Rule-Based Reasoning

Data: As with all ML applications, quality data is foundational to building anti-fraud ML systems. Data sets are only growing larger, and as the volumes increase, so does the challenge of detecting fraud. Thankfully the adage that more data equals better models is true when it comes to fraud detection. The make-or-break factor is having a ML platform that can scale as data and complexity increase. Multiplicity: There's no single ML algorithm or method that works best for fraud detection.

The worst foreign-policy decision by the United States of the last generation – and perhaps longer – was the "war of choice" that it launched in Iraq in 2003 for the stated purpose of eliminating weapons of mass destruction that did not, in fact, exist. Understanding the illogic behind that disastrous decision has never been more relevant, because it is being used to justify a similarly misguided US policy today. The decision to invade Iraq followed the illogic of then-US vice-president Richard Cheney, who declared that even if the risk of WMD falling into terrorist hands was tiny – say, 1% – we should act as if that scenario would certainly occur. Such reasoning is guaranteed to lead to wrong decisions more often than not. Yet the US and some of its allies are now using the Cheney Doctrine to attack Chinese technology.

People often talk about artificial intelligence as if it were all one thing. It's more accurate to think of AI as a collection of approaches to problems. An AI system usually combines several approaches, doing whatever produces the best results. The design of a piece of software needs to decide what problem domain it will cover. In other words, what class of problems will it deal with?

According to a report by IDC, worldwide spending on artificial intelligence systems is forecast to reach $35.8 billion in 2019, an increase of 44.0% over the amount spent in 2018. The report also predicts that the retail sector will lead the spending, followed by the banking sector. Artificial intelligence is well-positioned to impact various sectors like retail, healthcare, banking, finance, discrete manufacturing, transportation, etc. According to a Gartner survey, 37% of organizations have implemented AI in some way.

According to a report by IDC, worldwide spending on artificial intelligence systems is forecast to reach $35.8 billion in 2019, an increase of 44.0% over the amount spent in 2018. The report also predicts that the retail sector will lead the spending, followed by the banking sector. Artificial intelligence is well-positioned to impact various sectors like retail, healthcare, banking, finance, discrete manufacturing, transportation, etc. According to a Gartner survey, 37% of organizations have implemented AI in some way. In the early stages, AI was based on rule-based systems, in which, the AI system depended on a knowledge base of rules to deliver business value.

In the consumer realm, technologies based on artificial intelligence (AI) are slowly changing the way we manage everyday tasks. Take the driving app Waze, for example. Waze uses crowdsourced data, social networking conversations, and cognitive learning to help shave time off daily commutes by providing the most efficient route based on current conditions and individual driving preferences. Or consider products like Nest. Gone are the days of paying to heat or cool your house while no one's home.

According to a report by IDC, worldwide spending on artificial intelligence systems is forecast to reach $35.8 billion in 2019, an increase of 44.0% over the amount spent in 2018. The report also predicts that the retail sector will lead the spending, followed by the banking sector. Artificial intelligence is well-positioned to impact various sectors like retail, healthcare, banking, finance, discrete manufacturing, transportation, etc. According to a Gartner survey, 37% of organizations have implemented AI in some way. In the early stages, AI was based on rule-based systems, in which, the AI system depended on a knowledge base of rules to deliver business value.

Former Google CEO Eric Schmidt urged cooperation with Chinese scientists, warned against the threat of misinformation, and advised against overregulation by governments today in a broad-ranging speech about AI ethics and regulation of big tech companies. He also talked about conflict deterrence between nation-states in the age of AI and pondered how secretaries of state might share information in the coming age of artificial general intelligence (AGI). "What are the norms of this? This area strikes me as one that's nascent but will become very important as general intelligence becomes more and more possible some time from now," he said. "We haven't had a common regime around how all that works."

Sana Benefits, an Austin company that wants to disrupt the healthcare insurance industry with more efficient software, said it has raised $6.3 million in seed funding. The company joins a raft of upstarts disrupting a notoriously inefficient healthcare system. These startups include players like Oscar Health, Clover, and Bright Health -- all of which have raised hundreds of millions to billions of dollars over the last few years. Most of them have been focused on individuals and not as much on the employer plans that cover half of Americans. Sana distinguishes itself in that it's one of the few new providers focused on providers, and specifically the market for small and medium sized businesses (a thousand or fewer employees).

Identity fraud, in which a slice of your identity ranging from new credit cards to entire bank accounts is taken over by criminals, rose by 49 per cent in 2015 on the previous year. That totalled almost 170,000 cases, according to data collected by Cifas, the financial industry's non-profit fraud advisory service. The reason for the rise is that more and more we use the internet for financial transactions, but have very few ways to verify our identity without cumbersome systems involving human interaction, which are also vulnerable to fraud. Cifas' 2015 Fraudscape report shows that 86 per cent of identity fraud happened online, with bank accounts and credit or debit cards most targeted, closely followed by loans and communications, typically mobile phone accounts. Businesses looking to tackle fraud are turning to artificial intelligence and deploying neural networks because the systems learn in a manner like the brain's own neurons to try to bust fraud Traditionally, companies dealing with such problems have acted after the fact, trying to unravel complex or opportunistic frauds by working back through audit trails.