In the early days of computing, a typical task for a computer program was a numerical computation, such as computing the trajectory of a bullet. In modern days, a typical task for a computer program may involve supporting many people in important decisions backed by a massive database across a global network. As the tasks that computers typically perform have become more complex and more closely intertwined with the daily decisions of people, the behavior of the computer programs increasingly assumes characteristics that people associate with intelligence. When exactly a program earns the label of ‘artificial intelligence’ is unclear. The classic test for whether a program is intelligent is that a person would not be able to distinguish a response from an intelligent program from the response of a person. This famous Turing Test is dependent on factors not easily standardized, such as what person is making the assessment under what conditions. A range of computer programming techniques that are currently, popularly considered artificial intelligence techniques includes (Rada, 2008):
- Knowledge-based techniques, such as in expert systems
- Machine learning techniques, such as genetic algorithms and neural networks
- Sensory or motor techniques, such as natural language processing and image processing
These methods may apply to investing. For instance, expert systems have been used to predict whether a company will go bankrupt. Neural networks have been used to generate buy and sell decisions on stock exchange indices. Natural language processing programs have been used to analyze corporate news releases and to suggest a buy or sell signal for the corporate stock. While artificial intelligence (AI) could apply to many areas of investing, much of what happens in computer-supported investing comes from nonAI areas. For instance, computational techniques not considered primarily AI techniques include numerical analyses, operations research, and probabilistic analyses. These non-AI techniques are routinely used in investing