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Jim Sterne eMetrics Summit Digital Analytics Association Artificial Intelligence for Marketing Getting Started Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Genetic Algorithm Covariance Kernels Gaussian Processes Hyperparameter Tuning Convex Gradient Methods Gradient Boosted Method Particle Swarm Intelligence Convolutional Neural Architecture Heterogeneous Configuration Models Spatio-Temporal Hierarchical Bayesian Optimization The Language Barrier
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics As Seen on TV “Strong AI” – thinks and acts human Sentience “Weak AI” – task specific Functional AI: Anything computers can’t SciFi: Anything AI can’t
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Why Machine Learning Now? 50 years of study Huge amount of data Specialize chipsets
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Software Grows Up Specific Logic Mathematical Model Do this, then this, then this Describe numerical relationships If this happens, do that Calculate alternatives If confused, report error Human compares results & iterates Statistical Model Artificial Intelligence Calculate probabilities Uses examples to figure it out Project likelihoods and changes it's mind Human compares & iterates
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Artificial Intelligence Natural Language Processing Computer Vision Conversation Bots Robots Machine Learning
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Artificial Intelligence Speech to text This means that Repeated correction Taught over time Contractions Accents Patois Wreck a nice beach Recognize speech Natural Language Processing
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Natural Language Processing Can I help you? Yes, I have a problem Oh? – one of the keys is broken Current Customer with my keyboard Hardware 1. Take it to a local store 2. Send it in for repair 3. Send it in for replacement FAQ How long? Loaner? Data back up? Warranty? Incoming: 805-403-4075 Customer service
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Natural Language Processing
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Artificial Intelligence Natural Language Speech to text This means that Repeated correction Taught over time Conversation Bots Text to meaning Concept & emotion imitation Repeated correction Taught over time
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Artificial Intelligence Natural Language Speech to text This means that Repeated correction Taught over time Conversation Bots Text to meaning Concept & emotion imitation Repeated correction Taught over time
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Artificial Intelligence Natural language Speech to text This means that Repeated correction Taught over time Conversation Bots Text to meaning Concept & emotion imitation Repeated correction Taught over time Vision Pattern discovery This means that Repeated correction Taught over time
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Facial Recognition
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Rules based This means that Repeated correction Is taught over time Pattern discovery This means that Repeated correction Learns over time Complex concept imitation Emotional intelligence imitation Repeated correction Is taught and learns over time Robots
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics In-Store Robots
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Artificial Intelligence Natural Language Processing - Call center Conversation Bots - Customer service Computer Vision - Social media Robots - In store Machine Learning - Everything else
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Detect Discover the most predictive attributes for a given outcome 01 Decide Infer rules from the data, weigh the attributes, and suggest a course of action 02 Revise Alter opinions about attributes and their weightings 03 Detect Discover the most predictive attributes for a given outcome 01 Decide Infer rules from the data, weigh the attributes, and suggest a course of action 02 Revise Alter opinions about attributes and their weightings 03 3 Needs for 3 Deeds of Machine Learning
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Detect Discover the most predictive attributes for a given outcome 01 Decide Infer rules from the data, weigh the attributes, and suggest a course of action 02 Develop Alter opinions about attributes and their weightings 03 Detect Discover the most predictive attributes for a given outcome 01 Decide Infer rules from the data, weigh the attributes, and suggest a course of action 02 Develop Alter opinions about attributes and their weightings 03Wind speed 3 Needs for 3 Deeds of Machine Learning Barometric pressure Temperature Hours of daylight Sunrise, sunset Rain? UV Index
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Detect Discover the most predictive attributes for a given outcome 01 Decide Infer rules from the data, weigh the attributes, and suggest a course of action 02 Develop Alter opinions about attributes and their weightings 03 Detect Discover the most predictive attributes for a given outcome 01 Decide Infer rules from the data, weigh the attributes, and suggest a course of action 02 Develop Alter opinions about attributes and their weightings 03 Wind speed 3 Needs for 3 Deeds of Machine Learning Barometric pressure Hours of daylight Sunrise, sunset Rain: UV Index Temperature
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Detect Discover the most predictive attributes for a given outcome 01 Decide Infer rules from the data, weigh the attributes, and suggest a course of action 02 Develop Alter opinions about attributes and their weightings 03 Detect Discover the most predictive attributes for a given outcome 01 Decide Infer rules from the data, weigh the attributes, and suggest a course of action 02 Develop Alter opinions about attributes and their weightings 03Day Part Gender Age Income Location Education Behavior Weather 3 Needs for 3 Deeds of Machine Learning
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Detect Discover the most predictive attributes for a given outcome 01 Decide Infer rules from the data, weigh the attributes, and suggest a course of action 02 Develop Alter opinions about attributes and their weightings 03 Detect Discover the most predictive attributes for a given outcome 01 Decide Infer rules from the data, weigh the attributes, and suggest a course of action 02 Develop Alter opinions about attributes and their weightings 03Day Part Gender Age Income Location Education Behavior Weather 3 Needs for 3 Deeds of Machine Learning
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Detect Discover the most predictive attributes for a given outcome 01 Decide Infer rules from the data, weigh the attributes, and suggest a course of action 02 Develop Alter opinions about attributes and their weightings 03 Detect Discover the most predictive attributes for a given outcome 01 Decide Infer rules from the data, weigh the attributes, and suggest a course of action 02 Develop Alter opinions about attributes and their weightings 03 GOAL: Conversion DATA: previous purchase search term pageviews time-on-item email opt in post code Y >1.5 * >5 Y Then send 15% off email 3 Needs for 3 Deeds of Machine Learning
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Detect Discover the most predictive attributes for a given outcome 01 Decide Infer rules from the data, weigh the attributes, and suggest a course of action 02 Revise Alter opinions about attributes and their weightings 03 Detect Discover the most predictive attributes for a given outcome 01 Decide Infer rules from the data, weigh the attributes, and suggest a course of action 02 Revise Alter opinions about attributes and their weightings 03 GOAL: Conversion DATA: previous purchase search term pageviews time-on-item email opt in post code Y >1.5 * >5 Y Then send 15% off email >2 >4 3 Needs for 3 Deeds of Machine Learning Control:
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Detect Discover the most predictive attributes for a given outcome 01 Decide Infer rules from the data, weigh the attributes, and suggest a course of action 02 Revise Alter opinions about attributes and their weightings 03 Detect Discover the most predictive attributes for a given outcome 01 Decide Infer rules from the data, weigh the attributes, and suggest a course of action 02 Revise Alter opinions about attributes and their weightings 03 Data Goal Control 3 Needs for 3 Deeds of Machine Learning
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics More data than a human can wrangle More attributes than a human can manage More permutations than a human can comprehend
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Classification Clustering Segmentation Gender M F Age A Age B Age C Man and Machinevs.
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Classification Clustering Segmentation Motorcycle Insurance Targeting Man and Machinevs.
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Testing A. Buy one get one free B. Two for the price of one A2.1.1 A2.1.2 15% Lift A2.1 A2.2 A B A1 A2 B1 B2 Man and Machinevs.
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Is there a pattern? Is there an anomaly? What can be omitted? What if we did it backwards? What if we changed the time scale? What if we look at it sideways? What additional data would be revealing? What if it had wheels? What would Chuck Norris do? What if this is the wrong problem? Man and Machine
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Testing A. Buy one get one free B. Two for the price of one A2.1.1 A2.1.2 15% Lift A2.1 A2.2 A B A1 A2 B1 B2 Man and Machine
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Learning Machine Learning What's it good at? How is it classified? How does it work?
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Learning Machine Learning High Dimensionality High Cardinality What's it good at?
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Dimensionality = Elements per Object dog bird grumpy keyboardLOL can haz cheeseburger? fish cool hip crazy aloofsnootytrying to kill you tail fur claws Low Customers: 10 columns name, address, phone, DoB, interests, orders, CLTV, etc. Medium Web analytics: 100 columns High Language: > 1,000 dimensions cat
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Cardinality = Options per Element High: Phone # 7.442 billion Medium: ZIP Code 43,000 Low: Alive or Dead 2.5 Age 122
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Learning Machine Learning High Dimensionality High Cardinality What's it good at?
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Learning Machine Learning How is it classified? Supervised Unsupervised Reinforcement
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Supervised: You know the right answer Correcting Autocorrect Dog: Yes Cat: No Tag a friend?
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Unsupervised Segment my customers Find look-alike prospects Create customer personas Good for unlabeled data Tell me something I don't know
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Reinforcement Learning Given: data goal action feedback Respond to the environment
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Learning Machine Learning How does it work? Decision Trees / Random Forest Support Vector Machines Neural Nets / Deep Learning Ensemble
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Decision Trees  Random Forest Message A Message B
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Random data samples Random variables Decision Trees  Random Forest
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Random data samples Random variables Decision Trees  Random Forest
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Random data samples Random variables Solution Decision Trees  Random Forest
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Support Vector Machines
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Support Vector Machines
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Support Vector Machines
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Support Vector Machines
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Neural Network  Deep Learning Go to the movies?
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Neural Network  Deep Learning Go to the movies?
Wisdom of Machines 57 Validation Each model’s predictive accuracy is tested on the hold out data set. Wisdom of the crowd The combination of models that delivers the best accuracy is selected and deployed.
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Learning Machine Learning Language High Dimensionality Lots of Elements per Object High Cardinality Lots of Options per Element Supervised / Unsupervised Examples vs. Exploration Decision Trees / Random Forest Random data & variables Support Vector Machines Looking at it from a different angle Neural Nets / Deep Learning Sort of how we think the mind works Ensemble Diversity Rules
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Bringing AI Into Your Organization Look what followed me home! Can we keep him?
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics AI Onboarding Tips Clearly identified goals
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics AI Onboarding Tips Clearly identified goals Know Your Data Valid Credible Reliable Consistent Clean Unbiased Defined Relevant Correlate-able Understandable Complete Timely
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics AI Onboarding Tips Clearly identified goals Know Your Data Would I advise my uncle? Would I stake my reputation? Would I risk my own money? Would I bet my job?
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics AI Onboarding Tips Clearly identified goals Know Your Data Start with repetitive, taxing tasks machines can do better Ranking Sorting big data Finding patterns Finding look-alikes Counting, measuring Finding a needle in a haystack One of these things is not like the other
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics What Can ML Do Better? Testing Lead scoring Meeting scheduling Personalizing content Inbound e-mail sorting Social media monitoring Programmatic advertising Creating social media messages & ad copy
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics AI Onboarding Tips Clearly identified goals Know Your Data Start with repetitive, taxing tasks machines can do better Buy vs. Build?
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics AI Onboarding Tips Clearly identified goals Know Your Data Start with repetitive, taxing tasks machines can do better Buy vs. Build? Buy!
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics AI Onboarding Tips Clearly identified goals Know Your Data Start with repetitive, taxing tasks machines can do better Buy vs. Build Determine which data sets are useful
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics AI Onboarding Tips Clearly identified goals Know Your Data Start with repetitive, taxing tasks machines can do better Buy vs. Build Determine which data sets are useful Become proficient at the Smell Test
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics The Smell Test
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics AI Onboarding Tips Clearly identified goals Know Your Data Start with repetitive, taxing tasks machines can do better Buy vs Build Determine which data sets are useful Become proficient at the Smell Test Be the change you want to see
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Find other enthusiasts (meet-ups) Find internal enthusiasts (host a meet-up) Lunch and Learn (buy them lunch) Combine resources to make every decision lead to creating an AI Center of Excellence Be The Change You Want to See
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics -1 Ignorance or ennui 0 Aware and Learning 1 Ad-Hoc Experimentation 2 Organized Experimentation 3 Goal Setting 4 System Training 5 System Testing 6 System Deployed 7 Continuous Learning Everything Maturity Model
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics AI Onboarding Tips Clearly identified goals Start with repetitive, taxing tasks Buy vs. build Know your data Determine which data sets are useful Be the change you want to see Become proficient at the Smell Test Hone your domain knowledge
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Man and Machine
Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Jim Sterne eMetrics Summit Digital Analytics Association Artificial Intelligence for Marketing Getting Started

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915 keynote stern_using our laptop

  • 1. Jim Sterne eMetrics Summit Digital Analytics Association Artificial Intelligence for Marketing Getting Started Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics
  • 2. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Genetic Algorithm Covariance Kernels Gaussian Processes Hyperparameter Tuning Convex Gradient Methods Gradient Boosted Method Particle Swarm Intelligence Convolutional Neural Architecture Heterogeneous Configuration Models Spatio-Temporal Hierarchical Bayesian Optimization The Language Barrier
  • 3. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics As Seen on TV “Strong AI” – thinks and acts human Sentience “Weak AI” – task specific Functional AI: Anything computers can’t SciFi: Anything AI can’t
  • 4. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Why Machine Learning Now? 50 years of study Huge amount of data Specialize chipsets
  • 5. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Software Grows Up Specific Logic Mathematical Model Do this, then this, then this Describe numerical relationships If this happens, do that Calculate alternatives If confused, report error Human compares results & iterates Statistical Model Artificial Intelligence Calculate probabilities Uses examples to figure it out Project likelihoods and changes it's mind Human compares & iterates
  • 6. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Artificial Intelligence Natural Language Processing Computer Vision Conversation Bots Robots Machine Learning
  • 7. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Artificial Intelligence Speech to text This means that Repeated correction Taught over time Contractions Accents Patois Wreck a nice beach Recognize speech Natural Language Processing
  • 8. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Natural Language Processing Can I help you? Yes, I have a problem Oh? – one of the keys is broken Current Customer with my keyboard Hardware 1. Take it to a local store 2. Send it in for repair 3. Send it in for replacement FAQ How long? Loaner? Data back up? Warranty? Incoming: 805-403-4075 Customer service
  • 9. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Natural Language Processing
  • 10. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Artificial Intelligence Natural Language Speech to text This means that Repeated correction Taught over time Conversation Bots Text to meaning Concept & emotion imitation Repeated correction Taught over time
  • 11. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics
  • 12. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Artificial Intelligence Natural Language Speech to text This means that Repeated correction Taught over time Conversation Bots Text to meaning Concept & emotion imitation Repeated correction Taught over time
  • 13. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Artificial Intelligence Natural language Speech to text This means that Repeated correction Taught over time Conversation Bots Text to meaning Concept & emotion imitation Repeated correction Taught over time Vision Pattern discovery This means that Repeated correction Taught over time
  • 14. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics
  • 15. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics
  • 16. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics
  • 17. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics
  • 18. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Facial Recognition
  • 19. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Rules based This means that Repeated correction Is taught over time Pattern discovery This means that Repeated correction Learns over time Complex concept imitation Emotional intelligence imitation Repeated correction Is taught and learns over time Robots
  • 20. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics In-Store Robots
  • 21. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Artificial Intelligence Natural Language Processing - Call center Conversation Bots - Customer service Computer Vision - Social media Robots - In store Machine Learning - Everything else
  • 22. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Detect Discover the most predictive attributes for a given outcome 01 Decide Infer rules from the data, weigh the attributes, and suggest a course of action 02 Revise Alter opinions about attributes and their weightings 03 Detect Discover the most predictive attributes for a given outcome 01 Decide Infer rules from the data, weigh the attributes, and suggest a course of action 02 Revise Alter opinions about attributes and their weightings 03 3 Needs for 3 Deeds of Machine Learning
  • 23. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Detect Discover the most predictive attributes for a given outcome 01 Decide Infer rules from the data, weigh the attributes, and suggest a course of action 02 Develop Alter opinions about attributes and their weightings 03 Detect Discover the most predictive attributes for a given outcome 01 Decide Infer rules from the data, weigh the attributes, and suggest a course of action 02 Develop Alter opinions about attributes and their weightings 03Wind speed 3 Needs for 3 Deeds of Machine Learning Barometric pressure Temperature Hours of daylight Sunrise, sunset Rain? UV Index
  • 24. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Detect Discover the most predictive attributes for a given outcome 01 Decide Infer rules from the data, weigh the attributes, and suggest a course of action 02 Develop Alter opinions about attributes and their weightings 03 Detect Discover the most predictive attributes for a given outcome 01 Decide Infer rules from the data, weigh the attributes, and suggest a course of action 02 Develop Alter opinions about attributes and their weightings 03 Wind speed 3 Needs for 3 Deeds of Machine Learning Barometric pressure Hours of daylight Sunrise, sunset Rain: UV Index Temperature
  • 25. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Detect Discover the most predictive attributes for a given outcome 01 Decide Infer rules from the data, weigh the attributes, and suggest a course of action 02 Develop Alter opinions about attributes and their weightings 03 Detect Discover the most predictive attributes for a given outcome 01 Decide Infer rules from the data, weigh the attributes, and suggest a course of action 02 Develop Alter opinions about attributes and their weightings 03Day Part Gender Age Income Location Education Behavior Weather 3 Needs for 3 Deeds of Machine Learning
  • 26. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Detect Discover the most predictive attributes for a given outcome 01 Decide Infer rules from the data, weigh the attributes, and suggest a course of action 02 Develop Alter opinions about attributes and their weightings 03 Detect Discover the most predictive attributes for a given outcome 01 Decide Infer rules from the data, weigh the attributes, and suggest a course of action 02 Develop Alter opinions about attributes and their weightings 03Day Part Gender Age Income Location Education Behavior Weather 3 Needs for 3 Deeds of Machine Learning
  • 27. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Detect Discover the most predictive attributes for a given outcome 01 Decide Infer rules from the data, weigh the attributes, and suggest a course of action 02 Develop Alter opinions about attributes and their weightings 03 Detect Discover the most predictive attributes for a given outcome 01 Decide Infer rules from the data, weigh the attributes, and suggest a course of action 02 Develop Alter opinions about attributes and their weightings 03 GOAL: Conversion DATA: previous purchase search term pageviews time-on-item email opt in post code Y >1.5 * >5 Y Then send 15% off email 3 Needs for 3 Deeds of Machine Learning
  • 28. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Detect Discover the most predictive attributes for a given outcome 01 Decide Infer rules from the data, weigh the attributes, and suggest a course of action 02 Revise Alter opinions about attributes and their weightings 03 Detect Discover the most predictive attributes for a given outcome 01 Decide Infer rules from the data, weigh the attributes, and suggest a course of action 02 Revise Alter opinions about attributes and their weightings 03 GOAL: Conversion DATA: previous purchase search term pageviews time-on-item email opt in post code Y >1.5 * >5 Y Then send 15% off email >2 >4 3 Needs for 3 Deeds of Machine Learning Control:
  • 29. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Detect Discover the most predictive attributes for a given outcome 01 Decide Infer rules from the data, weigh the attributes, and suggest a course of action 02 Revise Alter opinions about attributes and their weightings 03 Detect Discover the most predictive attributes for a given outcome 01 Decide Infer rules from the data, weigh the attributes, and suggest a course of action 02 Revise Alter opinions about attributes and their weightings 03 Data Goal Control 3 Needs for 3 Deeds of Machine Learning
  • 30. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics More data than a human can wrangle More attributes than a human can manage More permutations than a human can comprehend
  • 31. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Classification Clustering Segmentation Gender M F Age A Age B Age C Man and Machinevs.
  • 32. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Classification Clustering Segmentation Motorcycle Insurance Targeting Man and Machinevs.
  • 33. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Testing A. Buy one get one free B. Two for the price of one A2.1.1 A2.1.2 15% Lift A2.1 A2.2 A B A1 A2 B1 B2 Man and Machinevs.
  • 34. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Is there a pattern? Is there an anomaly? What can be omitted? What if we did it backwards? What if we changed the time scale? What if we look at it sideways? What additional data would be revealing? What if it had wheels? What would Chuck Norris do? What if this is the wrong problem? Man and Machine
  • 35. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Testing A. Buy one get one free B. Two for the price of one A2.1.1 A2.1.2 15% Lift A2.1 A2.2 A B A1 A2 B1 B2 Man and Machine
  • 36. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Learning Machine Learning What's it good at? How is it classified? How does it work?
  • 37. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Learning Machine Learning High Dimensionality High Cardinality What's it good at?
  • 38. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Dimensionality = Elements per Object dog bird grumpy keyboardLOL can haz cheeseburger? fish cool hip crazy aloofsnootytrying to kill you tail fur claws Low Customers: 10 columns name, address, phone, DoB, interests, orders, CLTV, etc. Medium Web analytics: 100 columns High Language: > 1,000 dimensions cat
  • 39. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Cardinality = Options per Element High: Phone # 7.442 billion Medium: ZIP Code 43,000 Low: Alive or Dead 2.5 Age 122
  • 40. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Learning Machine Learning High Dimensionality High Cardinality What's it good at?
  • 41. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Learning Machine Learning How is it classified? Supervised Unsupervised Reinforcement
  • 42. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Supervised: You know the right answer Correcting Autocorrect Dog: Yes Cat: No Tag a friend?
  • 43. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Unsupervised Segment my customers Find look-alike prospects Create customer personas Good for unlabeled data Tell me something I don't know
  • 44. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics
  • 45. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Reinforcement Learning Given: data goal action feedback Respond to the environment
  • 46. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Learning Machine Learning How does it work? Decision Trees / Random Forest Support Vector Machines Neural Nets / Deep Learning Ensemble
  • 47. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Decision Trees  Random Forest Message A Message B
  • 48. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Random data samples Random variables Decision Trees  Random Forest
  • 49. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Random data samples Random variables Decision Trees  Random Forest
  • 50. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Random data samples Random variables Solution Decision Trees  Random Forest
  • 51. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Support Vector Machines
  • 52. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Support Vector Machines
  • 53. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Support Vector Machines
  • 54. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Support Vector Machines
  • 55. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Neural Network  Deep Learning Go to the movies?
  • 56. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Neural Network  Deep Learning Go to the movies?
  • 57. Wisdom of Machines 57 Validation Each model’s predictive accuracy is tested on the hold out data set. Wisdom of the crowd The combination of models that delivers the best accuracy is selected and deployed.
  • 58. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Learning Machine Learning Language High Dimensionality Lots of Elements per Object High Cardinality Lots of Options per Element Supervised / Unsupervised Examples vs. Exploration Decision Trees / Random Forest Random data & variables Support Vector Machines Looking at it from a different angle Neural Nets / Deep Learning Sort of how we think the mind works Ensemble Diversity Rules
  • 59. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Bringing AI Into Your Organization Look what followed me home! Can we keep him?
  • 60. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics AI Onboarding Tips Clearly identified goals
  • 61. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics AI Onboarding Tips Clearly identified goals Know Your Data Valid Credible Reliable Consistent Clean Unbiased Defined Relevant Correlate-able Understandable Complete Timely
  • 62. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics AI Onboarding Tips Clearly identified goals Know Your Data Would I advise my uncle? Would I stake my reputation? Would I risk my own money? Would I bet my job?
  • 63. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics AI Onboarding Tips Clearly identified goals Know Your Data Start with repetitive, taxing tasks machines can do better Ranking Sorting big data Finding patterns Finding look-alikes Counting, measuring Finding a needle in a haystack One of these things is not like the other
  • 64. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics What Can ML Do Better? Testing Lead scoring Meeting scheduling Personalizing content Inbound e-mail sorting Social media monitoring Programmatic advertising Creating social media messages & ad copy
  • 65. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics AI Onboarding Tips Clearly identified goals Know Your Data Start with repetitive, taxing tasks machines can do better Buy vs. Build?
  • 66. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics
  • 67. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics AI Onboarding Tips Clearly identified goals Know Your Data Start with repetitive, taxing tasks machines can do better Buy vs. Build? Buy!
  • 68. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics AI Onboarding Tips Clearly identified goals Know Your Data Start with repetitive, taxing tasks machines can do better Buy vs. Build Determine which data sets are useful
  • 69. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics AI Onboarding Tips Clearly identified goals Know Your Data Start with repetitive, taxing tasks machines can do better Buy vs. Build Determine which data sets are useful Become proficient at the Smell Test
  • 70. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics The Smell Test
  • 71. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics AI Onboarding Tips Clearly identified goals Know Your Data Start with repetitive, taxing tasks machines can do better Buy vs Build Determine which data sets are useful Become proficient at the Smell Test Be the change you want to see
  • 72. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Find other enthusiasts (meet-ups) Find internal enthusiasts (host a meet-up) Lunch and Learn (buy them lunch) Combine resources to make every decision lead to creating an AI Center of Excellence Be The Change You Want to See
  • 73. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics -1 Ignorance or ennui 0 Aware and Learning 1 Ad-Hoc Experimentation 2 Organized Experimentation 3 Goal Setting 4 System Training 5 System Testing 6 System Deployed 7 Continuous Learning Everything Maturity Model
  • 74. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics AI Onboarding Tips Clearly identified goals Start with repetitive, taxing tasks Buy vs. build Know your data Determine which data sets are useful Be the change you want to see Become proficient at the Smell Test Hone your domain knowledge
  • 75. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Man and Machine
  • 76. Jim Sterne – jsterne@targeting.com – emetrics.org – @jimsterne – #eMetrics Jim Sterne eMetrics Summit Digital Analytics Association Artificial Intelligence for Marketing Getting Started