Artificial Intelligence for Business 2019

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LONDON 2019 ® ® 12-13 JUNE 2019 ExCeL EXHIBITION CENTRE 20,000+ ATTENDEES 500+ CxOs IN ATTENDANCE 120+ COUNTRIES REPRESENTED 300+ SPONSORS & EXHIBITORS 500+ EXPERT SPEAKERS A I M E A N S B U S I N E S S EXPLAINABLE PRACTICAL RESPONSIBLE T H E A I S U M M I T. C O M / L O N D O N FLAGSHIP EVENT OF IN PARTNERSHIP WITH HEADLINE MEDIA PARTNER Adrian Bridgwater Specialist author on software engineering and application development, he is a regular contributor to Forbes and Computer Weekly. Tim Cooper Financial journalist, he has written for publications including The Spectator, London Evening Standard, Guardian Weekly and Weekly Telegraph. James Gordon Journalist and executive writer, he has written extensively on business, technology, logistics, manufacturing and sport. OIiver Pickup Award-winning journalist, he specialises in technology, business and sport, and contributes to a wide range of publications. Daniel Thomas Writer and editor, he has contributed to the BBC, Newsweek, Fund Strategy and EducationInvestor, among other publications. Davey Winder Award-winning journalist and author, he specialises in information security, contributing to Infosecurity magazine. Distributed in Publishing manager Helen Glynn Digital content executive Fran Cassidy Head of production Justyna O'Connell Design Joanna Bird Grant Chapman Sara Gelfgren Kellie Jerrard Harry Lewis-Irlam Celina Lucey Samuele Motta Head of design Tim Whitlock Managing editor Benjamin Chiou Associate editor Peter Archer Published in association with Although this publication is funded through advertising and sponsorship, all editorial is without bias and sponsored features are clearly labelled. For an upcoming schedule, partnership inquiries or feedback, please call +44 (0)20 8616 7400 or e-mail info@raconteur.net. Raconteur is a leading publisher of special-interest content and research. Its pub- lications and articles cover a wide range of topics, including business, fi nance, sustainability, healthcare, lifestyle and technology. Raconteur special reports are published exclu- sively in The Times and The Sunday Times as well as online at raconteur.net. The information contained in this publication has been obtained from sources the Proprietors believe to be correct. However, no legal liability can be accepted for any errors. No part of this publication may be reproduced with- out the prior consent of the Publisher. © Raconteur Media /ai-business-2019 @raconteur /raconteur.net @raconteur_london AI FOR BUSINESS raconteur.net Contributors I N D E P E N D E N T P U B L I C A T I O N B Y 1 2 / 0 5 / 2 0 1 9 # 0 5 8 7 R A C O N T E U R . N E T A I A N D N A T I O N A L S E C U R I T Y C O L L I D E T H E R I S E O F S E L F - S E R V I C E A N A L Y T I C S F R O M A U T O M A T I O N T O A U G M E N T A T I O N Exploring the relationship between big tech and nation-state AI Pre-built algorithms and off-the-shelf tools Human augmentation is set to transform the world of work 04 06 10 Navigating AI hype in search of success Endless buzzwords and misconceptions confuse leaders and dilute the true purpose of artifi cial intelligence (AI) as a means to achieve business objectives rather than the end objective itself O P P O R T U N I T Y "In reality, AI is a collection of targeted technologies, from machine-learning to natural language processing and vision identifi cation, from chatbots to analyt- ics and automation, each with its own strengths and applications. What they all share is the intelligence factor: a high degree of accuracy and an incredibly fast, smart ability to learn from their mistakes." AI, then, is not the silver bullet, though it can be forceful if the user's aim is good. "AI can signal all the needles in all the haystacks of data they train on; humans must decide which of the outputs apply to the change the business is trying to intro- duce," says Jacqui Taylor, chief executive and founder of trailblazing web-science company Flying Binary, and smart cities adviser to the government. Much like big data and analytics have joined forces to become a method for con- verting huge data volumes into next-level insights, organisations must pivot their approach to AI and realise it off ers a cluster couple of years ago, there was a joke doing the rounds at technol- ogy conferences that AI for busi- ness is like teenagers and sex: everyone talks about it, but few actually get it. Is the ribald witticism outdated in 2019? Or has the increased hype enveloping AI that it will magically solve most business problems only further confused executives? So much so they are not engaging with AI's myriad technologies or are left clumsily fumbling with algorithms that fail to per- form, while cannier rivals score big? Moreover, has the crucial point that AI for business is best utilised as a means of achieving very specifi c, narrow-focused objectives, and is not an end point in itself, been obscured by the sheer volume of mis- leading buzz? AI technologies are now being deployed in a wide range of industries, from healthcare to warfare, enhancing life and death, yet the individual applications are limited in scope to so-called "narrow AI". However, with the correct guidance it can drive cars, auto- mate systems, understand speech, diagnose life-threatening conditions, and predict business outcomes in ways, and at a speed, beyond comprehension for us mere mortals. "A big stumbling block for AI adoption has always been the term 'AI' itself," argues Antony Bourne, industries president of global enterprise software company IFS. "It misleads many businesses, suggesting a large, end-to-end system. of powerful weapons for technological trans- formation, though is not the ultimate goal. "AI is an arsenal: a vast array of tech- niques and technologies and research directions," says Marko Balabanovic, chief technology offi cer of Digital Catapult. "Members of the C-suite tend to underesti- mate how much AI systems are in daily use already. They also overestimate the speed with which it can be adapted and applied to solve their specifi c business problems." Dr Will Venters, assistant professor of information systems and innovation at the London School of Economics' Depart- ment of Management, agrees. "Wars are never won by a single bullet, silver or oth- erwise," he says. "AI can only ever be part of the complex digital ecosystem upon which businesses depend. Only if the whole digital ecosystem is effi cient, well managed, stra- tegic and agile can AI achieve its potential." Microsoft's Maximising the AI Opportu- nity report, published in October, reveals that early adopters of AI for business in the UK have already seen a 5 per cent improvement in productivity, performance and enterprise outcomes, compared with those that have not explored its growing range of capabilities. "As AI reshapes organisations and becomes an evermore important part of our lives, the opportunity for UK businesses is enormous," says Clare Barclay, chief operat- ing offi cer of Microsoft UK. "Yet despite this opportunity, 51 per cent of business leaders still say their organisation does not have an AI strategy in place. "Add to this the fact that 41 per cent of leaders believe their current business model will cease to exist within fi ve years and there's a clear need for organisations to act today." Given that 450 billion business transac- tions will take place via the internet every day by next year, according to International Data Corporation projections, it is hard not to conclude that the AI challenge must be tackled, head on, before it is too late. Oliver Pickup A LE ADING BENEFITS OF AI ADOP TION Percentage of US IT leaders and business executives who rated the following as a top-three benefi t AI can signal all the needles in all the haystacks of data they train on; humans must decide which of the outputs apply to the change the business is trying to introduce Microsoft 2018 51% of business leaders in the UK say their organisation does not have an AI strategy in place Due to the common misconception of AI, "we will see some major missteps by house- hold names failing to adapt fast enough", predicts Shamus Rae, partner and head of digital disruption at KPMG UK. "MIT pro- fessor Donald Sull has spoken about 'active inertia', where executives don't fully understand the disruptive nature of AI. "Some leadership teams and industries have grasped the opportunity and threat posed by AI, but they are the exception rather than the rule. Many organisations don't have the top-down drive to implement any change." Indeed, Microsoft's recent study points out that while 67 per cent of the 1,000 exec- utives surveyed are open to experiment- ing with AI, almost all of them will require training and development. Once better edu- cated about data, Ms Barclay advises busi- ness leaders should aim at small targets. "If you start thinking of the really big things, you do nothing," she says. "Ask yourself, 'What is the problem I am trying to fi x?'" Darren Norfolk, managing director in Europe, the Middle East and Africa for cloud computing company Rackspace, echos this warning. "AI has massive potential for organisations, particularly in improving productivity and customer experiences," he says. "There's a temp- tation to 'keep up with the Joneses', with some fi rms taking a magpie approach to AI-based technology purchasing. "But enterprises risk doing so at the expense of their authenticity and what makes them special. Business leaders must ensure they don't get blinded by the bright lights. Creating a robust plan for where AI technologies can authentically augment and improve existing market diff erentia- tors is key to driving return on investment." Dr Taylor at Flying Binary stresses the urgency required for business leaders to engage with AI. "Within the next five years, every single sector will begin to use machine-learning, AI and deep learning," she says. "Although many businesses will deploy these technologies, the organisa- tions which will benefit the most are those that realise the tech is not the outcome, it is the enabler." Pursue new markets 24% Deloitte 2018 Enhance current products 44% Optimise internal operations 42% Make better decisions 35% Optimise external operations 31% Free workers to be more creative 31% Create new products 27% Capture and apply scarce knowledge 27% Reduce headcount through automation 24% Commissioning editor Michelle Ingham Emma Woollacott Specialist technology writer, she covers legal and regulatory issues, and has contributed to Forbes and the New Statesman. AI Business ® Microsoft 2018 51% of business leaders in the UK say their organisation does not have an AI strategy in place

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