The Covid-19 pandemic has accelerated the adoption of artificial intelligence technology after businesses were prompted to quickly digitise to adapt to the new normal, according to IBM’s global chief AI officer.
“Before the pandemic, we saw a lot of AI developing but most of it was not being adopted … [the] market was growing as people were investing in AI even though they were not getting real value out of it,” Seth Dobrin told The National in an exclusive interview.
"Overall growth of AI was relatively flat throughout the pandemic ... however, we saw a tremendous adoption that is a big change from before [pre-Covid levels] … we expect this rapid adoption to continue.”
About 43 per cent of executives surveyed by IBM said their businesses hastened the adoption of AI due to the health crisis.
Larger companies are about 70 per cent more likely than smaller companies to have actively used AI in their business operations.
More than a third of those polled by IBM said that making employees more productive (38 per cent) and finding an efficient way to interact with customers (36 per cent) influenced their decision to use the technology during the pandemic.
However, a lack of skills and growing data complexity were among the top challenges hindering the adoption of AI, businesses said.
The investors recognised the value of AI in two key areas: in enabling the rapid development of Covid vaccines and in finding breakthroughs in treatments using data science and machine learning, Mr Dobrin said.
However, the pandemic has also led to the need to have “common global laws” to extract more value out of the technology.
“Targeted regulations” are required to ensure companies use AI in a more productive manner, Mr Dobrin said.
“Having common global laws [is] always valuable. As a company, we operate in more than one country and different laws make it difficult for us to operate in a globally connected manner.”
“We are too big as a company and we can’t have 50 different ways to operate in different markets.”
In April, the EU proposed AI regulation that requires developers and users to abide by certain data management rules, record-keeping and transparency.
The proposal is a direct challenge to a commonly held view in Silicon Valley – that laws should not interfere with emerging technology.
Mr Dobrin said that the industry is “heading in the right direction".
“We also need a crisp and clear explanation of what regulations mean … that will be the core fundamental to the success of AI.”
Trusted and explainable AI is crucial to widespread adoption of the technology and the success of businesses, including how they maintain brand integrity and comply with regulations, IBM said.
More than eight in 10 businesses told the survey that the ability to explain how their AI arrived at a decision was important to their business. More than three quarters of them admitted that trusting AI’s output was fair, safe and reliable.
“Trust is a big issue that we must be worried about. It should be the foremost thing in mind, before beginning to implement AI,” said Mr Dobrin.
“Also, data should be owned only by the individuals … businesses should ensure adequate protection to their employees and customers so they know their data is being controlled by them in a way they think is appropriate.”
There is also a lot of business value in respecting and protecting people’s privacy and data, said Mr Dobrin.
“As a consumer, I have a choice to opt in or opt out of companies or apps using my data … they have to tell me why they are using it and provide me [with] the exact value in terms of experience. I should be comfortable and not feel [that they are] intrusive or creepy,” he said.
“End consumers should always know that AI is fair and how it reaches any decision. We also do not want gender biases or any socially unacceptable biases in AI-based decisions.”
IBM, which is working with Smart Dubai and the Saudi Data and Artificial Intelligence Authority on various AI-led initiatives, aims to have similar partnerships with various entities and ministries across the Middle East.
“We are working with Saudi Arabia and the UAE to develop AI and facilitate the transformation of their economies towards a more digital and tech-savvy ecosystem,” said Mr Dobrin.
To improve its AI capabilities, the company has invested heavily in natural language processing that is essential for businesses to communicate with customers, said Mr Dobrin, without disclosing the value of the deal.
IBM is also developing neuro-symbolic learning that will enable AI to mimic the human brain and explore the effects of quantum computing on AI or how exactly their combination will add value in solving intractable problems in the future, he said.
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The Bio
Favourite Emirati dish: I have so many because it has a lot of herbs and vegetables. Harees (oats with chicken) is one of them
Favourite place to go to: Dubai Mall because it has lots of sports shops.
Her motivation: My performance because I know that whatever I do, if I put the effort in, I’ll get results
During her free time: I like to drink coffee - a latte no sugar and no flavours. I do not like cold drinks
Pet peeve: That with every meal they give you a fries and Pepsi. That is so unhealthy
Advice to anyone who wants to be an ironman: Go for the goal. If you are consistent, you will get there. With the first one, it might not be what they want but they should start and just do it
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June 3: NZ Provincial Barbarians 7 Lions 13
June 7: Blues 22 Lions 16
June 10: Crusaders 3 Lions 12
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June 17: Maori All Blacks 10 Lions 32
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RESULTS FOR STAGE 4
Stage 4 Dubai to Hatta, 197 km, Road race.
Overall leader Primoz Roglic SLO (Team Jumbo - Visma)
Stage winners: 1. Caleb Ewan AUS (Lotto - Soudal) 2. Matteo Moschetti ITA (Trek - Segafredo) 3. Primoz Roglic SLO (Team Jumbo - Visma)
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Four stars
UAE currency: the story behind the money in your pockets
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
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Unlike other mobile wallets and payment apps, a unique feature of eWallet is that there is no need to have a bank account, credit or debit card to do digital payments.
Customers only need a valid Emirates ID and a working UAE mobile number to register for eWallet account.
Killing of Qassem Suleimani
The years Ramadan fell in May
War 2
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
The years Ramadan fell in May
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Jetour T1 specs
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THE BIO
Favourite car: Koenigsegg Agera RS or Renault Trezor concept car.
Favourite book: I Am Pilgrim by Terry Hayes or Red Notice by Bill Browder.
Biggest inspiration: My husband Nik. He really got me through a lot with his positivity.
Favourite holiday destination: Being at home in Australia, as I travel all over the world for work. It’s great to just hang out with my husband and family.
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