From Avatars to Advertising

This article in the LA Times (free registration required) reveals that companies are using artifical agents called “digital buddies” to pitch their products on Instant Messaging services. These bots are programmed to make friends and small talk, and they’re eerily good at it. They take cues from questions and answers, searching databases for conversational fodder, and then urge people to buy Ford trucks, check out the eBay auction site and take in “The Lord of the Rings.” Most buddies are programmed with personalities that appeal to their target audiences. For example, ELLEgirlBuddy, the Internet ego of teen magazine ELLEgirl, is a redheaded 16-year-old who likes kickboxing, the color periwinkle and French class. Though most users are aware they are communicating with a computer, some engage in deep conversation with these buddies, talking to them as they would to friends. Many of the companies are using technology from ActiveBuddy, which offers the BuddyScript Server and Software Development Kit for building and deploying interactive agents.

XML Standard for Business Reporting / Accounting

TechWeb reports in this ARTICLE on Edgar Online‘s support of XBRL, an XML standard for companies to publish and distribute financial reports.

Such a standard would be a strong movement in the direction of efficient valuation and pricing of fundamental business characteristics. Arbitrage pricing theory could be applied using each XBRL tag as a factor, resulting in the ability to calculate values and sensitivities for stock prices based on changes to the underlying fundamentals in detail.

Copyleft 101

NewScientist has a very good survey article regarding copyleft. They discuss the legal implications of waiving the exclusivity rights, as well as the philosophical differences in vision regarding the commercialization of intellectual properties.

Internet/Television Convergence: Program Tivo over AOL

This article says that AOL and Tivo are partnering to offer services that call for San Jose, Calif.-based TiVo to integrate AOL features like instant messaging (IM) and live chat into its new TiVo Series2 DVRs, and both companies are working to provide AOL members who are also TiVo subscribers the ability to schedule recordings on their TiVo from the AOL service.

TiVo already supported web controls: http://tivo.lightn.org/, but it seems that simplifying this software and integrating with AOL would lead to a higher rate of adoption.

This appears to me as a signal that AOl and TiVo are coordinating their efforts to attack Microsoft’s convergence strategy. Personally, I was hoping that AOL would work with Sony for this instead. Microsoft has pulled their UltimateTV business, and is focussing instead on XBox to get into your homes. AOL should recognize this change in strategy and team up with Sony’s Playstation division. Web services as we know them on the desktop and web services as they will be applied through home appliances such as the playstation will create a large amount of integration value – exactly the strategy that Microsoft used to take over your desktop. If Microsoft succeeds at home, too, then we are all doomed. 🙂

AI and Program Trading

NewScientist published a good article describing neural network program trading systems.

An extension allows for a large number of competing signalling systems. One such signalling system may be an improvement on traditional cointegration techniques.