One of the best parts of being Forrester’s CEO is that I have hundreds of analysts who help me understand new technology. So I thought I would share the wealth and pass on some of that knowledge to my fellow CEOs. I will be putting out a post about every quarter focusing on a technology that has three characteristics: 1) in the news; 2) frequently misunderstood; and 3) CEOs should understand it. First stop … artificial intelligence.
What Is AI?
It’s using computers to detect patterns and make predictions. Example: using a software program to identify which of your customers are not going to renew.
Today’s AI is decidedly unsexy — it’s not about killer robots, computers curing cancer, or runaway autonomous vehicles. If the AI application your company is building might show up in a Hollywood movie or amaze a layperson, it is likely doomed to failure and will be a titanic waste of time and money. True applications are quietly valuable, modest, and they won’t impress your mother.
How Does AI Work?
AI is just another computer program. Step one: Obtain a relevant, clean, and well-formatted data set. Step two: Feed the data to machine-learning algorithms to build and train a model (formulas). Step three: Use the model to predict and find patterns.
Confused? Here’s an example …
Like any good CEO, you don’t want to lose customers. So you go to your CIO and say, “Build an AI system that will predict which of our customers are going to churn.” Here’s what they will do:
Step one: They will gather up data on customers from last year and put that data in a consistent form. Think an Excel spreadsheet with the first row as “Customer 1” with columns showing information that will be relevant to whether they reupped with you or not — things like “tenure,” “engagement,” or “dollars spent.”
Continue reading: https://www.forbes.com/sites/forrester/2022/04/06/artificial-intelligence-for-ceos/?sh=2a897af8f4e3
What Is AI?
It’s using computers to detect patterns and make predictions. Example: using a software program to identify which of your customers are not going to renew.
Today’s AI is decidedly unsexy — it’s not about killer robots, computers curing cancer, or runaway autonomous vehicles. If the AI application your company is building might show up in a Hollywood movie or amaze a layperson, it is likely doomed to failure and will be a titanic waste of time and money. True applications are quietly valuable, modest, and they won’t impress your mother.
How Does AI Work?
AI is just another computer program. Step one: Obtain a relevant, clean, and well-formatted data set. Step two: Feed the data to machine-learning algorithms to build and train a model (formulas). Step three: Use the model to predict and find patterns.
Confused? Here’s an example …
Like any good CEO, you don’t want to lose customers. So you go to your CIO and say, “Build an AI system that will predict which of our customers are going to churn.” Here’s what they will do:
Step one: They will gather up data on customers from last year and put that data in a consistent form. Think an Excel spreadsheet with the first row as “Customer 1” with columns showing information that will be relevant to whether they reupped with you or not — things like “tenure,” “engagement,” or “dollars spent.”
Continue reading: https://www.forbes.com/sites/forrester/2022/04/06/artificial-intelligence-for-ceos/?sh=2a897af8f4e3
