velocityascent

Fintech in Focus: AgenticAI is changing the Innovation Landscape.

velocityascent · November 29, 2024 ·

Ultimately, the human remains the final decision-maker, ensuring accountability and contextual judgment in critical scenarios.

The fintech and hedge fund sectors thrive on innovation, but adopting new technology comes with its own risks and responsibilities. Measured adaptation—like gradually integrating Agentic AI—allows organizations to innovate while maintaining stability and trust. In this post, we explore how emerging technologies, ethical considerations, and novel strategies are transforming the financial world.

What is Agentic AI?
Agentic AI refers to artificial intelligence systems designed to operate as autonomous agents that can analyze data, make decisions, and execute tasks with minimal human intervention. In fintech, Agentic AI can be used to create “digital twins” of team members—virtual replicas that simulate human decision-making in a closed environment that enhance productivity and collaboration. By using Twins, companies can streamline routine and mundane processes, freeing the team members to focus more energy on mission and innovation.

Ultimately, the human remains the final decision-maker, ensuring accountability and contextual judgment in critical scenarios.

1. Emerging Technology: Driving the Next Wave of Financial Innovation

AI-Powered Insights:
Hedge funds like Two Sigma have embraced machine learning to analyze non-linear relationships in market data, helping them outperform traditional quant models. The measured integration of AI ensures algorithm reliability before full-scale deployment.
Blockchain Beyond Bitcoin:
JPMorgan’s blockchain platform, Onyx, facilitates secure, efficient interbank payments. This cautious adoption of blockchain technology focuses on specific, scalable use cases instead of speculative ventures.
Quantum Computing:
Although still in its infancy, quantum computing firms like D-Wave are collaborating with financial institutions on experiments in portfolio optimization. A measured approach involves using quantum technology for supplementary analyses rather than replacing conventional models.
Edge Computing & Real-Time Decision Making:
Nasdaq’s use of edge computing allows for microsecond-level trade execution while maintaining centralized oversight to prevent errors.

2. Ethical and Privacy Concerns in a Hyperconnected World

Data Privacy and Usage:
Apple’s differential privacy model showcases how firms can analyze aggregated user data without compromising individual identities. Fintech companies could adopt similar anonymization techniques for customer analytics.
AI Bias and Fairness:
A study showed racial biases in credit scoring algorithms. By slowly rolling out AI with robust testing frameworks, companies like FICO are working to ensure fairness without jeopardizing operational efficiency.
Cybersecurity Threats:
Hedge fund Citadel’s investment in zero-trust architecture highlights the importance of assuming all network traffic is potentially compromised and taking preventive measures accordingly.
ESG Metrics:
BlackRock’s use of Aladdin Climate software ensures portfolios meet ESG benchmarks without compromising returns. The gradual introduction of such tools avoids alienating traditional investors.

3. Emerging Investment Strategies: Navigating a New Era

Sustainable Investing:
The rise of renewable energy ETFs demonstrates how measured allocations to green portfolios can balance innovation with risk management.
Alternative Data Sources:
Hedge funds like Renaissance Technologies have leveraged satellite imagery for crop yield predictions. However, their success lies in testing alternative data methods on historical datasets before integrating them into live strategies.
Decentralized Finance (DeFi) Opportunities:
Aave offers decentralized lending protocols. Firms that explore DeFi cautiously by using small experimental funds can gain early insights without exposing significant capital.
Hybrid Models:
Morgan Stanley’s AI-supported human advisors showcase the value of combining machine efficiency with human intuition. Gradual integration ensures customers retain trust in the personal touch.

Conclusion: Adapting to the New Normal

The future of fintech and hedge funds lies in measured innovation. Technologies like Agentic AI offer transformative potential, but thoughtful integration is key to sustainable success. Leaders who embrace change with calculated steps will shape the next chapter of financial excellence.

Next steps…
How will you measure your steps in the journey toward innovation? Our approach is process based and responsive. Let’s discuss.

Addendum: Live Links to Examples

Quantum Computing: A Primer for the Modern Enterprise

velocityascent · September 17, 2024 ·

Data and Customer Insights, Campaign Optimization and Predictive Analytics.

Quantum computing is no longer just a distant technological dream; it’s on the verge of reshaping entire industries. For forward-thinking executives, especially those leading marketing and growth strategies, understanding quantum’s impact is critical. This technology will revolutionize how businesses interact with data, optimize decisions, and innovate for the future.

Quantum: The Shift from Classical Computing

The true power of quantum computing lies in its ability to solve complex problems exponentially faster than classical systems. With qubits operating in superposition, quantum computers can simultaneously explore a multitude of solutions, enabling breakthroughs in data processing, machine learning, and optimization problems that would have otherwise been unattainable.

For organizations, this means opening the door to more effective decision-making, enhanced personalization, and business models that were previously unimaginable.

Transforming Marketing Strategy with Quantum

Quantum computing offers revolutionary potential in three major areas:

Data and Customer Insights: Quantum’s ability to process massive amounts of data in parallel could soon transform data analytics. Marketers will be able to achieve real-time segmentation and deliver hyper-personalized experiences based on more granular insights.”Quantum-enhanced AI will redefine the depth and speed of consumer analytics, enabling truly real-time decision-making in marketing strategies.”
— Smith, J., & White, R., MIT Media Lab, 2023
Campaign Optimization: Today’s multi-channel campaigns are difficult to optimize due to the number of variables involved. Quantum computers can simulate and optimize these complexities in seconds, potentially leading to more efficient use of marketing budgets and higher ROI.”The precision and speed with which quantum systems handle optimization problems will allow businesses to rethink marketing operations and resource allocation.”
— Brown, A., University of Oxford, 2022
Predictive Analytics: Quantum computing will supercharge predictive models, offering more accurate and actionable insights about future trends, behaviors, and risks. Imagine the ability to forecast customer needs well before they even arise.”In fields like pharmaceuticals, quantum simulations are accelerating discovery and shortening time-to-market. This same principle can be applied to business analytics, speeding up predictive modeling.”
— Nguyen, K., University of Toronto, 2021

The Next Three Years: Quantum and Business Impact

The next three years will mark the tipping point for quantum adoption. Forward-thinking organizations will start experimenting with quantum in niche applications like supply chain management, fraud detection, and advanced marketing analytics. While fully functional quantum computers are not expected to dominate until later in the decade, the businesses that begin exploring partnerships and building the foundational infrastructure now will be the ones leading when the technology hits its stride.

Executives should consider how quantum computing fits into their long-term strategic vision. Integrating it into advanced AI models, optimizing customer engagement, and ensuring more efficient workflows are just the beginning.

Quantum computing isn’t just for tech geeks anymore—it’s about to become your best marketing ally.

Here’s a refined version of the blog post, with pull quotes from the academic references, followed by a worksheet for your next meeting.

The Quantum Computing Revolution: A Primer for the Modern Enterprise

Quantum: The Shift from Classical Computing

“Quantum-enhanced AI will redefine the depth and speed of consumer analytics, enabling truly real-time decision-making in marketing strategies.”
— Smith, J., & White, R., MIT Media Lab, 2023

For organizations, this means opening the door to more effective decision-making, enhanced personalization, and business models that were previously unimaginable.

Transforming Marketing Strategy with Quantum

Quantum computing offers revolutionary potential in three major areas:

Data and Customer Insights: Quantum’s ability to process massive amounts of data in parallel could soon transform data analytics. Marketers will be able to achieve real-time segmentation and deliver hyper-personalized experiences based on more granular insights.

Campaign Optimization: Today’s multi-channel campaigns are difficult to optimize due to the number of variables involved. Quantum computers can simulate and optimize these complexities in seconds, potentially leading to more efficient use of marketing budgets and higher ROI.

Predictive Analytics: Quantum computing will supercharge predictive models, offering more accurate and actionable insights about future trends, behaviors, and risks. Imagine the ability to forecast customer needs well before they even arise.

The Next Three Years: Quantum and Business Impact

“The precision and speed with which quantum systems handle optimization problems will allow businesses to rethink marketing operations and resource allocation.”
— Brown, A., University of Oxford, 2022

While fully functional quantum computers are not expected to dominate until later in the decade, the businesses that begin exploring partnerships and building the foundational infrastructure now will be the ones leading when the technology hits its stride.

“In fields like pharmaceuticals, quantum simulations are accelerating discovery and shortening time-to-market. This same principle can be applied to business analytics, speeding up predictive modeling.”
— Nguyen, K., University of Toronto, 2021

Simplified scale model of quantum computing demonstrator housed in two 19-inch racks.

Quantum Computing Implementation Worksheet

Use this worksheet to guide a time-release strategy for quantum integration within your organization. This sample of a structured approach helps to prioritize initiatives and ensure that quantum’s value is realized in alignment with your broader business goals, our results may vary.

Phase	Timeline	Key Actions	Expected Outcomes
Phase 1: Exploration	0-6 months	– Research quantum computing basics and assess its potential in key business areas. – Identify departments (e.g., IT, R&D, marketing) that could benefit from quantum use cases. – Build partnerships with quantum technology firms and academic institutions.	– Quantum literacy within the team. – Initial identification of potential quantum applications.
Phase 2: Pilot Programs	6-18 months	– Implement small-scale pilot projects to test quantum solutions (e.g., advanced data analysis, optimization algorithms). – Monitor pilot results and assess the business value. – Establish key metrics for quantum integration (e.g., ROI, efficiency improvements).	– Proof of concept for quantum applications. – Early-stage performance metrics.
Phase 3: Strategic Integration	18-36 months	– Expand quantum computing applications based on pilot successes. – Integrate quantum algorithms into business processes (e.g., AI models, customer analytics). – Begin scaling quantum-based solutions organization-wide.	– Optimized marketing and operational processes. – Long-term competitive advantages.
Phase 4: Quantum-Driven Innovation	Beyond 36 months	– Leverage quantum technology to innovate new products/services. – Maintain leadership in the quantum-driven business landscape.	– Industry-leading innovation. – Established reputation as a quantum-powered business.

Key Considerations for Quantum Adoption

Partnerships: Collaborate with academic institutions and tech providers to stay updated on quantum advances.
Talent Development: Invest in quantum computing training and hire specialized talent to manage and integrate these systems.
Infrastructure Readiness: Prepare your IT infrastructure to handle quantum data flows and integrate with classical systems.
Market Positioning: Begin positioning your brand as a leader in quantum technology to gain early mover advantage in your industry.

By focusing on a gradual, strategic implementation plan, organizations can effectively harness the power of quantum computing to drive innovation and long-term growth.

References:

Smith, J., & White, R. Quantum AI: The Frontier of Marketing Analytics, MIT Media Lab, 2023.
Brown, A. & Green, P. Quantum Optimization in Business Applications, University of Oxford, 2022.
Nguyen, K., & Patel, S. Quantum Simulations for Drug Discovery, University of Toronto, 2021.

Wildfire Smoke Mapping: Anticipatory response leveraging GIS technology

velocityascent · August 15, 2024 ·

As wildfires and wildfire smoke increase across the United States, symptoms of wildfire smoke exposure are of increasing public health concern. How can technology make a difference?

Author: Joe Skopek, Senior Consultant

In May of 2024, with over 100 active wildfires burning in Canada, wildfire smoke drifted across the border into the United States, prompting officials to issue the state’s first air quality alert of the year. Several of the string of Canadian wildfires have been labeled “out of control,” according to officials, who placed 40 out of the 140 active fires in this category.

Smoke rises from the mutual aid wildfire HTZ001 in the High-Level Forest Area, which originated from the Northwest Territories in 2023 but flared due to strong winds, near Indian Cabins, Alberta, Canada, May 10, 2024. (Handout via Reuters) (Alberta Wildfire/via Reuters)

In the U.S., wildfire smoke reached states from Montana to Wisconsin but was especially heavy in Minnesota. The Air Quality Index (AQI) for much of northern Minnesota has been between 150 and 200, which is “unhealthy” and at times went above the 200 AQI mark, into a “very unhealthy” zone.

Bemidji, a city in northern Minnesota, recorded a 212 AQI on Sunday, where residents could smell the smoke in the air at these levels and placed the town among the worst air quality locations in the world.

USGS, NOAA, EPA, USFWS data is sourced in production of this map.

In June of 2023 wildfire smoke from Canada reached the East Coast including midtown Manhattan N.Y. giving the entire city a look of a martian landscape. The city reached an AQI of 342, a level considered “hazardous” for all residents. The Federal Aviation Administration on Wednesday halted some flights bound for New York’s LaGuardia Airport due to the smoke.

Wildfire Smoke from Quebec, Canada – New York City June 7, 2023

The New York State Department of Health published a study in the CDC’s Morbidity and Mortality Weekly Report on the increase in asthma attacks requiring emergency care during the initial wildfire smoke event that occurred in the state due to the Eastern Canadian Wildfires.

Map in a minute: map smoke from Canadian wildfires using ArcGIS Online and Living Atlas

The study, “Notes from the Field: Asthma-Associated Emergency Department Visits during a Wildfire Smoke Event – New York, June 2023,” is the first state study of its kind for this event and found that asthma-related emergency department (ED) visits markedly increased June 7, 2023 when air quality reached its poorest levels.

Prescribed fire, also called a “controlled burn”, in Saskatchewan, Canada.

While innovation is the buzzword of the day there is a strong case to be made for a well-managed foundational piece of software.

In a continuously changing technological landscape, the term “innovation” often takes center stage, capturing attention with its promise of cutting-edge advancements and new possibilities. However, amidst the excitement over the latest breakthroughs, it’s crucial not to overlook the importance of a well-managed foundational piece of software. Such a robust foundation is essential for ensuring stability, reliability, and long-term success, even as new technologies emerge and evolve.

Geographic Information Systems ( GIS) have been around for decades. The term GIS describes any information system that integrates, stores, edits, analyzes, shares and displays geographic information for informing decision making. Typically used by local governmental agencies they tend to be a mystery to the general public and often require specialized training and knowledge that creates a barrier to entry. More recently, that concept is changing. Armed with a smart phone the average user can gain the same insight that the agencies have, allowing them, their families and communities to be better prepared to adapt to a changing climate.

Monitoring Tools build an anticipatory response.

In the face of increasing wildfire threats, monitoring tools have become essential for developing an anticipatory response plan. These tools provide real-time data and predictive analytics, enabling communities and organizations to anticipate potential wildfire risks and act proactively. By integrating such monitoring systems, it’s possible to enhance preparedness, streamline response efforts, and ultimately reduce the impact of wildfires.

Digital tools available for monitoring and mapping conditions include; the US Wildfires Live Feed, the AirNow Fire and Smoke Map, and the National Weather Service (NWS) Smoke Forecast.

The Fire and Smoke Map shows information on particle pollution, fires and smoke plumes

The AirNow Fire and Smoke Map

The AirNow Fire and Smoke Map is a valuable tool designed to aid individuals and communities in safeguarding their health amidst wildfire smoke. It offers a comprehensive overview including:

Current Air Quality Data: Users can access real-time information on particle pollution levels specific to their location, enabling informed decision-making regarding outdoor activities and exposure to smoke.
Fire Location and Smoke Plume Tracking: The map displays the locations of active wildfires along with the direction and extent of smoke plumes, facilitating awareness of potential health risks and areas to avoid.
Smoke Forecast Outlooks: Where available, users can access forecasts predicting the movement and intensity of smoke over time, assisting in planning and preparation for smoke exposure.
Health Protection Recommendations: Developed by EPA experts in air quality and health, the map provides actionable recommendations tailored to mitigate the health impacts of smoke exposure, empowering individuals to take proactive measures for their well-being.

This collaborative initiative is led by the U.S. Forest Service (USFS)-led Interagency Wildland Fire Air Quality Response Program in conjunction with the U.S. Environmental Protection Agency (EPA), emphasizing a concerted effort between government agencies to provide accessible and reliable information to the public during wildfire events.

US Wildfires built with ArcGIS from Esri

The US Wildfires Live Feed

The US Wildfires Live Feed is a real-time stream of information that provides updates on wildfire incidents and activities across the United States. This live feed aggregates data from various sources, including government agencies, firefighting organizations, and satellite observations, to offer a comprehensive view of wildfire events as they unfold. Additionally, the feed integrates weather data to inform users about environmental conditions affecting wildfire behavior, such as wind speed and direction.

National Weather Service (NWS) Smoke Forecast

The National Weather Service (NWS) Smoke Forecast is an invaluable resource for individuals and communities impacted by wildfires, providing crucial information to help mitigate the health risks associated with smoke exposure. Leveraging advanced modeling techniques and real-time data, the NWS Smoke Forecast offers forecasts and projections regarding the movement and dispersion of smoke particles in affected areas.

By accessing the NWS Smoke Forecast, individuals can gain insights into the anticipated concentration levels of smoke particles over specified time periods and geographic regions.

This information allows users to make informed decisions regarding outdoor activities, ventilation practices, and protective measures to safeguard their health and well-being.

Confidence and Security

As wildfire threats become increasingly prevalent, leveraging advanced monitoring tools is crucial for effective risk management and protection. These tools not only provide vital real-time data but also help in crafting anticipatory response plans that enable informed decision-making and proactive measures.

Prototype monitoring and alert system produced by The Copernicus Project

One group that is experimenting with solutions is The Copernicus Project, they are in the process of producing the climateSafe prototype. When fully realized the solution will combine IoT, GIS data harvesting and live monitoring in a simple smart app that can reside on home networks and smart phones. Not only will the device live monitor conditions it will also provide geo-located advice and action for the building owner to reduce risk from future climate events. This is coupled with feeds to locally available grants and funding to offset cost of the recommendations. The solution will leverage existing virtual assistant platforms like Alexa, Amazon Alexa, Google Assistant, Apple Siri, Microsoft Cortana, and Samsung Bixby.

For enterprise and business applications, IBM Watson provides advanced natural language processing and AI capabilities that can be integrated into climateSafe.

Fostering resilience and preparedness

Integrating these technologies into daily practices enables individuals and communities to enhance their health protection, optimize safety, and sustain well-being in changing environmental conditions. Embracing such strategies fosters resilience and preparedness, allowing them to tackle environmental threats with increased confidence and security.

Using blockchain technology to track the journey of the fabric

velocityascent · July 29, 2024 ·

Supima is using blockchain technology to track the journey of the fabric from the seeds planted in the field, through the harvest, yarn making, and fabric creation, all the way to the products you wear and finally to the store.

From Supima: The SUPIMA® licensing program has been the cornerstone of the Supima organization for over 40 years and has been essential in highlighting and identifying all the superior products that our brand partners have been making using American-grown Pima cotton. To that end, Supima is excited to announce it will be transitioning its licensing program to a digital and forensically verified platform.

Beginning January 2023, Supima will be implementing a robust licensing platform that will further enhance the credibility and value of the SUPIMA® brand. This revolutionary platform will be a standard-setting industry benchmark for combining digital traceability and transparency with physical authentication, providing an unrivaled level of confidence in both the content and provenance of Supima products.

What is blockchain?

Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network.

An asset can be tangible (a house, car, cash, land) or intangible (intellectual property, patents, copyrights, branding). Virtually anything of value can be tracked and traded on a blockchain network, reducing risk and cutting costs for all involved.

Why is blockchain important?

Business runs on information. The faster information is received and the more accurate it is, the better. Blockchain is ideal for delivering that information because it provides immediate, shared, and observable information that is stored on an immutable ledger that only permissioned network members can access. A blockchain network can track orders, payments, accounts, production and much more. And because members share a single view of the truth, you can see all details of a transaction end to end, giving you greater confidence, and new efficiencies and opportunities.

Python: HTML’s cousin, or brother?

velocityascent · June 1, 2024 ·

Python and HTML are not siblings or cousins in a technical sense, but they can be used together harmoniously in web development projects.

Python and HTML might be considered friendly neighbors in the world of web development. While they have different roles and responsibilities, they often work together harmoniously to create dynamic and functional web applications.

Python, with its versatility and ease of use, can handle server-side tasks such as processing user requests, interacting with databases, and generating dynamic content. HTML, on the other hand, defines the structure and content of web pages that users interact with in their browsers.

Together, Python and HTML form a powerful duo, enabling developers to build feature-rich web applications that are both interactive and engaging. They may not be directly related, but they complement each other well, making them valuable assets in the web development toolkit.

In the realm of web development, Python and HTML serve different purposes and are not directly related in terms of their roles or functionality. Here’s a breakdown of their relationship:

HTML (Hypertext Markup Language): HTML is a markup language used for creating the structure and content of web pages. It defines the elements and layout of a webpage, such as headings, paragraphs, images, links, etc. HTML documents are interpreted by web browsers to display the content of a webpage.
Python: Python is a general-purpose programming language known for its simplicity and readability. While Python can be used for web development (with frameworks like Django or Flask), it’s not inherently tied to HTML or web development. Python is used for a wide range of applications, including web development, data analysis, machine learning, scripting, and more.

So, Python and HTML are not siblings or cousins in a technical sense. However, they can be used together in web development projects, where Python may be used for server-side scripting (handling requests, interacting with databases, etc.), while HTML is used for defining the structure and content of web pages. In this context, they complement each other to create dynamic and interactive web applications.