The Business of Artificial

Intelligence

DES 530

IIIT Delhi

Dr. Vinish Kathuria

The Journey Ahead

Business

Customer Insights & Passion AI Technology

Evolution of Digital Ecosystem

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Changes over the years
1 - Consumers have changed 2 - Technology has evolved
o We now live in a time where more than 50% of the world’s o Evolution from main-frame computers to personal computers
population has access to the internet (Meeker, 2019). and laptops to smartphones to smart IoT devices to robots to
o Sharp increases in educational attainment (Ryan & metaverse to ….
Bauman, 2016), information technology jobs (Beckhusen, o Evolution of form factors for human-digital interaction
2016), and regular computer use across job sectors ▪ Phase 1 – keyboard centric computers
(Hipple & Kosanovich, 2003). ▪ Phase 2 – keyboard and touch driven mobile devices like
o Emergence of digital natives, GenZ, born between 1997 smartphones
and 2012 (Dimock, 2019). Gen Z has never experienced ▪ Phase 3 - multiple interaction modes from voice, touch,
life before the internet; comprises 40% of all consumers augmented and virtual reality, mixed modes
(Chamberlain, 2018), with a spending power of $143 o Volume (of data generation), velocity (of data transmission) and
billion in 2020 (Davis, 2020). variety (of data types) increasing exponentially

3 - Artificial Intelligence gaining traction

o Mass adoption of Artificial Intelligence-driven products - apps and
software services that leverage the power of the internet and machine
learning technologies to inform and assist their users.
o Solutions such as health monitoring, language translations, providing
driving directions, entertainment, and product recommendations,
voice-activated virtual assistants, and more have started to add
significant benefits to consumers while raising concerns about privacy
and bias (Puntoni et al., 2021; Davenport et al., 2020)
o Example - forecasts suggest that by 2024, the number of Voice AI
products will reach 8.4 billion units, a number higher than the world’s
Source : The Economic Times
population (Statistia, 2022).
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Artificial Intelligence 101

Artificial Intelligence
o Artificial Intelligence refers to programs, algorithms,
systems, and machines that exhibit aspects of human
intelligence and provides means to interpret external data
correctly, learn from such data, and exhibit flexible
adaptation (Huang & Rust, 2018; Davenport et al, 2020).

o From a user perspective, AI is a series of tools that

improve task efficiency and provide added convenience
and flexibility to consumers (Wirtz et al., 2018)

o Numerous applications : Natural Language Processing,

Computer Vision, Image Processing, Recommendation
Engines, Autonomous Vehicles, Conversation Agents….

Source : Capgemini Technology, Innovation & Ventures 5

101 – Machine Learning, Artificial Intelligence

▪ Artificial intelligence (AI) is an area of

computer science that emphasizes the creation of
intelligent machines that work and react like human

▪ Machine learning (ML) is an approach to

achieve Artificial Intelligence. At its most basic is the
practice of using algorithms to parse data, learn from it,
and then make prediction about something in the
world

▪ Deep learning (DL) is a technique for

implementing Machine Learning. DL is the application
of artificial neural networks to learning tasks that
contain more than one hidden layer
Machine
Learning
Models
Accuracy vs
Speed
Key Metrics
 Readings for next class
1. Reading Chapter 1 - The Business of Artificial Intelligence Eric Brynjolfsson and
Andrew McAfee
2. Presentations
1. What is Computer Vision ? Explain with a few examples
2. Self : What is Natural Language Processing ? Explain with a few examples
3. Self: What is Generative AI ? What is Google’s Generative AI strategy
4. Self : What is Generative AI ? What is Microsoft’s Generative AI strategy

Reading – All students; Presentation – 4 students

Presentation Guidelines
• 5 minutes, 2 slides max; 3-5 key learnings from the article Use tables, and
figures from the article to present, if relevant
• Moderate a conversation among classmates
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Artificial Intelligence
1. AI Foundations
▪ Infrastructure
▪ Techniques
▪ Data

2. AI Solutions
▪ Use Cases
▪ Applications
▪ Industry Specific / Across
industries

3. AI Governance
▪ Security
▪ Ethics
▪ Skills
▪ Organization
▪ Strategy

Source : Gartner 11
Applications Example
Digital Maps for Desktops
Paper Map

AI-driven Maps applications

o Uses real-time traffic information to find the best
route to destination.
o Shows satellite imagery, aerial photography, street
maps, 360° interactive panoramic views of streets,
real-time traffic conditions, and route planning for
traveling by foot, car, bike, and public
transportation
o With voice navigation, one can hear traffic alerts,
where to turn, which lane to use etc.
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Applications Examples

Compliant and Easy to Deploy Voice AI solution

powered by Generative AI for the ARM Industry

Driver assist and Self driving car

autonomous driving
technology
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Artificial Intelligence 101

Source : https://www.piventures.in/blog/deeptech-emerging-frontiers 14
AI Startups

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https://www.forbes.com/lists/ai50 16
 Infrastructure Example - NVIDIA
o Nvidia is a company that specializes in designing graphics processing units (GPUs) for
gaming and professional markets, as well as system-on-a-chip units (SoCs) for the mobile
computing and automotive market.
o Nvidia has been at the forefront of developing artificial intelligence (AI) hardware and
software. The company’s GPUs are used in many AI applications, including image recognition,
natural language processing, and autonomous vehicles.
o Nvidia’s AI platform is called NVIDIA DGX and is designed to help organizations accelerate
their AI initiatives by providing a complete hardware and software stack optimized for deep
learning workloads.
o Nvidia’s GPUs are used in many AI applications because they are highly parallelizable and can
perform many calculations simultaneously. This makes them ideal for training deep neural
networks used in many AI applications.

A moat is a deep, broad ditch, either dry or filled with

water, that is dug and surrounds a castle, fortification,
building, or town, historically to provide it with a
preliminary line of defence.
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Data Warehouse vs Data Lake

o A data warehouse stores historical data about a business to allow the analysis and extraction of
insights. It does not store current information, nor is it updated in real-time, and is mainly used with
relational databases where data is stored in relations (tables) with the schema optimized for fast
querying and analytics.

o A data warehouse stores data in a structured format that is accessible via SQL queries. It is easier to
manipulate structured data than non-structured or semi-structured data because the schema for all the
data is known beforehand. However, storage and processing are centralized, and using purpose-built
hardware makes a data warehouse expensive.

o Unlike data warehouses, data lakes can have unstructured data. Data lakes allow data to be held in
various formats on cloud object storage (S3, ADLS, or Google Cloud storage) with a separate
processing layer. They complement the limitations of data warehouses. Storage and processing are
decentralized, and instead of using big tables, data is split into smaller files and distributed on multiple
nodes. Decoupled storage allows the data lake to scale independently. It also uses commodity
hardware, so it has a lower cost.

o A data lake is cost-efficient whereas a data warehouse is performance-efficient

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 Infrastructure Example – Databricks vs Snowflake (Valuation > $30B)

Goal - go-to platform to help businesses evolve from data-driven to fully AI-enabled.

o Databricks is an enterprise software o Snowflake is a cloud-based data

company founded by the creators of warehousing platform built on top of
Apache Spark. Databricks develops a web- AWS and a true SaaS offering. Snowflake
based platform for working with Spark that provides a data warehouse that is faster,
provides automated cluster management easy to set up, and far more flexible than
and IPython-style notebooks. traditional data warehouse solutions.
o Databricks is a unified set of tools for Snowflake is one of the few enterprise-
building, deploying, sharing, and ready cloud data warehouses that brings
maintaining enterprise-grade data solutions simplicity without sacrificing features.
at scale. The Databricks Lakehouse Platform o Snowflake is a cloud-based data
integrates with cloud storage and security in warehousing platform that provides a
your cloud account and manages and data warehouse that is faster, easy to set
deploys cloud infrastructure on your behalf. up, and far more flexible than traditional
data warehouse solutions. It automatically
scales, both up and down, to get the right
https://www.macrometa.com/event-stream-
processing/databricks-vs-snowflake balance of performance vs. cost 19
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 Infrastructure Example – HuggingFace
o Hugging Face is an AI community that is building the future of AI.
They provide a platform where the machine learning community
collaborates on models, datasets, and applications. Hugging Face
has become one of the most popular open-source libraries for
Artificial Intelligence.
o It is a treasure for every enthusiast of Natural Language Processing
tasks. Hugging Face has developed several state-of-the-art models
for natural language processing (NLP) tasks such as BERT, GPT-2,
GPT-3, RoBERTa, etc. These models have been pre-trained on large
datasets and fine-tuned on specific tasks to achieve state-of-the-art
performance on various NLP benchmarks.
o Hugging Face has also developed a platform called Hugging Face
Hub which is a central place where developers can share their
models and datasets with others.
Hugging Face is important in artificial intelligence because it provides a platform for collaboration among
machine learning enthusiasts, develops state-of-the-art models for NLP tasks, and provides a central place
for sharing models and datasets with others. 21
 Infrastructure Example – OpenAI
o OpenAI is an AI research laboratory consisting of the for-profit corporation OpenAI LP
and its parent company, the non-profit OpenAI Inc.

o ChatGPT is an AI model developed by OpenAI that has been trained on a large corpus of
text data and can generate human-like responses to text prompts. ChatGPT has been
used in various applications such as chatbots, question-answering systems, and language
translation.

o ChatGPT is important in the artificial intelligence ecosystem because it has demonstrated

the power of AI to take on tasks traditionally associated with “knowledge work” and has
lured dozens of startups into building on top of its AI.

o ChatGPT has also broken the Turing test which is a measure of a machine’s ability to
exhibit intelligent behavior equivalent to, or indistinguishable from, that of a human.

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Foundation Capital - VC

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Services AI

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 Readings for next class
1. Reading Chapter 1 - The Business of Artificial Intelligence Eric Brynjolfsson and
Andrew McAfee
2. Presentations
1. What is Computer Vision ? Explain with a few examples
2. Self : What is Natural Language Processing ? Explain with a few examples
3. Self: What is Generative AI ? What is Google’s Generative AI strategy
4. Self : What is Generative AI ? What is Microsoft’s Generative AI strategy

Reading – All students; Presentation – 4 students

Presentation Guidelines
• 5 minutes, 2 slides max; 3-5 key learnings from the article Use tables, and
figures from the article to present, if relevant
• Moderate a conversation among classmates
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