AI: The Gateway for New Ideas
I recently listened to the Freakonomics podcast, “Are we Running Out of Ideas?”, where economists discuss the relationship between new ideas and productivity, as measured by economic growth. The premise of the podcast is that innovative ideas that have economic impact are becoming rarer. Steve Levitt, an economist from the University of Chicago featured in the podcast, described the reason for slowing ideation. “People spend far too little time devoted to trying to come up with ideas and far too much time, in contrast, in executing on day-to-day things that could be transformed through the power of ideas,” Levitt said.
Levitt’s statement is ironic when one considers the capabilities of cognitive technology. There are many day-to-day tasks that will be eliminated with artificial intelligence, similar to how mechanization diminished the need for human labor. Ideas that materialized such as the engine, electricity or the Internet were revolutionary enough to create entirely new technological fields. AI, although not a recently developed concept, is set to become the epicenter of the next ecosystem of new ideas.
A recent discussion from Mckinsey Global Institute’s most recent paper, Artificial Intelligence: The Next Digital Frontier, states “More than 160 global use cases across a variety of industries found that only 12 percent had progressed beyond the experimental stage,” with the technology. Mckinsey’s study indicates that although the potential impact of AI on businesses may be astounding, current commercial strides towards adoption are often exaggerated. AI adoption rates in industries such as retail and healthcare lag the furthest behind. Now is a critical time for business leaders in these areas to start formulating AI-focused ideas that they can execute once investment levels grow within their respective verticals.
Cognitive technology will create new idea ecosystems, even in slower adopting industries, like retail. AI commercialization will equip marketers with insight, which will enable them to individualize shopping experiences across all channels. Below is an example of how machine learning, a prominent pillar of AI, would enhance customer journeys.
Imagine you are making your weekly round through the aisles of your nearest major grocery store. There is a screen built into your cart, where you can bring up your profile by scanning your rewards card. The application now has access to your purchase history and social media accounts, if you so choose to connect them. As you shop, the technology recommends a meal based on the TASTY videos you may have shared, and offers to guide you to where the ingredients are shelved. The algorithm also recommends a white wine that should pair best with the new recipe based on what it has learned from other shoppers and your previous wine purchases.
Technological advancement is cyclical. Someone has a revolutionary idea, which leads to the innovation of new technology. That technology then creates the possibility for further ideation. AI applications will accelerate human’s ability to learn – enabling businesses in every industry to rapidly discover insights. The commercialization of AI will create an entirely new universe of ideas and fresh technology to follow.
Resources:
Dubner Produced by Greg Rosalsky, Stephen J. “Are We Running Out of Ideas?” Freakonomics, freakonomics.com/podcast/no-new-ideas/.