AI in government: Could smart technology revolutionize the public sector? The Dbriefs Federal & State Government series

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1 AI in government: Could smart technology revolutionize the public sector? The Dbriefs Federal & State Government series Mark White, Principal, Deloitte Consulting LLP Marc Mancher, Principal, Deloitte Consulting LLP Christopher Huff, Senior Manager, Deloitte Consulting LLP July 25, 2017

2 Agenda Capability overview Use cases Where to begin Questions & answers Copyright 2017 Deloitte Development LLC. All rights reserved. AI in government: Could smart technology revolutionize the public sector? 2

3 Poll question 1 Which of the following best describes your role? IT/Technology Mission focus Finance Human resources Other Don t know/not applicable Copyright 2017 Deloitte Development LLC. All rights reserved. AI in government: Could smart technology revolutionize the public sector? 3

5 The digital labor spectrum consists of robotics, cognitive and artificial intelligence capabilities Deloitte Process Robotics (DPR) is designed to be easy to implement. Advanced Artificial Intelligence (AI) is often the most complex and transformative. Deloitte Process Robotics Cognitive Advanced Artificial Intelligence Mimics human actions using RPA software Used for rules-based processes such as invoice processing Software used to capture and interpret existing applications for the purpose of automating transaction processing, data manipulation, and communication across multiple IT systems - Deloitte, The Robots are Coming Screen scraping data collection Rules based business process management Tactical toolset to automate repetitive tasks Cheaper and faster process efficiency Mimics/augments quantitative human judgment Processes requiring judgment such as commercial contract understanding, insights, and implications Automate non routine tasks involving intuition, judgment, creativity, persuasion, or problem solving - Deloitte, Automate This Data input and output in any format Pattern recognition within unstructured data Replication of judgment based tasks Basic learning capabilities for continuous improvement to quality and speed Mimics human intelligence Systems that replicate natural interactions The theory and development of computer systems able to perform tasks that normally require human intelligence. - Deloitte, DU Press Cognitive Technologies Natural language recognition and processing Dealing with unstructured super data sets Hypothesis based predictive analysis Self-learning rules continuously rewritten to improve performance Sources: Copyright 2017 Deloitte Development LLC. All rights reserved. AI in government: Could smart technology revolutionize the public sector? 5

6 Deloitte Process Robotics (DPR) level setting DPR is delivered through software that can be trained to undertake rules-based tasks. DPR is Software Rules-based Here and now A tool Quick and inexpensive to implement and sustain DPR is not Mechanical / Physical walking, talking robots Cognitive / AI / Machine learning Conceptual A system or application Expensive and lengthy to procure and implement Opening and attachments Logging into web/enterprise applications Moving files and folders Copying and pasting Filling in forms What it can do Scraping data from the web Connecting to system APIs Making calculations Extracting structured data from documents Collecting social media statistics Reading and writing to databases Following if/then decisions/rules Copyright 2017 Deloitte Development LLC. All rights reserved. AI in government: Could smart technology revolutionize the public sector? 6

7 Poll question 2 Do you believe Digital Labor solutions can be implemented in: Less than 12 months More than 12 months Don t know/not applicable Copyright 2017 Deloitte Development LLC. All rights reserved. AI in government: Could smart technology revolutionize the public sector? 7

9 Process robotics has resulted in rapid ROI and benefits across various government functions Funds disbursement process Financial collection process Lab proficiency testing process Cash reconciliation process 87% 85% reduction in processing time 205% ROI reduction in transactional task hours 30% 98% reduction in processing time 89% time savings reduction in processing time Security Fitness Assessment (SFA) process Uploading financial adjustments process Un-submitted time valuation process 72% reduction in transactional task costs 100% reduction in transactional task hours 92% reduction in processing time 25% increase in process accuracy 95% reduction in transactional task hours 68% reduction in processing time 92% reduction in labor costs 4% 95% reduction in transactional task hours increase in process accuracy Actual Use-Case Results Copyright 2017 Deloitte Development LLC. All rights reserved. AI in government: Could smart technology revolutionize the public sector? 9

10 End-to-end human resources process As-is Process Flow Use-case example for automation opportunity in HR suitability background checks for national security and sensitive positions Start Receive Resume and complete interview for Potential candidate 1 ILLUSTRATIVE Convert resume into standard template for processing 2 Average time per HR action 15 mins Enter candidate information into applicant tracking tool (service now) 3 Accuracy 90% candidate to complete (or update) background check forms (e.g. SF86) 4 Employee process steps 9 No Receive completed forms and enter responses into service now 5 Forms completed correctly Yes Check responses against suitability screening criteria Does candidate meet suitability criteria Yes Updated service now to initiate hiring action Hire and onboard new employee END 6 Initiate candidate notification/rejection process No Copyright 2017 Deloitte Development LLC. All rights reserved. AI in government: Could smart technology revolutionize the public sector? 10

11 End-to-end human resources process To-be Process Flow Use-Case example for automation opportunity in HR suitability background checks for national security and sensitive positions Start Receive Resume and complete interview for Potential candidate 1 ILLUSTRATIVE Process redesign Convert resume into standard template for processing Enter candidate information into applicant tracking tool (service now) 1 Average time per HR action 5 mins Accuracy 99.9% candidate to complete (or update) background check forms (e.g. SF86) 2 Employee process steps 3 Receive completed forms and enter responses into service now 3 Advanced controls / business logic Exception process No Forms completed correctly Yes Check responses against 4 suitability screening criteria 5 3 Does candidate meet suitability criteria Yes Updated service now to initiate hiring action Hire and onboard new employee END 2 Initiate candidate notification/rejection process No Copyright 2017 Deloitte Development LLC. All rights reserved. AI in government: Could smart technology revolutionize the public sector? 11

12 Poll question 3 Do you think successful Digital Labor programs will be used as a business-led or IT-led initiative? Business led / IT as critical enabler IT led / business as users Co-led collaborative program Don t know/not applicable Copyright 2017 Deloitte Development LLC. All rights reserved. AI in government: Could smart technology revolutionize the public sector? 12

14 What makes a process a good candidate for DPR? Criteria Description Sub-Criteria Number of systems used Process should typically require employees to access multiple independent systems to complete the process. List of systems used Ease of access / integration Transaction volume Prone to errors or re-work Process need not necessarily be limited to high-value transactional processes. Any process that is labor intensive, time-consuming, or has high-cost impact errors qualifies. Manual activities in the process today result in errors due to human operator mistakes (e.g. complexity of work or infrequency of activity). Annual volume subject to seasonality Error frequency error impact Process predictability Process needs to be defined in terms of a set of unambiguous business rules. Size of decision trees business logic complexity business rule documentation Copyright 2017 Deloitte Development LLC. All rights reserved. AI in government: Could smart technology revolutionize the public sector? 14

15 What makes a process a good candidate for DPR? (cont.) Criteria Description Sub-Criteria Rules based exception handling Simpler processes with few exceptions in delivery are excellent candidates in the beginning. With experience, there is potential to expand to processes that are more complex or error prone. Number of exceptions business rules for exceptions Manual work involved Processes with little automation support today and large amounts of manual work. Number of keystrokes number of FTEs System upgrade timing Process should be avoided if it interacts with a system scheduled for a major planned upgrade within 6 months. Major upgrades beyond minor enhancements need to be planned in order to prevent rework. Date of upgrade system importance to workflow enhancement scope Controls importance Process that is high-risk or has sensitive data that requires strong oversight and set of internal controls. Process risk levels audit data requirements regulatory demands Copyright 2017 Deloitte Development LLC. All rights reserved. AI in government: Could smart technology revolutionize the public sector? 15

Deloitte process robotics: Build-a-bot workshop The Build-a-Bot Workshop is a fun and interactive session that introduces you to Deloitte Process Robotics (DPR), lets you roll-up your virtual sleeves

Build a Bot Our experience & approach Robotics & Cognitive Automation Spectrum What Process Robotics Is and Isn t Business Case for Process Robotics Transformative Impact of Process Robotics Platform

ticker research Purchase request analysis Calculator operations 25 mins. 45 mins. 20 mins.

16 Deloitte process robotics: Build-a-bot workshop The Build-a-Bot Workshop is a fun and interactive session that introduces you to Deloitte Process Robotics (DPR), lets you roll-up your virtual sleeves to build your own bot, and provides an opportunity to understand its applicability to your business. Agenda Topic Description Time What is Process Robotics? Build a Bot Our experience & approach Robotics & Cognitive Automation Spectrum What Process Robotics Is and Isn t Business Case for Process Robotics Transformative Impact of Process Robotics Platform Tour Facilitated Bot Development Workshop Multidisciplinary Team Intersection of Transformation, Automation, and Analytics Qualifications across Industry and Government Bots you can build Stock ticker research Purchase request analysis Calculator operations 25 mins. 45 mins. 20 mins. Key outcomes After this session, you should have a/n Excitement for Process Robotics and its transformative impact on business Understanding of applicability in your business Super cool Bot that you built I now have a much better understanding of Process Robotics and how it fits into my organization. - Participant, National Security Client I named my bot Lenny. I can t wait to add him to my team! - Participant, Defense Client Copyright 2017 Deloitte Development LLC. All rights reserved. AI in government: Could smart technology revolutionize the public sector? 16

17 Poll question 4 What are the biggest potential barriers to AI Digital Labor solutions? Vendor lock Organizational politics IT security / cyber Other Don t know/not applicable Copyright 2017 Deloitte Development LLC. All rights reserved. AI in government: Could smart technology revolutionize the public sector? 17

19 Join us September 7 at 2 p.m. ET as our Federal & State Government series presents Creating the Agile mindset in government Copyright 2017 Deloitte Development LLC. All rights reserved. AI in government: Could smart technology revolutionize the public sector? 19

20 Eligible viewers may now download CPE certificates. Click the CPE icon in the dock at the bottom of your screen. CPE Copyright 2017 Deloitte Development LLC. All rights reserved. AI in government: Could smart technology revolutionize the public sector? 20

21 Contact information Mark White Principal Deloitte Consulting LLP Connect with me on LinkedIn Marc Mancher Principal Deloitte Consulting LLP Connect with me on LinkedIn Christopher Huff Senior Manager Deloitte Consulting LLP Connect with me on LinkedIn Copyright 2017 Deloitte Development LLC. All rights reserved. AI in government: Could smart technology revolutionize the public sector? 21

22 This presentation contains general information only and Deloitte is not, by means of this presentation, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This presentation is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this presentation. Copyright 2017 Deloitte Development LLC. All rights reserved. AI in government: Could smart technology revolutionize the public sector? 22

As used in this document, Deloitte means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.

23 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. 36 USC Copyright 2017 Deloitte Development LLC. All rights reserved.

Process Robotics. Breakout Session #: XXX Presented by: XXX. Date: XXX Time: XXX

Process Robotics. Breakout Session #: XXX Presented by: XXX. Date: XXX Time: XXX Process Robotics Breakout Session #: XXX Presented by: XXX Date: XXX Time: XXX 1 Agenda What is the Automation Spectrum? What is Process Robotics? What Processes are Suitable for Automation? What are the