For decades, financial institutions made decisions based on the intuition and knowledge of their traders and employees.
These people determined what financial decisions would serve the company best.
When computers and artificial intelligence were just manifesting in the world, Ray Dalio saw a future where these technologies could be harnessed to create better decision-making processes.
Dalio foresaw how automation and machine learning via algorithmic decision-making could change the world of finance dramatically.
Algorithmic decision-making occurs when a computer (or network of computers) determines the most optimal decision based on previous decision data and a variety of inputs.
In this video, Dalio talks about the key to his success – algorithm. He says by putting his thinking in equations or algorithms, he can make the best decisions for his business and investments.
Source: Finance Jane