Artificial Intelligence & Society

General Introduction

Presentation
By
Dr Prabhat Kumar

Ph.D, IIT Delhi; LL.M (Singapore)

Advocate and Corporate Consultant
 Topics Covered in AI & Society
 A Brief Introduction and a Snapshot

 Understanding AI and Other Associate Technologies

 AI’s Rapid Progress since 2010

 Importance of Data in AI

 Big Tech working on a number of initiatives in AI

 AI Startups in finance, healthcare, HR, fashion and retail etc.

 Social, Ethical and Political challenges in AI

 Emerging business models and paradigms in the AI and Digital age --Case
Studies

 Other areas in AI

 International Competition in AI and Opportunities for Indian Businesses

 Rise of the Digital Age – A New Business Opportunity

 IDC estimates digital transformation (DX) investment spending of $5.9 trillion over
the years 2018 to 2021

 Nearly 20% of economic value output through digital economy

 McKinsey,’ India’s Trillion Dollar Digital Opportunity’ visualizes India’s potential

to empower unserved and underserved & create $ 1trillion of economic value in
2025, sustaining 55-56 million jobs

 Pressure on Businesses for Digital Transformation

 Rising Digital Budgets

 Organizations have to be digital-ready

 AI, Blockchain, Robotics, IoT and other technologies to the fore

 What is Artificial Intelligence?

Definition and Scope of Artificial Intelligence

 AI encompasses a vast field within its ambit

 Perspectives vary based upon many factors and actors involved
 No definition covers all dimensions. Here are some definitions

• Artificial intelligence is planting human-like intelligence in machines or computers

that can perform one or more tasks the way humans do.
 The 4th Industrial Revolution

Steam (1700s),
Electricity (1800s),
Computing (1900s)
invented the 1st, 10 transformative technologies
2nd and 3rd of 4th industrial revolution
Industrial • Artificial intelligence
Revolutions
• Robotics
• Internet of things (IOT)
• 3 D printing
• Blockchain applications
4th industrial • Biotechnology
revolution based • Energy generation, storage
on INTELLIGENCE and transmission
is now transforming • Computational technologies
societies, businesses
and customers • Virtual and augmented reality
• New materials
NVIDIA Meets Business with Intelligence
Smart Home Start-ups
AI Lifestyle
 Intelligence
Natural vis-a-vis Artificial
Intelligence – What it is
 Natural Intelligence
 Natural intelligence consists of
 Cognitive ability
 logic, understanding, awareness, reasoning, creativity, problem
solving and much more
 ability to perceive information, and retain it as knowledge to be
applied towards adaptive behaviors in a context.
 All the systems of control that are not artefacts, but are present in
biology.
 understanding natural intelligence requires understanding all of these
influences on behaviour, and their interactions
 It co-evolves with environment
Intelligence – Cognitive Ability
 Intelligence--Artificial
 AI is planting human-like intelligence in machines or computers that can perform
one or more tasks the way humans do

 AI is an area of computer science that emphasizes the creation of intelligent

machines that work and react like humans. Examples (Techopaedia)

 AI as “the scientific understanding of the mechanisms underlying thought and

intelligent behavior and their embodiment in machines”. (US AAAI)

 AI systems that:
 (1) think like humans (e.g., cognitive architectures or neural network);
 (2) think rationally like humans (e.g., logic solvers, inferences optimization);
 (3) act like humans (e.g., pass the Turing test via language processing, knowledge
representation, automated reasoning and learning); and
 (4) act rationally like humans (e.g., intelligent software agents, embodied robots
that achieve goals via perception, planning, reasoning, learning etc.).
 Comparison of Computer and Human Brain-1
Sr. No. Performance Criteria Computer Human Brain Remarks on Human
Brain
1 Processing Speed 122.3 petaFlops, 1 exaFlop, i.e., a billion billion 10 times faster than the
(10 15) SUMMIT (1018) calculations per second. fastest supercomputer
Computer at the
USA (raised to
143.5 petaFlops)
2 Organization of brain Brain of computer Human brain is a single whole More efficient
divided into with billions of neurons and
memory and trillions of connections which can
processing perceive, interpret, store, analyze
and redistribute

3 Calculations and May take a few Few hundred million neuron Less energy required
processing million steps transmissions and far efficient
processing

4 Flexibility based on logic, Has neuroplasticity and Flexibility allows

reproducibility, flexibility. Neurons connect and many more unplanned
predictability, and disconnect as per convenience. and unstructured
math. Random mess of neurons that do functions to be
No flexibility, not behave in a predictable performed
operates strictly as manner.
per design
Comparison ...2
 AI—A brief history

 Idea of mind into matter in Indian (Charwak 1500BCE), Greek myths

such as the golden robots of Hephaestus and Pygmalion’s Galatea
 In Shinto religion, even stones can embody kami – divinity.
 Originated in the invention of programmable digital computers in
1940 in modern era
 AI research discussed at Dartmouth in 1956 at a workshop
 US and UK governments funded research but could not move due to
hardware limitations, funds stopped
 Japanese government revived interest in 1980s, but hardware problem
yet surfaced again
 In 2000, Machine Learning started solving some problems
Moving from Data Analytics to AI
Artificial Intelligence--Explained
What does AI, ML and DL involve?
 Eye Vision vs Computer Vision—Identifying a Cat

Google Brain project deployed 2000 CPUs in a giant data center to recognize
the image of cats and people by watching videos on YouTube

Later, Andrew Ng at Stanford with Bryan Catanzaro of Nvidia could do the

same with just 12 GPUs using deep learning

Our Brain recognizes images of cat in nano second

AI and Deep Learning
Artificial and Biological Neuron
Market Opportunities in AI
 Market Opportunities in AI
 AI and related technologies will form a significant part of global GDP

 IDC-- worldwide spending on cognitive and AI related products will touch

$19.1 billion in 2018 and predicts that organizations will spend US$52.2 billion
annually in 2021 with a CAGR of 46.2% over 2016-2021
 This will trigger billions of dollars of savings and gains from that investment.

 PR Newswire, (2018) -- AI global market size to grow from $21.46 billion in

2018 to $190 billion in 2025 at a CAGR of 36.62%

 PwC- by 2030, AI would contribute up to 14% of GDP, an equivalent of $ 15.7

trillion per annum to the global economy

 McKinsey Global Institute - AI could also boost innovation by improving

product and service offerings contributing another $6 trillion, 7% of global
GDP by 2030.

 Worldwide Spending on Cognitive and Artificial Intelligence Systems Will

Grow to $19.1 Billion in 2018
 AI – Opportunities in next 20 years

Supply chains
and
manufacturing Marketing and Management -
as between sales = $ 1.4 t $1t (Risk,
US$1.3 to 2 t Finance and IT
and others)

McKinsey Service
estimates operations-
200b
economic value
creation from
using AI Product
development-
(in next 20 100 b
years)
Human
resources –
100b
Strategy and
PwC estimates corporate
AI could add finance – 100 b
$15.7 trillion by
2030
Application Areas

of

Intelligence
 Intelligence Impacting Different Industries

 Both technology and Non technology businesses will be

affected

 Industry 4.0, Manufacturing by Robots

 Services sector—e commerce, finance, insurance, health care,
drug discovery, HR practices, logistics and others
 Finance companies with big data adopting faster
 Sectors leading in Internet businesses also adopting faster
 New competition and new industries/businesses would emerge,
old players too will change
Big Tech-Heavy User and Inventor of AI Solutions

Market Cap of leading tech

companies (in US$ billion)
• Apple (121-851-923)
• Alphabet (131-719-741)
• Amazon (33-700-782) All these Companies
• Microsoft (185-702-753) are heavy users and
inventors of
• Tencent Holdings (490)
• Facebook (464) AI and other
• Alibaba 460 technologies
• Berkshire Hathway 492
• J P Morgan Chase 375
• J & J 343
 Alphasense – Intelligent Search Engine

Aggregates 1000s of Intelligently indexes Smart Synonyms Interface is intuitive

disparate sources Every line of text and expand keyword and very efficient.
in one location. takes you right to searches to include Search, read and
your keywords. synonyms. annotate document
More than 700 firms rely on AlphaSense, including investment managers, global
banks, research firms and corporations

 Investment Research
 Corporate Strategy/M&A
 Investor Relations/Private Equity
 Investment Banking/Private Research
 AlphaSense Intelligent Search Engine

Intelligent search across thousands of high value sources containing critical
information for professionals and others

 Content sources-- global coverage of company filings, transcripts, broker research,

company presentations, press releases, real-time news, trade and industry
journals and clients’ own internal content

 Rich source for those researching companies, products, themes or any number of
critical data points.

 Using AI and NLP, AlphaSense search technology leverages its proprietary Smart
Synonyms™ which expand search keywords to include related terms while
avoiding false positives.

 Mission is to curate and semantically index the world’s investment and market
research content, including the vast high-value content sets

 Our users can rapidly search and discover key data points and track impactful new
information with intelligent alerts.
AI– Unbundling of a Bank
Robot Surgeon as good as a Human
 AI- The New Competitive advantage for Nations

Whoever becomes the leader in this sphere will become the ruler of the world
- Vladimir Putin, on AI
 White House (US Govt) released a report titled Preparing for the
Future of Artificial Intelligence expounding impact of AI across multiple
industries. It has assured the industry a hands off approach to foster AI
 China’s Next Generation Artificial Intelligence Development
Plan issued in July 2017 with the goal of becoming a global innovation center by
2030. China aims at advanced manufacturing, integration of internet, big data and
AI with the real economy; an action plan for AI for 2018-20 as a complement to
Made in China 2025 strategy
 ITU of UN held the AI for Good Global Summit in June 2017 where
ethical, technical, societal, political issues along with dialogue on promotion and
co-operation for AI innovation were discussed
 AI—the Dog-fight in the Marketplace
 America and China creating a tight race
 Japan had an early lead in Robotics, but US and China now taking lead
 US has “Preparing for the future of AI (2016 plan) propounding impact of
AI across different industries
 China’s equivalent has Next Generation Development Plan (July 2017)
which sets the goal of becoming a global innovation center in 2030.
 Out of 100 important AI startups, 76 are in US (CB Insights)
 China's AI start-ups have succeeded exceedingly well
 Alibaba, Tencent, JD.com, Bytendance and SenseTime
 US has to deal with privacy issues, whereas China has no concern on
privacy, allows vast amount of citizens’ data to be collected and used
widely, say in facial recognition
 India lagging behind in AI and must catch-up
 Big opportunity lies in AI led industry and services – it could add $957
billion by 2035 to the Indian economy
 India lagging behind in AI even though it has a leader in IT industry
 US$ 480 million allocated for AI, Machine Learning and IOT in budget
2018
 A committee set up at Niti Ayog, 4 committees by Ministry of IT and a
task force by Ministry of Commerce
 Indian academia produces less ML papers than a single university in
China and all the new companies do lesser than a single company in the
US. The country also has the lowest PhD-level AI researchers per capita
among major world economies
 Worldwide, AI-related patent submission has increased 200 percent in
recent years. In 2017, China produced more academic papers on AI than
all of the 28 EU countries combined
 Indian start ups doing some good work
Blockchain can revolutionalise Artificial Intelligence
AI- Source of new Growth Rate
 AI & Society
 Society– Social and Ethical Issues
 Transformation of Society, Business, Government, Individuals
 AI for public good
 Dangers of autonomy to machines
 Ethics of Intelligent Systems
 Job losses; Human-machine team-up
 Inequality and wealth gap – Past history of tech emergence
 Bias of algorithms
 Monopoly of the big tech
 Concerns on Privacy
 Fake news and fake videos
 Over-indulgence on social media and gaming
 Cyber security and hacking
 Tyranny of authoritarian governments
 What AI cannot Do
• Natural selection has had billions of years to attack the problem of the physical
world, which seem so effortless
• Machines excel at abstract, cognitive tasks , but struggle with physical jobs in
navigating a cluttered room.
• Machines have no basic reasoning, no human-like general intelligence (but things
can improve in future) and accuracy limits
• Many things hard to capture in data and also difficult to interpret
• Humans are able to distinguish beyond 30,000 basic level categories [as opposed to
a few 1000s of categories for state-of-the-art object recognition AI]. Humans can
learn from few examples by effectively leveraging information from other object
category classes, and even recognize objects without ever seeing them
• Playing Chess for the machines is easy as the game is just 2000 year old. People
find it hard as their brains are not wired for it.
 AI cannot substitute for human emotions and feelings

 Management functions of marketing, customer relationship, financial management,

and others would remain, though AI may change these significantly
 THANK YOU

Suggestions are welcome

E-mail: prabhatkumar@prabhatkumar.com