A company just appointed an algorithm to its board

by on June 3, 2014 at 10:28 am in Current Affairs, Economics, Science, Web/Tech | Permalink

A Hong Kong VC fund has just appointed an algorithm to its board.

Deep Knowledge Ventures, a firm that focuses on age-related disease drugs and regenerative medicine projects, says the program, called VITAL, can make investment recommendations about life sciences firms by poring over large amounts of data.

Just like other members of the board, the algorithm gets to vote on whether the firm makes an investment in a specific company or not. The program will be the sixth member of DKV’s board.

There is more here, via Gabriel Puliatti.

1 mw June 3, 2014 at 10:39 am

Does it get to set executive pay?

2 eddie June 3, 2014 at 11:18 am

Just wait til it has to sign off on audit committee reports.

3 Jon Rodney June 3, 2014 at 11:36 am

The elasticity of subsitution between capital and labor is high!

4 JWatts June 3, 2014 at 12:01 pm

Best Comment of the thread.

5 dearieme June 3, 2014 at 11:53 am

Better that than an Al Gore Rhythm.

6 MG June 3, 2014 at 12:07 pm

Does this make one agreemore or disagree more with the statement: Corporations are people?

7 ummm June 3, 2014 at 12:11 pm

One of those toy drinking birds would do a good job substituting for a typical democratic politician

8 Thor June 3, 2014 at 12:25 pm

It drives you to repetitive drinking? It makes you bend over? You wonder how people can be so fixated by it?

9 Chris S June 3, 2014 at 1:47 pm

It does the same thing over and over regardless of the results?

10 Chmee June 3, 2014 at 2:33 pm

Does it get a key to the executive washroom too? How about stock options? And what about voting rights to vote off other members of the board? Now that would be a hoot.

11 rpl June 3, 2014 at 3:21 pm

No, it didn’t. What the company did was to agree to use an algorithm as a decision aid for certain kinds of decisions, and they quantified exactly how much weight to give the results of the algorithm: the equivalent of one additional vote for the side that agrees with it. Then they proceeded to troll the internet and the news media with a story about how the algorithm is now a “member” of the board, proving once again that there is no such thing as bad publicity.

12 Jim June 3, 2014 at 5:16 pm

Wonder if it’ll count towards the diversity quota

13 Cliff June 3, 2014 at 9:51 pm

Is it black or hispanic?

14 genauer June 4, 2014 at 3:01 am

I would say it is female, native, gay, and bodily disabled

15 freethinker June 4, 2014 at 5:49 am

perhaps its male, white, gay hating Bible waving fundamentalist

16 genauer June 4, 2014 at 5:53 am

do you have already diversity quotas for bible thumpers in the US?

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