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Non-Tech Businesses Are Beginning To Use AI at Scale (economist.com)
Artificial intelligence is spreading beyond the technology sector, with big consequences for companies, workers and consumers. An anonymous reader shares a report: Bosses of non-tech companies in a broad range of industries are starting to worry that AI could scorch or even incinerate them, and have been buying up promising young tech firms to ensure they do not fall behind (the link may be paywalled). In 2017 firms worldwide spent around $21.8bn on mergers and acquisitions related to AI, according to PitchBook, a data provider, about 26 times more than in 2015. They are doing this partly to secure talent, which is thin on the ground. Startups without revenue are fetching prices that amount to $5m-10m per AI expert.
As AI spreads beyond the tech sector, it will fuel the rise of new firms that challenge incumbents. This is already happening in the car industry, with autonomous-vehicle startups and ride-hailing firms such as Uber. But it will also change the way other companies work, transforming traditional functions such as supply-chain management, customer service and recruitment. The path ahead is exhilarating but perilous. Around 85% of companies think AI will offer a competitive advantage, but only one in 20 is "extensively" employing it today, according to a report by MIT's Sloan Management Review and the Boston Consulting Group. Large companies and industries, such as finance, that generate a lot of data, tend to be ahead and often build their own AI-enhanced systems. But many firms will choose to work with the growing array of independent AI vendors, including cloud providers, consultants and startups.
As AI spreads beyond the tech sector, it will fuel the rise of new firms that challenge incumbents. This is already happening in the car industry, with autonomous-vehicle startups and ride-hailing firms such as Uber. But it will also change the way other companies work, transforming traditional functions such as supply-chain management, customer service and recruitment. The path ahead is exhilarating but perilous. Around 85% of companies think AI will offer a competitive advantage, but only one in 20 is "extensively" employing it today, according to a report by MIT's Sloan Management Review and the Boston Consulting Group. Large companies and industries, such as finance, that generate a lot of data, tend to be ahead and often build their own AI-enhanced systems. But many firms will choose to work with the growing array of independent AI vendors, including cloud providers, consultants and startups.
This is going to be a revolution, but not without some pointy haired bosses sinking businesses in the process. It's going to be the next big thing, and it's going to make their business more efficient. But a whole lot of C*s won't get the limitations or understand what's being recommended, and some major rolling disasters are going to occur as they ride AI over a cliff.
There was a very fascinating paper on AI/Machine Learning discussed here on /. the other week which captured anecdotes of AI going wrong. In general, it was due to the humans failing to constrain the logic, and allowing things like AI choosing 0 for a size because it "ran the fastest", choosing things that are logically or physically impossible because nothing told the AI that it couldn't, etc.
A lot of pointy haired bosses are going to pick up and use AI like a bazooka they don't know which way to point. I very much hope I can convince mine not to.
Velociraptor = Distiraptor / Timeraptor