
Economists are prone to fads, and the latest is machine learning - allenleein
http://www.economist.com/news/finance-and-economics/21710800-big-data-have-led-latest-craze-economic-research-economists-are-prone
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throwbsidbdk
Not sure if there's a theoretical basis behind this, but I've noticed that the
true game changing technologies tend to sprout up along the fringes of popular
fads. The social network hype didn't bring us more social networks, but may
have ushered in the hybrids like snapchat and Instagram.

I can say the next big thing probably won't be an AI breakthrough, I'm
guessing it will be a new way of using existing machine learning structures
like CNN's. Maybe a new use for the incredibly powerful gpu's being pumped out
for machine learning applications?

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Chris2048
Went to an AI event recently - it seems small devices with AI chips with NNs
on them is going to be the big new thing?

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throwbsidbdk
A wild guess, but a lot of the advances in neural networks can be directly
applied to control problems normally be handled by PID controllers. It will be
interesting to see where this leads

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Chris2048
Can a pid controller do facial recognition? That is one of the applications.

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throwbsidbdk
Not just the typical image recognition stuff, but things like process control.

A lot of big industrial processes have a ton of different control loops that
try to optimize parameters. The systems are usually complicated enough that
the ideal state for these parameters is unknown, so controllers try to
approximate.

An easy example is the engine controller in cars. It tries to optimize for
power, efficiency, emissions, engine longevity, etc...

Machine learning could crunch tons of historical data from these systems to
build a CNN that performs better than the usual controller.

In some systems, like stoplight timings or freight packing.... An AI driven
controller could possibly be revolutionary, performing orders of magnitude
better than current algorithms.

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heisenbit
I suspect there are fundamental limits to what one can predict using a rear
view mirror. Still there are good reasons economists are fad prone and they
are purely economic:

\- first mover advantage. You establish a new way of doing things. Others pile
in. Your investment goes up.

\- marketing. Your chances to stand out and as employee attract management
attention or if you are a fund attract more money to manage is a powerful
incentive.

