Artificial Intelligence part of strategic planning

 

 

 

 

 

 

 

 

 

 

 

Artificial Intelligence (AI) is not more a futuristic concept but it is real and it will change the economy and society in few years heavily.

Giants like: Google, IBM, Apple and Amazon use AI technology to transform the customer experience. For example, recently Starbucks used Alexa (Amazon’s cloud-based virtual assistant) to optimize its costumer experience. The application provides users with a voice-activated way to place their typical order (E.g. “Alexa, tell Starbucks to start my usual order.”) or check their card balance.

On the other side, small businesses are investigating how AI can help them drive down costs, better accommodate customers and remain competitive with their increasingly tech-driven peers. For those small businesses unfamiliar with AI, the risk to loose competitiveness is more than concrete and they need to make AI part of their company strategic planning because AI facilitate to achieve company’s goals. For example, for a company clothing store, probably the primary need is to have a predictive analytics technology to reduce staffing inefficiencies. A restaurant cares of autonomous delivery vehicles (for example using Uber’s Self-Driving Truck) or for company with complicated accounting, it might want to easy the process (http://www.businessinsider.in/AI-is-here-Saygoodbye-to-accountants/articleshow/57431399.cms) .

In conclusion, by setting specific and highly focused goals, companies make easier the identification of the right AI and the integration with the business.

Role of IT for AI

For companies business AI need a specific IT infrastructure to work properly, from which it cannot be detached for now. Using AI, it means also that companies have to adopt a modernised approach to IT (this means start using cloud computing solution, which they can easily auto scale according to the AI implemented).

In the long run, AI pay dividends and because the constant innovation of this market, companies must to keep a close eye to the market to avoid fell behind the competition.

China and Artificial Intelligence investments

According to Gartner, China is investing heavily in the adoption of high technology.

There are two factors that drive this:

1. High number of internet users. There is an estimation of 650 million internet and 980 million mobile internet users in 2016.
2. Big consumer base. This gives good expectation in terms of return.

Furthermore, China can develop AI technologies quickly because specific and unique conditions:

  1. The Country has data availability. This means that Chinese have access to large volume of training data due to the fact that they have a different concept of privacy, compared to the west world.
  2. Companies attract the best talents from the competition with aims to bring experience in and deliver results quickly.
  3. Economic availability for investment and acquisitions.

The picture above shows the quantity of investment in US companies. Startups are setting up and supported for development of AI technologies. The existing companies, like the web services providers Baidu, are also investing in this sector because profitable. For example, Baidu’s Silicon Valley Artificial Intelligence Lab (SVAIL) is investing in speech recognition and translate this research into products. The company also is applying AI to automobiles, aiming to mass-produce a driverless car in five years. Only in 2015, the company spent $1.5 billion, which represents the 15% of revenue, on research and development, of which AI is a crucial part.

I believe, the conditions described above are unique for one single Country and it will be hard for anyone else to catch up with it.

I.J. Good and the “intelligence explosion”

GoodToday I want to talk about a great man I.J. Good (9 December 1916 – 5 April 2009) who was a British mathematician and futurist.

My interest for him is due to the fact that he anticipated the concept of ultra-intelligent machines (a step ahead to AI).

Good was a mathematics prodigy, who once stood up in his crib and asked his mother what a thousand times a thousand was. During the healing period from the diphtheria, he discovered the irrational numbers and before fourteen years old he rediscovered mathematics induction.

During WWII he contributed to decode German’s encrypted communication, providing useful and sensitive information to the Allies.

At that time he introduced, for the first time, the concept of ultra-intelligent machine. He stated: Let an ultra-intelligent machine be defined as a machine that can far surpass all the intellectual activities of any man however clever. Since the design of machines is one of these intellectual activities, an ultra-intelligent machine could design even better machines; there would then unquestionably be an ‘intelligence explosion,’ and the intelligence of man would be left far behind. Thus the first ultra-intelligent machine is the last invention that man need ever make, provided that the machine is docile enough to tell us how to keep it under control”.

Intelligence explosion is the expected outcome in case the technology singularity happens. Technology singularity is the scenario where artificial intelligence triggers an unprecedented technology growth, which subverts the current human civilisation.

Nowadays, the AI is limited by the intelligence of human brain but if the IT and AI developments should continue with today trend, the risk of creating a super-intelligence (expansion of human intelligence) would be feasible. This means that computers would have more intelligence than human beings and these lose control of the situation and, therefore, end up being controlled by machines.

If, however, we assumed that humans could still control machines based on self-imposed limits (although I do not see this plausible), since the discovery generated by these ultra-intelligent servers would be truly exceptional, would these discoveries shared with all humanity or they would be used unilaterally for purpose of oppression?

Scientists have different ideas regarding the evolution of human capabilities.

  • One idea believes that the human being’s capability is immutable.
  • The second idea believes in a commensurate evolution of human with the progress of AI (due the fact that we learn from discoveries). This will create a greater human intelligence and this will support the creation of more advanced AI and so on.
  • The third idea is a combination of the previous two. Indeed, some futurists suggest that will be possible to upload minds to computers to amplificate the intelligence of humans.

Returning to the quote at the top, Good was hoped that the ultra-intelligent machine was the latest invention made by man as it would be detrimental to the human species. It must be said, though, that Good lived during the Second World War and he thought that, to overcome human problems (E.g. war, nuclear weapons and pollution), the ultra-intelligent machines were essential. I would add that are essential to the point of no return … ah yes …. what is the point of no return?

Can Artificial Intelligence steal jobs?

RoboticsRobotics and Autonomous Systems (RAS) is one of the ‘Eight Great Technologies’ identified by the UK Government in 2012 and under analysis to verify the risks and opportunities for the society and companies.

The popular belief is that these technologies will replace human’s labor in many tasks and activities because they are very cheap and provides satisfactory results. Before jump to conclusions, let’s evaluate if this belief is completely true.

We use this technology already when we use virtual assistant built in smartphones and driverless car technology. Besides, investments are made also to facilitate the work of professionals such as scientists and doctors primarily. Indeed, in hospitals around the world, surgeons are getting help from new robotic assistants.

According to professor Nick Jennings, chair in Artificial Intelligence (AI) at Imperial College London’s Departments of Computing and in Electrical and Electronic Engineering, the health care sector is where AI will bring more results in terms of efficiencies and improvements without put people out of jobs. In specific, AI helps to understand better the situations and facilitate the decision making process. He sustains that AI does not replace humans but work in partnership with them and make suggestions.

On this point I would like also adding that AI technology has been developed also to act because technologies recognize the situation and they can take the actions if programmed to do so.

Compared to humans, machines are able to elaborate millions of hypothesis and present them to scientists for a decision. Professor Nelson, from the Imperial College London, states: “The one fact that we have learned from the internet revolution, and the rapid deployment of computers, is that worries about large-scale unemployment have largely evaporated because other jobs have been created and that’s an important point to make”. In brief, if some jobs were lost others jobs would be created in their place.

For example, if a new technology is discovered and implemented in the society, this needs new qualified people (this means new jobs) for things like implementation and maintenance and, besides, this also reduce cost for companies. This mean more cash to reinvest etc.

Now, I have also say that the two comments above are the classic ones that suit and justify any technology progress. I completely agree and respect those but there is something more that sometime is never taken in consideration when new technology is used and made available for the market. Therefore, let’s consider also other aspect of this technology progress and in particular AI.

Today, the role of AI is mostly supporting people for decision making but combined with Internet Of Things we can also assume they will replace human tasks. As I said above, they also create more job opportunities but at what cost? There is always a time frame for people to recognize the risks and take the precautions. This means, if a new technology takes somebody’s job, this is never being recognized on time by the worker. This situation requires that he/she might needs other skills so this entails time to requalify the professional figure and find a new job. If the situation involves few hundred people, probably this can be easily managed by community. Unfortunately, I have not seen any quantification of the real impact on the job market. Moreover, we have to comprehend that the use of AI impacts all the productive sectors and all Countries and we also don’t know if the replacement will be gradual or aggressive.

Compared to other technologies, AI can be implemented and used at any level of the society and industry. With this I want to say that in the past any technology was created and used to improve the labor condition, making easy the hard work or replacing people in situation of danger. This pushed people to be more qualified and seek jobs with specific characteristics. In contrast, the use of AI challenges also the white-collar workers; this push people to see new jobs not only based on studies and qualification but probably find the way to benefit from them.

As for every big change, the education is the foundation of every decision. Know well the situation and the threat is fundamental to take the right decision.

How Artificial Inteligence can improve organisational effectiveness

organizational effectivenessIn modern world, the role of data in strategy, planning, and operations is a key competitive differentiator. Indeed, analytics already support critical decisions in sales, customer success, marketing and finance but data analytic has not a central role in case of decision for organisational effectiveness. This means they are not used to attract, maintain and motivate people or to improve people performance and manager effectiveness.

With current technology and findings, Data-driven insights could be also used reducing risk and driving success in decision-making for daily jobs and for any roles in the company and improving the entire organisational performance. Indeed, the role of Artificial Intelligence (AI) is acquiring, analysing, and providing output easy to comprehend for people and making easier the decision process.

For example, in case of HR, AI can find and provide valuable insights to HR (e.g. talent assessment, employee engagement, manager effectiveness), which could be missed by traditional procedure. In this way, HR can easily and quickly predict and understand workforce trends and problem areas; consequently, the organization will adopt the best solution to fix the issue.

In summary, the example above can be replicated for any company department. Indeed, providing AI to employee can optimize the effectiveness of the entire company with affordable cost.

Artificial Intelligence and Healthcare

helthcareArtificial intelligence (AI) is becoming an intriguing argument and businesses are interested because the innovations and benefit it provides.

According to Frost & Sullivan, the AI healthcare market earned $600 m in 2014 and this will go up to $6.6 b in 2021.

The shift to a value-based reimbursement model in US and UK (providers are not paid by number of visits and tests but on the value of care they deliver) will push to find new way to increase efficiencies and improve patient outcomes.

AI (with cognitive solutions) can help hospitals elaborating patients’ data and prescribing the right treatments and cures. At this stage, AI has a role of support for physicians and not replacement of them (I have my doubts in case of further progress with this technology). Indeed, cognitive computing has a role of elaboration of big data and presentation of solutions and information; for example, doctors use cognitive applications to analyze thousands of cases and articles and choose the best one for a specific situation.

AI is not only about diagnosis and treatment but can help also with disease management, clinical trials, wellness and reimbursement because the facility to elaborate, compare and provide with effective solutions.

Driverless Car

Driverless-CarThe development of new technologies for the transportation system and the progress made by social media applications are the two main contributors for a radical change of the private transport.
Among the companies, the race to offer driverless cars to the market is just started and Apple, Google, Tesla and Uber are some of main companies involved in this challenge.
The above companies need partners in automakers to progress further because they do not have skills for the production of these. For the first time since the creation of the automobile, people has to rethink the purpose and usage of this vehicle.
Indeed, most of the past transport developments were based on mechanic and environmental implementations (e.g. construction of railroads, electric lights implementation, and improvement of engines performance and vehicle’s comfort for the passengers) but it was not conceived to give free time to the driver, this means offering passengers additional time for reading books, watching video, catnap, writing etc.
Besides leisure, companies want also reduce the risk of accidents because the vehicle’s movement is coordinated with the ones around and because it can move also if the visual condition is not perfect (e.g. fog, night and rain).
Because the communication with other vehicles, the car can reduce the time travel and the search of an available parking spot. Additional drones can move loads around the country and decreasing the number of vehicles on the road.
Among the IT companies, Google is the one in better condition to provide in short time self-driving cars to the market because the company has mapping databases, artificial intelligence know-how, and its fleet of driverless cars.
This is also time to take decision for what vehicles develop and at moment there are two approaches:
  1. The first approach, gradual implementation, it is supported by car developers (and by Tesla in particular) believes that driver-assisting technologies (advanced cruise control and functionalities like the Mercedes-Benz S-Class “traffic jam assist” – http://tinyurl.com/ncf8q7a for a complete view) should be added to existent vehicles and a pure driverless system should be reached only over time.
  1. The second approach, ground-up (led by Google) believes that a complete new car needs to be produced because there are so many technology developments available that does not make sense use the same concept of vehicle. Indeed, new feature involve all the aspect of the car, for example breaks, ignition, steering wheels and tires.
At this point would be interesting understand if people would feel comfortable with this driverless system and is this technology is 100% reliable at this stage. When Google tested this technology, the company made sign a contract to the passengers and the contract stated clearly that people in the car must be alert while the driverless system was on because it that was an experiment and an early stage of implementation. If something goes wrong drivers must take the control of the vehicles (would you go on a pilot free airplane, for example?).
Apparently the idea that passengers can enjoy free time on board collide with the reality that someone has to be ready to take control of the vehicle and this grey area is simple unacceptable.
As for many new technology at early stage even if this exists does not mean that people is ready for that or satisfy his needs.
It is really hard to predict when this kind of vehicles will be ready for the consumers, even if some companies are really confident that in 5 years the first cars will be available in showrooms.
New transportation systems have created changes in the society and in particular in time perception. In United Kingdom for example, the railways (not the postal office) was the one that enforced clock uniformity across the country.
Another element which goes under pressure is the space (check my book Bittersweet social media for more detail) because distance can be effected by new technology. People can develop a different perception about the distance between two location based on the quantity of time spent to reach them or in what condition (more uncomfortable you are during the travel and longer the distance appears).
With these intelligent cars, passengers will benefit of additional free time and they will be engaged with new activities during the journey and considering also that the communication between cars reduces the journey, also the perception of distance and time can be effected and changed.

IT Companies leaders in Artificial Intelligence

Comapanies Leaders in AI_SMArtificial intelligence (AI) is used in many different sectors nowadays, for example robotics, gaming, health care, gaming, motion and manipulation and music but its basis is still the analysis of big data.
Today social media is one of the main stream and source of digital information (images, sounds and texts) and AI is used to analyses the massive amount of information and predict events based on the behavioral traits, events history and such.
For example, one of the most important social networks, Facebook, uses own algorithms and it created an automated system, which is capable to promote the right ads to the right users and furthermore the system knows the right time and right place to propose those ads.
In the example above, the raw data come from the “like” buttons people use for approval, from cookies, from the texts or from image recognition.
Overall IBM is the leader company for number of patents related to AI (source USPTO) but Google is the company that more invested in image recognition, natural language processing and neural networks buying 5 different companies in the past two years. Other companies that are also investing in this field are: Yahoo, Twitter and Facebook. .
The main interest of those companies is to develop an application able to understand how people take images, what they take pictures of and why.
An example of software algorithm is the application of Microsoft “How old do I look?”, which is capable to tell the person age from a picture. Pinterest’s search engine “Guided Search” is based on images search and it is very inspiration for idea or narrowing down a research based on general need/idea.
The company which made a big progress in image search is Facebook. Indeed, according to Mike Schroepfer, Facebook Chief Technology Officer, Facebook’s AI Research team has developed a system that reached unprecedented results, the main ones are:
It detects objects in pictures 30% faster and using 10x less data training compared to existing systems.
The system is able to understand human speaking, to comprehend questions and to provide with answers.
It can predict the outcome (or consequences) by learning from observation.

The info above can be found at the web address: http://tinyurl.com/nz68bmy.

As seen above there is al lot of interest on AI and, furthermore, the technology is available today for research and these two components can bring to sensational findings really soon.Comapanies Leaders in AI_SM

Artificial Intelligence and Social Media

Wired android head. Digital illustration.
Wired android head. Digital illustration.

Social networks (SNs) are capturing a significant quantity of information on their users but this data is not structured and this means it is very difficult to put to use.
Because of the above issue, companies use Artificial Intelligent (A.I.) techniques to analyse SNs. These have extraordinary learning capacities, indeed these techniques are capable to process all the activities occurring over their networks and they are capable to analyse conversations, process facial recognition, and analyse gaming activity.
In general, according to Schalkoff, R.J. (1990) the scope of A.I. study is to “explain and emulate intelligent behavior in terms of computational processes”  through performing the tasks of decision making, problem solving and learning.
When applied to SNs, A.I. uses social computing and Data mining techniques for the analysis. The outcomes support marketer studies to identify influential profiles within networks and to use appropriate societal marketing approach to reach them.

Indeed, the better understanding of users’ preference and behaviors improves:
Marketing, specifically for consumer prediction, clustering and brand perception;
Sales forecast due to the the high accuracy of prediction for products and services demand, inventory control and distribution.
The application of A.I. to study the users’ behavior foster the discussion of ethics, in particular for the threat to privacy and threat to human dignity.
Indeed, any single users’ activity (even if the user is anonymous) increases the quantity of information available for a Data Mining analysis and improves the accuracy of predictions for single user. There is also the high risk that I.A. can replace humans in significant jobs (e.g. police officer, judge and soldier) because its capability to analyse fast and well people behaviors, and this would create frustration and alienation in people.

A.I. is impersonal and this means that it is limited to analyse and act according to the programming. Indeed, machines associate a specific action to a specific event.

For more information regarding developments and investments in this are, please find below some interesting readings:

Facebook and AI: http://www.bbc.co.uk/news/technology-34118481
Google: http://www.techinsider.io/the-10-craziest-projects-google-has-acquired-2015-9