Algorithmic Valuation in the Art Market
Auction house Sotheby's in New York is expanding its use of algorithms in the art market, driven by the work of Kelly Shen, an MIT graduate from the class of 2017. The 'art intelligence' initiative at Sotheby's focuses on processing data to assist in valuation, appraisal, and the management of auction items.
Price Prediction and Catalog Automation
According to MIT Technology Review, Shen directly develops algorithms designed to forecast auction prices for fine art. The algorithmic framework operates by analyzing quantitative market indicators, including collector purchasing trends and artist popularity trajectories over time. Beyond price forecasting, Sotheby's has also deployed algorithmic workflows for artwork classification and cataloging.
Standardizing Subjective Appraisals
Integrating computational technology into art auctions represents an effort to standardize data in a market traditionally driven by individual intuition and the personal expertise of veteran appraisers. However, MIT Technology Review notes that specific details regarding model architecture, forecasting accuracy benchmarks, and the exact proportion of artworks processed fully via algorithms have not been publicly disclosed.