What Is Artificial Intelligence Seeing Through The Hype and Focusing On Business Value
What Is Artificial Intelligence Seeing Through The Hype and Focusing On Business Value
What Is Artificial Intelligence Seeing Through The Hype and Focusing On Business Value
Intelligence? Seeing
Through the Hype
and Focusing on
Business Value
Additional Perspectives
■ Summary Translation: What Is Artificial Intelligence? Seeing Through the Hype and Focusing on
Business Value
(10 September2020)
Overview
Key Challenges
■ Marketing hyperbole is increasing confusion around artificial intelligence (AI) resulting in many
enterprises struggling to put a realistic value on an important source of innovation and
differentiation.
■ Business leadership tends to overestimate the impact of AI and underestimate its complexity —
requiring data and analytics leaders to manage their expectations, or risk costly project failures.
■ Organizations face challenges — involving integration, security and privacy issues — that
prevent them from efficiently moving their AI practices from prototypes to production. 1
Recommendations
Data and analytics leaders tasked with evaluating and implementing AI techniques should:
■ Defuse the hype by adopting a common taxonomy for AI technologies — based on Gartner’s AI
techniques framework, and taught through a multichannel education plan.
■ Demonstrate the value of AI techniques by identifying specific, business-relevant use cases that
can quickly benefit from their implementation.
■ Strengthen your AI production efforts by unveiling the AI skills within your organization,
addressing integration issues in the prototype phases and combining various AI techniques to
achieve their full representation power.
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Strategic Planning Assumptions
By 2023, 85% of AI solutions sold by vendors will focus on concrete domains and industry
verticals.
By 2022, all personnel working on AI projects will be required to demonstrate competency in and
understanding of responsible AI practices.
Introduction
AI techniques solve a wide array of business problems and generate significant returns on
investment (ranging from about 20% to over 800% — see “Five Ways Artificial Intelligence and
Machine Learning Deliver Business Impacts”). However, unbridled hype generated by the industry,
the press and overenthusiastic software vendors is creating confusion that makes it difficult for
organizations to set the right expectations regarding business outcomes. This untamed hype gives
rise to projects that have no chance of success. Subsequently, business leaders with unrealistic
expectations will blame the technology and the science for its inability to transform lead into gold.
— Gartner Glossary
Gartner’s 2019 CIO Survey identified that, although 92% of respondents indicate that they either
have AI on their radar, or have initiated projects, only 19% have projects currently deployed. 2 In
Gartner client inquiries, end users have identified a wide range of reasons why these AI
deployments are not sustainable.
How can data and analytics leaders mitigate the negative aspects of the hype surrounding AI,
while preserving the enthusiasm rightfully associated with its power to create real value?
This research offers approaches that data and analytics leaders can use to manage business
leaders’ expectations of AI, set realistic goals and increase the success rate of AI projects.
Analysis
Adopt a Common Taxonomy for AI Techniques Based on Gartner’s AI Techniques
Framework
AI techniques go by a wide variety of names — including:
■ Data mining
■ Neural networks
■ Genetic algorithms
■ Deep learning
Many clients find this confusing. Gartner’s AI Techniques Framework consists of a set of
computing engineering techniques that fall into seven principal sets (see Figure 1). This framework
is essentially use-case-driven, but respects the basic principles established in Stuart Russell and
Peter Norvig’s reference text book “Artificial Intelligence: A Modern Approach.” 3 It is an attempt to
impose some order on the “wild west” of terminology related to AI.
Using this framework, data and analytics leaders see through the hype, breaking the concept down
into tangible pieces and removing the philosophical element from the AI discussion. They can then
show how each of these techniques can solve real-world problems.
Today, three main categories of techniques form the majority of use cases in AI. These categories
are distinct and embody very different approaches and techniques that are robust and mature:
■ Probabilistic reasoning: Those techniques (often generalized as machine learning — see Note 1)
that extract value from the large amount of data gathered by enterprises. This includes
techniques aimed at unveiling unknown knowledge held within a large amount of data (or
dimensions). This is done by discovering interesting correlations linked to a particular goal or
label within that data. This might include, for example, sifting through a large amount of
customer records and identifying what are the factors, and how these factors are correlated —
allowing the organization to anticipate if those customers are potential churners.
■ Computational logic: Often referred to as rule-based systems, these techniques use and extend
the implicit and explicit know-how of the organization. These techniques are aimed at capturing
known knowledge in a structured manner, often in the form of rules. These rules can be
manipulated by business people while the technology guarantees the coherence of the rule set
(by making sure that rules do not contradict each other or lead to circular reasoning — which is
The bottom three layers represent emerging techniques in descending order of maturity:
■ Natural language processing (NLP): NLP provides intuitive forms of communications between
humans and systems. NLP includes computational linguistic techniques (symbolic and
subsymbolic) aimed at recognizing, parsing, interpreting, automatically tagging, translating and
generating (or summarizing) natural languages. The phonetic part is often left to speech-
processing technologies that are essentially signal-processing systems. That is why
applications dealing with speech-to-text, or text-to-speech functionalities are often delivered by
different software solutions. Additional knowledge capabilities, such as dictionaries or
ontologies, are also part of NLP systems.
■ Agent-based computing: This is the least mature of the AI techniques categorized in this
framework, but it is quickly gaining in popularity. Software agents are persistent, autonomous,
goal-oriented programs that act on behalf of users or other programs. Chatbots, for example, are
increasingly popular agents. In increasing order of complexity, there are five main types of agent
systems:
■ Reflex-based agents
■ Model-based agents
■ Goal-based agents
■ Learning agents
Two main classes of agents application are commonly used with existing solutions today:
1. Task-automation agents can be generic (for example, meeting scheduling assistants in email
systems), or more specific (for example, contract validation softbots for sales automation
applications).
Agent-based techniques also have to deal with particular orchestration principles given the
distributed and autonomous nature of their operations. This means they have the ability to
manage the collective behavior of dispersed computing and self-organized systems, as well as the
emerging properties of these systems. Game theory and other complex systems theory disciplines
can provide techniques to address software agencies’ orchestration problems.
The left column of the framework depicted in Figure 1 includes systems feeding data to all
techniques of the framework:
■ Perception and ambient intelligence systems include a wide variety of advanced technologies
continuously capturing different types of data, including audio, visual (such as computer vision),
olfactory, haptic and chemical data. These technologies also capture environmental and
geospatial inputs — and provide context and precision in order to develop more effective
analytical assets.
The right column of the framework includes systems that capitalize on insights or execute the
decisions coming from other techniques of the framework:
■ Smart process automation and smart robotic systems apply AI techniques for adaptive and
complex coordination of (digital or physical) execution, including feedback processing and
“learning.” It also refers to techniques that are needed for augmentation and advanced human-
machine-interaction. This requires algorithms that go beyond standard machine engineering and
process automation. Contrary to common belief, robotic process automation (RPA) and
nonadaptive robotic systems are not considered to be AI systems.
See Note 2 for a representative list of vendors that provide the AI technologies outlined in this
research.
■ How will the impact of implementing the technology be measured (compared to more traditional
techniques)?
■ How will the value provided by the technology be monitored and maintained? And by whom?
■ Which of the subject-matter experts from the lines of business can guide the development of the
solution?
Any AI strategy initiative must first focus on the organization’s readiness. It must allow for learning
and practical use, before embarking on a grand AI program. Engaging in an AI strategy without first
experimenting with its component techniques is putting the cart before the horse.
The practical introduction of AI techniques within an organization of any size can be achieved
through five steps:
1. Use cases — Build a portfolio of impactful, measurable and quickly solvable use cases.
3. Data — Gather the appropriate data relevant to the selected use cases.
4. Technology — Select the AI techniques linked to the use cases, the skills and the data.
This five-step formula (see Figure 2) is a tactical approach to the introduction of AI techniques,
favoring a quick time-to-value perspective. It is not a strategic, longer-term outlook, which can be
developed once the organization has established its current strengths and weaknesses (both
culturally and technologically) in terms of using those techniques. See “5 Steps to Practically
Implement AI Techniques” and “How to Optimize Business Value From Data and Analytics
Investments … Finally.”
■ AI Skills: However, while organizations are still struggling to deploy AI techniques in production,
it seems that acquiring AI talent might not be as much of an issue as commonly believed.
Gartner’s 2019 AI in Organizations Survey showed that, of organizations using of planning to
use AI within three years, almost 70% indicate that they either have skills, or the ability to
uncover internal competencies or hire external talent to fulfill their demand (see Figure 3). 1
■ Composite AI: The COVID-19 crisis has accelerated a trend that we have been witnessing in the
last few years. Organizations are combining different AI techniques to improve the efficiency of
learning, to broaden the level of knowledge representations and, ultimately, to solve a wider
range of business problems in a more efficient manner. We have dubbed this trend, “composite
AI.”
■ Decision Intelligence: AI intersects with data science and business process management. Those
three disciplines meet at the decision-modeling level — where users can describe how AI
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techniques improve decision making through modeled know-how and data evidence. Decision
intelligence is the discipline that enables the reengineering of those decisions, to make them
adaptable and resilient.
Evidence
1. Be part of the organization’s corporate leadership or report into corporate leadership roles.
The study was developed collaboratively by Gartner analysts and the Primary Research Team.
Results of this study do not represent global findings or the market as a whole, but reflect
sentiment of the respondents and companies surveyed.
2
The 2019 Gartner CIO Survey was conducted online from 4 June 2019 through 5 August 2019
among Gartner Executive Programs members and other CIOs. The respondents were members of
Gartner Executive Programs and other IT leaders.
Qualified respondents were the most senior IT leader (CIO) for their overall organization or a part of
their organization (e.g., a business unit or region).
The total sample is 1,070, with representation from all geographies and industry sectors (public
and private). Disclaimer: Results do not represent “global” findings or the market as a whole but
reflect sentiment of the respondents and companies surveyed.
The survey was developed collaboratively by a team of Gartner analysts and was reviewed, tested
and administered by Gartner’s Research Data and Analytics team, with additional research
contribution and review from Melissa Rossi Wood. Of respondents, 92% indicated that they either
have AI on their radar or have initiated projects. However, only 19% have projects currently
deployed.
3
S. Russell and P. Norvig, “Artificial Intelligence: A Modern Approach,” Prentice Hall.
■ AI Dynamics
■ Algorithmia
■ Alteryx
■ Anaconda
■ Databricks
■ Dataiku
■ DataRobot
■ Datawatch Systems
■ Domino
■ FICO
■ H2O.ai
■ IBM
■ KNIME
■ MathWorks
■ Microsoft Azure
■ ModelOp
■ RapidMiner
■ Saagie
■ SAS
■ Teradata
■ TIBCO Software
■ Actico
■ Decisions
■ FICO
■ FlexRule
■ IBM
■ InRule
■ Rulex
■ Progress
■ SAP
■ FICO
■ Frontline Systems
■ Gurobi
■ IBM
■ LINDO Systems
■ MATLAB
■ MOSEK
■ Amazon Lex
■ Arria NLG
■ Attivio
■ Automated Insights
■ AYLIEN
■ Clarsentia
■ Cortical.io
■ Converseon
■ IBM
■ Indico
■ Insight Platforms
■ Kingland
■ Lexalytics
■ Microsoft Azure
■ Narrative Science
■ NVivo
■ Proxem
■ Yseop
■ Expert System
■ Grakn
■ Maana
■ Neo4j
■ Ontotext
■ Siren
■ Stardog
■ TigerGraph
■ Clara Labs
■ Diffeo
■ PROWLER.io
■ Swarm Technologies
■ x.ai
■ Aromyx
■ Bambu Tech
■ Cognex
■ Lofelt
■ Neuron soundware
■ OtoSense
■ Reality AI
■ Remark Holdings
■ RoboRealm
Case Study: Data and Analytics Monetization With Knowledge Graphs and AI (Turku City Data)
5 Steps to Practically Implement AI Techniques
How to Optimize Business Value From Data and Analytics Investments … Finally
How to Use Machine Learning, Business Rules and Optimization in Decision Management
Five Ways Artificial Intelligence and Machine Learning Deliver Business Impacts
Hype Cycle for Artificial Intelligence, 2020
The Present and Future of Artificial Intelligence (Presentation Deck)
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