The document discusses opportunities and challenges related to artificial intelligence. It notes that new technologies like AI, cloud computing, and the Internet of Things are changing how people live and work. While digital disruption offers opportunities, it also brings challenges around issues like data privacy, algorithm bias, and ensuring trust in complex systems. The document argues that while many CEOs recognize AI's importance, few companies have implemented wide-scale AI initiatives. It also finds that boards often overestimate their digital knowledge and that a critical mass of digitally savvy directors is needed to positively impact company performance. Overall, the document examines how AI is transforming the economy and society while raising issues that will need to be addressed around its responsible development and governance.

1. Into the Future with Artificial Intelligence
------
Opportunities and Challenges
Professor Robin Teigland
Chalmers University of Technology
www.robinteigland.com | www.slideshare.net/eteigland | robin.teigland@chalmers.se| @RobinTeigland

2. People
• “Net generation”
• 24x7 “mobile” workforce
• Gig economy
• Online learning
• Sharing not owning
• Sustainability
Technology
• Broadband/wifi
• Cloud, fog
• Internet of Things
• AI/ML/DL/NN
• Autonomous vehicles
• Smart robotics
• VR/AR/Holography
• 3D/4D printing/ALM
• Blockchains
• Nanotechnology
• Quantum computing
Open Source
• Software
• Hardware
• Physibles
Convergence of…..
Finance
• Microlending/microfinance
• Crowdfunding/equity/P2P lending
• Cryptocurrencies, tokens
• Blockchains, smart contracts
• Mobile money and payments
• M2M/R2R payments

3. Digital is the main reason
just over half the Fortune 500 companies
have disappeared since the year 2000.
-Pierre Nanterme, CEO Accenture, 2016
Yet..Digital disruption
has only just begun.

4. Thx to R. Wieselfors, Ericsson for photos

5. Thx to R. Wieselfors, Ericsson for photos

6. Analyzing
European tourism
with digital traces
http://www.etc-corporate.org/

7. We always overestimate the change
that will occur in the next two years
and underestimate the change
that will occur in the next ten.
- Bill Gates, The Road Ahead, 1996

8. Updated from http://www.visualcapitalist.com/chart-largest-companies-market-cap-15-years/; statista, November 2018
$1.06T $754B
$782B $820B
2018
$438B
Technology (AI) replacing energy and
banking

9. Exploitation Exploration

10. FIRM FOUNDED EMPLOYEES MKT CAP
BMW 1916 130,000 $56B
UBER 2009 16,000 $72B
MARRIOTT 1927 177,000 $40B
AIRBNB 2008 10,000 $38B
WALT DISNEY 1923 199,000 $171B
FACEBOOK 2004 25,000 $422B
WALMART 1962 2,200,000 $300B
ALIBABA 1999 66,000 $353B
Adapted from Parker & Van Alstyne, with Choudary, 2016, updated November 2018
Something fundamental is changing

11. Everytime you interact with an Airbnb
app or the website, you’re interacting
with machine learning in one way or
another.
-Mike Curtis, VP of Engineering

12. Shifting market logics – The rise of platforms
Ericsson & Augur 2011

13. B2B data platforms growing

14. Transformation of economic activity
Centralized,
hierarchical
organizations
Decentralized,
self-organizing
organizations

15. Decentralized “Ebay”

16. “Flash organization” with Upwork freelancers
Valentine et al., 2017, http://hci.stanford.edu/publications/2017/flashorgs/flash-orgs-chi-2017.pdf

17. http://marketrealist.com/2016/01/fourth-industrial-revolution-need-know/

22. https://www.inc.com/glenn-leibowitz/meet-the-ceo-running-a-billion-dollar-company-with-no-offices-or-email.html

24. Increasing forces
for local community and
circular economies

25. ReGen Villages – Fully self-sufficient
http://www.regenvillages.com/

26. All our knowledge is about the past,
but all our strategic decisions are about the future
Conway 2003
What we don’t know
we don’t know
about the future
What we know
What we know
we don’t know

27. While 63% of CEOs
believe AI will have a
larger impact on the
world than the
internet,….
https://www.pwc.com/gx/en/ceo-survey/2019/report/pwc-22nd-annual-global-ceo-survey.pdf
…only 6% have
AI initiatives on a
wider scale in the
organization.

28. Companies progressing but leadership falling behind
Research; Understanding Digital Maturity – MIT/CapGemini 2018

29. Boards overestimate their digital savviness
62% of
boards report
they are digitally
savvy
Source: MIT CISR 2014 Board Survey, 81 companies.
24% of boards
are digitally savvy
based on public
data
Source: MIT CISR 2018 Board Study, 1122 companies, based on
coding of public proxy data.

30. Digital Savvy Boards -> Higher performance
• Companies with digitally savvy boards
• 38% higher revenue growth
• 34% higher ROA
• 34% higher market growth
• 3 digitally savvy directors required to
impact performance
Source: MIT Research 2018

31. A single tech savvy director in the boardroom risks
being lonely and misunderstood.
To effect change at the board level, there must be a
critical mass of directors who truly understand; and,
ideally, every director is conversant.
—Jenny Banner, Lead Director, BB&T
Source: MIT CISR 2018 Board Study

32. Boards and Top Management not aligned on AI
Research; AI in Europe & Sweden by EY and Microsoft 2018 (n=267)

34. 35
IDEO

35. • Payment systems
– Functionality
– Fraud
• Third parties and IoT devices
– Ownership and fraud
– Operational, health & safety
• Data
– Cyberhacking and security breaches
– Ownership
– Integrity and ethical use of personal data
• Artificial intelligence
– ML blackbox
– Algorithm & training data bias
• Regulation & compliance
– Upstream and downstream
– National & international
Increasing
complexity
of trust

36. Interpersonal trust – People
Institutional trust – Platform
1st Rev
2nd Rev
3rd Rev
Changing focus of trust
Institutional trust - Brand
4th Rev Procedural trust – AI
????

37. Old fashioned Governance in the Era of AI Disruption –
The Challenges of AI for Sustainable Corporate Governance
© All rights reserved Digoshen AB
2018-2021
Robin Teigland, Professor, Chalmers University of Technology
Liselotte Engstam, Chairman & Research Director, Digoshen, NED
Fernanda Torre, Researcher, Stockholm School of Economics
Anthony Larsson, Researcher, Stockholm School of Economics

38. AI-enabled research of digital transformation
• Mapping of AI competence in
firms
– AI-enabled analysis of Swedish
talent on LinkedIn
• Mapping of AI competence at
board level
– AI-enabled analysis of
interlocking directorates
• Development of AI Maturity
Scale
– Above results
– AI-enabled analysis of annual
reports and websites
• Organizational
performance
– Financial
– Innovation
– Other?
• Regional performance
– Employment
– Other?

39. Free online AI courses

41. The future is already here -
it’s just not very evenly
distributed.
- William Gibson

42. www.robinteigland.com
www.slideshare.net/eteigland
Robin.teigland@chalmers.se
@RobinTeigland