(Yicai Global) March 30 -- The first and the largest boom in AI will go off in the financial sector, proclaims a bold prediction by Chinese innovative technology investor Dr. Kai-Fu Lee, who thinks 80 percent of financial industry staff will be outwitted and dislodged by artificial intelligence (AI) in the next ten years, he said March 28.
Founder of Sinovation Ventures Lee ticked off four prerequisites for smooth AI operation. One, that data be astronomical; two, data size is annotated -- e.g. stock market marked rising or declining -- and personal credit stamped repaid or outstanding. Third, it deploys in a single sector of the utmost verticality without any cross-sector application; and fourth, top AI experts must come to the fore.
He thinks the financial industry meets all four conditions.
First, the financial data size from loans, insurance and banking to investment is enormous, and data are digital and so need no conversion; second, financial data have clear annotations, with paid loans stamped positive and unpaid tabbed negative, so rising stock is checked positive and falling ticked negative; third, lenders provide loans and insurers provide insurances with clear boundaries and no crossover; and fourth, the financial sector has gathered many AI experts, said Lee.
Lee also cited the lack of hindrances in the financial industry as another key source of AI's splash in the sector.
"Any obstacle for AI, say when producing robots or hardware, or creating product channels, would be upsetting," said Lee. The internet and mobile internet bridge man and digits. "Is it worth it for a man to vacillate 10 hours before deciding whether to borrow USD145 (CNY1000)? Of course not," Lee said, "and AI takes only 8 seconds to provide the services and loans."
AI and quantitative investment have already claimed the heads of 70 percent Wall Street traders, he said. Lee thus thinks the financial arena will be the first to stage a game-changing revolution by AI. AI can toil 24/7 without fatigue, strike or fussing. It is more accurate, makes no mistakes, and can expand infinitely.