Page 33 - STRATEGY Magazine

-Elon Musk
And it is not just consumer data being targeted by AI. The Internet of Things (IoT) refers to the group of traditional machines, devices, and other entities that are now being equipped with electronics, sensors, and computer connectiv- ity. These so-called “smart products”—which encompass ev- erything from light bulbs to warehouses—can automatically collect and process data and then take a predetermined ac- tion. Many of them are found in “smart homes,” which can turn off lights in empty rooms, adjust the interior climate, and send video to a homeowner’s smartphone whenever someone approaches the front door. In addition, municipali- ties are embracing the IoT concept for applications ranging from identifying open parking spaces in downtown areas and automatically illuminating streetlights at dusk to real-time water quality monitoring and automated electricity meter readings.
ALL COMPANIES GREAT AND SMALL
So how will the big data–AI merger change the world of business and commerce? One direct consequence will be
the elevation in importance of the chief data officer (CDO). Many companies already employ CDOs who largely focus on compliance issues and regulatory documentation. But going forward, the role of the CDO will morph into a proactive function that will involve gathering and interpreting data
for strategic purposes, as well as using data to drive innovation, increase efficien- cies, and improve customer experi- ences.
According to Scientific Amer- ican, by 2027 there will be so much internet connectivity that the amount of data generated will double every 12 hours.
Much like the es-
tablished software-
as-a-service (SaaS) industry, data may emerge as a service purchased from a community of cloud-based providers. For many companies, it is more cumbersome to allocate resourc- es toward collecting and analyzing accessible but complex data than simply to pay another company to do it for them.
While larger companies will certainly facilitate the union of big data and artificial intelligence, many smaller, highly specialized firms will also play a huge role. To be sure, the giants of Silicon Valley have been experimenting with AI in search engines, electronic assistants, and many other appli- cations for quite some time. On the other hand, there are dozens of startup companies in the healthcare sector who are trying to leverage AI and big data to improve diagnostic imaging, detect early warning signs of patient deterioration, and design personalized health management systems. And
strategybg.com 31