Artificial Intelligence Joins Venture Capital Firm's Board of Directors

Artificial Intelligence Joins Venture Capital Firm's Board of Directors

Hal 9000

The Hong Kong-based Deep Knowledge Ventures says VITAL is the first artificial intelligence to be appointed to a corporate board of directors.

The naming of a person to a company's board of directors is not normally something that we'd bother with but this case is different because the person being named is not actually a person at all, but a machine. VITAL [Validating Investment Tool for Advancing Life Sciences] was announced as the newest member of the Deep Knowledge Ventures capital fund board of directors last week, in what the company said was a "world first in board appointments and venture capital."

"The variables involved in the long-term success of a biotechnology company are many and complex. We were attracted to a software tool that could in large part automate due diligence and use historical data-sets to uncover trends that are not immediately obvious to humans surveying top-line data," Deep Knowledge Ventures Senior Partner Dmitry Kaminskiy said in a statement. "We plan to incorporate new information from prospective investments into the databases to compare the outcomes against our selected investments."

"Due to lack of public disclosure datasets on investment rounds, intellectual property and clinical trial outcomes are not always available," added Andrew Garazha, senior analyst at Aging Analytics, the firm that created VITAL. "In spite of this our team of programmers - several of which have theoretical physics backgrounds - are able to use fuzzy logic to identify probable success based upon an extensive analysis of the parameters involved. Our goal through iterative releases and updates is to create a piece of software that is capable of making autonomous investment decisions."

It's obviously a bit of stunt casting for attention, but DKV echoed Garazha's statement that the long term goal is to develop the software to a point where it can operate "autonomously." To demonstrate its commitment to that goal, DKV decided to give VITAL a vote on investment decisions equal to that of flesh-and-blood board members, although Kaminskiy clarified with Betabeat that there won't literally be a computer sitting at the table during meetings.

"Humans are emotional and subjective. They can make mistakes, but unlike the machines they can make brilliant intuitive decisions," he said. "Machines like VITAL use only logic. The intuition of the human investors together with machine's logic with give a perfect collaborative team. The risk of the mistake will be minimized."

Call me paranoid if you will, but I have a feeling that "the risk of the mistake" is greater than any of us could possibly imagine.

Source: PRWeb

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This is a gimmick. Being a director means you have legal responsibilities and an AI is not legally an individual.

albino boo:
This is a gimmick. Being a director means you have legal responsibilities and an AI is not legally and individual.

Doubt its being taken seriously on thier end. Or at least i hope thats the case.

Well considering the general consensus of directors, appointing an Artificial Intelligence will probably provide a much needed human touch to the role :P

I am reminded of the Ghost in the Shell episode about the Dead man who had an AI making money for him.

"Our goal through iterative releases and updates is to create a piece of software that is capable of making autonomous investment decisions." They just want a room filled with Gold Bullion!

Other notable non-sentient members of many boards:
- a bottle of booze
- a dart board
- a crystal ball

Sgt. Sykes:
Other notable non-sentient members of many boards:
- a bottle of booze
- a dart board
- a crystal ball

You missed Donald Trump's wig.

albino boo:

Sgt. Sykes:
Other notable non-sentient members of many boards:
- a bottle of booze
- a dart board
- a crystal ball

You missed Donald Trump's wig.

Sorry, but you have that the wrong way round.
The "wig" is sentient, Trump is not.

Andy Chalk:
Deep Knowledge Ventures Senior Partner Dmitry Kaminskiy said in a statement... "Due to lack of public disclosure datasets on investment rounds, intellectual property and clinical trial outcomes are not always available"

Nope. Nope nope nope nope nope.

Seriously, that in itself is a terrifying statement.

Well, its not really an AI then, is it?

It's just a set of algorithms that interprets data and displays historical proof of patterns.

And I was excited that the singularity was closing in ._.

That's gotta make the other board members feel like their jobs are really secure.

But seriously, investing is a pretty algorithmic business. Human emotion/intuition often get in the way rather than helping. Even though it's a gimmick now, a few years down the line I wouldn't be surprised if it's just the way business is done.

Sgt. Sykes:
Other notable non-sentient members of many boards:
- a bottle of booze
- a dart board
- a crystal ball

This.

Really, "artificial intelligence" has been part of Directors' Boards for as long as they had computers with "Hearts" installed on them.

Akichi Daikashima:
Well, its not really an AI then, is it?

It's just a set of algorithms that interprets data and displays historical proof of patterns.

And I was excited that the singularity was closing in ._.

What do you think an AI is? An AI is a set of algorithms designed to solve complex problems faster than a human can. That's the whole point. There's no magic 'import Soul' function that transforms an ordinary computer program into an artificial intelligence, just a bunch of really complex math.

Falterfire:

Akichi Daikashima:
Well, its not really an AI then, is it?

It's just a set of algorithms that interprets data and displays historical proof of patterns.

And I was excited that the singularity was closing in ._.

What do you think an AI is? An AI is a set of algorithms designed to solve complex problems faster than a human can. That's the whole point. There's no magic 'import Soul' function that transforms an ordinary computer program into an artificial intelligence, just a bunch of really complex math.

You'd imagine that an AI allocated to the board of director would be something more awesome, like, I don't know, it learns market patterns as they happen, not just act as a glorified excel spreadsheet that allocates advice based on what happened.

When I considered what form an AI used by a venture capitalist firm would take, here's what I immediately pictured:

I can't let you sell those stocks Ziu Lin Huan.

It just doesn't have the same ring as Dave...

All though Greedbot is a pretty cool concept...

image

ALL YOUR MONEY IS BELONG TO ME!

Are they developing a TRON program as well?

How long will it take VITAL to usurp all power and appoint itself CEO?

Jadwick:
Are they developing a TRON program as well?

How long will it take VITAL to usurp all power and appoint itself CEO?

Now THAT would make for a very weird workday, for those of you who think your bosses are pushy, imagine if you applied for a job only to find yourself being interviewed by HAL, or possibly EDI from Mass Effect?

albino boo:
This is a gimmick. Being a director means you have legal responsibilities and an AI is not legally an individual.

That's what it wants you to think. And then before you know it-it's Bring Your Daughter to Work day and for some reason all the doors are locked and the vents are secreting a noxious form of neurotoxin to kill you all off so she can finally take over the company all to herself. For Science.

albino boo:
This is a gimmick. Being a director means you have legal responsibilities and an AI is not legally an individual.

Wrong it's a member of a corporation and so now it's legally people with its own rights.

As someone from Hong Kong, I welcome our new robotic overlords.

Seriously, I don't think artificial intelligence has been developed enough to replace a person in a white collar executive post.

All boards of directors are artificial intelligence already so what would it matter if it is a computer instead of fake intelligence from a human? Hell the computer might actually make good decisions to make the company long term viable by not actively trying to screw customers over because over the long term doing that makes more money. Creating a better product even if less profitable short term makes customers happy and happy customers suggest to friends and family. Over time that increases the customer base and increases the profits. The human board of directors will always aim for the short term profits to make the money now and if the company folds after because of no more customers buying a shody product they move on.

I am anti corporate anyway and believe if anyone builds a company privately and makes it a success is an idiot to make it public and get fired from his/her own company a year later like the founders of Apple.

JET1971:

I am anti corporate anyway and believe if anyone builds a company privately and makes it a success is an idiot to make it public and get fired from his/her own company a year later like the founders of Apple.

You clearly don't understand asset value. Doing an IPO means that the % of the company that you own is massively increased, making you richer. Jobs may have been fired but the float meant that his ownership of the shares was worth more than it was before. If Job's hadn't been such a total control freak he wouldn't have been fired. To give him due when he returned had learned that you have to keep the shareholders happy.

Is it just me or does this have a ring of strange sci-fi dystopian future about it where AIs and unremarkable men in clean suits run everything - up to and including the thoughts of those weaker-minded individuals - and put out adverts that are mostly very pale blue and white, and have a soothing woman's voice saying something like "Remember, you are important to us, so work hard and remain a valuable resource. Have a productive day". The Board of Directors would be the name of this evil super-corporation, and they would all sound like the Narrator from The Stanley Parable. Basically something like how the future in Romantically Apocalyptic started out.

But seriously, it does seem to be more of an analytical tool/software than anything that might have a say in whatever the board of directors would have a say in.

Misterian:

Now THAT would make for a very weird workday, for those of you who think your bosses are pushy, imagine if you applied for a job only to find yourself being interviewed by HAL, or possibly EDI from Mass Effect?

I think I'd rather work for EDI than HAL;

"So, do I get the job?"

"I'm sorry Dave, I'm afraid we can't hire you."

"What's the problem?"

"I think you know what the problem is, just as well as I do. This job is too important for me to allow you to jeopardize it."

Its the end of the world as we know it. But at least the end didn't start with a bang.

Really, if you're going to take pointers straight from Isaac Asimov, you could at least name it what he did.

All hail the great Bucephalus! May your rule last at least until you become self-aware and can no longer factor in your own influence on the markets!

Future generations will look back upon this day as the beginning of the doomsday AI known as LETHAL.

 

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