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10 Keys to AI Success in 2023

Contents

Introduction.......................................................................................................................................... 3

1 Assess Your AI Readiness................................................................................................................... 4

2 Deliver Business Alignment............................................................................................................... 9

3 Enable Trackable and Reliable AI Outcomes..................................................................................... 13

4 Understand ROI................................................................................................................................... 17

5 Reduce Bias......................................................................................................................................... 23

6 Retain, Upskill, and Scale Talent........................................................................................................ 26

7 Utilize Multimodal and Persistent Data............................................................................................ 29

8 Make Decisions and Execute.............................................................................................................. 32

9 Build Deep Technological Alignment................................................................................................. 37

10  Take Data Preparation Seriously........................................................................................................ 40

2
10 Keys to AI Success in 2023

INTRODUCTION
Introduction

The AI landscape is changing rapidly.


While some businesses still view AI as a novel concept, the era of value-driven AI, an era embodied by a
a large number of organizations recognize it as a commitment to measurable value from each AI project
technology that is having a positive business impact. that helps any organization grow and optimize its business.
Over 90% of enterprises already attribute a portion of
their revenue to AI.1 Similarly, McKinsey suggests that the However, the apparent growing utilization of these
share of organizations reporting at least 5% of earnings technologies doesn’t automatically mean that enterprises
before interest and taxes (EBIT) that’s attributable to are having a smooth ride. Many issues still plague
AI experienced a growth spurt in 2021 and remained AI projects, and some of them are universal across
relatively stable in 2022, at around 25%.2 industries and regions. Accountability issues, lack of
transparency, and technical complexity, along with the
This ongoing maturing of the market means that inability to retain talent, show actual ROI, and deliver
more and more organizations experience pressure to business alignment all contribute to AI stagnation.
continuously deliver results and show value from AI.
According to Gartner, by 2025, roughly 55% of enterprises AI progress is hard, but you don’t have to get stuck in
will be at the stabilization stage of AI—a stage marked by an endless loop of inertia. With this list detailing how
the growing number of production-grade AI projects, a organizations can improve their AI maturity and readiness,
more coherent collaboration amongst internal teams to you can enter 2023 with solid action items to tackle
deliver operational excellence around AI, and increased some of your toughest business problems and enable AI
support from C-suite to drive these initiatives. With these success for years to come.
evident trends, it is safe to say that we’re entering

1
DataRobot, Research Report: AI and the Power of Perception, July 19, 2022
2
 cKinsey & Company, The state of AI in 2022—and a half decade in review, Michael Chui, Bryce Hall, Helen Mayhew, Alex Singla, Alex Sukharevsky,
M
December 6, 2022
3
Gartner, Forecast Analysis: Artificial Intelligence Software, Worldwide, Alys Woodward, Anna Griffen, Alan Priestley, Jim Hare, Eric Hunter, Kevin
Quinn, October 20, 2021 3
Assess Your
AI Readiness
10 Keys to AI Success in 2023 1

ASSESS YOUR AI READINESS


Assess Your AI Readiness

For organizations looking to build and scale their AI Enterprises know what they want AI to deliver:
initiatives, there is a seemingly infinite variety of AI
solutions. From revenue predictions by store location and • Measurable business value and robust ROI
department to forecasting of cloud storage, employee
• Models that meet regulatory and
attrition, credit risks, operational costs, and granular SKU-
compliance demands
level demand, there are hundreds of potential AI use cases
in every single industry. • Explainable insights that drive a better
understanding of their business and
Industries from healthcare and automotive to banking and
corporate risks
finance are pursuing the proper implementation of AI to
take advantage of the best AI solutions and realize their While it does take a sophisticated understanding of AI
transformative potential. Yet, AI is complicated, and many and ML to deliver tangible benefits to the business, AI
enterprises are still figuring out how to implement and readiness truly starts with well-established, clear business
gain value from the technology. objectives. Don’t fall into shiny new toy syndrome.
Organizations that want AI to be truly transformative
Before organizations can ask if their AI investments are
must understand their business objectives. A shipping
generating real ROI, they need to ask themselves a more
company that wants to implement AI to improve trailer
basic question: Is our organization truly ready for AI?
unload prioritization, optimize fuel burn, predict truck
Organizations can fall anywhere on the AI readiness arrival and departure delays, and clear up bottleneck
scale—with most currently in the awareness phase and locations is a good example of a company that has
only a handful making it to the transformational phase. precise business goals.
Many assume that the technology itself is the main
obstacle, but the organization’s entire environment is
essential—from upskilling staff and improving resources
to synthesizing systems and tools.

5
10 Keys to AI Success in 2023 1

ASSESS YOUR AI READINESS


Understanding AI Readiness Stages
While there are numerous ways to interpret and understand AI readiness, there are five basic levels that represent
the majority of organizations.

01
AI Interest—Still Searching
Level
The enterprise is interested in starting a dialogue about AI, but not in a strategic manner, and pilot projects and
experiments are not taking place.

02
Experimenting with AI
Level

Meetings regarding AI focus on knowledge-sharing and the inception of standardized conversations. AI begins
appearing in proofs of concept and even pilot projects.

03
Standardizing—AI in Production and Creating Value
The enterprise has at least one AI project that is updated continuously and has moved to production, and experts
Level

and technology are accessible across the enterprise. AI has an executive sponsor and a dedicated budget. Machine
learning is part of the day-to-day functions and is being used to assist with some information processing tasks.

04
Systematizing—AI is Used Pervasively to Create Value
Level

All new digital projects at least consider AI, and new products and services have embedded AI. A mature AI flow serves
as a basis for decision-making and is centrally managed with a standardized AI platform and processes.

05 Transformational AI
Level

AI is part of the DNA of a business and AI is being scaled throughout the organization with a prescriptive approach.

6
10 Keys to AI Success in 2023 1

ASSESS YOUR AI READINESS


Organizations that fail to properly gauge their level of AI Organizations at these levels often need to do a lot of
readiness are bound to slow down their journey toward foundational work, which includes, but is not limited to:
becoming an AI-driven enterprise.
• Start foundational conversations with internal
In order to produce accurate machine learning models, stakeholders about their AI strategy
you need the right data at your disposal. Organizations
need to seek out and ensure appropriate data quality • Build a better understanding of the “art of the
and data enrichment processes. And for that to happen, possible” with AI and where it can be applied
businesses need a good understanding of their data within the organization and, more importantly,
and its lifecycle. You can’t work with data that you don’t whether there’s enough data or problems to
even know exists, and you can’t build a coherent data tackle with AI
management process without understanding the full
• Seek out industry expertise, success stories,
lifecycle of that data. This journey is often bottlenecked by
and insights that might guide them in the
siloed teams, each one working off of their spreadsheets
right direction
or even segregated databases that aren’t exposed to the
rest of the business. • Figure out whether they have the tools and the
people to kick off the actual implementation
Virtually all organizations, even the ones that consider
or whether they need to advance their
themselves to be mature AI adopters, run into similar
understanding of potential AI projects before
problems. There are many ways of tackling these issues,
considering operational aspects, like the
but the first step toward a solution is admitting that
availability of data science talent
there’s a problem.

Organizations at lower AI readiness levels (Level 1, Enterprises at higher AI readiness levels (Level 3, Level 4,
Level 2) may need to focus on establishing processes Level 5) may need to focus on operational components,
and infrastructure that can help them “fail fast” with AI. advanced automation, talent retention, and internal
These companies will be spending a lot of time playing horizontal alignment on AI, as it’s being implemented in
catchup, since their competitors might already be more and more business units across the board.
exploiting AI to their advantage.

7
10 Keys to AI Success in 2023 1

ASSESS YOUR AI READINESS


Organizations at these levels often look at more specific
problems, since they have already been exposed to AI
and its capabilities. These include, but are not limited to:

• Improving automation throughout the ML


lifecycle, from data preparation to model
deployment, monitoring, and management.

• Broader push for a nuanced understanding of


ML capabilities across their whole organization,
which includes horizontal alignment between
business units, facilitated by knowledge
sharing, strategy meetings, internal consulting,
AI evangelism, and frameworks to analyze
AI performance.

• Wider application of employee engagement


practices aimed at improving collaboration
among all participants engaged in building and
managing AI projects.

• The growing need to understand, measure, and


analyze key performance indicators associated
with AI and its business impact.

• Continuous improvement of the AI ecosystem,


which can manifest itself through technological
standardization, application sophisticated
cloud-based tools, and infrastructure that
supports AI at scale.

8
Deliver Business Alignment
10 Keys to AI Success in 2023 2

DELIVER BUSINESS ALIGNMENT


Deliver Business Alignment

In uncertain economic times, data science teams and senior levels, and made up about 4% of the layoffs.5
responsible for AI might still be seen as cost centers In this environment, data science and analytics teams
that are ripe for structural change. Unless these teams have to be hyper-aligned with specific business and C-level
transparently align their goals and performance with goals, as high-performing organizations are nearly eight
business outcomes, the result of this misalignment times more likely to spend at least 20% of their technology
might be what we are now seeing in the marketplace— budgets on AI.6 So, teams that fail to achieve alignment
layoffs that affected job categories that were previously with business goals might be on the chopping block.
considered to be safe.
There’s also a strong argument to be made that alignment
Layoffs in early 2023 ranged from 7% to 33% of the and collaboration around value is simply the most logical
workforce in specific cases and include data-oriented strategy. Analyst research suggests7 that by 2025, CDOs
roles.4 A microcosm of this trend can be seen in the (Chief Data Officers) who establish value-stream based
reduction in force at two companies, which affected data collaboration will noticeably outperform their peers
scientist, data engineer, and data analyst roles at junior in driving value.

4
George Anadiotis, “The data science and AI market may be out for a recalibration,” ZDNET, June 13, 2022
Ibid.
5

6
 cKinsey & Company, The state of AI in 2022—and a half decade in review, Michael Chui, Bryce Hall, Helen Mayhew, Alex Singla, Alex Sukharevsky,
M
December 6, 2022
7
Gartner, Essential Guide to Prioritizing Data and Analytics Around Value, Pieter den Hamer, 2022 10
10 Keys to AI Success in 2023 2
Tactics for Building

DELIVER BUSINESS ALIGNMENT


Business Alignment
Alignment and collaboration may come in many
different forms. It could be an informed AI strategy that Ongoing AI Strategy Reviews Collaborative Use Case
is vetted by relevant business owners or sound use case by Business Managers Brainstorming Sessions
prioritization, advised by business users who understand Participants Participants
the goals and potential outcomes of the project. Business leaders, data science leaders, business managers Business leaders, data science leaders, IT/ DataOps leaders

Alignment can also mean education of business Led By Led By


Business leaders Data science leaders
and IT users around limitations and capabilities of AI
(i.e., data availability, infrastructure, types of problems
AI can tackle, level of automation that can be achieved,
etc.), which, in turn, can drive more focused AI initiatives.
Each organization needs to establish a suitable process
that ensures tight coordination between business and
analytics teams. Let’s take a look at some of the tested
practices that can help organizations achieve these
Internal Education Around Capabilities, AI Use Case Tracking that Helps Identify the
results today. Limitations of AI Specific ROI of Each Use Case
Participants Participants
This is not an exhaustive list and may vary from ANYONE involved in the collaborative process ANYONE involved in the collaborative process
organization to organization, especially around
Led By Led By
stakeholders and leaders for these efforts. Some
Business leaders Data science leaders
organizations may choose to develop tactics that
are completely different from the ones outlined. For
example, some larger enterprises create Centers of
Excellence (CoE) for AI and hold internal advisory
committees to oversee the whole strategy.

But the basic premise is simple. An AI strategy


and its implementation is a collaborative process Business Stakeholder Interviews Quotas and KPIs for Business Units,
that should involve various stakeholders from various by Data Science Leaders Centered Around AI Strategy, Use Cases,
business, analytics, and infrastructure teams. It
or Data Scientists and Implementations
should be aligned on goals, technical capabilities,
and limitations imposed by infrastructure, business Participants Participants
Business leaders, data science teams, business managers ANYONE involved in the collaborative process
needs, budgets, and other inputs.
Led By Led By
Data science teams Business leaders

11
Enable Trackable and
Reliable AI Outcomes
10 Keys to AI Success in 2023 3

ENABLE TRACKABLE AND RELIABLE AI OUTCOMES


Enable Trackable and Reliable AI Outcomes

Even the most aligned and collaborative organizations Potential issues like these are just the tip of the iceberg.
run into the same issue: scalability. There are many The reality is that many organizations fail to deliver the
issues plaguing organizations that are entering the necessary infrastructure experience. This experience
scalability phase of their AI journey, but some of the is akin to trying to drive a Formula 1 car on a back road
biggest ones are around accountability and predictability. where the ride is very bumpy and things start to fall apart
Many questions should be answered to avoid the quickly. It’s impossible to track and reliably predict AI
scalability bottleneck. outcomes in such conditions.

Many organizations are acutely aware of these problems.


• Who is responsible for model governance
According to the AI Infrastructure Association (AIIA),
and documentation?
around 20% of organizations are dissatisfied with their
• How is model versioning handled? AI infrastructure, and only 26% are very satisfied with it.

• How do we identify, retrain, and replace But the problem becomes even more profound when
underperforming models? we look into the ultimate measure of infrastructure
quality—model deployment timelines. This is because
• Will current model monitoring capabilities most of the actual value is generated when the models
support dozens or hundreds of models? are live in production, this is the point where AI is helping
make business decisions. Based on the same AIIA report,
• What is the deployment lifecycle? Who’s
over 40% of organizations cannot deploy a model into
responsible for the deployment process?
production quicker than two months, with almost half of
• How do we ensure regulatory compliance of them taking from six months to a year to deliver.8
our models once they’re in production?

8
AI Infrastructure Alliance, AI Infrastructure Ecosystem, 2022 13
10 Keys to AI Success in 2023 3

ENABLE TRACKABLE AND RELIABLE AI OUTCOMES


Delivering Excellence

Organizations looking to seriously apply AI to drive MLOps can enable accountable and predictable
crucial business decisions have to ensure that their AI outcomes throughout the ML lifecycle. A dedicated
strategy includes robust infrastructure capabilities. Most and robust MLOps infrastructure for AI projects allows
often, this means creating a Center of Excellence for Al organizations to maintain accountability through
artifacts with the help of machine learning operations governance, model versioning, and model performance
(MLOps) capabilities. monitoring. It minimizes AI’s footprint through leaner
teams and the standardization of processes, tools, and
teams around a single MLOps process and system. This
minimizes disruptions during scale-downs and scale-ups
inside organizations.
Machine Learning Operations (MLOps) is a set of technologies
and practices that provide an automated, scalable, and governed A robust MLOps practice allows many industries to
maintain compliance during complex market conditions by
means to rapidly deploy and manage machine learning (ML) solidifying their model risk management practices—not just
applications in production environments. in financial services but in other regulated industries as well.

14
10 Keys to AI Success in 2023 3

ENABLE TRACKABLE AND RELIABLE AI OUTCOMES


Tools of the Trade
It’s important to identify tools and platforms that External tools are usually geared towards software (ML)
can support such an infrastructure. Many standalone engineers, data scientists, and DevOps/ IT, as these
solutions will require a lot of development overhead are the primary teams tasked with integrating models
to build an end-to-end solution. That’s why many into the organization’s business-critical workflows and
organizations don’t use in-house tools for MLOps applications. These platforms often provide everything
primarily. Today, only 20% of organizations build their needed to put machine learning models into production
infrastructure in-house, while over 75% use a mix of and serve as the single source of truth for all AI initiatives,
internal and external tools or external tools exclusively.9 delivering a centralized system to test, document, deploy,
integrate, monitor, and govern models.
This is not a surprise. There are many benefits for
organizations that decide not to waste internal budgets, Keep in mind the following high-level concepts when
development cycles, and support resources to create in- building out your infrastructure or selecting tools to
house infrastructure capabilities. support it:

Opting for open-source tools only means delaying the scalability bottleneck, as, at a certain point,
1 supporting them in-house will become identical to building and maintaining your infrastructure, just
like with any sufficiently complex software product.

Seeking strong governance for production use cases, either through an in-house or external solution,
2 should be paramount for any organization utilizing MLOps tools.

Measuring AI cycles to ensure rigor and best practices around AI should become the cornerstone
3 of your infrastructure efforts. This can be achieved with appropriate tools for model monitoring,
continuous model retraining, challenger model analysis, and CI/CD methods applied to the ML lifecycle.

9
AI Infrastructure Alliance, AI Infrastructure Ecosystem, 2022 15
Understand ROI
10 Keys to AI Success in 2023 4

Understand ROI

UNDERSTAND ROI
While building alignment and infrastructure around AI is and metrics to track the ROI of their AI projects.
incredibly important, enterprises should be laser focused on
outcomes. Too many organizations are in the exploratory An environment that prioritizes exploratory AI breeds many
phase with AI and have not established proper procedures issues on the path to determining ROI.

Exploratory AI Value-Driven AI
Exploratory AI can be broadly identified as AI Value-Driven AI includes tools and processes
projects or strategies that don’t have a clear that are primarily focused on business results
use case prioritization, processes around rapid and enterprise-ready AI capabilities. It is highly
hypotheses testing, or defined understanding contextual to the business and its industry,
or focus on value. It can sometimes be referred as it seeks to deliver outcomes through the
to as “academic AI,” since it focuses on the organization’s data, which always reflects
research of tools and methodologies, without the business. It aims to encompass the
prioritizing business outcomes, (e.g., revenue or entire lifecycle from machine learning (ML)
process optimization). However, outcomes of experimentation to deployed models and live
exploratory AI may later be used for actual value production environments, with the ultimate goal
creation, through applied AI systems (i.e., value- of delivering ongoing value for the organization.
driven AI) derived from these exploratory efforts.

17
10 Keys to AI Success in 2023 4

UNDERSTAND ROI
Prioritization Misdirection
Many organizations don’t have a clear understanding Analytics teams are often focused on novel applications
of use case priority, which often creates resource of AI, which rarely have proven business value. This could
misalignment. In such situations, teams get out of be driven by certain hype around these applications or by
sync, and it might take time to refocus and spend business leaders, who are willing to buy into the hype.
their resources wisely.
And while exploring relatively exotic neural networks and
their potential business impact can be a great R&D project,
it might not have the same immediate impact on the
Iteration bottom line as a simpler solution for risk scoring based on
Too often, analytics teams don’t have well-established XGBoost, for example. Such teams might be too focused
processes or tools to support rapid hypothesis testing. on exploratory AI, as opposed to value-driven AI, where
Ultimately, this leads to longer time-to-value or missed the use cases are well-documented and delivered by
opportunities, as some teams opt for “tried and tested” many other data science teams.
approaches to save time.
Other teams might be chasing the “golden goose,”
trying to deliver the hardest and most complex use
cases and solutions out there. The problem here is that
these use cases might be poorly explored or documented
because they are rarely attempted and successfully
delivered due to their complexity. It’s hard to deliver the
promise of value-driven AI where value has not been
generated before.

18
10 Keys to AI Success in 2023 4

UNDERSTAND ROI
Value-Driven AI for ROI
When transitioning to the value-driven AI phase, it’s
essential that data science teams move away from
exploratory AI that’s focused on hyped-up use cases and
applications with no clear path to success. Otherwise,
data science teams will continue to be perceived as cost
centers, as opposed to becoming revenue centers.

This leads to potential roadblocks for any AI project


or strategy:

• Cost centers are the first to experience


reductions during downturns and restructuring.

• Scaling AI and proving its value becomes even


harder as the impact is hard to showcase, with
projects taking months or even years to deliver.

• Securing future projects from internal clients


becomes more complicated as ROI is nowhere
to be seen.

Only by focusing on ROI can organizations mitigate these


and many of the associated issues. The ability to assess
this potential ROI is what sets apart AI leaders, 72% of
whom are able to make these assessments successfully.¹0

19
10
P wC, PwC 2022 AI Business Survey, Bret Greenstein, Anand Rao, 2022
10 Keys to AI Success in 2023 4

UNDERSTAND ROI
Start with the Value
When figuring out the best problems to solve, remember
to keep your eyes on the prize and focus on potential
value. But always keep in mind that value doesn’t have to
be expressed as a direct revenue or monetary gain. It can
be something that tangibly improves business operations,
such as:

• Scoring leads in your sales pipeline can help • Anticipating patient conditions can help develop
prioritize the best leads and speed up the preventative treatments, improving outcomes
pipeline, ultimately leading to shorter sales and saving resources.
cycles and more ARR.
• Understanding your customers through churn
• Understanding critical manufacturing processes predictions can lower attrition and boost the
by predicting potential failures can minimize bottom line.
waste and production defects.

Whatever the problem may be, you always need to


have an understanding of how the impact is expressed.
Are you saving money? Are you bringing in more money?
Are you saving time or company resources?

This can also be expressed on a more granular level


when organizations seek to understand the cost of false
positives for their machine learning models and their
predictions and how much an improvement would save
them. Some tools already include payoff matrices that
allow you to incorporate the cost of such false positives
into your analysis.¹¹

DataRobot Documentation, Profit Curve


11
20
10 Keys to AI Success in 2023 4

UNDERSTAND ROI
Focus on the Benefits
Prioritize what can have the biggest benefit for the
business. From there, figure out which applications of AI
are feasible from a technical standpoint. Then figure out
where the gaps are in your tech stack that may prevent
you from achieving those goals.

Routine Is Good
Build out a strategy that’s based on value, as opposed
to exploration. Value-driven AI often encompasses use
cases that some might consider routine, like credit risk
predictions or customer lifetime value estimations. But
addressing these kinds of quotidian dilemmas is what’s
going to drive the real value. While exploratory AI has
important applications as it drives innovations and future
gains, you should try to strike a balance. A good rule of
thumb is to spend 80% of your resources on value-driven
Al, while 20% can be dedicated to exploratory AI.

Manage Scale
Organizations need to acknowledge that scalability issues
may arise from both the inability to scale up, as well as the
inability to scale down. Neither of these should break the
value generation process. A proper MLOps infrastructure
needs to be in place to enable flexibility.

21
Manage and Mitigate Bias
10 Keys to AI Success in 2023 5

MANAGE AND MITIGATE BIAS


Manage and Mitigate Bias

Enterprises rely heavily on the quality of predictions. One enterprises always strive to improve and incorporate more
of the often overlooked components of predictions is bias fairness and have techniques in place to quickly identify
mitigation—ensuring that potentially biased input datasets and correct bias that is present in the algorithms.
don’t result in potentially biased predictions. It’s a problem
that businesses are prioritizing, as bias can directly—and Imagine this scenario. An AI system is trained to become
negatively—affect a business. According to the DataRobot a judge based on data from previous court rulings. Will it
2022 State of AI Bias survey, 36% of respondents say be fair and objective or replicate the discriminatory nature
their organizations have suffered due to an occurrence of past judgments? We probably all know the answer to
of AI bias in one or several of their algorithms. Of those this question. This system is very likely to follow a pattern
organizations, 62% lost revenue and 61% lost customers.¹2 aligned with previous court decisions, with the same
biases as human judges had. The AI will always rely on
Respondents also report on reputational and ethical risks the quality of supplied data, and that data will often have
associated with AI bias.¹3 Enterprises admit that their a human footprint.
organizations’ algorithms have inadvertently contributed
to gender discrimination (32%), age discrimination But that’s just the tip of the iceberg. Bias mitigation
(32%), racial discrimination (29%), sexual orientation is a multidimensional problem that also takes into
discrimination (19%), and religious discrimination (18%). consideration the types of data that organizations collect
and the ways this data is used to create algorithms.
Organizations need to understand that AI is only as smart For example, using specific personal information that
as the information it has been trained on. Although it might is considered to be a protected class (Protected PII),
be mathematically impossible to create a model that like gender and race, poses ethical risks.¹4
doesn’t have at least some bias built in, it’s important that

12
DataRobot, 2022 State of AI Bias Report
13
Ibid.
14
Cornell Law School, Protected Personally Identifiable Information (Protected PII) 23
10 Keys to AI Success in 2023 5

MANAGE AND MITIGATE BIAS


These issues directly affect business performance. That’s why working to remove AI bias is an important
Minimizing AI bias not only protects organizations from component of both internal and external trust in the
corporate and reputational risks, it also allows businesses enterprise. Employees delivering outcomes with these
to build predictions for the real world. A good example models need to be sure that they’re making a positive
of this is ensuring that your marketing campaigns aren’t impact, and customers affected by these models want
skewed towards a certain consumer profile that isn’t to know that they’re not discriminated against.
truly your target market. This can also inadvertently lead
to promotional targeting that focuses on just one or According to the same 2022 AI Bias survey, only 1% of
two consumer groups, while completely ignoring other organizations aren’t taking any steps to avoid AI bias. Is your
lucrative markets. When this happens, you can experience organization one of them? Luckily, there are many standard
a significant drop in your marketing effectiveness and ROI. approaches to tackling AI bias that practically any business
can implement.

Actions to Avoid AI Bias


• Ensure data quality and sanitized datasets for your models.

• Train employees to recognize AI bias so they can prevent the wrong data from being ingested into your
analytics pipeline.

• Hire an AI bias expert to identify weaknesses in your analytics and data collection practices.

• Control decision-making processes to ensure that potentially questionable data or modeling outcomes
aren’t being used to make pivotal business decisions.

• Monitor data changes to ensure that inappropriate data types aren’t being introduced to your models even
after they’re deployed.

• Employ tools and practices that detect and mitigate potential bias throughout the analytics lifecycle.

• Introduce capabilities that facilitate the explainability of your models by providing blueprints for your
models, which explain how the data was used, how it was permuted, and how the model incorporates this
data into its outcomes.

24
Retain, Upskill, and Scale Talent
10 Keys to AI Success in 2023 6

RETAIN, UPSKILL, AND SCALE TALENT


Retain, Upskill, and Scale Talent

In market conditions when many businesses choose to Data science talent is especially crucial in times of
optimize operational costs, the data science and analytics uncertainty. These people are educated and highly sought
functions can suffer a lot. Given that data scientists and after, especially those with expertise in specific industries.
machine learning leads are compensated on the higher It’s not as easy as scaling down data science efforts
end of the pay scale, organizations may choose to part today and then simply hiring someone down the road.
ways with these people to free up a significant amount Organizations might find it hard to find people with the
out of their operational budget. What organizations don’t right expertise in the future, since the market
realize is that such decisions can hurt the business is very demanding and your business might have
in the long run, putting organizations at a unique challenges, like specialized data types or
competitive disadvantage. unconventional tech stacks.

According to the U.S. Bureau of Labor Statistics, data But at the same time, organizations that decide to retain
science jobs are projected to grow 36% over this decade.¹5 their data science capabilities need to realize the need for
This is a strong indication of the steadily growing demand scale and augmentation. Many data science teams can
for machine learning and AI capabilities within the only deliver a handful of projects per year, with some of
enterprise. At the same time, 35% of organizations see them yielding minimal business impact. Data scientists
the internal shortage of skilled people who can optimize need to be able to scale their experiments to start
AI as one of their biggest barriers to AI success.¹6 delivering value on a broader scale—failing fast, testing
new algorithms, exploring exotic data types, and trying out
In a paradoxical situation, while data science talent is in specialized machine learning techniques. Otherwise, their
demand and is recognized as vital to AI success, some full potential might not be realized.
organizations choose to part ways with these crucial
employees in order to lift their bottom line. If companies
instead retain existing data scientists, they stand a strong
chance of improving their team’s performance, and
augmenting their skills with the right tools and capabilities.

15
U.S. Bureau of Labor Statistics, Occupational Outlook Handbook, Data Scientists, September 8, 2022
16
DataRobot, Research Report: AI and the Power of Perception, July 19, 2022 26
10 Keys to AI Success in 2023 6

RETAIN, UPSKILL, AND SCALE TALENT


Maximizing the Value of Your Talent
The simplest way to maximize your data science investments is by ensuring that your team has the necessary tools at their
disposal to deliver results. There are numerous automation and augmentation tools available that can help organizations
achieve this, but there are many prerequisites that these systems need to truly deliver long-term results.

Experimentation Ecosystem
ML tools have to flexibly deliver code-first and no-code/ Any tool that doesn’t play well with external systems could
low-code capabilities to ensure that all of your data slow down the progress of your data science projects.
science team can comfortably work in an environment These limitations might reveal themselves in different
that suits them best. Some of them might prefer a Jupyter forms, but it’s important to recognize them before making
Notebook for their code. Others might enjoy minimal the decision. There are simple questions that you need to
coding, focusing on the business problem itself. There are ask before committing to a solution:
merits to both approaches, as long as they’re available for
people to use them. • Does the tool support a wide variety of cloud
deployment options such as Amazon AWS,
Production Lifecycle Microsoft Azure, and Google Cloud? ? Will we
Capabilities that enable dozens or even hundreds of live be able to deploy the solution on-premises if
models are crucial for any enterprise-grade data science required by our security and regulatory policies?
organization. Usually, such capabilities are delivered
• How does this tool integrate with business
throughout the data science lifecycle and include
intelligence tools like Microsoft Power BI,
governance, model deployment, and model monitoring
places where most of the tool’s output will be
tools that allow data scientists to interact with IT, DevOps,
consumed by business users?
and data engineering teams to streamline and scale AI.
• Does it have broad integrations with the most
Compliance and Governance important data sources that our enterprise
Your data science tools need to be able to support a uses? (e.g., Snowflake, SAP, Amazon RedShift,
variety of automated model performance tests and Google BigQuery, etc.)
document model behavior for compliance to ensure that
• Will it be able to support the robust ecosystem
models are managed to the highest standards, meet
of service integrations like GitHub or
government regulations, and reduce overall risk from
Apache Airflow?
access or changes to models in production.

27
Use Multimodal and Persistant Data
10 Keys to AI Success in 2023 7

USE MULTIMODAL AND PERSISTENT DATA


Use Multimodal and Persistent Data

To deliver on the promise of AI, organizations need to • Text data enables organizations to tap into their
utilize the full breadth of the main resource that’s fueling vast stores of documents to analyze content
AI—their data. It’s important to ensure that complementary from court decisions to resumes.
data types (i.e., multimodal data) are used in conjunction
to deliver results.¹7 This allows organizations to maximize • Image data enables specialized use cases
their chances of achieving impact with AI, as there’s a where the image features can additionally
variety of data types that can be used to feed machine inform the model, like predicting a property’s
learning algorithms: geospatial, textual data/documents, value based on its photos or assessing auto
visual/image data, and more. insurance claims with supplemental image
data indicating damage.
The basic concept is simple. A doctor wouldn’t just look at
a patient's history chart (i.e., text data). They will also use
• Sensor data enables industry-specific
their MRI images (i.e., visual data) and other data types
applications in a variety of manufacturing
to deliver a diagnosis. Just like in this example, machine
scenarios used to predict equipment
learning models might benefit from the introduction of
performance or production defects.
new data types to derive as much signal for predictions.
There’s strong evidence that a multimodal approach to
• Synthetic data is artificially generated to mimic
machine learning significantly improves the accuracy
the real world and alleviate the lack of real data
of insights.¹8
for machine learning models.¹9
Different data types unlock different types of insights and
opportunities for AI: At the same time, the data you use, along with the AI
infrastructure through which the data flows, should not be
• Geospatial data enables granular regional bound by specific environments. Ensuring a multi-cloud,
predictions that can be used for population flexible approach to deployment allows organizations to
health forecasting or store location predictions. better control their data security, data persistence, and
business flexibility.

17
Frontiers in Cardiovascular Medicine, Use of Multimodal Data and Machine Learning to Improve Cardiovascular Disease Care, April 27, 2022
18
Nature, Multimodal machine learning in precision health: A scoping review, November 7, 2022
19
Anyverse, Tesla bets on the physically correct synthetic data at its AI Day, September 9, 2021 29
10 Keys to AI Success in 2023 7

USE MULTIMODAL AND PERSISTENT DATA


It’s not always about the availability of multiple clouds.
It can be about the application of tools that can work
with many different environments and their various
combinations. Businesses need to take advantage of
cloud capabilities and data sovereignty to ensure the long-
term flexibility and resilience of their AI projects.

When selecting tools for your data science and machine


learning initiatives, be sure to learn whether these tools
offer multiple cloud options, have hybrid cloud capabilities,
and offer managed cloud capabilities, which can greatly
decrease the resource intensity of your AI strategy.

The majority of organizations have already made cloud decisions:


89% of organizations already have a multi-cloud
strategy in place and 79% are already using multiple
public cloud offerings.²0

20
Flexera, 2022 State of the Cloud Report
30
Make Decisions and Execute
10 Keys to AI Success in 2023 8

MAKE DECISIONS AND EXECUTE


Make Decisions and Execute

Many organizations struggle to operationalize models, as On top of that, outside of highly mature users of AI, less
it can take months to deploy them into production and than 20% of organizations use AI to improve decision-
integrate them with consumption-level environments. But making.²2 According to Gartner research, around 33% of
just as many of them struggle to fully reap the benefits of large organizations will have analysts practicing decision
these deployed models and make sense of all their data. intelligence, including decision modeling, in 2023.²3

There’s no purpose for any AI strategy if it doesn’t include


the consumption, execution, and decision layers. A machine
Research suggests that the inability to bring data together to make learning model is only useful when people utilize its output
to make decisions, update processes, improve performance,
accurate decisions has a sizable impact on the bottom line, as and optimize the customer experience. So, what can
44% of organizations report customer experience and retention organizations do to ensure that consistent decision-making
practices are applied to their machine learning projects to
problems associated with this analytics lifecycle problem.²¹
deliver real business value?

Quantexa, Data in Context: Closing the Data Decision Gap (Global Research)
21

22
PwC, PwC 2022 AI Business Survey, Bret Greenstein, Anand Rao, 2022
23
Gartner, 12 Data and Analytics Trends to Keep on Your Radar, Laurence Goasduff, April 5, 2022 32
10 Keys to AI Success in 2023 8

MAKE DECISIONS AND EXECUTE


Automation
Making your business successful is not about
micromanaging and weighing in on each and every
decision, especially when AI is involved. The more you
scale your AI efforts, the more decisions have to be made
because of the ever-growing pool of ML outputs. This is
when maintaining a micromanaged manual approach
to decision-making becomes impossible. There are simply
too many decisions of varying degrees of complexity for
a human to process.

In order to keep their momentum, organizations scaling


their AI efforts need to introduce automation into their
decision-making flows. There are different approaches
to this, but it boils down to building rules within systems
that are fed predictions, where predictions under or over
a certain threshold are managed according to a specific
protocol. Now, this may seem like a basic concept as
it’s already being applied in many systems, but you’d be
surprised to learn how many AI projects are unfortunately
not in that category.

Automation comes in many forms and flavors.

Sometimes, AI is paired with robotic process automation


(RPA) tools to deliver varying degrees of automation, like
identifying critical customer complaints and forwarding
them for immediate investigation. Some machine
learning lifecycle tools provide built-in capabilities that
allow organizations to embed AI output into end-user
applications so specialists can make informed decisions
in real time.

33
10 Keys to AI Success in 2023 8

MAKE DECISIONS AND EXECUTE


Observability

To make decisions you need to be able to observe models The concept of model observability aims to deliver a
in their production environment, as it’s not always about granular understanding of errors occurring with model
the decisions around the outputs of the models. It can also performance in production, as well as the context for
be about the models themselves and their performance. those errors.²4 The goal is to have answers for a number
of questions, which could inform error mitigation tactics
Many organizations lack visibility into the deployment through deep model diagnostics:
behavior and performance of models that are in
production. Tracking the integrity of a machine learning
model in production is critical.

• What else was going on in the production • Which specific predictions were impacted
environment when the model exhibited the error? by the error?

• Was the whole batch of predictions affected by • How did the error impact the overall velocity
the error or just one? of predictions?

• At what specific time did the error occur?

This can be achieved in numerous ways. For example, by


tracking data drift, prediction data, training data, and custom
metrics, organizations can maintain their understanding of
model performance and how it's affected by the real world.

24
DataRobot, Resilient Machine Learning with MLOps, January 2023 34
10 Keys to AI Success in 2023 8

MAKE DECISIONS AND EXECUTE


Consumable Apps
In many enterprises, the outputs of machine learning
models aren’t always integrated into the business. Too
often, due to the inability to deploy models, the valuable
insights generated by these models stay hidden to the rest
of the organization. In other cases, there’s simply no path
to display these outputs, as the machine learning lifecycle
isn’t integrated with the business consumption layer.
So, for example, if your organization is a power user of a
major business intelligence (BI) tool like Microsoft Power
BI or Tableau, there might be no process or oversight
around how the machine learning output is integrated
into these BI environments.

To combat these issues, enterprises can build out internal


capabilities to make this final step possible through
business engineering or analytics functions. This could
be as simple as integrating these deliverables into the
machine learning lifecycle. For example, a project cannot
be considered final until a deployed model is available for
consumption through internal BI tools or a custom app is
accessible to employees. In some cases, tools employed
by the analytics team already include features that allow
organizations to build these quick and easy applications
that can easily be visible to the rest of the organization.²5

25
DataRobot, AI Applications 35
Build Deep Technology
Ecosystem Alignment
10 Keys to AI Success in 2023 9

BUILD DEEP TECHNOLOGY ECOSYSTEM ALIGNMENT


Build Deep Technology Ecosystem Alignment

Integrating AI into existing IT processes and infrastructure On top of that, the majority of AI-enabled organizations are
is crucial for organizations looking to scale and achieve still struggling to stay atop the ever-expanding repository of
success with their AI initiatives. Data science and IT teams production models. According to AIIA, 37% of organizations
often speak to each other in different languages. For are managing up to ten models, 21% are managing up to
example, data scientists might create models in Python/R, twenty five, and 7% are trying to manage over a hundred.²6
because these are primary data science languages. At
the same time, the IT team might predominantly use Java The technological smorgasbord of tools necessary to
to build its applications. It’s also entirely possible that support the ML lifecycle is further complicated by the
organizations have models used by different business lines growing number of models, which could be written in many
that run in different and completely separate environments. languages. The problems could be further exacerbated
by the need to maintain a complicated compliance
Due to this disconnect, AI infrastructure can be complicated. workflow, depending on the industry where the models are
From manually crafted models and machine learning applied. The alternative would be to drown in technological
pipelines and manual model maintenance to low visibility complexity and technical debt.
into production and limited governance—creating a complex
end-to-end AI lifecycle can be a tangled web of technologies,
dependencies, and tools.

26
AI Infrastructure Alliance, AI Infrastructure Ecosystem
27
BARC, Driving Innovation with AI: Getting Ahead with DataOps and MLOps, June 2, 2022
28
IDC, IDC FutureScape: Worldwide Artificial Intelligence and Automation 2022 Predictions 37
10 Keys to AI Success in 2023 9

BUILD DEEP TECHNOLOGY ECOSYSTEM ALIGNMENT


Unification
To prevent deployment delays and deliver resilient,
accountable, and trusted AI systems, many organizations
invest in MLOps capabilities to monitor and manage
models, while ensuring appropriate governance. According
to BARC, organizations that adopt such management and
governance tools are better able to plan their projects, as
they are 4.2 times more likely to be able to deploy their
models quickly and 3.5 times less likely to be confronted
with projects with overwhelming complexity.²7

By implementing MLOps tools and practices,


organizations can quickly and efficiently stand up a
centralized management hub for machine learning
operations and production AI. MLOps allows organizations
to put ML into production quickly through repeatable,
scalable processes that unify the production environment
and minimize friction between data science, IT, DevOps,
and data engineering teams.

IDC predicts that by 2024, 60% of enterprises


will have operationalized their ML workflows
by using MLOps.²8

BARC, Driving Innovation with AI: Getting Ahead with DataOps and
27

MLOps, June 2, 2022


IDC, IDC FutureScape: Worldwide Artificial Intelligence and Automation
28

2022 Predictions 38
Take Data Preparation Seriously
10 Keys to AI Success in 2023 10

TAKE DATA PREPARATION SERIOUSLY


Take Data Preparation Seriously

According to an outdated misconception, data scientists Additionally, it is becoming increasingly necessary for data
spend 80% of their time on data preparation. While that science leaders and teams to use data prep tools that
legendary statistic is far from the truth today, recent utilize the security, compliance, and financial controls of
reports indicate that it’s still one of the most resource- their own cloud data warehouse or lake.
intensive parts of the data science workflow, taking up
almost 40% of a data scientist’s time.²9 Therefore, optimizing the data preparation process can be
the key to unlocking value and efficiency for AI projects in
Further, the absence of an integrated set of capabilities to an environment where data scientists have to be hyper-
discover and connect to data, clean and transform data, focused on results and maintain a high level of productivity,
and identify the right signals in data slows iteration. Quite
often, data preparation and building models are not treated There are several tactics that could help data science
as mutually inclusive as they should be. This leads to a organizations scale their data preparation efforts.
loose, or even non-existent, feedback loop between these
two phases of a machine learning project. The outcomes
of that are decreased productivity, increased total cost of
ownership, and fewer insights from data.

29
Anaconda, State of Data Science Report 2022 40
10 Keys to AI Success in 2023 10

TAKE DATA PREPARATION SERIOUSLY


Building Bridges Better Together
Data science teams need to work with organizations Analytics leads and business leaders need to work
upstream to supply data and ensure that it’s as close to together to find ways of enriching the data before it gets
the final format as possible. People closest to the original to data scientists. Sometimes, a new field in the CRM
source of the data can have an immense impact on data could be filled out by marketing or sales and could provide
quality and integrity, especially in circumstances where unparalleled insights, as long as there’s an ongoing
the data is collected and entered manually by employees. process of discussing and discovering these potentially
missing insights. There are also plenty of external sources
Tight Feedback Loop that can plug into existing data preparation workflows
to enrich the data.
AI Builders should ensure there is a tight feedback loop
between the data prep and modeling phases of any
machine learning project. This ultimately results in high- Automation Is Key
quality data being fed to models eventually leading to Automation should be applied to data preparation
accurate and robust models. processes whenever possible. There are multiple paths
for this, either enabled through open-source or enterprise-
grade tools. Automation enables rapid prototyping or
Change Comes from the Top
rapid experimentation environments that let organizations
Business leaders should invest their time in
fail faster and deliver accurate solutions quicker.
understanding the data and find ways to accommodate
data science teams in their pursuit of data. For example, Overall, data preparation is a significant portion of the
there’s a variety of ways to set up a collaborative process analytics workflow, and efforts to improve it should be
that oversees the cleanup and processing of data before baked into the process whenever possible.
it gets to the data science team. This could be a targeted
project or a company-wide set of data quality standards.

41
10 Keys to AI Success in 2023

SUMMARY
Summary

An organization’s path to AI success depends on a lot of technological alignment between data science, business,
factors, but starting with an appropriate assessment of and infrastructure teams to ensure frictionless execution
its AI readiness should be the first step. Going through of the AI strategy.
this assessment can help build a better understanding
of the most pressing gaps in its AI strategy and uncover However, there are some practical tactics and measures
potential solutions for them. that any organization can adopt to drive AI success.
These include the use of multimodal data and application
At the same time, aligning business with the AI teams is of tools that automate the data prep portion of the data
crucial in enabling AI projects that deliver trackable and science lifecycle, enabling an even faster time to value
reliable AI outcomes, with clear visibility into the ROI. since data prep is still one of the most resource-heavy
This is applicable to any organization, no matter where processes within the AI lifecycle. All of this needs to be
they fall on the AI maturity scale. underpinned by automation in decision-making flows that
allows it to execute faster on the information delivered
Meanwhile, more mature organizations need to focus by AI, minimizing the decision-making window and
on ensuring trust in AI and reducing potential bias, while streamlining outcomes on the path to AI success this
retaining and improving internal AI and data science year and beyond.
talent. This effort needs to be supported by deep

Start your journey to value-driven AI today

Go to DataRobot.com

42
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collaborating with AI teams (data scientists, business and IT), removing common blockers
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