Pensacola Bankruptcy Attorneys Discuss New Artificial Intelligence that Predicts Bankruptcy
October 27, 2021 at 16:08
Pensacola, Fla. – The best way to solve a problem is to prevent one from happening; this is especially true when it comes to finance. When looking to invest in or work with a company, it is important to do all the necessary research to make sure it is a wise financial move. Local Pensacola bankruptcy attorneys Lewis and Jurnovoy are explaining the rise of highly advanced artificial intelligence that can predict whether a company is headed towards bankruptcy.
Creating new ways to forecast bankruptcy has recently been a strong focus of research economists. This research effort is paying off, as a new method of employing machine learning has been established. It was discussed in the Expert Systems with Applications journal in an article called, “Bankruptcy Prediction on the Base of the Unbalanced Data Using Multi-Objective Selection of Classifiers,” written by a professor, Yuri Zelenkov, and student, Nikita Volodarskiy, from the HSE Graduate School of Business.
Machine learning is “a branch of artificial intelligence (AI) and computer science which focuses on the use of data and algorithms to imitate the way that humans learn, gradually improving its accuracy,” as stated by the International Business Machines Corporation.
The National Research University Higher School of Economics explains that the task of predicting bankruptcy is “a type of ‘classification task,’ which involves determining whether a given business belongs to one of two categories: those which remain in operation and those which go bankrupt within a certain period of time. The proposed method was developed using a set of historical data on successful and failed companies. The AI is trained using a set of business performance indicators. It then searches for complex patterns in companies' development and their current state.” Once the AI is properly trained, it is able to forecast to a certain degree the direction a company is headed in.
Martin S. Lewis and Steven D. Jurnovoy have been practicing law for over 20 years and are proud to serve a wide variety of clients, ranging across the Florida Panhandle in Crestview, Pensacola, Panama City, and Fort Walton Beach. To give their clients the most effective bankruptcy assistance, Lewis and Jurnovoy make it a point to keep an eye on relevant events and changes in the world of finance. For further inquiries or to schedule a free consultation, give Lewis and Jurnovoy a call today at (850) 432-9110 or visit their website at lewisandjurnovoy.com.
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Lewis & Jurnovoy, PA Pensacola
1100 North Palafox St
Pensacola, FL 32501