How Hybrid Intelligence is the Next Logical Step in Market Analysis

Mankind has continually evolved ever since he crawled out of the primordial muck. The methods and tools he used to adapt himself to the world have evolved over time as well. He first used a club against his enemies, and this club was later replaced by the sword and then the firearm. Fire was harnessed to bring light to the darkness and to cook food, and was replaced by the modern light bulb and electricity over time. As the centuries marched on, man found innovative new ways to build and create.

The modern technological marvel that has impacted every aspect of our lives is the computer. This impact has been especially felt in the financial world as artificial intelligence and algorithms were heralded as breakthroughs which could process and analyze a staggering amount of data in seconds. Yet there are limitations to what AI can produce despite the best efforts of programmers. This has led to the realization of the vast potential of merging the collective intelligence of human beings with the processing power of AI: hybrid intelligence. This new phenomenon of man and machine working together is the next logical step in market analysis.

The sponsors of this article, Cindicator, are harnessing the power of hybrid intelligence to shake up the current state of international finance. They know that the human factor, once discounted at the start of the computer age, is actually a vital component of creating extremely accurate forecasts for emerging trends and opportunities. One could say that hybrid intelligence is looking back at the past in order to move ahead into the future.

The financial market has been in existence ever since one person wanted something that belonged to another and was willing to trade for it. Over time, financial markets became more complex as forms of currency were introduced and long-range trade routes became established. The first merchant banks were established in Italy and concerned financing and underwriting crop production. The first foreign exchange contract was created in Genoa in 1156, and prominent banking families eventually arose in several nations: the Bardi and Mozzi families in Italy and the Fuggers and Welsers in Germany. The key factor in financial markets was the human factor. Individuals relied upon their intuition, gut instinct, and acquired knowledge to make profitable decisions. One had to keep their finger upon the pulse of the marketplace in order to be successful, and this mode of interacting with the market remained essentially in place until the 20th century.

Computers and its accompanying artificial intelligence took the financial world by storm. Computers had the advantage to process millions of data points in seconds, something that no human was capable of doing, as well as not being swayed by emotions or bias. Algorithms were written to analyze the market, looking for trends and investment opportunities. As markets became more complex and trade flourished across the globe, computers and AI were invaluable in sifting through the digital mountains of data. However, it eventually became apparent that the predictions made by AI were hit-or-miss over the long run. It was also realized that small glitches could lead to huge consequences. A computer glitch caused Knight Capital to lose $400 million within 30 minutes back in 2012. New platforms like Cindicator, the decentralized platform of efficient asset management, began to look at taking the next evolutionary step forward in market analysis.

Cindicator realized that the next logical step forward in market analysis is hybrid intelligence, which combines the best elements of both artificial intelligence and human intuition and experience. Studies have long shown that guesses made by a large pool of individuals is unerringly correct. The problem with human forecasts in the past and present is that they often come from a small, insular group of people. In such a situation, they just reinforce a singular viewpoint that they commonly share. Cindicator’s use of hybrid intelligence uses a large spectrum of individuals from many different walks of life. Such a large and diverse sampling pool negates any inherent bias, and the collective wisdom of the group is partnered with the number-crunching power and precision of artificial intelligence to make market forecasts and analyses that are much more accurate than AI alone.

For centuries, people analyzed the market forces using their accumulated knowledge and inherent intuition. As technology increased and the complexity of the marketplace increased exponentially, the human factor was jettisoned in favor of the overarching logic and data-devouring prowess of artificial intelligence. It took a few years, but it was eventually realized that the cold algorithms of AI were not a marked improvement upon the human-based system  that had existed before. Pioneers like Cindicator realized that the next logical step in market analysis was to merge the two approaches, taking the best of what each has to offer. The results have shown that this new method of using hybrid intelligence is far superior to what had come before. Just imagine how high the ceiling can be once the infrastructure of this new analyzing construct has been honed and tweaked to its highest level.