This article tries to explain AI in 1,000 words, but that’s impossible. It took me 7,000 words in my upcoming report “Machine Learning: A Primer on AI-Based Software Savants” to explain what machine learning and AI is and how it works and I will need to write another report to identify how machine learning will enter the enterprise, identify suppliers, and suggest where it should be applied. What is clear from this article is that every enterprise should be evaluating its businesses processes and figuring out how to reduce costs and increase revenue using machine learning:
“The growing focus on customer experience means businesses now have no choice but to continuously improve their customer journey. AI is central to brands taking digitalisation to a new, exciting level. Ensuring they are accessible across all channels has become key and artificial intelligence is helping organisations boost accessibility and their bottom line.
AI is already impacting the business landscape in many ways: biometrics and facial recognition technology has meant companies can perform real-time comparisons to image databases. It is being used to increase personalisation and drive deeper relationships between brands and their customers and we are seeing the use of natural language and voice-based user interfaces across e-commerce.
Even the data collected by fraud platforms is being used for more than just identifying fraud. The data from fraud platforms can be utilised in many ways, for ‘good’, as well as ‘bad’, for example, in analyzing spending patterns amongst customer data and helping marketing teams to develop targeted marketing campaigns. Purchasing data can also help a brand to identify customer segments and establish target markets for advertising.”
The author is also correct in stating some of the obvious areas where machine learning can be applied today:
“Research into behavioural economics shows that as humans, certain biases (decision fatigue, intentional blindness, and herd instinct) impact our ability to operate perfectly. Expecting fraud teams to work through thousands of pieces of data and be spot on every time, is simply not practical. Machines need to be allowed to lead some stages of the tedious, repetitive processes – releasing human creativity.
Using best of breed machine learning technology, our customers have significantly reduced the amount of time it takes to analyse data and have provided increased accuracy in fraud detection and a reduction in false positive rates, meaning less declines and more transactions.
The role of the human, interpreting, analysing and understanding is still key to the business process. I believe that there is a role for both humans and machines in the world of business. Instead of man versus machine, I believe the approach should be man AND machine.”
Overview by Tim Sloane, VP, Payments Innovation at Mercator Advisory Group
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