The AI-DrivenEnterprise
Traci Gusher
How Artificial Intelligencebecomes mainstream inthe enterprise
1950’s 1960’s 1970’s 1980’s 1990’s 2000’s 2010’s
Artificial IntelligenceMachine Learning
Deep Learning
Early artificial intelligence stirs excitement
Machine learning begins to flourish
Deep learning breakthroughs drive AI boom
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When AI is narrow, the applicationis limited
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4
InternetOnline to offline
PerceptionO2O to OMO
AutonomousAutomated to autonomous
BusinessAI-driven enterprise
The four waves of AI
© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 856667
5
InternetOnline to offline
PerceptionO2O to OMO
AutonomousAutomated to autonomous
BusinessAI-driven enterprise
The four waves of AI
© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 856667
6
InternetOnline to offline
PerceptionO2O to OMO
AutonomousAutomated to autonomous
BusinessAI-driven enterprise
The four waves of AI
© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 856667
7
InternetOnline to offline
PerceptionO2O to OMO
AutonomousAutomated to autonomous
BusinessAI-driven enterprise
The four waves of AI
© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 856667
8
InternetOnline to offline
PerceptionO2O to OMO
AutonomousAutomated to autonomous
BusinessAI-driven enterprise
The four waves of AI
© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 856667
9
The enterprise is heading towards the “A Trifecta”
Automation
Artificial IntelligenceAnalytics
Robotics &Process automation
Natural language generation/dialog
Deeplearning
Image recognition
Voice recognitionPredictive
Descriptive& BI
Machine learning
Natural language processing
Source: Image inspired by The HfS Triple A Trifecta: Automation, Analytics, and Artificial Intelligence, by Phil Fersht, Jamie Snowdon, Tom Reuner, Saurabh Gupta (August 31, 2017)
© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 856667
ITautomationThe current state
of Enterprise AI revolves around more tactical use cases
Qualitycontrol /detecting
defects Cybersecurity
Predictive analytics
Customer service (including virtual
assistants)
Risk Management
© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 856667
Industrial products and services
Financial servicesand insurance
Consumer products
Government/public sector (including education
Professional services
Technology / mediaand entertainment / telecommunications
Life sciences and health care
Median Higher investmentLower investment
Low AI investment / low returns High AI investment / low returns
Low AI investment / high returns High AI investment / high returns
22%
20%
18%
16%
14%
12%
10%
Ret
urn
on in
vest
men
t
Note: The dotted lines in the graph represent the median ROI and median AI investment for all respondents, cross-industry
Source: Deloitte State of AI in the Enterprise,2nd Edition, 2018.
The level ofinvestment andROI in AI is dominated by the supply side
© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 856667
Today
There is a
10x factor in investment between leaders and laggards.
In 3 years
There will be a
50x factor
The supplyside of AI will outspend the market
© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 856667
13
94%
of companies believeAI is key to competitive advantage- IDC
© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 856667
of CIOS report they are using machine learning in their organization89%
Source: KPMG client survey across 170 technology risk professionals
are in the research and planning phase of deployment40%
are using machine learning across the business03%
AI is vastly adopted but confined todepartmental use
© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 856667
AI-enabled transformation is elusivebut remains the end goal
Experimented / prototyped
15%
Repeatable value
62%
Integrated w/operations
20%
Transformed
3%
Value
Time
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16
Customer obsession
Epic experiences
AI needs to deliver epic experiences
Workforce empowered
© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 856667
17
AI needs to be trusted
Credit to:Joy Buolamwini, MIT graduate student, YouTube video “How I’m fighting bias in algorithms”
Explainable
Attainable Ethical
© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 856667
18
AI needs to be trusted
Credit to:Joy Buolamwini, MIT graduate student, YouTube video “How I’m fighting bias in algorithms”
Explainable
Attainable Ethical
© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 856667
The entire workforce needs to transform
New jobs and skills
AI ownership & operating model
Data and AI culture
Human in the loop
© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 856667
Data needs to support humans and AI
Data citizen
Machine learning
Critical dataset
Master data
Data integration
Data quality
Feature selection
Data labeling
Training data
Testing data
Data Supply Chain
Data supply
Data demand
© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 856667
Data needs to support humans and AI
Data citizen
Machine learning
Critical dataset
Master data
Data integration
Data quality
Feature selection
Data labeling
Training data
Testing data
Data Supply Chain
Data supply
Data demand
© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 856667
The AI revolution is not just about technology, it’s really about a monumental transformation of human beings. It’s about change and, therefore, change management.
The true leaders will be the ones who succeed in doing business in wholly different ways, with humans and machines complementing each other.
© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 856667
Traci GusherPrincipal, KPMG Lighthouse
@tgusher13
https://www.linkedin.com/in/traci-gusher-5855898/
© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 856667
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