Artificial Intelligence in distribution

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1 Artificial Intelligence in distribution (an oxymoron?) Sergi Mesquida etravel Lab Feb 2018

2

3 In situations where an accident is unavoidable, we expect a decision from the autonomous car. How artificial intelligence changes our lives is something that depends on all of us.. Rupert Stadler, CEO Audi

4 People don't like banking, it's boring, it takes time, causes them stress, and people have bad financial habits "We can leverage data and AI to provide people with peace of mind..it's almost like a self-driving bank experience." Carlos Torres Vila, CEO Banco Bilbao Vizcaya Argentaria

5 First the machines will do A LOT of jobs for us and not be super intelligent A few decades after that, though, the intelligence is strong enough to be a concern. Humans should be worried about the threat posed by AI Bill Gates The development of full AI could spell the end of the Human Race Stephen Hawking

6 The horse is here to stay but the automobile is only a novelty a fad. President of the Michigan Savings Bank advising Henry Ford s lawyer, Horace Rackham, not to invest in the Ford Motor Company. A rocket will never be able to leave the Earth s atmosphere New York Times. The world potential market for copying machines is 5,000 at most. IBM told the eventual founders of Xerox

7 No one will need more than 637KB of memory for a personal computer. 640KB ought to be enough for anybody Bill Gates, co-founder and chairman of Microsoft. We will never make a 32-bit operating system Bill Gates, co-founder and chairman of Microsoft. There's just not that many videos I want to watch. Steve Chen, CTO and co-founder of YouTube expressing concerns about his company s long term viability. There s no chance that the iphone is going to get any significant market share Steve Ballmer, Microsoft CEO.

8 Big Four General-Purpose Technologies that CEOs Are Starting to Appreciate. What level of business change do you believe the following technologies will bring to your industry over the next 5 years? Major Major Major 24% 29% Major 17% 18% 7% AI 13% IoT 20% 3D Printing 9% Transformational Blockchain Transformational Transformational Transformational Note: Percentages may not add up to 100% because of rounding. n = 388, CEOs and Sr. Business Executives

9 1 What is AI? INDEX 2 Why Now? 3 Where are we today? 4 How to start?

10 1 What is AI?

11 Just Automation Is Not AI, No Matter If It "Feels" Human

12 The Smart Machine Age AI learn and adapt to classify and predict faster, more variously and in greater volume than humans can without AI.

13

14 2 Why now?

15 Robust AI Speech2Text (& back) NLP Image processing Knowledge recovery Human-like capabilities

16 Deep Learning Neural Networks Convolutional Recurrent Generative Adversarial Reinforcement Learning

17 But, isn t it here yet???? BEFORE WE TRAVEL recommendations

18 But, isn t it here yet???? WHILE WE TRAVEL recommendations

19 But, isn t it here yet???? AFTER WE TRAVEL recommendations

20

21 3 Where are we today?

22 Types of AI Projects today 1 Robotics & cognitive Automation 2 Cognitive Insight 3 Cognitive engagement

23 What business goals are organizations pursuing with AI? PROCESS AUTOMATION COGNITIVE INSIGHT COGNITIVE ENGAGEMENT Improved speed and efficiency Better data learning processing and analytics Enhance customer experience and engagement "Process improvement and efficiency ensuring staff are better utilized on value-add processes." "Reduce operating costs and increase operating efficiencies." "Use AI for predictive analytics and handling huge amount of event logs and tickets we have to process on a daily basis." "Leveraging the treasure trove of unstructured data for analysis and future efficiencies." "Customer care and service desk optimization." "New customer services or significantly enhance process effectiveness/value/cost savings." Source: HBR (AI in Real World Jan 2018 Study)

24 OPERATIONAL EFFICIENCY CUSTOMER EXPERIENCE PROCESS AUTOMATION COGNITIVE INSIGHT COGNITIVE ENGAGEMENT Automated Reconciliation of Invoices. Automated loading of Contracts. Work with hotels for Automated replacement of loyalty cards (in design). Automated reading legal and contractual documents to extract provisions using natural language processing. Detect Fraudulent transactions. Personalized targeting of ads. Identify Potential configuration errors in hotel Inventory. Analyze and predict Tickets in IT Service Desk & Optimize software factory to solve them. Recommendations of activities to travel agents. Suggest the best contract (in design). Predict demand and improve contracting (in design). Predict error rates in Third Party suppliers and reduce them beforehand.

25 WTF?

26 AI in Travel CUSTOMER EXPERIENCE

27 AI in Travel CUSTOMER EXPERIENCE

28 AI in Travel OPERATIONAL EFFICIENCY

29 4 How to start?

30 INVESTIGATING Most companies are Just Browsing What is the current stage of artificial intelligence (AI) solutions adoption within your organization? 59% 25% 6% 6% 4% Knowledge gathering/ investigating/ developing strategy Piloting Implementing Deployed/ In use today A further 4% have plans to deploy by 2018 Source: Gartner 2017 Base: n = 83 Gartner Research Circle Members S02: What is the current stage of artificial intelligence (AI) solutions adoption within your organization? USING

31 Scaling UP o Get users buy in o Adapt your process 4 SIMPLE STEPS Launch PILOTS o Bus Process redesign Creating A PORTFOLIO OF PROJECTS o Identify Opportunities o Determine Use cases o Select the Technology Understanding THE TECHNOLOGIES o Understand what is good for what o How long does it take o IT or Innovation group

32 Bring the human in!!

33 It s not AI vs Humans

34 RE-CAP AI is about machines Learning & Adapting through use of Big Data AI is exploding thanks to Deep Learning You can use it for Operational Efficiencies & Enhance UX You should start by 1. Understanding it 2. Creating Use Cases 3. Launching some pilots (& redesign your processes) 4. Scaling up those pilots

35 Thank

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