Artificial Intelligence is hyped as being the most impactful technological development of our time. But how impactful is it really?

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SMART
Artificial intelligence
and our digital futures

2. GET TECHNOLOGY SMART
Artificial intelligence and our digital futures
The electric fan, heavy machinery, steam trains, the underground were all feared at their
inception because of the human skills they encroached upon. Artificial Intelligence (AI) is
the most recent technology to cause concern among many including high-profile industry
experts such as Stephen Hawking and Bill Gates, with both publicly expressing their
apprehension as to what the future of artificial intelligence might hold. Most famously,
Elon Musk made headlines when he commented that, “with artificial intelligence we are
summoning the demon”.1
These concerns are inextricably linked to the fact that developments in AI bring huge
potential for efficiencies and improved experiences. As industry commentators,
businesses and watchful consumers anticipate the future of artificial intelligence, it is
unsurprising that it was one of the threads which ran throughout Ovum’s recent Digital
Futures conference. Speakers explored how AI is changing business strategies and
consumer behaviours as we adapt to technological developments. The three topics which
follow illustrate how, like every new technology which precedes it, AI is a demon
inasmuch as it exists on our terms and is subject to our demands.
[N.B. For the purpose of this article we have followed the opinion that AI can be split into
six sub-technologies, each with different capabilities: Machine Learning; Computer Vision;
Natural Language Processing; Machine Reasoning; Strong AI; and Deep Learning.]
THE NEED FOR INTUITIVE INTERFACES
Most consumer-facing AI is activated verbally using a combination of Machine Learning
and Natural Language Processing (NLP) technologies. We have seen a number of
chatbots and virtual assistants appear on the market which use these technologies,
among these being Google Duplex. Launched at Google’s annual developer conference
earlier this year, Google Duplex was demonstrated to make a reservation with a Chinese
restaurant live on stage, the cutting edge of verbally-activated artificial intelligence
today.2
However, the reality is that usage doesn’t reflect the hype. Research by The Information
has shown that just 2% of people with devices that use Amazon’s Alexa have made a
purchase with their voices in 2018, and of those, 90% didn’t try it again.3
Ovum’s research
shows that the percentage of consumers who rated their experience with digital
1
MIT AeroAstro Symposium, 2014
2
Google I/O, 2018
3
‘The reality behind voice shopping hype’, The Information, 2018

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Artificial intelligence and our digital futures
assistants as ‘excellent’ dropped 9% between 2017-2018.4
Furthermore, 25% of those
rating the experience ‘poor’ and ‘very poor’ did so as ‘It regularly doesn’t understand what
I am saying or who is talking’.5
As Chema Alonso, Global Data Officer at Telephonica
suggests: “It is time for tech to learn the human interface”.
Visual AI, or Computer Vision, seems likely to do this, which promises to improve our
experience of AI: it will be able to see and interpret what is happening in the room, and
will go some way to improving these issues, for instance by supplementing voice
activation with lip-reading.
Ovum analysts suggest that Computer Vision is gaining popularity in the home. Security
webcams, either indoors or outdoors, are now more commonly used than smart speakers
with digital assistants. Ovum’s research predicts that by 2023 Computer Vision will
generate as much revenue globally as Natural Language Processing.6
Meanwhile,
Amazon’s recent partnership with Snapchat, which allows consumers to search for
products they have taken photos of, is an example of Computer Vision adding real
commercial value.7
Computer Vision’s ability to react to its environment and to go beyond merely increasing
efficiency explains why it will perhaps surpass the usefulness of verbally-activated
artificial intelligence. This shift illustrates that, far from being the stuff of science fiction, AI
is subject to its ability to interact with us – and is ultimately a tool designed to help us
better interact with technology.
MOST AI CANNOT OPERATE DURING CRISES
At Digital Futures Dr Simon Thompson (Head of Practise for Big Data and Customer
Experience at BT) noted that one of the constraints of some of the most common AI
today is that “it is driven out of the normal situation”. Put simply, most sub-divisions of AI
are good at responding to what they recognise, and less good at responding to new
situations. This means they cannot respond to crises, or indeed abnormal situations, which
is arguably where the most value is for businesses. For instance, if a customer is at the
4
‘Digital Consumer Insights 2018: Smart Living’, Ovum. 2018
5
As above.
6
Artificial Intelligence Markets Forecast, Tactica. 2018
7
‘Amazon and Snapchat form a powerful partnership’, Forbes. 2018

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Artificial intelligence and our digital futures
point of switching, most existing AI customer service would not be able to rectify the
situation.
This is most likely why Ovum’s analysis predicts that Deep Learning – “The capacity of a
computer to learn from experience, i.e. to modify its processing on the basis of newly
acquired information” - will continue to be the AI which generates the biggest revenue.8
By 2023 it is predicted to generate more revenue than other AI combined.9
AI is most
useful when it goes beyond optimising business performance and saving costs and
becomes truly impactful, hence the revenue anticipated to be generated from Deep
Learning.
THERE ISN’T LEGISLATION IN PLACE
Although the moral implications of AI have not yet informed legislation, this is increasingly
being discussed. However, AI is not yet impactful enough for us to know who takes
responsibility for our digital actions, the technology or the voice controlling it?
At some point, however, as Richard Mahony, Ovum’s Global Director, Consulting noted AI
“will most certainly change our ethics”. Recently, it has been publicised that the Chinese
government is using an AI surveillance system which tracks online and psychical
behaviour, described by Vanity Fair as “an authoritarian tech dystopia”.10
However, the
magazine also notes that, “A growing tide of Silicon Valley workers are rebelling against
their employers over practices they see as unethical”11
. Technology companies will be held
accountable for the way their technology is used, who they chose to partner with and
whether there are appropriate safeguards in place as their products develop, and
legislation will be put in place accordingly as AI becomes more impactful.
WHAT THIS MEANS FOR BRANDS
Artificial intelligence is most usefully viewed as technology’s new interface - the way we
increasingly interact with technology. These interfaces currently leave a lot to be desired
and have been over-hyped. Brands would do well to remember that humans adapt much
more slowly than the rate at which technologies are developed. Technology is only as
commercially valuable as it is useful or impactful. Brands which are looking to invest into
their AI capabilities should do so with this in mind and see to make AI a core part of their
business model, rather than an IT add-on. Meanwhile, brands which rely on AI to increase
8
Oxford English Dictionary. 2018
9
Artificial Intelligence Markets Forecast, Tactica. 2018
10
‘China’s terrifying surveillance state looks a lot like America’s future’, Vanity Fair. 2018
11
‘Amazon workers to Jeff Bezos: stop weaponizing our tech’, Vanity Fair. 2018

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Artificial intelligence and our digital futures
the efficiency of their customer service need to be aware of its limitations, particularly in
times of crises.
If you are interested in learning more about the subject of this article, please contact
Sophie Meadows, Insights Manager, meadowss@bbdoknows.com
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