The Promise of AI is in Assistive Intelligence

This is a contributed piece by Francois Ajenstat, chief product officer at Tableau Software and has been written in response to a recent piece by our senior staff writer, Dan Swinhoe

As artificial intelligence surges to the forefront of modern society, research and debate swirls around the power and role it should play. More often than not, a cloud of skepticism looms over the topic of security of jobs in the workforce. However, if we consider AI as assistive intelligence rather than an asteroid on a collision course, humans can take advantage of the opportunities presented through its advancement. With this approach, humans enhance, rather than replace skills, leading to increased benefit from technology and improvements in quality of life.
Applications of AI have the ability to empower workers and increase efficiencies across industries and every aspect of the supply chain. To put this into perspective, a recent study from PwC argues that machines will “increase productivity by up to 14.3% by 2030” and the UK’s GDP could be up to 10.3% higher in 2030, equivalent to an additional £232bn ($307bn).

Yet the advantages of AI are not exclusive to a macroeconomic level. Benefits also extend to the individual level by fundamentally changing employee responsibilities. Workers are liberated from daily mundane and menial tasks to explore a higher level of thinking and creativity, ultimately expanding their job roles. Of course, this in turn will translate into positives for their employers as a more engaged workforce leads to increased sales, productivity and employee retention.

In fact, a recent Deloitte Insights study of workers in the public sector showed that many tasks could actually be handled through automation. The study found that documenting and recording information is the most time-consuming for employees, sucking 10% of work hours, which could be saved using technology like AI.

However, AI is not a replacement for tasks simply because they are time-consuming. The same Deloitte study concludes that tasks, like caring for patients, simply cannot be replaced by AI. For example, cognitive technologies cannot assess a patient’s mood or administer medicine, and therefore are not advanced enough to replace the role of workers carrying out such responsibilities. Currently, the reach of AI extends only to enabling human workers with more of the time and resources needed to provide exceptional patient care. Ultimately, AI compliments human intelligence, enabling workers to focus on tasks that require insights and experience beyond what goes into an algorithm.

This brings us to the fact that true business value comes from the capitalisation of uniquely human skills. Individuals fluent in the language of data are already in high demand across the corporate world. While machine learning backed algorithms and AI assist decision makers in accessing and analysing relevant data, some tasks are abstract or situational and require an amount of intuition and experience to make the best decisions. Humans are uniquely qualified to ensure the encoded assumptions are reasonable and then to ask meaningful follow-up questions that link answers back to business problems.

While AI can find unexpected outliers and identify patterns within the data, human analysis plays a vital role in gathering useful insights from what they find on the screen. This is especially true when those problems lie in industries such as marketing, where success is often related to one’s ability to make a personal connection between brands and consumers – human to human. AI can be used to sort through data and identify a target audience, but only humans have the emotional intelligence to create a story that will resonate with the right audiences and deliver results.

Just as any mammal adapts to a change in its environment, so too will the human race. Machines have yet to match humans in regards to solving contextual business problems with big data. They lack the ability to draw from personal experience, context, emotion and the ingenuity required to go that next step. Exploring this scope is therefore paramount in acquiring job security and increasing workers’ purpose.

The debate surrounding AI will only intensify with its continued expansion. As with any groundbreaking development, the fear of disrupting the status quo is unavoidable. However, disruption does not have to equal destruction.
What matters is how we respond and find new ways to thrive alongside technology.

Property Investment Market Continuing to Hit New Heights in Hong Kong

According to a report by JLL’s latest Property Market Monitor, the property investment market in Hong is continuously hitting new heights since last year, which is also riding on strong global investor interest.

A total of four en-bloc office buildings were sold for a total consideration of HKD 14.8 billion in 2018, which is about 17% higher than last year.

The en-bloc sale of 18 King Wah Road drew the most attention, setting a new record for the largest office transaction in Hong Kong East.

Decentralization remained as a key theme playing out among office tenants in the leasing market. The spotlight and the focus of leasing activity was on Hong Kong East and Kowloon East. Here tenant decentralization and consolidation requirements underpinned demand. Net take-up in the overall market amounted to 209,900 sq. ft till date. The net absorption in Central reached 33,000 sq. ft. as diverse tenants requested room for expansion.

“The broadening gap between rents in Central and emerging core business districts will add momentum to decentralization. We expect Hong Kong’s Grade A office market rentals to continue to trend higher, rising by up to 5% in 2018, with the support of the outbound growth of Mainland Chinese companies. Central will continue to outperform the overall market as demand competes for the pockets of space that exist,” reports Alex Barnes, Head of Markets at JLL.

On the back of a tightened vacancy environment, office rents in Central advanced by 0.7% m-o-m in January. There was a rise in rents in Hong Kong East region by 0.8% m-o-m, driven largely by increasing demand at the top-end of the market.

“The strong pricing achieved in the government sale of the Murray Road Car Park in May last year is now starting to permeate through the broader office market as investors reset benchmarks.  With local money also flowing into the market, the record high prices being set in the market are no longer relying solely on PRC buyers. We expect capital values to rise a further 5-10% in 2018 even with interest rates set to rise further,” asserted Denis Ma, Head of Research at JLL.

The sentiment remained upbeat buttressed by record high land sale for government sites in Kowloon as well as strong gains in the local stock market, in the city’s residential market. The mass residential properties’ capital values raised up by 0.9% m-o-m in the first month of 2018 following to an increase of 1.3% m-o-m the previous month.

Next Generation CIOs to Create Paths of Success

This is a contributed piece by Adam Spearing, Senior Vice President, EMEA of Platform and Communities at Salesforce

The role of the CIO has changed immeasurably since I started working in tech some 20 years ago. The IT department is no longer here to ‘keep the lights on.’ Instead, the CIO is now Innovator in Chief, disruptor extraordinaire, and driver of change.

This shift is down to the rapid change in the way tech is perceived in many organizations and the demands from a generation used to the mobile consumer experience —  it has become a core enabler to the business, rather than a nice to have. What’s more, with breakthrough capabilities enabled by new technologies such as AI and big data, a growing shortage of available developers, and an increasingly tech-savvy business user, the role of IT — and the CIO in particular — is morphing into one of strategic advisor to the business and driver of innovation within the company.

But how can IT leaders manage this digital transition and take advantage of rapidly emerging opportunities? Discussing this question with customers, colleagues, and partners, I’ve come to the conclusion that there are three things IT leaders need to do to thrive in this new environment.

Take a business-first IT mindset
The rise of the next-gen CIO and their success can be put down to a number of factors, but one of the biggest is ensuring the IT function is commercially oriented. Today’s most successful CIOs are setting up their departments as profit, rather than cost, centers. CIOs must have a greater understanding of the business case for any new programme or tech-focused initiative. Only by understanding the wider business strategy and objectives can CIOs understand how to prioritize IT projects that best serve the customer and grow the business. It’s therefore a key part of the CIO’s role to ensure IT is involved in all decision-making processes and to establish themselves as a partner within the business.

Ocado’s CTO Paul Clarke is a case in point. When it comes to instilling long-term change, Paul sees the mission for his division, Ocado Technology, as fueling innovation and entrepreneurial spirit throughout the business. This ensures that technology decisions and initiatives are powering the commercial and strategic needs of the company.

Unlock data to innovate
Technological change is also forcing large companies to find new ways of working. Shell, for example, is facing market disruption from new types of competitors, which are changing the way the market trades and buys fuel. The company can’t afford to stand still and watch the world change around it.
As a CIO, one way to discover new ways of working is to unlock the data sitting within the business and turn that ever-growing pile of data into opportunity. Embracing a cloud-based system of engagement is no longer just about delivering a 360-degree view of the customer. It also enables end users to slice and dice customer data for actionable insights that help them see opportunities for new ways of working such as building apps to help run the business.

In the case of Shell, the team is using data analytics, big data and artificial intelligence to make better decisions internally. For example AI is being used in the analysis of the huge volumes of information created in the day-to-day running of Shell’s plants, helping the company to become more profitable.
Shell also uses AI to improve the customer experience and to keep ahead of the competition. For example the Shell Connected Car Open API can analyze user behavior and offer customers tailored convenience and loyalty rewards. The platform helps Shell predict what a customer might want so that when they arrive at one of their retail sites they can immediately send an offer to their phone such as a discount on food and drink.

Focus on the customer and employee experience
It’s not just businesses looking for fresh ways of working. Customers too are looking for innovative ways to make their lives easier. Our recent State of IT report shows customers are not simply looking for differentiation — they seek disruption. And they’re giving their loyalty (and business) to companies that are looking at new ways to do things that make their lives easier – whether it’s booking a place to stay with Airbnb or ordering tonight’s dinner via Deliveroo.

Technology has also changed what customers expect from the brands and companies they interact with. An overwhelming 70% said technology has made it easier for them to take their business elsewhere and a further 58% agree it has ‘significantly changed’ their expectations of how companies should interact with them. CIOs therefore need to focus on deploying new workflows and technologies that help their business deliver a convenient — and disruptive — experience to customers.

CIOs today should also look at applying these same principles to their employees. After all, it is employees who serve on the front lines of customer service, act as brand ambassadors, and are ultimately responsible for the organization’s success.

It’s clear that it has never been a more exciting or daunting time to be a CIO. The reason? Well, with IT leading the business, CIOs are under the spotlight like never before. At the same time the speed of business is also increasing. To quote Shell’s VP & Global CIO, Craig Walker: “Make a decision in the 1990s and it wouldn’t be wrong for eight years. Now, it could be eight weeks.”

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