The Doppler Quarterly Summer 2017 - Page 59

“A Robot Stole My Job!” The Unintended Consequences of Artificial Intelligence David Linthicum EDITOR’S NOTE In the 2017 Winter Doppler Quarterly’s cover article, Disruptor or Disrupted, we explored how companies are using internet-based exponential technologies to gain competitive advantage. This is the second article in our multi-part series discussing disruptive technolo- gies and the strategies today’s businesses must adopt in order to thrive in a digital world. The World Economic Forum expects automation and Artificial Intelli- gence, to result in the loss of at least 5 million jobs globally by 2020. Yes, a robot, or an AI process on a com- puter, is likely going to impact your livelihood. How much, or how little, depends upon what you do for a living. Machine Learning (a sub-category of AI) is the ability to process huge volumes of data and complete tasks more efficiently than a human. Moreover, ML actu- ally learns. Once you set up a Machine Learning model, it can understand and store different out- comes based upon experiences or other input. AI Across Industries Let’s look at an AI process that picks stocks. On the human side, a hedge fund analyst can look at all of the available data, such as management performance, past stock prices, and outlook for the future, and turn that input along with experience into picking stocks that hopefully go up. Now let’s say an application that picks stocks is bound to an ML engine, and can consider the same data as the analyst, and also incorporate the knowledge and experiences of a 1,000 other financial experts. Using cloud-based processing that’s almost free, the hedge fund administrators can employ as many of these processes as they need. Information is processed 1,000,000 times faster, and stocks are picked and plotted in seconds. That hedge fund analyst who makes $1,000,000 a year with bonuses is easily replaced with a cloud instance that costs $1,000 a month. SUMMER 2017 | THE DOPPLER | 57