Investment Analysis
A number of major investors use expert systems for a number of purposes. They are used to monitor stock markets by looking at how prices of the various stocks vary. They can also be used to sell shares automatically if that is what the rules in the knowledge base suggest. Huge knowledge bases containing facts about the prices of a multitude of stocks over years are kept and the expert system can suggest possible trends. They are not foolproof, since the human experts contributing to their knowledge are also not foolproof, but using such systems in combination with human experts can result in some profitable decisions being made. They are also used by investment companies to select the companies that their investors should put their money into. The questions asked by the expert system are much the same as those that an expert financial adviser would ask, for example:
PORCEL: Example of Expert System.
- Does the investor mind investing in risky companies with a possible high return or are they happy to have a lower return on their investment but with a 'safe' company?
- Has the investor got specific areas that they want to invest in (e.g. oil, gold or other commodities)?
- Are there specific companies the investor wants to avoid (e.g. companies that contribute to global warming)?
PORCEL: Example of Expert System.