77 Questions
What is the main challenge for companies in quantifying and measuring the value contribution of AI initiatives?
The interweaving of data and learning algorithms
Who acknowledges the tremendous value potential of artificial intelligence (AI) and the subfield of machine learning (ML)?
Companies of all sizes across various industries and geographies
What holds tremendous value potential for businesses, the economy, and society?
Artificial intelligence (AI)
What is mentioned as one of the reasons for the uneven and non-linear increase in the payouts of AI's benefits?
Qualitative nature of AI's benefits
Which entity is NOT mentioned as concurring with the value potential of AI?
Regulatory agencies
What is acknowledged alongside the acknowledgment of AI's value potential?
Qualitative nature of AI's benefits
How does the algorithm help the business to offer a new product or service?
By enabling intelligent, resource-sensitive network planning for charging stations
Does the application improve an existing product or service?
Yes, through recommendation engines used for personalized product suggestions
How can the algorithm be translated into additional profit by improving customer retention?
By preventing customers from leaving the company/service
What is the main external value generation driver for the mobile taxi ordering service?
Exact pinpointing of destination through map integration
How does the algorithm enable the creation of a new business model?
By enabling intelligent, resource-sensitive network planning for charging stations
"How much additional profit will be generated?" Which value calculation approach does this question relate to?
$ Profit per product or service sold $ Serviceable obtainable market $ Scaling effect (e.g., number of processes, etc.)
What is a key factor in the internal generation of value through AI applications?
Reduction of effort and manual tasks
Which of the following is an example of improved resource consumption through AI applications?
Reduced energy consumption in data centers through control systems
How does AI contribute to increased operational efficiency?
By automating manual and cognitive tasks
Which AI application example demonstrates improved access to information and decision making?
CV-aided retrieval and suggestion of similar products based on customer requests
How can operational risk be reduced through the use of AI applications?
By evaluating data to identify fraudulent patterns
What is one of the challenges in quantifying benefits for external AI applications?
Lack of historical return data and absence of established KPI mechanisms
What risk is associated with overemphasizing return expectations in the early stages of AI use case selection?
Hinders innovation and decelerates the development of viable products and/or applications
What does the term 'use cases' refer to in the context of the article?
Projects in an ideation stage
What should be differentiated when assessing investment expenditures for AI applications?
Labor and infrastructure/toolstack/license costs
What must AI product managers estimate in order to reach the value threshold for AI applications?
Minimum required model performance needed
What are the main value drivers for AI applications?
Automating internal processes and strategic gains
What do decision makers need to differentiate when calculating use case returns?
Internal and external value generation
What should be taken into account in the Return on AI (ROAI) calculation?
Both the costs saved through the application and the costs incurred through falsely predicted events
In what form can false outputs arise in AI applications?
In the form of false classification or clustering
What stage does the early exploration of first proofs of concept for AI entail?
Initial investments and data preparation
What is becoming increasingly important with the successful operationalization of AI applications across technology domains?
AI portfolio management
What must organizations strive to capture to become a market leader in utilizing AI technologies' full value potential?
Short-term value pools in internal processes and long-term value potential
What should be leveraged to increase overall AI maturity after short to mid-term value capture?
Both gained capital and knowledge
What should be integrated into a multistep journey for a holistic AI transformation?
An integrated, multistep journey
What is required to reach the break-even point and create a significant return on investment in AI deployment?
Expertise, scale, and time
What is an example of a false output in predictive maintenance cases?
False alarms leading to unnecessary repair work
What should be considered in the Return on AI (ROAI) calculation based on the given information?
Consider benefits from AI product/application, uncertainty of benefits, and resources required for model development.
What is an important aspect to consider when determining investment expenditures for AI applications?
Incremental cost changes for rollout/scaling across processes, regions, sites, etc.
Which activity falls under the ML lifecycle core activities and cost categories?
Integration into existing systems/model building
What does the process diagram on page 13 provide practical guidance for?
ROAI calculation
What is one of the activities involved in AI application life cycle from ideation to productive ML operation?
Exploratory data analysis
What is crucial for organizations to realistically assess when determining investment expenditures for AI applications?
Refinement of initial value estimation based on value contribution and cost data gathered after deployment
What should organizations set up when assessing the value of AI applications?
Initial value estimation based on domain know-how and/or historical evidence
What is the main focus of the 'Return on AI (ROAI)' calculation mentioned in the text?
Assessing the financial performance of AI applications
What is emphasized as an important consideration for organizations when determining investment expenditures for AI applications?
Differentiating between internal and external value generation
What should AI product managers estimate to ensure reaching the value threshold for AI applications?
The minimum required model performance
Which factor is highlighted as causing uneven and non-linear increase in the payouts of AI's benefits?
Desired performance level
What is identified as a core lever to facilitate a thorough, transparent calculation of AI use case returns?
Industry and use case class
In what way does the text suggest that companies tend to use AI as they mature into AI leaders?
To enhance strategic gains such as faster revenue growth and greater market share
What is a major challenge for companies when quantifying and measuring the value contribution of AI initiatives?
The inability to identify qualitative benefits of AI
What is a key factor in the internal generation of value through AI applications?
Leveraging data and learning algorithms
What should organizations set up when assessing the value of AI applications?
A multistep journey for a holistic AI transformation
How can operational risk be reduced through the use of AI applications?
By leveraging machine learning algorithms
What does the algorithm aim to achieve by automating the filing, documentation, and rediscovery of invoices and delivery notes?
Decreased human effort and high-quality documentation
What holds tremendous value potential for businesses, the economy, and society?
Artificial intelligence (AI)
What is the primary focus when an algorithm improves resource consumption?
Reduced energy consumption and improved resource efficiency
What is one of the challenges in quantifying benefits for external AI applications?
The qualitative nature of many of AI’s benefits
How does the algorithm contribute to improved speed of operations?
By improving machine utilization and reducing downtime
What is the result of the algorithm's enhanced access to information and decision-making processes?
Better retrieval of detailed information and more accurate risk assessment
How does the algorithm's application in analyzing a large variety of documents impact operational risk?
It reduces operational risk and translates into improved processes and cost savings
What significant contribution does AI offer to the innovation performance of the economy according to the text?
~10% increase in German sales from world market innovations
What does the ML lifecycle involve from ideation to productive ML operation?
Model building/training, inference pipeline, and model monitoring
What is the main source of value identification in the AI value assessment approach?
Set-up of representative, quantifiable KPIs (value chain factors)
What is a crucial aspect mentioned for organizations when determining investment expenditures for AI applications?
Hardware costs (Cloud vs. on-premises vs. hybrid), licenses, etc.
What does the AI application's entire life cycle include for investment expenditure assessment?
Model selection and versioning changes to existing processes for the integration of AI applications
What is included in the strategic and organizational learning in the AI value assessment approach?
Development of a knowledge base regarding uncertainty factors per use case class
What is involved in the collection of historical evidence on AI-based value creation in the AI value assessment approach?
Collection of operative best practices in use case assessment and prioritization
Which factor can be improved through the use of AI in the current process?
Reduction of effort through use of current process (time) cases (in %)
What is a potential impact of AI on external value generation drivers in various industries?
Creation of new business models
What is a potential benefit of AI in the context of offering a new product or service for a business?
Recommendation engines for personalized product suggestions
How can the algorithm contribute to improved customer retention for a business?
Recommendation engines for personalized product suggestions
What is a potential calculation approach for obtaining additional profits in the taxi AI-enabled market?
Profit per product or service sold and Serviceable obtainable market (SOM)
Which AI application example demonstrates improved access to information and decision making?
Demand forecasting for charging stations
What should be considered in the Return on AI (ROAI) calculation based on the given information?
The benefits from AI product/application and the uncertainty of those benefits
What is one of the challenges in quantifying benefits for external AI applications?
Connection of model performance metrics to business KPIs
What is acknowledged alongside the acknowledgment of AI's value potential?
The need for early, short-term value capture and foundations for long-term success
What is mentioned as one of the reasons for the uneven and non-linear increase in the payouts of AI's benefits?
Initial qualitative value data analysis and insight
What is an example of a false output in predictive maintenance cases?
Material requirements being estimated incorrectly
Which activity falls under the ML lifecycle core activities and cost categories?
(Automated) retraining and reporting
What stage does the early exploration of first proofs of concept for AI entail?
Ideated, prioritized use case
This quiz covers the analysis of cost factors and potential benefits related to process optimization. Topics include labor costs, time savings, productivity boost, and resource expenditures.
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