{"id":441006,"date":"2023-03-22T17:24:13","date_gmt":"2023-03-22T16:24:13","guid":{"rendered":"https:\/\/innovationorigins.com\/?p=441006"},"modified":"2023-03-22T17:24:13","modified_gmt":"2023-03-22T16:24:13","slug":"generative-ai-in-business","status":"publish","type":"post","link":"https:\/\/ioplus.nl\/archive\/en\/generative-ai-in-business\/","title":{"rendered":"Generative AI may upset the status quo of business-customer interactions, but let\u2019s take it slow"},"content":{"rendered":"\n

Dealing with customer requests, issues and complaints has always been a crucial part of building and maintaining a thriving business. Arguably, in some sectors, it is the most important part. We can afford to say that this is and has been common knowledge for a long time and we certainly did not need Artificial Intelligence to understand how satisfactory provider-customer relationships in business settings facilitate successful commerce. Nevertheless, a field which in the near future may upset state of the art of business relationships, is that of Generative Artificial Intelligence<\/a>.<\/p>\n\n\n\n

Put like that, it may sound like a buzzword. So, what do we really mean when we talk about Generative AI in business and business improvement? Heath Ramsey, vice-president at US software development firm ServiceNow<\/a>, has discussed the matter in a presentation he gave this week at Eindhoven\u2019s High Tech Campus.<\/p>\n\n\n\n

A three-step model<\/h2>\n\n\n\n

He explained that the technology – which could be defined as a model that can produce text, images and other pieces of media in response to a prompt – may bring us towards a more and more automated brand of communication and company structure. Ramsey believes that the matter of what he defines as the \u201ccustomer problem in generative AI\u201d can be summarised in three key steps, which look towards the automation of some part of the hierarchical structure of a company.<\/p>\n\n\n\n

The process starts with intake, where an AI model takes in a prompt given by a user. Then, there is comprehension, the step entailing efficient understanding on the machine\u2019s part. In other words, the AI needs to be able to recognize, in sufficient detail, what the prompt is about. Lastly, response: refining a pertinent, case-specific reply to the original prompt.<\/p>\n\n\n\n

According to Ramsey, in turn, these three components, in turn, should be used to drive the business outcomes of automation, acceleration and augmentation. In this context, acceleration means that AI should facilitate companies’ path towards self-sufficiency and stability, while augmentation refers to AI’s ability to adapt and transform in short periods of time, following business necessities, as Forbes explains<\/a>. <\/p>\n\n\n

<\/a>
<\/div><\/div>
AI brings more fairness and transparency to the music-streaming business<\/div>
With music subscription services like Spotify, music streaming has become one of the most important distribution channels in the music industry. The market is growing, and with it, the amount of data. A side effect is that the settlements with the music rights owners are hardly manageable for audit companies.<\/div><\/div><\/div>\n\n\n

Generative AI\u2019s fair share of challenges<\/h2>\n\n\n\n

Now, it would be amazing if everything could run in such a simple fashion, but this is not the case. The challenges to consider are many and rather complex. First of all, the usual problem is money: single transactions operated by AI are currently relatively pricey. The \u201cnumber on the tag\u201d can vary, but generally costs constitute an issue. Secondly, now more than ever people are becoming increasingly conscious and concerned about data retention. Where does data that is fed to AI go? Is it trackable? Is it secure? Along with brand reputation, possible issues of public trust towards machines, poor response quality and misalignment with workflows, these are areas of interest that cannot be ignored.<\/p>\n\n\n\n

From general to specific<\/h2>\n\n\n\n

Also, there is a conversation around the topic of generalizability. Let\u2019s suppose for instance, that a customer has to cancel a strictly non-refundable stay at a hotel because of a terrible, unpredictable event, like the sudden death of a loved one. In the case of bilateral human interaction, a human could decide to apply an exception to the policy and grant a refund to the customer, out of pure compassion. Likely, this \u201csub-optimal\u201d or \u201cagainst-policy\u201d (from a strict business standpoint) decision might bring optimal results in the long run, with people awarding trust to the hotel. So, how would it be possible for an AI to assess a situation and decide when to apply exceptions to generalized policies?<\/p>\n\n\n\n

\u201cIt all comes down to augmentation.\u201d said Ramsey, explaining that an AI, with a better fine-tuning of the response output capabilities is, in time, able to make correct decisions in a good number of instances. However, there arises a consequential problem. If exceptions to policies can be made, humans may find exploitative patterns within the functioning of a service. <\/p>\n\n\n\n

According to Ramsey, in business this is a risk that has to be taken into account. \u201cYou can train models to respond in certain ways and then you need to understand how great is the loss linked to the exploitation,\u201d he says. In other words, when exploitative patterns from users emerge, a company needs to evaluate if the effective losses are greater than the costs of dedicating humans to handle the exceptions.\u00a0“Cost versus customer experience is an important factor to consider.” <\/p>\n\n\n

<\/a>
<\/div><\/div>
AI shows potential for solving global challenges<\/div>
A Medical University of Vienna study just investigated the potential of artificial intelligence (AI) to address societal megatrends and analyzed its proposed solutions in dealing with these global challenges. The institution explained that AI can offer understandable insights into the complex and cross-cutting issues of megatrends.<\/div><\/div><\/div>\n\n\n

Effective governance and awareness<\/h2>\n\n\n\n

However, for the time being, full automation of the workflow in business that entails direct customer – worker interaction is not feasible: \u201cMaybe around 60 percent or 70 percent could be doable.\u201d, Ramsey continued, \u201cThere is still a need for human beings to be able to get in the loop and supervise what cannot always work with automation\u201d. Moreover, extensive knowledge on AI systems is necessary and paramount: \u201cWe need control over the machine, in the sense that we need to always understand and know what the machine is doing.” <\/p>\n\n\n\n

Hence, finally, it all goes back to legislative policies, which experts are now bringing to the centre stage of the discussion around AI, considering all of its applications. Effective governance is the name of the game; and Ramsey believes it would be wise to start implementing clear policies right now, even though we might not yet feel a sense of worrying urgency to do so.\u00a0\u201cWe\u2019re going to get to a point where people in business are going to partner with third party AIs. This leads to concerns as data will be leaving the organizations’ control.\u00a0In terms of governance, we need to be proactive.” <\/p>\n","protected":false},"excerpt":{"rendered":"

Dealing with customer requests, issues and complaints has always been a crucial part of building and maintaining a thriving business. Arguably, in some sectors, it is the most important part. We can afford to say that this is and has been common knowledge for a long time and we certainly did not need Artificial Intelligence […]<\/p>\n","protected":false},"author":2583,"featured_media":492947,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"advgb_blocks_editor_width":"","advgb_blocks_columns_visual_guide":"","footnotes":""},"categories":[8553],"tags":[69735,10373,41022,27730,76753,76755,825],"location":[6763],"article_type":[36684],"serie":[],"archives":[],"internal_archives":[],"reboot-archive":[],"class_list":["post-441006","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-digital","tag-ai-nl-3","tag-ai","tag-automation","tag-business","tag-generative-ai","tag-governance","tag-high-tech-campus-en","location-netherlands","article_type-news"],"blocksy_meta":[],"acf":{"subtitle":"Generative AI is a relatively new field, getting a lot of public attention. With it come business opportunities, as well as challenges.","text_display_homepage":false},"author_meta":{"display_name":"Francesco Morelli","author_link":"https:\/\/ioplus.nl\/archive\/author\/francesco-morelli\/"},"featured_img":"https:\/\/ioplus.nl\/archive\/wp-content\/uploads\/2023\/03\/pc-hands.jpg","coauthors":[],"tax_additional":{"categories":{"linked":["Digital<\/a>"],"unlinked":["Digital<\/span>"]},"tags":{"linked":["AI<\/a>","AI<\/a>","automation<\/a>","business<\/a>","Generative AI<\/a>","governance<\/a>","High Tech Campus<\/a>"],"unlinked":["AI<\/span>","AI<\/span>","automation<\/span>","business<\/span>","Generative AI<\/span>","governance<\/span>","High Tech Campus<\/span>"]}},"comment_count":"0","relative_dates":{"created":"Posted 3 years ago","modified":"Updated 3 years ago"},"absolute_dates":{"created":"Posted on March 22, 2023","modified":"Updated on March 22, 2023"},"absolute_dates_time":{"created":"Posted on March 22, 2023 5:24 pm","modified":"Updated on March 22, 2023 5:24 pm"},"featured_img_caption":"","series_order":"","_links":{"self":[{"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/posts\/441006","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/users\/2583"}],"replies":[{"embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/comments?post=441006"}],"version-history":[{"count":0,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/posts\/441006\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/media\/492947"}],"wp:attachment":[{"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/media?parent=441006"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/categories?post=441006"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/tags?post=441006"},{"taxonomy":"location","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/location?post=441006"},{"taxonomy":"article_type","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/article_type?post=441006"},{"taxonomy":"serie","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/serie?post=441006"},{"taxonomy":"archives","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/archives?post=441006"},{"taxonomy":"internal_archives","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/internal_archives?post=441006"},{"taxonomy":"reboot-archive","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/reboot-archive?post=441006"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}