Culture, Corporate and Business (CCB) Seminar Series
at Peking University HSBC Business School UK Campus
How AI Disruptively Transforms Finance
Dr Daniel Egloff
Founder, Head of R&D, Flink AI
15 May 2019
On Wednesday, 15 May 2019, as a part of the ongoing Culture, Corporate and Business (CCB) Seminar Series at PHBS-UK, we had the honor of welcoming Dr Daniel Egloff, the founder of Flink AI, from Zurich to give our China Construction Bank students a talk on the relationship between AI and the finance service industry. Dr Egloff has extensive experience in the financial industry. He started his career as a quantitative analyst, and as his interest in AI grew, he honed his skills in the area and created a startup - Flink AI - which provides advance AI solutions for the financial service industry. One of his most notable clients was Lehman Brothers, both before and after the collapse.
In the first half of his talk, Dr Egloff introduced AI to the CCB students – it is a blend of technologies to create machines which can sense, comprehend, and act in an intelligent way. In particular, AI is designed to perform human tasks such as learning, decision making, and planning. Dr Egloff also took our executives on a trip down memory lane where he provided a brief history of notable happenings in the development of AI - Turing in 1943 who developed the first AI machine, Deep Blue defeating Kasparov in a 1997 chess match, the industrial application of AI in Apple phones in 2008, Krizhevsky’s CNN on GPUs in deep learning. This brings us to the current situation of AI in 2019 where we are using AI for special purposes like self-driving. Dr Egloff told the executives that the future of AI is in the field of Artificial General Intelligence. However, that technology would not happen for at least 20 to 30 years.
Next, Dr Egloff talked about the key factors which contribute to the explosion of AI, namely the exponential growth of data, the significant increase in computing power, and most importantly, new deep learning algorithms which are publicly available. This is particularly advantageous because the explosion of AI has huge market opportunities. As Dr Egloff notes, AI contributes to an increase in global business values and this is capitalized by financial firms which begin using AI to monetize data platforms and data assets. Furthermore, these financial firms invested in developing advanced analytics to support improved business decision making.
In the second half of his talk, Dr Egloff talked about the 3 different learning paradigms that AI adopts: Supervised Learning, Unsupervised Learning, and Reinforcement Learning. He also highlighted how this learning paradigms interact with the AI trends whereby the motivation is towards building intelligent systems that can collaborate effectively with people as well as carry AI applications forward, towards taking actions in the real world. Dr Egloff rounded off this section by discussing the recent hot AI topics like Generative Models, Transfer Learning, Explainable AI, the Risk of AI, and Safe and Risk Sensitive Reinforcement Learning.
Dr Egloff concluded his talk by discussing the practical applications of AI in the tech and financial industry, especially in transportation, eCommerce and FSI. Dr Egloff explained the role that AI has on the FSI value chain: customer service, back office and operations, financial advisory, fraud, and risk. He presented a case study of the application of AI on the trading floor, where AI learns how to trade by optimizing the risk and reward-based trading strategy. The technology learns end-to-end from historical data and generated data, by adapting online, to new market information and finally, consistently incorporating different information sources and making predictions based on history and liquidity.
The talk by Dr Egloff was very informative and engaging. Our students learned a lot from Dr Egloff’s research and expertise the role AI plays in transforming the financial industry.
(Report & Photos by Dr Carryn Yong. Edited by Guy Liu & Zoë Toone)
|Last modified: 2019-05-17 09:52:50 by Zoe Toone||Created at: 2019-05-17 09:52:50|