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Seizing the AI Opportunity Seizing the AI opportunity Brazilian American Chamber of Commerce October 24, 2017, Miami Raman Chitkara Global Technology Industry Leader My first experience with computers Release date: March 1983 Cost: $3,590 2017 Global Telecommunications Forum | 10-12 July, London 2 30 years later 2017 Global Telecommunications Forum | 10-12 July, London 3 2017 Global Telecommunications Forum | 10-12 July, London 4 Artificial Intelligence today Google Home Amazon Echo LingLong DingDong Apple HomePod 2017 Global Telecommunications Forum | 10-12 July, London 5 Total skills / Voice apps June 30, 2017 Growing from 7000 as of January 3rd, 2017 Alexa skill growth was 37% times more than Google Home in June 2017 Global Telecommunications Forum | 10-12 July, London 6 Artificial intelligence tomorrow 2025/ 2035 ? 2017 Global Telecommunications Forum | 10-12 July, London 7 Technological breakthroughs are advancing at an accelerating pace… 20th Century 2000 - 2005 2005 - 2010 2010 - 2016 Blackberry IEEE iPod Analytics 3D printing OTT Big Data 802.11 (WiFi) Flash drives Cloud Robotics Blockchain Social Smartphone IoT Autonomous www (Mobile) Vehicles GPS Genomics Drones Wearables 2017 Global Telecommunications Forum | 10-12 July, London 8 …and are manifesting as a proliferation of technologies; we track over 150 of them 2017 Global Telecommunications Forum | 10-12 July, London 9 Key attributes of disruptive innovations Every disruptive innovation has a broader impact than the previous one… ...and resulting changes happen faster 2017 Global Telecommunications Forum | 10-12 July, London 10 Which disruptions will have the greatest impact on… Business Consumers Society 2017 Global Telecommunications Forum | 10-12 July, London 11 We believe these eight disruptive technologies will have the greatest near-term impact IoT 3D Printing Blockchain 2017 Global Telecommunications Forum | 10-12 July, London 12 Key attributes of a titanic disruption It creates It changes It alters Its impact value the user’s who and is described where worldview what is as a new none and connected era for existed behaviour civilisation 2017 Global Telecommunications Forum | 10-12 July, London 13 Artificial intelligence 3D printing Virtual reality/ Augmented reality Robots IoT Drones Autonomous Blockchain vehicles 2017 Global Telecommunications Forum | 10-12 July, London 14 Artificial intelligence (AI) – the titanic disruption AI will shape AI will AI will create our lives more Extend the new than any boundaries of challenges of other human cyber technology in intelligence security, the next three that is not cyber wars, decades and fully hacking & beyond imaginable privacy 2017 Global Telecommunications Forum | 10-12 July, London 15 AI products today 2017 Global Telecommunications Forum | 10-12 July, London 16 Impact on business 2017 Global Telecommunications Forum | 10-12 July, London 17 AI will impact all industries and businesses… Industrial Private company Manufacturing industries Healthcare Retail and Consumer Public Aerospace Sector and defense Banking and capital markets Automotive Technology Transportation and logistics Entertainment Pharma and Private equity and media Communications life sciences Power and utilities 2017 Global Telecommunications Forum | 10-12 July, London 18 …as well as all elements of business 1 2 3 4 5 6 Strategy Customer Manufacturing People and Finance Compliance engagement talent CEO VP Sales COO, CFO Legal & Audit HR VP Mktg VP Mfg, VP Procurement 2017 Global Telecommunications Forum | 10-12 July, London 19 AI man-machine continuum ‘adaptive’ ‘prescriptive’ ‘predictive’ Autonomous Intelligence Augmented Intelligence Assisted Intelligence Sources: PwC “Leveraging the upcoming disruptions from AI and IoT” 2017 Global Telecommunications Forum | 10-12 July, London 20 Impact of AI Disruptions Regulations Crisis 2017 Global Telecommunications Forum | 10-12 July, London 21 Nature of transformations resulting from AI disruptions Disruption led transformations will be multiple… …and their impact and focus will be global 2017 Global Telecommunications Forum | 10-12 July, London 22 Likely impacts? Disruption driven transformations will initially contribute to high value-high margin products which will eventually mature into low margin commodity products. Companies will be constantly challenged to manage the transition from high value to commoditization of the products at a pace not seen historically and which they may not see coming. 2017 Global Telecommunications Forum | 10-12 July, London 23 AI disruptions-led refocus IP Human capital Profit protection development/ maximization optimisation Crisis Customer management engagement/experience and revenue Cyber/Digital optimization security 2017 Global Telecommunications Forum | 10-12 July, London 24 What are other likely impacts? Greater use of AI in every job and service Reduced demand for low-value, high- volume skills 2017 Global Telecommunications Forum | 10-12 July, London 25 Shift in work from low-value to high-value High value High value Low value Low value Today Future 2017 Global Telecommunications Forum | 10-12 July, London 26 Changing workforce needs Reduced head count and higher productivity Automation of low skilled jobs 2017 Global Telecommunications Forum | 10-12 July, London 27 Changing workforce hiring & development Greater focus on human capital development Rapidly changing skill sets – different hiring strategies 2017 Global Telecommunications Forum | 10-12 July, London 28 Dilemmas and Open Issues Associated with AI Potential Morality Misuse of AI for Terrorism Impact of AI on Future Human Man vs Machine debate Development Human Toll AI and Social from Use of Values AI in Wars 2017 Global Telecommunications Forum | 10-12 July, London 29 What’s happening now and in the not so distant future? 2017 Global Telecommunications Forum | 10-12 July, London 30 Data explosion is fueling AI 2025 2016 80 B 11 B Number of devices connected to the Internet 2020 180 2025 zettabytes 2013 44 4.4 zettabytes zettabytes Source: IDC Data generated 2017 Global Telecommunications Forum | 10-12 July, London 31 Robot market to reach $226 billion by 2021 Industrial compared to $34 billion today $20 billion Industrial $13 billion Non-industrial $206 billion Non- industrial $21 billion 2016 2021 Source: Tractica, 2016, The Global Robotics Industry is at a critical turning point as Non-Industrial Robots overtake industrial robots in market size for the first time in 2016 (https://www.tractica.com/newsroom/press-releases/the-global-robotics-industry-is-at-a-critical- turning-point-as-non-industrial-robots-overtake-industrial-robots-in-market-size-for-the-first-time-in-2016/) 2017 Global Telecommunications Forum | 10-12 July, London 32 Digital assistants are driving the first wave of AI adoption Percentage already using digital assistants: 42% of consumers 53% of millennials 72% of business decision makers Source: PwC consumer intelligence series “How AI is pushing man and machine closer together” 2017 Global Telecommunications Forum | 10-12 July, London 33 Robotics and AI impacts 30% the increase in productivity in many industries in 10 years due to Robots and AI 18-33% the reduction in manufacturing labor costs over the same period Source: Bank of America Merrill Lynch, 2015, Allied market Research, Robotics Technology Market by Type and Application-Global Opportunity Analysis and industry Forecast. (https://www.alliedmarketresearch.com/robotics-technology-market?robotics-technology- market) 2017 Global Telecommunications Forum | 10-12 July, London 34 Majority of business executives see AI as business advantage of the future of business execs believe agree AI will help humans and machines 72% AI will be the business 67% work together and combine both digital advantage of the future. and human. agree AI will augment decisions leading to 67% new levels and types of roles. agree AI will automatically augment decisions, 62% leading to more effective decision-making. agree AI will help businesses automate 67% processes, resulting in increased efficiencies and labor productivity. Source: PwC Digital IQ Survey 2016 2017 Global Telecommunications Forum | 10-12 July, London 35 Potential use of Robots/AI is endless Auto piloted cars Auto piloted ships Robot security guards Robot mailmen Robot health Robots in care workers Robot firemen army 2017 Global Telecommunications Forum | 10-12 July, London 36 In the next five years, in my personal life, I can see AI replacing humans as a… 58% 47% Tutor Home or family assistant 46% Health Coach 39% House Cleaner 30% Chauffer 22% Doctor Source: PwC consumer intelligence series “How AI is pushing man and machine closer together” 2017 Global Telecommunications Forum | 10-12 July, London 37 In the next five years, I can see AI replacing humans in business as a… 56% 54% Travel agent Tax preparer 41% 52% Financial Office Assistant adviser Source: PwC consumer intelligence series “How AI is pushing man and machine closer together” 2017 Global Telecommunications Forum | 10-12 July, London 38 Key regions/countries focused on AI 2017 Global Telecommunications Forum | 10-12 July, London 39 Revenues from the Artificial Intelligence (AI) market worldwide in 2015, by region (US$ Billions) $49 $40 $33 North America Asia Pacific $4 Europe $0.24 Latin America Middle East and Africa Note: Worldwide; 2015 Source: Statista estimates; Transparency Market Research 2017 Global Telecommunications Forum | 10-12 July, London 40 Projected AI GDP impact by region • All regions of the global economy will experience
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