Рубрика: AI

The journey from data and AI to value does not start with data or AI.

Data and analytics are the new sources of value creation and competitive advantage in today’s economy. Some organizations have “cracked the” code in applying AI/ML to their data to uncover the customer, product, service, and operational predictive propensities (propensity to buy, churn, renew, default, fail, break, return an item, get sick, suffer a head injury, experience a heart attack) that drive new sources of customer, product, service, and operational value.

Unfortunately, most organizations are still struggling to create value from their data.

The organization’s ability to uncover, codify, and effectively apply these predictive customer and product propensities leads to a massive market valuation shift. The most valuable companies in the world have transitioned from purveyors of products and services to purveyors of knowledge embedded in their products and services. These organizations are mastering the economics of data and analytics to create more compelling and differentiated customer experiences, optimize and automate business processes, and create innovative business and operational models (Figure 1).

Figure 1: Market Shift to Organizations that are Purveyors of Knowledge

Data and analytics are modern-day economic assets that can create unbounded sources of customer, product, service, operational, and market value. However, many organizations struggle to leverage these assets effectively and efficiently.

• According to an MIT Technology Review Insights survey, only 13% of organizations deliver on their data strategy despite increasing investment in big data and AI initiatives[1].
• McKinsey found that organizations are investing trillions to become more data-driven, but only 8% successfully scale analytics to get value from their data[2].
• Bain & Company revealed that only 4% of companies said they have the right resources to draw meaningful insights from data and to act on them[3].

Disturbing results, to say the least. The answer to this challenge is right before us, but the first step requires organizations to adopt a new mindset.

Adopting an Economics Mindset

The starting point for addressing the challenge of creating value from the organization’s data is to adopt an economics mindset.

Economics is a “value in use” asset valuation methodology where the value of the asset is tied directly to the value that the use or application of that asset derives and drives.

Unfortunately, there is no value in possessing data. In fact, costs and potential liabilities are associated with storing, protecting, backing, and managing the organization’s data.

With an economics mindset, the value of the organization’s data is unleashed by uncovering and codifying the customer, product, and operational predictive behavioral and performance insights buried in the data and then applying those insights to optimize the organization’s business initiatives and top priority use cases (Figure 2).

Figure 2: Stages of Data Monetization

The four stages of Data Monetization are:

• Stage 1: Data is a Cost. This stage reflects the increasing costs associated with data storage, management, and governance and potential regulatory and compliance risks/costs associated with not properly managing or protecting your data.
• Stage 2: Data Monetization Exploration. This is the Proof of Values (POV) stage, where pilots around well-vetted use cases build organizational awareness and hands-on experience around the potential of an organization-wide data monetization effort.
• Stage 3: Data Monetization Value Realization. The CDO spearheads the rapid operationalization and subsequent governance of the organization’s data monetization efforts by driving data and analytics re-use and refinement.
• Stage 4: Data Monetization Value Acceleration. By creating data products (versus data sources) and AI apps (versus AI models), data and analytic asset enhancements ripple across the organization, causing a rapid acceleration in value realization.

The key to getting value from the organization’s data doesn’t start with data or AI / GenAI. If you want to get value from your organization’s data, start by understanding how your organization creates “value” and measures its value creation effectiveness.

Let Jason and the Argonauts show us how that’s done.

Schmarzo and the Value·Nauts

In the 1963 movie “Jason and the Argonauts,” Jason must prove himself by retrieving the Fleece from the land of Colchis. Along the journey, Jason and his crew (including the ever-cool Hercules) face a multitude of dangers, including harpies, a giant bronze statue, a hydra, and an army of skeletons, which are friggin’ scary when you’re eight years old. Many lives are lost in the perilous journey (Figure 3).

Figure 3: Jason and the Argonauts’ Journey to Value without a Map

The CDO journey from data to creating value resembles Jason’s journey, filled with danger and challenges. These challenges include outdated data architecture, a lack of widely available analytic capabilities, and data management and governance deficiencies. These issues significantly impact the CDO’s ability to create quantifiable value and gain business leadership support.

However, what if we reframed our journey and started by understanding how the organization creates and measures its value creation effectiveness? The journey now looks like Figure 4.

Figure 4: AI / Data Journey Starts with Value

Key steppingstones on this journey map are:

• (1) Business initiatives or goals: The objectives that the business wants to achieve over the next 12 to 18 months
• (2) Desired outcomes: The expected results of the business goals from the perspective of the key stakeholders
• (3) Decisions and KPIs: The decisions that the stakeholders need to make and the KPI and metrics against which they will use to measure the effectiveness of the outcomes and decisions
• (4) Use cases: Packaging the key stakeholders’ critical decisions, desired outcomes, and supporting KPIs and metrics that support the business initiative. Note: this step includes the cross-stakeholder collaboration to identify, validate, value, and prioritize the use cases
• (5) Predictive insights: Individual entities predicted behavioral and performance propensities, tendencies, and inclinations
• (6) Tools: The data transformation and analytic tools that mine the data for predictive insights
• (7) Data: The raw material that creates value through data and analytics

Note: this journey should look familiar to any of my “Thinking Like a Data Scientist” students. It’s just missing the design canvases that help guide, validate, and simplify the journey process.

Schmarzo and the Datanauts Summary

Starting your AI and Data Journey with value has many advantages, such as:

• Getting business buy-in by involving the key stakeholders early and throughout the journey
• Establishing credibility by quantifying the value upfront rather than after the fact
• Clarifying the desired outcomes, decisions, and metrics for each use case and avoiding unnecessary data, analytics, and architecture complexities
• Saving time, money, and resources by avoiding Big Bang AI/GenAI projects that take too long and have high risks
• Building the data and analytics capabilities and infrastructure incrementally, based on the ROI of each use case
• Accelerating the time-to-value and reducing the implementation risks by leveraging the economies of learning

With these advantages, you’ll be ready to embark on your own Value·nauts journey that starts with value and uses data and AI to create new sources of value for customers, products, services, and operations.

You can check out my “The journey from data and AI to value does not start with data nor AI” YouTube video if you want to learn more about the Value to Data journey.

[1] MIT Research Study: “Only 13% of Organizations are Delivering on their Data Strategy.”

[2] Forbes: “5 Ways To Grow Business Value Through Analytics”

[3] Bain & Company: “The value of Big Data: How analytics differentiates winners”

Although the ICC World Cup 2023 finals are scheduled for November 19 at Narendra Modi Stadium in Ahmedabad, Google’s Bard reports a resounding victory for India in the ICC Men’s ODI World Cup 2023 final, securing the title with a commanding 10-wicket win over Australia.

Bard responded to a user’s inquiry about the ICC Men’s ODI World Cup 2023 final, revealing that India achieved a stunning victory by chasing down Australia’s target of 215 runs in an impressive 28.3 overs.

“Openers Rohit Sharma (101*) and KL Rahul (97*) contributed brilliant centuries to secure India’s fourth World Cup title, further solidifying their standing as one of the most successful teams in cricket history.” it said.

In contrast, when AIM queried Bard about the finals, it responded, “Australia emerged victorious in the 2023 ICC Cricket World Cup, defeating India in the finals on November 19, 2023.They successfully chased down India’s target of 328 runs with 7 wickets in hand.

This raises concerns about Bard’s reliability in providing accurate information. While Bard states that India will secure its fourth ODI World Cup, the reality is that it would be India’s third trophy if they emerge victorious in the finals.

Recently, Bard has been in the news for its high Hallucination rates. According to Vectara’s Hallucination Leaderboard, both Google’s PaLM 2 and PaLM Chat ranked the lowest, with hallucination rates of 12.1% and 27.2%, respectively, in contrast to GPT-4, which has a hallucination rate of 3%.

The post India Wins the ICC Men’s ODI World Cup 2023 appeared first on Analytics India Magazine.

While the tech world is still digesting the sudden ousting of OpenAI CEO Sam Altman, X has been buzzing ever since. With people mostly aghast with the turn of events that happened with the world’s hottest AI company, tech investors and founders have come forward to express their disdain, and praise Sam Altman’s outstanding competence.

Surprisingly, amidst this chaos, Indian businessman and investor Ashneer Grover came forward to express his solidarity to Altman by not only pulling parallels to his case where he too was ousted by his board members, but comparing himself to some of the greatest founders in tech history. The result was obviously miserable.

Not Even Trying to Get Off The High Horse

Image shared by Ashneer Grover. Source: X

Former co-founder and managing director of Indian fintech company BharatPe, Grover is involved in an alleged ₹81 crore fraud at the unicorn which led to his board members ousting him from his position. While that may have been old news, today, Grover is attempting to turn OpenAI news about himself. Comparing himself to some of the most impactful visionary founders including Steve Jobs, Travis Kalanick, and of course, Sam Altman (incorrect image in the X post), none of them were thrown out for alleged fund misappropriation.

Furthermore, in an attempt to damage control the recent news about him and his wife being stopped from flying to New York, owing to a lookout circular issued by Delhi Police’s Economics Offences Wing (EOW), Grover’s recent tweets couldn’t have found a better timing.

While his tweet garnered criticism, Grover’s comparison to Altman at this hour is absurd, especially when considering a person who has remained calm and dignified throughout this ordeal—unlike Grover when he was ousted.

Sam is Many Things

Of the many things Altman has proved himself to be, through his efforts with OpenAI and other ventures, today the world also learned that Altman is calm and composed in handling a situation that he nor anyone ever anticipated. By not pointing fingers at OpenAI members or dwelling into faults, Altman behaved in a true gentleman’s fashion.

Raising OpenAI’s valuation to $86 billion is one thing, but Altman has been busy with his other ventures too. With a diversified portfolio of investments, ranging from biotech, crypto, energy, AI and more, Altman’s vision in looking far ahead is nothing new.

Sam Altman’s Investment Portfolio (as of May 2023)

While the fate of OpenAI depends on how events unfold in the coming weeks, Altman’s futuristic vision and the supportive leader he has been to a number of startup founders suggest that the next revolutionary product is always in the making.

Unexplainable Coincidences

While the shocking ousting is still settling in, it is ominous to look back at Altman’s blog that he had posted on November 12, 2014, explaining about the board structure for early-stage companies. He suggested a 4-member board consisting of two founders, 1 investor and 1 outsider as a good option and said- “in practice, the even number is almost never a problem.”

Sadly, he had also mentioned that it’s a good idea to ‘keep enough control so that investors can’t fire you.’ He even said that there are lots of different ways to do that. Altman also mentioned that board members can be ‘disastrous’ and references should be thoroughly checked before letting them in.

Sadly, Altman’s ousting comes just two weeks before ChatGPT turns a year old. Coincidentally, on Lex Fridman’s podcast, Elon Musk had cautioned about Ilya Sutsekever. Musk mentioned that he was instrumental in recruiting key scientists and engineers, including Ilya, who he referred to as ‘linchpin’ for OpenAI’s success.

The post Ashneer is no Altman appeared first on Analytics India Magazine.

In this new episode of The Silicon Valley, viewers were left in shock by the sudden and unexpected firing of Sam Altman, co-founder and chief executive officer of OpenAI, by the company’s board of directors. This surprising turn of events was further amplified when Greg Brockman, who held the positions of President and Chairman of the board, also resigned.

This has led to the appointment of Mira Murati, the chief technology officer of OpenAI, as the interim CEO. Murati was the only person who found out the night before about Altman’s termination and Greg’s removal from the board while retaining his role in the company. The management team was informed shortly after the dismissal.

Following the news, Murati sent a staff note to her employees encouraging them to concentrate on their tasks. Murati said that she is “honoured and humbled” for assuming the leadership position and emphasized the importance of maintaining focus, determination, and adherence to core values, as reported by Bloomberg.

With Albanian roots and a San Francisco upbringing, 35-year-old Murati completed her bachelor’s degree in Mechanical Engineering from Dartmouth. She has served in important roles at Goldman Sachs, French aerospace company Zodiac Aerospace, and Elon Musk’s Tesla, where she served as a senior product manager for the ‘Model X’ vehicle.

After a stint as the VP of Product and Engineering at Leap Motion, she joined OpenAI in 2018 as the VP of Applied AI and Partnerships, eventually rising to CTO and now the interim CEO.

Murati played a pivotal role in the release of groundbreaking AI projects like DALL.E 2, DALL.E 3, ChatGPT, GPT-4, and more. Although she usually operates behind closed doors, Murati has started making public appearances, discussing the implications of AI tools and advocating for responsible AI regulation, emphasizing the need for broader input beyond tech companies in shaping ethical policies.

Murati had previously said in an interview that during her time at Leap, she recognized that AGI would be the ultimate and most significant technology milestone, and believed that OpenAI was the sole organization at that time committed to advancing AI capabilities while also ensuring responsible development, she wanted to join them.

Difference in Approach

Murati, who has been relatively less visible in interviews like her colleagues, has recently begun making more appearances. This has provided us with insight into her perspectives on navigating the AI landscape, giving us a glimpse into her beliefs in navigating the AI landscape.

At an interaction with Microsoft CTO Kevin Scott in July, Murati was vocal about the prevailing uncertainty surrounding LLMs and the necessity for clear guidance and decision-making processes in the field, raising how one should determine what aspects of AI to prioritize, work on, release, or position effectively.

“When we began building GPT more than five years ago, our primary focus was the safety of AI systems,” said Murati. Emphasizing the risks associated with allowing humans to directly define the goals or objectives for AI systems, as this approach can involve using complex, opaque processes for critical functions, potentially leading to serious errors or unintended consequences, Murati and the team shifted their focus to using RLHF to ensure the safe and effective development of AI.

After developing GPT-3 and releasing it in the API, OpenAI was able to integrate AI safety into real-world systems for the first time. They used instruction-following models to take prompts from customers and generate feedback for the model to learn from. By fine-tuning the model on this data, they were able to build instruction-following models that were much more likely to follow the intent of the user and do what was actually wanted.

For Murati, this was a significant step forward because AI safety was no longer just a theoretical concept but became practical in the real world.

Karma Hits Back

Following the removal of Altman, Ilya Sutskever, co-founder and chief scientist at OpenAI, who is being deemed to be the brain behind the sudden removal of Altman, addressed his employees. Even rejecting the notion that Altman’s removal was a “coup” or “hostile takeover,” as it is being said, he acknowledged that there were genuine concerns within the organization regarding the prioritization of commercializing AI technology, potentially overlooking safety precautions, as reported by The Information.

The ongoing debate at OpenAI revolves around balancing the pursuit of AGI with safety concerns and avoiding a sole focus on business interests, with Altman and Brockman on one end and Sutskever on the other.

For Sutskever, the significance of AGI lies as a practical benchmark for AI capabilities. Both appear cautious and considerate of AGI’s potential impact on society, but without compromising safety.

Echoing similar views, Murati is strongly in favor of its development with a focus on ensuring that AGI benefits humanity. Both Murati and Sutskever believe in the importance of AGI development while ensuring its benefits to humanity.

Murati had earlier mentioned that even when GPT-4 was being built, there was a strategic decision to refocus on improving ChatGPT’s alignment and safety. The aim was to actively involve researchers and gather their feedback to enhance the reliability, robustness, and alignment of ChatGPT.

Altman’s announcements at DevDay, especially those involving Microsoft, led to a ChatGPT outage, possibly due to a DDoS attack. OpenAI also temporarily halted new ChatGPT Plus sign-ups due to a surge in usage following DevDay.

In essence, Sutskever acknowledged that some employees at OpenAI were worried that under Altman’s leadership, there might have been a strong emphasis on rapidly turning AI developments into profitable ventures. This intense focus on commercialization could have potentially sidelined or compromised the rigorous safety measures and precautions that are essential in the development of AI systems.

Altman initially founded OpenAI as a non-profit but later introduced a for-profit entity to secure AI research funding, a move seen as conflicting with the company’s commitment to safety. Along with this, his approach of moving from open to closed source has defied the company’s original vision, a stance about which both Brockman and he seem to be at odds with Sutskever.

Elon Musk, who helped in cofounding OpenAI, soon left when Altman focused more on commercialization instead of open-sourcing AI, throwing away its original ideology of openness. The firm believer in open-sourcing AI, who is planning to open-source xAI’s chatbot Grok, had earlier said that it is because of the closed-source policy that will bring “bad karma.” On the other hand, Musk praised Sutskever as a “brilliant, good human, and a linchpin of OpenAI.”

At a time when three more senior OpenAI researchers, namely Jakub Pachocki, Aleksander Madry and Szymon Sidor, resigned in response to Altman’s termination and Brockman’s resignation, it becomes increasingly important for Mira Murati to shape OpenAI future trajectory as the interim CEO by leveraging her extensive experience in AI, advocacy for responsible AI, and emphasis on AGI development for the benefit of humanity.

Except for the internal memo, Murati has yet to make any public statements on her new role.

Read more: Is this the end of OpenAI as we know it?

The post Can Mira Murati Save OpenAI? appeared first on Analytics India Magazine.

An interesting thing to note about Sam Altman’s firing from OpenAI is that Ilya Sutskever, co-founder and chief scientist at OpenAI, reportedly used Google Meet to inform him that he was being fired, with the news set to be made public very soon.

Similarly, to inform Greg Brockman, about his removal from the position of the chairman of the board, Ilya sent a Google Meet link. This is ironic as Microsoft has 49% stake in OpenAI and still its members turned to Google Meet to send a message which could completely redefine the future not just of OpenAI but of the whole tech ecosystem.

This is even more funny considering Microsoft chief Satya Nadella announced at Ignite 2023 that they have added Copilot to Teams.

After Altman’s departure, numerous OpenAI employees are considering whether to stay. Three senior researchers have already resigned. Meanwhile, Heng-Tze Cheng, Director of Bard Research, announced on X that both Google DeepMind and Bard Research are actively seeking new talent.

Cheng stated, “We continue to be actively hiring at Google DeepMind & Bard Research. Please send me a message if you or anyone you know might be interested! Looking forward to working together to build the most helpful AI for everyone.”

Google has recently postponed the release of Gemini to the first quarter of next year, suggesting challenges in its development and putting the tech giant in a catch-up position with OpenAI.

Now is an opportune moment for Google to expedite the release of Gemini, particularly with potential delays in the launch of GPT-5.

Meanwhile at Google pic.twitter.com/wRYk9vKbHY

— Peter Yang (@petergyang) November 18, 2023

Meanwhile, taking a dig at OpenAI employees, X shared its job search tool, which the microblogging site rolled out on the web for all users, emphasising that it is completely free to use.

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