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1 Welcome your.. virtual colleagues! Abhijit Tuljapurkar Robotic & Cognitive Automation Lead Deloitte Digital Michael Winther Advanced Analytics Lead AIM

First wave: Office and administrative support 2 Years 8 Years 18 Years Today 2019 2025

2 AUTOMATION. TRANSFORMING HUMAN WORKFORCE 25% Jobs impacted 33% Jobs impacted 47% Jobs impacted First wave: Office and administrative support 2 Years 8 Years 18 Years Today Copyright Deloitte Deloitte Development LLC. All rights reserved. Deloitte Analytics Insight-driven advantage 22 Source: Forrester, Gartner, Oxford Martin

3 Automation of knowledge work Head work Hand work Rule-based Artificial Intelligence based Robotic Process Automation Business Process Management Cognitive engagement Cognitive computing

4 What is Robotic Process Automation? Robotic process automation (RPA) is a way to automate repetitive and rules-based processes. Software commonly known as a robot - configured to model and deploy automation across applications and systems Mimics a human user performing high volume, repetitive and rules-based tasks Quick & easy to implement - minimises the need for costly systems integration, scale up and down at will Copyright Deloitte Deloitte Development LLC. All rights reserved. Deloitte Analytics Insight-driven advantage 44

5 RPA functionality Robotic process automation (RPA) is a way to automate repetitive and rules-based processes Copyright Deloitte Deloitte Development LLC. All rights reserved. Deloitte Analytics Insight-driven advantage 55

7 How Robotic Process Automation works? (Video) RPA solutions automate processes by emulating human activities

9 Automation of knowledge work Head work Hand work Rule-based Artificial Intelligence based Robotic Process Automation Business Process Management Cognitive engagement Cognitive computing

10 Defining AI What is artificial intelligence? may lack an agreed-upon definition AI pioneer Nils Nilsson 1 Leading AI textbook offers 8 definitions 2 1 Nils Nilsson, The Quest for Artificial Intelligence 2 Stuart Russell and Peter Norvig, Artificial Intelligence Copyright Deloitte Deloitte Development LLC. All rights reserved. Deloitte Analytics Insight-driven advantage 10 10

11 Artificial Intelligence / Cognitive technologies Cognitive technologies simulate perceptual and cognitive skills to perform tasks only humans used to be able to do Copyright Deloitte Deloitte Development LLC. All rights reserved. Deloitte Analytics Insight-driven advantage 11 11

Robotics & Cognitive Automation Copyright 2016 Deloitte Development

14 Robotics vs. Cognitive Automation Technology is evolving rapidly, opportunity exists to exploit disruptive technologies to increase the value and pace of change of information assets across service, process, and workforce transformation Realm of Process Robotics (RPA) Structured Data Deterministic Outcomes Realm of Cognitive Automation Unstructured Data Probabilistic Outcomes Mimics Human Actions Augments Human Intelligence RPA Realm: Rules-based tasks Operational processes Efficiency gains Cost gains RPA Technologies: Robotic Process Automation Business Process Management Rules engines Event stream / complex event processing Human-in-the-loop process automation Cognitive Realm: Cognitive analytics Decision making Cognitive Technologies: Machine learning Deep learning Integrated Cognitive Computing Platforms (e.g. IBM Watson) Potential Cognitive Applications: Pharma Cognitive creation of new drugs Hedge Fund Algorithmic trading Banking Financial crime detection Copyright Deloitte Deloitte Development LLC. All rights reserved. Deloitte Analytics Insight-driven advantage 14 14

15 Cognitive Confusion? Artificial intelligence Deep Learning Natural Language Processing Cognitive computing Image recognition? Intelligent automation Machine learning Robotics Sentiment analysis Natural Language Generation Copyright Deloitte Deloitte Development LLC. All rights reserved. Deloitte Analytics Insight-driven advantage 15 15

17 Cognitive technologies Simulating perceptual and cognitive skills to perform tasks only humans used to be able to do Knowledge representation & reasoning Smart advisors Machine learning Speech recognition Image recognition Robotics Natural language processing Copyright Deloitte Deloitte Development LLC. All rights reserved. Deloitte Analytics Insight-driven advantage 17 17

18 Applications of cognitive technologies The three main applications are: product, process and insight Generate insight from vast and complex datasets 03 Insight 01 Product Create better products and services Discover patterns or make predictions Automate internal processes Application Enhance products or services 02 Process Automate business processes Demystifying artificial intelligence: The real opportunities for cognitive technologies in business Copyright 2016 Deloitte Development LLC. All rights reserved. Deloitte Analytics Insight-driven advantage 18

19 Automation of knowledge work Head work Hand work Rule-based Artificial Intelligence based Robotic Process Automation Business Process Management Cognitive engagement Cognitive computing

Automation of knowledge work Spike http://ahc.intelliresponse.

Facebook and to answer questions by voice or text on mobile devices Increased average user engagement time from 4 minutes to 10.

estimated 40% of all calls for the questions in scope, demonstrating a significant efficiency potential for larger scale deployment.

20 Automation of knowledge work Spike SGT Star SGT STAR has an over 94% accuracy rate Answered over 16 million questions to date The first IVA in the industry to answer questions on Facebook and to answer questions by voice or text on mobile devices Increased average user engagement time from 4 minutes to 10.4 minutes Only 3% of questions asked to SGT STAR resulted in live chat Amelia Dutch Bank PoC of 8 weeks The digital agent was able to handle an estimated 40% of all calls for the questions in scope, demonstrating a significant efficiency potential for larger scale deployment. This Amelia proof of concept was the first collaboration between Deloitte and IPsoft in Europe and the first deployment of Amelia in Dutch language. Copyright Deloitte Deloitte Development LLC. All rights reserved. Deloitte Analytics Insight-driven advantage 20 20

Copyright Deloitte 2017 2016 Deloitte Development LLC.

22 Expectations for fast AI But focus should be on potential, learnings and competences in a longer perspective Copyright Deloitte Deloitte Development LLC. All rights reserved. Deloitte Analytics Insight-driven advantage 22 22

23 Cognitive Confusion? Artificial intelligence Deep Learning Natural Language Processing Cognitive computing Image recognition? Intelligent automation Machine learning Robotics Sentiment analysis Natural Language Generation Copyright 2016 Deloitte Development LLC. All rights reserved. Deloitte Analytics Insight-driven advantage 23

24 Cognitive technologies Artificial Intelligence (AI) AI is the vision. Machine Learning (ML) ML is an approach to AI. Deep Learning (DL) DL is a family of ML algorithms. AI is the idea of creating intelligent machines/software. A machine is considered to be intelligent if it acts rational (i.e. it chooses the best option available) while incorporating its environment. ML describes a group of techniques to achieve AI by analyzing large amounts of data. The goal of ML is to find interesting patterns in data and learn from past experiences available in data. DL algorithms are comprehensive ML approaches using Deep Neural Networks (DNN) to find/learn meaningful high-level patterns. DNNs are inspired by the way how the human brain works. Artificial Intelligence Machine Learning Deep Learning Copyright 2016 Deloitte Development LLC. All rights reserved. Deloitte Analytics Insight-driven advantage 24

Negative False Positive Copyright 2016 Deloitte

26 Cognitive step in an automated process Example from insurance company START?? Can an algorithm replace a fully manual process step? House Sale Expert evaluates Report on house conditions Manuel decision insurance yes/no?? STEP 1 Robotics House Sale Expert evaluates Report on house conditions Manuel decision insurance yes/no?? TO BE Machine learning House Sale Algorithm evaluates Report on house conditions Automated decision insurance yes/no? Copyright Deloitte Deloitte Development LLC. All rights reserved. Deloitte Analytics Insight-driven advantage 26 26

28 How to get started? Call Deloitte: Abhijit Tuljapurkar Robotic & Cognitive Automation Lead, Deloitte Digital Mobile: Michael Winther Advanced Analytic Lead, Deloitte Consulting Mobile: Copyright Deloitte Deloitte Development LLC. All rights reserved. Deloitte Analytics Insight-driven advantage 28 28

This publication contains general information only, and none of the member firms of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collective, the Deloitte Network )

Before making any decision or taking any action that may affect your business, you should consult a qualified professional adviser.

29 This publication contains general information only, and none of the member firms of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collective, the Deloitte Network ) is, by means of this publication, rendering professional advice or services. Before making any decision or taking any action that may affect your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication. As used in this document, Deloitte means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting. Copyright 2017 Deloitte Development LLC. All rights reserved. Member of Deloitte Touche Tohmatsu Limited

Global Manufacturing Industry Landscape

Global Manufacturing Industry Landscape Tim Hanley, Deloitte Global Leader, Consumer & Industrial Products Industry group 2017 Manufacturing Forum. 17 October 2017. Perdue University What we will cover