Below you will find the key points that I covered during the panel discussion at the Financial Times conference on the AI topic on 2nd October in London. It was an interesting discussion with Yann Barbaux, Airbus Chief, Innovation Officer, and Rachel Braun, Business Development Director of the Paramount Group (the biggest private military company in South Africa that applies AI for defence and peace keeping purposes).
1) Despite spurring a lot of hype, AI will not replace managers or board members but would rather enhance their effectiveness.
2) Chimera blend between human collective intelligence and machine intelligence will lead to evolutionary leapfrog and Cambrian explosion which will result in the rise of smart corporations.
The companies that will leverage AI decision-making systems for corporate governance will have a higher corporate IQ. The collective corporate IQ level will be the major factor and indicator of success in the industry of Smart corporations.
3) Traditional corporations without AI augmentation will soon be lagging behind.
This trend will create a strategic competitive advantage for more innovative companies while washing out traditional corporations that do not adapt. At some point in time, the smartest companies that keep up with the most recent technological advancements will easily dominate the business landscape.
4) Robots will not replace humans, and Smart corporations will not roboticize all their structures, they will rather misplace the outdated corporations from the competitive business landscape.
5) The history for the last three hundred years provides us with clear evidence regarding technological revolution which hasn’t led to the mass unemployment, but rather assisted in ensuring economic prosperity and jobs creation, freeing people from hard manual work and routine and letting them focus on more creative tasks.
1) Nowadays, we have a human analyst pouring over numbers, but this analyst may be co-opted by the company’s management as happened with Enron and Arthur Anderson, for example.
Replace with: Nowadays, we have a big number of human analysts that may be co-opted by the company’s management, as it happened with Enron and Arthur Anderson, for example.
AI will significantly democratize corporate analytics and accounting sectors, as well as, bring unprecedented transparency to the business world.
This will keep executives equitable and will also improve the efficiency of capital markets globally.
2) Increased transparency will create more room for visionary managers instead of financial engineers.
Shareholders will use AI to make corporations work better by using real-time analysis and high frequency reports, rather than typical quarterly or annual reports, in their decision-making processes. This will give up-to-date information, possibility and tools to correct mistakes before they occur. Thus, drastically improving the efficiency in the daily tasks.
3) Corporate accounting will need to be machine-readable and also standardized as a part of GAAP accounting. AI will analyse the data for the issues and, then, major inconsistencies will be detected more easily.
Auditing will be transformed into the IT industry. The companies and the investors will rely on the predictive models suggesting success or failure based on the objective unbiased data.
1) Couple weeks ago, a big conference on the topic of AI took place in Washington were the leading experts on artificial intelligence technology were gathered.
The conference coincided with the Whitehouse Report called “Preparing for the Future of Artificial Intelligence.”
2) President Obama gave a speech at the conference on the priorities of the US strategy, stating that the next eight years will be focused on transforming the economy with AI. What Obama really said was that AI will become a matter of national security. He stressed the focus on the AI technologies that would advance the next generation of IT-technologies such as the blockchain.
WHAT ARE WE WORKING ON NOW?
The pace of the progress in the Data Science is so high that what was revolutionary one year ago becomes obsolete the next.
Now we are creating an absolutely new type of a predictive analysis platform which will combine machine learning algorithms and blockchain technology tools. It will be a decentralized, open-source system for independent and unbiased evaluations of tech startups. The platform will incentivize skilled scientists and business analysts to investigate companies, projects and technologies by using collective human intelligence and expertise in combination with different algorithms and approaches in the Data Science in order to create a sophisticated smart VC platform with a specific focus on the Ageing Science and Longevity.