The document discusses how artificial intelligence is transforming businesses and humanity. It provides an overview of how AI is being applied in various areas like marketing, supply chain management, manufacturing, and customer service to create significant economic value. Case studies are presented on how AI has added value to businesses and how every brand is becoming more conversational. The future of AI companies is discussed, noting they have different scaling and business models than traditional software companies and involve continued human support of AI systems. The document emphasizes the huge opportunities but also risks of AI for humanity.

1. Artificial
Intelligence in
Business
How AI is reshaping Humanity, Business
and Everything

2. Agenda
• Why is AI transformational?
• AI for Planet
• AI in India
• AI in Life
• AI for business
• Market value of AI
• How AI has transformed/transforming businesses- Case study
• Future of AI companies

3. Bill Gates Touts Benefits of Open Research in AI

4. Why is AI transformational?
Much has been written about AI’s potential to reflect both the best
and the worst of humanity. For example, we have seen AI providing
conversation and comfort to the lonely; we have also seen AI
engaging in racial discrimination. Yet the biggest harm that AI is
likely to do to individuals in the short term is job displacement, as
the amount of work we can automate with AI is vastly bigger than
before. As leaders, it is incumbent on all of us to make sure we are
building a world in which every individual has an opportunity to
thrive.” — Andrew Ng, Co-founder, and lead of Google Brain.
Success in creating AI would be the
biggest event in human history.
Unfortunately, it might also be the last,
unless we learn how to avoid the
risks.” — Stephen Hawking, Famous
Theoretical Physicist, Cosmologist,
and Author.
Our
intelligence is
what makes
us human,
and AI is an
extension of
that quality.”
— Yann
LeCun Profess
or, New York
University
Artificial intelligence will reach human levels by
around 2029. Follow that out further to, say,
2045, we will have multiplied the intelligence,
the human biological machine intelligence of
our civilization a billion-fold.” — Ray Kurzweil,
American inventor, and futurist.
Artificial intelligence will reach
human levels by around 2029.
Follow that out further to, say,
2045, we will have multiplied
the intelligence, the human
biological machine intelligence
of our civilization a billion-fold.
Ray Kurzweil, American inventor,
The coming era of Artificial
Intelligence will not be the era of
war, but be the era of deep
compassion, non-violence, and
love.” — Amit Ray, Pioneer of
Compassionate AI Movement and
futurist

5. AI for Planet

6. AI in India

7. When was the
last time?
• You wrote a letter
• You visited a bank
• You watched a movie in the theatre
• You purchased a book
• You drove a car
• You went to a doctor
• You went to a school
• You stepped out of your home

8. AI for Business

9. AI-Driven Companies
Outpacing Traditional
Firms
• Understanding the revolutionary impact that
Artificial Intelligence (AI) has on operations,
strategy and competition is a must for every
business leader.
• It becomes even more important, especially
if you’re planning to launch a digital start-up,
or looking to revamp your traditional
business.
• The age of AI is being guided by the
emergence of new kinds of firms, where the
real value comes from algorithms, rather
than traditional business processes.
• Today, AI sets the prices on Amazon,
recommends songs on Spotify, matches
buyers and sellers on Indigo’s marketplace,
and qualifies borrowers for an Ant Financial
loan.
Leading organizations expect to double the number of Artificial Intelligence (AI)
projects in place within the next year, and over 40% of them plan to actually
deploy AI solutions by the end of 2020.’- Gartner
( Image Source: hbr.org )

10. Does AI
Constitute
Software or
Service or
Both?
• By and large AI environment, its nature and businesses are very different
from traditional software companies. It’s most likely that they will combine
the best of both software and services worlds.
• Software: The major advantage for today’s software, including SaaS, is that it
can be developed once and sold multiple times resulting in recurring
revenue streams that are super-linear in scale with gross margins of 60%-
80%. They are protected by Intellectual Properties (typically the code
generated by the work).
• Service Business: It requires headcount and can be sold only once. The
revenue streams are non-recurring & gross margins lower than 30%-40%.
Scaling is ‘just’ linear at the best optimized level.
• Software & Services: AI companies are increasingly combining the best of
both worlds- software & services with better gross margins, scaling, and
building better defence systems for AI businesses. It results in the emergence
of an entirely new class of AI businesses altogether.
• A number of AI companies that planned to sell pure software products are
increasingly bringing services capability in-house and booking the associated
costs.
• Cloud infrastructure comprises the major chunk and there’s a hidden cost in
store for AI companies.

11. The Market Value Of
Artificial Intelligence
• McKinsey estimates AI techniques
have the potential to create between
$3.5T and $5.8T in value annually
across nine business functions in 19
industries. The study equates the
value-add of between $3.5T to $5.8T
as approximately 40% of the overall
$9.5T to $15.4T annual impact that
could be enabled by all analytical
techniques. The following graphic
compares AI’s impact in billions of
dollars by Al impact as % of total
impact derived from analytics.

12. The Market Value Of
Artificial Intelligence
• AI will generate up to $2.6T additional value in
Marketing and Sales and up to $2T in Supply Chain
Management and Manufacturing. McKinsey found
that the greatest opportunities for AI in Marketing and
Sales are in the Retail and High Tech industries. The
study cites the frequent digital interactions between
businesses and customers that generate larger data
sets AI techniques rely on to complete analyses. The
study team found that e-commerce platforms will
specifically benefit as these platforms collect customer
information including click data or time spent on a web
page, and can then customize promotions, prices, and
products for each customer dynamically and in real
time.

13. The Market Value Of
Artificial Intelligence
• Customer Service Management, Pricing &
Promotions, Next product to buy (NPTB)
individualized offerings, Predictive Maintenance,
and Yield Optimization are the functional areas
AI can create the most incremental
value. Additional Marketing and Sales areas
where AI can contribute the most value include
Customer Acquisition/Lead Generation, Churn
Reduction, Channel Management and Marketing
Budget Allocation. The following graphic
compares the highest potential impact business
problems by functional area. The relative impact
of AI on each functional area is represented by the
size of each area of the graphic.

14. Every
industry,
Every
business is
disrupted
Elon Musk is CEO of Tesla and SpaceX,
has plans to colonize Mars, and thinks
AI may turn humans into its pets. But
beyond the hype and his enormous
net worth and Twitter presence,
here's how Musk's companies are
actually taking on ... virtually every
industry.

15. What is
common and
different
here

16. How AI has added value to business- Case study

17. Every brand is becoming conversational- Case study
Source: Topbots
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18. Future of AI
companies
• Overall, the future of AI companies is not like software
companies as AI businesses involve continued human
cognitive support to AI. The scaling is not as easy as we’d
have imagined. Strong defensibility, which is vital for ‘build
once and sell many times’ software model, doesn’t appear
to come free. Maybe, over a period of time with improved
technological efficacy resulting in reduced costs and market-
wide adoption, it may happen. These qualities make AI much
like a service business. The good part is that the scaling
dynamics, defensive moats, and variable costs are all
determined by market rather than individual businesses.
There are few AI innovators who have left a trail of building
successful products doing consistently good with their
performances. The unfamiliar pattern suggested by data
indicates that the AI market is new, providing huge market
opportunities further forcing the emergence of new
markets.

19. What can AI do for us all the ‘Humanity’

20. What else can AI do?