December 2024 Newsletter

ARTIFICIAL INTELLIGENCE?

Right now, most of us can’t even imagine or predict how use of and development of AI will affect almost everything we do.  In the business world, the use of AI has changed and improved much of the tasks at hand. Businesses will continue to lean on AI more and more in the inevitable endeavor to become more efficient. Getting your virtual assistant to write a term paper for history class is already old news. Predicting with 90% certainty when a motor will fail on a conveyor belt is not that far away.

AI depends on enormous amounts of data. The key to accuracy and therefore usefulness is having an amount of imputes (Data) for the algorithm to pursue so it can find patterns and figure it out. Let us not discount how amazing this tech is and can be.

Shell Corp. has embraced the use of AI to become a more efficient business. They used to use on the ground inspections by humans to oversee its vast operations.  Now sensors and drones all connected via the web with the aid of AI can get the job done cheaper, quicker and more accurately. Project managers are now tasked with using AI to help improve and change processes aimed at efficiency and safety. All major companies will have to adopt and enable AI in their daily routines to remain competitive. Re engineering with the aid of AI for almost every process for almost any business is happening.

The AI interpretation of video is getting better and better. The language translation is old school. Now its nuances such as body language, sound differences etc. AI can interpret what we really mean. Fibbers beware.

AI PROBLEM SOLVING?

Bank fraud is an ongoing headache for banks. Most of the time managers get false positives, where activity is not fraud but seems likely. AI can predict where actual theft is and give priority to the most dangerous, so the managers do not spend valuable time tracking dead ends.

Insurance companies have much more information available such as google earth to give an accurate picture of roof tops to predict what kind of shape it is in for homeowners’ insurance underwriting.  AI visual learning can quickly and accurately make an assessment.   

Imagine how much more efficient clothing manufacturers can be if they have real time data analyzed (AI) predict future fashion trends based on consumer behavior.

Economists and stock analysts have for a while used space-based pictures of parking lots to predict retail activity. AI will make this many times more accurate.

Self-Driving is closer than we think. The reason is video of every conceivable driving scenario being interpreted by AI driven computers and training on it. Yes, machines are teaching machines.

Medical diagnosis will get better with AI and already have.

AI’s FUTURE

AI will continue to invade our everyday lives. The biggest change I see coming is sooner or later regulators will figure it out and demand from the populous will drive the democratization of AI. The more information AI has to work with the more accurate and useful its outcomes are.  Hold on, it is just the beginning.

Merry Christmas!

Thanks,

Andy McClung CFP TM

HBR.Org   Davenport  Holweg Jeabons ; IBM.com  Micci;