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Gartner Application Strategies & Solutions Summit

Summit 2017
4 – 6 December 2017 / Las Vegas, NV

Preparing Your Business Applications for


Artificial Intelligence
Van L. Baker

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© 2017 Gartner, Inc. and/or its affiliates. All rights reserved.
By 2019,
application
functions based
on artificial
intelligence will
be pervasive in
90% of
enterprises
globally

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Key Issues

1. How will AI come into the enterprise?


2. How will enterprise development teams utilize hosted AI services?
3. In what ways will AI change app development?

2 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved.


Key Issues

1. How will AI come into the enterprise?


2. How will enterprise development teams utilize hosted AI services?
3. In what ways will AI change app development?

3 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved.


AI vs. Machine Learning vs. Deep Learning

AI
Human Intelligence Exhibited by Machines

Machine Learning
An Approach to Achieve Artificial Intelligence
Algorithms to parse data, learn from it
and then make a determination or
prediction about something in the world

Deep Learning
A Technique for Implementing Machine Learning
Multilayer neural networks

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Virtual Personal Assistants Are Becoming More
Integrated Into the Daily Life of Some Users
VPA Usage — Past Month Frequency of VPA Usage
Once a month or less often
Several times a day
8%
15%
A few times a month
Never
15%
used it
65%
Once or twice a day
About once a week 21%
11%

Used last
month
A few times a week
20%
30%

Base: Have used VPA in the last month (A19), n = 4,057


Q. How often do you use a VPA?

VPAs — such as Apple's Siri, Google's Assistant, Amazon's


Used, but not Alexa and Microsoft's Cortana — have gained popularity in
last month recent years. These voice assistants, available on a variety
15% of different devices, can help with a number of different tasks
Base: All Respondents, n = 10,509 from driving directions to general questions.
Q. Have you used a virtual personal assistant (VPA) in the last month?

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Reading the "Tells" — Revealing How Organizations Use
AI Now
What type of AI applications have the organizations integrated or plan to integrate with
existing application(s) or solution(s)?
Customer Engagement Applications 34%
Call Center Service and Support 29%
Digital Marketing Platforms 23%
Cybersecurity 20%
Financial Management Systems 16%
Vertical-Specific Software 16%
Manufacturing and Operations 15%
Supply Chain Management 15%
Other
Employee Collaboration Suites 13%  BI Analytics
 Data Analytics
Field Service and Support 13%
 Data Management and Preparation
Asset Performance Management 9%  Document Managements AI
 Medical Imaging
None, We Are Not Integrating AI 10%
 Prediction of Molecular Properties
Other 10%  Self-Service Knowledge Base and Support

Base: n = 80 Gartner Research Circle Members/Excludes "Not sure"


Q05: What type of artificial intelligence applications has your organization integrated or plans to integrate with existing application(s) or solution(s)?

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The Majority of Organizations Are Still Gathering
Information to Inform Their AI Adoption Strategy
What is the current stage of artificial intelligence (AI) solutions adoption within your organization?
Investigating

59% 25% 6% 6% 4%

Knowledge gathering/ Piloting


Implementing
investigating/ Deployed/
developing strategy In use today A further 4%
have plans to
deploy by 2018
Using
Base: n = 83 Gartner Research Circle Members
S02: What is the current stage of artificial intelligence (AI) solutions adoption within your organization?

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Skill Gap, Use Case Identification, Strategy and Funding Are
Key Challenges to Be Overcome for Organizations to Adopt AI
What are the top three challenges to the adoption of artificial intelligence for organizations?

54%

37% 35% 35%


30%
27%
23%

Lack of necessary Defining our AI Identifying use Funding for AI Security or privacy Complexity of Determining how to
staff skills strategy cases for AI initiatives concerns integrating AI with measure value from
our existing using AI
infrastructure
Base: n = 83 Gartner Research Circle Members
Q08. What are the top three challenges to the adoption of artificial intelligence within your organization?

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Deep Neural Network System Model

Training Data DNN Training


System
Testing Data

Training Model
and
Weights
Production Exceptions

Rule-
Operating Data DNN
Based Action
(Real-Time Video Streams) Runtime
System

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AI Is Here Now

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Examples of Current Business Applications With AI

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Key Issues

1. How will AI come into the enterprise?


2. How will enterprise development teams utilize hosted AI services?
3. In what ways will AI change app development?

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Hosted AI Services

Speech to Text
 Amazon Lex
Natural Language Processing
 IBM Watson Speech to Text
 Amazon Lex
 Microsoft Bing Speech API
 Microsoft LUIS
 Google Cloud Speech API
 Microsoft Linguistic Analysis API
 Google Cloud Natural Language API
 IBM Watson Natural Language
Understanding Text to Speech
 IBM Watson Natural Language
 Amazon Polly
Classifier
 IBM Watson Text to Speech
 Microsoft Bing Speech API
 Microsoft Linguistic Analysis API

Translate
 IBM Watson Language Translator
 Microsoft Translator Sentiment Analysis
 Google Cloud Translation API  IBM Watson Tone Analyzer
 IBM Watson Personality Insights
 Microsoft Text Analytics API

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Hosted AI Services

Knowledge Extraction
 IBM Retrieve and Rank
 IBM Watson Tradeoff Analytics
 IBM Watson Discovery
 Microsoft Knowledge Exploration
 Microsoft Academic
Knowledge API
Image Recognition
 Amazon Rekognition
 Microsoft Computer Vision API
 Microsoft Face API
 Google Cloud Vision API Other Specialized Services
 IBM Watson Visual Recognition  Google Cloud Jobs API
 Google Cloud Video
Intelligence API
 Microsoft Bing Spell Check API
 Microsoft Entity Linking
Intelligence API

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Hosted Services Use Cases

Virtual Assistants
 Customer Service
 Loan Applications
 Product Availability
 Returns Process
 Product Information

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Hosted Services Use Cases

Predictive
Analytics Actions
 Account Planning
 Risk Assessment
 Investment Priorities
 Recommended
Content

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Hosted Services Use Cases

Image
Recognition
 Authentication
 Parts Identification
 Inventory of Assets
 Real Estate Appraisal

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Key Issues

1. How will AI come into the enterprise?


2. How will enterprise development teams utilize hosted AI services?
3. In what ways will AI change app development?

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App Testing
By 2021, 10% of new development projects will have a developer-
written test script and an AI-enabled agent optimizing test code.
Why it will happen: Why it won't happen:
 AI will be pervasive in the test clouds  Development teams continue to
and PaaS by 2019. develop in workstation environments.
 Development environments will  Manual testing persists despite
continue to shift to cloud native. advantages of automated testing.
 Utilization of ecosystem partners will  Legacy applications can be challenging
continue to increase. for automated testing.

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Code Generation

By 2021 30% of development teams will be using AI-generated code.

Why it will happen: Why it won't happen:


 Deep learning models can be used to  Developers will resist adoption of
optimize code. AI-generated code deeming it
lacking elegance.
 Autogenerated code will be inherently
more efficient for some classes  Combining AI-generated code with
of code. handwritten code will prove difficult.
 AI-generated code will save significant  Partial AI code generation will not
time for development teams. necessarily reduce the time needed to
develop apps.

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Recommendations

 Make the use of AI features of packaged business applications


pervasive in your organization.
 Test hosted AI services to determine the efficiency of standard models
and the amount of data needed to add domain specific expertise.
 Inventory the skills on your teams to ML/AI capabilities and establish
training programs for those that have the capability to learn.
 Look to gradually incorporate deep learning and machine learning
skills whether via acquisition or outsourcing.
 Start development of conversational agents as the onramp for use of
AI services.

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Action Plan

Monday Morning:
 Identify preferred vendors for hosted AI services.
 Employ AI-driven features in determining cloud migration efforts.
Next 90 Days:
 Evaluate hosted services to determine the best providers for distinct use cases.
 Assess the difficulty associated with training models to add domain specific expertise.
Next 12 Months:
 Build your first conversational agent and assess the full scope of a portfolio of
conversational agents.
 Prioritize applications that can be enhanced by the incorporation of hosted AI services.

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Recommended Gartner Research

 Artificial Intelligence Primer for 2017


Whit Andrews, Alexander Linden and Tom Austin (G00318582)
 Where You Should Use Artificial Intelligence — and Why
Whit Andrews (G00328113)
 AI Will Alter Application Development — Things to Do Now
Van L. Baker (G00326057)

For more information, stop by Gartner Research Zone.


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