An executive’s guide to AI – McKinsey

  • One of the highest rated McKinsey articles of the year is titled, “An executive’s guide to AI.” It’s a quick overview including key elements and terminology.
  • Artificial Intelligence
    • AI is typically defined as the ability of a machine to perform cognitive functions we associate with human minds, such as perceiving, reasoning, learning, and problem solving.
    • Timeline
  • Machine Learning
    • Machine- learning algorithms detect patterns and learn how to make predictions and recommendations by processing data and experiences, rather than by receiving explicit programming instruction.

    Types of analytics

    • Descriptive, predictive, prescriptive
  • Major Types
    • Supervised, unsupervised, reinforcement

    Deep Learning

    • Deep learning is a type of machine learning that can process a wider range of data resources, requires less data preprocessing by humans, and can often produce more accurate results than traditional machine-learning approaches.
  • Major Models
    • Convolutional neural network CNN
    • Recurrent neural network

    Business Cases

      Predict Call Center Volume
    • Predict power usage in an electrical grid distribution
    • Detect fraudulent activity for credit cards
    • Simple low-cost image classification
    • Forecast product demand and inventory
    • Predict the price of cars
    • Predict probability of patient joining healthcare
    • Predict prices that will be paid for a product

    https://www.mckinsey.com/business-functions/mckinsey-analytics/our-insights/an-executives-guide-to-aihttps://www.mckinsey.com/business-functions/mckinsey-analytics/our-insights/an-executives-guide-to-ai

    69% of time AI and Deep Neural out-perform existing techniques

    The highest monetary impact is in retail with estimated 0.4–0.8 $ Trillions.

    • The consulting firm McKinsey & Company estimates that Artificial Intelligence has the potential to create between $ 3.5 Trillions and $ 5.8 Trillion in value across nine business functions in 19 industries — annually
    • Artificial Intelligence will generate up to $ 2.6 Trillions in additional value in Marketing and Sales
    • Additional $ 200 Billion in value will be added to Pricing & Promotion and $ 100 Billion
    • The study of McKinsey shows that 69 % of time Artificial Intelligence and Deep Neural Networks are able to improve the performance beyond what existing analytic techniques were able to deliver.”

    https://medium.com/swlh/who-is-going-to-make-money-with-artificial-intelligence-4a9aa7dd11a9