‘Adoption of AI and digital technologies is a competitive necessity’
One needs to hire the right talent and partners as a lot of the artificial intelligence and machine learning solutions are bespoke. One can’t buy them off the shelf, MALCOLM FRANK tells Sangeeta Tanwar
What are the key areas where artificial intelligence (AI) and machine learning (ML) is proving to be a game changer for organisations? There are three key areas where AI and ML are helping organisations transform their businesses. The first area is digitising the customer experience. Today, banks meet clients face-to-face to discuss opportunities and for portfolio management. All this is changing with digitally aligned processes. Now, we have many use cases of customer interface going completely digital. The second area of focus is developing smart products by creating digital extension of the machines and having AI support these products, thereby changing the value proposition completely. And the third area of focus and the one that is growing the fastest of all is robotic processes. This relates to automation of large-scale processes managed by employees which are not seen by customers directly. One such process is management of claims by the workforce in an insurance company. Organisations are looking to introduce AI platforms to take over these processes. How excited are clients to adopt AI and ML solutions? Some of the clients are very sophisticated as they recognise the potential of AI and ML solutions. Then there are those who have no idea about the transformative power of these technologies. As recently as three years ago, clients were just intrigued by social computing and the SMAC (social, mobile, analytics and cloud). Companies were looking at the same set of vendors for standardised solutions. But all that is changing with players like Amazon and others discovering the power of AI etc. Such companies started connecting the dots early on and it’s incredible to see where they are now. A lot of organisations are in exploratory stages as they realise that their strategy and customer engagement needs to get smarter. The combination of optimism and fear that clients today have shows that for them it is a competitive necessity to adopt AI and digital technologies. What does the adoption curve for ML technologies by organisations look like? The uptake is slow but ML technology is fast hitting an inflection point and we will soon see adoption picking up.
The adoption of ML and AI depends on where the organisation is focused. If you are an IT organisation, you are likely to recognise digital as a competency and focus on getting smarter, develop ML solutions on a priority basis. So, it is this focus that is going to trigger the kind of technology deployment, network architecture, data transfer and security protocols that an IT organisation will go for. Then, there would be very specific use cases. There are clients that are looking to redefine the product, customer experience and business process. And that is fairly heavy work. It requires confidence. Players like us need to show what organisations can possibly achieve by adopting AI and ML.
Also, the adoption is skewed in favour of big brands as a lot of them have the resource to invest in these technologies. Where the AI and ML market is right now, one needs to hire the right talent and partners as a lot of these solutions are bespoke, one cannot buy them off the shelf.
Do we have global examples of organisations embracing AI and ML?
One such company is JP Morgan. It has successfully implemented a couple of AI and ML-led solutions. The company has adopted a solution called COIN which manages its contract portfolio with commercial clients. It’s a laborious process. And a machine manages this task with speed and more accuracy.
On the job front, are AI and ML a threat?
In 20 years, probably every job will be touched by AI. The technology is growing universally. WhatsApp and Facebook — everything is driven by AI. And what this means is that on the job front, there may be blood. Worldwide, about 12 per cent white-collar jobs will get eliminated by machines. On the other hand, three quarters of jobs are going to be protected by AI. It will actually make people’s jobs more secure and better. Once AI, ML, and virtual and augmented reality go mainstream, these technologies will prove to be a huge job creator. If you are a worker, a company and a society that’s sitting and not doing anything you may get victimised. But if you are smart and make the right investments, AI and ML will create a lot of opportunities.
What is the suggested road map for organisations to adopt AI and ML?
I will suggest don’t plough the ocean. A grand plan to go digital and adopt AI at one stroke is going to fail. Start small. Pick two-three very focused areas and develop AI and ML practices. Within the company begin with processes that customers don’t see because there will be mistakes. Once you get confidence, leverage the team’s knowledge to design more AI and ML powered applications.