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Artificial Intelligence in Europe Denmark Outlook for 2019 and Beyond

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Artificial Intelligence in Europe Denmark Outlook for 2019 and Beyond Artificial Intelligence in Europe Denmark Outlook for 2019 and Beyond How 277 Major Companies Benefit from AI REPORT COMMISSIONED BY MICROSOFT AND CONDUCTED BY EY 1 Contents Preface Foreword. 06 Executive Summary - ‘At a Glance’ . 08 Setting the Scene About this Report . 10 Rich Data . 13 Executive Perspective . 14 Participating Companies . 16 Bits & Bytes . 18 Follow the Money . 20 Case Study . 22 Experts . 23 Role of AI in European Business A Strategic Agenda . 27 Among Friends . 28 Push or Pull . 29 Ready, Set... 30 AI Maturity Curve . 32 State Your Business. 34 Case Study . 36 Business Benefits and Risks Another World . 38 AI Here, There, Everywhere. 40 Case Study . 41 Use it or Lose it . 42 Making AI simple . 44 Case Study . 47 Sector Benefits Landscape . 48 Risky Business . 51 Learn from the Leaders Capabilities . 53 AI Competency Model . 55 Advanced Analytics . 56 Data Management . 58 AI Leadership . 60 Open Culture . 62 Emerging Technology . 64 Agile Development . 66 External Alliances . 68 Disclaimer Emotional Intelligence . 70 This report has been prepared by Ernst & Young LLP in accordance with an This report does not constitute a recommendation or endorsement by Case Study . 73 engagement agreement for professional services with Microsoft. Ernst & Ernst & Young LLP or Microsoft to invest in, sell, or otherwise use any of Young LLP’s obl igations to Microsoft are governed by that engagement the markets or companies referred to in it. To the fullest extent permitted agreement. This disclaimer applies to all other parties. by law, Microsoft and Ernst & Young LLP and its members, employees and What’s next for you? agents, do not accept or assume any responsibility or liability in respect of This report has been prepared for general informational purposes only and this report, or decisions based on it, to any reader of the report. Should such How to Get Started. 74 is not intended to be relied upon as accounting, tax, or other professional readers choose to rely on this report, then they do so at their own risk. Who to Contact from Microsoft . 77 advice. Refer to your advisors for specific advice. Ernst & Young LLP and Mi- crosoft accept no responsibility to update this report in light of subsequent ©2018 EY LLP Limited All Rights Reserved. Contributors from EY . 79 events or for any other reason. 2 3 As this report shows, companies in Denmark want more clarity and certainty about future laws and regulations before they bet on AI. We appreciate that new technology brings both opportunities and challenges. Microsoft is committed to working with governments, industries, and civil society to ensure that AI is developed, deployed and used in a responsible way. —Brad Smith, President and Chief Legal Officer for Microsoft 4 5 Preface Preface Foreword Human Ingenuity Icon of Digital Success Throughout history, embracing new technology has been crucial to in- The printing press, the automobile & the Internet are just a few technolog- novations made by some of the most visionary Danish companies – from ical achievements that have advanced our world. All were driven by human turning wind and solar power into energy, to building super long-haul ingenuity: our innate creativity that inspires us to learn, imagine & explore. cargo ships, to inventing new types of medical treatments, and so much This spirit is what pushes us to challenge the boundaries of the possible to more. go ever forward. Today, the beating heart of technology is data, offering us new possibilities Today, AI is helping to amplify our human ingenuity, opening up exciting to create smarter and more intelligent solutions. But raw data is useless new possibilities for how intelligent technology can shape our world. At if it’s not analyzed to help us discover meaningful patterns. This is where Microsoft, our goal is to democratize access to AI for everyone through in- Artificial Intelligence comes in: understanding and extracting value from novative & powerful platforms, & above all, we’re focused on ensuring that data to improve lives and transform businesses. our AI tools & technologies are deployed responsibly & earn people’s trust. As shown in this report, Danish businesses are among the frontrunners in And yet, we realize that AI is one of the lesser understood modern tech- Europe when it comes to implementing and prioritizing AI. However, the nological break-throughs. Many questions remain. How are companies companies also have concerns before investing heavily in AI, pointing to applying this technology to empower employees, engage with customers, a lack of skills and a need for more clarity about data regulations. This re- transform their business and optimize their operations? Where are they flects a realistic understanding of the fact that AI is still a technology in its seeing benefits, and what are their blockers? early stages, undergoing rapid development and raising important legal and ethical questions. To provide answers, Microsoft commissioned this study to understand the AI strategy of major companies across 7 sectors & 15 countries in Europe. I believe Denmark has a solid foundation to be among the leading coun- It examines these companies’ readiness to adopt AI, how they rate the im- tries using AI, and I feel optimistic about our ability to continually benefit pact and benefits from AI implementations, and what they perceive as risks from the possibilities created by new technology. & keys to success. We hope you find these insights inspirational for your own journey toward adopting AI & realizing its benefits for amplifying human ingenuity. Vahé Torossian Marianne Dahl Steensen President, Microsoft Western Europe General Manager, Microsoft Denmark 6 7 Preface Preface At a Glance Noticeable potential for AI in many Danish companies slightly ahead compared to European peers corporate functions When looking across the 25 companies that have participated in the The most widely reported adoption of study in Denmark, it is clear that there are areas where they appear AI (47%) was in the IT/Technology func- slightly ahead on AI compared to the European aggregate. Across the tion, followed by R&D with 36%, and organizational hierarchical levels, more Danish companies report that AI customer service with 24%. Interestingly, is an important topic compared with the European aggregate. Further- several functions are hardly using AI at more, companies in Denmark self-report as being more mature – 96% all; most notably, the procurement func- of Danish companies are in the ‘piloting’ AI stage or beyond, compared While the hype of artificial intelligence Most impact expected from ‘opti- is almost as much as AI is expected to tion, where only 4% of the companies with 71% in the European aggregate. Expected impact is high as well: (AI) and its potential role as a driver of mizing operations’, with ‘engaging impact the core of these companies’ cur- currently use AI, followed by HR with 7% the vast majority of Danish companies report expecting AI to create transformational change to businesses customers’ as a close second rent business with 65% expecting AI to and product management with 9%. This some degree of impact across all business areas – core, adjacent and and industries is pervasive, there are have a high or a very high impact on the 89% of the respondents expect AI to is perhaps surprising, given the many new. limited insights into what companies core business. With AI presumably push- generate business benefits by optimiz- use cases and applicable solutions in are actually doing to reap its benefits. ing companies into totally new domains ing their companies’ operations in the these functional areas. This report aims at getting a deeper future. This is followed by 74% that ex- in the future, it is perhaps not surprising understanding of how companies cur- that AI is receiving attention as a key pect AI to be key to engaging custom- 8 key capabilities that are most im- rently manage their AI activities, and topic for executive management. ers by enhancing the user experience, portant ‘to get AI right’ What sets the most ‘AI mature’ how they address the current challeng- tailoring content, increasing response When asking the respondents to rank es and opportunities ahead. speed, adding sentiment, creating Very few of the 277 companies con- companies apart? the importance of 8 capabilities to ena- experiences, anticipating needs, etc. sider themselves “advanced” with AI ble AI in their businesses, ‘advanced ana- To get to the heart of this agenda, we Despite the apparent sizable impact that They expect AI will be beneficial in ‘empowering employees’ (76% lytics’ and ‘data management’ emerged received input from AI leaders in 277 C-suite respondents scored ‘engaging companies expect from AI, only a very of ‘more mature’ companies* vs. 42% of ‘less mature’ companies)*. as the most important. ‘AI leadership’ companies, across 7 sectors and 15 customers’ highest of the AI benefit small proportion of companies, consti- and having an ‘open culture’ followed. countries in Europe, via surveys and/or areas. Noticeably, 100% of the most ad- tuting 4% of the total sample, self-re- They report using a combination of structured and unstructured interviews. Below is the brief summary vanced* companies expect AI will help port that AI is actively contributing to data for AI (65% of ‘more mature’ companies vs. 15% of ‘less mature’ When self-assessing the capabilities of what they had to say. them engage customers, compared to ‘many processes in the company and companies), and data from both internal and external sources (68% where the companies are least com- only 63% of the less mature companies. enabling quite advanced tasks today’ of ‘more mature’ companies vs. 16% of ‘less mature’ companies). petent, they point to emotional intelli- AI is a “hot topic” - but more so on Using AI to ‘transform products and (referred to as ‘most advanced’ in this gence and AI leadership - defined as the C-level than in daily operations services’ comes out slightly lower with report).
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