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Artificial Intelligence and Advanced Automation Opportunity or Disruption? January 18, 2017

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Page 1: Artificial Intelligence and Advanced Automation...2 Artificial intelligence Machine Learning Automation Robotics • Semantics 3 • Recent Technical Capability Advancement u Pattern

Artificial Intelligence and Advanced Automation

OpportunityorDisruption?

January18,2017

Page 2: Artificial Intelligence and Advanced Automation...2 Artificial intelligence Machine Learning Automation Robotics • Semantics 3 • Recent Technical Capability Advancement u Pattern

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Artificial intelligence

Machine Learning

Automation

Robotics

•  Semantics

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• RecentTechnicalCapabilityAdvancement

u  Pattern Recognition•  MachineLearning-supervised,unsupervised,reinforcementü  Collecting,analyzing,recognizingàPredicting,prescribing,acting

Source–“TheSecondMachineAge”,E.BrynjolfssonandA.McAfee,2014

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• RecentTechnicalCapabilityAdvancement

u  Complex Communication•  Audio,Visual,Kinestheticü  Interactionthroughspeech,display,touch

Source–“TheSecondMachineAge”,E.BrynjolfssonandA.McAfee,2014

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• RecentTechnicalCapabilityAdvancement

u  Digital Fluency•  Translationü  Instantaneouscapability,broadscopeofcombinations

Source–“TheSecondMachineAge”,E.BrynjolfssonandA.McAfee,2014

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• RecentTechnicalCapabilityAdvancement

u  Robotics and ChatBots•  Mobility,navigation,interaction–machine-to-machine,machine-to-humanü  Automatedfactories,warehouses,assemblylines;Customerservice

Source–“TheSecondMachineAge”,E.BrynjolfssonandA.McAfee,2014

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• RecentTechnicalCapabilityAdvancement

u  Writing•  Prose,reportsü  Buildsummariesbyconsuminglarge,detaileddocuments

Source–“TheSecondMachineAge”,E.BrynjolfssonandA.McAfee,2014

www.beagle.ai

https://automatedinsights.com/wordsmith

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• RecentTechnicalCapabilityAdvancement

u  3D Printing•  Ink,Metal,Plastic,Concrete,Cellsü  Prototyping,Toys,Manufacturingreplacementparts,humanbodyparts

Source–“TheSecondMachineAge”,E.BrynjolfssonandA.McAfee,2014

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•  FactorsDrivingtheIncreasingPaceofChangeu Exponential Growth of Computing

•  Moore’slaw–doublingofcomponentsonanintegratedcircuit•  We’reinthe“secondhalfofthechessboard”(1965-???)•  Appliestoprocessors,memory,sensors

ü  SimultaneousLocalizationAndMapping(SLAM)

Source–“TheSecondMachineAge”,E.BrynjolfssonandA.McAfee,2014

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•  FactorsDrivingtheIncreasingPaceofChange

u  Digitization of Everything •  TheInternetofThings(IoT)–volume,velocity,variety•  Theeconomicsofbits–non-rival,closetozeromarginalcostofreproduction•  Approachingyottabytesofinformation(1024)ü  Waze–digitalmaps,GPS,sensor,social

Source–“TheSecondMachineAge”,E.BrynjolfssonandA.McAfee,2014

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•  FactorsDrivingtheIncreasingPaceofChange

u  Recombinant Innovation•  Productivity,GrowthandGeneralPurposeTechnologies•  Theprimaryconstrainttogrowthistheabilitytogothroughallcombinations•  Businessmodelsthatarenewand/ortechnology-enabledü  Affinova–crowdsourcing,choice-modelingalgorithms

Source–“TheSecondMachineAge”,E.BrynjolfssonandA.McAfee,2014

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Discussion–whatareyourfeelingsaboutArtificialIntelligence?

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• Wherethethoughtleadersare…

Source-http://www.vanityfair.com/news/2017/03/elon-musk-billion-dollar-crusade-to-stop-ai-space-x

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Source–CBInsights:"TheStateofArtificialIntelligenceReport”,April2017,

• Wheretheinvestmentsare…

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• Whattheresearchsays…

Study PerspectiveFO OccupationsAGZ TasksPWC Hybrid

Source–“UKEconomicOutlook,Section4:WilltheRobotsStealOurJobs?”,PWC,March2017

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24% of the 702 jobs listed had at least a .9 probability of automation

Source–“TheFutureofEmployment:HowSusceptibleareJobstoComputerisation”,C.FreyandM.Osborne,Sept2013

• Whattheresearchsays(continued)…

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Exchanging informationTraining othersPresenting……….Planning own activitiesPlanning activities of others……….Reading instructionsWriting articlesFilling out formsCalculating shares or percent………Using programming languageUsing communication software

Source–“TheRiskofAutomationforJobsinOECDCountries”,M.Arntz,T.GregoryandU.Zierahn,June2016

• Whattheresearchsays(continued)…

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• Whattheresearchsays(continued)…

Source–“AFutureThatWorks:Automation,EmploymentandProductivity”,McKinseyGlobalInstitute,January2017

About half the activities…have the potential to be automated by adapting currently demonstrated technology…..

While less than 5% of all occupations can be automated entirely….about 60% of all occupations have at least 30% of constituent activities that could be automated….

More occupations will change than will be automated away.

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•  Samplingrecentheadlines…

http://money.cnn.com/2017/07/26/technology/future/farming-ai-tomatoes/index.html

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•  Samplingrecentheadlines…

https://consumerist.com/2017/03/29/yum-brands-ceo-robots-will-take-over-fast-food-jobs-in-next-10-years/

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•  Samplingrecentheadlines…

https://www.nytimes.com/2017/03/28/business/dealbook/blackrock-actively-managed-funds-computer-models.html

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•  Samplingrecentheadlines…

https://www.linkedin.com/pulse/uber-freight-its-just-truck-drivers-whose-jobs-risk-john-mcdermott

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•  Samplingrecentheadlines…

http://www.npr.org/2017/01/16/510096767/robot-lawyer-makes-the-case-against-parking-tickets

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• Workforceview…

http://fortune.com/2017/05/01/automation-jobs-will-put-10000-humans-to-work-study-says/

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• Workforceview…

https://www.cbinsights.com/research/jobs-automation-artificial-intelligence-risk/?utm_source=CB+Insights+Newsletter&utm_campaign=2457e5fe09-Top_Research_Briefs_10_14_2017&utm_medium=email&utm_term=0_9dc0513989-2457e5fe09-89185621

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• Workforceview…

Source–https://willrobotstakemyjob.com/

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Discussion–whatwillbetheimpactonyourworkforce?

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• Whattheresearchsays(continued)…

Source–“ReshapingBusinessWithArtificialIntelligence”,MITSloanManagementReview,Fall2017

The gap between ambition and execution is large at most companies.

Our research reveals large gaps between today’s leaders – companies that already understand and have adopted AI – and laggards.

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•  Samplingrecentheadlines…

https://www.forbes.com/sites/mariyayao/2017/08/08/industrial-ai-factories-of-future/#113be5ba128e

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• Workforceview…

http://fortune.com/2017/05/01/automation-jobs-will-put-10000-humans-to-work-study-says/

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• Workforceview…

https://www.linkedin.com/jobs/artificial-intelligence-jobs/

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• Workforceview…

https://www.indeed.com/q-Artificial-Intelligence-jobs.html

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• Workforceview…

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• Workforceview…

https://www.udacity.com/ai

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• Workforceview…

https://www.insidehighered.com/news/2017/09/12/author-discusses-new-book-about-making-college-graduates-robot-proof-era-artificial

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• Workforceview…

https://www.wired.com/story/googles-learning-software-learns-to-write-learning-software/

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Discussion–wherewillyourArtificialIntelligencecompetenciescomefrom?

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• Abalancedperspective…

Source–“TheSevenDeadlySinsofAIPredictions”,RodneyBrooks,MITTechnologyReview,Vol120|No6

1.  OverestimatingandUnderestimating2.  ImaginingMagic3.  PerformanceversusCompetence4.  SuitcaseWords5.  Exponentials6.  HollywoodScenarios7.  SpeedofDeployment

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• Apersonalperspective…

Networks

CoreSystems

Web,Mobile,Social,BI

ArtificialIntelligence

Four eras of Technology advancement…

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• Apersonalperspective…

Some technology trends will continue…

ü Decreasingphysicalhardwareon-premiseinthedatacenter(Hardwarevs.Software)Cloud,SoftwareDefinedNetworks,OpenNetworkAutomationPlatform,etc.

ü IncreasingtechnologyoutsideoftheITdepartment(ITvs.OT)DigitalProperties–marketing/salesIoT,AR/VR-everywhereRobotics,Chatbots–operations,backofficeAnalytics,MachineLearning–operations,backoffice

ü Increasingrequirements(andthereforedemand)fortechnology(More…)

Moredevices,moresensors,moredata,morecapabilities,moreintegration,moreusers,moreusage

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• Apersonalperspective…

Some things are constant with Technology…

ü Technologyisnotastrategy(hint:itcanbeameanstosupportstrategy)

ü Technologyisnotanobjective(hint:itcanbepartofthescopetoachieveanobjective)

ü TechnologyIQisfundamental(hint:itsinherentcomplexityfavors“whitebox”over“blackbox”management)

ü Technologyispartofalargersystem(hint:don’tforgetabouttalent,culture,process,metrics,rewards,etc.)

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• Whatdoyouthink?

What will this latest advancement in automation mean for your:

Organization?

Industry? Region?

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• ThankYou!Kurt HahlbeckHugo [email protected]/in/kurthahlbeck

Oliver BuechseMy Strategy [email protected]/in/oliverbuechse

AdvancingAIWisconsin.com