With the recent release of GPT-4, the next generation of language processing AI, there is a renewed focus on the potential of Artificial Intelligence (AI) to transform industries. However, despite the hype, many companies are still struggling to extract real value from AI. It is important to recognize that AI is no different from any other technology in that it requires the right application to deliver tangible benefits. If companies do not know how to effectively leverage AI, it can become just another solution searching for a problem to solve. In this article, we will examine how the three primary pillars of technology – people, processes, and technology – are critical in enabling companies to extract value from AI.

People

The first pillar of technology is people, and this is where many companies often fall short when it comes to AI. AI technology is only as good as the data it is fed and the people who create and manage the data. This means that companies need to invest in building the right team to develop and manage their AI initiatives. This includes data scientists, machine learning engineers, and other experts who understand how to develop AI models that can deliver real value.

However, building the right team is not enough. Companies also need to ensure that their employees understand the potential of AI and how it can be applied to their specific roles. This requires investment in training programs that teach employees about the basics of AI, how it works, and how it can be used to improve their work. By educating employees about AI and its potential, companies can encourage a culture of innovation and collaboration that will help them to derive real value from AI.

Processes

The second pillar of technology is processes. This refers to the procedures and workflows that companies use to manage their operations. In the context of AI, processes are critical because they determine how AI models are trained, tested, and deployed. Companies need to develop processes that enable them to identify the right data sources, train AI models, and integrate them into their operations seamlessly.

To do this, companies need to take a strategic approach to AI. They need to identify specific use cases where AI can deliver real value and develop a roadmap for implementing AI across their organization. This roadmap should include a detailed plan for data collection, model development, and deployment, as well as a plan for monitoring and updating the models to ensure that they remain effective over time.

By taking a strategic approach to AI, companies can ensure that they are developing models that are aligned with their business goals and that they have the processes in place to leverage them effectively. This will enable them to derive real value from AI and gain a competitive edge in their industry.

Technology

The third pillar of technology is technology itself. This refers to the hardware and software that companies use to develop, deploy, and manage their AI initiatives. AI technology is advancing rapidly, and companies need to stay up-to-date with the latest developments to ensure that they are leveraging the most effective tools and techniques.

However, it is important to note that technology is not the only factor that determines the success of AI initiatives. Companies also need to focus on the people and processes involved in developing and managing AI models. They need to ensure that they have the right team in place, the right processes in place, and that they are using the right tools and techniques to develop and deploy their models effectively.

AI is no different from any other technology in the sense that it requires the right application to deliver tangible benefits. Companies need to focus on the three primary pillars of technology – people, processes, and technology – to derive real value from AI. They need to invest in building the right team, developing the right processes, and using the right tools and techniques to leverage AI effectively. By doing so, they can gain a competitive edge in their industry and position themselves for long-term success in the era of digital transformation.

However, there is one element to the 3 pillars that is critical to ensuring sustainability throughout the application of AI in every project or system, and that is data. Without accurate data it is very difficult and maybe near impossible to address the other pillars. You could almost refer to data as a very foundational element, however, I won’t for the sake of this article as once AI is farther advanced, we could deduct that the accuracy of data can be assumed; but again, I digress.

As an experiment, I took several trending articles that were based on AI and replaced the word with data, interesting enough, a majority percentage of the structured text remained readable and very much in line with the original intent. But this assumes one thing, that AI and data share attributes. For AI to be useful it has to be accurate. The same is true for data.

Below we will discuss some key areas in which data needs to be managed and governed to extract value and trust when using systems in general, but especially when using AI. 

Understanding the Difference Between Data Management and Data Governance

Data management and data governance are two related concepts in the field of data management. While they are interrelated, they refer to distinct aspects of data management.

Data management refers to the process of collecting, storing, organizing, and analyzing data to support business operations. It involves a set of technologies, tools, and processes that enable organizations to manage data effectively. Data management includes activities such as data integration, data modeling, data quality, data warehousing, and data analytics.

Data governance, on the other hand, refers to the management of the policies, procedures, and standards for managing data. It is a set of practices that ensure the proper use, management, and protection of an organization’s data assets. Data governance is concerned with the overall strategy and decision-making process for data management. It includes activities such as data stewardship, data privacy, data security, data quality, and compliance.

In other words, data management focuses on the technical aspects of managing data, while data governance focuses on the policies, standards, and processes for managing data.

Both data management and data governance are essential components of a comprehensive data management strategy. Data management provides the tools and processes for managing data effectively, while data governance ensures that data is managed in a consistent and compliant manner.

For example, data management might involve the use of data integration tools to bring data from various sources into a single data warehouse. Data governance would ensure that the data in the warehouse is accurate, complete, and meets regulatory requirements.

In summary, data management and data governance are two distinct but related aspects of data management. While data management focuses on the technical aspects of managing data, data governance focuses on the policies, standards, and processes for managing data. Together, they provide a comprehensive approach to managing data effectively and ensuring its proper use, management, and protection.

Collecting Data That Allows us to Better Trust AI Analytics 

Data collection is an essential aspect of technology, as it provides the information needed to develop and improve various technologies. However, the collection and use of data can raise concerns about privacy and trust. To facilitate trust in data collection, here are five ways that can be implemented:

Transparency

Transparency is crucial in building trust in data collection. Organizations must be transparent about the types of data they are collecting, why they are collecting it, and how they will use it. By being transparent, organizations can show that they are accountable and responsible for the data they collect.

Informed Consent

Informed consent is another important aspect of data collection. Individuals should be informed about the data being collected, how it will be used, and who will have access to it. They should also have the right to opt-out of data collection if they are not comfortable with it. By providing informed consent, individuals can make informed decisions about their data and feel more confident about data collection.

Data Security

Data security is essential to build trust in data collection. Organizations must take measures to secure the data they collect, store, and use. This includes implementing data encryption, access controls, and other security measures to prevent data breaches and unauthorized access.

Data Governance

Data governance refers to the policies, procedures, and controls that govern data collection and use. Organizations must have clear and well-defined data governance policies to ensure that data is collected, stored, and used ethically and legally. This includes policies on data retention, data access, and data sharing.

Ethical Use of Data

Finally, the ethical use of data is essential to build trust in data collection. Organizations must ensure that the data they collect is used ethically and does not violate the privacy or rights of individuals. This includes implementing measures to prevent bias in data collection, analyzing, and using data in a responsible manner.

The impact of trust in data collection on the application of technology is significant. By building trust in data collection, individuals and organizations will be more willing to share data, collaborate on data-driven projects, and adopt new technologies that rely on data. This, in turn, will enable organizations to develop more innovative solutions that can improve people’s lives and address complex problems.

In summary, trust in data collection is critical to the effective application of technology. By implementing measures such as transparency, informed consent, data security, data governance, and ethical use of data, organizations can build trust and enable the development of innovative solutions that can improve people’s lives.

11 Ways to Implement AI in Current Industry Processes

1. Fraud Detection: AI can be applied to financial transactions to identify fraudulent activity with greater accuracy and speed than humans. This can save businesses significant amounts of money by preventing losses due to fraudulent activity. AI algorithms can detect patterns in transaction data that would be difficult for humans to spot, and can also learn and adapt to new types of fraud as they emerge.
2. Predictive Maintenance: AI can be used to monitor equipment and predict when maintenance is needed before a failure occurs. By analyzing data on equipment performance, such as vibration, temperature, and other metrics, AI algorithms can identify patterns and anomalies that may indicate a problem. This can help businesses avoid costly downtime and repairs by addressing maintenance issues before they become critical.
3. Customer Service: AI can be used to provide better customer service through chatbots and virtual assistants. By analyzing customer data and interactions, AI algorithms can learn to understand customer needs and preferences, and provide personalized recommendations and assistance. This can improve customer satisfaction and reduce the workload on customer service teams, allowing them to focus on more complex issues.
4. Image and Video Analysis: AI can be used to analyze and categorize visual data, such as images and videos, to identify objects, people, scenes, and even emotions. This has many applications, such as in security and surveillance systems, where AI can automatically detect and alert operators to potential threats.
5. Supply Chain Optimization: AI can be used to optimize supply chain operations by analyzing data on inventory levels, demand, shipping times, and other factors. By using AI algorithms to predict demand and adjust inventory levels, businesses can reduce waste and improve efficiency, saving time and money.
6. Healthcare: AI can be applied to healthcare to help diagnose diseases, predict outcomes, and develop personalized treatment plans. By analyzing patient data, such as medical records, test results, and genetic information, AI algorithms can identify patterns and insights that can help physicians make more informed decisions.
7. Natural Language Processing: AI can be used to process and analyze natural language data, such as speech and text, to identify patterns, sentiment, and intent. This has many applications, such as in chatbots and virtual assistants, where AI can provide natural language interactions with users, or in sentiment analysis, where AI can analyze social media data to track customer sentiment about a product or service.
8. Personalized Learning: AI can be used to create personalized learning experiences for students by analyzing their learning styles, preferences, and progress. By using AI algorithms to identify areas where students need more support or challenge, educators can tailor their teaching methods and content to meet individual needs, improving learning outcomes. AI can also provide real-time feedback and recommendations to students, helping them to identify and address areas where they need improvement. Additionally, AI-powered educational tools can be used to create engaging and interactive learning experiences that can help students to better retain information and stay motivated.
9. Dynamic Scheduling: AI can be used to schedule gig economy type jobs, such as ride-sharing, delivery services, and freelancing, by analyzing real-time data on supply and demand. By using AI algorithms to predict demand and supply patterns, companies can optimize their scheduling process to ensure that there are enough workers available to meet customer demand at any given time. Additionally, AI-powered scheduling tools can factor in variables such as traffic, weather, and worker availability, to ensure that schedules are optimized for efficiency and worker satisfaction. This can help companies to reduce costs and improve customer satisfaction, while also providing workers with more flexible and predictable schedules.
10. Payment Prediction and Collections: AI can be used to analyze data on past payments and customer behavior to predict when payments are likely to be made, and to identify customers who may need to be contacted regarding overdue payments. By analyzing patterns in customer behavior, such as payment history, credit score, and transactional data, AI algorithms can predict which customers are likely to pay on time and which may require reminders or incentives to make payments. This can help businesses to improve their collections processes and reduce the risk of unpaid debts. Additionally, AI-powered collections tools can automatically send reminders and follow-up messages to customers, freeing up time for staff to focus on other tasks.
11. Automated Job Estimation: AI can be used to automate the job estimation process by analyzing data on past jobs, including labor, materials, and equipment costs. By using AI algorithms to identify patterns in historical job data, businesses can generate more accurate estimates for new jobs, improving profitability and reducing the risk of underestimating costs. Additionally, AI-powered estimation tools can learn and adapt to new types of jobs, and can factor in variables such as location, weather, and other external factors that can impact job costs. This can help businesses to improve their bidding process and win more contracts, while also reducing the risk of losses due to inaccurate job estimates.

Ways to Enable Trust in AI Driven Analytics

AI is only as good as the data in which it feeds the models and collecting accurate and reliable data is essential to building trust in AI analytics.

Here are some best practices for collecting data that allows us to better trust AI analytics:

1. Ensure Data Quality: The quality of the data is crucial to building trust in AI analytics. Data should be accurate, relevant, and up-to-date. To ensure data quality, businesses should establish data governance policies, including data validation and verification procedures.
2. Use Diverse Data Sources: Using diverse data sources can help to reduce bias and improve the accuracy of AI analytics. By collecting data from multiple sources, businesses can ensure that the data reflects a wide range of perspectives and is not skewed towards any particular group or viewpoint.
3. Ensure Data Privacy: Protecting the privacy of the data is essential to building trust in AI analytics. Businesses should establish data security policies to ensure that sensitive data is protected from unauthorized access or disclosure.
4. Ensure Transparency: Transparency is critical to building trust in AI analytics. Businesses should provide clear and concise explanations of how AI algorithms work, including the data inputs and the decision-making processes. This can help to build trust with stakeholders and ensure that the AI analytics are seen as fair and unbiased.
5. Use Human Oversight: Human oversight can help to improve the accuracy and fairness of AI analytics. Businesses should involve subject matter experts in the development and deployment of AI analytics, and should ensure that there is a process for reviewing and correcting any errors or biases that may arise. This can help to build trust in the AI analytics and ensure that they are seen as reliable and trustworthy.

The quality of data is essential to building trust in AI analytics. Diverse data sources, data privacy, transparency, and human oversight are critical factors to consider when collecting data for AI analytics. Accurate, relevant, and up-to-date data with proper governance policies, validation and verification procedures can ensure data quality. Using multiple sources, protecting data privacy, providing clear explanations of AI algorithms, and involving human experts can improve accuracy, fairness, and reliability of AI analytics. Following these best practices can help to collect data that allows us to better trust AI analytics.

---

AI Advisory Group is one of the most supportive executive leadership companies for small and medium size organizations. The information we provide in this article may contain both opinions, facts, statistics, and other source references. You should never make a decision solely based off of the information provided. Please feel free to contact us here for any questions, concerns, or additional information.