Why S&P 500 Companies Need to Embrace AI and Machine Learning
The S&P 500 companies need to adapt AI in their activities to remain relevant and gain a competitive advantage.
AI and machine learning have the potential to create new opportunities across every function like:
Microsoft, IBM & Google to lead in the AI race
Top companies such as Microsoft, IBM, and Google are heavily investing in AI and machine learning to stay ahead of the curve. Alphabet Inc. (GOOG) is one of the companies that have been successful in investing in machine learning and AI for years, and recent breakthroughs will allow them to do even more.
S&P Global Inc. (SPGI) is also using AI and machine learning to improve their operations. Kensho, a tool built by SPGI, has compressed the workflow time by about 70%, freeing up time for their researchers and price reporters to do other productive things for their customers.
In addition, SPGI is using AI and machine learning to develop and demonstrate additional customer value, such as Energy Studio Impact, which involves computing more than 1 trillion rows of data without leveraging AI and machine learning models. International Business Machines Corporation (IBM) is collaborating with companies like Citi to enhance their internal audit and compliance processes through AI.
IBM is also automating hundreds of thousands of call center responses with AI with more than 90% accuracy and greater levels of customer satisfaction. In digital labor, IBM is helping finance, accounting and HR teams save thousands of hours by automating what used to be labor-intensive data entry tasks.
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The rough rule of AI
Machine learning algorithms are incredibly data-hungry, and they suffer diminishing marginal returns on additional data. This means that a company needs even more data every time it wants to achieve an algorithmic lead.
As a rough rule, to double the efficiency of the leading deep learning algorithm, the machine requires 10x more new data. To double its performance again, the machine requires yet another 10x increase (a 100x amplification from the start), and so on.
Conclusion
The S&P 500 companies need to adapt AI in their activities to remain competitive and gain a competitive advantage. AI and machine learning have the potential to create new opportunities across every function, and companies like Microsoft, IBM, and Google are heavily investing in AI and machine learning to stay ahead of the curve.
Companies like Alphabet Inc. (GOOG), S&P Global Inc. (SPGI), and International Business Machines Corporation (IBM) are already using AI and machine learning to improve their operations
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