European aviation disasters of the 21st century: Germanwings Airbus A320
A black box model, or more specifically a black box financial model, is a catch-all term used to describe a computer program designed to transform various data into useful investment strategies. In science, computing, and engineering, a black box is a device, system, or object which can be viewed in terms of its inputs and outputs, without any knowledge of its internal workings. The opposite of a black box is a system where the inner components or logic are available for inspection, which is most commonly referred to as a white box which can also come be called a "clear box" or a "glass box". Within financial markets, the rise of black box methods possesses a number of risk management concerns. Most notably, the additional systematic risk black box trading strategies contribute. Investors using black box methods conceal their true risk under the guise of proprietary technology , leaving regulators, and investors without a true picture of operations which is needed to assess risk accurately. A black box model is not inherently risky per se, but it does raise some interesting governance or ethical questions.
In science, computing, and engineering, a black box is a device, system or object which can be viewed in terms of its inputs and outputs or transfer characteristics , without any knowledge of its internal workings. Its implementation is "opaque" black. Almost anything might be referred to as a black box: a transistor , an engine , an algorithm , the human brain , an institution or government. The usual representation of this black box system is a data flow diagram centered in the box. The opposite of a black box is a system where the inner components or logic are available for inspection, which is most commonly referred to as a white box sometimes also known as a "clear box" or a "glass box" . The modern meaning of the term "black box" seems to have entered the English language around In electronic circuit theory the process of network synthesis from transfer functions , which led to electronic circuits being regarded as "black boxes" characterized by their response to signals applied to their ports , can be traced to Wilhelm Cauer who published his ideas in their most developed form in In cybernetics , a full treatment was given by Ross Ashby in Many other engineers, scientists and epistemologists, such as Mario Bunge ,  used and perfected the black box theory in the s. In systems theory , the black box is an abstraction representing a class of concrete open system which can be viewed solely in terms of its stimuli inputs and output reactions :.
When Jason Matheny joined the U. What if the artificial intelligence AI model told defense analysts that North Korea was getting ready to bomb Alaska? But if consumers are to, say, entrust their safety to AI-driven vehicles or their health to AI-assisted medical care , they will want to know how these systems make critical decisions. A growing number of researchers are taking steps to address this concern as AI begins to transform entire industries, including transportation, medicine, manufacturing and defense. A full-fledged fix is still years away but a number of promising plans are emerging. Some researchers test AI systems like scientists test lab rats, tinkering with the inputs to see how they affect behavior in hopes of illuminating the decision-making process. The approaches may vary but their goal is the same: to ensure that our machines do not evolve too far beyond our ability to understand them. Loosely modeled on the human brain, these complex computing systems are the not-so-secret sauce of the current AI boom. They also enable machines to identify images, predict diseases and beat humans at the television quiz show, Jeopardy! If that prediction is wrong, a neural net will then tweak the links between nodes, steering the system closer to the right result.