Their supply chain was to select and buy millions of movies, put them on the shelves in almost 9,100 stores where 84,300 employees would rent and resell the movies. Then customers drove to their favorite store hoping to find the movie they wanted to watch that night. With limited tapes available, it was probably already rented to somebody else, so they had to choose a different title. Then, it had to be returned to the same store before midnight, or pay a penalty fee.
Compare that to Netflix’s supply chain, which had a few people setting up contracts for content and creation. Customers could access the content to stream it from one cloud where it was stored. Netflix now employs 7,100 people with the majority working to adjust content. Customers are able to open an app on their phone, TV or computer, watch movies free for 30 days and pay one monthly fee.
Many feel Netflix’s success is a result of their ability to watch movies online, but that is just the tip of the iceberg. Most people are shocked to find that Netflix’s AI (Algorithmic Intelligence) has contributed to most of their achievements. Before we go into that, let’s define a few things.
What is an Algorithm?
It’s a process or set of rules to be followed in calculations or other problem-solving operations, especially by a computer. Algorithms are innately limited in scope and are often performed by computers.
What is Algorithmic Intelligence (AI)?
A process or set of rules to be followed in calculations or other problem-solving operations that have the ability to change their own rules. Algorithmic Intelligence (AI) is used all around us! Now let’s see how Netflix uses it.
Netflix Uses AI
As you use Netflix, lots of information is gathered from your visits. Then, using AI, they make your next visits easier, more personalized and faster. This is done by looking at the types of movies you watch, how long you watch, how you rate them, what pictures you click on and even load times of users in your area.
The next time you login to Netflix, your suggested movies will be things that are similar to other movies you have watched in the past. The artwork will be based on images you’ve clicked on before. Using AI in as many ways as possible, you’ll see enticing content.
3 Ways Netflix Is Using AI To Dominate The Market:
- AI Movie Recommendations
- AI Auto-Generation of Thumbnails
- AI Streaming Quality
Not The Only Ones
Many companies are using AI for product, website and ad recommendations. On Google, AI manages the search engine to show what definitions, videos, ads and websites appear.
Email providers use AI to protect our inboxes from spam attacks.
The AI on Amazon tracks products and recommendations based on browsing data, ratings, seller velocity and tons of other factors we don’t know about!
Algorithms Set To Change The Investment World
Just like Netflix quietly changed Blockbuster’s world. Algorithms are changing the investment world.
Right now in the investment world, we see low efficiency with their big buildings, large trading teams and high costs.
They are unable to manage risk. Index funds follow the market and most mutual funds perform worse than our expectations.
Then, there’s the lack of transparency. The great return on a mutual fund doesn’t happen because high, hidden fees are consuming it.
It’s Time For Algorithms To Disrupt The Investment World!
Financial AI Architect and iFlip CTO Kelly Korshak said, “If you want to transform data, which can be logically and clearly defined, algorithms will beat out humans every time…”
In the financial world, AI and machine learning are currently used for everything from cybersecurity, price patterns, and virtual financial assistants to assessing credit risk, and predicting drops in the market.
By using Algorithmic Intelligence, iFlip has created the best automated stock trading software available. This algorithmic trading software goes beyond balancing your portfolio. It daily manages the risk of your stocks to increase your returns and will soon be available as a mobile trading app so you can take your trading anywhere you go.
iFlip’s AI is more than simple machine learning, robo trading or artificial intelligence. It looks at market performance and historical data. And then tells the system to buy, sell or hold stock positions. It does this daily and it does it for you, allowing you to grow your wealth. All without hidden fees, making it the best algorithmic trading software available.