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Artificial Intelligence

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

While it is a foregone conclusion that smart machines, digitization and artificial intelligence are reimagining several industries, in order to get a proper grip on the numbers, a study was launched by business consulting leader Accenture. Titled as Accenture 2017 Process Reimagined Survey, it studied thirteen different industries. Perhaps surprisingly, it was healthcare that emerged on top in process and data, tied with mining and minerals and followed by retail and telecom. More than half the healthcare firms surveyed responded positively to using business analytics to gauge speed and performance indicators. About two-fifths of US firms confess to using the machine learning in business processes and a similar percentage uses it in human-machine work relationships. About two-thirds of respondents even claimed that revenues rose by up to a fifth due to this. More than ninety percent feel that machine learning has helped tap hidden value in business transactions.

Source:https://www.accenture.com/us-en/insights/health/healthcare-walking-ai-talk?c=psv_fy18hpshealthcatwitter_10256262&n=smc_0418

Uploaded Date: 30 May 2018

Artificial Intelligence (AI) has long disappointed in its actual business implications in spite of the enormous potential inherent from day one. Now, finally it is emerging out of its own shadow by providing genuine business value. Algorithms have now cracked human speech patterns and can even recognize objects or optical patterns. Three major events brought out AI’s success to the wider public, beginning with chess world champion Garry Kasparov’s loss to the IMB-developed computer- Deep Blue. IBM’s Watson and Google’s self-driving cars were the other two. AI has shifted the traditional notions of competitive advantage by creating massive value out data warehousing, as this data is further used by digital giants such as Google, Uber and Facebook to gain business advantages. AI is also providing in-depth customer access through this data, providing cutting-edge business intelligence on user requirements. Capabilities have also jumped up accordingly as AI can now process human language. Any AI implementation into work needs to look at four major applications which are- customer needs, sources of data, advances in technology and the decomposition of processes.

Source:https://www.bcg.com/publications/2017/competing-in-age-artificial-intelligence.aspx?linkId=45055693

Uploaded Date:12 March 2018

While Artificial Intelligence (AI) has been around for a while now, it has disappointed making extravagant promises for decades. Now, finally inputs of genuine worth are beginning to get noticed. Algorithms are getting more accurate, computers faster and robots more reliable, but none of this would have been possible without its main fuel at the back. That is the billions of Gigabytes of data warehousing now being done which is behind this growing sophistication and accuracy. The entrepreneurial drive using such capabilities is now exponentially higher than what was even a few years back. It is now driven by tech giants such as Amazon, Baidu, and Google. The early adopters of AI technology are reaping in the benefits, so even those who took time are now either implementing, or still unsure whether it fits into their respective business models. A study was conducted by the McKinsey Global Institute (MGI) to understand the feasibility of AI involvement in various industries, and early signs suggest that it will work well. While USA is the top source for absorbing AI investments, with China a distant second, the rest of the world is catching up fast. South Kore and the UK want to develop AI clusters to encourage such tech-based businesses.

Source:https://www.mckinsey.com/business-functions/mckinsey-analytics/our-insights/how-artificial-intelligence-can-deliver-real-value-to-companies?cid=soc-web

Uploaded Date:01 March 2018

Artificial Intelligence (AI) is not longer the sole preserve of tech geeks, but is being used in several day-to-day operations especially those involving customer experiences. One such recent implementation was a chatbot used by 1-800 Flowers which used an algorithm to speed up the customer experience. Retail firm North Face uses IBM’s Watson interface to gauge business intelligence on customer requirements before curtain a personalized shopping experience for them. UK’s Dixons Carphone even provides insurance advice using an AI powered chatbot. Domino’s Pizza uses Facebook Messenger to conduct its digital marketing conduits. Even fraud gets detected by Ticket master. Black Diamond’s equipment is used to help customers ski while also getting a personalized experience. Spotify gauges personal preference using AI to provide the range of music best suited to the particular user. The China Merchant Bank uses the We Chat Messenger to handle customer queries. AI helps Google Photo to tag users whose photos have been identified. A highly interesting use of predictive analytics is done by KFC. They have a facial recognition software powered by AI to actually predict orders.

Source:https://www.forbes.com/sites/blakemorgan/2018/02/08/10-customer-experience-implementations-of-artificial-intelligence/#32e4333b2721

Uploaded Date:27 February 2018

Artificial Intelligence (AI) is set to have a multi-pronged impact this year. First of all, AI will have a major impact at the workplace. This will in the long run affect employment, with retooling of job profiles and a reassessment of the desired skills. However, at present it will affect companies’ talent recruitment more as they will need to do a complete data backed analysis on what different functions to address this year. The interesting this is that this recruitment will not be driven by the technologists alone, but by specific domain experts. There has long been a debate on the return-on-investment (ROI) in the use of Big Data. This is set to be resolved with the use of AI. While cyberattacks have unfortunately already become more common, their severity is set to further rise, ringing in the alarm bells. AI will need to be transparent, provable and explainable for it to be relevant to all kinds of stakeholders. While USA remains the dominant power in such tech, China may soon take over. The likes of Canada, Japan, Germany, the UK and the UAE are also there in the pipeline. The onus on responsible use of AI won’t lie on the prerogative of tech companies singlehandedly, but will be a shared need.

Source:https://www.strategy-business.com/slideshow/Artificial-Intelligence-What-to-Expect-in-2018?gko=5d351

Uploaded Date:27 February 2018

The bitcoin cryptocurrency has been a lot in the news due to its exponential rise in value in 2017, before sliding down again recently. However, the bigger picture is that of the Blockchain technology which powers Bitcoin and all such cryptocurrencies. In a study anchored by MIT Sloan lecturer Michael Casey, it is explained how blockchain is becoming something of a “truth machine”. It is leading to a consensus of facts now, which in fact is the very essence behind human civilizations. Enormous funds are spent on tallying ledger books and balance sheets, because of the breakdown in trust. That is why blockchain technology needs a decentralization. It is already being utilized in various real-life scenarios such as an algorithm powered by blockchain driving a part of the World Food Programme’s operations in the Syrian refugee camps in Jordan. This business innovation in such a critical environment can solve problems for thousands of people, often at the mercy of clerical inefficiencies. Blockchain could also evolve into a Tragedy of Commons sort of problem.

Source:http://mitsloan.mit.edu/newsroom/articles/blockchains-applications-reach-further-than-you-think/?utm_source=mitsloantwitter&utm_medium=social&utm_campaign=truthmachine

Uploaded Date:27 February 2018

While AI (Artificial Intelligence) seems to be everywhere, amidst the hoopla over stars such as Alexa, Alpha Go or Siri, the technology still has a lot to improvise. While innovators say that AI will soon be a part of almost everything, it is better to keep a cautious eye out. As per a recent report by the McKinsey Global Institute, even within sectors, there remains a massive disparity between the leaders and followers. The sectors on top of the AI adoption rates are financial services, high tech, communications, logistics, healthcare and tourism. This is followed by a middle pack comprising media, professional services, retail, energy, education, automotive and consumer packaged goods. Building materials and construction industry is falling behind. Five major limitations have been identified by this study. The first of them is, data labelling, which is the process of each data set being categorized by humans. This leads to a reinforced learning using trial and error. Another limitation is the requirement of vast data warehousing to get any operation underway. A third is that while AI provides quantitative analysis, it does not explain the bigger picture. AI also does not have the ability to improvise in learning, as rather it is too generalized. Ideally, AI is supposed to be free of biases, but ultimately all algorithms are created by humans, so inherent biases creep in. A calibrated approach with lateral thinking is needed to solve this, with a sophisticated strategy for business analytics.

Source:https://www.mckinsey.com/business-functions/mckinsey-analytics/our-insights/what-ai-can-and-cant-do-yet-for-your-business?cid=other-soc-twi-mip-mck-oth-1801&kui=1UXNVzIzR8YwtGkEDN4iUQ

Uploaded Date:13 February 2018

The reputation economy is one where ratings given to service providers are broken down to produce a value on each person or organization. This is true for drivers of Uber or hosts in Airbnb. This social graph determines the worth of every person. In fact, a study says that in the US alone seventy percent of companies scan candidates’ social media ratings during talent recruitment rounds. Such methodology however is flawed. As an example, one can cite the fact that nearly four-fifths of Americans use Facebook, but far lower numbers similarly use Twitter or Instagram. This prevents genuine triangulation across the three fronts. There is a lot of frivolous data available which can lead to unintended results if weighed too much importance. Similarly, a lot of algorithms go wrong such as COMPAS used by the US justice system which has been proven to be racially biased. An unintended consequence of the reputation economy is that everyone is being judged all the time. A lot of service providers have adopted the stance of “social cooling” where they are expected to remain silent. With data protection now such a major point of discussion globally, this reputation economy will similarly need to be scrutinized for its effect on people.

Source:https://hbr.org/2018/01/as-ai-meets-the-reputation-economy-were-all-being-silently-judged?utm_medium=email&utm_source=newsletter_daily&utm_campaign=dailyalert&referral=00563&spMailingID=18921171&spUserID=OTY0OTMwNTk5NwS2&spJobID=1182008306&spReportId=MTE4MjAwODMwNgS2

Uploaded Date:13 February 2018

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