AI Today and Tomorrow

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1 AI Today and Tomorrow How AI will fundamentally change the way we do business Susan Malaika Senior Technical Staff IBM, AI & Data 28 September 2018

2 What is AI? Why is it relevant for our business? How can IBM help us apply AI?

3 Blockchain, AI & Standards in Context Blockchain: Provides a common shared digital ledger serving businesses in a variety of industries and gives a single source of truth. Important roles in a blockchain environment are: Regulators who enforce the rules of play Industry groups who provide the setting for a shared ledger and advise their members on blockchain adoption Artificial Intelligence: Provides tools to interpret digital data, learn from data, predict the future in order to take suitable actions. An important area of AI, Fairness & Trust, is emerging to ensure that the AI complies with rules of play & behaves ethically. Standards: In order to build a shared ledger, and to integrate data managed by a number of separate business entities, it is essential to have a common set of definitions, terms, and identifiers across all the partners in the shared ledger ecosystem 3

4 A New Era of Computing AI Systems learn and interact naturally with people to amplify what either humans or machines could do on their own. They help us solve problems by penetrating the complexity of Big Data. AI Systems Era Tabulating Systems Era Programmable Systems Era Client Server World Wide Web Data is the next natural resource AI is the approach to exploit that resource 4

5 The Time for AI has Come Speech Recognition lets you go hands-free Facial Recognition unlocks your phone Fraud Detection protects your credit Autonomous Vehicles detect pedestrians Machine Learning and AI are everywhere Recommendations help you shop faster Machine Vision detects cancer early Spam Detection unclogs your Inbox Chat Bots route calls quicker 5

6 Massive Investments in AI $5 billion of AI investments in 2016 The AI market size is expected to increase by almost 40x to nearly $60B by 2025 [ref Tractica] By 2020 AI will be a top five investment priority for more than 30% of CIOs [ref Gartner]. 6

7 Artificial Intelligence, Machine Learning & Deep Learning 7

8 Training Computers Instead of Programming Them 8

9 What is AI All About Problems Potential AI Solutions Current AI Solutions Learning Styles Programmed Algorithmic Solutions Machine Learning Solutions Learning Methods 9

10 IBM Corporation AI is not a new field The term Artificial intelligence was first coined by John McCarthy in 1956 when he held the first academic conference on the subject.

11 What is AI? Why is it relevant for our business? How can IBM help us apply AI?

12 AI procurement capabilities enable a new level of supply chain optimization Electronics contract manufacturer An electronics contract manufacturer sets the goal of becoming the leading cognitive procurement organization. This US-based supply chain management (SCM) and electronics contract manufacturing service provider has more than 100,000 employees around the world and revenues of more than USD 10 billion. Business challenge For contract manufacturing companies, it s hard to overstate the importance of an efficient, low-cost supply chain. This company knew that to drive more data-driven decision making among procurement specialists, it needed to be smart about all of its suppliers not just the biggest. That meant addressing the reality that procurement staff simply lacked the time to dig out and analyze volume and pricing details for thousands of smaller supplier relationships. AI transformation The company put in place a AI procurement solution that instantly brought all supplier relationships under the same microscope. The solution pulls together diverse unstructured data within and outside the company and visualizes it in a way that lets specialists make quick and accurate decisions. By bringing the same granularity of insight to all supplier relationships, the company opened a new frontier for supply chain optimization. Watson IoT, Watson Visual Recognition, IBM Cloud Business benefits >90% decrease In the time required to investigate and solve supply chain issues 300% faster Creation of sales quotes in response to customer requests 6X average increase In the time available for procurement analysts to identify costsaving opportunities 12

13 AI has the potential to provide supply chain management with operational excellence Three recommendations to fast-start your AI based supply chain 1. Imagine the future. Integrate the business strategy with the new operating model. Develop a roadmap to digital reinvention that embodies envisioning sessions and operating use cases. Align metrics with target operating model. 2. Understand your data. Ensure that the data strategy targets structured and unstructured data needed to address the operational objective identified in the use cases. Weather and IoT device data can provide insight and automate action. 3. Ready your AI skillset. The nature of work is changing. Employees need to be equipped with digital problem-solving skills. Basic computer technology and math backgrounds form the backbone of most AI programs. 13

14 What is AI? Why is it relevant for our business? How can IBM help us apply AI?

15 What is Watson Watson is an AI platform made up of pre-trained AI Services It mimics how humans learn and interact It understands imagery, language, and other unstructured data It learns with each data point, interaction and outcome, it develops and sharpens expertise so it never stops learning With abilities to see, talk and hear, it interacts with humans 15 15

16 Supply Chain Today & Tomorrow Today Watson Supply Chain (Prediction, Risk Management, Collaboration, AI ) Blockchain Shared Ledger Standards Tomorrow 16

17 So What s next for AI? AI Everywhere Healthcare Finance Agriculture Government Education Energy Science Business solutions Deeper Insights Data-centric systems Distributed Deep Learning Neuromorphic systems Quantum computing Homomorphic encryption Machine foresight Cognitive discovery Engagement Reimagined Human-machine collaboration New AI modalities Augmented reality Global trade logistics Blockchain for payments Personalization at Scale Personalized healthcare Micro-segmentation Personalized finance Targeted marketing Personalized learning Individualized solutions Instrumented Planet Environmental solutions Digital agriculture Connected cars Geospatial-temporal data and analytics Smart sensors IBM / 2018 IBM Corporation 17

18 What does it take to trust a decision made by a machine? (Other than that it is 99% accurate) Is it fair? Is it easy to understand? Did anyone tamper with it? Is it accountable? 18

19 Trust in AI Systems Like nutrition labels for foods or information sheets for appliances, factsheets for AI services would provide information about the product s important characteristics. Standardizing and publicizing this information is key to building trust in AI services across the industry. 19

20 Opportunity Opportunity Opportunity Opportunities to Consider Use artificial Intelligence to transform customer interactions and improve operations Conduct cross-silo analysis to extract maximum insights from existing data using AI-enabled systems Invest in, experiment with, and deploy AI across the enterprise to get good at this critical but emerging capability Leverage blockchain solutions to improve collaboration, security, and trust Invest in projects that scaleup successful blockchain initiatives to facilitate lower cost and/or higher confidence services Collaborate more closely with members of the transportation ecosystem to deliver and derive value Digitize transportation value chains to improve operations and delight end consumers Embrace the digital revolution that is sweeping the market by investing in IoT, cloud, and other emerging technologies Leverage the data from newly instrumented operations to further improve performance 20 20

21 Handy Links Watson Supply Chain AI Fairness Adversarial Robustness Toolkit Factsheets for AI Services Code Patterns 21

22 Copyright IBM Corporation All rights reserved. The information contained in these materials is provided for informational purposes only, and is provided AS IS without warranty of any kind, express or implied. Any statement of direction represents IBM's current intent, is subject to change or withdrawal, and represents only goals and objectives. IBM, the IBM logo, and other IBM products and services are trademarks of the International Business Machines Corporation, in the United States, other countries or both. Other company, product, or service names may be trademarks or service marks of others.