Artificial Intelligence and Business Strategy
In collaboration withBCG
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The pace of progress in AI and machine learning is accelerating rapidly. In the past month alone, these are just a few of the news items I’ve seen:
- DeepMind Technologies Ltd. in London, U.K., has developed a system to scan 1 million images from eye scans and is training itself to spot early signs of degenerative eye conditions.
- Rethink Robotics Inc. of Boston, Massachusetts, founded by former MIT AI Lab director, Rodney Brooks, made massive upgrades to its Sawyer robots to help nonexperts program routines that instruct the robot how to carry out complex tasks.
- H&R Block’s tax preparers began using IBM’s Watson computer system to maximize customer deductions. Watson “knows” thousands of pages of federal tax code and will continually update changes as they occur.
- NuTonomy Inc. of Cambridge, Massachusetts, a startup developing self-driving cars based on technology from MIT, has launched a small fleet of autonomous taxis in Boston.
- Forward, a San Francisco, California, startup founded by Google’s former special projects director, is attempting to shift traditional health care away from immediate and reactive care procedures, to proactive care through the use of AI and wearable sensors.
Deep learning and neural networks have dramatically improved in effectiveness and impact, leading to human-level performance in many aspects of vision, conversational speech, and problem-solving. As a result, industries are in the midst of a major transformation and more is on the way.
But there’s also a backlash brewing. Median income in America is lower now than in the past 15 years, and wealth is concentrated at the highest levels. As seen in the recent U.S. elections, there is dissatisfaction with the uneven distribution of the benefits of technological progress. IDE research bears out the chasms many are feeling.
Rumblings about robots replacing more and more human work have been heating up — with legitimate concerns. In 2014 when I published The Second Machine Age with Andrew McAfee, we anticipated much of this progress, but the pace has accelerated beyond expectations. This isn’t the first time automation has transformed factories, of course, but with today’s robust AI technologies, automation is starting to creep into fields that require less repetitive manual labor and once seemed immune to this shift, such as law, education, and journalism. Today’s advances are augmenting human minds, not just muscles.