JUL-AUG 2019

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12 INTECH JULY/AUGUST 2019 WWW.ISA.ORG COVER STORY makes operational predictions many times faster and more accurately than systems based on rules, thresholds, or schedules," according to SAS. "AI sepa- rates signal from noise, giving rise to advanced IoT devices that can learn from their interactions with users, ser- vice providers, and other devices in the ecosystem." "The challenge is that people have not developed the level of trust in ar - tificial intelligence and machine learn- ing that they have in other technolo- gies that automate tasks," says Oliver Schabenberger, COO and CTO of SAS. "People sometimes confuse automa - tion with autonomy, he adds. But have no fear: "AI does not eliminate the need for humans, it just enables them to do their work more effectively," he says. Defining AI applications Industrial AI can range from low-intel- ligence applications like automation to higher-end intelligence capable of de- cision making. It can also be controlled centrally or distributed across multiple machines. According to Gartner vice president and analyst Jorge Lopez, AI applications can be broken down into five levels of sophistication: ● Reactors follow simple rules but can respond to changing circumstances within limits (such as basic drones). ● Categorizers recognize types of things and can take simple actions to deal with them within a controlled environment (warehouse robots). ● Responders serve the needs of others by figuring out questions and situations (driverless cars, personal assistants). ● Learners gather information from multiple sources to solve complex problems (IBM Watson, wholly auto- mated military drones). ● Creators initiate a paradigm shift, such as inventing a new business model. They are not merely tools that people use; they have the potential to engineer actions harmful to humans. They will change humans' relation- ship to technology as well as people's roles within society and the econo- my, says Gartner. Therefore, "AI cre- ator applications require profound thought before development." These five artificial intelligence mod- els have three types of organization, says Gartner: standalone, federation, or swarm. A standalone AI system is an individual entity that acts by itself to solve problems. The enterprise exer- cises centralized control over it by over- seeing the entity as it performs. In a federation structure, says Gartner, multiple versions of an entity work in the same way but on different problems (e.g., robo-advisors, personal assistants). The enterprise can exercise central con- trol or give more autonomy to the enti- ties. In a swarm structure, multiple enti- ties work together on the same problem (e.g., Intel light show drones, Perdix drones). Control over execution is left to the machines entirely or requires only light human management. More than automation The most common place to start with AI is with automation, but experts say it is a mistake to stop there. The more powerful use of AI is to aid human de - cision making and interactions. Be- cause AI can classify information and make predictions faster and at higher volumes than humans can accom - plish on their own, those terabytes of data being produced by industrial IoT devices are being transformed into powerful tools today. In a recent blog post for indus- trial AI startup Petuum, author Atif Aziz says, "Some industry leaders are zooming past the basics: digitization, cloud infrastructure, monitoring and dashboards. They are putting newly acquired data to good use through AI-driven advanced analytics (e.g., uncovering patterns through system of systems) and automating complex processes. Some early adopters are implementing as many as 100 digital transformation initiatives simultane- ously or using AI to automate their core production processes across 30 or more plants," Aziz says. On the other end of the spectrum, "some folks still need to understand how AI can provide real value and balance the ROI with their limited Following wave Current AI adoption/maturity Early adopters High AI value at stake based on market size, pain points, and willingness to pay Automotive & assembly Telecom Oil & gas Insurance Media & entertainment Technology Basic materials Consumer packaged goods Chemicals & agriculture Transport & logistics Pharmaceuticals & medical products Travel Healthcare Industrials Public & social sector Banking Retail Medium Low High Medium Low Early AI adopters like retail and banking firms have reaped the benefits of AI, but it is not too late for fast followers, according to Petuum. AI has caught the attention of industrial innovators and naysayers alike. Source: McKinsey & Company "The speed of advancement in the industrial AI/ML space over the last three years affords a unique advantage to newcomers." AI adoption maturity, by industry

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