Cybersecurity

Two Sigma Says Artificial Intelligence Lacks Smarts

  • Traditional hedge fund managers embrace machine learning
  • Siegel’s Compass fund gained 12.6% this year through August
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David Siegel, a quantitative hedge fund pioneer, issued a warning to investors: Artificial intelligence lacks common sense.

Siegel, who has used AI to build his Two Sigma Investments into a $37 billion hedge fund firm, said algorithms are limited by the scant amount of training data available to instruct them on how to differentiate objects in images.