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Sebastian Ritscher
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AUTOMATE THIS

Christopher Steiner

How Algorithms Came to Rule our World

Over the last two decades, our financial markets went from being dominated by insiders to admitting a new kind of genius, with roots far from Manhattan. A group of Midwestern math and technology geeks known as “quants,” have entirely remade Wall Street, creating programs that allow for high-speed training based on context-free rules, operating independently from human judgment. However, these quants also introduced an unknowable, uncontrollable element into our world.
The “Flash Crash” of May 2012 was just one example of what can happen when algorithms function as the decision-makers in a major way. The quant virus is spreading far beyond the financial world, affecting our lives in thousands of other realms. Algorithms can already predict numbers for a local beet harvest at the very beginning of the growing season by evaluating the tinge of green in a certain field. Algorithms can identify a hit song before it’s released by building a 3D model of a music file’s layers. Programs either can or soon will, choose our medicine, our blind dates, our salaries. They’ll even be able to identify and judge a work of art. Predictive software can make our lives easier, but the outsourcing of action to computer programs has implications, sometimes scary one. To what end can algorithms control our hospitals, our roads, our food supplies? What will happen if we continue to automate judgment and eliminate human instinct? The tectonic change brings the specter of unknown calamity along with the incredibly useful, life-saving possibilities it offers as well. Quants are pouring into other fields far from Wall Street and Steiner, an exciting investigative journalist, is there to take you on a ride to the brave new world. Christopher Steiner is the cofounder and co-CEO of Aisle 50, an online startup that offers deep discounts on groceries. An engineer, Steiner was previously a technology journalist at Forbes and the Chicago Tribune. His first book $20 Per Gallon, was a national bestseller.
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Book

Published 2012-08-01 by Portfolio

Book

Published 2012-08-01 by Portfolio

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Japanese: Kadokawa Korean: Acorn

Christopher Steiner's new book, Automate This: How Algorithms Came to Rule Our World, is a fascinating exploration of how the mathematics behind automated trading revolutionized business worldwide. But it is also a cautionary tale of how automated trading can get completely out of hand. Read more...

Are you really making your own decisions? How did you decide to read this review? If you were holding the magazine in your hands, the decision was probably yours alone, but online, what you clicked on may have been influenced by curating bots run by the likes of Google and Facebook. In Automate This, journalist Christopher Steiner details how we have ceded decisions about stock trading, music-making, medical diagnoses and more to computer algorithms - and how they often do a better job than human professionals. Read more...

Steiner traces the rise of algorithm-based trading on Wall Street, beginning in the late 1980s and carrying through to today, when 60 percent of trades occur via computer “with little or no real-time oversight from humans.” He says we can expect the Wall Street model to sweep across just about every field, as algorithms—complex sets of mathematical formulas—start to accomplish tasks with an insight and efficiency unmatched by people. Read more...

Algorithms may threaten the jobs of mid-level employees in many industries, but on the upside, says Christopher Steiner, smart engineers may be inspired to work on more important problems. Read more...