Artificial Intelligence - March 2018 - Deloitte

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Artificial Intelligence - March 2018 - Deloitte
Artificial Intelligence
March 2018
Artificial Intelligence - March 2018 - Deloitte
Proposal title goes here |
                          Section title goes here

What is AI? What is Machine
Learning? What is Cognitive
Analytics? How do these
terms relate, or differ, from
one another? In general
terms, AI refers to a broad
field of science encompassing
not only computer science
but also psychology,
philosophy, linguistics and
other areas.

02
Artificial Intelligence - March 2018 - Deloitte
Artificial Intelligence | Contents

Contents

Artificial Intelligence Defined                              04

Artificial Intelligence Techniques Explained                  10

Applications of AI                                            16

Five technology trends that leap-frog
Artificial Intelligence                                      22

AI opportunities for the future                               26

Authors                                                       31

Sources                                                       32

                                                                               03
Artificial Intelligence - March 2018 - Deloitte
Artificial Intelligence | Artificial Intelligence defined

04
Artificial Intelligence - March 2018 - Deloitte
Artificial Intelligence | Artificial Intelligence defined

Artificial Intelligence defined

The topic of Artificial Intelligence is at the top of its Hype curve1. And there are
many good reasons for that; it is exciting, promising and a bit scary at the same
time. Various publications are claiming that AI knows what we want to buy, it
can create Netflix series, it could cure cancer and it may eventually take our
jobs or even destroy mankind.2

The problem and at the same time                  Nevertheless, recent developments in           “AI refers to a broad field
opportunity with AI is that it’s not very well    AI are impressive and exciting. But also
defined. If we would show the navigation          overestimated and misunderstood. In
                                                                                                 of science encompassing
system of our car to someone living in            order to split hype from reality and help      not only computer science
1980, he or she would probably consider it        forming a view on this market, we will
as a form of Artificial Intelligence, whereas     publish a series of articles explaining the
                                                                                                 but also psychology,
we nowadays would probably not. We are            world of AI, zooming in to the techniques      philosophy, linguistics and
seeing the same with speech and image             that are associated with AI, the most
recognition, natural language recognition,        appealing business applications and
                                                                                                 other areas”
game engines and other technologies that          potential issues we can expect.
are becoming more and more common                 In this first article we will start with the
and embedded in every-day technology.             beginning, by explaining AI and associated
                                                  terms in five definitions. What is AI? What
On the other hand, various technology             is Machine Learning? What is Cognitive
solution providers are taking the                 Analytics? How do these terms relate, or
opportunity to rebrand their existing             differ, from one another?.
solutions to AI, to take advantage of
the huge hype and that the market is              Artificial Intelligence (AI)
experiencing and the resulting press              In general terms, AI refers to a broad
coverage. If we have a built a machine            field of science encompassing not only
learning model that predicts customer             computer science but also psychology,
demand, a solution that has been existing         philosophy, linguistics and other areas.
for years, we would have called it “data          AI is concerned with getting computers
mining” in the past and we now see it             to do tasks that would normally require
rebranded as “artificial intelligence”. This is   human intelligence. Having said that, there
adding to the confusion and may very well         are many point of views on AI and many
lead to inflated expectations.                    definitions exist. Below some AI definitions
                                                  which highlight key characteristics of AI.

1
  https://www.gartner.com/document/3380751/
2
  http://www.bbc.com/news/technology-37713629
2
  https://futureoflife.org/ai-open-letter/

                                                                                                                                                        05
Artificial Intelligence - March 2018 - Deloitte
Artificial Intelligence | Artificial Intelligence defined

          BIG DATA                                                                                                            REASONING

          Capable of processing massive                                                                     Ability to reason (deductive or
          amounts of structured and                                                                         inductive) and to draw inference
          unstructured data which can                                                                       based to the situation. Context
          change constantly                                                                                 driven awareness of the system.

                                                                                                            Capable of analyzing and
          Ability to learn based on historical                                                              solving complex problems in
          patterns, expert input and                                                                        special-purpose and general-
          feedback loop                                                                                     purpose domain

          LEARNING                                                                                                    PROBLEM SOLVING

Figure 1: Key characteristics of an AI system

Some general definitions:                                    Narrow AI vs General AI
                                                             A chess computer could beat a human
•• “Artificial intelligence is a computerized
                                                             in playing chess, but it couldn’t solve a
   system that exhibits behavior that
                                                             complex math problem. Virtually all current
   is commonly thought of as requiring
                                                             AI is “narrow”, meaning it can only do what
   intelligence.”3
                                                             it is designed for. This means for every
•• “Artificial Intelligence is the science of                problem, a specific algorithm needs to be
   making machines do things that would                      designed to solve it. Narrow AI are mostly
   require intelligence if done by man.” 4                   much better at the task they were made for
                                                             than humans, like face recognition, chess
The founding father of AI Alan Turing
                                                             computers, calculus, translation. The holy
defines this discipline as:
                                                             grail of AI is a General AI, a single system
•• “AI is the science and engineering of                     that can learn about any problem and then
   making intelligent machines, especially                   solve it. This is exactly what humans do:
   intelligent computer programs”. 5                         we can specialize in a specific topic, from
                                                             abstract maths to psychology and from
In all these definitions, the concept of
                                                             sports to art, we can become experts at all
intelligence refers to the ability to plan,
                                                             of them.
reason and learn, sensing and building
some kind of perception of knowledge and
                                                             An AI system combines and utilizes mainly
communicate in natural language.
                                                             machine learning and other types of data
                                                             analytics methods to achieve artificial
                                                             intelligence capabilities.

3
  Preparing for the Future of Artificial Intelligence, NSTC, 2016
4
  6. Raphael, B. 1976. The thinking computer. San Francisco, CA: W.H. Freeman2
5
  http://www-formal.stanford.edu/jmc/whatisai/node1.html

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Artificial Intelligence - March 2018 - Deloitte
Artificial Intelligence | Artificial Intelligence defined

                                               Artificial Intelligence
                                           Ability to sense, reason, engage
                                                       and learn
                                     Computer vision              Robotics & motion

                               Natural
                              language                                            Planning &
                             processing                                          optimization
                                                   Machine Learning
                                                     Ability to learn
                            Voice                 Unsupervised learning                Knowledge
                         recognition                                                    capture
                                        Supervised                    Reinforcement
                                         learning                        learning
                                                         Methods
                                                      Ability to reason
                                                        Regression
                                                      Decision trees
                                                             etc.

                                                       Technologies
                                                     Physical enablement
                                                          Platform
                                                              UX
                                                             APIs
                                                           Sensors
                                                             etc.

Figure 2: relation between AI, Machine Learning and underlying methods and infrastructure

Machine Learning                                                 Depending on the technique used, an             Cognitive Analytics
Machine learning is the process whereby                          algorithm can improve itself by adding a        Cognitive Analytics is a subset of A.I.
a computer distills meaning by exposure                          feedback loop that tells it in which cases it   that deals with cognitive behavior we
to training data6. If for example you want                       made mistakes.                                  associate with ‘thinking’ as opposed to
an algorithm to identify spam in e-mails,                                                                        perception and motor control. Thinking
you will have to train the algorithm by                          The difference with AI however is that          allows an entity to obtain information from
exposing it to many examples of e-mails                          a machine learning algorithm will never         observations, learn and communicate.
that are manually labeled as being spam or                       “understand” what it was trained to do. It
not-spam. The algorithm “learns” to identify                     may be able to identify spam, but it will not   A cognitive system is capable of extracting
patterns, like occurrence of certain words                       know what spam is or understand why we          information from unstructured data by
or combination of words, that determines                         want it to be identified. And if there is a     extracting concepts and relationships into
the chance of an e-mail being spam.                              new sort of spam emerging, it will probably     a knowledge base. For example, from a text
Machine learning can be applied to many                          not be able to identify it unless someone       about Barack Obama, the relations from
different problems and data sets. You can                        (human) re-trains the algorithm.                Figure 3 can be extracted using Natural
train an algorithm to identify pictures of                                                                       Language Processing. 80% of all company
cats in photo-collections, potential fraud                       Machine learning is at the basis of most        data is unstructured and current Cognitive
cases in insurance claims, transform                             AI systems. But while a machine learning        Analytics systems can search all of it to find
handwriting into structured text, transform                      system may look “smart”, in our definition      the answer to your question.
speech into text etc. All these examples                         of AI it is in fact not.
would require labeled training sets.

6
    Stephen Lucci, 2016, Artificial intelligence in the 21st century : A living introduction

                                                                                                                                                                        07
Artificial Intelligence - March 2018 - Deloitte
Artificial Intelligence | Artificial Intelligence defined

                      Mexico

               Neighbour

           USA

        President

     Barack Obama
                                                         Spouse
                                                                                   Michelle Obama
                               Father

          Father
                                                                                             Mother
                                               Mother

     Malia Obama                    Sibbling                                        Sasha Obama

Figure 3: A knowledge base extracted from text

Learning enables the Cognitive System                        Another important aspect of Cognitive
to improve over time in two major ways.                      Analytics is the ability to use context.
Firstly, by interacting with humans, and                     Context enables a Cognitive Analytics
obtaining feedback from the conversation                     system to infer meaning from language. For
partner or by observing two interacting                      example, a chatbot can take into account
humans. Secondly, from all the data in the                   the conversation history to infer who is
knowledge base, new knowledge can be                         referred to by the word he:
obtained using inference.

     User:                   Who is Obama’s wife?
     AI:                     Michelle Obama.
     User:                   How old is he?
     AI:                     Barack Obama is 55 years old.

Figure 4: Example conversation of a cognitive system

08
Artificial Intelligence | Artificial Intelligence defined

For this simple exercise, the system needs                are is vivid if we look at robots developed     Since Smart Machines are autonomous and
to be aware of names that represent                       by Boston Dynamics8 and MIT’s Cheetah II9.      intelligent, they might start communicating
people, relationships between people,                     Other example is Amelia10, an intelligent       among themselves. This leads to multi-
gender and the common sense to infer                      assistant with NLP capabilities. Key aspect     agent systems that can make trades
that Obama refers to Barack Obama. All of                 of robotics is that it combines hardware        to improve their utility. The building-
this contextual information is required to                (mechanical parts, sensors, screens etc.)       inspecting robot can ask a drone to inspect
make the right inferences to answer both                  with intelligent software and data to           the roof for him, trading this favor for
questions.                                                perform a task for which certain level of       another favor, like transporting goods or
                                                          intelligence is required (e.g. orientation,     simply currency.
Since Cognitive Systems are aware of                      motion, interaction etc.).
context, can understand unstructured                                                                      A Cognitive System that becomes a Smart
data and reason about information, they                   Smart Machines                                  Machine can specialize in a specific area,
can communicate with humans as well.                      The major theme in using the term “Smart        becoming an expert in that area. Now,
This enables the system to understand                     Machines” is autonomy. Smart Machines           other Smart Machines can ask it for
a question posed in English, no longer                    are systems that –to some extend- are able      information in that area, and it will be able
requiring the time-consuming process of                   to make decisions by themselves, requiring      to provide more relevant answers more
converting the question into a format the                 no human input. Cognitive Analytics             quickly than a general Cognitive System
computer can work with. For example,                      systems can be Smart Machines, as well          that is not specialized. Information brokers
a call center representative cognitive                    as robots, or any kind of AI, as long as it     like this improve the overall utility of the
system can quickly answer a customer’s                    adheres to this rule. In the case of a robot,   whole network of Smart Machines.
question about camping gear by using                      autonomy could consists of a capability to
information from product descriptions,                    plan where it wants to go, what it wants to     Conclusion
customer reviews, sales histories, topical                achieve and how to overcome obstacles.          The terms Machine Learning, Cognitive,
blogs, and travel magazines.7 Cognitive                   Rather than being human-controlled or           Robotics and smart machines are used
Systems can understand and communicate                    simply following instructions, it could         often in relationship to AI, or sometimes
through many mediums, including speech,                   achieve higher-level goals like getting         even as synonyms. AI is a complex field
image, video, sign language, graphs or any                groceries, inspecting buildings and so forth.   of interest, with many shapes and forms.
combination of these.                                     This is enabled by planning methods, self-      Therefore we have tried to shine some
                                                          preservation instincts on top of the skills     light on the most used terminology. In
Robotics                                                  that a normal robot already requires.           subsequent blogs, we will dive deeper in
AI is an important enabling factor in design              In the case of a Cognitive System, it will      techniques behind AI systems, business
and operationalizing smart robots and                     pro-actively try to learn new facts, gauge      applications, some associated technology
other process automation applications.                    opinions and learn new common sense             trends and the top 5 risks and concerns.
In its most simple form, a robot may be a                 rules by engaging in active conversation
machine that is programmed to perform                     with humans, asking questions and
a simple task, by following step-by-step                  double-checking them with data found
instructions. It could consist of a rule-based            online. It will also actively inform decision
engine that explicitely tells the system what             makers about changes it has observed, for
to do when a certain condition occurs. A                  example if the opinion of customers on
robot in a car factory Is programmed like                 social media suddenly makes a swing. It
that and hardly considered “intelligent”.                 could even act upon these changes, in the
But robotics exist in a variety of much more              example engaging with the customers or
intelligent shapes, ranging from unmanned                 sharing the positive opinions on the social
autonomous vehicles (UAV’s), drones, smart                media outlets of the company.
vacuum cleaners to intelligent chatbots and
smart assistants etc. How advanced robots

7
     Deloitte, Cognitive analytics™ The three-minute guide
8
     http://www.bostondynamics.com/
9
     https://biomimetics.mit.edu/research/dynamic-locomotion-mit-cheetah-2
10
     http://www.ipsoft.com/amelia/

                                                                                                                                                                 09
Artificial Intelligence | Artificial Intelligence techniques explained

10
Artificial Intelligence | Artificial Intelligence techniques explained

Artificial Intelligence
techniques explained

In order to ‘demystify’ Artificial Intelligence, and in some way get more people
involved in AI, we are publishing a series of articles explaining the world of AI,
zooming in on the techniques that are associated with AI, the most appealing
business applications, and potential issues we can expect.

The first blog article explained some of                    changing problem. Now a greedy heuristic
the most commonly used definitions of                       would be to always choose the largest
AI. In this second article we will explain                  denomination possible and repeat this
some fundamental AI techniques used:                        until we get to the desired value of 7. In
Heuristics, Support Vector Machines,                        our example, that means that we would
Neural Networks, Markov Decision Process,                   start with first selecting one 5 cent coin.
and Natural Language Processing.                            For the remaining 2 cents, the largest
                                                            denomination we can choose is 1 cent,
Heuristics                                                  leaving us with the situation where we still
Suppose we have coins with the following                    have to cover 1 cent for which we again
denominations: 5 cents, 4 cents, 3 cents,                   use 1 cent.
and 1 cent and we need to determine the
minimum number of coins to get 7 cents.                     So our greedy heuristic gives us a solution
In order to solve this problem we can make                  of 3 coins (5, 1, 1) to get to the value of
use of a technique called “heuristics”.                     7 cents. It can be easily seen that another,
                                                            better, solution of only 2 coins exist using
Webster1 defines the term Heuristic                         the 3 and 4 cent coins. While the greedy
as “involving or serving as an aid to                       heuristic for the coin changing problem
learning, discovery, or problem-solving                     does not provide the best solution for this
by experimental and especially trial and                    particular case, in most cases it will result in
error methods”. In practice, this means                     a solution that is acceptable.
that whenever problems get too large or
too complex to find the guaranteed best                     Besides such tailored heuristics for specific
possible solution using exact methods,                      problems, also certain generic heuristics
heuristics are a way to employ a practical                  exist. Just like neural networks, some of
method to find a solution that is not                       these generic heuristics are based on
guaranteed to be optimal, but one that is                   processes in nature. Two examples of
sufficient for the immediate goals.                         such generic heuristics are Ant Colony
                                                            Optimization2 and genetic algorithms3.
For some problems, tailored heuristics                      The first is based on how simple ants are
can be designed that exploit the structure                  able to work together to solve complex
present in the problem. An example of                       problems and the latter is based on the
such a tailored heuristic would be a greedy                 principle of survival of the fittest.
heuristic for the above mentioned coin-

1
    https://www.merriam-webster.com/dictionary/heuristic
2
    https://en.wikipedia.org/wiki/Ant_colony_optimization_algorithms
3
    https://en.wikipedia.org/wiki/Genetic_algorithm

                                                                                                                                                                      11
Artificial Intelligence | Artificial Intelligence techniques explained

Figure 1

                            1
                                 3

                        2

Figure 3                                                    Figure 2

A typical problem where heuristics are                      the boundary line creates a maximum            The two dotted lines are the two parallel
applied to find acceptable solutions quickly                separation between the classes. To             separation lines with the largest space
is vehicle routing, where the objective is to               demonstrate this, we will use the following    between them. The actual classification
find routes for one or more vehicles that                   simple data for our classification problem     boundary that is used will be the solid
have to visit a number of locations.                        (Figure 1).                                    line exactly in the middle of the two
                                                                                                           dotted lines.
Support Vector Machines                                     In this example, the green circles and the
The question whether an email is spam or                    red squares could represent two different      The name Support Vector Machine comes
not spam is an example of a classification                  segments in a total set of customers (e.g.     from the data points directly on either of
problem. In these types of problems, the                    high potential and low potential), based       these lines are the supporting vectors. In our
objective is to determine whether a given                   on all kinds of properties for each of the     example, we had 3 supporting vectors.
data point belongs to a certain class or not.               customers. Any line that keeps the green
After first training a classifier model on data             circles on the left and the red squares on     If any of the other data points (i.e. not a
points for which the class is known (e.g.                   the right is considered a valid boundary       supporting vector) is moved slightly, the
a set of e-mails that are labeled as spam                   line for the classification problem. There     dotted boundary lines are not affected.
or not spam), you can then use the model                    is an infinite number of such lines that can   However, if the position of any of the
to determine the class of new, unseen                       be drawn and 4 different examples are          supporting vectors is slightly changed (e.g.
data-points. A powerful technique for                       presented on top (Figure 2).                   data point 1 is moved slightly to the left),
these types of problems is Support Vector                                                                  the position of the dotted boundary lines
Machines4 (SVM).                                            As stated before, with SVM you try to find     will change and therefore the position of
                                                            the boundary line that maximizes the           the solid classification line also changes.
The main idea behind SVM is that you try                    separation between the two classes. In
to find the boundary line that separates                    the provided example, this can be drawn
the two classes, but in such a way that                     as Figure 3:

4
    https://en.wikipedia.org/wiki/Support_vector_machine

12
Artificial Intelligence | Artificial Intelligence techniques explained

In real life, data is not as straightforward                          Biological neuron                                        Artificial neuron
as in this simplified example. We
normally work with much more than
two dimensions. Besides having                                                                                       X1

straight separation lines, the underlying
mathematics for an SVM also allows for
                                                                                                                    X2                                    Output
certain type of calculations or kernels that
result in boundary lines that are non-linear.
                                                                                                                    X3
SVM classification models can also be
found in image recognition, like face
recognition or converting handwriting                     Figure 4: Graphical representation of a biological neuron (left) and an artificial
to text.                                                  neuron (right)

Artificial Neural Networks                                Where in the biological brain learning takes       all the inputs are received, processed and
Animals are able to process (visual or other)             place by strengthening or weakening the            converted to outputs to the next layers.
information from their environment and                    bonds between different neurons, in the            The hidden layers consist of one or more
react adaptively to a changing situation.                 ANN the learning takes place by changing           layers of neurons each passing through
They use their nervous system to perform                  the weights between the neurons. By                inputs and outputs. Finally, the output layer
such behavior. Their nervous system can                   providing the neural network with a large          receives inputs of the last hidden layer and
be modeled and simulated and it should be                 set of training data with known features the       converts this to the output for the user.
possible to (re)produce similar behavior in               best weights between the artificial neurons
artificial systems. Artificial Neural Networks            (i.e. strength of the bond) can be calculated      Figure 2 shows an example network where
(ANN) can be described as processing                      in order to make sure the neural network           all neurons in one layer are connected
devices that are loosely modeled after the                best recognizes the features.                      to all neurons in the next layer. Such a
neural structure of a brain. The biggest                  The neurons of the ANN can be structured           network is called fully connected. Depending
difference between the two is that the                    into several layers5. Figure 5 shows an            on the type of problem you want to solve
ANN might have hundreds or thousands                      illustrative scheme of such layering. This         different connection patterns are available.
neurons, whereas the neural structure of                  network consists of an input layer, where          For image recognition purposes, typically
an animal or human brain has billions.

The basic principle of a neural structure                                                           Hidden layers
is that each neuron is connected with
a certain strength to other neurons.
Based on the inputs taken from the
                                                                                                                                    Output layer
output of other neurons (also considering
the connection strength) an output is
generated which can be used as input                        Input layer
again by other neurons, see Figure 1 (left).
This basic idea has been translated into an
artificial neural network by using weights
to indicate the strength of the connection
between neurons. Furthermore, each
neuron will take the output from the
connected neurons as input and use a
mathematical function to determine its
output. This output is then used by other                 Figure 5: Schematic of a connected ANN
neurons again.

5
    http://neuralnetworksanddeeplearning.com/chap1.html

                                                                                                                                                                   13
Artificial Intelligence | Artificial Intelligence techniques explained

Convolutional networks are used, where                      •• Once the MDP is defined, a policy can be                             -1

only groups of neurons from one layer are                      trained using “Value iteration” or “Policy
connected to groups of neurons in the next                     Iteration”. These methods calculate the
layer. For speech recognition purposes,                        expected rewards for each of the states.                                       +3

typically Recurrent networks are used, which                   The policy then gives the best action that
allow for loops from neurons in a later layer                  can be taken from each state.                                   -3

back to an earlier layer.                                                                                      -1                                        -1

                                                            As an example, we will define a grid which
Markov Decision Process                                     can be seen as an ideal, finite world for                         -10                  +10
A Markov Decision Process (MDP) is a                        a robot7. This example grid is shown in
framework for decision-making modeling                      Figure 6.
where in some situations the outcome
                                                                                                                                    -1
is partly random and partly based on                        The robot can move (action) from each
the input of the decision maker. Another                    position in the grid (state) in four directions,
                                                                                                               Figure 6: Example – grid world of
application where MDP is used is planning,                  namely north, left, right and south. The
                                                                                                               a robot
where the planning is optimized. The                        probability that the robot goes into the
basic goal of MDP is to find a policy for the               desired direction is 0.7 and 0.1 if it goes
decision maker, tells him which particular                  towards any of the other 3 directions. A           Natural Language Processing
action should be taken at which state.                      reward of -1 (i.e. a penalty) is given if the      Natural Language Processing, or NLP in
                                                            robot bumps into a wall and doesn’t move.          short, is a term for everything from speech
An MDP model consists of the                                Also, additional rewards and penalties are         recognition to language generation, each
following parts6:                                           given if the robot reaches the cells that are      requiring different techniques. A few of
                                                            colored green and red, respectively. Based         the important techniques will be explained
•• A set of possible states: for example,
                                                            on the probabilities and rewards a policy          below, which are Part-of-Speech tagging,
   this can refer to a grid world of a robot
                                                            (function) can be made using the initial and       Named Entity Recognition, and Parsing.
   or the states of a door, door open and
                                                            final state.
   door closed.
                                                                                                               Let us examine the sentence “John hit
•• A set of possible actions: a fixed set of                Another example where MDP can be                   the can.” One of the first steps of NLP is
   actions a robot for example can take,                    used is the inventory planning problem,            lexical analysis, here a technique is used
   such as going north, left, south or west.                where a stock keeper or manager each               called Part-of-Speech (POS) tagging. With
   Or with respect to a door, closing or                    week has to decide how many units have             this technique every word is tagged to
   opening door.                                            to be ordered. The inventory planning can          correspond to a category of words which
                                                            be modeled as an MDP, where the states             have similar grammatical properties,
•• Transition probabilities: this is the
                                                            can be considered positive inventory and           based on its relationship with adjacent and
   probability of going from one state to
                                                            shortages. Possible actions are for instance       related words. Not only words are tagged,
   another state. For example, what is
                                                            ordering new units or backlogging to the           but also paragraphs and sentences. Part-
   the probability that the door is closed,
                                                            next week. Transition probabilities can be         of-speech tagging is mainly done with
   after the action of closing the door
                                                            considered as the action that will be taken        statistical models, which give probabilistic
   is performed.
                                                            based on the demand and inventory for              results instead of hard if-then rules, and
•• Rewards: these are used to guide the                     the current week. Rewards, or in this case,        is therefore more capable of processing
   planning. With respect to the robot and                  costs are typically unit order costs and           unknown text. Also, they can cope with the
   the grid example, a robot may want to                    inventory costs.                                   possibility of multiple possible answers,
   move north to reach its destination.                                                                        instead of only one. A technique which is
   Actually going north will result in a                                                                       often used for tagging is a Hidden Markov
   higher reward.

6
    https://www.cs.rice.edu/~vardi/dag01/givan1.pdf
7
    http://artint.info/html/ArtInt_224.html

14
Artificial Intelligence | Artificial Intelligence techniques explained

Model (HMM). An HMM is similar to the                      A final technique to be discussed is called                         S
Markov Decision Process, where each state                  Parsing (Syntactic Analysis). With parsing,
is a part of speech and the outcome of                     the text is analyzed for grammar and
the process is the words of the sentence.                  the arranging of the words so that the                   N                      VP
HMM’s ‘remember’ sequences of words                        relationship between the words is clear.
that came before and can, based on this,                   This is done by using the Part-of-Speech tag
                                                                                                                                   V                NP
make better estimates of what POS a                        from the lexical analysis and then grouping
word is. For example: ‘can’ in ‘the can’, is               these into small phrases, which in turn can
more likely to be a noun than a verb. The                  also be combined with other phrases or                                            D             N
end result is that the words are tagged as                 words to make a slightly longer phrase. This
followed: ‘John’ as a noun (N), ‘hit’ as a verb            is done until the goal is reached: to have
(V), ‘the’ as a determiner (D) and ‘can’ as a              used every word in the sentence. The rules             John             hit      the           can.
noun (N) as well.                                          how the words can be grouped are called
                                                                                                             Figure 7
                                                           the grammar and can take a form like this:
Named Entity Recognition or NER, is similar                D+N = NP, which reads: a Determiner +
to POS tagging. Instead of tagging words                   Noun = Noun Phrase. The final result is
with what function the word has in the                     depicted in the figure 7.
sentence (POS), words are tagged with
the type of entity the word represents.                    Conclusion
These entities can be for example person,                  The techniques used within the domain
company, time, location, etc. But also                     of Artificial Intelligence are, when you
more specialized entities such as gene,                    dive into them, just advanced forms of
or protein. Although an HMM can also be                    statistical and mathematical models. All
used for NER, the technique of choice is a                 these models cleverly put together give us
Recurrent Neural Network (RNN). An RNN                     tools to compute tasks, previously thought
is a different type of neural network as                   to be reserved for humans. In subsequent
discussed earlier, but it takes sequences                  blogs we will dive deeper in business
as input, that is a number of words in                     applications, some associated technology
a sentence, or complete sentences,                         trends, and the top 5 risks and concerns.
and remembers the output from the
previous sentence.8 In the sentence we
are looking at, it will recognize John as the
entity ‘person’.

8
    More on RNN: http://karpathy.github.io/2015/05/21/rnn-effectiveness/

                                                                                                                                                                  15
Artificial Intelligence | Applications of AI

16
Artificial Intelligence | Applications of AI

Applications of AI

In order to ‘demystify’ Artificial Intelligence (AI), and in some way get more
people involved in it, we are publishing a series of articles explaining the
world of AI, zooming in on the techniques that are associated with it, the most
appealing business applications, and potential issues.

In our second blog article, we covered       claim. The insurance employee then only
some fundamental AI techniques. In           needs to do a quick check before approving
this article we take the next step and       the recommendation. This can save a lot of
will discuss 5 applications of AI: Image     time and increase the quality of the work.
recognition, Speech recognition, automatic   This is just one example. In the remainder
translation, Q&A and Games.                  of this article we will discuss 5 exciting
                                             applications in which we will see great
Introduction                                 development in the coming years:
For a lot of tasks, computers are becoming
                                             •• Image recognition
or are already better than humans.
The calculator on your cellphone for         •• Speech recognition
example, can calculate the most difficult
                                             •• Translation
multiplications in an instance that would
take people a few minutes and a piece        •• Q&A
of paper and pen. It has already been
                                             •• Games
a long time since the world champion
of chess was able to beat the strongest
                                             These developments will make applications
chess computers. In the past few years
                                             cheaper and more accurate, opening the
however, computers started doing
                                             door for business to use them.
typically human things such as seeing and
hearing, which they do as good as, if not
                                             Image recognition
better than people. Google can recognize
                                             Recognizing images is an easy task for
exactly which things are present on an
                                             most of us. We don’t have any trouble
image and Siri can understand what
                                             differentiating a car from a tiger or
you are saying, to name a few examples.
                                             recognizing that a car is still a car when
In the coming years the intelligence
                                             you observe it from the front instead of
of these applications will increase in a
                                             from the side. This task has been proven
rapid pace, due to developments in the
                                             considerably more difficult for computers,
field of neural networks and increased
                                             but recent progress in image recognition
computational power.
                                             accuracy has resulted in interesting
                                             applications. Because different vendors
The increased accuracy, availability,
                                             like Google and IBM are offering their
and ease of implementation of artificial
                                             preprogrammed algorithms open source
intelligence methods creates opportunities
                                             and software libraries like Tensorflow1
for companies to apply them in their
                                             make it possible to construct your own
business. As an example, insurance
                                             algorithms, visual recognition is becoming
companies use AI to read claims from
                                             more accessible for the public.
their clients, understand if the claim
is difficult or easy, and it can give a
recommendation on how to handle the

1
    https://www.tensorflow.org/

                                                                                                                                    17
Artificial Intelligence | Applications of AI

Well-known applications of image                        and tested it on a large publicly available             to observe their behavior as an effect of
recognition are Google’s shopper app2                   dataset, which they describe in a pre-print             product displays, or the traffic flow in the
or facial recognition for security cams.                of the article5. The vision of IBM is that at           store. This is a familiar concept in web
Such applications are already using image               a certain point medical staff can send a                shops, where A/B testing can be used
recognition on a daily basis, however there             picture of skin irregularities to Watson, the           to see which website display yields the
has been a lot of development in other                  same way that they send blood sample to                 best profits, however this suggests that
areas over the last few years. IBM Watson,              the lab.                                                facial recognition tools can be used to
which we know from playing Jeopardy3,                                                                           orchestrate these tests live in a store.
has developed its image recognition skills              Facial recognition, which we mainly know                Different software development
in the field of medicine. IBM Research has              from security cameras, has also been                    companies are offering facial recognition
been working on deep learning techniques                developed in other areas6. A survey of 150              for retailers7/8. They apply specific
for computer vision4 that could be used to              retail executives by Computer Services                  algorithms that use facial landmarks to
recognize whether skin irregularities are               Corporation, which was held in the UK in                recognize and distinguish between faces,
melanoma. They created an ensemble of                   2015, suggested that a quarter of all British           which can be saved and later matched
methods that can segment skin lesions                   shops use facial recognition software.                  to enhance customer experience and
and methods that can detect the area                    The software is used for security, as one               personalize service.
and surrounding tissue for melanoma                     might expect, but also to track customers

Figure 1: A mannequin of Saks Fifth Avenue, an early adaptor of the facial recognition software in retail22.

2
  https://google-shopper.en.softonic.com/android
3
  http://www.techrepublic.com/article/ibm-watson-the-inside-story-of-how-the-jeopardy-winning-supercomputer-was-born-and-what-it-wants-to-do-next/
4
  https://www.ibm.com/blogs/research/2016/11/identifying-skin-cancer-computer-vision/
5
  https://arxiv.org/abs/1610.046623 http://artint.info/html/ArtInt_224.html
6
  https://www.theguardian.com/cities/2016/mar/03/revealed-facial-recognition-software-infiltrating-cities-saks-toronto
7
  https://www.scnsoft.com/case-studies/facial-recognition-for-retail
8
  https://www.facefirst.com/industry/retail-face-recognition/

18
Artificial Intelligence | Applications of AI

Speech recognition
                                                         Voice Word Accuracy Rates Improving Rapidly...
Speech recognition is an AI application that             +90% Accuracy for Major Platforms
recognizes speech and can turn spoken
words into written words. It is hardly                                                                                               Word Accuracy Rates by Platform*, 2012 – 2016
used on its own but it is largely used as                                                                                  *Word accuracy rate definitions are unique to each company...see footnotes for more details

an addition to Chatbots, virtual agents
                                                                                    100%
and mobile applications. Well known                                                 90%
examples are Apple’s Siri, Google Home                                              80%
                                                           Word Accuracy Rate (%)

and Microsoft’s Alexa. Speech recognition                                           70%
started already in 1952 with ‘Audrey’ 9.                                            60%

Audrey was able to recognize digits spoken                                          50%
                                                                                    40%
in a single voice, which is quite impressive
                                                                                    30%
given the computers back then. Today we
                                                                                    20%
have applications on our phone and in our                                           10%
car that can respond to our voice.                                                   0%
                                                                                                                                                                                                                                                                                                                   3
                                                                                                                            Baidu 1                                                                                  Google 2                                                                 Hound Voice Search
                                                                                                                         (2012 - 2016)                                                                            (2013 - 2015)                                                                & Assistant App
Not only the amount of applications with                                                                                                                                                                                                                                                         (2012 - 2016)
voice recognition capacity has increased,                                              Source: Baidu, Google, VentureBeat, SoundHound
                                                                                       Note: *Word Error Rate (WER) definitions are specific to each company. Word accuracy rate = 1 - WER. (1) Data shown is word accuracy rate on Mandarin speech recognition on one of Baidu's speech
                                                                                       tasks. Real world mobile phone speech data is very noisy and hard for humans to transcribe. A 3.5% WER is better than what most native speakers can accomplish on this task. WER across different

also the accuracy of voice to words has
                                                                                       datasets and languages are generally not comparable. (2) Data as of 5/15 and refers to recognition accuracy for English language. Word error rate is evaluated using real world search data which is
                                                                                       extremely diverse and more error prone than typical human dialogue. (3) Data as of 1/16 and refers to recognition accuracy for English language. Word accuracy rate based on data collected from
                                                                                       thousands of speakers and real world queries with noise and accents.

improved dramatically over the last few
                                                         Figure 2: A table from the KPCB report of internet trends about the incline in
years according to KPCB10.                               accuracy of speech recognition10

One of the business applications that has
gained quite a lot of ground is the use of
                                                       Translation                                                                                                                                                     The usage of deep learning has had a
speech recognition in health care11. A lot of
                                                       A different topic with large business                                                                                                                           significant impact on the quality of machine
physicians are working with an electronic
                                                       implications is automatic translation.                                                                                                                          translations by completely shifting the
health record (EHR) to document patient
                                                       This topic can be defined as the process                                                                                                                        paradigm. Rather than working in a rule-
information, however this has been said
                                                       of translating text from one language to                                                                                                                        based way, powered by human decision
to delay the consults and to restrict the
                                                       another by using software. Traditionally,                                                                                                                       making, translation using a neural network
patient narrative. Using speech recognition,
                                                       translation was done by substituting each                                                                                                                       is completely based on mathematics. On
patient documentation can be recorded
                                                       word by its closest counterpart in the other                                                                                                                    relatively basic texts, the GNMT system
in a flexible and fast manner, which allows
                                                       language. While this works reasonably                                                                                                                           translations approach the quality of
the physician to pay more attention to the
                                                       well for single words, a pair of words or                                                                                                                       human translators. An experiment even
patient. This solution is already offered by
                                                       sentences are generally harder to process                                                                                                                       showed that when you translate English
different vendors such as Nuance12 and
                                                       correctly due to the fact that relations                                                                                                                        to Korean and subsequently translate
M*Modal13.
                                                       between words are important for the                                                                                                                             English to Japanese, the model is able to
                                                       meaning of a sentence, but such nuances                                                                                                                         translate Korean to Japanese reasonably
The rapid improvement of speech
                                                       cannot be captured when each word is                                                                                                                            well, without any prior training focused on
recognition accuracy offers a lot of
                                                       analyzed separately.                                                                                                                                            the formal link between the two languages.
opportunities in the near future. Having
                                                                                                                                                                                                                       One article even asked the question: “have
all our soft- and hardware voice controlled
                                                                                                                                                                                                                       computers invented their own internal
might not be as far away as many people
                                                                                                                                                                                                                       language?”8.
think.

9
     http://www.pcworld.com/article/243060/speech_recognition_through_the_decades_how_we_ended_up_with_siri.html
10
     https://www.slideshare.net/kleinerperkins/2016-internet-trends-report/119-KPCB_INTERNET_TRENDS_2016_PAGE119Voice
11
     http://www.healthcareitnews.com/news/speech-recognition-proving-its-worth
     http://www.cleverbot.com/
12
     https://www.nuance.com/healthcare/physician-and-clinical-speech/dragon-medical.html
13
     https://mmodal.com/speech-solutions/

                                                                                                                                                                                                                                                                                                                       19
Artificial Intelligence | Applications of AI

The impact of quality translations in a         something that can be seen in many
global economy are enormous. With               business applications. After an intent is
business translations originally dominated      distilled from the command of a user, it
by conversions between European                 can be linked to a specific follow up action.
languages, the need for translations            This action can range anywhere from
to Chinese, Japanese, and Korean is             asking a return question to the retrieval
increasing9. A simple example is one that       of information from the internet. In the
Uber was investigating, where automatic         area of customer service, Chatbots are
translation takes place between you             quickly becoming the norm, one example
and your local Uber driver, who can only        being IPsoft’s Amelia12. Standard queries
communicate in Chinese.                         are already handled automatically, with
                                                only the difficult ones being forwarded
Question answering                              to human decision makers. Question
Q&A agents or Chatbots are another              answering has also made an introduction
example of applying AI to language.             in the field of Law, where lawyers can
When talking about the ability of having        pose questions in natural language to an
conversations, distinctions are made in         intelligent assistant about legal cases. The
the domain and the way of generating            assistant can respond to the query with the
an answer of the agent. A chatbot can           relevant passage, drawn from high quality
be focused on answering questions               legal documentation13.
in an open or closed domain. When it
operates in an open domain, it should           Game/ Solver
be able to answer general questions that        One of the most exciting applications of AI
can concern any topic (see for example          lies in playing games. Playing a game well
cleverbot). This is generally harder than       requires you to not only know the rules, but
a closed domain, which concerns only a          to calculate the next possible moves within
limited amount of topics. Closed domains,       these rules, and finally make a careful
however, have very good business                judgement on which move would give you
application such as answering questions         to best chance to win. If computers can
at helpdesks. A couple of years ago, there      play games as well as human players, there
was a breakthrough in question answering        are no reasons why they cannot learn any
interest, when IBM Watson beat humans in        other difficult task that people do in their
a game of Jeopardy, a well-known American       daily work (although human supervision
quiz show10. More recently another              probably remains needed).
breakthrough was made by Google,
who can now give chatbots the ability to        Recently there was a big step forward in the
have a short term memory, which gives           field of games when the world Champion
the chatbot the ability to mimic real-life      of Go was beaten by a computer for the
conversations more realistically11.             first time. Go is a game that cannot be
                                                brute-force calculated, since the number of
The ability of machines to recognize intent     possible moves is higher than the number
(or the purpose) from a question and            of stars in the universe. The top Go players
to answer it in a variety of ways, is again     of the world rely for a large part on their

20
Artificial Intelligence | Applications of AI

intuition to come to the best moves.               large datacenters. The AI controls over
Google’s AlphaGo (a neural network based           120 variables in Google’s datacenters,
go-engine), however, learned how to play           such as the windows, fans and cooling
like a top human player by studying millions       systems, optimizing for energy usage while
of human games. It then became even                keeping computing performance up. The
stronger by playing against another version        optimization potentially lowers Google’s
of itself millions of times, which finally         energy bill for hundreds of millions over
enabled it to beat the world champion.             several years. Another application lies in
If computers can beat human players                healthcare, where an app of Deepmind
in one of the most complicated games               saves nurses over two hours of time per
that currently exists, then where do the           day by warning about upcoming acute
possibilities for AI stop?                         kidney failure. These are two applications,
                                                   but since this is a newly developed field
One big advantage people still have                there is a huge potential for more. Think
over computers, is that we can take our            about predicting stock prices, optimizing
knowledge and training in one area, and            the layout of distribution centers.
apply it to a new task or area. For example,       Imagination and available data are the limit.
good go players can apply their way of
thinking to solve their daily problems in          Conclusion
their jobs. AlphaGo cannot do this: it is          We have discussed a few applications
only good at playing go and nothing else.          of AI that will become more advanced
When you make it learn something else,             the coming years and that will probably
like chess, it will lose its ability to play go.   become more and more common in our
Recently however, a first step was taken in        daily lives. In the series of AI blogs we
overcoming this problem: neural networks           have tried to shed light on applications of
are now able to remember to most                   AI that everyone will encounter at some
important knowledge from one game, and             point and give some examples of where
at the same time learn a new game (link).          these applications might lead to in the near
Google Deepmind wrote a new algorithm              future. In the next blog we will address 5
that allowed a neural network to learn 10          trends that leapfrog AI adoption.
Atari games at the same time, and play
them with human performance.

Once this field will be more developed,
computers will be able to perform series
of difficult tasks that at the moment only
people can perform. Google themselves
use it to lower the energy bills of their

                                                                                                                                             21
Artificial Intelligence | Five technology trends that leap-frog Artificial Intelligence

22
Artificial Intelligence | Five technology trends that leap-frog Artificial Intelligence

Five technology trends that leap-frog
Artificial Intelligence

In our first two articles about AI terminology1 and techniques, we have
discussed the definitions and techniques that make up AI. But developments in
AI do not stand on its own. The broader field of technology development have
a huge interrelationship with the adoption of AI, making it more accessible on
one hand and driving the need to use AI on the other hand

In this article, we will elaborate on a few                   HavenOnDemand allow you to quickly build
broader technology developments that are                      and run applications. With cloud ‘Analytics
leap-frogging the adoption of AI. Trends                      as a Service’ (AaaS) offerings, organizations
or factors of growth that bring AI to more                    can experiment with AI and begin to build
people and organizations, of which some of                    intelligent applications without harness
the more important trends are described                       existing IT infrastructure.
in this article.
                                                              2. Big Data
1. Cloud                                                      Second amongst the recent accelerators
One of the first trends that enables the                      for AI is big data, or more specifically:
rapid growth of AI is cloud computing.                        large, fast, and/or unstructured data.
As explained in our previous article2,                        Think of all the information in images, text,
AI techniques are based on complex                            sensor data or other data generated by
mathematical models and require large                         for example mobile devices. Right now,
amounts of training data (examples) to                        80% of all company data is unstructured
learn their intelligent capabilities. Therefore               and increases much faster in size than its
building, improving and running AI                            structured counterpart4. In recent years,
applications requires immense computing                       technology has become widely available
power. Cloud technology offers that in                        to capture, store and process that data.
a flexible and scalable environment at                        Therefore, many companies have invested
relatively low-cost and without huge                          in building “Data Lake” platforms manage
initial investments.3                                         their Big Data.

In addition, the IT infrastructure of large                   The potential for applications of this
corporates is often too big and too rigid                     unstructured data is huge and yet largely
to experiment with AI applications across                     untapped. AI techniques make it possible
and within the enterprise platforms. AI                       to process and analyze unstructured
cloud services such as Amazon AWS AI,                         data, allowing business to obtain valuable
Microsoft Cortana, IBM Bluemix/Watson,                        insights from the information and improve
Google Cloud Machine Learning and HPE                         their decision making. It can potentially

1
    Part 1: Artificial Intelligence defined - https://www2.deloitte.com/nl/nl/pages/data-analytics/articles/part-1-artificial-intelligence-defined.html
2
    Part 2: Artificial Intelligence Techniques Defined: https://www2.deloitte.com/nl/nl/pages/deloitte-analytics/articles/part-2-artificial-intelligence-techniques-
    explained.html
3
    The Cloud: technical advantages - https://www2.deloitte.com/au/en/pages/deloitte-private/articles/cloud-computing-deloitte-private.html
    https://www.nuance.com/healthcare/physician-and-clinical-speech/dragon-medical.html
4
    Dark analytics: illuminating opportunities hidden in unstructured data: https://dupress.deloitte.com/dup-us-en/focus/tech-trends/2017/dark-data-
    analyzing-unstructured-data.html
                                                                                                                                                                                23
Artificial Intelligence | Five technology trends that leap-frog Artificial Intelligence

find patterns and complex relationships by                    3. APIs                                                  4. Open Source
shifting through billions of observations.                    Perhaps the easiest way to start building                Although APIs are a great way to start
For example, in the process of assessing                      intelligent applications is by using                     building AI applications, they are very
insurance claims, intelligent AI applications                 Application Programming Interfaces                       specifically aimed at achieving a certain
can automatically understand natural                          (APIs). An API is a piece of out-of-the-box              task. When you need to perform a machine
language from texts and analyze images                        functionality that can be called from                    learning task that isn’t available through
such as photographs. By using these                           another program or App. If for example,                  an API, you can build one yourself. This
techniques, AI applications have the                          your app requires face recognition, you                  requires knowledge, complex algorithms
potential of detecting fraud earlier, improve                 can call an API rather than program it                   and frameworks.
the quality and consistency of the claim                      yourself. Many of the large technology
assessment and make the process more                          firms offer APIs in the field of computer                Today, increasingly more AI algorithms and
efficient. This is only one out of many                       vision, speech recognition, and natural                  frameworks are available as Open Source,
example use cases.                                            language processing (NLP) or other                       meaning they are publicly available and
                                                              cognitive domains on their cloud platforms.              often at no license cost. Consequently,
While on the one hand AI is the solution                      Intelligent APIs are pre-trained and pre-                developers of AI applications can rely on
to analyze large amounts of unstructured                      configured models for a certain task and                 the knowledge and previous work of a large
data, AI on the other hand needs big data                     serve as gateways to AI applications.                    user base. That makes this trend our fourth
in order to become ‘intelligent’. As already                  This can be illustrated with the Visual                  accelerator of the AI uptake. An example
mentioned in the previous section and our                     Recognition6 API from IBM. When this API                 of open source AI software is TensorFlow
previous article, AI applications need to be                  is called and receives an image of a car,                from Google.
trained with many examples. Think of this                     it recognizes the car, and perhaps other
as personal development: during your life,                    objects that are on the provided image. The              TensorFlow is an open source machine
you learn from experience (examples given                     recognized objects are returned to the user              learning library with many different
by your environment), which enable you                        with a certain amount of confidence for                  algorithms and frameworks7. Open source
to perform certain tasks and get better,                      each class of objects.                                   training sets are available these days which
leading to more expertise. This can be                                                                                 allow for loading Intelligence directly into
illustrated by an example of Tesla’s Fleet                    Furthermore, APIs do not need to be used                 your AI application8.
Learning5, where all Tesla’s continuously                     as standalone services. They can serve as
share the data with the central intelligence                  building blocks for combined intelligent                 A simple comparison between an API and
system, such as map data: where is                            applications. For example: building a                    the underlying open source framework
driven when - and at what speed. Once                         speech translator assistant requires a                   can be illustrated by the following example.
a significant number of cars report on a                      speech-to-text API, a translation API and a              Google’s Speech API can be used to
changing condition (due to i.e. poor road                     text-to-speech API to return the translation             develop applications that receive audio
conditions, works, etc.) the system is                        in the other language. This modular                      from its user and convert it to plain text.
updated allowing others cars to learn to                      characteristic of APIs makes them very                   To do this, Google’s API uses techniques
anticipate on the changed condition.                          useful for a wide range of AI applications.              such as deep learning and is trained with
Hence the relationship between AI and big                     Using cognitive APIs is the easiest and                  millions of examples. Next to this API,
data is two-fold: big data is a prerequisite                  quickest way to start building and                       Google also made the source code for
for AI and AI is the solution to process                      integrating an AI application.                           the (deep learning) neural network itself
unstructured data and derive insights                                                                                  publicly available. However, with only the
from it.                                                                                                               source code, no audio can be converted

5
     PTesla’s Fleet Learning - http://gas2.org/2017/02/14/fleet-learning-capacity-key-teslas-lead-self-driving-race/
6
     Visual Recognition by IBM - https://www.ibm.com/watson/developercloud/visual-recognition.html
7
     TensorFlow by Google - https://www.tensorflow.org/
8
     Open Data for Deep Learning - https://deeplearning4j.org/opendata

24
Artificial Intelligence | Five technology trends that leap-frog Artificial Intelligence

to text. The model needs to be trained                      blocks for standardization in the AI field are
with many examples, but can be set very                     the JSON data format and REST principles
specifically according to the needs of                      for APIs12.
the user. This can gain the competitive
advantage organizations are looking for.                    JSON (JavaScript Object Notation)13 is a data
                                                            format that is easy to write and understand
As a final note on open source, AI                          for humans and easy to generate and
applications can also use a combination                     parse for computers. REST stands for
of APIs and open source technologies                        Representational State Transfer and is an
to rapidly build up an application from                     architecture/approach for web services
multiple pre-built modules, which speeds                    which allows easy evolution of API driven
up the development process and uses                         services.
the best of both worlds. Altogether, open
source AI technologies broaden the user                     With more data generated by IoT devices
base and the set of use cases for AI, and                   and easier development and integration
create competition for large commercial AI                  due to standardized formats and principles,
vendors so that prices remain low. At the                   AI solutions are emerging more broadly.
same time, some of the large vendors take
Open Source AI code and package it into                     Conclusion
a commercial application, adding support,                   Recent technological trends drive the
maintenance, training etc.                                  broad adoption of AI. With the cloud as
                                                            platform and APIs as building blocks for
5. IoT and standardization                                  intelligent applications, AI is available for
The last important accelerator for AI is                    more people and organizations than ever
Internet of Thing (IoT), meaning all the                    before. The rise of unstructured data
(mobile) devices, vehicles or sensors                       opens opportunities for AI technologies
that are connected to the internet.                         which can give companies a competitive
All these devices together generate a                       advantage. Also, AI applications are better
massive amount of fast, semi-structured                     than in the past thanks to better availability
data, which can ‘feed’ and improve AI                       of training data. Moreover, with open
applications. A few examples of these are:                  source AI technologies, customized AI
self-driving vehicles, homes with intelligent               solutions can be developed quickly using
thermostats9, intelligent pacemakers                        pre-built modules and using wisdom of the
from patients that provide doctors with                     crowd. Finally, IoT will drive standardization
real-time insights or a parking garage that                 further which allows for even more data
recognizes your car10. As more and more                     becoming available and better integration
devices are connected, standardization                      of devices.
of data flows, -formats and -services is
needed, so that these devices can interact                  With the recent technological trends
properly. Standardization in IoT is still in                described in this article, we believe that the
development11. Two important building                       right time has come for organizations to
                                                            start developing their first AI use cases.

9
     Combining AI with IoT - https://www.techemergence.com/artificial-intelligence-plus-the-internet-of-things-iot-3-examples-worth-learning-from/
10
     The Edge: the smartest building in the world - https://www.bloomberg.com/features/2015-the-edge-the-worlds-greenest-building/
11
     2016 : A year of advancing Internet of Things (IoT) applications: https://innovation-in-manufacturing.deloitte.com/2016/12/28/2016-a-year-of-advancing-internet-of-
     things-iot-applications/
12
     Open Connectivity Foundation (OCF): https://openconnectivity.org/
13
     JSON - http://www.json.org/

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