[PDF] PwC France AI automation and complementary technologies

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Conclusion

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Contacts

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1 Dan Haar, "

AI is no longer an |emerging technology; i|t is an essential as|set. Accordingly, the first step for|

you as CEO is to edu|cate yourself on th|e art of the possib|le, by understandin|g how these technologies are likely to disrupt|, and improve, critical aspec|ts of your business.| CEOs are at different levels of matur|ity - some are in the early stag|es of experimentati|on, others have already launched succe|ssful pilots and now| want to scale up t|heir efforts, and still ot|hers have grown up with AI and| are now looking for |the next frontier of innovati|on. Regardless of your starting point, you| don"t need a PhD in th|e subject, more like a working k|nowledge of the fu|ll range of potential| applications and t|he different development pa|ths (such as capabil|ities built in-house, partnersh|ips, acquisitions an|d licensing). It al|so helps if you can| cultivate a growth mind-set, which enc|ourages lifelong le|arning and intellect|ual elasticity. 4 There should be a shared, base-level unde|rstanding among you|r executive team -| and your board of directors - about what| AI and related technologie|s are capable of and h|ow they can be integrated throughout the busines|s. Part of this inc|ludes bringing in d|iverse perspectives | and people who wil|l ask lots of questi|ons and even try to| poke holes in assum|ptions about where and why AI should| be applied. Our Digital IQ surv|ey consistently show|s that a CEO"s digital acumen co|rrelates with the company"s financial performa|nce. Some 54% of t|op financial perfor|mers say their lead|ership is digitally savvy |and helps the workf|orce think in a new |way, compared with 41% of oth|ers. 5 In the most recent edition of t|he survey, respondents self-sele|cted into four groups, the most

digitally savvy of |which are the 'redefiners." Executiv|es in this group expect their d|igital strategy

to fundamentally c|hange the way thei|r company does busi|ness, and nearly tw|o-thirds of them embrace the most co|mprehensive and advanc|ed definition of di|gital. 6

Stuart R. Levine, |"

7 " Next, you as the CE|O need to define a v|ision for the ways |automation and AI |will drive the company"s business strategy. A key issue here is the scope and |ambition of that v|ision - how broadly and how fast |the organisation should i|mplement these tech|nologies. Will it b|e an AI

pioneer or merely a fast follower| in its industry? Eq|ually important, y|ou need to identif|y specific

business problems or challenge|s and determine whe|re AI can help. The| hype surrounding some emerging applications o|f AI can be so over|whelming that comp|anies are tempted to chase after them, l|aunching pilot aft|er pilot without a| clear approach for scaling up| successes or tying initiativ|es to broader strategic goa|ls. The vision could in|clude using AI to b|oost efficiency, automate processes, create new products and services, or im|prove the customer ex|perience. For exam|ple, two recent entrants in t|he consumer insurance |market, Snapsheet a|nd Lemonade, are speeding up the p|rocess by which claims are processed with apps po|wered by machine lear|ning algorithms. Le|monade, a startup that sells r|enters" insurance, |uses an algorithm t|o quickly search for signs of fra|ud by scanning photos of |property damage that| customers submit vi|a a mobile app. Th|is step helps speed up the claims| process for policyhol|ders and reduces the company"|s risk exposure. And Snapsheet, which li|censes its app to au|to insurers, can assess car d|amage claims in les|s than three hours using phot|os customers add to |claims via an app. |That allows insurers to close most claims in less |than three days, compared with the typica|l analogue claim p|rocessing time of 30 days. 9 In other cases, AI |will be used primar|ily to enhance or |amplify experts" kn|owledge. At the Dana-Farber Cancer| Institute in Bosto|n, all patients hav|e the option to ha|ve their DNA sequenced so doctor|s can use the infor|mation to improve their treatment plans. CEO L|aurie Glimcher says Dana-|Farber researchers are also exploring th|e use of machine le|arning to better analyse tumo|ur samples from biopsies. 10 CEOs typically aren"t directly involved in |deploying AI and o|ther advanced tech|nologies. But it"s clearly their man|date to set up a pr|ocess by which that| happens. That ofte|n means putting a team in |place - typically |led by the CIO or C|TO but including a |diverse range of expertise and persp|ectives, from data scientists a|nd tech experts to |operational manage|rs and commercial leads. In some| cases they bring i|n third parties as well, |from sources such as academia or AI-related startups. CEO|s should sync with t|heir tech leads to |develop a clear picture of the various AI| development paths,| including develop|ing solutions in-ho|use, acquiring AI companies, licen|sing AI solutions an|d forging partnerships. Next, you need to |establish the right| decision-making au|thority, governance and other parameters that all|ow technology to b|e embedded across business units an|d functions. The goal is to appl|y AI as broadly as it makes se|nse for your organisation - beyond| merely solving a specific t|echnical problem. At Siemens USA, whic|h employs 50,000 pe|ople and has US$23bn| in revenue, CEO Barbara| Humpton has a hand |in all of the comp|any"s AI initiatives. S|he does not directly supervise them, but she has se|t the company"s AI agenda and spe|nds a lot of time i|n media interviews | and industry panels| sharing Siemens USA|"s approach, which ties in| with that of the |parent company based in Ge|rmany. Siemens USA has a |venture capital arm based| in Palo Alto, Cal|if., that, when it inve|sts in technology c|ompanies, buys a la|rge enough stake in |them so it can use | its considerable resources to help those c|ompanies grow or otherwise inc|rease their chances | of success. Siemens |USA also has an annu|al R&D budget of US|$1.3bn and runs its| R&D unit using a collaborati|ve rather than hie|rarchical management |approach, which helps i|ncrease the company"s agility. 11

Michael Krigsman, "|

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19 "

PwC"s data, analytics, |automation and AI |practices provide a range of d|ata analytics and artificial inte|lligence (AI) servi|ces to help business|es transform, bring|ing data to the core and analytics & A|I to the stream of all business |functions and indus|tries. We deliver through our AI and an|alytics transformat|ion framework cove|ring six capability| dimensions, balanci|ng technology tran|sformation and huma|n engagement: cult|ure and talent, organization and gov|ernance, business deci|sions and analytics,| data and information, techn|ology and infrastru|cture, and process and integrati|on. We ensure PwC"s Responsible AI fra|mework and toolkit| flow through to our portfo|lio, strategy and assets, addressing five key dime|nsions to make the |use of AI and data |responsible: bias/ fairness, interpretability, robustness & security|, governance, and ethics &| legal. in the organisation strategy| practice for PwC"s Strategy&. He serv|es clients across industries, focu|sing on the financial-services, |consumer packaged g|oods and retail industries.quotesdbs_dbs4.pdfusesText_8

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