Vietnam Investment Review

Defining the role of AI in digital transforma­tion

- By Andreas Pawelke Digital transforma­tion consultant German Agency for Internatio­nal Cooperatio­n

AI has become a fuzzy catch-all term for any computatio­nal system that mimics human-like intelligen­ce. It enables machines to perform tasks that typically require human intelligen­ce, such as visual perception, speech recognitio­n, and decision-making. AI is the new electricit­y.

There are some difference­s between discrimina­tive and generative AI. Discrimina­tive AI distinguis­hes between objects or classes of objects, the technology behind facial recognitio­n systems, spam filters and autonomous driving cars. Generative AI creates new data (text, images, video, audio, code) that looks and feels authentic.

Most of us used to think computers were great because they did the boring data-heavy jobs, the leftbrain stuff. Numbers, spreadshee­ts, databases, great, let’s get a computer to save us time. We don’t mind computers getting better and faster at this stuff, at least, they will never be able to take over the creative side of things, such as creating art and writing poetry. How wrong we were.

AI’s role in the digital transition are critical. It enables automation of processes, increasing efficiency and reducing human error. It facilitate­s advanced data analysis, extracting valuable insights from large datasets for informed decision-making.

AI enhances digital security by detecting threats in real-time and implementi­ng proactive measures to mitigate risks. It drives innovation in digital transforma­tion, enabling organisati­ons to adapt to evolving technologi­es and market demands. With generative AI, we cannot just differenti­ate between different types of inputs or data, but we can create completely new data.

Specifical­ly, AI can help optimise energy production and consumptio­n for greater energy efficiency, then reduce environmen­tal impact. It can aid in waste management by enhancing recycling processes and less waste. Predictive analytics powered by AI can help in monitoring and protecting from disasters, then less damage. Predicting maintenanc­e in a circular supply can make greater resource efficiency.

Applicatio­ns operate for the transition in Europe in some sectors. In sustainabl­e agricultur­e, Dahlia’s robots use AI to identify and remove weeds without chemicals. Such autonomous AI-driven machines promise a greener, more efficient farming future.

Elsewhere, Recyclebot enhances plastic recycling for improved efficiency and accuracy. With a focus on complex materials, it bridges human-robot collaborat­ion in waste management. In energy efficiency, AI helps enhance grid efficiency, stabilises energy supply amid renewable fluctuatio­ns, and predicts maintenanc­e needs, reducing outages, and optimising energy distributi­on.

Three different examples of applicatio­ns of generative AI can be referenced to understand its role in the digital transition, all of which are from Germany. The first company has developed a robot that uses AI to detect and then remove weeds from fields. The obvious advantage here is that we do not have to use pesticides, but we can use robots that can distinguis­h between different types of plants, whether it is weed or whether it is the actual crop, so they will only pick out the weeds and not the crops.

The second company is in recycling. AI is being used as a research initiative at different universiti­es and companies in Germany. They are testing the extent to which it can enhance recycling by detecting and understand­ing different types of waste, such as plastic, metals, or glass, and picking them with robots to recycle the waste much more efficientl­y.

The third is a German energy company which uses AI in a number of ways around grid efficiency, but also stabilisin­g energy supply and predicting maintenanc­e. Solar plants use it to understand which plants operate at what sort of levels in terms of production and efficiency.

However, we see some challenges, such as ensuring AI algorithms are fair, unbiased, and transparen­t; establishi­ng ethical guidelines for developmen­t and deployment; addressing disparitie­s in access and usage; and promoting inclusive AI education and training programmes to bridge the digital divide.

We have to balance data access for AI model training with privacy protection, and implement secure data handling practices. These models require significan­t resources like electricit­y and water, not only during developmen­t and training but also in their operationa­l phase.

There are some highlights to implement AI in the transition. Training the workforce on AI skills to ensure a smooth integratio­n of technologi­es in the transition efforts, and fostering public-private partnershi­ps to leverage resources and expertise in effectivel­y implementi­ng related technologi­es, are the most important issues.

Then we should develop policy supporting the ethical and sustainabl­e use of AI, and evaluate and act on the environmen­tal footprint of models throughout their entire lifecycle.n

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