Episode Summary: In many ways, AI and finance are made for each other. Machine learning and other techniques make it easier to identify patterns that might otherwise not be detected by the human eye, and finance is quantitative to begin with, so that it's hard not to find traction. Financial firms have also invested heavily in AI in the past, and more are starting to tap into the financial applications of machine learning (ML) and deep learning. This week, we're joined by CEO and Co-founder of Kavout Alex Lu, whose company offers AI trading applications for enterprises and individuals. Lu speaks today about the kinds of patterns that traders now have access to in finance, and he gives examples of ways Kavout and other institutions are using artificial intelligence in stock trading to build better and more personalized products and services.

Artificial Intelligence (AI) and robo-advising are hot sectors in the Fintech space. Kavout is a company that wants to provide powerful AI tools for all investors and, for the time being, these tools are free. Alex Lu, CEO and co-founder of Kavout, explains that hedge funds and investment banks are rapidly hiring AI and machine learning developers – pointing to the fact that Goldman Sachs has more software engineers than Facebook. "None of this is a coincidence," says Lu. "The big players know that there is much more to be gained in the markets by investing in artificial intelligence and machine learning. Our aim is to make those technologies available to all investors."

Emerging Seattle-based fintech startup Kavout has just launched its new investment platform, driven by artificial intelligence (AI), for clients to find trading opportunities using tools powered by machine learning and big data, and with a beta-version of the platform made available to investors. As robo-advisors and automated trading products continue to emerge on the retail side, following the use of algorithmic trading and A.I.-driven technology by institutional firms, Kavout's announcement today appears to reflect the growing related interest from the market for such products. Kavout uses what it calls Kai, the core AI and machine learning process that fuels Kavout's main attributes and functions, including scanning historical SEC filings and stock quotes and examining millions of points of data ever second while analyzing stocks using an objective approach. There is also a Kai Score feature within the platform that provides a predictive analysis ranking reflecting data analytics processed for each security, and based on a stock's future performance related to its valuation, growth, momentum and other qualities. An excerpt of the platform as seen below, upon logging into the beta-version of Kavout, shows one of the Kai Score features. Commenting in an official corporate announcement, Kavout's CEO and co-founder Alex Lu said: "On Wall Street, you'll see that many hedge funds and investment banks are hiring top talent in artificial intelligence and machine learning."

Emerging Seattle-based fintech startup, Kavout, just launched its new investment platform, driven by Artificial Intelligence (A.I.), for clients to find trading opportunities using tools powered by machine learning and big data, and with a beta-version of the platform made available to investors. As robo-advisors and automated trading products continue to emerge on the retail side, following the use of algorithmic trading and A.I.-driven technology by institutional firms, Kavout's announcement today appears to reflect the growing related interest from the market for such products. Kavout uses what it calls Kai, the core AI and machine learning process that fuels Kavout's main attributes and functions, including scanning historical SEC filings and stock quotes and examining millions of points of data ever second while analyzing stocks using an objective approach. There is also a Kai Score feature within the platform that provides a predictive analysis ranking reflecting data analytics processed for each security, and based on a stock's future performance related to its valuation, growth, momentum and other qualities. An excerpt of the platform as seen below, upon logging into the beta-version of Kavout, shows one of the Kai Score features. Commenting in an official corporate announcement, Kavout's CEO and co-founder Alex Lu added, "On Wall Street, you'll see that many hedge funds and investment banks are hiring top talent in artificial intelligence and machine learning."