1 of 11

Experiencing M I S

Ninth Edition

Chapter Extension 2

Artificial Intelligence and Automation

Copyright © 2021, 2019, 2017 Pearson Education, Inc. All Rights Reserved

2 of 11

Artificial Intelligence and Automation

CE 2-1 Why is artificial intelligence important?

  • Organizations hope to use artificial intelligence (A I) to increase the automation of mundane tasks typically done by humans
  • A I could be used in a number of different autonomous systems including:
    • Self-driving cars, robots, commercial drones, agricultural systems, military platforms, surgical systems, and other smart devices.
  • Automation is the process of making systems operate without human intervention.

Copyright © 2021, 2019, 2017 Pearson Education, Inc. All Rights Reserved

3 of 11

Advances in A I

CE 2-1 Why is artificial intelligence important?

  • Researchers estimate the impact of A I:
    • There’s a 50 percent chance A I will outperform humans in all tasks in 45 years
    • There’s an 83 percent chance A I will take over all jobs paying less than $20 an hour within a few years
  • Cloud computing has advanced AI development because it has made scalable resources available at very low costs.

Copyright © 2021, 2019, 2017 Pearson Education, Inc. All Rights Reserved

4 of 11

Forces Driving A I Innovation

CE 2-1 Why is artificial intelligence important?

Figure C E 2-1 Forces Driving A I Innovation

Copyright © 2021, 2019, 2017 Pearson Education, Inc. All Rights Reserved

5 of 11

Practical A I Applications

CE 2-1 Why is artificial intelligence important?

Figure C E 2-2 Examples of Practical A I Applications

Copyright © 2021, 2019, 2017 Pearson Education, Inc. All Rights Reserved

6 of 11

Impact of A I

CE 2-2 How will A I and automation affect organizations?

  • U.S. Bureau of Labor Statistics the average employee in the U.S. makes $24.91 per hour
  • The true cost of an employee is 46 percent ($11.41) more
  • You won’t have to pay for overtime, paid leave, insurance, retirement contributions, etc.

Copyright © 2021, 2019, 2017 Pearson Education, Inc. All Rights Reserved

7 of 11

Productivity Gains from Automation

CE 2-2 How will A I and automation affect organizations?

Figure C E 2-4 Productivity Gains from Automation

Copyright © 2021, 2019, 2017 Pearson Education, Inc. All Rights Reserved

8 of 11

How Will This Impact Me?

CE 2-3 How will A I affect me?

  • Jobs requiring routine physical and mental tasks are prime candidates for automation
  • A I Experts estimate that by 2025, nearly 100 million workers could be taken out of the current U.S. labor force
  • They will be replaced by robots with I Q s higher than 90% of the U.S. population
  • You need to understand the economic implications of these historic changes

Copyright © 2021, 2019, 2017 Pearson Education, Inc. All Rights Reserved

9 of 11

The Goal of A I

CE 2-4 What is the goal of A I?

  • The goal of A I research is to create artificial general intelligence, or strong A I that can complete all of the same tasks a human can
  • Currently we have weak A I that is focused on completing a single specific task
  • Potential for superintelligence capable of intelligence more advanced than human intelligence

Copyright © 2021, 2019, 2017 Pearson Education, Inc. All Rights Reserved

10 of 11

How Does A I Really Work?

CE 2-5 How does A I work?

  • You need to understand how A I works so you can see how it could be applied to organizational problems
  • Machine Learning (a subset of AI) – the extraction of knowledge from data based on algorithms created from training data.

Copyright © 2021, 2019, 2017 Pearson Education, Inc. All Rights Reserved

11 of 11

I B M’s Watson

CE 2-5 How does A I work?

  • I B M’s Watson uses natural language processing (N L P), or the ability of a computer system to understand spoken human language, to answer questions
  • Watson can provide evidence-based answers for questions in fields like healthcare, transportation, education, social media, customer service, security, etc.

Copyright © 2021, 2019, 2017 Pearson Education, Inc. All Rights Reserved