StevensC_IST 305_Individual Researsch Paper

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1 The Use of Artificial Intelligence in Today’s Technological Workplace Christopher Stevens Monte Ahuja Business College, Cleveland State University IST 305: Information Technology for Competitive Advantage Professor Abdullah Oguz, PMP November 24 th , 2020

2 Artificial Intelligence Today Artificial Intelligence, or A.I. has long been a staple of science fiction, ranging from Robby the Robot, to Data on Star Trek: The Next Generation. The promise of these tales has been the concept of a machine that can think just like a living being, and often be superior to the living organism in mental capacity. Ultimately, the reality of artificial intelligence does not properly align to our notions derived from science fiction. Artificial intelligence has advanced swiftly in the past twenty years with practical applications in our world today. Artificial Intelligence is defined today as a term for “computer systems [that] can learn from data, text, or images and make intentional and intelligent decisions based on that analysis.” (Chin, 2020) . The growth in A.I. is tied to our explosive growth in hardware computing power. Moore’s law states that processing power will double every two years, and while it’s more accurate to say that period of time has shrunken in recent years to less than two years, the pace of processor speeds leaping forward is fast. This growth in processing power has directly powered the capability of artificial intelligence. A.I.’s capability growing in turn fuels it’s application in multiple businesses and use. To understand why that is, deeper understanding is needed around the definition of A.I. Artificial intelligence needs to have intention behind its processing it to properly mimic the thinking of a living being. More importantly, artificial intelligence must be able to make these decisions based on the input of real time data. The previous generation of automated response bots for example, were only able to process responses that were predetermined and exactly matched the input from the user trying to converse with it. These response bots were not capable of engaging in contextual conversations to understand that different variations of “I need assistance” should all generate the same response. A human would still need to intervene and

3 either map those responses, or the conversation would need to transfer to a human being to continue. Artificial intelligence on the other hand, can take the sum of its experience, and data from all those previous conversations and respond in context based on the desired outcome that someone programs it with. The intentionality behind that process is key, though the AI is still subject to the flaws and biases of the person programming it (West, 2018) . Secondly, intelligence needs to be a part of the system. A.I. works in conjunction with machine learning and big data insights to enable the decisions that A.I. can undertake with intentionality. Human fallibility is even more critical as an area to put appropriate guardrails around, as there are many considerations that go into making a decision that oftentimes we as human beings are not conscious of. Things that go beyond the surface and delve into harder to quantify things like feelings, equality, and biases. If the programmer relies solely on data, or approaches programming from a very specific worldview than those faults can become prevalent in the A.I. and become a counterproductive system (West, 2018) . Lastly artificial intelligence needs adaptability to learn as it makes decisions and if needed, change future decisions based on what was learned previously. Humans are always adapting as circumstances around them change. Various and multiple inputs, lessons learned, changes in the surrounding environment all can happen in the moment and artificial intelligence needs to be able to adapt to those shifting circumstances. In prior generations computer systems were able to respond to a preprogrammed circumstance, and if that circumstance changed, the system could not cope. Adaptable systems can learn as they are used have the potential of improving efficiency over time, while drastically reducing the need for human intervention on tasks like scheduling or requests for updates on previously asked for help. Together, these factors come together to form the artificial intelligence systems we use today (West, 2018) .

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4 How Can Artificial Intelligence be used in Today’s Business? Artificial intelligence has applications in today’s business world that run far deeper than most people realize. From banking, to transportation, to GPS locations based maps, to SMS, or text based marketing, or plagiarism checkers used by colleges like Cleveland State University or even to our e-mail boxes, artificial intelligence is in the background enabling many of the modern tools we use today. In fact, many things we take for granted, or assume a human must be involved in to complete properly is really being handled by A.I. There are a few areas where artificial intelligence is the enabler or a driving force behind the business operations of a and industry. In marketing, A.I. has enabled companies who specialize in conversational marketing to scale in terms of their ability to handle thousands of test message conversations at a time. Drips Software is the leader in conversational text-based marketing. In the days prior to artificial intelligence advanced enough to handle this kind of traffic, a large pool of employees would have been needed to respond to every text message sent in response to Drips’ outbound marketing efforts. That type of human capital expenditure made conversational text message- based marketing an industry that simply wasn’t feasible ten years ago. Companies were better served enticing customers to call into a staffed call center to converse with a human operator. Thanks to A.I., Drips was able to process over 2.5 billion touchpoints in the last year, a number that could not be achieved without artificial intelligence. The secret to that success isn’t just in the scale at which Drips can send messages. Simple chatbot platforms that allowed you to blast out thousands of text messages existed prior to Drips founding. The key to Drips success is a conversational A.I. combined with a Natural Language Processor. Both were developed in house by Drips to create natural sounding conversations that a consumer would never know is

5 happening with an artificial intelligence. Those 2.5 billion conversations create a vast database that the artificial intelligence can call on to inform, grow and adapt to in real time with customers conversing via text messaging all over the country simultaneously (Drips, 2020) . The second industry that is growing as a direct result of artificial intelligence is banking and finance. In the world of banking and finance computers have been a staple in the industry for twenty years, but in the past ten years there have been significant developments in the industry because of the use of A.I. Most consumers know that when applying for a large purchase like a house or a car, their credit score is an important factor in the credit decision that will grant them financing. What many consumers are unaware of though, is that most credit applications are never seen by a human and are actually decided using artificial intelligence. Many factors play into the way the A.I. decides and human beings are still involved when the A.I. does not have a high confidence factor when rendering a decision, but for those that meet the criteria, a credit application can pass directly to approval in a manner of minutes. Factors the A.I. look at include income, FICO score, current revolving debt like credit cards, past payment history, amount of credit requested in the past 12 months and other proprietary factors. Given the sensitive nature of the information banks don’t generally publicize the exact way their A.I. provides decisions on credit requests, but it is estimated that bank losses are reduced by 25% on declining customers likely to be delinquent which is a significant cost savings (Faggella, 2020 ) . Another area A.I. is leading the charge technologically is in fraud prevention. Banks process billions of transactions daily, and while A.I. plays a huge role in enabling commerce on- line and in person, a less well-known role is in defending consumers and bank from fraud. For the past ten years banks have been developing artificial intelligence that can sift through the mountains of data to learn what types of transactions may be fraudulent. Once the system

6 recognizes potential fraud it has also grown to the place where the A.I. can deny the transaction automatically, or if the fraud potential is lower, flag it for a human analyst to review and investigate. Credit card processors like Mastercard and Visa have high thresholds for fraud liability protection for consumers because they have the systems in place to help safeguard consumers. This not only saves money for the bank, but saves time, hassle, and money for consumers. Banking and finance are heavily regulated, but their operations are enhanced using A.I. (Faggella, 2020 ) . Evaluation of Artificial Intelligence and its Potential Benefits Artificial intelligence was a buzzword being used in the technology space for years, but as illustrated above it has moved past buzzword status to being deployed in the real world. The benefits of artificial intelligence are numerous. Saving time, money, resources, fueling growth and allowing operations at a scale not possible otherwise, A.I. is changing how many businesses ultimately do their business. However, there are other considerations as well. In the rush to utilize artificial intelligence, many industries are not fully considering how best to utilize it. In the finance space, investment banks are deploying A.I. in equity trading and analyzing investments in capital markets. These leaps forward are not without risk. Our economy is susceptible to fluctuations that ripple through entire industries. The mortgage crisis of 2008 plunged the United States into a recession that required billions of dollars in government aid to start to reverse (Kosakowski, 2020) . Artificial intelligence still has a major issue and it is that human beings still program, train and deploy these systems. In the case of investment banking an unscrupulous programmer may intentionally build in a defect to the system, or an inherent bias that makes the system vulnerable to bad actors. The consequences in the finance industry are enormous and the appropriate

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7 safeguards need to be in place to ensure the safety of our economy (Investment Banking Council of America, 2019) . Overall, artificial intelligence is going to continue to grow in the future, whether in industrial applications, self-driving cars or Netflix algorithms recommending the next piece of entertainment we watch. The question is not one of, if we should continue to use and deploy A.I. networks, but how best to deploy them. The upside for artificial intelligence is significant, but like all technology human intervention and care is needed.

8 Works Cited Chin, C. (2020, August 10). Why the world is at a turning point with artificial intelligence and what to do about it . Retrieved from The Brookings Institution: https://www.brookings.edu/events/why-the- world-is-at-a-turning-point-with-artificial-intelligence/#:~:text=Artificial%20intelligence%20is %20a%20term,or%20decisions%20and%20even%20assume Drips. (2020, September 15). Why Drips? Retrieved from Drips.com: https://www.drips.com/why-drips Faggella, D. (2020 , April 11). Everyday Examples of Artificial Intelligence and Machine Learning . Retrieved from emerj.com: https://emerj.com/ai-sector-overviews/everyday-examples-of-ai/ Investment Banking Council of America. (2019, September 11). AI in Investment banking - The New Frontier . Retrieved from investmentbankingcouncil.org: https://www.investmentbankingcouncil.org/blog/ai-in-investment-banking-the-new-frontier Kosakowski, P. (2020, May 4). The Fall of he Market in the Fall of 2008 . Retrieved from Investopedia: https://www.investopedia.com/articles/economics/09/subprime-market-2008.asp West, D. M. (2018, October 4). What is artificial intelligence? Retrieved from The Brookings Institution: https://www.brookings.edu/research/what-is-artificial-intelligence/

StevensC_IST 305_Individual Researsch Paper

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