MIS716

Artificial Intelligence for Business

Module 2: With Great Power Comes Great Responsibility

New Frontier
Technologies
(Power)

Responsible AI
(RAI)

AI Risks
(AIR)

Deakin University CRICOS Provider Code: 00113B - A/Prof Lemai Nguyen MIS716 AI for Business Slide 2
Topic 4: New Frontier Phenomena of Power and Risk

AI Applications
and New
Frontier
Technologies

A2 Project

AI Risks
(AIR)

Deakin University CRICOS Provider Code: 00113B - A/Prof Lemai Nguyen MIS716 AI for Business Slide 3
New Frontier Phenomena of Power

Social Media
Intelligence
(Background
analysis)

Deakin University CRICOS Provider Code: 00113B - A/Prof Lemai Nguyen MIS716 AI for Business Slide 4
Social Media Background Analysis

• Look for right persons

• Social media can provide a
wealth of information into
someone’s personality,
lifestyle and behaviours.

Why?

https://cloud.ibm.com/docs/person
ality-insights?topic=personality-
insights-models#models

https://www.welcome.ai/tech/personalization/ibm-watson-personality-insights

Deakin University CRICOS Provider Code: 00113B - A/Prof Lemai Nguyen MIS716 AI for Business Slide 5
Personality Analysis

https://medium.com/taraaz/https-medium-com-taraaz-human-rights-implications-of-ibm-watsons-personality-insights-942413e81117

Philip J., Shah D., Nayak S., Patel S., Devashrayee Y. (2019) Machine Learning for
Personality Analysis Based on Big Five Model. Springer, Singapore.
https://doi.org/10.1007/978-981-13-1274-8_27

Deakin University CRICOS Provider Code: 00113B - A/Prof Lemai Nguyen MIS716 AI for Business Slide 6
Example - IBM Personality Insights
• Targeted marketing
• Product/service offers
• Personal connections/ dating
• Hiring/ resume writing

• NLP
• Open-Vocabulary Deployment and
• Social media can provide a • Linguistic Inquiry and
wealth of information into Word Count (LIWC)
Application
someone’s personality, dictionary
• Want to profile consumers behaviours, and values
• ML and more https://cloud.ibm.com/docs/personality-
• Which aspects of a product insights?topic=personality-insights-
resonate with a person usecases#ucMarketing
• What factors influence
their decision making Analysis
Data

Business needs

https://cloud.ibm.com/docs/person
ality-insights?topic=personality-
insights-models#models

Deakin University CRICOS Provider Code: 00113B - A/Prof Lemai Nguyen MIS716 AI for Business Slide 7
Job Applicant Ranking System

https://www.youtube.com/watch?v=0ZwNQmDmP3Y&t=2s

Deakin University CRICOS Provider Code: 00113B - A/Prof Lemai Nguyen MIS716 AI for Business Slide 8
New Frontier Phenomena of Power

Social Media
Intelligence
(Sentiment Analysis)

Deakin University CRICOS Provider Code: 00113B - A/Prof Lemai Nguyen MIS716 AI for Business Slide 9
Sentiment Analysis

• Need to be informed about

customer dislikes and likes
to stay competitive ✓ Understand what customers like and dislike about a product/service
• Sentiment analysis provides
a solution for quickly
✓ Compare product reviews to those of competitors
gleaning insights from ✓ Get the latest product insights in real-time
reviews ✓ Save on manual data processing time

Why?

Deakin University CRICOS Provider Code: 00113B - A/Prof Lemai Nguyen MIS716 AI for Business Slide 10
Sentiment Analysis Example
Vu et al., 2017

• Need to know dining

behaviours of tourists for
strategic planning and
target marketing
• Questionnaires are time
• TripAdvisor site
consuming and inefficient
• 40,000 restaurant reviews
made by tourists on 2,265
restaurants
• Restaurant name,
Business needs restaurant cuisine, review • Using NLP and ML to
extract and analyse • Italian, Indian, and French tourist
text, user ID, user location,
emotions have strong preference for their
and date visited
• Italian and Indian own national cuisine
restaurants were included • Travel package developers can
provide Japanese and Thai to
Indonesian tourists, and Chinese
Data understanding cuisine to Malaysian tourists
Analysis

Implications

Deakin University CRICOS Provider Code: 00113B - A/Prof Lemai Nguyen MIS716 AI for Business Slide 11
Topic 4: New Frontier Phenomena of Power and Risk

New Frontier
Technologies

Deakin University CRICOS Provider Code: 00113B - A/Prof Lemai Nguyen MIS716 AI for Business Slide 13
AI Accelerators

Big Data

Scalable and
Flexible Database
Open Source Management
Systems

Processing
Internet of Things
Technologies

Cloud-based AI

Deakin University CRICOS Provider Code: 00113B - A/Prof Lemai Nguyen MIS716 AI for Business Slide 14
 provides large amounts of data for AI to learn more quickly
Big Data from and improve model performance

• Search Giant
• Evolved its service to take
advantage of their data
• Personalised and targeted
offers to its users and clients
• Funnel more channels to
collect data

Google

https://www.techentice.com/the-data-veracity-big-data/

Deakin University CRICOS Provider Code: 00113B - A/Prof Lemai Nguyen MIS716 AI for Business Slide 15
Data Technologies highly scalable database technologies have been
developed to better support AI performance

Relational Database

• Structured Data
• Mature Technology
• ACID-Compliant (Atomicity, Consistency,
Isolation, Durability)

Non-relational Database

• Semi-Structure/Unstructured Data
• Variety of Forms
• Scalable, Flexible, Distributed

Deakin University CRICOS Provider Code: 00113B - A/Prof Lemai Nguyen MIS716 AI for Business Slide 16
Big Data and Data Processing

https://www.youtube.com/watch?v=bAyrObl7TYE

Deakin University CRICOS Provider Code: 00113B - A/Prof Lemai Nguyen MIS716 AI for Business Slide 17
 GPUs have been driving many recent AI
Processing Technologies advances, especially for deep learning

https://course.fast.ai/gpu_tutorial.html

https://www.youtube.com/watch?v=-P28LKWTzrI

Deakin University CRICOS Provider Code: 00113B - A/Prof Lemai Nguyen MIS716 AI for Business Slide 18
Cloud-based AI support AI applications in a flexible and scalable
environment without huge initial investments,
enabling rapid AI growth

COST SPEED SCALABILITY PRODUCTIVITY PERFORMANCE

RELIABILITY SECURITY

Deakin University CRICOS Provider Code: 00113B - A/Prof Lemai Nguyen MIS716 AI for Business
Slide 19
Cloud-based AI

• Types of Cloud Computing

• Public Cloud
• Private Cloud
• Hybrid Cloud
• Types of cloud services:
• Infrastructure as a service (IaaS)
• Platform as a service (PaaS)
• Serverless computing
• Software as a service (SaaS)

Deakin University CRICOS Provider Code: 00113B - A/Prof Lemai Nguyen MIS716 AI for Business
20
Internet of Things connects devices and provides large amounts of data for AI
to learn more quickly from and improve model
performance

https://youtu.be/uEsKZGOxNKw

Deakin University CRICOS Provider Code: 00113B - A/Prof Lemai Nguyen MIS716 AI for Business Slide 21
Internet of Things connects devices and provides large amounts of data for AI
to learn more quickly from and improve model
performance

• GE jet engine takes a ‘snapshot’ Smart Traffic Management

every second of over 5,000
parameters including airspeed
calibration, altitude, cooling,
exhaust gas temperature, and
flow, and ground speed.
• Boost performance by 287 times
while also delivering a seven-fold
reduction in costs.

Predicting
equipment
breakdown Smart Waste Collection

Deakin University CRICOS Provider Code: 00113B - A/Prof Lemai Nguyen MIS716 AI for Business Slide 22
Gartner’s Four Main AI Technology Sources

Enterprise App Systems

Suite Vendors Integrators
• AWS, MS Azure, • SAS, Microsoft,
Google, Microsoft DataRobot,
Teams • CRM, HCM, ERP, MathWorks,
and SCM Rapidminer etc. • Accenture, TCS,
Cognizant, IBM,
Data science & Infosys
Cloud Service
ML Platform
Providers
Vendors

Deakin University CRICOS Provider Code: 00113B - A/Prof Lemai Nguyen MIS716 AI for Business Slide 23
Gartner’s Reviews for Data Science and Machine Learning (ML)
Platforms Market

• Leaders execute well, well positioned for

tomorrow

• Visionaries have a vision for changing market

rules, but do not yet execute well.

• Niche Players focus successfully on a small

segment

• Challengers execute well today, but do not

demonstrate an understanding of market
direction.

https://www.kdnuggets.com/2020/02/gartner-mq-2020-data-science-machine-
learning.html

Deakin University CRICOS Provider Code: 00113B - A/Prof Lemai Nguyen MIS716 AI for Business Slide 24
Faster, More Accurately, Less Expensively

Data re-identification

Deakin University CRICOS Provider Code: 00113B - A/Prof Lemai Nguyen MIS716 AI for Business Slide 25
Exponential Technologies Enabling the New Frontier

AI Risks
(AIR)

Deakin University CRICOS Provider Code: 00113B - A/Prof Lemai Nguyen MIS716 AI for Business Slide 26
 https://www.youtube.com/watch?v=qjff5IZXtuA&t=2s

Deakin University CRICOS Provider Code: 00113B - A/Prof Lemai Nguyen MIS716 AI for Business Slide 27
AI Risks Frameworks

https://www.mckinsey.com/business-functions/mckinsey-analytics/our-
insights/confronting-the-risks-of-artificial-intelligence
PwC McKinsey

Regulatory
Model Technology Conduct and People Market Supplier
Compliance

https://www2.deloitte.com/content/dam/Deloitte/nl/Documents/innovatie/deloitte-nl-innovate-lu-ai-and-risk-management.pdf
Deloitte

Deakin University CRICOS Provider Code: 00113B - A/Prof Lemai Nguyen MIS716 AI for Business Slide 28
AI Risks (AIR) Framework in development

Performance

Ethical Security
Consumers
Company

AIR

Societal Control

Economic
Employees Society

Cause - Likelihood - Impact

Deakin University CRICOS Provider Code: 00113B - A/Prof Lemai Nguyen MIS716 AI for Business Slide 29
Performance Risks of using data and algorithms learning and imitating
human biases and prejudices

Risk of Errors: the risk of AI

Risk of Opaqueness: AI is
making mistakes (affecting
not self-explainable
accuracy)

Risk of Instability of Lack of Feedback

Performance: model Process: feedback is
performance may decrease essential to ensure the AI
over time systems align with the goals

Deakin University CRICOS Provider Code: 00113B - A/Prof Lemai Nguyen MIS716 AI for Business Slide 30
Mili

My Insulin Level Information

Conceptualised by Deakin Researchers
Prototyped by Navy Design
• smart phone app for managing diabetes
• Patient / Community / Clinician / Mili Vendor

AskMili
• Chatbot version of Mili

Deakin University CRICOS Provider Code: 00113B - A/Prof Lemai Nguyen MIS716 AI for Business Slide 31
AskMili’s Performance Risks

Patient
Risk of Instability Lack of Feedback
of Performance Process
• Receiving •?
incorrect • ?
interpretation of • My care plan has
glucose levels changed

Risk of Errors Risk of Opaqueness

Risk of Instability Lack of Feedback

of Performance Process
• Giving incorrect •?
interpretation of •?
glucose levels • Why doesn’t
work work now?

Mili Vendor
Risk of Errors Risk of Opaqueness

Deakin University CRICOS Provider Code: 00113B - A/Prof Lemai Nguyen MIS716 AI for Business Slide 32
Security AI is subject to misuse, abuse, and attack

Cyber Intrusion: may Privacy: using personal

cause data loss or information can intrude
systems breakdown privacy

Open-source software: Adversarial attacks:

organisations don't have fooling ML models by
full control malicious data

Deakin University CRICOS Provider Code: 00113B - A/Prof Lemai Nguyen MIS716 AI for Business Slide 33
Control

Inability to Control Malevolent

Risk of AI misbehaving: AI fails
AI: the lack of governance may
to function as expected and
lead to the inability to control
harms users and others
AI and misalignment.

Deakin University CRICOS Provider Code: 00113B - A/Prof Lemai Nguyen MIS716 AI for Business Slide 34
Economic

Liability risk:
Risk of concentration companies may be
Risk of job
of power: data-based held liable for data,
replacements
monopolies algorithms, intentions
and consequences

Deakin University CRICOS Provider Code: 00113B - A/Prof Lemai Nguyen MIS716 AI for Business Slide 35
Societal

Risk of autonomous Risk of an intelligence divide:

weapons proliferation: AI can influence thoughts and
Malicious military robots or decisions – fake news,
killer robots election manipulation

Deakin University CRICOS Provider Code: 00113B - A/Prof Lemai Nguyen MIS716 AI for Business Slide 36
Ethical

Values misalignment Risk of bias: AI may

risk: conflicts between inherit the bias from data
different values in society and human developers

Deakin University CRICOS Provider Code: 00113B - A/Prof Lemai Nguyen MIS716 AI for Business Slide 37
A2: Introduction

A2 Project

Deakin University CRICOS Provider Code: 00113B - A/Prof Lemai Nguyen MIS716 AI for Business Slide 38
Upcoming next week – Topic 5

AI Risks (AIR)
recap

Case studies

Responsible
AI
(RAI)

Deakin University CRICOS Provider Code: 00113B - A/Prof Lemai Nguyen MIS716 AI for Business Slide 39