AI in 2018-Moving from Concept to Implementation

In 2017, we saw lots of excitement around artificial intelligence (AI), and I believe the year 2018 is majorly going to be outcome-based. This year, the rise of AI development may open up new possibilities in the way we think, the way we work, and the way we live. What we heard of in science fiction has started to majorly surface in reality.

Using AI technologies, companies are already augmenting intelligence and building unprecedented business models for creating a "blue ocean" of unchallenged market space for hyper-growth. However, it still has to win more trust at the revenue table to further impel into the business mainstream.

From 2018 perspective, AI will take shape and finally look to deliver real-world results. In Forrester’s 2018 AI predictions, survey respondents told that their firm was investing in AI rose from 40% in 2016 to 51% in 2017. However, success isn't easy - 55% of companies have not yet achieved any tangible business outcomes from AI, and 43% say it's too soon to tell.

The Future Is Going to Be Smarter + Artificial

The vision of AI is not going to be short-lived. A torrent of AI-enabled applications has already created watershed moments at the technological front such as Virtual Assistant, Computer Vision with Deep Learning, Face Recognition, Autonomous Robots, Driverless Vehicles, and more.

It is due to availability of granular computing, smarter algorithms, improved processing power to solve complex problems, increased data storage at reduced cost, and ability to embed brain-like elements into computers. It is mandating bolder visions and actions to unmask newer opportunities.

The hype around AI in last 2-3 years is forging ahead from concept to implementation. Every industry vertical is now eager to get the real business value by implementing it in the right way. Be a financial sector, manufacturing, FMCG, healthcare, education, security, retail, or more, a young generation of artificial machines is in the making to take the center-stage in the future.

New AI Power Is Rising

The year ahead will see a rise in AI Technologies like Chatbots and Virtual Assistants, Augmented Reality and Virtual Reality, Digital Twins and Smart and Intelligent Automation. Another area where AI will see its practical application is in the hardware domain. The Healthcare and Manufacturing industry will also see a successful implementation of NextGen AI Robotic with AI-Optimized Hardware. Insights-as-a-service market will see tremendous growth, and the market will be driven towards AI Driven Decisions and AI Driven Personalization. AI will also become more user-friendly and the AI algorithms and technology will be more simplified for the end user and will take the form of Explainable AI.

Positive Adoption Curve

If AI realizes its business potential in the next 3-5 years, there is no doubt that it will lead to significant improvements in processes, as well as in the precision and reliability, and possibly the speed, of operational business decisions. AI is also more likely to enhance security and improve risk management than to weaken them, although some have concerns about AI’s potential misuse.

According to the AI business index, the AI implementation score across all the firms represented is 2.40 on a 1-5 scale, where 1=nascent, 2=exploratory, 3=experimental, 4=applied and 5=deployed. This signifies a transition for many firms from exploratory research to active experimentation. The index score is highest in North America (2.61). Nearly one-fifth of North American firms in the survey have begun to use AI technologies actively in their business.

India is doing really well as compared to other countries in implementing AI where more than 50% companies have already started using it at scale.

But, AI Must Help with ROI and Growth

Today, we are living in a smart digital era where technologies like Artificial Intelligence, Internet of Things, Augmented Reality promise to disrupt our lives for better. Our homes are now equipped with intelligent virtual assistants like Alexa and soon there will be a plethora of smart appliances and connected devices, controlled with simple voice commands or via mobile apps. Our cities have become smarter and safer too. Traffic cameras with video analytics capabilities can detect traffic violations and number plate recognition. Our daily commute will see a major digital transformation too as automobile industries compete to launch autonomous vehicles and connected cars. Concept stores like Amazon Go promise to revolutionize our shopping experience through computer vision and IoT. Autopilot drones with video intelligence, have already found more practical use-cases beyond toy-stores, in defense, agriculture, logistics and transportation industries. Almost every industry sector, whether it’s retail, manufacturing, health-care, transportation, or entertainment, is gearing up to embrace AI in 2018.

For example, we have implemented chat-bots at multiple client locations helping in enhancing productivity, providing personalized experiences, and reducing manual tasks. We have also implemented AI analytics in enabling organizations to capture, manage, analyze, and derive value from their data. In another retail use case, we have empowering organizations in reducing errors, using AI to provide deeper insights, and accelerating growth through smart kiosk- for higher ROI.

Artificial Intelligence is no longer just a stand-alone software program that runs on our desktop or laptop machines. As the devices and appliances we use become connected, and our homes and automobiles come powered with AI, we see a major shift in cloud intelligence and hardware platforms that run and support AI algorithms. Embedded AI through Edge Computing will be one of the major trends in 2018, as specialized hardware platforms and GPUs like Nvidia’s Jetson, Tegra, Quadro or Drive PX become a popular choice for consumer electronics, automobile, 3D animation and virtual reality.

2018 will be the year when AI will have to measure up to its promise in terms of ROI and go through the maturity curve to be a practical and goal-driven technology. Technologies under AI have to chip in more business revenue just like AI chat-bots and AI analytics have promised. The same will be expected from machine learning, face recognition, deep learning, and robotics this year.

Amruta Purandare
Associate Director in Analytics Center of Excellence (CoE) at Happiest Minds Technologies