Machine Learning Applications by Industry

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Louis Columbus, Machine Learning Is Redefining the Enterprise in 2016

Machine learning’s ability to scale across the broad spectrum of contract management, customer service, finance, legal, sales, quote-to-cash, quality, pricing and production challenges enterprises face is attributable to its ability to continually learn and improve. Machine learning algorithms are iterative in nature, continually learning and seeking to optimize outcomes. Every time a miscalculation is made, machine learning algorithms correct the error and begin another iteration of the data analysis. These calculations happen in milliseconds which makes machine learning exceptionally efficient at optimizing decisions and predicting outcomes.

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The Face of Artificial Intelligence

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Facebook’s new servers for artificial intelligence research, inside the company’s data center in Prineville, Oregon (Source: Technology Review)

Source: Technology Review
[youtube https://www.youtube.com/watch?v=v09-n4buwYE?rel=0]

Source: IEEE Spectrum

 

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Ex Machina (2015)

Source: MadAboutMovies

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Source: http://www.lkessler.com/brutefor.shtml

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Lee Se-dol, one of the world’s top Go players, won just one of the matches against the AlphaGo program, missing out on the $1 million prize up for grabs. (March 2016)

 

 

 

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AI Safety and Robotics Laws (Infographic)

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In July 1984, a factory robot in Jackson, Michigan, crushed a 34 year-old worker in the first ever robot-related death in the United States.  The robot thus violated Issac Asimov’s First Law of Robotics, “A robot may not injure a human being or, through inaction, allow a human being to come to harm,” first articulated in 1942.

In 2008,  Rodney Books predicted: “[In the 1950s, when I was born] there were very few computers in the world, and today there are more microprocessors than there are people. Now, it almost seems plausible that in my lifetime, the number of robots could also exceed the number of people.” He must have had in mind some specific catalysts that will cause rapid acceleration in the proliferation of Robots—at that time (2008), the world’s Robot population stood at 8.6 million.

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Press Mentions of Specific AI Applications

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Source: CB Insights; Last accessed 5-Jul-2016.

Magister Advisors:

Specific AI capabilities are particularly strategic and will create immense value to many industries. Predictive analytics, speech and image recognition are the earliest verticals enabled by AI and rightly so because of potential applications in sectors including security, advertising and healthcare. For example, doctors can leverage image recognition and automate the medical diagnosis or a security company can use predictive analytics to detect patterns in DDoS attacks to prevent them in future. A very good indication of AI’s emergence is the much greater visibility across specific application areas; the following graph illustrates the rise of press mentions in the Communication, Security, Advertising, Healthcare and Finance sectors.

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The New Data Scientist Venn Diagram

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Stephan Kolassa on StackExchange:

I still think that Hacking Skills, Math & Statistics Knowledge and Substantive Expertise (shortened to “Programming”, “Statistics” and “Business” for legibility) are important… but I think that the role of Communication is important, too. All the insights you derive by leveraging your hacking, stats and business expertise won’t make a bit of a difference unless you can communicate them to people who may not have that unique blend of knowledge. You may need to explain your statistical insights to a business manager who needs to be convinced to spend money or change processes. Or to a programmer who doesn’t think statistically.

So here is the new data science Venn diagram, which also includes communication as one indispensable ingredient.

 on Teradata.com:

Davenport and Patil describe data scientists as curious, self-directed and innovative, i.e., they are not limited by the tools available and when needed fashion their own tools and even conduct academic- style research. Not surprisingly, people with this combination of skills and characteristics are rare, as rare and as much in demand as the computer programmers in the 1990s.

This rarity and high demand for data science skills has meant that statisticians, machine learners, data miners, data analysts, DBAs as well as quantitative analysts, i.e., people with any data or analytics skills have re-badged themselves as data scientists so that they are more marketable. This is not unlike the pre-Y2K hype when computer operators and users of PCs, re-badged themselves as computer programmers.

The term “data scientist” itself has become so diffuse that it represents anybody from data base administrators to analysts doing simplistic summaries on Excel spreadsheet to data engineers setting up Hadoop infrastructure to advanced analytics practitioners who discover valuable insights from data using existing tools as well as those like the data scientists in Google and Facebook who derive insights from data using their own enhanced toolkit.

So, is the name really relevant? Apparently not, since Google’s career pages advertise for Decision Support Analysts, Statisticians, Quantitative Analysts, and Data Scientists and they all mean the same thing. Over the last 50 years, many people have been working as the data scientists described by Davenport and Patil, discovering insights from large volumes of diverse data using existing tools as well as new tools that they fashioned. They have been labelled statisticians, artificial intelligence researchers, data miners, machine learners, advanced analytics experts and the list goes on.

What is relevant is to understand where an individual’s interest lies in the broad data science church and where the needs of the organisation are. The individual’s interest may be developing innovative algorithms to solve a new problem (the high-end data scientist described by Davenport and Patil), or identifying new business problems that can be solved with existing tools or distributed programming for Hadoop. The key is to match the organisation’s needs with an individual’s interest and not be bothered with the position title or the candidate’s label.

Finally, as for finding this rare species, let me point out that the characteristics of curiosity, self-direction and innovation are required in all scientific research. Fashioning tools to overcome a challenge has always been the hallmark of a research scientist. Didn’t Newton invent infinitesimal calculus when the mathematical tools at his disposal were insufficient to calculate the instantaneous speed? Furthermore, scientific research through PhD ensures that they are able to teach themselves new skills.

So, instead of looking to graduates from the newly designed data science majors, develop your own data scientists by first finding a PhD or Masters in a quantitative science such as physics, mathematics, statistics or computer science and then providing them data, time and autonomy. It worked for LinkedIn with Jonathan Goldman and for many other data-driven companies and it can work for you too!!

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The Data on FinTech Adoption

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Future Use of FinTech

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Top Reasons for Using FinTech

EY-top-six-reasons-for-not-using-fintech--infographics

Top Reasons for Not Using FinTech

EY:

We surveyed more than 10,000 digitally active people in Australia, Canada, Hong Kong, Singapore, the United Kingdom and the United States to better understand the overall rate of FinTech adoption, which users are adopting which products and the outlook for future usage.

Our survey shows that 15.5% of digitally active consumers have used at least two FinTech products within the last six months. As awareness of the available products and services increases, adoption rates could double within the year.

The first EY FinTech Adoption Index shows significant opportunity for both traditional and new generation of financial services providers to gain valuable market share by offering innovative FinTech products and services.

The index defines FinTech services as financial services products developed by non-bank, non-insurance, online companies. We evaluated 10 services in four categories: savings and investments, money transfer and payments, borrowing and insurance. Users were defined as digitally active consumers who use two or more FinTech products or services. The survey was conducted from 1 September 2015 to 6 October 2015.

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AI and IoT Among Disruptive Enterprise Technologies to Watch

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Dion Hinchcliffe:

In my analysis, all of the listed technologies should be on the short list of organizations in the process of digital transformation, which is to say enterprises that are proactively on a concerted effort to become more technology-centric organizations that think and act like leaders in the digital space.

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A Primer on Artificial Intelligence and Deep Learning from Andreesen Horowitz

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Things are clearly progressing rapidly when it comes to machine intelligence. But how did we get here, after not one but multiple “A.I. winters”? What’s the breakthrough? And why is Silicon Valley buzzing about artificial intelligence again?

From types of machine intelligence to a tour of algorithms, a16z Deal and Research team head Frank Chen walks us through the basics (and beyond) of AI and deep learning in this slide presentation.

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Artificial Intelligence is the New Big Data

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Source: CB Insights Trends

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Artificial Intelligence: Most Active Corporate Investors

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CB Insights:

Artificial intelligence dealmaking has exploded recently, leaping to a new quarterly record of over 140 deals in Q1’16.

Corporates and their venture capital groups are among the most active investors in this category (tech corporates have also been active acquirers in the category).

Some takeaways from our infographic:

  • Intel Capital is the most active corporate investor on our list, having backed  over a dozen separate unique AI-based companies, including healthcare startup Lumiata, machine-learning platform DataRobot, and imaging startup Perfant TechnologyIntel later acquired Indisys and Saffron Technology (as we’ve covered in our research, the pace of tech company M&A in AI has accelerated recently).
  • Expect Labs (MindMeld), which builds intelligent conversational interfaces, has backing from 4 investors on the list: Intel Capital,Google Ventures, Samsung Ventures, and In-Q-Tel.
  • Google Ventures, which backed over 10 unique companies, ranked second as an active investor in AI. As we earlier reported, Google is also a major acquirer of AI startups.
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