the business value of artificial intelligence - engage customer · 2019-06-17 · customer...

© 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This presentation, including all supporting materials,

is proprietary to Gartner, Inc. and/or its affiliates and is for the sole internal use of the intended recipients. Because this presentation may contain information that is confidential,

proprietary or otherwise legally protected, it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.

@BrianManusama

The Business Value of Artificial Intelligence

1 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates.

“The country that leads artificial

intelligence will rule the world.”Vladimir Putin, President of Russia

Source: CNBC — Sep 4, 2017


N=890

What are the top 3 challenges to the adoption of Artificial Intelligence (AI) within your organization?

Address Fear, Capitalize On Opportunities and Mature Skills

Respondent Selections

Fear of the Unknown

79%

Finding Starting Point

63%

Enterprise Maturity

40%Vendor Strategy

48%


Key Issues

Why does having patience with AI investments matter?1

What are the best practices from early deployments ofAI technology?3

What areas of use will demonstrate the value of AI?2


Key Issues





Products and Services

(50%)

Marketing, Sales and Customer Experience

(47%)

Production or Services Delivery Operations

(40%)Management, Risk Management and

Administration

(39%)

CEO’s Have High Expectations for a Material Business Impact

Higher Than:

Internet of Things

3D Printing

Cloud-Based API Platform

Blockchain

AI Ranked Highest

in Four Out of Five

Business Areas

Nearly HalfAbout Two

in Five

7 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved.7 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved.

Fear of missing out leads to extremely poor decisions


Lack of Awareness Leads to Overblown

Expectations and Disappointment

Amazing innovation, but not Intelligent

Always

ImpossibleInnovation

Aging

Innovation


It’s easy to train DNNs and NLP

AI learns on its own

AI sees like people do

You only need one AI platform

Believing The Hype Is Like Believing You Can Fly

Source: “Hype Hurts: Steering Clear of Dangerous AI Myths“

Dangerous AI Myths:

Buy “an AI” and you’re ready for anything


TIME

AI TAKES PATIENCE V

AL

UE


25% 21% 4%

Be Patient! You’re Not As Far Behind As You Might Think

Percentage of Respondents

No interest

14%

On the radar, no

action planned

35%

In medium- or long-

term planning

In short-term

planning/actively

experimenting

Have already

invested and

deployed

Q: What are your organization’s plans in terms of artificial intelligence?

Base: All Answering, n = 3.138

Source: Gartner 2018 CIO Survey


Ethics Is At The Core Of Artificial Intelligence

92%… of “AI leaders” train their

technologists in ethics,

compared to 48% of other

AI adopters.

63%… of AI adopters have an

ethics committee in place to

review the use of AI.

Based on a global survey among 305 business leaders, more than half of them chief information officers, chief technology offers, and chief analytics officers.

Source: https://www.accenture.com/t20180914T183027Z__w__/us-en/_acnmedia/PDF-86/Accenture-AI-Momentum.pdf

https://www.accenture.com/t20180914T183027Z__w__/us-en/_acnmedia/PDF-86/Accenture-AI-Momentum.pdf


What Is the PRIMARY Role Driving AI Projects?

27%IT

Base: Answered artificial intelligence (AI) section, n = 890

Q. And, which functional role/area is the PRIMARY driver or initiator of artificial intelligence (AI) projects?

14% Customer Service

13% Corporate Leaders

9% Line of Business

7% Finance

7% R&D

73% ...Not IT


Key Issues





What Types of AI Have Organizations Deployed or Planning to Deploy?

Decision-making/

Recommendation

Virtual personal

assistant/chatbots

that communicate in

natural language

Self-learning

mechanical

robotics

Embedded AI in

products that can

learn and adapt to

owners

Other: Machine learning, AI

analytics, search,

cognitive analytics,

prescriptive/descriptive

analytics

74%64%

40%

18% 18%11%

Process

automation

Other

Base: n = 80 Gartner Research Circle Members/Excludes “Haven’t decided yet”

16 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved.

AI augmentation will generate 2.9 trillion dollars

in business value and recover 6.2 billion hours of

worker productivity.

Gartner Predicts in 2021


Forecast: The Business Value of AI, Worldwide 2017-2025

#1

CustomerExperience

Especially, customergrowth and retention.

Near-term Potential Business Value For AI

#2

CostReduction

Boost process efficiencies,improve decision-makingand automate more tasks

See “Forecast: The Business Value of Artificial Intelligence, Worldwide, 2017-2025“

NewRevenue

will be the dominantsource of AI

business value

It Changes in 2021

https://www.gartner.com/document/3868267


“Know Thy Self”Socrates

How do you maximize your value?


What Are Your Intelligent Automation Opportunities?

Error

Reduction

Faster (Reduce Cycle Time)

Standardization Scalability

Cost

Reduction

Practical

Benefits


Use of Artificial Intelligence

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

2017 2018 2019 2020 2021 2022 2023 2024 2025

Millions of Dollars

Decision Support Agents Decision Automation Products

44%

24%

19%

13%

2030


What Is Your Customer Experience of the Future?

Sense Think

Do

▪ Use NLP to find meaning in words, speech and images (and maybe context)

▪ Predict an outcome and next best action

▪ Find a relationship

▪ Create an association

▪ Respond

▪ Optimize a process

▪ Take informed action (automated or assisted)

Learn

▪ Get smarter with every customer interaction

Source: Gartner (May 2018)

“How to Use AI to Create the Customer Experience of the Future“


The business value

of AI will be proportional

to how thoroughly you

reinvent your business.

Efficiency

Gains

Massive

Personalization

Render

Insights

Reinvent

Decision Making

Capture

Knowledge

Share

Expertise

Reinvention Results In The Most Business Value


Transform Decision Making

and Process Automation

Business Model

Innovations

Customer Experience

Innovations

Data and

Analytics

Strategy

Create Your Strategy: Identify Data-Driven Opportunities


AI Will Be Net Job Creator

-1,000,000

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Nu

mb

er

of

Jo

bs

Loss Gain NetIn 2020, AI becomes a positive net job

motivator, creating 2.3 million jobs while

only eliminating 1.8 million jobs.


Workers Prefer to Have AI Assist Rather Than Manage or Work Alongside Them

AI Role in the Workplace — Employees PreferencePercentage of Respondents

9%The Manager(above the worker)

52%Assistant

on demand 32% Proactive

assistant

None of the above15%11% The Co-worker (working next to the worker)

The

Worker

Base: Employed, n = 2,708

Q: If AI were to be implemented in your workplace, what role do you prefer that it take?


Agenda





Use

CasesApplications

Common

Solution

Areas

Core AI

Technologies

Objectives/

Business

Results

… Then Evaluate How to Accomplish Them.

Define Objectives First …

Sources: “A Framework for Applying AI in the Enterprise,” (G00368243)

“How to Define and Use Smart Machine Terms Effectively,” (G00301283)


https://www.gartner.com/document/3238817?ref=solrAll&refval=208100413&qid=d4071a82c1a72061187eaf733f2a1c9b


Gain Experience and Review Objectives

Use

CasesApplications

Common

Solution

Areas

Core AI

Technologies

Objectives/

Business

Results

Continuously Iterate How to Accomplish Objectives


Art of the Possible: Information Innovation Approach

Could we adapt

what they’ve done?

What could the data tell us?What is important to us?

POSSIBILITYAssess

Feasibility

Prove with

Data Science<< >>

?


Listen to Consumer Preferences

25%

28%

47%

53%

58%

Better decision-making

Be healthier

Have an easier access to information

Save money

Save time

37% 55 to 74 years old

42% Retired without kids

61%65 to 74 years old

Which of the following benefits would make you want to personally use AI?

2018 Gartner Consumer AI Perceptions StudyBase: All respondents, n=4,019

Top Drivers of AI Use Vary With Age and Life-stage


Pursue Human-Machine Symbiosis to Maximize Value

Planning

Actions

Cobots

Human-in-the-Loop

Domain Training

Sensing

Insights

Predictions

Upskilling

Domain Collaboration

Advisors

Assistants

Agents

Prescriptions

Humans

Aiding

Machines

Machines

Aiding

Humans

Humans + Machines Can Do More Together Than Either Can Do Alone


One of The Most Important Business Case Considerations?

Refer to “Seven Factors That Make Business Cases for Artificial Intelligence Projects Different“

Primary Issue

Need to spend

more time on

data, training

and algorithms

What To Do About It

1. Account for the importance of data

2. Select business problems that have enough supporting data

3. Budget for adequatedata preparation efforts

DATA



What Do We Do Now?


Focus on outcomesSeveral generations (decades)

of AI-enriched applications are

yet to come.

BE PATIENT BUTDON’T WAIT

Call to action:

Learn from all industriesAI is advancing rapidly and

many are achieving powerful

‘tactical victories’.

FOLLOW FAST

Call to action:

BuyToo much focus on build

today and too much angst

over skill shortages.

UNDERSTANDOPTIONS

Call to action:

Foster AI literacyMany vendors will claim AI is in

their product – some claims will

be accurate.

INTERROGATECLAIMS

Call to action:


TECHNOLOGY HUMANITY+


“Can a robot write a

symphony?

Can a robot turn a canvas into

a beautiful masterpiece?”


“Can you?”

© 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This presentation, including all supporting materials,

is proprietary to Gartner, Inc. and/or its affiliates and is for the sole internal use of the intended recipients. Because this presentation may contain information that is confidential,

proprietary or otherwise legally protected, it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.

@BrianManusama

Thank you

the business value of artificial intelligence - engage customer · 2019-06-17 · customer...

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