How artificial intelligence is transforming the world

Most people are not very familiar with the concept of artificial intelligence (AI). As an illustration, when 1,500 senior business leaders in the United States in 2017 were asked about AI, only 17 percent said they were familiar with it. A number of them were not sure what it was or how it would affect their particular companies. They understood there was considerable potential for altering business processes, but were not clear how AI could be deployed within their own organizations.

Encourage greater data access for researchers without compromising users’ personal privacy,

invest more government funding in unclassified AI research,

promote new models of digital education and AI workforce development so employees have the skills needed in the 21st-century economy,

create a federal AI advisory committee to make policy recommendations,

engage with state and local officials so they enact effective policies,

regulate broad AI principles rather than specific algorithms,

take bias complaints seriously so AI does not replicate historic injustice, unfairness, or discrimination in data or algorithms,

maintain mechanisms for human oversight and control, and

penalize malicious AI behavior and promote cybersecurity.

QUALITIES OF ARTIFICIAL INTELLIGENCE

Although there is no uniformly agreed upon definition, AI generally is thought to refer to “machines that respond to stimulation consistent with traditional responses from humans, given the human capacity for contemplation, judgment and intention.”

Intentionally

Artificial intelligence algorithms are designed to make decisions, often using real-time data. They are unlike passive machines that are capable only of mechanical or predetermined responses. Using sensors, digital data, or remote inputs, they combine information from a variety of different sources, analyse the material instantly, and act on the insights derived from those data. With massive improvements in storage systems, processing speeds, and analytic techniques, they are capable of tremendous sophistication in analysis and decision-making.

Intelligence

AI generally is undertaken in conjunction with machine learning and data analytics. Machine learning takes data and looks for underlying trends. If it spots something that is relevant for a practical problem, software designers can take that knowledge and use it to analyze specific issues. All that is required are data that are sufficiently robust that algorithms can discern useful patterns. Data can come in the form of digital information, satellite imagery, visual information, text, or unstructured data.

Adaptability

AI systems have the ability to learn and adapt as they make decisions. In the transportation area, for example, semi-autonomous vehicles have tools that let drivers and vehicles know about upcoming congestion, potholes, highway construction, or other possible traffic impediments. Vehicles can take advantage of the experience of other vehicles on the road, without human involvement, and the entire corpus of their achieved “experience” is immediately and fully transferable to other similarly configured vehicles. Their advanced algorithms, sensors, and cameras incorporate experience in current operations, and use dashboards and visual displays to present information in real time so human drivers are able to make sense of ongoing traffic and vehicular conditions. And in the case of fully autonomous vehicles, advanced systems can completely control the car or truck, and make all the navigational decisions.

APPLICATIONS IN DIVERSE SECTORS

AI is not a futuristic vision, but rather something that is here today and being integrated with and deployed into a variety of sectors. This includes fields such as finance, national security, health care, criminal justice, transportation, and smart cities. There are numerous examples where AI already is making an impact on the world and augmenting human capabilities in significant ways.

One of the reasons for the growing role of AI is the tremendous opportunities for economic development that it presents. A project undertaken by Price Waterhouse  Coopers estimated that “artificial intelligence technologies could increase global GDP by $15.7 trillion, a full 14%, by 2030.” That includes advances of $7 trillion in China, $3.7 trillion in North America, $1.8 trillion in Northern Europe, $1.2 trillion for Africa and Oceania, $0.9 trillion in the rest of Asia outside of China, $0.7 trillion in Southern Europe, and $0.5 trillion in Latin America. China is making rapid strides because it has set a national goal of investing $150 billion in AI and becoming the global leader in this area by 2030.

Finance

Investments in financial AI in the United States tripled between 2013 and 2014 to a total of $12.2 billion. According to observers in that sector, “Decisions about loans are now being made by software that can take into account a variety of finely parsed data about a borrower, rather than just a credit score and a background check. “In addition, there are so-called robo-advisers that “create personalized investment portfolios, obviating the need for stockbrokers and financial advisers. “These advances are designed to take the emotion out of investing and undertake decisions based on analytical considerations, and make these choices in a matter of minutes.

Fraud detection represents another way AI is helpful in financial systems. It sometimes is difficult to discern fraudulent activities in large organizations, but AI can identify abnormalities, outliers, or deviant cases requiring additional investigation. That helps managers find problems early in the cycle, before they reach dangerous levels.

Health Care

AI tools are helping designers improve computational sophistication in health care. For example, Merantix is a German company that applies deep learning to medical issues. It has an application in medical imaging that “detects lymph nodes in the human body in Computer Tomography (CT) images.”[According to its developers, the key is labelling the nodes and identifying small lesions or growths that could be problematic. Humans can do this, but radiologists charge $100 per hour and may be able to carefully read only four images an hour. If there were 10,000 images, the cost of this process would be $250,000, which is prohibitively expensive if done by humans.

What deep learning can do in this situation is train computers on data sets to learn what a normal-looking versus an irregular-appearing lymph node is. After doing that through imaging exercises and honing the accuracy of the labelling, radiological imaging specialists can apply this knowledge to actual patients and determine the extent to which someone is at risk of cancerous lymph nodes. Since only a few are likely to test positive, it is a matter of identifying the unhealthy versus healthy node.

Transportation

Transportation represents an area where AI and machine learning are producing major innovations.

Autonomous vehicles—cars, trucks, buses, and drone delivery systems—use advanced technological capabilities. Those features include automated vehicle guidance and braking, lane-changing systems, the use of cameras and sensors for collision avoidance, the use of AI to analyze information in real time, and the use of high-performance computing and deep learning systems to adapt to new circumstances through detailed maps.

Light detection and ranging systems (LIDARs) and AI are key to navigation and collision avoidance. LIDAR systems combine light and radar instruments. They are mounted on the top of vehicles that use imaging in a 360-degree environment from a radar and light beams to measure the speed and distance of surrounding objects. Along with sensors placed on the front, sides, and back of the vehicle, these instruments provide information that keeps fast-moving cars and trucks in their own lane, helps them avoid other vehicles, applies brakes and steering when needed, and does so instantly so as to avoid accidents.

Smart Cities

The Cincinnati Fire Department is using data analytics to optimize medical emergency responses. The new analytics system recommends to the dispatcher an appropriate response to a medical emergency call—whether a patient can be treated on-site or needs to be taken to the hospital—by taking into account several factors, such as the type of call, location, weather, and similar calls.

Since it fields 80,000 requests each year, Cincinnati officials are deploying this technology to prioritize responses and determine the best ways to handle emergencies. They see AI as a way to deal with large volumes of data and figure out efficient ways of responding to public requests. Rather than address service issues in an ad hoc manner, authorities are trying to be proactive in how they provide urban services.

Cincinnati is not alone. A number of metropolitan areas are adopting smart city applications that use AI to improve service delivery, environmental planning, resource management, energy utilization, and crime prevention, among other things. For its smart cities index, the magazine Fast Company ranked American locales and found Seattle, Boston, San Francisco, Washington, D.C., and New York City as the top adopters. Seattle, for example, has embraced sustainability and is using AI to manage energy usage and resource management. Boston has launched a “City Hall To Go” that makes sure underserved communities receive needed public services. It also has deployed “cameras and inductive loops to manage traffic and acoustic sensors to identify gun shots.” San Francisco has certified 203 buildings as meeting LEED sustainability standards.

POLICY, REGULATORY, AND ETHICAL ISSUES

These examples from a variety of sectors demonstrate how AI is transforming many walks of human existence. The increasing penetration of AI and autonomous devices into many aspects of life is altering basic operations and decision-making within organizations, and improving efficiency and response times.

Biases in data and algorithms

In some instances, certain AI systems are thought to have enabled discriminatory or biased practices. For example, Airbnb has been accused of having homeowners on its platform who discriminate against racial minorities. A research project undertaken by the Harvard Business School found that “Airbnb users with distinctly African American names were roughly 16 percent less likely to be accepted as guests than those with distinctly white names.”

Racial issues also come up with facial recognition software. Most such systems operate by comparing a person’s face to a range of faces in a large database. As pointed out by Joy Buolamwini of the Algorithmic Justice League, “If your facial recognition data contains mostly Caucasian faces, that’s what your program will learn to recognize.” Unless the databases have access to diverse data, these programs perform poorly when attempting to recognize African-American or Asian-American features.

AI ethics and transparency

Algorithms embed ethical considerations and value choices into program decisions. As such, these systems raise questions concerning the criteria used in automated decision making. Some people want to have a better understanding of how algorithms function and what choices are being made.

In the United States, many urban schools use algorithms for enrollment decisions based on a variety of considerations, such as parent preferences, neighborhood qualities, income level, and demographic background. According to Brookings researcher Jon Valant, the New Orleans–based Bricolage Academy “gives priority to economically disadvantaged applicants for up to 33 percent of available seats. In practice, though, most cities have opted for categories that prioritize siblings of current students, children of school employees, and families that live in school’s broad geographic area.” Enrolment choices can be expected to be very different when considerations of this sort come into play.