This is the presentation I made in Stuttgart AI on 5 July 2018 pdf

1. How$Orgs.$get$ready$for$
AI
SK#Reddy
Chief#Product#Officer#AI
skreddy99
skreddy99

2. Did$I$tell$you$that?$
AI$affects$every$org$and$every$process

3. https://www.logistics.dhl/content/dam/dhl/global/core/documents/pdf/glo7ai7in7logistics7white7paper.pdf

4. ImageNet(Large(Scale(Visual(Recognition(Challenge((ILSVRC)(
winners

5. https://www.eff.org/ai/metrics
Image&
Recognition

6. https://www.eff.org/ai/metrics
Games

7. https://www.eff.org/ai/metrics
Speech&
Recognition

8. https://www.eff.org/ai/metrics

9. Speed — Accuracy-trade off
https://arxiv.org/pdf/1611.10012.pdf
• Marker8shapes8indicate8meta<architecture8
• Colors8indicate8feature8extractor.8
• Each8(meta<architecture,8feature8
extractor)8pair8can8correspond8to8multiple8
points8on8this8plot8due8to8changing8input8
sizes,8stride,8etc.

10. Fowl%Language:%AI%Decodes%the%Nuances%of%Chicken%“Speech”
https://www.scientificamerican.com/article/fowl3language3ai3decodes3the3nuances3of3chicken3ldquo3speech3rdquo/

11. Availability)heuristic, Attentional)bias, Illusory)truth)effect, Mere)exposure)effect, Context)effect,)Cue9dependent)forgetting,)Mood9congruent)memory)
bias, Frequency)illusion,)Baader9Meinhof)Phenomenon, Empathy)gap, Omission)bias, Base)rate)fallacy,)Bizarreness)effect,)Humor)effect, Von)Restorff)
effect, Picture)superiority)effect, Self9relevance)effect, Negativity)bias,)Anchoring,)Contrast)effect,)Focusing)effect, Money)illusion, Framing)
effect, Weber–Fechner)law, Conservatism, Distinction)bias,)Confirmation)bias, Congruence)bias, Post9purchase)rationalization,)Choice9supportive)
bias, Selective)perception, Observer9expectancy)effect,)Experimenter’s)bias,)Observer)effect,)Expectation)bias, Ostrich)effect,)Subjective)
validation, Continued)influence)effect, Semmelweis)reflex,)Bias)blind)spot, Naïve)cynicism, Naïve)realism,)Confabulation, Clustering)
illusion, Insensitivity)to)sample)size, Neglect)of)probability, Anecdotal)fallacy, Illusion)of)validity, Masked)man)fallacy,)Recency)illusion, Gambler’s)
fallacy, Hot9hand)fallacy, Illusory)correlation,)Pareidolia, Anthropomorphism,)Group)attribution)error, Ultimate)attribution)error, Stereotyping,)
Essentialism, Functional)fixedness, Moral)credential)effect, Just9world)hypothesis, Argument)from)fallacy, Authority)bias, Automation)bias,)
Bandwagon)effect, Placebo)effect,)Halo)effect, In9group)bias, Out9group)homogeneity)bias, Cross9race)effect, Cheerleader)effect, Well9traveled)
road)effect, Not)invented)here, Reactive)devaluation, Positivity)effect,)Mental)accounting, Normalcy)bias, Appeal)to)probability)fallacy,)Murphy’s)
Law, Subadditivity)effect, Survivorship)bias, Zero)sum)bias,)Denomination)effect, Magic)number)7+92,)Curse)of)knowledge, Illusion)of)
transparency, Spotlight)effect, Illusion)of)external)agency, Illusion)of)asymmetric)insight, Extrinsic)incentive)error,)Hindsight)bias, Outcome)
bias, Moral)luck, Declinism, Telescoping)effect,)Rosy)retrospection, Impact)bias, Pessimism)bias, Planning)fallacy, Time9saving)bias, Pro9
innovation)bias, Projection)bias, Restraint)bias, Self9consistency)bias,)Overconfidence)effect, Egocentric)bias, Optimism)bias, Social)desirability)
bias, Third9person)effect, Forer)effect,)Barnum)effect, Illusion)of)control, False)consensus)effect, Dunning9Kruger)effect, Hard9easy)effect, Illusory)
superiority,)Lake)Wobegone)effect, Self9serving)bias, Actor9observer)bias,)Fundamental)attribution)error, Defensive)attribution)hypothesis, Trait)
ascription)bias,)Effort)justification, Risk)compensation,)Peltzman)effect,)Hyperbolic)discounting, Appeal)to)novelty, Identifiable)victim)effect,)Sunk)
cost)fallacy, Irrational)escalation,)Escalation)of)commitment, Loss)aversion, IKEA)effect,)Processing)difficulty)effect, Generation)effect, Zero9risk)
bias, Disposition)effect, Unit)bias, Pseudocertainty)effect, Endowment)effect,)Backfire)effect,)System)justification, Reactance, Reverse)
psychology, Decoy)effect, Social)comparison)bias, Status)quo)bias,)Ambiguity)bias, Information)bias, Belief)bias, Rhyme)as)reason)effect,)Bike9
shedding)effect,)Law)of)Triviality, Delmore)effect, Conjunction)fallacy,)Occam’s)razor, Less9is9better)effect,)Misattribution)of)memory,)Source)
confusion, Cryptomnesia, False)memory, Suggestibility, Spacing)effect,)Implicit)associations,)Implicit)stereotypes,)Stereotypical)bias, Prejudice,)
Negativity)bias, Fading)affect)bias,)Peak–end)rule, Leveling)and)sharpening, Misinformation)effect,)Duration)neglect, Serial)recall)effect,)List9length)
effect, Modality)effect,)Memory)inhibition,)Part9list)cueing)effect, Primacy)effect, Recency)effect,)Serial)position)effect, Suffix)effect,)Levels)of)
processing)effect, Testing)effect, Absent9mindedness, Next9in9line)effect, Tip)of)the)tongue)phenomenon, Google)effect
https://betterhum ans.coach.m e/cognitive5bias5cheat5sheet555a472476b18
A"few"human"biases…..

12. AI#Adoption#Challenges
• 80#20%Rule%of%adoption1:#Chasm#between#
ambition#and#adoption#
• Low#visibility#of#where#to#apply#AI
• High#expectations
• Shortage#of#talent
• Fear#of#AI#(job#loss,#new#learning,#etc.)
• Tech#challenges
• Costs
Pioneers# (Understood+and+Adopted)+1
Investigators(Understood+but+in+Pilot+stage)
Experimenters(Piloting+without+deep+understanding)+
Passives(No+adoption)
1M IT#Sloan#M anagem ent#Review;#https://www.bcg.com /Im ages/Reshaping%20Business%20with%20Artificial%20Intelligence_tcm 9Q177882.pdf
“Don’t#invest#in#AI.#We#don’t invest#in#natural#
language#processing. Don’t#invest#in#image
analytics.#Invest in#a#business#problem.”

13. 8"Critical"questions"for"CXOs
1. AI%ready%
2. Opportunities%/%Challenges
3. Obstacles
4. Awareness
5. Capability
6. Data
7. Plan
8. Help

14. • Are%you?%
• Committed?%
• Do%you%know%how%to%do%it?%
• What%are%you%missing%without%AI?%
• Have%listed%the%reasons%why%you%want%to%do?%
• Regulations?%
• Culture%of%organization%is%supportive%of%changes?
• Why%do%you%want%to%get%AI%
• Reasons,%Challenges,%Benefits%
• What%do%you%want%to%accomplish
• Competition?%Revenue?%Customer%value?%
Efficiency?
AI#ready
• How%do%you%want%to%go%
there
• AI%strategy
• Gap%analyses,%
• Priorities%of%focus%
areas%
• Barriers%to%change%
• Org%change%
• Train%people%
• Acquire%tools%
• Talent%hiring%
• Change%management%
• Metrics

15. M IT$Sloan$M anagem ent$Review1;$https://www.bcg.com /Im ages/Reshaping%20Business%20with%20Artificial%20Intelligence_tcm 9F177882.pdf
• Is$the$organization$aware$of$
‘how’$and$‘what’$of$AI?
Awareness

16. • Don’t'know'what'to'collect?
• Do'you'have'the'data?'
• Incomplete?'
• Large?'
• Diverse'type?'
• Diverse'sources'(machines,'mobiles,'man)?'
• Sparse?'
• Erroneous?'
• Distributed'storage?'
• Data'pipelines?'
• Streaming'data?'
• Data'ownership'(proprietary'data):'Do'you'have'it
• Where'to'get:'Orgs'that'own'may'have'little'incentive'to'
make'it'available'
• Data'is'fragmented'across'data'sources'or'orgs'
• ownership'of'important'data'may'be'uncertain'or'contested.'
• Data'privacy,'data'access'permissions'and'data'privacy'
rules
• Regulatory'requirements
• Negative'data'is'almost'never'published
Data
https://hbr.org/2017/09/only434of4companies4data4meets4basic4quality4standards
Only%3%%of%Companies’%Data%Meets%Basic%Quality%Standards%< HBR

17. Ref:%https://www.kaggle.com/surveys/2017
Obstacles:*Kaggle*survey*on*AI*state*of*affairs

18. • What&is&the&plan?&
• Risks?&
• SWOT?&
• Schedules,&effort&and&budget?&
• Geographically&distributed&groups?
• Role&play&as&start>ups,&Internet&companies,&
and&direct&competitors&to&get&ideas
Plan
• External)help?)
• Consultants?)
• Industry)Partners)/)consortium)/)
collaboration)etc.?
Help
• Middle)management)black)hole
• Is)there)a)buy>in)for)AI?)Are)they)scared?
• Job)loss
• Budget)constraints)for)other)departments
• Scared)of)centralization)of)decision)making?
• Culture
Change+Management• Do)you)have)teams)that)can)do)it?)
• Tools)and)Frameworks)identified?)
• Procured?)
• Current)infrastructure?)
• Compatible)tools?
• Centralized)vs)distributed)capability)
acquisition
Capability

19. https://www2.deloitte.com/us/en/pages/deloitte5analytics/articles/cognitive5technology5adoption5survey.html
What%to%focus
• Helping)Humans)(sift)through)vast)data6)speed)of)response)
• Loan)applications
• Fraud)detection
• Patient)diagnosis)from)reports
• Predict)the)right)stock
• Send)timely)discount)coupon
• Automating)Ops
• Detect)malware
• Shipping)options
• Ad)placement)dates
• Energy)consumption)in)data)centers
• Network)routing
• Placing)block)trades)in)stock)purchases
• Truck)routes)
• AutoGreplacement)of)servers)in)data)centers
• Make)products)smarter
• Suggest)the)right)movie
• Self)driving)autos
• Detect)Sentiment
• Develop)new)great)products
• Voice)assistants
• AutoGemail)reply
• DangerGcomprehending)Surveillance)cameras
AI:$Primary$benefits$to$companies

20. How$to…
Hexagon’s*master*approach
https://www.capgemini.com/wp6content/uploads/2017/09/dti6ai6report_final1.pdf
Step*1
Step$2
AI$Sprint

21. Checklist (in$addition$to$commonsense$change$management$ideas)
• AI$First$motto
• AI$health$check$of$infra,$skills,$processes
• "Brace$for$impact”$(failures$are$possible)$
• Chief$AI$/$Data$Science$/$Digital$Officer$/$Cognitive$Capability$Officer4
• AI$awareness$across$the$org.$
• Central$coordination$of$AI$movement$(preferably$from$higher$echelons)
• Multiple$pilots$– Jeff$Bezos5
• No$need$for$experimentation$(of$AI$projects)
• Take$external$help
• Customer$education$(example,$a$Patient$needs$to$be$assured$of$AI$results,$a$stock$investor$needs$evidence,$etc.)
• Privacy$and$Regulatory$compliance$(example,$who$is$“reading”$your$emailsU$GDPRU$)
• Keep$an$eye$on$your$organization$“Tay1”$projects$or$“Gorilla2”$projects$(especially$for$B2C$companies)
• Simultaneous$MultiZpronged$objectives:$
• Processes$(work$on$internal$processes,$customer$facing$and$Business$objectives)$(Example:$Pfizer3)
• Size$of$projects$(Low$hanging$fruits,$businessZimpacting)
• AI$talent$(train$internal,$hire$talent$from$market,$engage$consultancy$firms)
1https://www.theverge.com/2016/3/24/11297050/tay;microsoft;chatbot;racist
2https://www.usatoday.com/story/tech/2015/07/01/google;apologizes;after;photos;identify;black;people;as;gorillas/29567465/
3,4https://www2.deloitte.com/us/en/pages/deloitte;analytics/articles/cognitive;technology;adoption;survey.html
5https://www.cnbc.com/2017/05/08/amazon;jeff;bezos;artificial;intelligence;ai;golden;age.html

22. Thank&you
SK&Reddy
AI#blogs#at:#########skreddy99
YouTube#AI#Channel#at:##########skreddy99