sets for which it has not previously been trained”.

As we can see, the strength of machine learning lies in the ability to adapt to changes as they enter a system. This particular aspect is vital to the investment environment, which is always moving and constantly changing.

That is why this technology is being included more often in different fields, including financial. Providing information instantly enables and promotes more accurate decision making, which generates a benefit for the investor in all its stages: investment selection, investment return estimation and trend analysis of the selected investment.

In addition, it gives greater control of your investment portfolio to the customer who has wider possibilities in the palm of his hand.

Machine learning does not replace human thinking when investing

However, it is important to mention that its constant advances and learning to the second do not replace the analytical thinking capacity of the human being -still- and, therefore, are technologies that support the society but that, on their own, they could not produce the same results.

With the passage of time, advances in this branch will continue to be seen and their capacities will be better known by giving them greater independence and scope to absorb and assimilate different data and observe the results of their analysis.

Machine learning is definitely here to stay and its industry is one of the most striking investment trends, thanks to its innovation and ability to continue to grow and support more branches of society, such as medicine, sustainability, finance, and more.


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