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Because the arbitrage opportunity isn't present in the academic papers but at a higher level involving business problems. I say this is an arbitrage opportunit

Because the arbitrage opportunity isn't present in the academic papers but at a higher level involving business problems. I say this is an arbitrage opportunity because AI is essentially commoditizing human intelligence. It didn't take much brains for people to realize cars could do away with horses. You don't need to understand how a car works down to the formula. It's enough to view it as a black box and still know all the outputs and constraints associated with it in order to orchestrate capital that allows you to seize the business opportunity. Again, the arbitrage is buying something for cheap and immediately selling it at a higher price...if you can't understand why a deep level understanding of the academia is not necessary in order to capture the opportunity then less competition for me which is great.

didibus 10y ago
I think just read the Wikipedia articles about it. Also, the Microsoft documentation on Azure Machine Learning and the Amazon one on AML are good high level overview. That should be enough for you to have an idea what expertise you'd want to hire for. Granted, it sounds you're just looking for ML scientists or ML engineers. Data Scientist might also be able to help you out, so that's what you want to hire.
davidivadavid 10y ago
And yet the people who made fortunes in the auto industry were all car makers? What an odd coincidence. But let's indulge your point of view for the sake of the argument. So you've got a black box AI that does something. You know what inputs it needs and what outputs it produces. How do you arbitrage it? What creates the price discrepancy that allows you to arbitrage at all, given that your incapacity to understand the black box renders you unable to gauge its value beyond what the market is telling you? In that case, why not trade any random commodity?
- whyileft 10y ago
  The arbitrage is on the labor. Find someone who can build x for y and then sell it for z. The arbitrage opportunity comes from creating or obtaining a market you control. That market can be everything from a platform(Apple) to a collection of sales channels(Oracle) to a monopoly IP position(Microsoft). You do not need find people because they come to you because you control the market. > In that case, why not trade any random commodity? Its much easier to gain control of markets that are new as opposed to established ones.
  - brilliantcode 10y ago
    You nailed it. AI advancement leads to arbitrage opportunities in white collar labor as did mechanical automation lead to arbitrage opportunities in blue collar labor which leads to group of giant firms that collude to keep wages low as a result of the Nash Equilibrium. Apple won't pay workers more than Google does and vice versa. Starting a tit for tat would drive wages high which would increase uncertainty and risk for market monopolies.

didibus 10y ago

I think just read the Wikipedia articles about it. Also, the Microsoft documentation on Azure Machine Learning and the Amazon one on AML are good high level overview. That should be enough for you to have an idea what expertise you'd want to hire for. Granted, it sounds you're just looking for ML scientists or ML engineers. Data Scientist might also be able to help you out, so that's what you want to hire.

davidivadavid 10y ago

And yet the people who made fortunes in the auto industry were all car makers? What an odd coincidence. But let's indulge your point of view for the sake of the argument. So you've got a black box AI that does something. You know what inputs it needs and what outputs it produces. How do you arbitrage it? What creates the price discrepancy that allows you to arbitrage at all, given that your incapacity to understand the black box renders you unable to gauge its value beyond what the market is telling you? In that case, why not trade any random commodity?

whyileft 10y ago
The arbitrage is on the labor. Find someone who can build x for y and then sell it for z. The arbitrage opportunity comes from creating or obtaining a market you control. That market can be everything from a platform(Apple) to a collection of sales channels(Oracle) to a monopoly IP position(Microsoft). You do not need find people because they come to you because you control the market. > In that case, why not trade any random commodity? Its much easier to gain control of markets that are new as opposed to established ones.
- brilliantcode 10y ago
  You nailed it. AI advancement leads to arbitrage opportunities in white collar labor as did mechanical automation lead to arbitrage opportunities in blue collar labor which leads to group of giant firms that collude to keep wages low as a result of the Nash Equilibrium. Apple won't pay workers more than Google does and vice versa. Starting a tit for tat would drive wages high which would increase uncertainty and risk for market monopolies.