David Siegel on the Future of AI, Data Science, and More

Two Sigma’s co-founder discusses algorithmic investing, self-driving cars, blockchain, education, and more.

What does the future have in store for artificial intelligence and data science—not only for the world of investing, but for society more broadly?

Speaking at Bloomberg Invest New York conference on June 5, 2018, Two Sigma co-chairman David Siegel shared his views on some of the key challenges and opportunities these and related technologies present.

Toward human-like reasoning

AI is still in its infancy, Siegel argues, but with digital information proliferating exponentially and raw computing power becoming cheaper and easier to access, progress continues apace. Going forward, he says, “I believe that AI technology will allow far more human-like comprehension and reasoning than we’ve achieved today.”

Still, he cautions that because AI remains so new and experimental, researchers don’t always fully understand why it works so well. And while deep learning algorithms and other forms of AI are extraordinary at finding patterns in data, they still lack a critical element: common sense.

As the science evolves, however, Siegel anticipates AI incorporating something closer to natural reasoning abilities—a step that would help researchers tackle entirely new categories of problems, in investing and well beyond.

AI’s growing reach

The promise—and limitations—of AI and the growing power of data science will have a deep impact on vast swaths of society globally, he says. Clearly, its influence will be felt in domains like self-driving cars and cryptocurrencies. But even sectors like infrastructure and education, where innovation severely lags the state of the art, could see major efficiency gains through the application of AI and data science.

“We’re still in the early days,” says Siegel, “of what these methods can do.”

This article is not an endorsement by Two Sigma of the papers discussed, their viewpoints or the companies discussed. The views expressed above reflect those of the authors and are not necessarily the views of Two Sigma Investments, LP or any of its affiliates (collectively, “Two Sigma”). The information presented above is only for informational and educational purposes and is not an offer to sell or the solicitation of an offer to buy any securities or other instruments. Additionally, the above information is not intended to provide, and should not be relied upon for investment, accounting, legal or tax advice. Two Sigma makes no representations, express or implied, regarding the accuracy or completeness of this information, and the reader accepts all risks in relying on the above information for any purpose whatsoever. Click here for other important disclaimers and disclosures.

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