Aladdin – Herd mentality in the digital realm?

Posted: October 21, 2016 in AI, Monetary System, Statistics
Tags: , , ,

AI is not an upcoming trend to watch for. It is a reality becoming ever more present and considerably more powerful with each passing moment.

The following documentary by the acclaimed filmmaker Adam Curtis, only touches upon this in the wider context of his narrative, however I wish to focus particularly on his coverage of the asset management giant, BlackRock, and the Aladdin platform and risk management system it employs.

Adam-Curtis-Hypernormalisation

This sparked my interest into the use of such intelligence within the monetary system itself. The finance industry is clearly not distinct for its use of AI as compared to that of other spheres of life and work. I believe it is worthwhile exploring this in the following articles from The Economist;

The Monolith and the Markets

The rise of BlackRock

ASK conspiracy theorists who they think really runs the world, and they will probably point to global banks… Oil giants …..may also earn a mention. Or perhaps they would focus on the consumer-goods firms that hold billions in their thrall….

One firm unlikely to feature on their list is BlackRock, an investment manager whose name rings few bells outside financial circles. Yet it is the single biggest shareholder in all the companies listed above. It owns a stake in almost every listed company not just in America but globally. …..Its reach extends further: to corporate bonds, sovereign debt, commodities, hedge funds and beyond. It is easily the biggest investor in the world, with $4.1 trillion of directly controlled assets (almost as much as all private-equity and hedge funds put together) and another $11 trillion it oversees through its trading platform, Aladdin

In this context, let me quote Mark Wood, from The Memo;

Machines are only as moral as we tell them to be. And we are all flawed…

…..Machines are logical and lack the emotions that make us human. If we give them the power to think, why should they protect us rather than divide and conquer?

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