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Artificial Intelligence

The usual belief is that automation is mainly going to affect blue-collared semi-skilled or unskilled jobs and not those involving creativity. However, this precinct is being challenged by a latest turn of events at Indian e-commerce firm Myntra. Here, robots are being used to set patterns on clothing depending on customer tastes. If such intrusion by robots is possible in the design space, the jobs of merchandize planners and buyers will be most affected. Via an enormous data warehousing operation, robots can deduce what designs were snapped up previous month, so which are likely to over the next few. Algorithms have already been designed to this end. The professional in charge of business analytics at M&M though declares that none of this is to replace humans, but simply to improve supply-chain decision-making. Asset management too would hire increasing number of financial advisers even though the art of investing itself is getting automated.

Source:https://www.nytimes.com/2018/07/07/business/economy/algorithm-fashion-jobs.html

Uploaded Date:01 September 2018

One industry where robots are increasingly playing a key role is the food and restaurant one. In fact, a report submitted by the McKinsey Global Institute (MGI) puts this industry as the fourth most automatable. No wonder, it has most thrived in the San Francisco Bay Area. However, not all are happy. Marketing research conducted by Open Table has confirmed that a staggering seventy percent of respondents are not happy with the use of robots in the restaurant industry. Those aged below 34 were bit more kind but still had a disapproval rate of 54%. One sub-area within this industry though where the satisfaction levels is food delivery. The Berkeley Robot for example developed by Kiwi Campus is already in it, having partnered with Door Dash to maximize its reach.

Source:https://www.bizjournals.com/sanfrancisco/news/2018/08/13/robots-restaurant-dining-sf-eatsa-doordash-cafe-x.html

Uploaded Date:01 September 2018

McKinsey has developed a data visualization tool to understand the true impact as well as overall potential for Artificial Intelligence (AI) and business analytics. This has made use of four-hundred use cases across nine functional areas and nineteen industries. Due to the cross-functional nature of this framework developed, an analyst can also study the findings from one sector could be applied in another. Some of the industries used in this are- retail, travel, logistics, automotive, insurance, banking, healthcare, high-tech, chemicals media, telecom, agriculture, oil and aerospace. McKinsey has a rich trove of data warehousing through its own research as well as third party analysis, which it has made use of in developing this. Some of the business functions that can be assessed here are- customer acquisition, customer service, pricing, sales and predictive analytics.

Source:https://www.mckinsey.com/featured-insights/artificial-intelligence/visualizing-the-uses-and-potential-impact-of-ai-and-other-analytics?cid=other-soc-twi-mgi-mgi-oth-1807

Uploaded Date:25 August 2018

Tesla built a factory in California which was dubbed as the first ever which was to be completely devoid of humans. However, once production began, it was soon realized that the numbers fell well short of that which was desired. So, the management then took the decision to reintroduce people. In this there is a lesson, that even in the most advanced AI-driven businesses, there is no substitute for genuine people power. Just as the internet brought in newer jobs such as SEO engineer or web designer, the age of digitization too is ushering in new roles. Tesla itself has advertised for or already hired professionals dubbed as deep learning scientists, robot engineers, prediction engineers and battery-algorithm engineers. The talent recruitment systems of companies will need to be devised in such a way now to get people with these specific skill sets. Companies will also need to invest heavily on corporate training to reskill or retrain existing staff. Elon Musk, the founder of Tesla has now admitted how excess automation was a mistake. Errors have now been reduced substantially since people got added to the mix.

Source:https://hbr.org/2018/08/why-even-ai-powered-factories-will-have-jobs-for-humans?utm_source=twitter&utm_campaign=hbr&utm_medium=social

Uploaded Date:25 August 2018

Artificial Intelligence (AI) has long existed, but more so in the realm of science fiction. Now it is finally proving true to the hype by turning mainstream. A study by management consulting giant BCG has revealed that AI’s potential in the banking sector in particular is so large that it could impact business by between 150 and 200 billion dollars. However, the challenge remains in deploying AI at scale known as AI Paradox. It is easier still to launch ground-breaking innovations that using the tries-and-tested tools for mass adoption. The main weapon for using AI in mainstream operations is big data. Ballooning complexities though arise in its usage. To systematically use data, a certain playbook has been suggested by BCG. Here data, processing power and action are seen as the building blocks. One needs to prioritize between the value to be generated and the speed of execution. One must realize that merely by amassing enormous troves of data, one does not instantly jump to be an AI leader. Instead its proper usage needs to be known. Being agile and fast are essential, but they will not bring any additional capabilities as this is the minimum all are supposed to adopt. So, creating the right infrastructure matters here.

Source:https://www.bcg.com/en-us/publications/2018/big-leap-toward-ai-scale.aspx

Uploaded Date:25 August 2018

The role of Artificial Intelligence (AI) now extends to all business functions, but in two of them the role is particularly high. The first one of them is marketing and sales where AI impacts business worth US$ 2.6 trillion. The other one is supply chain management worth two trillion. Other functions such as risk, HR, product development, finance, IT and service operations have a much smaller pie as of now according to business intelligence provided by the McKinsey Global Institute.  One industry is particular that is showing much promise for AI usage in marketing is retail which is already worth five-hundred billion dollars in terms of AI usage. Another industry with the same overall value is that of consumer-packaged goods. Banking is another to keep an eye on with increased margins.

Source:https://www.mckinsey.com/featured-insights/artificial-intelligence/five-fifty-real-world-ai?cid=fivefifty-soc-twi-mgi-mgi-oth-1806&kui=1EJ9eNZ-MV-uuDAyc2-RSA

Uploaded Date:25 August 2018

While Artificial Intelligence (AI) already has a massive footprint in several tech-based and routine jobs, its role in the creative functions was disputed, in fact derided by industry experts. But now that perception could change thanks to changes such as the “Daddy’s Car” pop song in Japan where AI composed the harmony and melody. The human merely mixed the song plus wrote down the lyrics. Even film studios are using business analytics to shape their marketing campaigns suing real-time feedback. A Creative Intelligence Matrix has been created by PwC’s analytics research wing. On the Y-axis, are the factors- consumer innovation and workflow optimization. On the X-axis, there are two factors- fully automated and human works with AI. The first quadrant is fully automated consumer innovation. This includes AI generated music, Facebook timeline movie maker, Google Photos movie assistant and face recognition. The next one with high customer innovation but human involvement in the AI tracks athletic performance, allows for content curation through Spotify and works with digital assistants such as Alexa. The third quadrant is Freedom from Repetitive Tasks. This is ideal for digital marketing as it includes sports summaries, credit control, content editing, customer service process automation, newsletter curation, content tagging and film scoring. The final quadrant deals with better and more creative decisions being taken.

Source:https://www.strategy-business.com/article/AI-Is-Already-Entertaining-You?gko=dc252

Uploaded Date:18 August 2018

The all-conquering Artificial Intelligence (AI) which is self-driven and can solve complex problems is still some years away. So, business leaders would be well-advised to not run after latest AI fads but to instead apply a more holistic Agile AI process. This will allow for flexibility within operations. It is a five-step process beginning with setting the business context and purpose right. The data to be used is of utmost importance. Once the right data warehousing is done, it needs to be engineered towards the desired direction. A proper model needs to then be developed where this AI may be processed using business analytics capabilities. Once designed, without any further ado, it needs to be launched in the market as an experiment. The task will not be completed till it sees some level of adoption.

Source:http://www.bain.com/publications/articles/the-cure-for-ai-fever.aspx

Uploaded Date:16 August 2018

Artificial Intelligence (AI) is not an incremental but a standout technological transformation happening to business and society alike. A new study has been anchored by the McKinsey Global Institute to fully understand the extent of this. First of all, AI is being used to map the problem types to deduce possible solutions. Reinforcement learning for example is one of the hottest trends being followed in corporate training with the aid of AI and neural networks. The potential value of AI is way more than was earlier thought. It is now an integral part of several industries such as pharma, aerospace, healthcare, retail, automotive, travel, transport, banking, media, CPGs, agriculture, aerospace and defense. In each of these industries, business intelligence is being derived from use cases. Analytics voraciously feeds on data which gets generated for predictive maintenance. AI is also used extensively for personalization and customer service management. It can help logistics to reduce costs through real-time forecasting. Labeling and obtaining data is still a challenging task, forcing a lot of companies to forego their AI plans. Decisions made are also sometime difficult to explain to people in spite of hard data-driven evidence being available. There is also the risk in bias in algorithms and sources of data which need to be corrected before one sets out.

Source:https://www.mckinsey.com/featured-insights/artificial-intelligence/notes-from-the-ai-frontier-applications-and-value-of-deep-learning

Uploaded Date:10 July 2018

The founder and CEO of Sinovation Ventures which is a technology venture investment fir from China, recently described Artificial Intelligence (AI) as having the capacity to transform industries companies and even nations. The first major impact of AI is the huge quantities of data warehousing currently taking place in all companies. This is providing them with usage and behavioral insights like never before as they crunch the data to derive coherent business intelligence. Sensors are further expanding the capture of such data. Robots and autonomous vehicles are disrupting several existing industries. Amazon’s Echo used in Snapchat is an example of such sensors disrupting the way we work. The trust in algorithms need not be complete as shown through the latest crash of an autonomous vehicle of Uber. Accident rates for such cars are still lower than human errors. Similarly, air travel is one area which has become much smoother, with far fewer errors than previously. Most of AI profits from a general positive view and sense of trust. But sometimes this trust can get manipulated, with even Facebook claiming that greater regulation is needed. Unlike other industries where a pyramid structure exists, in AI or the digital world in general, a winner-takes-all trend pervades. AI will even impact nations’ competitiveness. US for example leverages its digital giants such as Facebook, Google and Microsoft while China has We Chat. Technology and the resultant economics have made the world a more level playing field for different nations.

Source:https://www.bcg.com/publications/2018/artificial-intelligence-will-reshape-companies-industries-nations-interview-kai-fu-lee.aspx?linkId=51006485

Uploaded Date:13 June 2018

Several studies made on the use of Artificial Intelligence (AI) have been collated together to present a picture of trends that will be popular in 2018. According to a Gartner study in particular, the integration of AI with web and mobile apps will be on the rise. This inturn will generate even more humongous quantities of data, leading to more accurate business analytics to be performed. The number of chatbots in operation will surge. AI will increasingly be paired with the Internet-of-Things (IoT) and other intelligent devices. Cameras for instance will now operate as fitness trackers cum smart cameras. Medical research, diagnosis and treatment will be further aided using AI-based techniques. At present, AI impacts software more, but increasingly it will have an impact on hardware usage. Intel’s Nervana Neural Network Processor suite of chips for example is based around the same. AI will have a major impact on jobs and the subsequent talent recruitment as testified by Forrester study that claims that 7% of existing jobs are to be replaced. More startups which use this technology deftly will take on the digital giants such as Google, Microsoft, Apple and Amazon or will get acquired for hefty sums by one of these.

Source:https://becominghuman.ai/7-artificial-intelligence-trends-that-will-rule-2018-1ace8a006518

Uploaded Date:07 June 2018

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