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Checkmate

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Most people don't know this... but AI actually made its first big splash years ago in a place you might not expect: The world of chess.
 

Dear Louis,

Most people don't know this...

But AI actually made its first big splash years ago in a place you might not expect: The world of chess.

And chess turned out to be the perfect testing ground for AI...

Because playing chess is ultimately about recognizing patterns and thinking through a series of moves and "what-if" scenarios to arrive at the single goal of checkmating your opponent's king.

But when designers of AI-powered chess-playing programs started testing their systems years ago, they noticed something very peculiar...

The patterns leveraged by the AI-powered programs were extremely bizarre!

The programs used strategies that human players would never come up with... and in many cases, would be outright ridiculed by chess grandmasters.

For example, in chess, a player can "sacrifice" a key piece if he believes that sacrifice will lead to ultimate victory. Sacrificing pieces in the pursuit of victory has been an oft-used strategy in chess for centuries.

However, to the surprise of human players, these AI chess programs often made sacrifices that seemed totally unconventional.

Since then, these AI-created chess strategies have been called "alien" and "chess from another dimension."

But they ended up crushing human players with those unconventional strategies... heck, even grandmasters like the famous Garry Kasparov.

The point of this story is that the AI was arriving at its ultimate goal... but it got there in a way no human would think of.

And that is also the case with the AI investment technology I got to witness the results of during a first-of-its-kind event on AI and investing a few nights ago.

The team behind it took thousands of data sets... poured them into this AI-powered investment tool... and told it to predict the stock price of any individual stock in the market 30 days in advance.

... then they essentially instructed it to "figure it out any way you want."

Like the chess-playing AI programs,  this AI-powered investment tool started making some moves that seemed a little bizarre at first...

But I think that once you see the results for yourself, you'll be as impressed and as excited as I was.

Click here to see it in action yourself.

Good investing,

Marc Chaikin
Founder, Chaikin Analytics

 

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