Technology Breakthrough in AI WorldHow Businesses are using AI

—Dev MookerjeeChief Technology Officer, IBM Watson SolutionsAsia Pacific

Computex TaiwanTaipei28 May 2019

#IBMWatson | @mookerjee

AI

Humans

Narrow AI: Initial Value Creation

4

2010 2015

AI learns to solve specific tasks, or focuses on individual domains or modalities primarily using human-curated , training data sets & manually-crafted architectures

5

2010 2015

General AI: Revolutionary

2050–Beyond

Narrow AI: Initial Value Creation

AI acquires knowledge by reading, discussion, observation, experiments. Broad transfer of knowledge across tasks. Cross-domain reasoning is common. Broad autonomy within human-managed teams.

6

2010 2015

General AI: Revolutionary

2050–BeyondWe are here

Broad AI: Disruptive and Pervasive

Narrow AI: Initial Value Creation

AI selectively acquires and integrates knowledge from multiple modalities and sources, including interaction; develops and retains skills that it adapts and combines to complete new tasks; learning is adaptive, using automatically-constructed architectures.

Accessing Human Created Content

Machine Learning on Structured

Data

Interacting with

Machines in Human Natural

methods

Three major forms of AI use cases TODAY

7

Contracts, Emails, Social Media, Phone Conversations, Images…

Next Best Action, Next Best Offer, Predictive/Probability models

Virtual Assistants, Chatbots, Natural Language Search ..

IBM Watson is the leading AI Platform for Business

16,000Engagements

80Countries

20 Industries

8© 2018 IBM Corporation

Watson Data & AI

Every

Every Business

and Enterprise

is Embracing AI

Leaders everywhere are

monetizing data and

developing strategies to

embed AI in business

SalesMarket basket analysis, next-best offer, customer churn, propensity to buy, and smart engagement.

MarketingDiscount targeting, email optimization, and lifetime client value, basket recommendation systems.

Human ResourcesMedicare fraud, AI-assisted diagnosis, and drug demand forecasting.

Supply ChainPredictive maintenance, process optimization, and demand forecasting.

Energy & UtilitiesPower usage prediction, maintenance, and smart grid management.

FinanceCustomer segmentation, credit risk, and credit card fraud detection.

SecurityActivity monitoring, intrusion detection, and log analysis.

Data & TechnologyDynamic pricing, call center assistance, tourism forecasting, and self-driving cars.

Every Businessand Enterpriseis Embracing AI

Leaders everywhere are monetizing data anddeveloping strategies to embed AI in business

IBM Cloud / Watson and Cloud Platform / © 2018 IBM Corporation9

AI Leaders

10© 2018 IBM Corporation

AI Leaders in Asia Pacific region

11© 2019 IBM Corporation

LegalMation saw its potential to automate and accelerate the more routine, repetitive aspects of legal practice. Using Watson Natural Language Understanding and Watson Knowledge Studio, the company built a platform that enables legal practitioners to draft early phase response documentation in just two minutes or less. Automating one of litigation’s more tedious, time-consuming aspects has enormous transformational potential for law firms and in-house legal teams. By freeing time and resources for higher-tier services, law practices deliver demonstrably greater value to their clients, improving their competitive standing in the marketplace.

LegalMation

Company Description

Founded in 2016 and headquartered in Irvine, California, LegalMation is harnessing AI to change the way legal professionals provide value to their customers. The company brings together award-winning lawyers and technologists to create solutions that automate and accelerate routine tasks, allowing law firms and corporate legal departments to redirect resources to more critical activities. LegalMation’s cornerstone cognitive platform drafts high-quality litigation work in minutes, delivering unparalleled time and cost savings.

Business Solution

Business Benefits

• IBM Watson Natural Language Understanding

• IBM Watson Knowledge Studio

• IBM Cloud

• Two minutes or less for drafts that previously required hours of labor

• 80% cost savings and more accurate, higher-quality response documents

• Rapid time to market with support from the IBM Watson ecosystem

Industry: Professional Services

See Online

Belron brand Autoglass® BodyRepair applied the IBM Watson Visual Recognition service to its website, eliminating the need to manually assess customers’ vehicle damage and generate quotes. Customers simply upload images of their vehicle damage on the website and enter some basic details about themselves and the vehicle. If they meet the requirements, the Watson service issues a quote. Customers can then book a service time and enter credit card details to facilitate payment after the business makes the repairs.

AutoglassBody Repair

Company Description

Founded in 1897 and headquartered in Egham, England, Belron is the global leader in vehicle glass repair and replacement, serving more than 16.5 million customers in 34 countries. Recently, the company expanded services to include cosmetic auto body repair through more than 10 retail brands. These include Carglass in Europe, Autoglass® and Autoglass® BodyRepair in the UK, and Safelite Autoglass in the U.S. Belron employs more than 26,000 people worldwide and reported sales of EUR 3.5 billion in fiscal year 2017.

Business Solution

Business Benefits

• IBM Watson Visual Recognition

• >70% improvement in quote processing times by using AI analyses to determine repair costs

• Optimizes damage advisors’ time and skills by allowing employees to focus on more complex claims

• Boosts efficiency of the quote generation process by supporting human decision-making with AI analyses

Industry: Automotive

See Online

Max Kelsen

Company Description

Part of a vibrant startup community in Brisbane, Australia, Max Kelsen is an analytics and software engineering agency specializing in applying machine-learning and AI technologies to drive innovation. The company employs data scientists, research analysts and software engineers who help enterprises uncover rich, actionable insights from under-tapped internal and public data sets, including social media. Founded in 2015, Max Kelsen builds strong collaborative relationships with businesses and organizations in financial services, healthcare, government and other industries.

Business SolutionTo help organizations and businesses improve their customer experience, Max Kelsen sought to unlock insights hidden in unstructured data, including social media, call center logs, letters and emails. The company selected IBM Watson services to build an insight engine for powering a new AI platform that can deliver highly accurate, detailed insights into customer experiences. Now, it can more effectively arm businesses and governments with the specific knowledge needed for taking targeted actions to solve problems.

Business Benefits

97% accuracy achieved in insights that a local government entity used to drive ROI on initiatives to improve citizen experiences

~2 weeks to create AI models using Watson tools that save the startup time and money by not requiring coding

Delivers new business value to organizations by extracting precise insights from their unexplored customer data

• IBM Watson Discovery

• IBM Watson Natural Language Understanding

• IBM Watson Knowledge Studio

• IBM Cloud

Industry: Professional Services

See Online

A few more…

15© 2019 IBM Corporation

Trust &Regulations

16© 2018 IBM Corporation

AI adoption is accelerating…but there is a unique set of challenges

94%of companies believe AI is key to competitive advantage.

– IDC

1in20companies has extensively incorporated AI in offerings or processes.

– MIT Sloan Management Review

63%cite availability of technical skills as a challenge to implementation.

– IBM IBV AI 2018

60%see regulatory constraints as a barrier to implementing AI.

– IBM IBV AI 2018

“Every organization that develops or uses AI, or hosts or processes data, must do so responsibly and transparently. Companies are being judged not just by how we use data, but by whether we are trusted stewards of other people’s data.

Society will decide which companies it trusts.”

Ginni Rometty, Chairman, President and CEO, IBM

1. The purpose of AI is to augment human intelligence

2. Data and insights belong to their creator

3. New technology, including AI systems, must be transparent and explainable

IBM AI Principles

• IBM has released the world’s largest annotation dataset for studying bias in facial analysis

• A dataset of annotations for over 1 million images to improve the understanding of bias in facial analysis

• An annotation dataset for up to 36,000 images –equally distributed across skin tones, genders, and ages

AI OpenScale

Business challenge Outcomes with AI

Mortgage applications

Models trained on historical applicant data may inherently exhibit bias towards certain groups.

Fraud

Fraud costs organizations billions of dollars each year, whether through credit cards, insurance claims, or tax compliance.

IoT mining

Performance issues that occur on the job require expensive maintenance efforts that can result in significant project downtime. A mining company installed sensors on trucks that predict performance issues.

Bias detection and mitigation

Explainability

Traceability

20

IBM Watson Anywhere

• Deploy Watson capabilities anywhere, on the Cloud(s) of your choice

• Align your AI models and workflows with the data they rely on

• Put open source to work using an array of cloud-native, data and AI frameworks

One Platform,Any Cloud

IBMCloud Private

for Data

IBM Cloud

• Watson Studio• Watson Machine Learning• Watson Knowledge Catalog

• Watson APIs• Watson OpenScale• Watson Assistant & Discovery

IBM Watson

Google Cloud

What is your goal for implementing

AI?

21© 2018 IBM Corporation

Getting Started

Organisational Readiness

> Skills

> Change Management

> Culture

> Dept vs Enterprise Vision

Technology Readiness

Representative Data <

Volumes & Ownership of data <

Open/Accessible systems <

Value Readiness

> Defined Success Measure

> Think BIG – start small

Thank You

24© 2018 IBM Corporation

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