In this case, a consumer achieves a higher credit score if he/she has not defaulted on previous transactions and a lower one if he/she has had several previously failed transactions. Assuming I've sufficient historical data to work with that has labeled transactions for failure/success, what would be the class of machine learning techniques I should be looking into? I believe it could be a regression problem, but I'm not quite sure. Several research papers deal with estimating consumer credit risk but I'm uncertain if this is what I'm supposed to be looking at.

The online world has blossomed with machine-driven riches. We don't send letters; we email. We don't look up a restaurant in a guide book; we look it up on OpenTable. When a computer that makes any of this possible goes wrong, we even search for a solution online. We thrive on the multitude of "signals" available. But where there's signal, there's "noise"--inaccurate, inappropriate, or simply unhelpful information that gets in the way. For example, in receiving email, we also fend off spam; while scouting for new employment, we receive automated job referrals with wildly inappropriate matches; and filters made to catch porn may confuse it with medical photos. We can filter out all of this noise, but at some point it becomes more trouble than it's worth--that is when machines and their algorithms can make things much easier. To filter spam mail, for example, we can give our machine and algorithm a set of known-good and known-bad emails as examples so the algorithm can make educated guesses while filtering mail. Even with solid examples, though, algorithms fail and block important emails, filter out useful content, and cause a variety of other problems. As we'll explore throughout this report, the point at which algorithms fail is precisely where there's an opportunity to insert human judgment to actively improve the algorithm's performance.

The computer science community has been exploring the role of artificial intelligence (AI) in systems for more than a half-century. In the last few years, AI development has reached a threshold of practicability, and AI capability is now emerging in sectors ranging from vehicles, logistics, and military systems to health care, financial services, and smart cities. The economic and societal impacts could be dramatic, and investment in the development of AI applications is now a world-wide phenomenon. Many technical leaders now believe that the principal limits on exploiting AI derive primarily from our confidence in the safety of these smart systems – that they will operate in a safe and controlled manner. Some AI experts have asserted that the ability to assure safety and control is more important to the future of AI even than improvements in the AI algorithms themselves.

Artificial intelligence researchers are grappling with more realistic questions like whether their creations will take too many jobs from humans. Eight years after leading artificial intelligence scientists said their field did not need to be regulated, the question of government oversight has re-emerged as the technology has rapidly progressed. On Tuesday, at an event sponsored by the White House Office of Science and Technology Policy, legal specialists and technologists explored questions about autonomous systems that would increasingly make decisions without human input in areas like warfare, transportation and health. Still, despite improvement in areas like machine vision and speech understanding, A.I. research is still far from matching the flexibility and learning capability of the human mind, researchers at the conference said. "The A.I. community keeps climbing one mountain after another, and as it gets to the top of each mountain, it sees ahead still more mountains," said Ed Felten, a computer scientist who is a deputy chief technology officer in the Office of Science and Technology Policy.

In today's BIGcast, I look into the Facebook chat bot as a tool for credit unions to communicate with members, and share my concerns related to its EULA, and how information is collected not only by Facebook, but by Microsoft, Amazon and other artificial intelligence organisations. I've had discussions with Timothy Ruff at Evernym on how to develop a private chat based on artificial intelligence that protects member privacy. I also offer an explanation of how artificial intelligence works, including how AI services use stories, actions and'intents' to learn, the learning process, and how they build their own code. Also, how can credit unions benefit by adopting AI technology for member communications, compliance and risk management? I provide an overview of how AI works through a presentation from Viv.ai of how a machine can write its own code in real-time, and how it can continue to learn based on internal and external conversations, as well as conversations from different programs and systems.

Between recent controversies over Facebook's Trending Topics feature and the U.S. legal system's "risk assessment" scores in dealing with criminal defendants, there's probably never been broader interest in the mysterious algorithms that are making decisions about our lives. That mystery may not last much longer. Researchers from Carnegie Mellon University announced this week that they've developed a method to help uncover the biases that can be encoded in those decision-making tools. Machine-learning algorithms don't just drive the personal recommendations we see on Netflix or Amazon. Increasingly, they play a key role in decisions about credit, healthcare and job opportunities, among other things.

Between recent controversies over Facebook's Trending Topics feature and the U.S. legal system's "risk assessment" scores in dealing with criminal defendants, there's probably never been broader interest in the mysterious algorithms that are making decisions about our lives. That mystery may not last much longer. Researchers from Carnegie Mellon University announced this week that they've developed a method to help uncover the biases that can be encoded in those decision-making tools. Machine learning algorithms don't just drive the personal recommendations we see on Netflix or Amazon. Increasingly, they play a key role in decisions about credit, healthcare, and job opportunities, among other things.

MARLO, the 3D bipedal robot that belongs to electrical engineering professor Jessy Grizzle and his team of students, is starting to really figure out this walking thing. Here, robotics PhD student Ross Hartley watches as MARLO demonstrate's her ability to conquer tough terrain. Image credit: Evan Dougherty, Michigan EngineeringANN ARBOR--An unsupported bipedal robot at the University of Michigan can now walk down steep slopes, through a thin layer of snow, and over uneven and unstable ground. The robot's feedback control algorithms should be able to help other two-legged robots as well as powered prosthetic legs gain similar capabilities. "The robot has no feeling in her tiny feet, but she senses the angles of her joints--for instance, her knee angles, hip angles and the rotation angle of her torso," said Jessy Grizzle, professor of electrical engineering and computer science and of mechanical engineering.

The use of a range of Machine Learning algorithms to help people make sense of large complex unstructured data sources is increasing rapidly. As a provider of solutions addressing major challenges in the area of defence and national security, Montvieux is involved in a number of projects applying state-of-the-art techniques such as Deep Belief networks to model significant patterns in data and predict future events. Their clients' needs are by nature fast-moving, and they have identified a need for intelligent visualisation and support tools to assist in their work. UWE's Artificial Intelligence group has a long history of theoretical and applied work creating and applying Machine Learning systems, with an emphasis on the use of intelligent interactive systems to facilitate this process. The student's time will be equally split between UWE and Montvieux's offices in Tewkesbury, to provide a valuable range of experiences and environments.

Deep learning is a technique used to solve complex problems such as natural language processing and image recognition. We are now able to solve these computational problems quickly, thanks to a component called the Graphics Processing Unit (GPU). Originally used to generate high-resolution computer images at fast speeds, the GPU's computational efficiency makes it ideal for executing deep learning algorithms. Analysis which used to take weeks can now be completed in a few days. While all modern computers have a GPU, not all GPUs can be programmed for deep learning.