As a digitalisation and business transformation consultancy, a common theme of the discussions we have with organisations is around the confusion between artificial intelligence (AI) and machine learning (ML). In this short article we look at this.
The WHAT and NOT of AI
AI is a broad concept encompassing ML and other predictive analytics techniques, whilst ML focuses solely on algorithms and models enabling machines to learn from data. Common ML terms include regression, classification, clustering, and deep learning. It’s important to remember that AI isn’t new; it’s been around for over 70 years now but, what has accelerated AI and ML adoption is the democratisation of computing capability and access to infrastructure and computing power via the modern web and cloud.
Employing accurate terminology is essential for leaders to articulate a clear vision and strategy that aligns with transformative concepts poised to disrupt their organisations.
The Real Value of ML and AI
ML can be viewed as one of the tools or components of AI. AI includes finding, cleaning, and preparing data from various sources, then applying ML algorithms to interact with the data, make predictions or decisions.
The value and impact possible through ML and AI typically lie in undertaking repetitive, mundane tasks or high-volume applications.
Areas where organisations have flourished include:
Healthcare
- AI-powered image analysis helps radiologists detect abnormalities faster and more accurately in medical scans.
- ML algorithms predict patient outcomes and inform treatment plans.
- AI analyses electronic medical records to identify at-risk patients and target preventative care.
Finance
- Banks use ML to detect fraudulent transactions in real-time.
- Investment firms leverage ML to analyse market data and make more informed trades.
- AI-powered chatbots provide customer service for banking tasks.
Retail
- Online retailers use ML for personalized product recommendations.
- AI analyses customer data to optimize pricing and inventory levels.
- Computer vision enables visual search capabilities.
Manufacturing
- ML optimizes production processes and schedules preventative maintenance.
- AI-powered robots automate repetitive tasks on factory floors.
- Generative AI explores design possibilities for engineers.
Transportation
- Self-driving cars use AI to interpret sensor data and make real-time decisions
- Logistics companies use ML to optimize delivery routes and schedules
- AI improves traffic forecasting and management
Marketing
- ML enables more accurate customer segmentation and personalization
- ML analyzes customer behavior data to create targeted marketing campaigns
- AI powers chatbots for 24/7 customer support
Cognitive technologies and data-driven algorithms ought to be integrated into your organisation’s long-term roadmap, both for current operations and future initiatives. However, their implementation must be precise and purposeful, aligning closely with the specific objectives for which they were developed.
Exercise caution.
Intelligent systems and predictive analytics have become permanent fixtures in the business landscape. Clinging to outdated operational practices may leave you trailing behind more adaptive rivals.
While it’s crucial to separate fact from fiction in tech journalism, intelligent automation holds significant strategic value for your enterprise. However, its integration requires a well-structured implementation plan spanning immediate, intermediate, and long-range horizons, focusing on areas ripe for transformation.
Do steer clear of sweeping, ill-conceived declarations such as “Let’s infuse AI into half our operations.” Instead, pinpoint genuine opportunities where smart technologies can yield tangible benefits, particularly in domains that consistently drain your resources without proportionate returns such as repetitive manual or process-intensive tasks.
Don’t let the AI and ML revolution pass you by. Start by identifying one key area in your business where these technologies could make a significant impact. Develop a strategic plan for implementation and measure the results. The future of your business may depend on your ability to harness these powerful tools effectively. If you are unsure where to start or just want to talk this through, complete the form below below and take advantage of a free 30 minute conversation about your needs.
