{"id":237621,"date":"2017-08-24T04:50:48","date_gmt":"2017-08-24T08:50:48","guid":{"rendered":"https:\/\/www.euvolution.com\/futurist-transhuman-news-blog\/uncategorized\/3-ways-companies-are-building-a-business-around-ai-harvard-business-review.php"},"modified":"2022-11-12T11:01:40","modified_gmt":"2022-11-12T16:01:40","slug":"3-ways-companies-are-building-a-business-around-ai-harvard-business-review","status":"publish","type":"post","link":"https:\/\/www.euvolution.com\/futurist-transhuman-news-blog\/artificial-intelligence\/3-ways-companies-are-building-a-business-around-ai-harvard-business-review.php","title":{"rendered":"3 Ways Companies Are Building a Business Around AI &#8211; Harvard Business Review"},"content":{"rendered":"<p><p>    There is no argument about whether artificial intelligence (AI)    is coming. It is here, in automobiles, smartphones, aircraft,    and much else. Not least in the online search abilities, speech    and translation features, and image recognition technology of    my employer, Alphabet.  <\/p>\n<p>    The question now moves to how broadly AI will be employed in    industry and society, and by what means. Many other companies,    including Microsoft and Amazon, also already offerAI    tools which, like Google Cloud, where I work, will be sold    online as cloud computing services. There are numerous    otherAI products available to business, like IBMs    Watson, or software from emerging vendors.  <\/p>\n<p>    Whatever hype businesspeople read aroundAI and    there is a great deal the intentions and actions of so    many players should alert them to the fundamental importance of    this new technology.  <\/p>\n<p>    This is no simple matter, as AIis both familiar and    strange. At heart, the algorithms and computation are dedicated    to unearthing novel patterns, which is what science,    technology, markets, and the humanistic arts have done    throughout the story of humankind.  <\/p>\n<p>    The strange part is how todaysAI works, building    subroutines of patterns, and loops of patterns about other    patterns, training itself through multiple layers that are only    possible with very large amounts of computation. For perhaps    the first time, we have invented a machine that cannot readily    explain itself.  <\/p>\n<p>    In the face of such technical progress, paralysis is rarely a    good strategy. The question then becomes: How should a company    that isnt involved in buildingAI think about using it?    Even in these early days, practices of successful early    adopters offer several useful lessons:  <\/p>\n<p>    CAMP3 is a 26-person company, headquartered in Alpharetta,    Georgia, that deploys and manages wireless sensor networks for    agriculture. The company also sells Googles G Suite email and    collaboration products on a commission basis.  <\/p>\n<p>    Founder and chief executive Craig Ganssle was an early user of    Google Glass. Glass failed as a consumer product, but the    experience of wearing a camera and collecting images in the    field inspired Ganssle to think about ways farmers could    useAI to spot plant diseases and pests early on.  <\/p>\n<p>    AI typically works by crunching very large amounts of data to    figure out telltale patterns, then testing provisional patterns    against similar data it hasnt yet processed. Once validated,    the pattern-finding methodology is strengthened by feeding it    more data.  <\/p>\n<p>    CAMP3s initial challenge was securing enough visual data to    train itsAI product. Not only were there relatively few    pictures of diseased crops and crop pests, but they were    scattered across numerous institutions, often without proper    identification.  <\/p>\n<p>    Finding enough images of northern corn leaf blight [NCLB] took    10 months, said Ganssle. There were lots of pictures in big    agricultural universities, but no one had the information    well-tagged. Seed companies had pictures too, but no one had    pictures of healthy corn, corn with early NCLB, corn with    advanced NCLB.  <\/p>\n<p>    They collected whatever they could from every private,    educational, and government source they could, and then took a    lot of pictures themselves. Training the data, in this case,    may have been easier than getting the data in the first place.  <\/p>\n<p>    That visual training data is a scarce commodity, and a    defensible business asset. Initial training for things like    NCLB, cucumber downy mildew, or sweet corn worm initially    required tens of thousands of images, he said. With a system    trained, he added, it now requires far fewer images to train    for a disease.  <\/p>\n<p>    CAMP3 trains the images on TensorFlow, anAI software    framework first developed by Googleand then open sourced.    For computing, he relied on Amazon Web Services and Google    Compute Engine. Now we can take the machine from kindergarten    to PhD-style analysis in a few hours, Ganssle said.  <\/p>\n<p>    The painful process of acquiring and correctly tagging the    data, including time and location information for new pictures    the company and customers take, gave CAMP3 what Ganssle    considers a key strategic asset. Capture something other    people dont have, and organize it with a plan for other uses    down the road, he said.  <\/p>\n<p>    WithAI, you never know what problem you will need to    tackle next. This could be used for thinking about soils, or    changing water needs. When we look at new stuff, or start to do    predictive modeling, this will be data that falls off the    truck, that we pick up and use.  <\/p>\n<p>    TalkIQ is a company that monitors sales and customer service    phone calls, turns the talk into text, and then scans the words    in real time for keywords and patterns that predict whether a    company is headed for a good outcome a new sale, a happy    customer.  <\/p>\n<p>    The company got its start after Jack Abraham, a former eBay    executive and entrepreneur, founded ZenReach, a Phoenix company    that connects online and offline commerce, in part through    extensive call centers.  <\/p>\n<p>    I kept thinking that if I could listen to everything our    customers were asking for, I would capture the giant brain of    the company, said Abraham. Why does one rep close 50% of his    calls, while the other gets 25%?  <\/p>\n<p>    The data from those calls could improve performance at    ZenReach, he realized, but could also be the training set for a    new business that served other companies. TalkIQ,based in    San Francisco, took two years to build. Data scientists    examined half a million conversations preserved in the    companys computer-based ZenReach phone system.  <\/p>\n<p>    As withCAMP3, part of the challenge was correctly mapping    information in this case, conversations in crowded    rooms, sometimes over bad phone connections and tagging    things like product names, features, and competitors. TalkIQ    uses automated voice recognition and algorithms that understand    natural language, among other tools.  <\/p>\n<p>    Since products and human interactions change even faster than    biology, the training corpus for TalkIQ needs to train almost    continuously to predict well, said Dan OConnell, the companys    chief executive. Every prediction depends on accurate    information, he said. At the same time, you have to be    careful of overfitting, or building a model so complex that    the noise is contributing to results as much as good data.  <\/p>\n<p>    Built as an adjacency to ZenReach, TalkIQ must also tweak for    individual customer and vertical industry needs. The product    went into commercial release in January, and according to    Abraham now has 27 companies paying for the service. If were    right, this is how every company will run in the future.  <\/p>\n<p>    Last March the Denver-based company Blinker launched a mobile    app for buying and selling cars in the state of Colorado.    Customers are asked to photograph the back of their vehicle,    and within moments of uploading the image the cars year, make    and model, and resale value are identified. From there it is a    relatively simple matter to offer the car, or seek refinancing    and insurance.  <\/p>\n<p>    TheAI that identifies the car so readily seems like    magic. In fact, the process is done using TensorFlow, along    with the Google Vision API, to identify the vehicle. Blinker    has agreements with third-party providers of motor vehicle    data, and once it identifies the plate number, it can get the    other information from the files (where possible, the machine    also checks available image data.)  <\/p>\n<p>    Blinker has filed for patents on a number of the things it    does, but the companys founder and chief executive thinks his    real edge is his 44 years in the business of car dealerships.  <\/p>\n<p>    Whatever you do, you are still selling cars, said Rod    Buscher. People forget that the way it feels, and the pain    points of buying a car, are still there.  <\/p>\n<p>    He noted that Beepi, an earlier peer-to-peer attempt to sell    cars online, raised $150 million, with a great concept and    smart guys. They still lost it all. The key to our success is    domain knowledge: I have a team of experts from the auto    selling business.  <\/p>\n<p>    That means taking out the intrusive ads and multi-click    processes usually associated with selling cars online and    giving customers a sense of fast, responsive action. If the car    is on sale, the license number is covered with a Blinker logo,    offering the seller a sense of privacy (and Blinker some free    advertising.)  <\/p>\n<p>    Blinker, which hopes to go national over the next few years,    does haveAI specialists, who have trained a system with    over 70,000 images of cars. Even these had the human touch    the results were verified on Amazons Mechanical Turk, a    service where humans perform inexpensive tasks online.  <\/p>\n<p>    While theAI work goes on, Buscher spent over a year    bringing in focus groups to see what worked, and then watched    how buyers and sellers interacted (frequently, they did their    sales away from Blinker, something else the company had to    fix).  <\/p>\n<p>    Ive never been in tech, but Im learning that on the go, he    said. You still have to know what a good and bad customer    experience is like.  <\/p>\n<p>    No single tool, even one as powerful asAI, determines the    fate of a business. As much as the world changes, deep truths    around unearthing customer knowledge, capturing scarce    goods, and finding profitable adjacencies will matter    greatly. As ever, the technology works to the extent that its    owners know what it can do, and know their market.  <\/p>\n<p><!-- Auto Generated --><\/p>\n<p>See the article here:<\/p>\n<p><a target=\"_blank\" rel=\"nofollow noopener\" href=\"https:\/\/hbr.org\/2017\/08\/3-ways-companies-are-building-a-business-around-ai\" title=\"3 Ways Companies Are Building a Business Around AI - Harvard Business Review\">3 Ways Companies Are Building a Business Around AI - Harvard Business Review<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p> There is no argument about whether artificial intelligence (AI) is coming. It is here, in automobiles, smartphones, aircraft, and much else.  <a href=\"https:\/\/www.euvolution.com\/futurist-transhuman-news-blog\/artificial-intelligence\/3-ways-companies-are-building-a-business-around-ai-harvard-business-review.php\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"limit_modified_date":"","last_modified_date":"","_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[13],"tags":[],"class_list":["post-237621","post","type-post","status-publish","format-standard","hentry","category-artificial-intelligence"],"modified_by":"Danzig","_links":{"self":[{"href":"https:\/\/www.euvolution.com\/futurist-transhuman-news-blog\/wp-json\/wp\/v2\/posts\/237621"}],"collection":[{"href":"https:\/\/www.euvolution.com\/futurist-transhuman-news-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.euvolution.com\/futurist-transhuman-news-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.euvolution.com\/futurist-transhuman-news-blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.euvolution.com\/futurist-transhuman-news-blog\/wp-json\/wp\/v2\/comments?post=237621"}],"version-history":[{"count":0,"href":"https:\/\/www.euvolution.com\/futurist-transhuman-news-blog\/wp-json\/wp\/v2\/posts\/237621\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.euvolution.com\/futurist-transhuman-news-blog\/wp-json\/wp\/v2\/media?parent=237621"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.euvolution.com\/futurist-transhuman-news-blog\/wp-json\/wp\/v2\/categories?post=237621"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.euvolution.com\/futurist-transhuman-news-blog\/wp-json\/wp\/v2\/tags?post=237621"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}