Straight Talk about Ai and Big Data: What is Real? What is … · 2018-05-22 · Hype: AI is very poorly understood and implemented 1. AI is going to take jobs away Opportunity for
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MAKING AI WORK FOR YOUR INDUSTRY
Straight Talk about Ai and Big Data:What is Real? What is Marketing Hype? April, 2018
Hype: AI is very poorly understood and implemented
1. AI is going to take jobs away Opportunity for augmenting jobs is way larger than replacement of humans with AI. 8m vs 1.2 billion.
2. Big Data and Analytics are AI These are used in AI. Similar to senses. Sensing more does not automatically make you more intelligent.
3. NLP, Machine Learning and Deep Learning are AIThese are just tools for complex pattern recognition. Like equating a fuel pump to a car.
4. Robotic Process Automation (RPA) is AI RPA handles rule-based work and structured data inputs and not judgement-based work with unstructured data.
5. Data Science platforms alone can achieve great results “Dots vs Bubbles”. Large gap in bridging data science workflow with software devops workflows.
6. Enterprise AI can be an opaque Black box 99+% of AI startups operate AI as a Black box. Their AI is not explainable and not compliance ready
Step 1: Improving understanding of AI as a Strategic Capability
• Business led discussions about potential outcomes• Demonstration days with internal and external booths• Discovery sessions for target use case generation
• Build target use case portfolio• Set Budgets ($300k-$500k/90 day sprints)• Engage, learn, and transfer skills
• COE to run parallel projects• Decide Build vs Buy vs Partner mix• On Prem vs On demand managed• Spin offs for new business lines?
19McKinsey Global Institute Artificial intelligence: The next digital frontier?
These forces will help determine the industries that AI is likely to transform the most. However, if current trends hold, variation of adoption within industries will be even larger than between industries. We expect that large companies with the most digital experience will be the first movers because they can leverage their technical skills, digital expertise, and data resources to develop and smoothly integrate the most appropriate AI solutions.
•••
After decades of false starts, artificial intelligence is on the verge of a breakthrough, with the latest progress propelled by machine learning. Tech giants and digital natives are investing in and deploying the technology at scale, but widespread adoption among less digitally mature sectors and companies is lagging. However, the current mismatch between AI investment and adoption has not stopped people from imagining a future where AI transforms businesses and entire industries. In the next chapter, we explore the four major ways in which AI can create value across the value chain in different sectors.
Exhibit 4
Sectors leading in AI adoption today also intend to grow their investment the most
SOURCE: McKinsey Global Institute AI adoption and use survey; McKinsey Global Institute analysis
10
13
5
2 84
10
146 12 16
11
6
8
18 24 30
12
200
2
4
22 28
9
26 32
3
7
1
0
Current AI adoption% of firms adopting one or more AI technology at scale
or in a core part of their business, weighted by firm size2
Automotiveand assembly
Energy and resources
Health care
Media and entertainment
Education
Retail
Travel and tourism
Future AI demand trajectory1
Average estimated % change in AI spending, next 3 years, weighted by firm size2
High tech andtelecommunications
Construction
Professional services
Transportation and logistics
Consumer packaged goods
Financial services
1 Based on the midpoint of the range selected by the survey respondent.2 Results are weighted by firm size. See Appendix B for an explanation of the weighting methodology.