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THE CHALLENGES OF LAUNCHING AN AI PROJECT
It was the famous economist Professor Dan Ariely who once said: “Big data is like teenage sex: everyone talks about it, nobody really knows how to do it, everyone thinks everyone else is doing it, so everyone claims they are doing it.” We believe this also rings true for AI. Despite the few technologically avant-garde companies like Google and Facebook in the US, and Tencent and Alibaba in China, the take-up of AI technologies among many other companies remains low. Why? One reason, in our experience, is unfamiliarity. While blue-sky strategic thinking involving AI is easy, it can be trickier at an operational level. Indeed, working out what the technology can actually bring is often elusive, as it requires clear answers to the following questions: What specific functions can various AI products perform? What benefits can be created? What business issues can AI really tackle? What is the exact business objective that AI should be achieving? Is the workflow of the process to be automated properly mapped out? And, if not, will there be resources allocated to make sure it is?
how they would work. Stick to small initiatives that address specific single pain points. Do not go overboard with big complex projects. A bigger challenge, however, is on the human rather than the technology side. In its current incarnation, AI is nothing more than a tool. And like all business tools, it is only truly effective when the right business processes are built around it. Hence, executives need to be ready to modify existing processes and workflows, and perhaps even build new ones. Moreover, they will have to find and keep the right people – those who can tackle business and technology issues. Inevitably, these executives will have to be able to work with both business and technology managers to ensure the smooth development, implementation and maintenance of the new capabilities. Last but not least, the need to introduce brand new technologies and additional (sometimes even disruptive) processes often translates into a significant amount of work; this is so much so that companies sometimes stick to what they know, leading to inertia. Executives who are interested in taking their companies to the next level will therefore have to overcome this temptation.
These are some of the reasons why we always recommend that our clients engage in projects that have narrow and clearly defined business objectives when it comes to AI. On top of this, the technical aspect of AI can be rather daunting. It poses a somewhat circular argument: without having a good grasp of the technology, it is difficult to figure out what business objectives to reach; and without knowing the specific aims to be achieved, it is not easy to see what kind of AI technologies are needed and
being implemented. Corporate culture may have to change. The success of machines, therefore, lies squarely in the success of how the human activities surrounding the new technology are organized. What AI can actually do mostly depends on what humans can actually do (see above).
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The winner: alliance
It is interesting to see how Hollywood portrays AI. Back to Star Wars. In the films, AI-driven – and even self-aware – droids like R2-D2 are best at assisting humans to fly X-wings or escape from the Death Star. Even in such a technologically advanced world, machines do not replace humans. We think the same can be said of our world right now. There is no doubt that automation
led by AI and robotics will eliminate many jobs in the future. Routine work, be it white- or blue-collar, can be expected to be taken up by machines. But it is also time to dispel the myth around AI to see what it can actually do as a tool. Only in this way can we really hold honest conversations about how humans and machines can forge a new alliance. — Terence Tse is a cofounder and managing director of Nexus Frontier Tech, specializing in AI solutions, and associate professor at ESCP Europe. Mark Esposito is a member of the teaching faculty at Harvard University’s Division of Continuing Education, and professor of business and economics at Hult International Business School. Danny Goh is a serial entrepreneur, and the partner and commercial director of Nexus Frontier Tech. Hajime Hotta is chief AI scientist at Nexus Frontier Tech Q3 2018 Dialogue