Artificial Intelligence ‘AI’, Machine Learning ‘ML’ and Deep Learning ‘DL’ are some of the hottest topics in the world right now and have been mentioned as ‘the new electricity’. Tech-giants such as the FAMGA (an acronym for Facebook, Apple, Microsoft, Google and Amazon) and entrepreneurs like Elon Musk have made AI an integral part of their operations with deep learning behind TESLA’s autonomous driving modes. AI may seem like a technology for the future, but the reality for business is that AI is rapidly changing the way companies utilise their data today. The not so good news is that Australia is lagging compared to rest of the world in terms of AI adoption. It is therefore important to know what Artificial Intelligence is and why it is relevant for Australian businesses.
What is Artificial Intellgience, Machine Learning and Deep Learning?
Artificial Intelligence uses data to ‘learn’ and can combine enormous structured and unstructured data sets to inform its outcomes. This process involves input of large quantities of data rather than millions of lines of code. The AI algorithm can reveal patterns and predictions at speed that helps business perform at scale. Compliance checks for instance can go from 4% to 100% sampling making internal teams more efficient and providing greater governance for a firm.
Machine Learning is a subset of AI and can be applied to a wide variety of prediction and optimisation challenges, from determining the probability of a credit card transaction being fraudulent, to predicting when an industrial asset is likely to fail or a customer will leave.
Deep learning is a subset of machine learning which is currently delivering breakthrough results in image and computer vision and Natural Processing Language – understanding the context of speech. DL models the brain’s network of neurons to extract features and optimise variables relevant to a problem, with results improving through training. Examples include robots and self-driving cars or even putting colour into black & white movies.
What is driving the commercial application of AI?
There are three main factors that play a major role in facilitating the rapid development of AI technologies.
These are identified as:
- Increase of computational power such as powerful servers and cloud technology.
- The generation and access to large amounts of data.
- Case studies have proven the effectiveness of AI and leading organisations are already creating competitive advantage.
Why does AI matter for Australian Organisations?
Emerging technologies such as AI and Machine Learning have contributed to a fundamental shift in how we are doing business and shifted the means of competition to new dimensions. An example of this is Predictive Commercial Intelligence – which allows companies to gain rapid, accurate predictions from data they already have in their organisation.
AI is changing the future of business:
- AI will help monetise data – Companies will be able to effectively make use of the existing data and be able to gain a competitive advantage never experienced before. The ability to structure and make sense of data combined with the new ability to make instant and accurate predictions, will fundamentally change the way business makes decisions.
- AI will increase efficiency – Increased efficiency is inevitable as machine learning can replicate a firms best experts on their best day – every day. The only challenge lies in the the ability for firms to implement the change management process that AI will bring.
The Future of AI in The Australian Business Environment
To truly realise the benefits of AI, the technology needs to become a deep part of everything a company does; AI is a natural evolution from the big data revolution that has allowed companies to create vast stores of their own data. Data represents enormous commercial opportunity but it won’t happen by accident. The future belongs to those Australian companies who are agile and can seize this enormous opportunity to utilise AI.
Are you interested in discussing how AI will impact your industry and organisation? Get in touch with us today.
Kelnar, D. (2017) MMC Ventures & Numis: The State of AI 2017 Inflection Point. Available at: <https://www.mmcventures.com/wp-content/documents/The_State_of_AI_2017_Inflection_Point.pdf>
Pyle, D. & San José, C. (2015) An Executives Guide To Machine Learning, McKinsey Quarterly, viewed 5 December 2017, < https://www.mckinsey.com/industries/high-tech/our-insights/an-executives-guide-to-machine-learning >