What’s your guess about the impact that AI will have this decade on businesses?
What’s your guess about the impact that AI will have this decade on businesses? Well, McKinsey says “that AI will reach human level in 2030” and the Harvard Business Review (HBR) article about "Competing In The Age of AI" explains four key points of this development.
HBR key points are:
Four components are essential to every factory. The first is the data pipeline, the semiautomated process that gathers, cleans, integrates, and safeguards data in a systematic, sustainable, and scalable way. The second is algorithms, which generate predictions about future states or actions of the business. The third is an experimentation platform, on which hypotheses regarding new algorithms are tested to ensure that their suggestions are having the intended effect. The fourth is infrastructure, the systems that embed this process in software and connect it to internal and external users.
Strong key insight from the article is:
Unlike traditional banks, investment institutions, and insurance companies, Ant Financial is built on a digital core. There are no workers in its “critical path” of operating activities. AI runs the show. There is no manager approving loans, no employee providing financial advice, no representative authorizing consumer medical expenses. And without the operating constraints that limit traditional firms, Ant Financial can compete in unprecedented ways and achieve unbridled growth and impact across a variety of industries.
This may be the impact on every industry including stodgy and older ones such es the banking and insurance sector.
But there are some at least two facts that are of great challenge for innovators.
First, it is critical to have enough data to build and test any new minimum-viable-model. And even if there is enough data in hand models need a certain adaption time to outperform the status quo.
Secondly, internal politics, owners and shareholders must be patient and willing to believe that AI maybe better than nowadays solution even if a success is not predictable.
Management theory and corporate strategy are going to be entirely upended in the new world. It's an exciting opportunity for those who find the solutions to make it work.
If you are as excited as we are about AIaaS in M&A/Banking and to disruption the M&A insurance market get in touch with us or signup for free and let's work together!
If you are as excited as we are about to disrupt the M&A insurances market follow our story!
The Team of Seal Deal