Artificial Intelligence (AI) and Robotics...Artificial Intelligence (AI) and Robotics The Job Scare...

Artificial Intelligence (AI) and RoboticsA Special Report from Media Group Online, Inc

The Everything RevolutionMany journalists, bloggers, scientists and futurists have described artificial intelligence and robotics as “The Third Industrial Revolution.” It may be more accurate to call it “The Everything Revolution,” because their use has already impacted many industries – and for decades. What AI and robotics are about to impact is virtually every other sector of society and everyone’s life.

The First Industrial Revolution, which began in Great Britain from 1760 to approximately 1840, was primarily the transition from hand production to machine production, greater use of steam power and the introduction of the factory system. These technological advancements first impacted the textile industry.

The Second Industrial Revolution followed immediately from the first and into the first decades of the 20th century. Most of the advancements of the First Industrial Revolution spread throughout the world, with steam being adopted for transportation and machines of much larger size and capabilities being built and used in factories.

Much like the First and Second Industrial revolutions, the third started in manufacturing industries as early as the 1960s, but those with which most of us are familiar are “robotic, automated devices” with an arm that have been used in automotive manufacturing and assembly since the 1970s.

They have made manufacturing more efficient and safer and, like the First and Second Industrial revolutions, improved a myriad of existing products and introduced new ones for businesses and consumers.

Now, however, we are on the cusp of AI and robotics moving from the factories and into public and private places, making these technologies more visible to everyone and to change “everything” in ways the First and Second Industrial revolutions never did.

This Special Report from Media Group Online will explore this revolution, and with an

emphasis on how AI and robotics will impact business, retail, marketing

and the lives of everyone.

www.mediagrouponlineinc.com

Artificial Intelligence (AI) and Robotics

Definitions and RealityAs stated in a July 2017 article on Co.Design’s Website, the only aspect of “artificial intelligence” that exists and is useful during 2017 is “machine learning,” or “technologies that solve specific problems without being coded explicitly, such as self-driving cars, e-commerce chatbots and recommendation systems.”

What doesn’t exist today is “artificial general intelligence,” which Kevin McNally, the Co.Design article author, states is “AI that can generally engage with problems without being explicated trained and can determine how to solve completely new problems, like a human can.”

It’s not just AI itself that will cause The Everything Revolution, but its integration with the Internet of Things (IoT), 5G technology, much greater data capacity and computational power and many other innovations.

Nothing validates the impact that AI is about to unleash on the world more than how business and IT decision-makers across the globe are already preparing for the adoption of AI technologies.

AI Preparation Initiatives PercentInvesting in supporting IT infrastructure 60%

Developing knowledge/skills 53%

Using external support to assist with planning 46%

Building AI into company ethos 43%

Using external support for knowledge gathering 40%

Gathering feedback from customers 32%

Assessing competitor/industry approach 25%

eMarketer (Infosys), February 2017

Robots Are Already HereLet’s be clear: it will be many years, even decades, before the entity sitting in the cubicle next to you at work will be a human-looking robot or an almost indistinguishable android. The robots, however, are already here.

• To celebrate National Fried Chicken Day, KFC introduced an order-taking device in the form of founder Harland Sanders in a few selected locations.

• Target has tested an inventory robot to roam the aisles. It’s linked to RFID technology to improve inventory turnover and reduce empty shelf space.

• Best Buy’s robot, Chloe, is now operating in a New York store. It retrieves small items that customers order via touch screen kiosks throughout the store.

• Working with state legislatures, Starship Technologies has helped to pass laws in Virginia, Idaho, Wisconsin and Florida that allow unmanned delivery robots on sidewalks and in crosswalks.

www.mediagrouponlineinc.com pg. 2


The Job ScareWhat scares the average human the most is that one day an army of robots will march into workplaces across the globe and replace everyone – a highly unlikely scenario.

Nonetheless, AI and robotics will affect many traditional jobs, even eliminating some. Everyone must keep in mind, however, that there were once livery stables in every city, town and village as well as blacksmiths and less than 100 years ago every elevator had a human operator.

The forecasts of how much AI and robotics will replace humans are wide-ranging. Kai-Fu Lee, the highly respected Chinese futurist, has predicted that 50% of all jobs will be replaced within just 10 years, but the upside, according to Lee, is that this revolution will generate huge amounts of wealth and eliminate poverty.

The possibility of major employment disruption is real, however, as the following chart from Citi Research and Oxford Martin School reveals.

Industries with the Highest Likely Worker Displacement Due to Automation by 2030 Percent

Accommodations and food services 86%

Transportation and warehousing 75%

Real estate and rental and leasing 67%

Retail trade 67%

Wholesale trade 66%

Administrative and support services 62%

Manufacturing 62%

Construction 59%

Finance and insurance 54%

eMarketer (Infosys), February 2017

A Much More Positive ScenarioOther studies, such as from Redwood Software and the Centre for Economic and Business Research (CEBR), has found that advancements in automation in 23 countries during the past 20 years have actually benefited most economies more than traditional sectors, such as financial services and transportation.

Just as the introduction of the automobile created many new jobs, futurists expect the age of AI and robotics to do the same. People whose workday is spent on repetitive and mundane tasks will be free to transition to professions and occupations that require human thinking and interaction.

Automation’s Potential Effect on a Variety of Work Activities

Work Activity PercentManaging others 0%

Applying expertise 18%

Stakeholder interactions 20%

Unpredictable physical work 25%

Data collection 64%

Data processing 69%

Predictable physical work 78%

McKinsey & Company, July 2016



AI Isn’t Waiting for a Sci-Fi FutureOne of the major reasons that AI is becoming a common technology is that its “fuel” is data; and the top 5 companies in the world, as measured by market capitalization, – Apple, Alphabet, Microsoft, Amazon and Facebook – are data companies first and computer, search engine, online shopping and social media companies second.

These companies will be able to maintain their dominance by utilizing data in more complex and sophisticated ways and AI will be the primary means to do so. The underlying business imperatives for these companies and all others are to maximize revenues and ROI and satisfy shareholders’ expectations.

We now live in a time of large aging populations and fewer adults working, which has resulted in slow productivity growth and the downstream effects of meager wage increases and overall prosperity. The following historical comparison from a McKinsey Global Institute study shows why it and others think AI will kick start the global economy.

Historical Productivity Growth by TechnologiesTechnology/Period Growth

Steam engine (1850–1910) 0.3%

Early robotics (1993–2007) 0.4%

IT (1995–2006) 0.6%

Automation: AI, robotics, machine learning (2015–2065) 0.8%–1.4%

McKinsey Global Institute, January 2017

Industrial Robots Lead the WayABI Research predicts that sales of industrial robots in the US will increase almost 300% before 2026. That forecast is well on its way to fruition, as 40% more industrial robots were sold in the US during 2016, compared to 2013.

The automotive industry has been a leader in the introduction of industrial robots for decades and, during 2016, the industry spent $1.2 billion on these devices, which was 70% of all North American industrial robot shipments. The average annual increase in the number of robots in the pharmaceutical and life sciences industry has been almost 21% since 2012.

Annual Average Increase in North American Robot Unit Shipments, 2012–2016

Industry Percent IncreaseAutos and components 34.9%

Pharmaceuticals/Life sciences 20.5%

Electronics 17.3%

Food/Consumer goods 10.8%

Plastics/Rubber 5.8%

Metals 2.1%

All other industries 0.7%

Recode (Robotics Industries Association), April 2017



Are Consumers on Board?According to its Customer of the Future survey, Lippincott, a global creative consultancy, 80% of consumers are excited about advancing technologies and almost the same percentage (78%) think smart machines, AI and robotics give them more power and control of their lives.

Of the 2,000 “leading edge” consumers who participated in the Lippincott survey, 82% said the world is becoming more convenient, 75% said their lives are more flexible and 64% think the world will be better within 10 years.

The Lippincott study lists five major shifts in humans’ lives that have already started and will be propelled forward even faster with AI, robotics, machine learning, etc.

A life in flow – More people won’t be anchored to a particular place or job, as work becomes more flexible and ownership of possessions won’t be as important as life experiences.

“40% of the workforce could be participating in the gig economy by 2020.” (Intuit 2020 Report)

Transparent existence – Smart devices and systems will monitor more of our lives, but this will provide us with more control and information.

“90% of cars will be connected to the Internet by 2020.” (NerdGraph)

Omnipotent individual – AI and machine learning will allow products to adapt to us, automatically, and customization and modularity will replace standards and conformity.

“1.7 MB of new information will be created every second for every human being on the planet during 2020.” (EMC Corporation)

On-demand everything – We will have almost instantaneous access to medical diagnoses, drones will deliver all purchases and consumers will use 3D printing for new clothing and electronics.

“With 5G technology, the entire The Simpsons TV series (600 HD episodes) will

download within 30 minutes.” (Verizon)

Exponential intelligence – Humans will rely more on collective wisdom than individual experts.

“CPUs (computer processing units) will have the same level of processing power as the human brain by 2025.” (Deep Shift)



Revolutionizing RetailA Qualtrics and Rocket Fuel March 2017 survey of Internet users across the globe found that more than 50% of all respondents 18–54 years of age, and even 44% of those 55 and older “value artificial intelligence for recommending products and services.” This is rather striking evidence that age is no barrier to consumers’ acceptance of AI and robotics in the retail environment.

Global Internet Users Who Value AI to Recommend Products/Services, By Age, March 2017

Age Group Percent18–24 62%

25–34 62%

35–54 53%

55+ 44%

eMarketer (Qualtrics/Rocket Fuel), April 2017

Retail Environment – During the 2017 National Retail Federation Big Show, attendees were introduced to Pepper, a humanoid-looking robot from Softbank Robotics. “She” was developed to interact with consumers in-store, answering questions from its enormous cloud-based database.

Pepper is already operating in two Westfield Malls in California, where she directs shoppers to stores. Softbank Robotics isn’t ready to deploy Pepper widely yet in the US, as it wants to expand service and repair facilities first.

Food Service – Major restaurant chains have already introduced digital ordering via a smartphone. In fact, during 2016, there were more than 2 billion foodservice visits that were initiated with digital ordering, an 18% increase from 2015.

Now chains, such as Wingstop, Taco Bell and Pizza Hut, are offering conversational ordering through chatbots. Although the technology still requires some additional sophistication, it will allow these companies to have a better understanding of customers’ ordering behavior in addition to a faster, more efficient ordering system.

During July 2017, Cali Group, parent company of Caliburger, obtained $3.1 million in funding to partner with other companies to develop Flippy, a burger-flipping robotic kitchen assistant. The first Flippy is scheduled to be installed at Caliburger in Los Angeles during early 2018, with its addition to more than 50 other Caliburger restaurants worldwide by the end of 2019.



Fashion Industry – During 2015, The North Face used AI with the assistance of IBM’s Watson to allow customers to provide detail information, such as the climate in which a coat would be worn, so the AI bot could recommend specific selections.

Travel Industry – Travelers have been using various Websites for years – Expedia, Priceline, Hotels.com, Trivago, etc. – to find the current, lowest air fares and hotel room rates. With the use of AI, these Websites will only become more predictive of individual travelers’ tastes and expectations, providing them with even more cost savings in real-time.

Supermarkets – Most everyone in the supermarket industry is on pins and needles awaiting to see how radically Amazon’s acquisition of Whole Foods could change the industry.

Amazon has found it specifically difficult to advance its AmazonFresh service of fresh produce, breads, meats, seafood,

etc. Amazon could easily transform the more than 400 Whole Foods locations into local, mini-distribution centers, making it easier and less costly to deliver fresh food items during the same day.

In-Store Pickup – No doubt, Walmart is keeping a close eye on what Amazon will do with its Whole Foods acquisition, but Walmart has forged ahead with improving its in-store pickup service with its giant self-service kiosks.

The 16-foot tall, 8-foot wide kiosks are located in the entry area and a quick scan

of the barcode on a customer’s receipt will initiate the movement of the purchased item from inside the kiosk onto a conveyor belt and into customers’ hands. The initial 20-store rollout of the kiosks will expand to 80 additional stores by the end of 2017.

Although a somewhat crude example of a robotic device, it could eventually be improved to speak with customers and serve other functions, such as directing customers to specific store sections and immediate specials and discounts. (Might Wal-Mart name it Wally or Marty?)



Revolutionizing MarketingAlthough it may be some time yet before your station and your advertising prospects and clients introduce AI and/or robotics into their operations, much like Websites 15 to 20 years ago and social media 10 years ago, everyone, even the smallest local retailer, must at least be willing to educate himself or herself about these technologies.

For many, AI will likely first have an impact on their marketing and advertising efforts, as marketing leaders from across the globe cited in their response to an April 2017 survey from Salesforce.

AI’s Potential Substantial Effect According to Marketing Leaders Worldwide, April 2017

Effect PercentDelivering the right message,

on the right channel, at the right time 61%

Dynamic landing pages and Websites 61%

Hyper-personalization of content 61%

Hyper-personalized product recommendations 60%

Predictive journeys 60%

Programmatic advertising and media buying 60%

Business insights across data and systems 59%

Campaign analytics 59%

Digital asset management 59%

Hyper-personalization at scale 59%

Productivity of marketers 59%

Customer segmentation/lookalike audience modeling 58%

Lead scoring 57%

Sentiment analysis 56%

eMarketer (Salesforce), July 2017

As is often the case, what the “big boys” of marketing see on the horizon generally becomes reality for even the smallest retailers and companies.

Even if just a small percentage of the predictions and forecasts presented in this Special Report from Media Group Online becomes the norm, they will have a profound effect on businesses of all sizes and consumers everywhere. This is an opportunity to expand your knowledge and be the thought leader on which your prospects and clients will rely to guide them through The Everything Revolution to its many benefits.

Sources: Wikipedia Website, 7/17; Co.Design Website, 7/17; eMarketer Website, 7/17; eMarketer Retail Website, 7/17; Forbes Website, 7/17; MediaPost Website, 7/17; Recode Website, 7/17; CNBC Website, 7/17; The Wall Street Journal Website, 7/17; Fast Company Website, 7/17; Fortune Website, 7/17; McKinsey & Company Website, 7/17; Lippincott Website, 7/17; Glossy Website, 7/17; The Washington Post Website, 7/17; Media Village Website, 7/17; SmartBrief Website, 7/17; Computerworld Website, 7/17; Pizza Marketplace Website, 7/17; Business Insider Website, 7/17. Prepared: July 2017

© 2017 Media Group Online, Inc. All rights reserved.


Artificial Intelligence (AI) and Robotics...Artificial Intelligence (AI) and Robotics The Job Scare...

Documents

Transcript of Artificial Intelligence (AI) and Robotics...Artificial Intelligence (AI) and Robotics The Job Scare...