Wednesday, July 13, 2016

2017 - The year of Artificial Intelligence

Every leader in technology sector know that success in a very transient in nature. Even global giants - such as Kodak, Nokia, Blackberry, Motorola, IBM have become victims of rapid technological changes.

Rapid Innovation brings in rapid obsolescence. Technology is ever changing and companies need to invest continuously in R&D, to develop new products, technologies - just to stay relevant in this ever-changing world.

We are already seeing the early fruits of Artificial Intelligence. Google Car - A self driving car is clearly the flag bearer, and today several startups are working hard to make the self driving cars a standard. This new technology will make the current auto giants such as GM, VW, Toyota, Honda, Tata, obsolete. Taxi hailing companies such as Uber will be first ones to capitalize on this new technology. Together with self-driving cars and on-demand taxi service will change the way people look at owning an automobile.

While this is good for technology companies, this shift in marketplace will deal a death blow to auto industry, and millions of workers will lose their jobs.

Another sector where AI will bring a huge change is the world of IT services.

Today, several million people are employed in IT/BPO service sectors - who do just the basic first line or second line product support. Low cost communication technology moved these low skill jobs from US/Europe to India. But now, the lower cost of AI will eliminate several of these jobs altogether.

Apple's Siri & Facebook's chat bot are just the beginning, soon all e-commerce companies, product support organizations will move the first line support functions to computers which have cognitive system intelligence.

To win in this AI arms race, companies such as Microsoft, Google, Facebook, Tesla, Amazon etc are investing billions of dollars to develop new AI technologies. Companies that can master new AI technologies will be able to lower their operational costs, execute better and thus compete better and win new business. For example, AI enabled drones can speedup delivery for Amazon, thus reducing distribution costs. Customer support Bot will answer customer questions, etc,

Just like Internet drove the business in 1990's-2010, Artificial Intelligence will be the driver of the new smart world of 2020's.

No comments: