A Note on Artificial Intelligence
– Written by Jamie Murray, CFA
Michael Lewis’ 2003 book Moneyball chronicles the use of improved data to better predict the probability of winning vis-a-vis the more traditional, outdated methodologies, and how the early adoption of statistical analysis by the low-budget Oakland Athletics helped the team triumph over large-market teams with far greater budgets. The movie version ends with Athletics General Manager Billy Beane (the main protagonist and proponent of the new statistics) being interviewed by Red Sox Owner John Henry at the iconic Fenway Park in Boston. Henry wants Beane to become his new GM. What was the significance of this meeting? Moneyball was about to go mainstream.