Don’t Use Bandits. Multi-armed bandit testing is very popular these days, but it’s critically important that it be applied correctly. Chris Stucchio does a great job of summing up some of the caveats that needs to be kept in mind when applying bandit algorithms.

Jeff Carter postulates that large banks can and should be replaced by smaller companies and give he gives several examples of startups that are doing finance much better than most of the big players.

The best computer vision algorithms can classify objects in real world imagery with impressively high accuracy. But what if you were to feed them carefully crafted garbage? Researchers used evolutionary algorithms to concoct a set of abstract images that tricked the best computers. (Read the summary at KDnuggets if you don’t have time for the paper.)

Happy Friday!