Presentation by Ralph Haupter to members of the British Chamber of Commerce in Singapore (16th April 2019)

1. Creating a Future
Ready Business
Through AI
Ralph Haupter
President
Microsoft Asia

2. perceive, learn, reason

5. Object recognition Speech recognition Machine reading comprehension Machine translation

6. Microsoft/IDC Asia-Pacific Study 2019:
Future Ready Business: Assessing Asia Pacific’s
Growth Potential Through AI

7. Digital Transformation Impact on
Asia Pacific’s GDP
Forecast additional GDP contribution by DT based on projected GDP (nominal) growth by the World Bank, forecasted based on revenue growth projections by companies
undergoing DT and discounted by percent of companies undergoing DT.
Source: Unlocking the Economic Impact of Digital Transformation in Asia Pacific, Microsoft & IDC Asia/Pacific (2018)
% of GDP derived from digital products or services
2017 2019F 2021F
Digital contribution to GDP Non-Digital contribution to GDP
60%
25%
6%

8. AI will nearly double the rate of innovation &
productivity improvements in Asia Pacific
Q: With the introduction of AI, what is the percentage of additional new innovative products and services your organization expect to produce today and in three years from now?
Q: What are your organization’s key drivers for adopting AI-related solutions?
Q: For the top 3 areas above, please indicate the level of improvement seen today and the expected increase in 3 years’ time
Asia Pacific Businesses = N=1605
1.9x
Improved employee productivity
gains with the introduction of AI
Existing business
as usual (BAU)
1.9x
Percentage of new, innovative products and
services with the introduction of AI

9. Top 5 Drivers to Adopt AI
Q: What are your organization’s key drivers for adopting AI-related solutions?
Companies Who Have Adopted AI (N = 665)
26%
19%
18%
15%
9%
Better Customer
Engagements
Higher Competitiveness Higher Margins Accelerated Innovation Productive Employees
Percentage of business leaders who indicate attribute as #1 driver

10. Only 41% of organizations in Asia Pacific
have started their AI journeys
Q: Which of the following statements best describes your organization’s view on AI?
Business = N=1605

11. AugmentJobs
Help employees do
their existing jobs
better
Reduce repetitive
routine tasks in
employee jobs
Create new knowledge-
based jobs for
employees
Take over jobs and
replace employees
No impact on
employees’ jobs
AI will augment, not displace jobs
Q: How do you think AI will impact the jobs in your organization in the next 3 years?
Asia Pacific Businesses = N=1605
29%
33%
18%
15%
5%

12. 49%
41%
42%
39%
39%
51%
44%
25%
32%
0% 10% 20% 30% 40% 50% 60%
Adaptability and
continuous learning
Communication and negotiation skills
Entrepreneurship and initiative-taking
Intepersonal skills and empathy
Leadership and managing others
Digital skills
IT skills and programming
Scientific research and development
Technology design, engineering and
maintenance
Future Skills by Business Leaders
36%
35%
44%
47%
41%
51%
21%
0% 10% 20% 30% 40% 50% 60%
Basic data input and processing
Literacy, numeracy and communication
Creativity
Critical thinking and decision making
Project management
Quantitative, analytical and statistical skills
General equipment operation, mechanical skills
Demand and Supply of Skills in Asia Pacific:
Today and in 3 years
Q: Which of these skillsets do you see most commonly available in the workforce today, and which do you think is most needed 3 years from now in the AI-enabled workplace?
Asia Pacific Businesses = N=1605 Asia Pacific Workers = N=1585
Numbers rounded up to the nearest %
Skillsets defined here borrowed from the descriptions in the McKinsey Global Institute discussion paper of May 2018 titled Skill Shift: Automation and the future of the workforce
Physical
and
Manual
Skills
Higher
Cognitive
Skills
Basic
Cognitive
Skills
Technological
Skills
Social and
Emotional
Skills
2
3
1
1
2
2
Currently available
Supply > DemandDemand < Supply

13. AI is a game changer

15. Proprietary and Confidential 15

16. • One of world's largest container/logistics companies
• Generates 30m+ vessel data items/month.
• 15 week AI development project with Microsoft
• AI used to improve network operation efficiencies
• OOCL save US$10m/year in operation costs using AI
• Microsoft will train 200 OOCL AI developers this year

17. • Maintaining wind-turbines, up to 100m tall, is arduous
and dangerous
• Takes 5 people up to 6 hours to inspect each turbine
• Clobotics, a start-up, use AI-enabled drones to
perform the same task
• Now takes 1 person, 25 mins to inspect each turbine.
• Quicker, safer, better data/analytics

18. Creating an
AI-enabled business

19. Build AI Platforms
Complement
CRM & Sales
Processes
AI is integrated into your
standard technology stack
The AI Journey – How to Start
Define Business Outcomes
Customization
to spark
business impact
Use AI-based analytics
Accelerate AI Aspiration
Experimented
& applied AI
for
digitalization
AI used for more
complex service
delivery; product
maintenance
Your AI-based
Offerings
Unlocking deep
AI offerings with
data science and
operational
capabilities
AI-powered
products and
services; e.g. voice-
controlled fridge
AIDepth
AI Customization

20. Preparing for Future
Ready Businesses:
AI Business School
“Microsoft AI Business School”

23. Empower every person and
every organization on the
planet to achieve more