1. A.I.Creates tm
Intellectual Capital Club
Creating intellectual capital for partnerships
in predictive analytics and artificial intelligence
Dr. Valery Tsourikov
Minsk 2012
Valery Tsourikov 2012 (c). All rights reserved

2. Part 1. Business Model: Slides 3-10
Part 2. Predictive Analytics,
A.I. for content generation: Slides 11-26
Valery Tsourikov 2012 (c). All rights reserved

3. Modern Artificial Intelligence Means
Big Business
• Machine Learning, Combinatorial Intelligence,
Semantics, Predictive Analytics can generate:
– Better content
– Faster &
– Cheaper, than human team alone
• Business opportunity is really big. For example, over
the past five years IBM spent $14B for 24 analytics acquisitions.
How to exploit this mega-trend?
Valery Tsourikov 2012 (c). All rights reserved

4. Gartner Group. Hot Technologies for 2011-12:
Next-Generation Analytics and Social Analytics
Next-Generation Analytics:
It is becoming possible to run real-time simulations of
each individual business action to predict their future
outcome rather than simply providing data about past
interactions.
Valery Tsourikov 2012 (c). All rights reserved

5. Idea of the Intellectual Capital Club
1. Our Ph.D. teams develop A.I. software
2. Joint venture is formed with strategic partner or investor
3. JV exploits hot market opportunity
Strategic Partner/
Projects Investor
•Robust trading systems
•Global markets prediction
•Credit scoring
•HFT platforms
•Drug discovery
Joint
•Business analytics Venture
•Marketing trends
•Image and video mining A.I. Software Team
•Price prediction: insurance
World Markets
Valery Tsourikov 2012 (c). All rights reserved

6. The Idea: To Create Critical Mass
of Human Brains Who Will Code A.I. Systems
• In September 2010 we started special course on
advanced analytics with a clear business objective:
– To teach best talents to develop A.I. systems for
predictive analytics and automatic content generation
As for April 2012, 130 mathematicians and programmers
completed the course; many more new researchers will
join the Club in 2012
Several new business projects in predictive analytics
have already been initiated by course graduates
Valery Tsourikov 2012 (c). All rights reserved

7. How the Club Works
• We train Ph.D. students in Predictive Analytics and A.I.
and invite best graduates to start real software projects
• Then we show prototypes of intelligent systems
to potential strategic partners/investors
• Together with partners we exploit hot business
opportunities on world markets
Valery Tsourikov 2012 (c). All rights reserved

8. Course Attendees
Master and Ph.D. students majoring in:
- mathematics
- artificial intelligence
- computer science
- econometrics
- computer linguistics
- financial engineering
We invite only best Ph.D. students
from five major universities in Minsk
Valery Tsourikov 2012 (c). All rights reserved

9. Course Content
• A.I. and advanced analytics • Pattern recognition
• Mega-trend: content by A.I. • Data, text, image mining
• Machine Learning • Ensembles, boosting
- Trees, Kernels • Causal time series
- Feature selection – Granger causality
- Support Vector Machines
– Extended Kalman filter
- ML application
• Predictive Analytics – Sequential Monte Carlo
• A.I. and novelty creation • Automatic creation of
- Building Blocks mathematical models
- Novelty Propagation – Trading strategies
- Semantics – Credit scoring
- Genetic Programming – Price prediction
• Drugs discovery with ML – High frequency trading
Valery Tsourikov 2012 (c). All rights reserved

10. Ongoing Projects
• DISFA: automated creation of trading systems for ETFs
and U.S. stocks. Shipping to clients since Q4’2010
• White Sparrow: A.I. Platform for intraday and multiday trading with
Predictive trading strategies.
– Started in Q1’2011. Partner: DISFA Global; Status: we are running trading
with real capital before final release
• Predictive StatArb: identifying and exploiting regularities or
“patterns” in asset price dynamics.
• News Expert System: breaking news intelligent guard. Alfa-
prototype for internal use in TS development.
• Economy Health Scanner: automated recession prediction. Alfa-
prototype for internal use in TS development.
Valery Tsourikov 2012 (c). All rights reserved

11. Rapid R&D Methodology
To minimize new products launch cycle we use a novel
method called RRD – Rapid Research and
Development – check presentation on the website
Valery Tsourikov 2012 (c). All rights reserved

12. Part 2.Content Revolution
Predictive Analytics and
A.I. for content generation
Valery Tsourikov 2012 (c). All rights reserved

13. Internet and Intranets 2011+:
Major Shift to Content
• Internet evolution
– Phase 1: infrastructure (Sun Microsystems, Cisco), search
engines (Yahoo, Google), e-shops (Amazon, EBay)
– Phase 2: user-generated simple content (Flickr, blogs,
social media – Facebook, LinkedIn)
– Phase 3:
- A.I. generates content  New MEGA TREND
Valery Tsourikov 2012 (c). All rights reserved

14. A.I. Creates Content as Mega-trend
• Addresses basic needs: content creation is fundamental
feature of human civilization
• Internet is ready: everywhere, high bandwidth, cheap
• A.I. is ready: machine learning, pattern recognition,
advanced analytics, semantics
• Huge business opportunities: decisions support; business
analytics, robotic trading; data, images and video mining
Valery Tsourikov 2012 (c). All rights reserved

15. Internet 2011+:
Content Revolution
Many groups will try to ride mega-trend
Ready to explore new opportunities?
Valery Tsourikov 2012 (c). All rights reserved

16. Why A.I. for content creation?
A.I. silicon brain Human brain
• Very fast evolution • No change for 20,000 years
• Works 24x7x365 • Lazy, sleeps, drinks etc.
• Silicon brain capacity • Brain capacity is limited
is practically unlimited • Demands salary increase,
• No salary increase, bonuses, vacations and
at least for now respect no matter what
A.I. generates content
- Better - Faster - Cheaper
Valery Tsourikov 2012 (c). All rights reserved

17. Artificial Intelligence vs. Human Brain
This is fundamental fact: A.I. evolves
exponentially but human brain remains
unchanged since Stone Age
Artificial Intelligence is entering A.I.
exponential phase of evolution
Human brain stopped evolving humans
20 000 years ago
Valery Tsourikov 2012 (c). All rights reserved

18. A.I. Beats Human
• Garry Kasparov, the greatest chessplayer of all time, was
defeated by Deep Blue computer in 1997
• Same year, Invention Machine Corp. announced A.I.
software that created new patentable ideas by linking
thousands of physical effects in a second
• No human can generate ideas with such speed
Valery Tsourikov 2012 (c). All rights reserved

19. Why is power of A.I. rapidly increasing?
• First, because microprocessors double their
performance every 18 month (Moore’s law)
• Second, modern A.I. understands the meaning of
words and can learn by reading different information
sources
• A.I. is able to run Darwinian-type concept creation
and selection with Monte-Carlo method
Valery Tsourikov 2012 (c). All rights reserved

20. Our Niche: Advanced A.I. for Content
Generation
users
A .I .+
Hum
Crea an
tivity
!
Valery Tsourikov 2012 (c). All rights reserved

21. Content Creation by A.I.
Facts
New content:
Creative Risk models
Trends
Predictions
Models Artificial Images
Theories Intelligence Videos
Needs
Discoveries
Common sense
Trading systems
Concepts
Optimal Portfolios
News
Valery Tsourikov 2012 (c). All rights reserved

22. Machine Learning: Great Business
Opportunities on Modern Internet
Internet: texts images data video
Machine Learning:
Text Mining
Image Recognition
Inte
rnet
Mac w Predictive Analytics
hine ill be fi
Lear lled
ning wit h
algo
rithm
s
Video Search
Valery Tsourikov 2012 (c). All rights reserved

23. Q&A
• How are you going to implement the projects?
– We are looking for partners who see great business
opportunities in A.I. and Machine Learning spaces
• What kind of partners are you looking for?
– Strategic partners: corporations or investors from
the U.S., European Union and Asia
Contact us by email: Christina.butsko@nilitis.com
Valery Tsourikov 2012 (c). All rights reserved