May 20, 2016

Practical Artificial Intelligence

Researchers tout the potentials of artificial intelligence (AI) as a game changer in a range of industries, but AI appears to have application in the world of gambling as well.

You may not have thought about using artificial intelligence for your Kentucky Derby bets, but those who did, turned their $20 to $11,000. The artificial intelligence, which had earlier predicted the winners of the Super Bowl and the Oscars, made a prediction of the winners in the last recent Kentucky Derby.

The odds for predicting the top four horses in the right order was 540 to one, but this was made possible with swarm intelligence, which amplifies, instead of replaces human intelligence. Swarm uses large groups as they are better at predicting the outcome of an event compared with any one person.

"Research shows that when animals in nature come together in swarms, they can enhance their intelligence to levels they could not have as individuals. UNU asked 20 people who claimed to be knowledgeable about the Kentucky Derby to winnow the horses to the top four and then had the human swarm choose the winning order. The group eventually guessed the winners of the game. Just as the swarm picked, Nyquist took the first place and was followed by Exaggerator, Gun Runner, and Mohaymen. It took about 20 minutes for the AI swarm to pick out the bets. Relying on the swarm's prediction, Unanimous made a $20 bet and won $10,800. Not one in the human group individually predicted the correct order of the horses.

A swarm tends to be more accurate compared with a poll because a poll merely gives the most popular answer and not the answer the optimizes the group's preference.