MCDT Week 5: Drivers of Digital Transformation PDF

MNA1098 Managing Change and Digital Transformation Week 5: Drivers of Digital Transformation Fabrizio Amarilli [email protected] 2024 - Managing Change & Digital Transformation 1 What shall we see What is Artificial Intelligence and wha...

MNA1098 Managing Change and Digital Transformation Week 5: Drivers of Digital Transformation Fabrizio Amarilli [email protected] 2024 - Managing Change & Digital Transformation 1 What shall we see What is Artificial Intelligence and what is Generative AI? How can AI impact organizations’ life? How can organizations exploit the potential of Generative AI? 2024 - Managing Change & Digital Transformation 2 Adoption of AI has increased (…thanks to GenAI) Source: https://www.mckinsey.com/ 2024 - Managing Change & Digital Transformation 3  Source: https://ventionteams.com/solutions/ai/adoption-statistics 2024 - Managing Change & Digital Transformation 4  What is AI? 2024 - Managing Change & Digital Transformation 5 What is AI? AI is the simulation of human intelligence by machines. AI is the ability to solve problems. AI is the ability to act rationally (logically). AI is the ability to act like humans. 2024 - Managing Change & Digital Transformation 6 Definitions of AI Systems that think like human Systems that think rationally “The exciting new effort to make computers “The study of mental faculties through the thinks … machine with minds, in the full and use of computational models” (Charniak et al. literal sense” (Haugeland 1985) 1985) “The automation of activities that we “The study of the computations that make it associate with human thinking, activities: possible to perceive, reason, and act.” decision-making, problem-solving, learning.” (Winston 1992) (Bellman 1978) Systems that act like human Systems that act rationally “The art of creating machines that perform A field of study that seeks to explain and functions that require intelligence when emulate intelligent behavior in terms of performed by people” (Kurzweil, 1990) computational processes” (Schalkol, 1990) “The study of how to make computers do “AI ….. Is concerned with intelligent behavior things at which, at the moment, people are in artifacts.” (Nilsson 1998) better.” (Rich&Knight 1991) 2024 - Managing Change & Digital Transformation 11 Definitions of AI AI definitions vary along two dimensions: Thinking processes and Reasoning (think) Behavior (acting) Think: definitions measure success in terms of fidelity to the way brain works A system is intelligent if it thinks like a human being. Acting: definitions measure against an ideal concept of rationality. A system is intelligent, if it is rational and “does the right thing”. 2024 - Managing Change & Digital Transformation 12 What is AI? Some interpretations AI is the simulation of human intelligence by machines. AI is the ability to solve problems. AI is the ability to act rationally (logically). AI is the ability to act like humans. 2024 - Managing Change & Digital Transformation 15 The Current (?) Perspective: the Rational Agent An agent is “something that acts” (agent from the Latin agere which is ‘to act’). All computer programs do something (act), but computer agents are expected to do more: operate autonomously, perceive the environment, adapt to change, create and pursue goals. A rational agent is one that acts so as to achieve the best outcome. Rational behaviour: Doing the right thing! The right thing: That which is expected to maximize the expected return. Need of utility function. This AI paradigm is known as the standard model. 2024 - Managing Change & Digital Transformation 16 Your Experience on AI Do you experience any AI service in your daily life? 2024 - Managing Change & Digital Transformation 17 Your Experience on AI Do you experience any AI service in your daily life? What is “the right thing” for them? 2024 - Managing Change & Digital Transformation 18 What is behind AI? 2024 - Managing Change & Digital Transformation 19 AI Lexicon AI is concerned mainly with rational action. Agents can perform ‘the right thing’ with actual data or capitalising on previous data and a model. Several terms are used in AI language: AI vs Machine Learning (ML) vs (Neural Networks) vs Deep Learning (DL). What is the difference? 2024 - Managing Change & Digital Transformation 20 AI, ML, NN, DL Machine Learning is a subfield of Artificial Intelligence. Deep Learning is a subfield of machine learning. Neural Networks (or Artificial NN) make up the backbone of Deep Learning algorithms. The number of node layers, or depth, of neural networks distinguish a single neural network from a deep learning algorithm, which must have more than three. 2024 - Managing Change & Digital Transformation 21 AI, ML, NN, DL Machine Learning (ML) is a branch of the broader field of AI that makes use of statistical models to develop predictions. ML has the ability to learn without explicitly being programmed to do so. ML uses algorithms that take empirical or historical data in, analyse it, and generate outputs based on that analysis. ML works with so-called training data (set) first and then they learn, predict, and find ways to improve their performance over time. Deep Learning (DL) is a subset of machine learning that uses artificial neural networks to process and analyse information. 2024 - Managing Change & Digital Transformation 22 Forms of learning Supervised learning: correct answers for each example The software is trained on a set of data inputs and outputs, with a goal of learning a general rule that maps the given inputs to the given outputs. Unsupervised learning: correct answers not given The learning algorithm is not given a guidance; it works to discover the pattern or structure in the input on its own. Reinforcement learning: occasional rewards The software will confront a problem in a dynamic environment and as it works to perform a given goal, it will receive feedback (rewards), which will reinforce its learning and goal seeking effort. 2024 - Managing Change & Digital Transformation 23 Neural networks Neural Networks are the backbone of Deep Learning Neural Networks reflect the behaviour of the human brain, allowing computers to recognize patterns and solve AI problems. Also known as Artificial Neural Networks (ANN) or Simulated Neural Networks (SNN) Biological Learning Systems are built of very complex webs of interconnected neurons. Information-Processing abilities of biological neural systems must follow from highly parallel processes operating on representations that are distributed over many neurons. 2024 - Managing Change & Digital Transformation 25 How Neural Networks work The input and outputs are typically represented as their own neurons, with the other neurons named hidden layers. 2024 - Managing Change & Digital Transformation 26 How are organizations using AI? 2024 - Managing Change & Digital Transformation 27 Top ten factors driving AI adoption Source: https://ventionteams.com/ solutions/ai/adoption-statistics 2024 - Managing Change & Digital Transformation 28 Drivers and barriers Source: IBM Global AI Adoption Index Report (2023) 2024 - Managing Change & Digital Transformation 29 AI Use Cases in organizations Automation Analysis Services to customers Source: IBM Global AI Adoption Index Report (2023) 2024 - Managing Change & Digital Transformation 33 AI Use Cases in organizations (examples) Healthcare Heavy industry Finance Solving patients’ problems. Robot automation. Algorithmic Trading Image recognition Repetitive tasks Market analysis & data Learning without training mining Patterns analysis in patient’s records Portfolio management 2024 - Managing Change & Digital Transformation 34 AI Use Cases in organizations (examples) AI for good Aviation Education Analyse Satellite Images Gate allocation for plane Companies are to identify which areas while landing creating robots to have the highest poverty Ticket price determination teach subjects level 2024 - Managing Change & Digital Transformation 35 Source: https://www.youtube.com/ watch?v=5QHqz3B6tuY 36 2024 - Managing Change & Digital Transformation 37 The Dark Side of AI 2024 - Managing Change & Digital Transformation 41 The Dark Side of AI Source: https://www.theverge.com/2016/3/24/11297050 /tay-microsoft-chatbot-racist https://www.businessnewsdaily.com/ 10450-funniest-chatbot-fails.html 2024 - Managing Change & Digital Transformation 42 What is Generative AI? 2024 - Managing Change & Digital Transformation 43 44 An unprecedented speed of adoption 2024 - Managing Change & Digital Transformation 45 The education market is growing 2024 - Managing Change & Digital Transformation 46 The line between real and realistic is blurring Source: BBC, March 2023 Source: FT, Dec. 2023 2024 - Managing Change & Digital Transformation 47 How we arrived here 51 How we arrived here 52 How we arrived here 53 How we arrived here 54 How we arrived here 55 How we arrived here for your email, 56 How we arrived here 57 How we arrived here 58 How we arrived here 59 How can we exploit the GenAI capability? 2024 - Managing Change & Digital Transformation 61 Digital artefacts 2024 - Managing Change & Digital Transformation 62 Digital artefacts Source: Affaritaliani.it, credit: M. Flora. 2023 2024 - Managing Change & Digital Transformation 63 GenAI for coding 2024 - Managing Change & Digital Transformation 64 GenAI in research and writing 2024 - Managing Change & Digital Transformation 65 Social listening Source: HBR, 2023 Source: The Social Intelligence Lab 2024 - Managing Change & Digital Transformation 66 Efficiency in E-commerce: Ebay photo-to-listing 2024 - Managing Change & Digital Transformation Source: https://techcrunch.com/2023/09/0767  Efficiency in the pharma industry Source: https://www.weforum.org/agenda/2023/12/ai-pharmaceutical-industry-wef24/ Source: https://www.biorender.com/template/drug-discovery- development-funnel 2024 - Managing Change & Digital Transformation 68 Hello, I’m the Doctor 2024 - Managing Change & Digital Transformation 69 GPT for Contact Centers 2024 - Managing Change & Digital Transformation 70 Google Cloud rolls out new GenAI products for retailers Source: https://techcrunch.com/2024/01/11/ 71 GenAI with ‘character’ 73 GenAI and the Cultural Creative Industry Traditional visit to Van Gogh exhibition (2023) 2024 - Managing Change & Digital Transformation 74 GenAI and the Cultural Creative Industry 2024Source: https://www.nytimes.com/2023/12/12/arts/design/van-gogh-artificial-intelligence.html - Managing Change & Digital Transformation 75  GenAI and the Cultural Creative Industry Source: https://www.forbes.com/sites/lesliekatz /2023/12/14/vincent-van-goghs-ai-twin-wants-to- talk-with-you-about-life-and-death/ 2024 - Managing Change & Digital Transformation 76 A framework to analyse the benefits of GenAI 2024 - Managing Change & Digital Transformation 77 A process perspective on GenAI PROCESS Structured Emergent 79 A process perspective on GenAI PROCESS Structured Structured processes have well-defined inputs and outputs (starting and ending points), and the steps required to complete the process are known, occur in the same sequence each time, following a routine approach. The structure is coded through rules or practice. Goh & Pentland (2019). From actions to paths to patterning: Toward a dynamic theory of patterning in routines. Academy of Management Journal 80 A process perspective on GenAI PROCESS Structured Emergent Structured processes have well-defined inputs Emergent processes are non-routine business and outputs (starting and ending points), and the processes whose execution is guided by the steps required to complete the process are knowledge that emerges during a process known, occur in the same sequence each time, instance. following a routine approach. The structure is coded through rules or practice. Goh & Pentland (2019). From actions to paths to patterning: Toward a dynamic theory of patterning in routines. Academy of Management Journal 81 A process perspective on GenAI PROCESS Structured Emergent Logo generation Brainstorming ideas Report generation Data analysis (based on no pre-defined Text editing and formatting criteria) Data entry Product design Low complex coding activity Art work 82 A process perspective on GenAI EFFICIENCY ACCURACY PROCESS Structured Emergent GenAI automates repetitive tasks, reducing human workload and associated costs. Accuracy and consistency are also improved by removing human error. 83 A process perspective on GenAI FLEXIBILITY EFFICIENCY INNOVATION ACCURACY PROCESS Structured Emergent GenAI automates repetitive tasks, reducing human GenAI can explore vast creative spaces or complex data workload and associated costs. Accuracy and consistency sets, identifying new possibilities and solutions that might are also improved by removing human error. not be readily apparent to humans. IT fosters innovation and allows for a more flexible approach to problem-solving. 84 A process perspective on GenAI TARGET Marketing copywriting External: Product Web customization Automatic generation of product descriptions for e-commerce catalogue Customised marketing posts for different targets Product recommendations Financial reporting Meeting notes Personalised training material Internal: Supportive 85 A process perspective on GenAI TARGET GenAI can personalise ENHANCED content and experiences for External: Product CUSTOMER customers, improve marketing effectiveness, and EXPERIENCE help develop innovative new products or services. Internal: Supportive 86 A process perspective on GenAI TARGET GenAI can personalise ENHANCED content and experiences for External: Product CUSTOMER customers, improve marketing effectiveness, and EXPERIENCE help develop innovative new products or services. GenAI streamlines internal workflows, facilitates IMPROVED communication and knowledge INTERNAL Internal: Supportive sharing, and empowers employees OPERATIONS to make data-driven decisions. 87 A process perspective on GenAI AI-created design TARGET Customer experience personalisation Product PROCESS Structured The future of contact centers Emergent Supportive Efficiency in e-commerce processes Extract and analyze call center data by using Azure 88 OpenAI Service, Speech Week 5: Drivers of Digital Transformation Fabrizio Amarilli [email protected] 2024 - Managing Change & Digital Transformation 89