"Simplifying AI: One Algorithm, One Operator, One Data Format"

1. © cortical.io inc. 2017
Semantic Folding Technology
Co-Founder and General Manager
Francisco De Sousa Webber
Simplifying AI
f.webber@cortical.io
One Algorithm - One Data Format - One Operator

2. ©cortical.ioinc.2017
Who is Cortical.io ?
A startup company from Vienna - Austria
We explore & expand
Semantic Folding Theory
We spread & sell Semantic
Folding Technology

3. ©Cortical.io2017
One Algorithm
• By Jeff Hawkins (Silicon Valley, California)
• numenta.com technical implementation & IP
• Processing algorithm of the human brain (neo-cortex)
Hierarchical Temporal Memory Theory
• By Francisco De Sousa Webber (Vienna, Austria)
• cortical.io technical implementation & IP
• Processing language-data like the human brain
Semantic Folding Theory

4. ©cortical.ioinc.2017
One Data Format
“mobile phone” Semantic Fingerprint Generation
Semantic Fingerprint
• is a large, sparse, binary vector
• has a 2D topology of 128x128 locations
• consists of inspectable features
• has a distribution proportional to its
meaning
Sparse Distributed Representation

5. ©cortical.ioinc.2017
Similar meanings look similar
mobile iPhone smartphone
Truck Automobile Car
One Operator

6. ©cortical.ioinc.2017
Step 1: Word Fingerprints
organ
piano
church
liver
Context 3:
church,
altar,
baroque,
architecture,
renaissance
Context 1:
liver, heart,
muscle,
endothelia,
body,
anatomy
Context 2:
piano, guitar,
composer,
baroque,
music, score

7. ©cortical.ioinc.2017
Step 2: Text Fingerprints
organs and pianos are musical instruments
aggregation
+
sparsification
Organs and pianos are
musical instruments

8. ©cortical.ioinc.2017
Semantic Folding Training: Phase1
step 2: PARSINGstep1: IDENTIFICATION
For instance, those who prosecuted and convicted Socrates have left no testament. Historians therefore face the challenge of
reconciling the various evidence from the extant texts in order to attempt an accurate and consistent account of Socrates' life
and work. The result of such an effort is not necessarily realistic, even if consistent.
As for discovering the real-life Socrates, the difficulty is that ancient sources are mostly philosophical or dramatic texts, apart
from Xenophon. There are no straightforward histories, contemporary with Socrates, that dealt with his own time and place. A
corollary of this is that sources that do mention Socrates do not necessarily claim to be historically accurate, and are often
partisan.
To understand Socrates and his thought, one must turn primarily to the works of Plato, whose dialogues are thought the most
informative source about Socrates' life and philosophy, and also Xenophon. These writings are the Sokratikoi logoi, or Socratic
dialogues, which consist of reports of conversations apparently involving Socrates.
Nothing written by Socrates remains extant. As a result, all first-hand information about him and his philosophies depends upon
secondary sources. Furthermore, close comparison between the contents of these sources reveals contradictions, thus creating
concerns about the possibility of knowing in-depth the real Socrates. This issue is known as the Socratic problem, or the
Socratic question.
Through his portrayal in Plato's dialogues, Socrates has become renowned for his contribution to the field of ethics, and it is this
Platonic Socrates who lends his name to the concepts of Socratic irony and the Socratic method, or elenchus. The latter
remains a commonly used tool in a wide range of discussions, and is a type of pedagogy in which a series of questions is
asked not only to draw individual answers, but also to encourage fundamental insight into the issue at hand. Plato's Socrates
also made important and lasting contributions to the field of epistemology, and his ideologies and approach have proven a
strong foundation for much Western philosophy that has followed.
Socrates ( 470/469 – 399 BC) was a classical Greek (Athenian) philosopher credited as one of the founders of Western
philosophy. He is an enigmatic figure known chiefly through the accounts of classical writers, especially the writings of his
students Plato and Xenophon and the plays of his contemporary Aristophanes. Plato's dialogues are among the most
comprehensive accounts of Socrates to survive from antiquity, though it is unclear the degree to which Socrates himself is
"hidden behind his 'best disciple', Plato".
step 3: SLICING step 4: 2D-MAPPING

9. ©cortical.ioinc.2017
For instance, those who prosecuted and convicted Socrates have left no
testament. Historians therefore face the challenge of reconciling the various
evidence from the extant texts in BBBBBBBBorder to attempt an accurate
and consistent account of Socrates' life and work. The result of such an
effort is not necessarily realistic, even if consistent.(117,63)
As for discovering the real-life Socrates, the difficulty is
thfbbbbbbbbbbbbbat ancient sources are mostly philosophical or dramatic
texts, apart from Xenophon. There are no straightforward histories,
contemporary with Socrates, that dealt with his own time and place. A
corollary of this is that sources that do mention Socrates do not necessarily
claim to be historically accurate, and are often partisan.(122,40)
To understand Socrates and his thought, one must turn primarily to the works
of Plato, whose dialogues are thought the most informative source about
Socrates' life and philosophy, and also Xenophon. These writings are the
Sokratikoi logoi, or Socratic dialogues, which consist of reports of
conversations apparently involving Socrates.(102,85)
Nothing written by Socrates remains extant. As a result, all first-hand
information about him and his philosophies depends upon secondary
sources. Furthermore, close comparison between the contents of these
sources reveals contradictions, thus creating concerns about the possibility
of knowing in-depth the real Socrates. This issue is known as the Socratic
problem, or the Socratic question.(23,36)
Through his portrayal in Plato's dialogues, Socrates has become renowned
for his contribution to the field of ethics, and it is this Platonic Socrates who
lends his name to the concepts of Socratic irony and the Socratic method, or
elenchus. The latter remains a commonly used tool in a wide range of
discussions, and is a type of pedagogy in which a series of questions is
asked not only to draw individual answers, but also to encourage
fundamental insight into the issue at hand. Plato's Socrates also made
important and lasting contributions to the field of epistemology, and his
ideologies and approach have proven a strong foundation for much Western
philosophy that has followed.(110,45)
WORD LIST
SEMANTIC FINGERPRINT DB
…
Socrates
classical
Greek
Athenian
philosopher
credited
as
one
of
the
founders
Western
philosophy
He
is
an
enigmatic
.
.
.
Aristophanes
Plato's
dialogues
are
among
most
comprehensive
accounts
…
Socrates classical the Athenian philosopher is
step 5: Fingerprint Generation
Socrates ( 470/469 – 399 BC) was a classical Greek (Athenian) philosopher
credited as one of the founders of Western philosophy. He is an enigmatic
figure known chiefly through the accounts of classical writers, especially the
writings of his students Plato and Xenophon and the plays of his
contemporary Aristophanes. Plato's dialogues are among the most
comprehensive accounts of Socrates to survive from antiquity, though it is
unclear the degree to which Socrates himself is "hidden behind his 'best
disciple', Plato”.(17,83)
CONTEXT LOOKUP
Semantic Folding Training: Phase2

10. ©cortical.ioinc.2017
What are Semantic Fingerprints for?
Contexts:
investors,
liquidity,
shareholders
, risks,
regulated,
corporate,
managers
“done deal” “signed contract”Overlap > 30%
“star trek” “signed contract”Overlap < 5%
similar meaning
different meaning

11. ©Cortical.io2017
NLU Primitives: Disambiguation
organ
most similar Term
liver
organ - liver piano
most similar Term
organ - liver - piano
most similar Term
church

12. ©Cortical.io2017
NLU Primitives: Classification
semantic space trained on “Zoology”
mammal
AND
mammals
AND
mammalian
cat dog elephant
ant frog chicken
Semantic filter FP mammal class
non - mammal class

13. ©Cortical.io2017
NLU Primitives: Search
similarity engineexample
document
most similar documents ordered along
the users information need
query document index result set ranking

14. ©Cortical.io2017
NLU Primitives: Keywords
Socrates 470/469 – 399 BC was a classical Greek (Athenian)
philosopher credited as one of the founders of Western
philosophy. He is an enigmatic figure known chiefly through the
accounts of classical writers, especially the writings of his
students Plato and Xenophon and the plays of his
contemporary Aristophanes. Plato's dialogues are among the
most comprehensive accounts of Socrates to survive from
antiquity, though it is unclear the degree to which Socrates
himself is hidden behind his best disciple, Plato.
[
"plato",
"socrates",
"philosopher",
"aristophanes",
"antiquity",
"writings",
"xenophon",
"dialogues",
"disciple",
"philosophy"
]
Extract Keywords
aggregation
maximise for similarity

15. ©Cortical.io2017
Snoring
Definition
Snoring is a sound generated during sleep by vibration of loose tissue in the upper airway.
Description
Snoring is one symptom of a group of disorders known as sleep-disordered breathing. It occurs when the soft palate, uvula, tongue, tonsils, and/or muscles in the back of the throat rub against each
other and generate a vibrating sound during sleep. Twenty percent of all adults are chronic snorers, and 45% of normal adults snore occasionally. As people grow older, their chance of snoring
increases. Approximately half of all individuals over 60 snore regularly. In some cases, snoring is a symptom of a more serious disorder called obstructive sleep apnea (OSA). OSA occurs when part of
the airway is closed off (usually at the back of the throat) while a person is trying to inhale during sleep, and breathing stops for more than 10 seconds before resuming again. These breathless
episodes can occur as many as several hundred times a night. People with OSA almost always snore heavily, because the same narrowing of the airway that causes snoring can also cause OSA.
Snoring may actually contribute to OSA as well, because the vibration of the throat tissues that occurs in snoring can cause the tissue to swell. Snoring is associated with physical problems as well as
social stress. People who do not suffer from OSA may be diagnosed with socially unacceptable snoring (SUS), which refers to snoring that is loud enough to prevent the sleepers bed partner or
roommate from sleeping. SUS is a factor in the breakup of some marriages and other long-term relationships. Moreover, a study published in 2002 indicates that people who snore are at increased risk
of developing type 2 diabetes. Snoring appears to be a risk factor that is independent of body weight or a family history of diabetes.
Causes and symptoms
There are several major causes of snoring, including: Excessively relaxed throat muscles. Alcohol, drugs, and sedatives can cause the throat muscles to become lax, and/or the tongue to pull back into
the airway. Large uvula. The piece of tissue that hangs from the back of the throat is called the uvula. Individuals with a large or longer than average uvula can suffer from snoring when the uvula
vibrates in the airway. Large tonsils and/or adenoids. The tonsils (tissue at the back of either side of the throat) can also vibrate if they are larger than normal, as can the adenoids. Excessive weight.
Overweight people are more likely to snore. Their snoring is frequently caused by the extra throat and neck tissue they are carrying around. Nasal congestion. Colds and allergies can plug the nose,
creating a vacuum in the throat that results in snoring as airflow increases. Cysts and tumors. Cysts and/or tumors of the throat can trigger snoring. Structural problems of the nose. A deviated septum
or other nasal problems can also cause snoring.
Diagnosis
A patient interview, and possibly an interview with the patients spouse or anyone else in the house? hold who has witnessed the snoring, is usually enough for a diagnosis of snoring. A medical history
that includes questions about alcohol or tranquilizer use; past ear, nose, and throat problems; and the pattern and degree of snoring will be completed, and a physical examination will be performed to
determine the cause of the problem. This will typically include examination of the throat to look for narrowing, obstruction, or malformations. In some cases the patient may be referred to a dentist or
orthodontist for evaluation of the jaw structure and dentition. In addition, the patient may be examined by sleep endoscopy. In this procedure, the patient is given a medication (midazolam) to induce
sleep. His or her throat and nasal passages are then examined with a flexible laryngoscope. In many cases, sleep endoscopy reveals obstructions that are not apparent during a standard physical
examination of the throat. Many patients are found to have obstructions at more than one level in their breathing passages. If the snoring is suspected to be a symptom of a more serious disorder such
as obstructive sleep apnea, the patient will require further testing. This testing is called a polysomnography study, and is conducted during an overnight stay in a specialized sleep laboratory. The
polysomnography study includes measurements of heart rate, airflow at the mouth and nose, respiratory effort, sleep stage (light sleep, deep sleep, dream sleep, etc.), and oxygen level in the blood.
Treatment
There are a number of remedies for snoring, but few are proven clinically effective. Popular treatments include: Mechanical devices. Many splints, braces, and other devices are available which reposition the nose, jaw, and/or mouth in order to clear
the airways. Other devices are designed to wake an individual when snoring occurs. Patients should consult a dentist or orthodontist about these devices, as most require custom fitting. In addition, persons with certain types of gum disease or dental
problems should not be fitted with oral appliances to stop snoring. Nasal strips. Nasal strips that attach like an adhesive bandage to the bridge of the nose are available at most drugstores, and can help stop snoring in some individuals by opening the
nasal passages. Continuous positive airway pressure (CPAP). Some chronic snorers find relief by sleeping with a nasal mask that provides air pressure to the throat. Decongestants. Snoring caused by nasal congestion may be successfully treated
with decongestants. Some effective herbal remedies which clear the nasal passages include golden rod (Solidago virgauria) and golden seal (Hydrastis canadensis). Steam inhalation of essential oils of eucalyptus blue gum (Eucalyptus globulus) or
peppermint (Mentha x piperata) can also relieve congestion. Weight loss. Snoring thought to be caused by exces? sive weight may be curtailed by a sensible weight loss and exercise program. Sleep position. Snoring usually worsens when an
individual sleeps on his or her back, so sleeping on ones side may alleviate the problem. Those who have difficulty staying in a side sleeping position may find sleeping with pillows behind them helps them maintain the position longer. Other devices
include a new vest designed to prevent the sleeper from lying on his or her back. Bed adjustments. For some people, raising the head of the bed solves their snoring problem. A slight incline can prevent the tongue from retracting into the back of the
throat. Bricks, wooden blocks, or specially designed wedges can be used to elevate the head of the bed approximately 4-6 in. Alternative treatments that have been reported to be effective for patients whose snoring is caused by colds or allergies
include acupuncture, homeopathy, and aromatherapy treatments. Aromatherapy treatments for snoring typically make use of marjoram oil, which is thought to be particularly effective in clearing the nasal passages.
Allopathic treatment
Several surgical procedures are available for treat? ing chronic snoring. These include: Uvulopalathopharyngoplasty (UPPP), a surgical procedure which involves removing excess throat tissues (e.g., tonsils, parts of the soft palate) to expand the
airway. The success rate of UPPP is about 53% after five years. The success of the surgery is related to the patients body mass before the operation. Laser-assisted uvulopalatoplasty (LAUP) uses a surgical laser to remove part of the uvula and
palate. Its chief drawback is a period of discomfort that lasts for about a week following surgery. Palatal stiffening is a minimally invasive surgical technique in which a laser or a cauterizer is used to produce scar tissue in the soft palate in order to stop
the vibrations that produce snoring. Radiofrequency ablation is another technique that uses scarring to shrink the uvula and/or soft palate. A needle electrode is used to shrink and scar the mouth and throat tissues. Like other surgical treatments for
snoring, radiofrequency ablation has a relapse rate over the long term. One of its advantages, however, is that it is less painful than other surgical treatments.
Prevention
Adults with a history of snoring may be able to prevent snoring episodes with the following measures: Avoid alcohol and sedatives before bedtime. Remove allergens from the bedroom. Use a decongestant before bed. Sleep on the side of the body,
not the back.
NLU Primitives: Slicing
slicing
point

16. ©Cortical.io2017
Platform Integration

17. ©cortical.ioinc.2017
Semantic Folding Tech-Stack
Retina Engine
Semantic
Space
compare
compute
classify
keyword
context
Semantic Classification
Semantic Filter
Semantic Expression
Semantic Context
Semantic Similarity
Semantic Search
Fingerprint
Index
Search
Profile
Similar
cluster
Semantic Search
Find Similar
Semantic Clustering
Semantic NER
Extraction
Models
NEE
Relation
SME-FB
Semantic
Knowledge Graph
Named Entities
NE Relations
SME Correction
documents
email
social media
chat
web
news
catalogs
contracts
Payload Data
References Textbooks Forums & Comments
Training Data

18. ©cortical.ioinc.2017
Business Applications
• Process Automation — SWIFT Transactions (Retina Engine)
• Compliance Monitoring — Email, Chat Communication (Retina Engine)
• Investment Signals — Generated from Text, News (Retina Engine)
• Know Your Customer — Mine Public Information (Semantic Search)
• Customer Service — Callcenter Agent Assistance (Semantic Search)
• Voice of the Customer — Understand Customer Intend (Retina Engine)
• Contract Intelligence — Extract Business Information (Semantic NER)

19. ©cortical.ioinc.2017
Email Compliance Monitoring
q Existing email surveillance system
• High number of false positives -> large amount of manual review
• Misses emails where keywords don’t match
• Does not scale (too slow)
q Cortical email surveillance engine
• Created custom semantic space (Retina) for finance
q Advantages
• Able to uncover interesting emails that cannot be found with
keywords
• Reduced false positives while maintaining high recall
• High speed (real-time) – can check 100% of emails
• Dynamically updating (keeps up with jargon)
Semantic
fingerprints
resolve
vocabulary
mismatch
fraud crime crimes corruption
Closing the Vocabulary Gap

20. ©cortical.ioinc.2017
Email Compliance Monitoring
Unexpected or sudden topic jumps are detected
Ongoing e-mail conversation Time >
Henyep Investment Bank Ltd's strategy is to provide it's clients with one of the most
comprehensive product offerings currently available in the market. The Henyep Group's in-house
product development and research experts are continuously improving our offering to suit the
needs of the investors' market.
Unlike forex only service providers, Henyep Investment Bank Ltd allows it's clients to gain
exposure to multiple capital markets, thus allowing investors to develop a diverse portfolio from a
single integrated account.
Except for our foreign exchange offerings all other products are structured as Contracts for
Difference (CFDs)
A CFD is a tradable financial derivative instrument that mirrors the movements of the asset
underlying it. It allows for profits or losses to be realized when the underlying asset moves in
relation to the position taken, but the actual underlying asset is never owned. Essentially, it is a
contract between the client and the firm.
All our products offer deep liquidity, margin trading, and direct execution.
The amount of cash collateral contributed by a client as a percentage of the current market value
of the securities held in a margin account.
View Product Specifications
Under the tri-partite customer agreement, all Henyep Investment Bank clients are also clients of
HY Investment*. Accordingly, all products offered for trading are published and updated by HY
Investment.
Unlike forex only service providers, Henyep Investment Bank Ltd allows it's clients to gain
exposure to multiple capital markets, thus allowing investors to develop a diverse portfolio from
a single integrated account.
Except for our foreign exchange offerings all other products are structured as Contracts for
Difference (CFDs)
Contracts for Differences (CFDs) Explained in Brief
A CFD is a tradable financial derivative instrument that mirrors the movements of the asset
underlying it. It allows for profits or losses to be realized when the underlying asset moves in
or losses to be realized when the underlying asset moves in relation to the position taken, but
the actual underlying asset is never owned. Essentially, it is a contract between the client and
the firm.
All our products offer deep liquidity, margin trading, and direct execution.
Margin Trading Explained in Brief
The amount of cash collateral contributed by a client as a percentage of the current market
value of the securities held in a margin account.
View Product Specifications
Appearance of unexpected
topic clusters
“…buying Seafood needs fast decisions…”
Buyer Buyer
Seller Seller Seller
Dynamic Topic Pattern Analysis

21. ©cortical.ioinc.2017
Customer Service Assistance
Question: „How can I put some money on my bank using my computer ?“
Possible Answer: Automated Clearing House (ACH) Payment
Translational Semantics
Common
Language
Banking
Jargon
Product
Jargon
+ +
Common Language
Question
Common Language
Question
Banking/Product
Jargon Result-Set
Explanation
Pointing to References
Semantic
Search
Call-Center
Agent
Customer
Service Experience Service Quality

22. ©cortical.ioinc.2017
Voice of the Customer
Classifiers
The classifiers are Semantic Fingerprints
of sample sentences from emails, texting,
etc. and/or ”bag-of-words” (several words)
that describe the intent.
Texting
• quite short
• abbreviations
• slang
Emails
• lots of content
• more formal
language
Semantic Fingerprint
of email
CRM Notes
• more formal
language
• abbreviations
Call Center
Transcripts
• casual language
Primary Intent – three types:
1. Complaint
2. Interest in a product
3. Problem – looking for solution
Enter Results into database
or attach as metadata
Determine “Best Next Action Step”
Specific Intent – examples for Complaint:
• ATM not working
• Account suspended
• Poor Service
More Details – examples:
• Employee name who gave poor service
• Account number
• Want to speak to supervisor
Structured data
Intend Extraction
Customer Intend Analysis

23. ©cortical.ioinc.2017
Voice of the Customer
Intend Extraction
Customer Intend Analysis
Dear Sir or Madam,
I am wri/ng to you because my account was
suspended for no reason. This is the second
/me this has happened. The first /me I was
overdrawn, but this /me my account was in
good standing.
I am very upset and would like this situa/on
corrected immediately.
Best,
Joe Bloggs
Customer Email
Fingerprint of
Email
Classifiers:
Fingerprints of
Primery Intent
Complaint
Interest in a
Product
Problem –
looking for
solution
Classifiers:
Fingerprints of
Specific Intent
Account
Suspended
Poor Service
ATM not
working
Classifiers:
Fingerprints of
More Details
Employee
Name
Account
Number
Want to speak
to Supervisor

24. ©cortical.ioinc.2017
Contract Intelligence
classification of negative covenants
Credit Agreement
Fingerprint of
Negative
Covenant
Fingerprints of the most
common Negative Covenants
Negative Covenant #1
Negative Covenant #2
Negative Covenant N
Negative Covenant #3
Negative Covenant #4
Credit Risk Analysis

25. ©cortical.ioinc.2017
Contract Intelligence
„… five days after Christmas …“
(opt: number) (time unit) (dictionary) (named Calendar Item )
day
week
month
Easter
New
Year
„before“
„after“
„following“ Birthday
…
One Example — Hundreds of exact rules
Semantic Rule Generation
„5“
„2“
„1“

26. ©cortical.ioinc.2017
Contract Intelligence
CI
Learning
Engine
SME
Lease
Agreements
Result Data
“Define Extraction Goals”
... N
“Verify Results”1
2
3
4
Credit
Agreements
! Unsupervised learning phase. The
system analyzes:
• The vocabulary
• The structure
• The relation of items appearing in
the contracts
! Start with first extractions – done
with minimal input
Iterative process with
multiple cycles to achieve
increasing accuracy
SMEs verify the results after each cycle
very close interactive work with SMEs
Workflow Overview

27. ©cortical.ioinc.2017
Contract Intelligence
Relation Extraction

28. ©cortical.ioinc.2017
Semantic Folding Advantages
•Simplicity — One Algorithm, One Operator, One Data Format
•Analogy — Normalized Representation, Bitwise Similarity
•Modelability — Unsupervised Semantic Model Generation
•Efficiency — Small Amounts of Reference Data
•Inspectability — Refinement, Debugging, Verification
•Compositionality — Words, Sentences, Paragraphs, Documents
•Scaleability — One Semantic Model Many Use-Cases
•Replicability — Same Use-Case in new Domain
•Robustness — „Graceful failing"

29. ©cortical.ioinc.2017
website: cortical.io
contact info@cortical.io
twitter: http://twitter.com/cortical_io
video: https://www.youtube.com/watch?v=g3ZxJokDpds
demos: http://www.cortical.io/demos.html
API: http://api.cortical.io
Numenta: http://numenta.com