AI

How AI can help with climate change?

Better climate predictions Show the effects of extreme weather Measure where carbon is coming from

Exponential increases in computer power and storage

Moore's Law - the number of transistors on microchips doubles every 2 years

Traditional surveillance:

•Elaborate preparations and time investment •Had to discriminate and go after high-priority targets •The human factors •Analog evidence cumbersome to store and expensive to collect

Surveillance (modern)

•Storage space is virtually infinite •Equipment retails for next to nothing •"Search" capabilities •Digital bugs easier to conceal •Face recognition software •Networks easily identifiable •Big data (demographics, consumer habits, preferences of particular customer types; all easily translated into useful surveillance) •From networks, easy to garner preferences, habits, behaviour •Security vulnerabilities of social network sites/email providers •Cloud computing

Machine Learning

the extraction of knowledge from data based on algorithms created from training data. Descriptive - what happened Predictive - what will happen (machine learning) Prescriptive - what to do (machine learning)

Explosion of data

1991 - internet 2000s - broadband (fast internet) 2004 - Web 2.0 (content creation, social media, blogs, videos) 2005 - Facebook 2005 - Youtube 2007 - Iphone

Better overall performance:

The findings suggest that companies seeing more EBIT contribution from AI experience better year-over-year growth overall than do other companies. Respondents at high-performing companies are nearly twice as likely as others to report EBIT growth in 2019 of 10 percent or more.

Artificial intelligence

the ability of a machine to perform cognitive functions we associate with human minds, such as: •Perceiving •Reasoning •Learning •Interacting with the environment •Problem solving •Exercising creativity

Better overall leadership:

AL C-suite as very effective more often than other respondents do. They also are much more likely than others to say that their AI initiatives have an engaged and knowledgeable champion in the C-suite.

AI and automation will change skills needed for work:

1. Less physical and manual 2. Less basic cognitive 3. More higher cognitive 4. More social and emotional 5. More technological

AI and surveillance

1. Smart cities/safe cities - service delivery, city management, public safety. sensors, face recognition, cameras (prevent crimes, ensure safety, respond to emergencies) - 56 countries 2. Facial recognition systems - technology uses cameras to recognize - 64 countries 3. Smart policing - data-driven analytics technology used for investigations and police responses. Predictions about the future crimes - 53 countries

AI adoption in business

AI adoption is highest within the product- or service-development and service-operations functions.

Deep learning

type of machine learning that can process a wider range of data resources, requiring less data preprocessing by humans, and can often produce more accurate results than traditional machine learning approaches. Interconnected layers of software-based calculators known as 'neurons' form a neural network, which can ingest vast amounts of input data and process them through multiple layers that learn increasingly complex features of the data at each layer.

distinct divide between consumer durables and technologies (which have typically seen a price decline), and service-based purchases (which have increased in price).

A combination of industrial offshoring, technological innovation and economies of scale have resulted in a price decline in goods such as televisions (-96% since 1997), software (-67%), toys (-69%), and clothing (-4%). In contrast, the prices of goods and services such as education, childcare, medical care, and housing have increased significantly, rising by 150%, 110%, 100% and 58%, respectively.

Movie. The promise nr1:

AI can be used to improve business performance. - In logistics, can optimize routing of delivery traffic, improving fuel efficiency and reducing delivery times. In customer service management, AI has become a valuable tool in call centers, thanks to improved speech recognition. In sales, combining customer demographic and past transaction data with social media monitoring can help generate individualized "next product to buy" recommendations, which many retailers now use routinely.

Resource commitment to AI:

AI high performers invest more of their digital budgets in AI than their counterparts and are more likely to increase their AI investments in the next three years. High performers also tend to have the ability to develop AI solutions in-house and employ more data engineers, data architects, and translators, than do their counterparts.

Movie. The promise nr2:

Economies also stand to benefit from AI, through increased productivity and innovation. - AI could contribute to economic impact through a variety of channels.The largest economic impacts of AI will likely be on productivity growth through labor market effects including substitution, augmentation, and contributions to labor productivity. Mckinsey research suggests that labor substitution could account for less than half of the total benefit. AI will augment human capabilities, freeing up workers to engage in more productive and higher-value tasks, and increase demand for jobs associated with AI technologies.

Unintended consequences of AI:

In many cases, AI can reduce humans' subjective interpretation of data, because machine learning algorithms learn to consider only the variables that improve their predictive accuracy, based on the training data used. Examples: Amazon - was biased against women when relying on data which hired mostly men US Healthcare - white people were favored to need extra medical care since black did not have enough money for it earlier on which data was based on

Functions in which AI models misperformed since COVID-19 began, % of respondents¹

Marketing and sales 32% Product and/or service development 21% Service operations 19%

algorithm

any form of automated instruction. The majority of algorithms are simpler than most people think. Sometimes, they can be a single if → then statement. If this button is pressed, execute that action.

Surveillance capitalism

is an economic system centred around the commodification of personal data with the core purpose of profit-making.

Rose's Law

describes the exponential growth of the number of qubits of quantum computers. If this growth rate should remain constant, it leads to some mind-bending opportunities.

Baumol's cost disease

describes the phenomenon whereby wages rise in jobs which have experienced little improvements in labor productivity in order to compete with salaries in other sectors.

Exponential increase of computer memory

exponentially increasing storage capacity and decreasing storage costs.

a movement founded on predictive algorithms

mathematical calculations of human behaviour. Surveillance capitalists "sell certainty to business customers who would like to know with certainty what we do. Targeted adverts, yes, but also businesses want to know whether to sell us a mortgage, insurance, what to charge us, do we drive safely? They want to know the maximum they can extract from us in an exchange. They want to know how we will behave in order to know how to best intervene in our behaviour."

Electrical efficiency

measures the computational capacity per unit of energy, and it is also important with respect to the environmental impact that energy production has. The progress in this respect has been tremendous: researchers found that over the last six decades the energy demand for a fixed computational load halved every 18 months.7

Butters' Law

says the amount of data one can transmit using optical fiber is doubling every nine months, which you can convert and say that the cost of transmission by optical fiber is halving every nine months.

Machine learning

set of algorithms that is fed with structured data in order to complete a task without being programmed how to do so.

unstructured data

Artificial intelligence is also a set of algorithms, but instead of being fed with structured data, it is fed unstructured data.

What industries use AI the most?

By industry, respondents in the high-tech and telecom sectors are again the most likely to report AI adoption, with the automotive and assembly sector falling just behind them (down from sharing the lead last year).

Biggest risks

Cybersecurity Regulatory compliance Explainability² Personal/individual privacy Organizational reputation

Deep learning can help by:

Diagnosing health diseases from medical scans Understand customer brand perception and usage through images Detect a company logo in social media to better understand joint marketing opportunities Detect defective products on a production line through images

The advance of AI can be attributed to three main factors:

Explodium of data Algorithmic achievements Exponential increases in computer power and storage

% reduction in error rate achieved by deep learning vs traditional methods

Image classification Facial recognition Voice recognition

Unintended consequences of AI on individuals, organizations and society

Individuals: physical safety, privacy and reputation, digital safety, financial health Organizations: financial performance, legal, reputation integrity Society: national security, economic stability, political stability

Book

It describes how global tech companies such as Google and Facebook persuaded us to give up our privacy for the sake of convenience; how personal information ("data") gathered by these companies has been used by others not only to predict our behaviour but also to influence and modify it; and how this has had disastrous consequences for democracy and freedom.

Why AI is key to renewable energy grid resilience

Renewable energy increases complexity AI will balance millions of assets on the grid

AI adoption is highest within the product- or service-development and service-operations functions.

Then sales, risk, manufacturing