Banks Learn Sentiment Analysis Equals Money
July 26, 2017
The International Business Times reported on the Unicorn conference “AI, Machine Learning and Sentiment Analysis Applied To Finance” that discussed how sentiment analysis and other data are changing the financing industry in the article: “AI And Machine Learning On Social Media Data Is Giving Hedge Funds A Competitive Edge.” The article discusses the new approach to understanding social media and other Internet data.
The old and popular method of extracting data relies on a “bag of words” approach. Basically, this means that an algorithm matches up a word with its intended meaning in a lexicon. However, machine learning and artificial intelligence are adding more brains to the data extraction. AI and machine learning algorithms are actually able to understand the context of the data.
An example of this in action could be the sentence: “IBM surpasses Microsoft”. A simple bag of words approach would give IBM and Microsoft the same sentiment score. DePalma’s news analytics engine recognises “IBM” is the subject, “Microsoft” is the object and “surpasses” as the verb and the positive/negative relationships between subject and the object, which the sentiment scores reflect: IBM positive, Microsoft, negative.
This technology is used for sentiment analytics to understand how consumers feel about brands. In turn, that data can determine a brand’s worth and even volatility of stocks. This translates to that sentiment analytics will shape financial leanings in the future and it is an industry to invest in
Whitney Grace, July 26, 2017
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