How To Turn AI Into Business Value: 5 Takeaways
2016 saw Artificial Intelligence (AI) technology transforming industries, reinventing business processes and reimagining business models. We’ve seen major advancements in driverless technology, voice recognition, and deep learning. However, its application is still a grey area for many businesses.
On April 27th, 2017, Silicon Valley Innovation Center (SVIC) hosted an AI Executive Briefing, a first in their Executive Briefing Series, in San Mateo, California. The focus of this event was on Turning Artificial Intelligence Into Business Value
This full day event featured presentations from CEOs and CTOs of top 20 disruptive startups and innovative companies in Artificial Intelligence technology who briefed the audience of 50+ corporate executives on the latest trends in AI and helped them discover practical applications of AI technology for their business.
This briefing provided industry leaders a unique opportunity to meet with key innovators and disruptors from Silicon Valley and discuss how to turn the threats arising from emerging technologies into business opportunities.
The briefing covered a variety of different applications of AI across industries like finance, healthcare, marketing and sales, robotics knowledge management, industry specific applications and biotechnology.
Here are the top 5 key takeaways from the event:
In today’s world AI is that well honed machine running on Big Data, Machine Learning and Human Tuning
Even though the Artificial Intelligence technology has been around for awhile, it’s the enormous amount of digital data available – big data – that’s giving it a new life. From AlphaSense, that uses big data and machine learning for Knowledgement Management to Trace Genomincs that is working towards digitizing the world’s agricultural soils and applying machine learning to that database for exponential growth in yields, the participating companies are using AI to sieve through millions of data points to create a predictive platform with much higher success rate.
As Sean Everett, CEO of PROME said, “If you want to make sure you’re still a voice to be heard in the meetings that matter, you need to start studying Data Science, Big Data, Machine Learning, and Deep Learning. As more humans come online, software eats the world, and an exponential amount of data gets kicked off, the new Millennial users expect that the machine does all the work for them and just gives them the right answer when they need it without ever having to ask for it.”
AI is affecting all industries and lines of business – Finance, Marketing, Healthcare, Manufacturing, you name it.
The Executive Briefing covered most of these primary industries and it was evident that all of them were ready to be or are already being disrupted by companies powered by AI at their core. Everything that we know of is being reinvented by AI. Scientists from Stanford recently published a paper listing some of the industries that AI will transform or have a profound impact on, thereby leading to a Fourth Industrial Revolution.
For example, Flowcast one of the presenting companies at the Briefing, is disrupting the Trade Finance sector. How? It focuses on revolutionizing trade and supply chain finance with artificial intelligence (AI). Benefit? B2B clients extend more credit to customers and accelerate sales growth.
Instead of a general application of AI start finding your niche and apply it
Since the last 50 years we have had a very generic perception of AI. However, now that the AI solutions are more consumable, they can be used for very specific, task based applications. Just look at Zero, an AI powered email app that helps professionals and organizations intelligently prioritize business correspondences, keeping in mind their privacy. As stated by the U.S government in its report on AI, Technological progress is the main driver of growth of GDP per capita, allowing output to increase faster than labor and capital.
Some estimates suggest that the total global market for artificial intelligence will reach ~$153 billion by 2020, and the adoption of these technologies could improve productivity by 30% in some industries.
The actual secret ingredient is not the algorithm, its data.
Many big players are making their algorithm open source and they are not too worried because it’s not the algorithm but DATA that makes all the difference. Just think about Google. They released TensorFlow without a worry that someone else will come along and create a better search engine because there are over a trillion searches on Google each year.
At the Executive Briefing, RocketFuel, a predictive marketing platform, explained how it helps marketers use real-time data and artificial intelligence to anticipate consumer needs. It uses machine learning to separate actionable signals from the noise. Which brings us to our last take away about machine learning.
Machine learning is defining our future as we speak
Last year Fortune 500 CEOs were asking their teams “what’s our big data strategy?” 2017 is the year when they ask “what’s our machine learning strategy?”
Why exactly? Because machine learning is simultaneously getting cheaper, easier, and more accessible.
The most powerful form of machine learning being used today, called “deep learning”, builds a complex mathematical structure called a neural network based on vast quantities of data.But it’s only in the last three or four years that computers have become powerful enough to use them effectively.
Machine learning is what makes your algorithms smarter. It’s what makes predictions more accurate and risks minimal. It is the brain behind the apps. AI itself is a machine learning trend.
The AI executive briefing concluded on the the note that the importance and impact of AI across industries is being recognized by professionals researching, developing its capabilities and implementing it. And they believe that in order to keep up, companies will have to adapt and adapt quickly in order to survive this AI lead disruption.
If you want to learn more about turning disruptive technologies, such as AI, into business value, join one of our immersion programs “Navigating FinTech” or “Digital Transformation” to visit and meet with the most innovative companies of Silicon Valley.
Written by Nidhi Rai, Marketing Associate, SVIC.