Eleven Dimensions for Adaptive Problem-Solving in the Human Brain
What Could Blue Brain’s Findings Do for Financial Model Building?
While not new research, it is fascinating to see the Blue Brain Project’s findings that the brain creates neural structures with up to 11 dimensions when it processes information. (These are mathematical spaces, not physical realms). Most interesting is the use of algebraic topography, a branch of mathematics that allows scientists to account for the brain’s ability to build structures to solve problems. Here’s a video that touches on their findings:
Blue Brain researchers found that the brain develops sandcastles of incredible complexity to solve problems that can vanish upon completion. Using algebraic topography the scientists were able to zoom in to find theoretical pockets processing power and then zoom out to find the gaps.
The implications for computational problem solving could be staggering. With adaptable systems and evolutionary patterns becoming more important, Blue Brain’s sandcastle research could have major effects on the development of artificial intelligence, machine learning, and neural network capabilities.
Financial Services and Cyclicality in Modeling
With the intersection of coding and financial services where could the rubber meet the road?
One concept revolves around the cyclicality in financial modeling. Certain factors become more important in analysis than others at different times. For example, low interest rates and inflation have been taken for granted for most of the last ten years. With the recent (and sudden) change in these factors, many financial models have not adapted to the new conditions and their predictive power has been questioned.
Transposing some of Blue Brain’s concepts around the brain’s adaptive problem solving concepts (and their limits) could give us an enormous lift in financial model building. It would allow for more intuitive (and delegated) problem solving design, better software architecture and resource allocation and, finally, more efficient coding. There is a lot to watch here!
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