After the era of platforms, mobile, and cloud we are at the start of a new era: AI. This era is a new game with new rules and new winners. It won’t matter much whether you won the game of mobile and cloud, we are all back to the start position — this is about how well you will use artificial intelligence.
We can expect new winners to emerge, they might even become bigger and more dominant than the ones we have, Google, Facebook, Apple, and Amazon.
Basically, however well you performed in your digital transformation journey so far, this is a new game and this is all about AI.
How did we get there?
We had IBM’s AI win in Jeopardy, Google’s AI won in Go, and later AlphaGo Zero won by learning the game on its own without looking at past human games. Amazon Go opened a store without cash register. Alexa and Google Home are successes, Siri is out there, Google translate is incredible, we chat with bots not being sure whether we’re interacting with a human or an algorithm. AI is able to write AI software. AI is better at recognising images than humans. It’s better than humans in diagnosing skin cancer, autonomous drones and autonomous transportation are in use. AI is here.
This is why AI is so powerful, this is why it will change your business:
As businesses predict what customers will love thanks to AI they are able to recommend products. Not only your past online behaviour on one platform is considered but your online behaviour on other platforms as well. The recommendations will be that accurate and personal like what people experience with Spotify Discover Weekly.
It’s scary how well @Spotify Discover Weekly playlists know me. Like former-lover-who-lived-through-a-near-death experience-with-me well.
Being able to recommend products in that personal way changes the way of shopping. Amazon is even thinking about sending people products before they ordered it. Recommendations goes for B2C but for B2B as well. Usually your product or service offering is complex, you train your sales people for each new product, that is obsolete now.
For the customer the complexity is made easy, finally the customer gets what they need when and how they need it. For the customers it will be an awesome customer experience. And businesses are able to produce and create products and services that people love in the first place.
The result will be that we will have a digital personal finance assistant, insurance assistant, health and fitness assistant, career assistant, travel assistant, entertainment assistant, and so on. Personalisation is possible at scale.
Product recommendation is but only one part of prediction, AI is also able to recommend business decisions (it’s just a matter of finding patterns in data with many variables), through prediction it optimises business operation and production, it predicts outcomes, for example of court cases, it trades (there are hedge funds that AI runs without human intervention), through prediction it anticipates fraud, and it predicts when constructions like windmills need to be fixed and what needs to be done before it disfunctions.
Overall, recommendations through AI will lead to the emergence of new business models and new businesses.
For creating an exceptional customer experience it’s not only that the interaction with a product and service is made easy through product recommendation, but by automating simple tasks for the customer, like booking a travel, planning a meeting, onboarding to a service, making a claim, etc.
Many tasks on the customer side around your product and service you automate as well as automating tasks in the life of people that make their life easier that could become your new product or service.
Automating customer service allows you to be personal at scale. You can free your employees of boring tasks. Automation might result in moving your production back to your headquarter (Tesla’s production is in the US) because you automated the simple tasks that before cheap labour did. Automation in sourcing, production and distribution speeds up your time from product design to the finished product in the hands of the consumer, it allows you to react to change quickly.
All this is done by humans being augmented by AI interacting with machines by voice, computer vision and AI being able to do simple tasks. Did you know AI can write journalistic articles, write software, automate your marketing, do your accounting?
If business operation is automated how would your business look like and does it even change your business model? At least automation will enable an AI business built on prediction to bring products and services to life easier with less resources, so let’s put prediction and automation together and it becomes extremely powerful.
3. New patterns
New patterns means that AI sees patterns humans haven’t seen. For example, when AlphaGo did move 37 in the second game against Lee Sedol it chose a move that was new, that took people by surprise, that was not based on past human behaviour but it was a new creation. Fan Hui called the new move even “beautiful”. Not only was it something new, but it redefined the game Go, it was on a higher level than a human move was.
Another example is Arup’s AI developing a construction element with 40% less weight. Or Autodesk’s AI developing a partition element for inside an airplane with 30% less weight. AI is able to find new combinations that lead to new solutions. A simple example is IBM’s Chef Watson finding new food combinations creating new recipes. Or it’s the company Recursion Pharmaceuticals that finds new indications for many known drugs.
New solutions and new products will emerge.
How could your business benefit from prediction, automation, and new patterns specifically? Find out in an AI-Design Sprint.
Source: Deep Learning on Medium