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Data Has a Better Idea: AI Becomes the Driving Force in Many Industries

Feb 17, 2019 8:00:00 AM

Artificial Intelligence (AI) is no longer just present in science fiction but is the driving force behind many of today’s technological breakthroughs encompassing various industries. While China presented the world’s first AI anchor in 2018, football clubs in London employed an AI Coach for tactical insights to improve their team performance, and animal conservationists currently use it to prevent poaching. Today, it improves the efficiency of simple tasks at home and at work. In fact, AI has the potential to fundamentally change the way companies do business.

A PwC study of the economic potential of AI predicts an increase in global GDP of up to 14% until 2030. This is equivalent to contributing an additional $15.7 trillion to the world’s economy. In order to reap its benefits in the future, now is the time to invest in AI technology.

While AI-systems are of great importance for companies, many people are afraid of this highly complex technology—a black box that is difficult to understand. This may be one reason why only 16% of employees trust AI-generated results. In contrast to human intelligence, artificial intelligence is solely focused on detecting repeated patterns in the given data. It does not consider external influences and thus prevents cognitive biases. But, first things first...

 

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What is Artificial Intelligence?

The cognitive scientist Marvin Minsky (1968) simply defines AI as “the science of making machines do things that would require intelligence if done by men”. In other words, artificial intelligence can be explained as a system’s ability to correctly interpret external data, to learn from such data and to use those learnings to achieve specific goals and tasks through flexible adaptation.

There are three different generations of AI applications:

Artificial Narrow Intelligence (ANI): First generation applications already permeate our everyday life and are only applied to specific tasks.

Artificial General Intelligence (AGI): Second generation applications will be able to autonomously solve various problems. Imagine Siri evolve into a humanoid robot that prepares your coffee or writes a novel.

Artificial Super Intelligence (ASI): In the third stage, AI will have strong problem-solving skills and can be used for any purpose. One day Siri is going to outperform human beings by solving complex mathematical problems or writing a bestseller.

How Does Artificial Intelligence Work?

AI analyzes huge amounts of data coming from various data sources such as sensors, applications, and more. Based on machine learning approaches, AI tries to identify underlying rules and patterns in data. Machine learning is a method that supports computers to learn from data without being programmed to do this in a prescribed way. The more data available, the better the learning process.

How Can Artificial Intelligence Be Classified?

Management literature detects three skills which are essential for an outstanding performance of managers and employees: cognitive intelligence (e.g., analytical thinking), emotional intelligence (e.g., self-confidence) and social intelligence (e.g., empathy). Even though AI has no ability to feel, it can be trained to recognize emotions and behave accordingly through the analysis of facial expressions. Following these three types of human competencies, AI systems can be classified into three groups:

  1. Analytical AI involves cognitive intelligence and learns from past experiences as a basis for future decisions. Most AI systems applied by firms nowadays fall into this category (e.g., systems for fraud prevention in financial services or self-driving cars).
  2. Human-Inspired AI includes components from cognitive as well as emotional intelligence. These systems can, in addition to cognitive elements, understand human emotions and consider them in their decision-making. Retorio uses advanced vision systems to recognize not only speech patterns but also facial expressions and emotions. Hereby Retorio can support HR or sales reps to quickly recognize emotions or even analyze personality traits while recruiting new employees or preparing the next sales pitch.
  3. Humanized AI is characterized by all types of competencies (i.e., cognitive, emotional, and social intelligence). Although it is not yet available, it is likely that such thinking machines would interact self-consciously with others.

Do you expect AI to take over the world someday? It will become increasingly present throughout most industries, but at least one competency will likely always remain in human hands: artistic creativity. Spontaneous ideas and intuition cannot be predicted based on rules and patterns.

The Future is Artificial Intelligence

Since Alan Turing developed the Turing-test in 1950 to investigate if machines can think, AI has evolved tremendously. By now, even standard microprocessors run at 10 million times the speed of human neurons. Computers are able to memorize more information in one second than a human being in his entire life. Consequently, AI can support humans in various areas where human beings reach their limits:

  • Healthcare, to improve clinical decisions as well as minimize diagnostic and therapeutic errors.
  • Marketing, to tailor persuasive messages to specific target groups.
  • Financial services, to prevent and help detect fraud in near real time, therefore preventing millions of losses.

Even more fascinating is the discovery that computers make more accurate and less biased personality judgments than humans when using digital records of human behavior (e.g., Facebook likes). This can be applied to recruiting, where AI uses unbiased, data-driven analysis of applicants and improves the matching of candidates and job positions based on personality traits and analysis of soft skills.

One of the most promising trends in 2019 are AI-powered recruiting tools. For many companies recruiting is a time-consuming and stressful process. A recent survey from Indeed found that 42% of employers worry about finding the right talents. This is where Retorio comes into play: Retorio’s plug-in enables applicants to easily record and upload videos. Combined with the AI-powered personality analysis, Retorio can pre-select qualified candidates—without any bias. This process will not only help recruiters save time, but also find the right candidates.

Learn more about Retorio's revolutionary HR solution here.

References:

Balkhi, Syed. “4 Artificial Intelligence Trends to Watch for in 2019.” Entrepreneur Europe, 27 Nov 2018, https://www.entrepreneur.com/article/323761[12.12.2018]

Marr, Bernard. “27 Incredible Examples Of AI And Machine Learning In Practice.” Forbes, 30 Apr 2018, https://www.forbes.com/sites/bernardmarr/2018/04/30/27-incredible-examples-of-ai-and-machine-learning-in-practice/#722035775022 [12.12.2018]

Walker, Kevin. “REPORT: Employer Outlook 2018.” Indeed blog, 27 Nov 2017, http://blog.indeed.com/2017/11/27/employer-outlook-2018-survey/ [12.12.2018]

Cuthbertson, Anthony. “London football club employs AI coach for tactical insights.” Independent, 23 Jan 2019, https://www.independent.co.uk/life-style/gadgets-and-tech/news/football-ai-coach-artificial-intelligence-wingate-finchley-fc-big-bang-fair-a8742466.html [22.01.2019]

Jiang, F., Jiang, Y., Zhi, H., Dong, Y., Li, H., Ma, S., ... & Wang, Y. (2017). “Artificial intelligence in healthcare/ past, present and future.” Stroke and vascular neurology, 2(4), 230-243.

Kaplan, A., & Haenlein, M. (2018). “Siri, Siri, in my hand/ Who’s the fairest in the land? On the interpretations, illustrations, and implications of artificial intelligence.” Business Horizons.

Lee, I. (2017). “Big data: Dimensions, evolution, impacts, and challenges.” Business Horizons, 60(3), 293—303.

Mahidhar, V. & Davenport, T. H. “Why Companies That Wait to Adopt AI May Never Catch Up.” Harvard Business Review, 6 Dec 2018, https://hbr.org/2018/12/why-companies-that-wait-to-adopt-ai-may-never-catch-up [12.12.2018]

“AI adoption advances, but foundational barriers remain.” McKinsey, Nov 2018, https://www.mckinsey.com/featured-insights/artificial-intelligence/ai-adoption-advances-but-foundational-barriers-remain[15.12.18]

Minsky, M. L. (1968). “Semantic information processing.” Cambridge, MA: MIT Press.

“Sizing the prize: What’s the real value of AI for your business and how can you capitalise?” pwc, https://www.pwc.com/gx/en/issues/analytics/assets/pwc-ai-analysis-sizing-the-prize-report.pdf[15.01.2019]

.”World's first AI presenter unveiled in China – video.” 2018, The Guardian, https://www.theguardian.com/technology/video/2018/nov/09/worlds-first-ai-presenter-unveiled-in-china-video [22.01.2019]

Youyou, W., Kosinski, M., & Stillwell, D. (2015). “Computer-based personality judgments are more accurate than those made by humans.” Proceedings of the National Academy of Sciences, 112(4), 1036–1040. doi/10.1073/pnas.1418680112

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