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BlackRock launches a private trust to give clients exposure to spot bitcoin – CNBC

Larry Fink, chief executive officer of BlackRock Inc., gestures while speaking at the Handelsblatt Banking Summit in Frankfurt, Germany, on Wednesday, Sept. 4, 2019.

Alex Kraus | Bloomberg | Getty Images

BlackRock has launched a private trust offering institutional clients in the U.S. direct exposure to bitcoin.

The largest asset manager in the world revealed the new product in a blog post Thursday, though it was light on detail.

"Despite the steep downturn in the digital asset market,we are still seeing substantial interest from some institutional clients in how to efficiently and cost-effectively access these assets using our technology and product capabilities," the company said in the post.

Bitcoin is still more than 60% below its all-time high of almost $69,000. However, many investors believe it has found a bottom with stocks, with the two asset classes being more correlated to each other this year than ever before, amid 2022's slide in risk assets. On Thursday, the digital currency rose above $24,700 to its highest level since just before it fell to its June low.

"Bitcoin is the oldest, largest, and most liquid cryptoasset, and is currently the primary subject of interest from our clients within the cryptoasset space," the post continued.

The announcement follows CEO Larry Fink saying earlier this year that BlackRock clients had been showing "increasing interest" in digital currencies, including stablecoins and "the underlying technologies" also known as blockchain.

BlackRock on Thursday also highlighted the work of energy nonprofits RMI and EnergyWeb for their work "to bring greater transparency to sustainable energy usage in bitcoin mining," adding the firm "will follow progress around those initiatives."

Institutional investors once hostile toward the crypto industry have changed their tune in the last few years, but environmental concerns around the process of bitcoin mining have continued to be an obstacle for many.

The post said BlackRock has been researching areas with "potential to benefit our clients and capital markets more broadly," including permissioned blockchains, stablecoins, cryptoassets and tokenization.

Thursday's news is the latest in BlackRock's foray into crypto. The company, which has about $8.5 trillion in assets under management, announced recently a partnership with Coinbase that allows its institutional clients to buy crypto, beginning with bitcoin.

This also comes amid frustration by new institutional investors in the market keen to see the Securities and Exchange Commission approve a spot bitcoin exchange-traded fund. So far, only bitcoin futures ETFs have been approved.

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Bitcoin, Bitcoiners, Truth, Beauty And Love – Bitcoin Magazine

This is an opinion editorial by Tomer Strolight, editor-in-chief of Swan Bitcoin and author of Why Bitcoin.

I dropped into a Twitter Spaces the other afternoon focused on Bitcoin. In it were at least a dozen grown men talking about how much they loved, appreciated and admired everything about Bitcoin. Over a hundred others were listening in. The speakers compared Bitcoin to the greatest discoveries and inventions in all history some even saying it was clearly the greatest. Their gratitude for being alive at this time in history was something they took the time to explicitly express. I wasnt able to jump into the conversation, but if I had joined in I would have shared similar sentiments. There was tremendous respect and brotherhood in the discussion. And, although there weren't any women speaking there today while I listened in, Ive been with that group on other days and it is welcoming to women as well. It is a room of welcoming love for people who love Bitcoin. Ironically, it is called the Toxic Happy Hour. But it is anything but toxic.

Later, in the early evening, I spent time with one of my kids who just completed a math degree and wanted to share their love of math with me. We went through a textbook that was very advanced. (Please forgive this next terminology-heavy sentence): The final exercise we completed was a proof of a one-to-one reversible relationship (known as a bijective function) between all possible polynomials with integer coefficients and all the positive rational numbers - a proof that involved using exponents of prime numbers to translate between one and the other. Ive neither the skill nor the time to explain what exactly all that means, but when I finally understood this relationship, I was brought to my knees. This equivalence between two seemingly very different things hit me very deeply. I realized that what I saw was not only a timeless relationship but an eternal one. Whether the universe existed as it is now or in some different configuration, this relationship would still always hold true. It exists even if the physical universe itself doesnt. It exists outside of time and space. So do all mathematical relationships, I realized. They are all eternal the universe exists in them, not the other way around. And everything that exists in space and time cannot violate the truth of these relationships.

I point out this latter, mathematical experience because it was a metaphysically pure distillation of what the people in the Twitter Spaces were themselves trying to express. There are truths so deep that they transcend everything. They transcend each of us, all of humanity, and even space and time and they happen to be beautiful.

This love of beautiful, timeless truth is what had everyone in the Twitter Spaces discussion on Bitcoin so excited. They see in various facets and aspects of Bitcoin some deep truths so beautiful that they are roused to some kind of spiritual ecstasy they treasure Bitcoin. They treasure it not just because it produces a potentially vast monetary treasure, although it does. They treasure the beauty of its design how it utilizes the nature of mathematical truths, of fundamental human desires and needs, of physical realities of matter and energy and of numerous other delightful, elegant and beautiful truths.

Until that moment, I didnt appreciate or understand the beauty of the mathematical proof I was shown. But once seen, understood, and appreciated it was impossible to unsee and to not have some sense of reverence for it at least it was for me.

And so it is for many people once they begin to study, understand and appreciate Bitcoin. To outsiders who hear these expressions of reverence, there are some who may be intrigued to study it for themselves. But others react with concern, thinking Bitcoins admirers to be insane, fanatical, cultlike and zealous. If they ask questions about Bitcoin to these admirers Bitcoiners the Bitcoiners will usually bend over backwards trying to explain what it is they see. However, if these outsiders dismiss Bitcoin, or worse, declare that they do understand it and consider it foolish, ugly or false, they are, today at least, likely to evoke an angry backlash from Bitcoiners.

Bitcoiners are trying to share with the world a big, beautiful truth that actually consists of many smaller, beautiful truths. Bitcoin is this truth verification and truth-generating process spanning many realms of truth the mathematical, the human, the economic and many more. Emotionally, Bitcoiners are delighted when they succeed in sharing this with others, and theyre often deeply disappointed when they fail. And, again today, theyre angered when others go about trying to do the opposite, which is to suggest that Bitcoin isnt deeply and uniquely connected to the beautiful truths it reveals. Many Bitcoiners may have first heard of and been drawn to Bitcoin through claims that it was a get-rich-quick scheme, but they have since dismissed this frantic and superficial goal and replaced it with a deeper goal of fixing the world and sharing truth and beauty.

This transformation from anxious money-lusters to whatever it is theyve become, or are in the process of becoming, does not happen overnight, nor does it happen to everyone. Some people pass by and miss Bitcoins messages of truth the first or second time they hear about it. Some explore and encounter something that scares them and drives them to fearfulness where they not only flee Bitcoin but loudly warn others away with panicked fervor. Others reject its truths and see opportunities to in fact get rich quickly, typically at the expense of other newcomers, and most often by creating knock-offs of Bitcoin that dont share its truths. These people seem well aware of this and cover up those deficiencies with lies about these imitations, false and exaggerated claims about themselves, lies about Bitcoin, or lies about the Bitcoiners. Sometimes the mistakes are innocent, driven by a misunderstanding of why Bitcoin is designed as it is. Either way, over 20,000 imitators of Bitcoin are now in operation, and about as many have come and gone, many leaving victims in their wake.

Not surprisingly, all these things tend to evoke not only criticism from, but also often anger among many Bitcoiners, since they are drawn to honesty and fairness, and these imitators lack the truth and fairness of Bitcoin. This angry reaction has been labeled as toxic behavior of Bitcoiners. Their commitment to Bitcoin as a truth, and their efforts to point out the inadequacies and needlessness of imitators have slapped them with a pejorative slur: Bitcoin Maximalist a term implying that they only care about their project and are unfairly closed-minded and dismissive of others. Instead of rejecting these terms outright, many Bitcoiners have embraced them and transformed them into badges of honor in a sarcastic, ironic twist intended to demonstrate that name-calling and insults do nothing to alter the actual truth.

However, all this has led to a lot of confusion, especially for outside observers and newcomers. While it has helped some people differentiate between Bitcoin and its imitators, it has also scared off others. It is used as ammunition against Bitcoin by its most dishonest enemies. And it is also frightening to the most sensitive and fragile newcomers individuals who desperately need real truths that will make them stronger through the knowledge that there are beautiful, incorruptible, inviolable truths that nobody can harm.

But this article is not for the newcomers. It is for the Bitcoiners. What I want to point out is that this hurts us not Bitcoin Bitcoiners. Im not talking about our reputation as viewed by others. Im not talking about any financial cost we may have incurred. Im talking about the fact that it has taken away time from our lives that we would otherwise have spent in love, appreciation, admiration, friendship, productive endeavors and other activities that are spiritually far more satisfying than the deeply unsatisfying experience of arguing with people who have intentionally rejected the truth.

When Bitcoin ultimately succeeds and needs no longer be explained or defended as much as today, this toxicity will evaporate (in much the same way as nobody today needs to defend the utility of the internet or smartphones, although it needed defense when there were many people claiming these were useless, slow, and expensive).

But for now, having pointed out that explanations and defense are still required, I want to suggest that I believe we can take a different tack than the one many of us find ourselves on because it is in our individual interest to do so.

That path is one of simply not succumbing to the temptation to anger when the truth and beauty of Bitcoin is denied by others. Truth, as Ive said, transcends all. Lies eventually wither in a battle not just with the reality of the universe, but with the eternal and inviolable truths that are deeper than even existence itself. If you believe in, or better yet understand the truths that Bitcoin is built upon and operates under, you will realize you need not get angry even if you are hearing someone who is a very skillful liar and knows they are lying telling horrible lies to hurt others. Rather than get angry, you can maintain your calm, knowing that you yourself need not succumb to the lies, and that you can maintain your calm by offering to speak calmly to listeners in a separate location or time.

This path of refusing to engage in negative emotional debates is far more rewarding. Spending time with interested learners rather than incurious charlatans provides the opportunity to spend time discussing truth, beauty and love instead of wasting time countering irrational or deceitful ugliness that stirs up anger and hatred in you. In such settings, one can take their time and be fully honest, even to the point of admitting what it is that we don't know, dont understand and cannot explain.

Bitcoiners are lovers of truth, and also of fairness, justice and honesty and while Im telling the unvarnished truth were also lovers of success, of friendship and of love itself. And were also human. So were capable of taking action that doesnt get us what we love. We need to be aware that we have a choice and be aware of which actions will put us on the path that is not the best one for us. Our enemies want us on that wrong path. It is where they enjoy the home field advantage. But we neednt meet them there ever. And we neednt give them free rein in our home field either the field of truth-telling. To the extent that we do entertain them in our space and on our time they must not be permitted to either draw us away from truth-telling or to draw us towards anger for that takes us away from truth and love and into anger and hatred.

One truth Bitcoin shows us is that we are sovereign not just over our monetary wealth, but also over our emotions; not just over where we spend our money, but also over where and how we spend our time. So spend it wisely, with those you love and who you may come to love what you love, and with those who can teach you. Dont waste your time with those who want to argue for the sake of argument, or worse, for the sake of wasting your precious time and using your presence to mislead others. Take the high road. Point out truths. Caution others of falsehoods when you must. But dont sink to the low vibrational energy of your opponents. Be a role model even for them. In the final analysis, it may be the only way to get them to see the light of the truth.

This is a guest post by Tomer Strolight, editor-in-chief of Swan Bitcoin and author of Why Bitcoin. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

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Is The Bitcoin Surge Due To An External Reason? What The Data Suggests – NewsBTC

The worlds first and largest cryptocurrency is making gallant steps towards the greens in a recent outturn of events. Bitcoin is experiencing a sharp rise in price within its market. Recent trading activities got BTCs price to hit the $24,000 mark. This creates a positive record for the top cryptocurrency across the industry.

Though Bitcoin is making a tremendous improvement in value, its number of active addresses seems to be downtrend.

The sudden growth in price for BTC likely has little connection with the overview of the crypto market. This upward trend occurs due to external pushes that spiked the price. But the irony is that there is no notable rise in the number of its active wallets.

Records from on-chain reports show that Bitcoins number of active wallets is relatively low. Crypto Quant, an on-chain analytics firm, gave its data indicating a downward move for the active addresses. It reports that new contracts are emerging in the futures market as prices keep surging.

This contradicts the current trend in the crypto futures market that depicts increasing momentum. Since the spike is not from an internal influence, the sustainability of the present positive pressure and price rise is quite unclear.

With new contracts opening, the futures market is experiencing higher crypto prices. Also, cryptocurrency short-term investors are taking up positions within the futures market. Such activities are invariably creating spikes in prices. Hence, the significant market price increase is the final outplay of the sudden rise in buying positions.

Additionally, the speculations on the short term in the futures market could make for a fast reversal at any point. Such indications could twist prices in the future in any direction.

The report from analytics firm Crypto Quant also confirms that using directional bets at the moment as it concerns vital macro data poses increasing doom. There are high possibilities of swift directional change in the short term. Hence, the importance of achieving sustainability would depend more on risk management.

Currently, the value of BTC is slightly above $24,000. The impact of macroeconomic activities during the week could trigger volatility in the Bitcoin price. Also, the U.S. inflation data, due on Wednesday, has a role in the overall outcome.

Conversely, there seems to be a more accurate indication of the BTC price forecast for August. According to the community predictions, Bitcoin could hit the $28,000 level by the end of the month.

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Heres Whats Next for Bitcoin, Fantom and One Under-the-Radar Altcoin, According to Top Crypto Trader – The Daily Hodl

A popular crypto analyst is laying out his roadmap for Bitcoin (BTC) and two altcoins, including an Ethereum (ETH) competitor.

Michal van de Poppe tells his 621,800 Twitter followers that Bitcoin is currently consolidating.

He says if BTC does dip in price, it needs to hold a low in the area around $21,323 to avoid a trend switch.

The trend is still upwards, potentially a correction now is taking place due to CPI fears.

Important:Hold above $21,300 to continue the trend.Break above $24,500 to continue to $28,000.

BTC is trading at $23,893 at time of writing. The top-ranked crypto asset by market cap is up more than 3% in the past 24 hours.

Van de Poppe also notes that Ethereum rival Fantom (FTM) could surge all the way to $0.50.

FTM is trading at $0.405308 at time of writing. The 57th-ranked crypto asset by market cap is up nearly 10% in the past 24 hours.

Van de Poppe says Zilliqa (ZIL), a blockchain designed for enterprise solutions, is also consolidating. The trader says ZIL is most likely to take off on a breakout as soon as it jumps above $0.049.

ZIL is trading at $0.045384 at time of writing. The 80th-ranked crypto asset by market cap is up more than 5% in the past day.

Featured Image: Shutterstock/breakermaximus

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Bitcoin aSOPR Fails Retest Of Historical Bull-Bear Junction – NewsBTC

On-chain data shows the Bitcoin aSOPR indicator has found resistance at the historical junction between bull and bear markets.

As pointed out by an analyst in a CryptoQuant post, the BTC aSOPR has been rejected from the breakeven mark recently.

The Spent Output Profit Ratio (or SOPR in short) is an indicator that tells us whether Bitcoin investors are selling at a loss or at a profit right now.

The metric works by looking at the on-chain history of each coin being sold to see what price it was last moved at.

If the previous selling price of any coin was less than the current value of BTC, then that particular coin has just been sold at a profit. While if its otherwise, then the coin realized some loss.

A modified version of this indicator, the Adjusted SOPR (aSOPR), excludes from its calculations all those coins that were held for less than 1 hour before being sold. The benefit of this modification is that it removes all noise from the data that wouldnt have had any significant implications on the market.

Now, here is a chart that shows the trend in the Bitcoin aSOPR over the past coupe of years:

When the value of the aSOPR is greater than one, it means the average investor is selling at a profit right now. On the other hand, the metric being lesser than the threshold suggests the overall market is moving coins at a loss.

As you can see in the above graph, the analyst has marked the relevant zones of trend for the Bitcoin aSOPR.

It seems like during bull markets, the 1 value of the metric has acted as support, while during bears it has provided resistance.

The significance of this line is that its the breakeven mark for investors as at this value holders are just breaking even on their selling.

During bulls, investors think of this line as a good buying opportunity, but in bears they see it as an ideal selling point.

Recently, the aSOPR attempted a retest of this mark, however, it was rejected back into the loss zone. If the historical pattern is anything to go by, this current trend would mean Bitcoin is still stuck in a bear market.

At the time of writing, Bitcoins price floats around $24.5k, up 7% in the past week.

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Texas paid this company to mine bitcoin during an ongoing energy crisis – PC Gamer

Riot Blockchain, a bitcoin mining company based in Texas, was able to completely offset the cost of a month's worth of electricity thanks to a state subsidy. It did so by voluntarily turning off some of its miners during the month of July, thus earning millions in power credits for "contributing to power grid stability in Texas."

The company was able to mine about 318 BTC during the month of July, down 30% from last year, and valued at around $6.88 million. This was in addition to the $9.5 million in power credits awarded to them for not drawing power away from an already strained ERCOT power grid (opens in new tab). This means the company was able to mine almost $7 million in bitcoin for essentially free for an entire month (via Web3isgoinggreat (opens in new tab)).

In a press release, Riot Blockchain CEO Jason Les claims that "when applied to anticipated power costs for the month, the power credits and other benefits are expected to eliminate Riots power costs for July."

This means Riot was still able to mine millions in bitcoin and have the energy bill for July paid for by Texan tax dollars.

In case you're wondering how much power usage was saved by Riot turning off just some of its miners, the company "curtailed a total of 11,717-megawatt hours in July, enough to power 13,121 average homes for one month."

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Meanwhile, according to this report in the Texas Tribune (opens in new tab), Texans are paying at least 50% more in electricity costs this summer as record-breaking temperatures increase demands on the state's energy grid.

"By providing power back into the ERCOT grid during periods of peak demand, the Company estimates that power credits and other benefits from curtailment activities totaled an estimated $9.5 million, significantly outweighing the reduction in BTC mined."

As of 2022, 35% of all bitcoin mining happens in the US, generating about 40 billion pounds of carbon emissions. Estimates say that mining one bitcoin uses the same amount of power consumption as an American household over 50 days (opens in new tab).

In April, the company announced plans to upgrade its Corsicana facility into a 1-gigawatt operation in Navarro County. Riot also has a massive 750MW facility in Rockdale, Texas.

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Bitcoin: Analysts take on where BTC could go next – AMBCrypto News

The king coin of cryptocurrencies continues to divide opinions among skeptics with its latest movement. After rejecting the $24.2K resistance, BTC prices have crashed below $23,450 at press time according to CoinMarketCap.

This rejection has raised many eyebrows in the community since market conditions have improved of late.

Galaxy Digital CEO Mike Novogratz recently told Bloomberg that he remains doubtful if Bitcoin will push the $30K barrier anytime soon.

Will Bitcoin get through USD 30,000 on this move up? We will see. Im doubtful. I think were going to probably be in this range now. I quite frankly would be happy if were in a USD 20,000, USD 22,000, or USD 30,000 range for a while.

Novogratz further stated, Were not seeing huge institutional flows, to be fair, but were not seeing anyone back away.

That being said, a CryptoQuant insight recent signaled a bullish line across Bitcoin after seeing contract openings in the futures market.

According to the update, expectations of an improvement in macro sentiment lead short-term betters to build positions in the futures market (open interest), betting on the momentum gain that could channel prices higher.

However, it remains to be seen if this futures-led rally can prove to be sustainable. This is true, especially for short-term investors who change positions quickly as they are sensitive to changes in general sentiment.

Another bullish indicator was laid out by prominent trader Tone Vays on his YouTube channel. He shed light on a historically bullish signal that preceded BTCs bottoms in 2015 and 2018 bear markets.

According to Vays, a bullish signal could open up in about three weeks which could be as late as the end of August.

I like the bullish structure here. This is the monthly Heikin-Ashi chart. I would like to see an actual MRI buy. Historically, these MRI buys have been incredible. Back in 2018, we had the perfect buying opportunity, back in 2015 as well. And if the bear market was longer [in 2013], Im sure we could have gotten one back then as well. And here it is: the third ever MRI buy coming up in about three weeks unless the price rallies a lot significantly, which I hope it does, but we will see,

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Glassnode Report Shows Bitcoin And Ethereum Derivatives Gain Massive Traction – NewsBTC

The 2022 crypto winter seems to be one of the most severe bearish trends in cryptocurrency history. This saw the entire crypto market cut down by over 50% in value since the beginning of the year. Also, the situation in the crypto market got worse with the collapse of the Terra-LUNA ecosystem.

However, the crypto market is recovering slightly from its trauma in the years first half. Bitcoin price is suddenly picking up despite its weeks instability and swings.

According to the data from Glassnode, a blockchain analytics firm, the derivatives of the leading cryptocurrencies are making positive progress. Bitcoin and Ethereum derivatives are receiving increased attention from investors with more trading of BTC futures and higher ETH holders.

The record from Glassnode indicates that the Bitcoin derivatives market has a slight directional bias. This means that investment in the market is coming with more caution from the investors. But on the side of Ethereum, there is evidence of optimism from the investors.

The network records more demands for ETH against little withdrawals from the wallets. These overall events for Ethereum could be due to the upcoming Merge.

As per Glassnodes Future Open Interest (BTC) Metric, investors seem to have more confidence in the derivatives market. They are laying aside the events and fear that came with the collapse of Terra-LUNA tokens. Also, the effect of the May-June mining capitulation is wading off gradually.

Glassnode noted the increasing stability in futures trading volume. It recalled that the past 12 months from the sell-off since May 2021 posed a structural dip in trade volume. However, it seems to be staging a come-back as it boasts $33 per day.

Also, the futures markets passed through a structural change within the past one and half years. This was at the beginning of 2021, as the Bitcoin price was in a bullish trend. The underlying spread was stable even as leverage was going up.

Currently, Ethereum derivatives are receiving more attention from investors than Bitcoin. This appears to be the first time in the history of cryptocurrency to experience such a twist between the two leading assets. While Ethereum derivatives record about $6.6 billion in ETH, those of Bitcoin are at $4.8 billion in BTC.

Additionally, the outplay depicts that ETH options Open Interest is almost at its ATH as of Nov 2021. This was when Ether hit $4,900.

A more acceptable explanation for the price increase is the influence of the upcoming Ethereum Merge. Most investors make bullish bets on prices between $2,200 and $5,000.

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Artificial Intelligence and Machine Learning: Enhancing Human Effort with Intelligent Systems – Automation.com

Summary

Only when the challenges of data accessibility and expensive computing power were mitigated did the AI field experience exponential growth.There are now more than a dozen types of AI being advanced. This feature originally appeared in InTech magazine's August issue, a special edition from ISA's Smart Manufacturing and IIoT Division.

Artificial intelligence has come a long way since scientists first wondered if machines could think.

In the 20th century, the world became familiar with artificial intelligence (AI) as sci-fi robots who could think and act like humans. By the 1950s, British scientist and philosopher Alan Turing posed the question Can machines think? in his seminal work on computing machinery and intelligence, where he discussed creating machines that can think and make decisions the same way humans do (Reference 1). Although Turings ideas set the stage for future AI research, his ideas were ridiculed at the time. It took several decades and an immense amount of work from mathematicians and scientists to develop the field of artificial intelligence, which is formally defined as the understanding that machines can interpret, mine, and learn from external data in a way that imitates human cognitive practices (Reference 2).

Even though scientists were becoming more accustomed to the idea of AI, data accessibility and expensive computing power hindered its growth. Only when these challenges were mitigated after several AI winters (with limited advances in the field) did the AI field experience exponential growth. There are now more than a dozen types of AI being advanced (Figure).

Due to the accelerated popularity of AI in the 2010s, venture capital funding flooded into a large number of startups focused on machine learning (ML). This technology centers on continuously learning algorithms that make decisions or identify patterns. For example, the YouTube algorithm may recommend less relevant videos at first, but over time it learns to recommend better targeted videos based on the users previously watched videos.

The three main types of ML are supervised, unsupervised, and reinforcement learning. Supervised learning refers to an algorithm finding the relationship between a set of input variables and known labeled output variable(s), so it can make predictions about new input data. Unsupervised learning refers to the task of intelligently identifying patterns and categories from unlabeled data and organizing it in a way that makes it easier to discover insights. Lastly, reinforcement learning refers to intelligent agents that take actions in a defined environment based on a certain set of reward functions.

Deep learning, a subset of ML, had numerous ground-breaking advances throughout the 2010s. Similar to the connections between the nervous system cells in the brain, neural networks consist of several thousand to a million hidden nodes and connections. Each node acts as a mathematical function, which, when combined, can solve extremely complex problems like image classification, translation, and text generation.

Human lifestyle and productivity have drastically improved with the advances in artificial intelligence. Health care, for example, has seen immense AI adoption with robotic surgeries, vaccine development, genome sequencing, etc. (Reference 5). So far, the adoption in manufacturing and agriculture has been slow, but these industries have immense untapped AI possibilities (Reference 6). According to a recent article published by Deloitte, the manufacturing industry has high hopes for AI because the annual data generated in this industry is thought to be around 1,800 petabytes (Reference 7).

This proliferation in data, if properly managed, essentially acts as a fuel that drives advanced analytical solutions that can be used for the following (Reference 8):

Ultimately, AI and advanced analytics can augment humans to help mitigate repetitive and sometimes even dangerous tasks while increasing focus on endeavors that drive high value. AI is not a far-fetched concept; it is already here, and it is having a substantial impact in a wide range of industries. Finance, national security, health care, criminal justice, transportation, and smart cities are examples of this.

AI adoption has been steadily increasing. Companies are reporting 56 percent adoption in 2021, an uptick of 6 percent compared to 2020 (Reference 10). With the technology becoming more mainstream, the trends of achieving solutions that emphasize explainability, accessibility, data quality, and privacy are amplified.

Explainability drives trust:To keep up with the continuous demand of more accurate AI models, hard-to-explain (black-box) models are used. Not being able to explain these models makes it difficult to achieve user trust and to pinpoint problems (bias, parameters, etc.), which can result in unreliable models that are difficult to scale. Due to these concerns, the industry is adopting more explainable artificial intelligence (XAI).

According to IBM, XAI is a set of processes and methods that allows human users to comprehend and trust the ML algorithms outputs (Reference 11). Additionally, explainability can increase accountability and governance.

Increasing AI accessibility:The productization of cloud computing for ML has taken the large compute resources and models, once reserved only for big tech companies, and put them in the hands of individual consumers and smaller organizations. This drastic shift in accessibility has fueled further innovation in the field. Now, consumers and enterprises of all sizes can reap the benefits of:

Data mindset shift:Historically, model-centric ML development, i.e., keeping the data fixed and iterating over the model and its parameters to improve performances (Reference 12), has been the typical approach. Unfortunately, the performance of a model is only as good as the data used to train it. Although there is no scarcity of data, high-performing models require accurate, properly labeled, and representative datasets. This concept has shifted the mindset from model-centric development toward data-centric developmentwhen you systematically change or enhance your datasets to improve the performance of the model (Reference 12).

An example of how to improve data quality is to create descriptive labeling guidelines to mitigate recall bias when using data labeling companies like AWS Mechanical Turk. Additionally, responsible AI frameworks should be in place to ensure data governance, security and privacy, fairness, and inclusiveness.

Data privacy through federated learning:The importance of data privacy has not only forged the path to new laws (e.g., GDPR and CCPA), but also new technologies. Federated learning enables ML models to be trained using decentralized datasets without exchanging the training data. Personal data remains in local sites, reducing the possibility of personal data breaches.

Additionally, the raw data does not need to be transferred, which helps make predictions in real time. For example Google uses federated learning to improve on-device machine learning models like Hey Google in Google Assistant, which allows users to issue voice commands (Reference 13).

Maintenance, demand forecasting, and quality control are processes that can be optimized through the use of artificial intelligence. To achieve these use cases, data is ingested from smart interconnected devices and/or systems such as SCADA, MES, ERP, QMS, and CMMS. This data is brought into machine learning algorithms on the cloud or on the edge to deliver actionable insights. According to IoT Analytics (Reference 14), the top AI applications are:

Vision-based AI systems and robotics have helped develop automated inspection solutions for machines. These automated systems have not only been proven to save human lives but have radically reduced inspection times. There have been significant examples where AI has outperformed humans, and it is a safe bet to conclude that several AI applications enable humans to make informed and quick decisions (Reference 15).

Given the myriad additional AI applications in manufacturing, we cannot cover them all. But a good example to delve deeper into is predictive maintenance, because it has such a large effect on industry.

Generally, maintenance follows one of four approaches: reactive, or fix what is broken; planned, or scheduled maintenance activities; proactive, or defect elimination to improve performance; and predictive, which uses advanced analytics and sensing data to predict machine reliability.

Predictive maintenance can help flag anomalies, anticipate remaining useful life, and provide mitigations or maintenance (Reference 17). Compared to the simple corrective or condition-based nature of the first three maintenance approaches, predictive maintenance is preventive and takes into account more complex, dynamic patterns. It can also adapt its predictions over time as the environment changes. Once accurate failure models are built, companies can build mathematical models to reduce costs and choose the best maintenance schedules based on production timelines, team bandwidth, replacement piece availabilityand other factors.

Bombardier, an aircraft manufacturer, has adopted AI techniques to predict the demand of its aircraft parts based on input features (i.e., flight activity ) to optimize its inventory management (Reference 18).

This example and others show how advances in AI depend on advances associated with other Industry 4.0 technologies, including cloud and edge computing, advanced sensing and data gathering, and wired and wireless networking.

This feature originally appeared in InTech magazine's August issue, a special edition from ISA's Smart Manufacturing and IIoT Division.

Ines Mechkane is the AI Technical committee chair of ISAs SMIIoT Division. She is also a senior technical consultant with IBM. She has a background in petroleum engineering and international experience in artificial intelligence, product management, and project management. Passionate about making a difference through AI, Mechkane takes pride in her ability to bridge the gap between the technical and business worlds.

Manav Mehra is a data scientist with the Intelligent Connected Operations team at IBM Canada focusing on researching and developing machine learning models. He has a masters degree in mathematics and computer science from the University of Waterloo, Canada, where he worked on a novel AI-based time-series challenge to prevent people from drowning in swimming pools.

Adissa Laurent is AI delivery lead within LGS, an IBM company. Her team maintains AI solutions running in production. For many years, Laurent has been building AI solutions for the retail, transport, and banking industries. Her areas of expertise are time series prediction, computer vision, and MLOps.

Eric Ross is a senior technical product manager at ODAIA. After spending five years working internationally in the oil and gas industry, Ross completed his master of management in artificial intelligence. Ross then joined the life sciences industry to own the product development of a customer data platform infused with AI and BI.

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Filings buzz: tracking artificial intelligence mentions in the tech sector – Verdict

Mentions of artificial intelligence within the filings of companies in the tech sector were 285% higher between July 2021 and June 2022 than in 2016, according to the latest analysis of data from GlobalData.

When tech companies publish annual and quarterly reports, ESG reports and other filings, GlobalData analyses the text and identifies individual sentences that relate to disruptive forces facing companies in the coming years. Artificial intelligence is one of these topics - companies that excel and invest in these areas are thought to be better prepared for the future business landscape and better equipped to survive unforeseen challenges.

To assess whether artificial intelligence is featuring more in the summaries and strategies of tech companies, two measures were calculated. Firstly, we looked at the percentage of companies which have mentioned artificial intelligence at least once in filings during the past twelve months - this was 81% compared to 47% in 2016. Secondly, we calculated the percentage of total analysed sentences that referred to artificial intelligence.

Of the 10 biggest employers in the tech sector, IBM was the company which referred to artificial intelligence the most between July 2021 and June 2022. GlobalData identified 283 artificial intelligence-related sentences in the United States-based company's filings - 3.4% of all sentences. Hitachi mentioned artificial intelligence the second most - the issue was referred to in 1.3% of sentences in the company's filings. Other top employers with high artificial intelligence mentions included Accenture, Capgemini and Infosys.

Across all tech companies the filing published in the second quarter of 2022 which exhibited the greatest focus on artificial intelligence came from SenseTime. Of the document's 2,020 sentences, 170 (8.4%) referred to artificial intelligence.

This analysis provides an approximate indication of which companies are focusing on artificial intelligence and how important the issue is considered within the tech sector, but it also has limitations and should be interpreted carefully. For example, a company mentioning artificial intelligence more regularly is not necessarily proof that they are utilising new techniques or prioritising the issue, nor does it indicate whether the company's ventures into artificial intelligence have been successes or failures.

GlobalData also categorises artificial intelligence mentions by a series of subthemes. Of these subthemes, the most commonly referred to topic in the second quarter of 2022 was 'machine learning', which made up 38% of all artificial intelligence subtheme mentions by tech companies.

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Filings buzz: tracking artificial intelligence mentions in the tech sector - Verdict

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