Industry leaders go all-in on artificial intelligence

While generative AI is now in the spotlight, most organizations are doing very little in the area of ​​AI. Tom Davenport, senior consultant in Deloitte's analytics practice, pointed out that this is a huge mistake. Businesses, especially industry leaders, must invest heavily in AI if they are to remain competitive.

To truly benefit from investments in artificial intelligence, companies must rethink how humans and machines interact in the work environment, starting with applications that change the way employees work and interact with customers, Davenport said. AI should help drive every business decision and every product or service.

This is the core point of Davenport's new book "All in on AI: How Smart Companies Win Big with Artificial Intelligence". The book was co-authored by Nitin Mittal, a principal at Deloitte Consulting.

Just tinkering with AI — experimenting here or there — doesn’t provide a lot of value, Davenport said. “We can implement AI very easily on a small scale. But integrating it into The way you work means embedding it into your existing technology architecture."

Instead, organizations need to integrate AI into business processes and workflows. To enable working with AI, organizations need to upskill their employees and also ensure that AI technology can scale. At the same time, organizations also need to do these efforts over time to ensure that changes in the world do not make efforts counterproductive.

Davenport emphasized: "There are many benefits to actively adopting artificial intelligence and using it to change your strategy, your business model and your key business processes. This is really urging companies to leverage artificial intelligence." Intelligence does more work, rather than tiptoeing through the cracks like most companies do.”

##In the book, Davenport and Mittal identify 30 organizations that have gone “all in” on artificial intelligence and are reaping significant benefits from this strategy.

Davenport explained: “The most impressive example is China’s Ping An Group. Most people don’t know much about it, even though it ranks 16th in the world by revenue. It is now China’s largest private company. Enterprise. Ping An was founded as an insurance company, but they now have five 'ecosystems' or business units. In addition to insurance, they have added banking, healthcare, smart cities (a smart city business), and automotive services ."Davenport pointed out that Ping An is growing at an incredible rate. The company created this ecosystem approach that allows them to partner with other organizations and obtain customer data from those relationships. They use this data to create artificial intelligence models that make good predictions or classifications of behavior. Then they grow each business, getting more data.

Davenport continued: “My favorite example is their healthcare business, which created a product called ‘The Good Doctor.’ During the pandemic, Americans can communicate with them via Zoom We were impressed by the number of doctors we can talk to, get prescriptions or other services. But Good Doctor goes far beyond these services.” According to his description, Good Doctor is an artificial intelligence-based system for triage , diagnose, and then propose a treatment plan. A real doctor will give the patient a final diagnosis and provide a treatment plan, and at the same time, the doctor will get recommendations from the Good Doctor system.

The most shocking thing to me is that nearly 400 million people in China are using it, which is more than the entire population of the United States. China doesn't have a sufficient number of doctors, so 'OK Doctors' are having a huge impact on health care."

Artificial Intelligence Leaders in Other Transforming Markets

Another profiled in the book An example is Shell Oil Company, which has embraced AI in many of its business units and used it to redesign some processes. The most high-profile examples are inspections surrounding Shell's large plants and pipelines.

Davenport said: “In the past, it would have taken up to six years to fully inspect every aspect of the plant with human inspectors. Now, Shell uses drones and artificial intelligence-based image analysis systems to conduct a six-day inspection. Shot. They dramatically reduced the time it took to conduct this inspection, resulting in potential security benefits. In a sense, Shell also trained more than 5,000 engineers to become citizen data scientists. They can perform data science tasks without professional data science Interpret these inspection data within the context.”

The third example is Kroger, one of the largest grocery retailers in the United States. Kroger has a wholly owned data science subsidiary called 84 Point 51 Degrees, located in Cincinnati. The name comes from Cincinnati's longitude.

The subsidiary is really impressive in terms of the data science work they do for Kroger related to consumer products and the companies that sell products at Kroger. For example, they run A massive model that predicts sales per SKU, per store, entire store chain, nightly."

Kroger also has the largest grocery store loyalty program in the country. The company uses data from the program to predict which products and promotions will convince members to show up at local stores more often and generate more purchases.

They are using their loyalty program to recommend new products with high nutritional levels to encourage customers to shop in the healthy food space, Davenport said. They are also selling some of their data insights to consumer packaged goods partners. I think they are well ahead of other grocery retailers in this regard."

The Value of Artificial Intelligence to Large Legacy Organizations

The main focus of Davenport and Mittal's book is on traditional organizations that want to truly transform using AI.

Davenport pointed out: “This is not about those digital natives, they have it much better because everyone in these organizations already believes in AI and digital transformation. However, many companies say they are doing this thing. Still, many companies say they are doing it. But they rarely deploy AI. They don’t integrate it into their daily work and therefore don’t get any real economic value.”

Davenport acknowledged that many Companies may feel reluctant to invest heavily in this relatively early stage of “modern” artificial intelligence. But this book aims to show how organizations committed to the use of artificial intelligence are reaping huge benefits and, in some cases, transforming their markets.

To this end, these leading organizations are both broad and deep in their adoption of AI, Davenport said. They have quite a few use cases or applications in production. They use a variety of techniques, including machine learning. Many organizations also use robotic process automation and linguistics-based computational chatbots.

Davenport emphasized: "The era of sitting on the sidelines is over. In a way, we want to scare readers and say, 'If someone else in your industry is doing this, it will be difficult for you to catch up. on.'"

Davenport further pointed out that the bottom line is that artificial intelligence is a difficult field to become a fast follower because it requires large amounts of data and a large number of skills that are not universally available . Businesses should start investing in AI now, and there are ways to do it fairly easily and fairly cheaply.

Davenport said: "Many vendors are incorporating AI capabilities into their ERP systems and CRM systems, so you can start there. But if you want to gain any competitive advantage from AI, you may have to Develop some of these capabilities yourself. This means developing the skills and technical capabilities to generate some of your own use cases."

Source: www.cio.com

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