The Artificial Intelligence Revolution
Starting in the late 1950’s, the Digital Revolution began as the largest transformation of society in numerous centuries. Artificial Intelligence (AI), one of the most influential and impactful technologies in the Digital Age, is revolutionizing how society and entire industries operate. According to PricewaterhouseCoopers (PwC), an auditor in the Big Four, AI will contribute over $15.7 trillion to the global economy and grow local GDP’s by 26 percent. With an unprecedented and artificially intelligent future ahead, many questions about the technology are arising. This article will discuss the basics of AI, the importance of implementing AI, and its implications on various industries.
What is AI? Why is it Important?
AI is a subset of Computer Science that pertains to performing tasks that typically require human intelligence such as visual perception, speech recognition, decision making, and translating between multiple languages. These tasks may appear impossibly daunting for a computer to perform, but once the technology behind AI is explained these extraordinary breakthroughs become feasible. AI works by searching through large databases of data with fast, iterative processing and then uses algorithms to intelligently learn from the data. This autonomous learning, also referred to as Machine Learning, is a technology that enables AI to assimilate inputted data and then solve problems through inferencing and pattern recognition.
There are two main types of AI, each with their own particular purpose. The first category is Narrow AI, which is a phrase that describes all AI that performs a single task without the exact steps explicitly programmed. Narrow AI is evident in computer coded chess players, drones carrying out specific instructions, and even Alexa: Amazon’s virtual assistant. In contrast to Narrow AI, there is General AI, a futuristic technology that computer scientists are voraciously trying to create. This complex technology is an adaptable intelligence found in humans, where learning can be applied to vastly different tasks. According to several Google Engineers, general AI will not be introduced until at least 2050, but once the technology exists businesses will have to reposition themselves in the ever changing high-tech market.
Although AI is simply long strings of mathematical code, there are many vital reasons why AI is a necessity for businesses to thrive in today’s technology driven market. For instance, AI helps companies learn and discover through data without fatigue. This automated process allows companies to uncover more data leading to valuable information such as cutting costs or adding new product lines to generate more revenue. AI not only analyzes the data, but learns from the information using intelligent algorithms. These algorithms can teach itself the most efficient path for an autonomous vehicle to travel and what products to recommend to a customer. Lastly, AI achieves extraordinary accuracy at a deep level through Artificial Neural Networks: AI pathways that communicate to each other making itself smarter. Neural Networks have led to the advent of five layer deep fraud protection in banking, an impossible feat without AI.
AI is Changing Industries
AI is currently impacting a multitude of industries ranging from the manufacturing sector to retail. Within these diverse businesses sectors there are specific industries where change is the most prominent.
One of these industries is Healthcare, with over 12 million serious illnesses incorrectly diagnosed annually, $3.6 trillion dollars of medical waste, and peak levels of physician burnout. AI is fixing one of these major medical dilemmas by reducing the number of mistaken diagnostics through advanced pattern recognition algorithms. Using these algorithms, AI powered technologies are able to identify and track the spread of deadly diseases and even indicate when certain contents in blood levels are dangerously high. Additionally, AI is being integrated into health monitors telling patients to take their medicine, provide advice with common patient concerns, and allow virtual interactions with doctors. This in turn is saving the doctors and patients a most valuable resource — time.
Along with the healthcare industry, AI is radically transforming the retail sector. Many technology gurus believe that AI could save retailers up to $340 billion dollars annually by 2022. Over 80 percent of the savings are predicted to come from more efficient processes for supply chains, product returns, and pricing optimization. Not only will businesses save money using AI, but they also will be able to create a better online retail experience for their customers increasing customer retention rates and sales. This is done through personalized platforms that match customers interests with specific items. Amazon, a trillion dollar megamind, has perfected the art of online retail shopping by using advanced AI systems to dynamically recommend items for their online customers. Their secret according to Jeff Wilke, a top Amazon executive, is years of tweaking AI algorithms and billions of data entries.
An $80 trillion dollar worldwide industry at the forefront of implementing AI is the oil and gas sector. Exxon, the fourth largest oil company in the world, is currently collaborating with 80 universities including MIT to increase their AI technology to boost their natural seep detection capabilities. Detecting natural seeps, places where oil escapes from the underlying seabeds, will serve as a place for identifying oil and helping the environment. Shell is also taking initiative with AI, but in a completely unique fashion for the petroleum industry. They are launching virtual assistants to help customers purchase a range of over 3,000 items and over 10,000 data sheets on their retail website Shell Lubricants. These chatbots will optimize efficiency for customers and distributors increasing Shell’s annual revenue by billions.
The financial sector, an industry established for millennia, is rapidly implementing AI internally to the banks and externally for customers. One predominant change to the banking industry is the utilization of AI for customer service automation. A recent study by Autonomous, a leading provider on financial companies, predicts that AI could lead to a reduction of 1.2 million jobs and over $450 billion dollars with AI chatbots alone. Banks are also experimenting with personalized products, services, and interactions employing AI machine learning. This personalization for customers, anything from advice on loans to saving products, could increase customer satisfaction and overall revenue. Additionally, bank security, an integral part to the entire industry, is currently becoming stronger with AI driven security features such as fingerprints and facial recognition for client verification.
Future Implications of AI
AI is not a technological trend, but a permanent tool that will forever change countless industries. From healthcare to retail, entire businesses sectors are discovering critical ways to implement AI into their commercial model to optimize profits while keeping customers satisfied. Corporate giants, including Amazon and Apple, have already proven the monumental benefits AI can unleash if properly utilized. PwC and Accenture, experts in leading technology, predict that AI will grow the world economy by over 25 percent. With their predictions and other companies past success with AI, take ahold of your business and start riding the technological wave of the future.
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