HOW ALGORITHMS ARE IMPACTING TIC BUSINESS

Like many other businesses not yet adapted to digitalization, TIC Business is working in their Testing, Inspection and Certification services with processes like in the eighties and nineties, technologically updated with core delivery structure based on same principles: testing done at own labs facility while inspections and certifications are mostly delivered on site at Clients facility. Product certification is a good example of testing labs current situation and needs: Client sends sample to TIC player lab to be tested and approved under international standards or mark. Inspection also follows same be-present-principle: TIC player sends its inspectors to deliver inspection at Clients facility, either a pipeline, industrial or computer machine or food producer. Certification player also sends its people to Clients to check if its management system complies with standard requirements going to be certified. Digitalization or blockchain are not yet implemented neither its impact evaluated and they are going to change everything in TIC Business.

While testing will remain as in TIC player site activity, given its need of specialized technical testing machines and infrastructure, digitalization will require deeper impact inspection and certification from the beginning: today′s technology allows TIC player to check, analyze and evaluate a significant amount of data and facts without sending inspectors or auditors to the Client′s facility. It is already a fact that to inspect a vessel, a TIC player inspector can send a drone to support his/her inspection tasks over the vessel while he or she will deliver inspection in areas where drones can′t be driven.

Auditors and inspectors are the most valuable asset for any TIC business: they test, audit and/or inspect facilities, processes, products, services, factories and whatever a client can deliver to TIC player. Experienced auditors and inspectors have been working for at least ten or fifteen years in the business they audit or inspect. It is their best value, their knowledge and their experience can challenge many scenarios involving a specific product/service/process/factory, while inspection or audit delivery. Best auditors and inspectors are worth their weight in gold; their knowledge deserves the highest economical and labor conditions a TIC player could afford. Clients love them because they know their processes and products so well; they always add value to the Client, each year during every audit or inspection. A good auditor or inspector takes so long to be experienced and trained that there is no other option for a TIC player, if they liked to train a new one it would take ten to fifteen years; out of time for Clients needs and for the own TIC player needs.

Currently, machine learning to business decision making is starting to threaten both inspectors and auditors experience and knowledge. For inspection and certification activities the biggest impact is coming from algorithms and artificial intelligence. It is probably the biggest challenge for TIC business because they could replace most of intelligent work from inspectors and auditors. New machine learning programs are currently being launched, refreshing data sets and creating complex algorithms to work on large data from past years.

Usually, machine-learning algorithms are built to be able to manage vast amounts of data and detect many more complex patterns within them, often attaining superior predictive power. Its use for predictive modelling is increasing in all kind of business, from Customer Service to Decision making processes. In business processes machine-learning algorithms make decisions faster than human decision makers and at a fraction of the cost. Machine learning also improves decision quality, given lack of human biases. While Human decision makers may be prone to give extra weight to their personal experiences, machine-learning would take a decision based only on the algorithm.

Does it mean that long experience and knowledge of inspectors and auditors could be replaced by artificial intelligence? Up to a certain point, it will be eventually possible because machine learning refers to computer-aided decision making based on statistical algorithms that generate data-driven insights. If we look at real life, today’s auditors and inspectors need less Man days, less time to check the Client evidences than they needed ten years ago. It is just the result of IT systems which enable auditors and inspectors to check some information from their office or from their home based position. If we look ahead, artificial intelligence will probably be part of inspectors and auditors tools to audit and inspect the client product/services/processes without spending so much time on the client site. The reduction of Man days on the client’s site would impact TIC player P&L, not only because costs will reduce but also because total Man days would be lowered progressively to basic needs. In no longer than three or four years, we could have a scenario with an auditor/inspector delivering in half time he/she is currently delivering, and the rest of the information needed could be processed through artificial intelligence.