Responsible AI and the Future of Customer Engagement. Peter van der Putten, Director Decisioning Solutions WW,Pegasystems

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Responsible AI and the Future of Customer Engagement Peter van der Putten, Director Decisioning Solutions WW,Pegasystems

Photo: from movie I Robot, 2004

Accuracy Model Performance Number of analyzed Likes Source: Private traits and attributes are predictable from digital records of human behavior, Michal Kosinskia, David Stillwella, and Thore Graepel

Single vs. In Relationship 0,67 Satisfaction with Life 0,44 Parents together at 21 0,6 Intelligence 0,78 Smokes Cigarettes 0,73 Emotional Stability 0,68 Drinks Alcohol 0,7 Agreeableness 0,62 Uses Drugs 0,65 Extraversion 0,75 Caucasian vs. African American 0,95 Conscientiousness 0,7 Christianity vs. Islam 0,82 Openness 0,55 Democrat vs. Republican 0,85 Gay 0,88 Density of friendship network 0,53 Lesbian 0,75 Number of Facebook Friends 0,47 Gender 0,93 Age 0,75 0 0,25 0,5 0,75 1 0 0,25 0,5 0,75 1

https://www.pega.com/ai-survey

8

Imaginary Housekeeping Robot Roll-Oh, 1940 (Cybernetic Zoo)

10

McCulloch & Pitts, 1944

Let an ultraintelligent machine be defined as a machine that can far surpass all the intellectual activities of any man however clever. Since the design of machines is one of these intellectual activities, an ultraintelligent machine could design even better machines; there would then unquestionably be an intelligence explosion, and the intelligence of man would be left far behind. Thus the first ultraintelligent machine is the last invention that man need ever make, provided that the machine is docile enough to tell us how to keep it under control I.J. Good, "Speculations Concerning the First Ultraintelligent Machine", Advances in Computers, vol. 6, 1965 12

00 Month 0000 Footer (Edit footer for all slides with View > Header & Footer) 14

Bob Ross 1942-1995

Source: Alexander Reben, Deeply Artificial Trees, 2017

OPAQUE TRANSPARENT AI AI

Proposition Success Rate Model Performance (AUC)

RoboAction A1 K1, Dragan Ilić, 2016

ROGUE AI TRUSTABLE AI

F E A S I B L E O p e r a t i o n a l l y E x e c u t a b l e ROGUE TRUSTABLE AI AI R E L E V A N T C u s t o m e r D e s i r a b l e N e x t B e s t A c t i o n V A L U A B L E E c o n o m i c a l l y V i a b l e R E L I A B L E B r a n d I d e n t i f i a b l e Courtesy Karen Larrimer, Chief Customer Officer, PNC Bank

Context Always-On Brain Action

MACHINE REASONING - RULES MACHINE LEARNING - MODELS

ROGUE TRUSTABLE AI AI

Forrester TechRadar AI Report, 2017 Top 10 Hot AI Technologies AI-Optimized Hardware Decision Management Machine Learning Platforms Text Analytics & NLP Virtual Agents Speech Recognition Robotic Process Automation Image & Video Analysis Swarm Intelligence Natural Language Generation Biometrics Deep Learning Platforms Semantic Technology

Helping Royal Bank of Scotland to become more human I believe that with how we use data and decisioning, we can truly get back to the way banking was done in the 1970 s Every time we re talking to you, it's about what's right for you, based on everything we know about you. - Christian Nelissen The Data Guy, Head of Analytics, RBS 18 Channels 4 Billion Customer Interactions Per Year 35% Less Impressions (Waste) 6X Increase In Response Rate 8X Increase In Credit Card Applications 20% Improvement In Balance Retention 18 Point Increase In NPS 10-1Return On Investment XXXM Pounds business case 15 August 2017 29

British Airways When customers have a high quality experience in one area, do you expect they won t notice something completely different in another? Pega Marketing has given us the scale, agility, and relevance to manage truly joined-up, omnichannel conversations with customers. Rod Thorne Customer Decisioning Manager, British Airways British Airways uses Pega Marketing to centralized decisioning across channels, including Centralization of Inbound & Outbound Channels Email, Mobile, Website, Call-Center, and Agents Integrated Within Same Platform Personalization for 50M+ Customers New Offers & Actions Deployed Weekly 15 August 2017

General Motors At every key-turn, we have an opportunity to improve the Customer Experience Pega is helping us decision over a million times an hour, and we only expect that to grow. - Dave Mingle Global Customer Experience Execution, GM GM has over 12 million connected vehicles on the road 3 times the rest of the industry, combined. Pega s Customer Decision Hub AI provides Next Best Action decisions that integrate the vehicle, mobile apps, callcenter advisors, owner websites, and outbound channels like email & SMS. Customer Decisioning Across 10+ Channels 1 Million Next Best Action Decisions / Hour 5 Billion Next Best Action Decisions / Year 3 Million Active Mobile Users Top Ranking for Sales & Service Satisfaction 15 August 2017 31

Your first step Customers First - Think how AI will benefit your customers Think Big End Game should be One Customer Brain for all channels across marketing, sales and service Start Small Pick first channel(s), business issue, main segment Evolve Quickly New channels, issues, segments every n months

Real Time AI

Real Time AI Real AI

Real Time AI Real AI Responsible AI

Real Time AI Real AI Responsible AI Transparant & Trusted

Responsible AI Has landed. Take us to your leader. Peter van der Putten, peter.vanderputten@pega.com