Can Artificial Intelligence change the art market?


According to Deloitte’s report, the art and collectibles market is in a growth phase in 2018. Artificial Intelligence (AI) officially entered the market with the now well-known “Portrait of Edmond Belamy” signed “maxD Ex[log D(x)] +Ez[log(1-D(G(z))]” sold by Christie’s New York for $432,000, which corresponds to 43 times the estimated price.

But AI is not an efficient tool only to create art. Some companies and startup have proved that it is also interesting for fraud prevention, recommendation of works and investments.

Investment in art has always been considered very selective and dedicated to the wealthiest people who, thanks to the intermediation work of specialists, have used art pieces as a safe haven (over the long term, the value of artistic assets tends to increase) when the traditional investment market did not give confident expectations.

The main problems of this market have always been, therefore, barriers to entry due to its complexity, subjectivity and difficult return-on-investment which often occurs, several decades after acquisition.

In this context, a strong emphasis is placed on information. Investors need to know the quality of the works and their speculative potential. At the moment, these pieces of information are accessible only to specialists.4

Artificial Intelligence at the service of finance

In order to respond to the needs of the art and collectible market, Kellify has created a technology that allows investors to know which works of a collection or auction, have the best chances to get a short-term return on investment.

“At Kellify, we combine the outstanding performance of a new FinTech approach with transparency and impact on the real economy.” – Francesco Magagnini CEO of Kellify S.p.A

Kellify’s algorithms based on machine learning and deep learning methods have the ability to determine the rational, irrational and emotional characteristics that favor the liquidity of an art work. This method provides crucial information to investors in order to take better decisions and to make more reliable investments.

The algorithms are based on the real-time analysis of billons of historical data, estimations provided by financial experts and results of past auctions which allow more precise results, a process that would not be possible without the help of AI. This Quant-as-a-service approach (uses Big Data and AI as a service for finance), make it possible to eliminate the emotional aspect of human minds and replace it with the transparency and safety of mathematics.

The innovation of this approach lies in its ability to exploit the predictive capacity of every single subtle feature and pair it with the investors/collectors behaviors.

Kellify doesn’t target art professionals nor passionate people but simply anyone undertaking investment or valuation decision who desire to have more precise values, allowing them to take the best decisions making investments on the more liquid assets.

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