Cutting Through the Hype - What Artificial Intelligence Looks Like in Real World Business

CUTTING THROUGH THE HYPE
— WHAT A.I. LOOKS LIKE IN
‘REAL WORLD’ BUSINESS

We’re entering an era where we will no longer be
thinking about technology…
We will be thinking with it.
WELCOME TO GOLDEN AGE OF A.I.

● It’s here to stay
● It’s coming faster than you think
● It’s just software trying to act smart
● It’s changing everything...literally
● It loves to make you look good
● It’s easier to use than you think
● Q&A
ARTIFICIAL INTELLIGENCE
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STARTUPS & ENTERPRISE
chris.mohritz@10xeffect.com
● Lead a startup accelerator for web/mobile
● Also run corporate innovation events & consulting
● Using A.I. (machine learning) in business since 2009
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Philosopher
MY PERSPECTIVE
Sherpa
vs.
Learn & lead by doing. Learn & lead from theory.
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Business loves it…
● Boosts revenue
● Reduces costs
Technology caught up…
● More data — “Life begins at a billion examples”
● More computing — go cloud!
WHY NOW?
“...by 2020 almost all respondents believe A.I.
can generate a significant R.O.I. impact
through both an expected 39% boost to
revenues on average and an anticipated 37%
reduction in costs.”
~ Infosys
1,600 IT and business decision-makers were interviewed in November 2016. All came
from organizations of more than 1,000 employees, with $500M or more annual revenue
and from a range of sectors.
That’s 76% to the bottom line!

But what caused the change in attitude for business?

A.I. ACCELERATES BUSINESS
As it was famously said back in 2011…
Software is Eating the World.
Because software automates, simplifies, and
accelerates business.
And now...A.I. is eating the software.
Because A.I. automates, simplifies, and
accelerates software.
And we have a lot of software these days!

● Hiring the right people
● Augmenting finance
● Measuring brand exposure
● V.I.P. identification
● Drone/satellite asset mgmt
● Retail shelf analysis
● IP infringement monitoring
● Visual search
● Chatbots
EXAMPLES OF A.I. IN USE TODAY
● Personalizing customer service
● Improving customer loyalty
● Boosting customer retention
● Detecting fraud
● Predictive maintenance
● Smoother supply changes
● Career planning
● Route optimization
● Reduce power consumption
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Business loves A.I.
● A.I. removes friction, allowing greater productivity
● Greater productivity translates into a faster
growing business
● Faster growing business translates into further
investments to expand A.I.
IT’S HERE TO STAY
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IT’S COMING FASTER
THAN YOU THINK

● We are hardwired to expect things to happen in a
linear fashion
● Yet, digital technologies are evolving at computing
speeds — exponentially
Which is why things that evolve at an exponential rate
tend to ‘catch us off guard.’
OUR PERCEPTION IS DECEPTIVE

Our world is messy...really messy.
Which — historically — has confused computers.
But now they are quickly figuring out our physical world.
This is allowing computers to interact and deeply
integrate into our daily work and lives...opening up all
kinds of wonderful opportunities.
FIGURING OUT OUR MESS

Speech — computers can now recognize and speak
natural language.
Vision — computers can now recognize and create
visual information.
WHAT ALLOWS THEM TO DO
THAT?
Join us in following sessions for more details on these 2

Linear thinking
Our minds don’t register exponential
change...so things that move quicker
than linear are ‘hard to believe.’
In addition, computers have figured out
our messy physical world, which opens
the door for it to quickly move in.
IT’S FASTER THAN YOU THINK
Exponential
change
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100 million times faster...?
“I would predict that in 10 years there’s nothing but
quantum machine learning”
~Hartman Nevet
Head of Google’s Quantum AI Lab
via: technologyreview.com
AND IT’S ONLY GETTING FASTER
Hint: Now is the time to act.

AN INTERESTING TIPPING POINT...
2011: Machine tries to beat humans. 2017: Humans try to beat machine.6yrs later ⇨

A good illustration of
how quickly these
technologies will
integrate into our lives.
AND ANOTHER...
youtube.com/watch?v=YvT_gqs5ETk

IT’S JUST SOFTWARE TRYING TO
ACT SMART

Automation
Software
Artificial Intelligence
Machine Learning
Neural Networks
Deep Learning
PUTTING BUZZ WORDS INTO
CONTEXT
Artificial intelligence is a subjective
result created by “smart” software
Machine learning is a form of software
development that creates “smart” software
Neural networks are a technique of
machine learning
Deep learning is a neural network
with more than 2-3 layers
Software is a method of
automation

CONTINUING TO AUTOMATE OUR
WORLD
In the 20th
century we automated work,
In the 21st
century we are automating intelligence.

The traditional way...
DEVELOPING SOFTWARE
The machine learning
way...
Model
00110011010111
01
010110011101
0
11001001101
Stored as a
mathematical model.
Trained logic through finding patterns in the data.Handwritten logic.
tripID hasEggs eggsBought milkBought
1 1 6 1
2 0 0 2
3 1 6 1
4 1 8 1
5 0 0 1
6 1 6 1
7 0 0 3Remember “Software Accelerates Business”...?
Machine Learning allows us to accelerate that software — further accelerating business.
All because machine learning can create more complex logic than handwritten code. Making it
“Smart.”

A SIMPLIFIED ILLUSTRATION...
Handwritten logic
if (eval) { do_this() }
Trained logic
if (eval) { do_this() } if (eval) { do_this() } if (eval) { do_this() }

A.I. IS A SUBJECTIVE “RESULT”
● Machine learning allows us to create software with
more complex logic
● This “smarter” software can produce results that
mimic human intelligence
But we don’t really understand what human
intelligence is...so what delineates tasks that require
intelligence from tasks that don’t?

Artificial flowers have the same
relationship to natural flowers
as
artificial intelligence has to
natural intelligence.
Useful, but not the same.
AND LET’S BE
CLEAR...

Movies are just entertainment.
AND OF COURSE...
Photo: imdb.com/title/tt1340138

CODE TRYING TO BE CLEVER
A.I. is the result of “smart” software developed through
machine learning.
And since we don’t fully understand our only point of
reference — natural (human) intelligence — all we can
do is subjectively mimic intelligence.
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IT’S CHANGING
EVERYTHING...LITERALLY

A.I. removes friction.
It’s software that can interact and adapt — on the fly.
And by removing friction, A.I. gives us:
● Quicker adoption,
● Greater accuracy, and
● Faster speed
Which ultimately translates into more productivity.
AT THE VERY CORE...

AND IT’S ALL UP FOR GRABS
Everything mankind has ever invented — including all
software apps — will be reinvented using A.I.
A.I. will make everything frictionless
and more productive.
And it will do it completely behind-the-scenes...

ON A PATH TO UBIQUITY
“The most profound technologies are those that
disappear. They weave themselves into the fabric of
everyday life until they are indistinguishable from it.”
~Mark Weiser
Scientific American, 1991

CHANGING EVERYTHING
Can you think of anything that doesn’t have a
software element to it today?
Everything that is software today — or will be in the
future — will get the “A.I.-powered” treatment.
Remember, Software is Eating the World…?
And today, A.I. is eating the software.
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IT LOVES TO MAKE YOU
LOOK GOOD

EMPOWERING OUR WORLD
A.I. is the bridge between our world
and the computer world.
A bridge that understands how both sides work
— and translates between them.
And brings out the best in both.

“In 2018, half a billion users will save two hours a day as
a result of AI-powered tools.”
~ Gartner, 2017

THE A.I. REBOOT
A.I. is a tool for augmentation, not replacement.
Augment your staff
A.I. can empower your staff to be (exponentially) more
productive:
● To work faster, and
● To work more accurately
Augment your customers
A.I. can make it easier for your customers to adopt, use, and
support your products.
(e.g. Alexa)
Stick around for examples

A.I. can reduce friction in nearly any business process.
But stay focused on small, precise tasks.
General A.I. Narrow A.I.
‘Replace’ mindset ‘Augment’ mindset
THINK BIG, BUILD SMALL

“Anything that a typical human can do
with 1 second of thought, we can probably
now or soon automate with A.I.”
~ Andrew Ng
Former lead of Google Brain project
FOCUS ON PINPOINT SOLUTIONS

THINK THIS... NOT THIS...
One model to rule
them all.
Product
Recommendations
Emotion
Recognition
Sentiment
Analysis
Text
Analytics
Job Search &
Discovery
Video
Analysis
Text to
Speech
Computer
Vision
Search
Autosuggest
Facial
Recognition
Language
Translation
Speech
to Text
Resume
Analysis
Content
Moderation
Micro A.I. Monolithic

A.I. should stand for…
Augmented Intelligence.
Stay focused on small, narrow tasks that amplify
human productivity, not replace it.
MAKING YOU LOOK GOOD
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WHERE DO I START LOOKING?
Break down your search into bite-sized chunks.
Anything related to improving customer experience is usually a good
bet.
Marketing Support Product Admin
Innovatio
n
Join us in following sessions for more details on the Marketing, Support and Product
blocks
Quickest R.O.I.
Suggested implementation path

START WITH COMMERCIAL APIs
Commercial Platform, Their Training Data
Commercial Platform, Your Training Data
In-House Platform, Your Training Data
A.I. M
aturity
← No training data required!

Most of the major cloud providers
have purpose-built A.I.-powered APIs.
Many have a free tier.
And they work exactly like
every other API you’re already using.
NOTHING NEW HERE

IN SHORT...
You don't need to know A.I. to use it.
For example...
Who uses software?
Who knows how to write software?

● Microsoft Azure
● DiffBot
● BigML
● Google Cloud
● AWS
● IBM Watson
● Baidu
● Salesforce
● Alibaba
● Oracle Cloud
● HP Haven
● Adobe Sensei
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ESLOTS OF COMMERCIAL OPTIONS

AND OPEN SOURCE OPTIONS
● Google TensorFlow
● Microsoft CNTK
● Apache PredictionIO
● Deeplearning4j
● Caffe
● H2O
● Apache Spark MLlib
● Apache Mahout
● OpenNN
● Oryx 2
● OpenCyc
● Amazon DSSTNE
( If you decide to go in-house. )
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Just add skills…
Most implementations do not require a new team,
All you need are some new skills.
AND HOLD OFF ON NEW TEAMS

● Right technical expertise to cut through the hype
of new offerings, and
● Right business acumen to know where to best
apply those technologies.
WHAT SKILLS DO YOU REALLY
NEED?
( Sound familiar? )

A.I. fuels growth.
You could end up
hiring more people,
not laying them off.
“A.I.-POWERED” TENDS TO HIRE
geekwire.com/2017/amazon-soars-340k-employees-adding-110k-people-single-year

We’ve gone through
this transition
before.
A.I. just makes
existing stuff
“smarter.”
IT’S EASIER THAN YOU THINK
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Don't get me wrong, there's an insane amount of complexity behind the scenes.
But fortunately, you need to know that stuff to take advantage of A.I.

HOW-TO GUIDES
● Building Voice-Enabled Products With Amazon Alexa
● Cognitive Customer Engagement Using IBM Watson
● Harnessing Visual Data Using Google Cloud
● Building a Recommendation Engine Using Microsoft Azure
● Predicting Marketing Campaign Response Using Amazon Machine Learning
● Unleashing A.I.-Powered Conversation With IBM Watson
● Get into the Mind of Your Customer Using Google’s Sentiment Analysis Tools
● Discover Your Customers’ Deepest Feelings Using Microsoft Facial Recognition
● Give Your Products the Power of Speech Using Amazon Polly
● Computers Are Opening Their Eyes — and They’re Already Better at Seeing Than We Are
● How to Predict When You’re Going to Lose a Subscriber
● The Future of Business is a Digital Spokesperson — Let’s Build a Preview Using Microsoft’s Bot
Framework
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COMING UP...
2 A.I. Technologies that will have the greatest impact
● Computer Speech — 12:00-12:45 pm
● Computer Vision — 1:00-1:45 pm
2 A.I. Applications with the quickest R.O.I.
● Customer Engagement — 2:00-2:45 pm
● Personalization — 3:00-3:45 pm
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● A.I. is here to stay
● It’s coming faster than you think
● It’s just software trying to act smart
● It’s changing everything...literally
● It loves to make you look good
● It’s easier to use than you think
JOURNEY’S END
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We’re entering an era where we will no longer be
thinking about technology…
We will be thinking with it.
Not to imply that A.I. can think…
But that A.I. will expand our thinking.
CLOSING THOUGHT...

QUESTIONS OR COMMENTS?
chris.mohritz@10xeffect.com
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