Data Is The New Oil
Any sufficiently advanced science appears like magic — as said by someone famous.
If you had the ability to predict what the stock prices could be tomorrow, would you not become a multi-millionaire or a billionaire? You would be the most sought-after analyst, isn’t it?
That, in short, denotes the appeal of using Machine Learning and AI or Artificial Intelligence in the Finance sector.
Machine Learning happens when a system (or a whole bunch of them) learns patterns from input data and takes some actions, like predicting future values, etc.
However, what you would need for such a machine learning system to succeed will be loads of data and reliable data at that. If you base your prediction only on the stock prices of the last 10 days, your prediction for tomorrow is bound to be a hit-and-miss thing.
But if had the stock prices for the last 10 years as the basis, there is a much higher chance of your prediction coming true. That’s one reason behind the whole hype about big data and why the boom in AI technologies is happening now, “after” the big data boom.
In this date and age, “data is the new oil” and this is known to most major and successful organizations. Every time you order something on Swiggy, book a cab on OLA, order something on Amazon, or use Google Maps to go somewhere, you are giving out very valuable data.
We will get into the ethics of whether such a collection of data is correct and how it is being used, etc. later. But hopefully, you understand why every website you visit or every mobile app you use is so keen on getting information about you and your usage patterns.