{"id":48097,"date":"2023-05-05T05:40:29","date_gmt":"2023-05-05T09:40:29","guid":{"rendered":"https:\/\/www.kaspersky.com\/blog\/?post_type=emagazine&#038;p=48097"},"modified":"2023-05-05T05:48:25","modified_gmt":"2023-05-05T09:48:25","slug":"insight-story-artificial-intelligence","status":"publish","type":"emagazine","link":"https:\/\/www.kaspersky.com\/blog\/secure-futures-magazine\/insight-story-artificial-intelligence\/48097\/","title":{"rendered":"Customer wins from AI require strategy, not just investment"},"content":{"rendered":"<p>There was a time when artificial intelligence (AI) had a menacing ring, but things have moved on. <a href=\"https:\/\/insight.openexo.com\/part-i-what-will-be-the-exciting-career-paths-created-by-chat-gpt-and-ai\/\" target=\"_blank\" rel=\"noopener nofollow\">Chat GPT and generative AI apps are creating new roles<\/a> or <a href=\"https:\/\/nypost.com\/2023\/01\/25\/chat-gpt-could-make-these-jobs-obsolete\/\" target=\"_blank\" rel=\"noopener nofollow\">making some skills and careers obsolete<\/a>, depending on who you listen to. Meanwhile, we see its benefits every day, like finding efficiencies and automating repetitive tasks.<\/p>\n<p>AI could soon be essential to most businesses. But it\u2019s not always clear how to use it.<\/p>\n<p><a href=\"https:\/\/insight-story.podbean.com\/\" target=\"_blank\" rel=\"noopener nofollow\">Kaspersky\u2019s new podcast, Insight Story<\/a> unpacks emerging tech trends with global specialists and businesses successfully using the tech. In Episode 5, I speak with AI expert <a href=\"https:\/\/www.linkedin.com\/in\/romeshranawana\/?originalSubdomain=lk\" target=\"_blank\" rel=\"noopener nofollow\">Dr. Romesh Ranawana<\/a> (Sri Lanka,) <a href=\"https:\/\/truth.co.za\/\" target=\"_blank\" rel=\"noopener nofollow\">customer loyalty consultancy Truth<\/a> CEO Amanda Cromhout (South Africa) and Fabio Assolini, Head of Research in Latin America for Kaspersky\u2019s Global Research and Analysis Team. We examine how business should approach AI and machine learning to make the most of the opportunity while staying secure.<\/p>\n<p><iframe style=\"border: none;min-width: min(100%, 430px)\" height=\"300\" scrolling=\"no\" src=\"https:\/\/www.podbean.com\/player-v2\/?i=74agc-13e813c-pb&amp;from=pb6admin&amp;pbad=0&amp;square=1&amp;share=1&amp;download=1&amp;rtl=0&amp;fonts=Arial&amp;skin=1b1b1b&amp;font-color=auto&amp;logo_link=episode_page&amp;btn-skin=2baf9e&amp;size=300\" width=\"100%\"><\/iframe><\/p>\n<h2>Understanding what\u2019s meant by AI<\/h2>\n<p>Romesh says we normally mean something more specific when we talk about AI. \u201cAll technology \u2013 be it Alexa, your car or washing machine \u2013 uses algorithms. An algorithm outputs something when you input something. For problems too big or hard to solve with software, a particular type of AI \u2013 machine learning \u2013 offers a new way to build algorithms, instead of a programmer writing lines of code.\u201d<\/p>\n<p>And this kind of AI is everywhere. \u201cWe hear much about how it\u2019s changing <a href=\"https:\/\/www.divante.com\/blog\/ai-in-ecommerce-benefits-and-examples\" target=\"_blank\" rel=\"noopener nofollow\">e-commerce<\/a> and <a href=\"https:\/\/www.axinom.com\/article\/how-streaming-platforms-can-use-ai\" target=\"_blank\" rel=\"noopener nofollow\">video streaming<\/a>, but nearly every industry uses AI \u2013 from healthcare to retail to factories. Many of the biggest brands, like Amazon and AirBnB, owe their success to it.\u201d<\/p>\n<h2>AI in customer loyalty<\/h2>\n<p>Customer loyalty programs have long used AI to target customers with more relevant, personalized offers. Amanda\u2019s company Truth specializes in these. \u201cData is fundamental to customer loyalty programs. Everything we know about a consumer \u2013 whether the information they give or gained through transactions \u2013 has proven power.\u201d<\/p>\n<p>UK grocery outlet Tesco\u2019s <a href=\"https:\/\/www.reuters.com\/business\/retail-consumer\/loyalty-pays-off-tesco-britons-feel-pinch-2022-02-23\/\" target=\"_blank\" rel=\"noopener nofollow\">Clubcard was one of the first schemes of its kind, with some 20 million members<\/a> today. Amanda says their approach to data was groundbreaking: \u201cEvery quarter, Tesco sent out thank you vouchers with a small discount on your next shop. The vouchers were relevant to what you bought, and no set was the same.\u201d<\/p>\n<p>\u201cIt\u2019s a value exchange,\u201d says Amanda. Customers give their data because of what they get out of it. \u201cSometimes companies ask members or customers for data less overtly. Financial institutions may offer a reward to answer a questionnaire, creating a profile of your financial needs and propensity to borrow. They\u2019re paying so they can get a higher response rate to sales. If done well, it\u2019s win-win.\u201d<\/p>\n<p>Recent research, <a href=\"https:\/\/dpnetwork.org.uk\/consumers-increasingly-comfortable-sharing-data\/\" target=\"_blank\" rel=\"noopener nofollow\">Global Data Privacy: What the Consumer Really Thinks 2022<\/a>, found discounts and freebies were in the top three reasons consumers share data with brands.<\/p>\n<p>Amanda also thinks some companies confuse using data well with hard-sell. \u201cThey\u2019re not thinking through the value proposition. The younger generation especially knows their data\u2019s worth. They\u2019re asking, \u2018What am I going to get for that?'\u201d<\/p>\n<h2>Keys to success with AI<\/h2>\n<p>Most companies investing in AI aren\u2019t getting immediate results. MIT research found <a href=\"https:\/\/sloanreview.mit.edu\/article\/companies-are-making-serious-money-with-ai\/\" target=\"_blank\" rel=\"noopener nofollow\">only three in 10 companies investing in AI are getting a return on their investment<\/a>.<\/p>\n<p>Who succeeds depends on how they approach it, Romesh says.<\/p>\n<div id=\"attachment_48101\" style=\"width: 310px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" aria-describedby=\"caption-attachment-48101\" class=\"wp-image-48101\" src=\"https:\/\/media.kasperskydaily.com\/wp-content\/uploads\/sites\/92\/2023\/05\/05053736\/romesh-ranwana.jpg\" alt=\"romesh ranwana\" width=\"300\" height=\"300\"><p id=\"caption-attachment-48101\" class=\"wp-caption-text\">Dr. Romesh Ranawana, AI expert<\/p><\/div>\n<blockquote><p>Companies leading with AI have continuous feedback loops \u2013 the AI operates, people give feedback and the AI adapts. They\u2019ve understood it\u2019s not something you set running and leave.<\/p>\n<cite><p>Dr. Romesh Ranawana, AI expert<\/p><\/cite><\/blockquote>\n<p>He thinks why you\u2019re doing it matters too \u2013 it should be about changing how the company does business, not simply making savings. \u201cIf you look at AI as a way to automate what you do now, you\u2019ll get reduced costs but not much benefit. You need to mesh AI and people in your organization to generate value, so they\u2019re learning from each other.\u201d<\/p>\n<p>Amanda adds, \u201cMany companies want to flick a switch and, in two hours, make it happen. They don\u2019t understand it has to be a strategic driver for the business.\u201d<\/p>\n<p>Romesh and Amanda both highlight good-quality training data as a critical success factor.<\/p>\n<p>Romesh says, \u201cCustomers and their behaviors change \u2013 what you train today may not be relevant in a week\u2019s time. AI systems must be continuously trained on real-time, up-to-date data. Companies need data collected continuously kept in a single space \u2013 we call it \u2018the data lake.'\u201d<\/p>\n<div id=\"attachment_48103\" style=\"width: 310px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" aria-describedby=\"caption-attachment-48103\" class=\"wp-image-48103 size-medium\" src=\"https:\/\/media.kasperskydaily.com\/wp-content\/uploads\/sites\/92\/2023\/05\/05054755\/amanda_cromhout-1-300x300.jpg\" alt=\"\" width=\"300\" height=\"300\"><p id=\"caption-attachment-48103\" class=\"wp-caption-text\">Amanda Cromhout, CEO, Truth customer loyalty consultancy<\/p><\/div>\n<blockquote><p>The quality of the output is only as good as the quality of the data. If you don\u2019t have good data, fabulous software can\u2019t necessarily make sense of it.<\/p>\n<cite><p>Amanda Cromhout, CEO, Truth customer loyalty consultancy<\/p><\/cite><\/blockquote>\n<p>Amanda also believes the C-suite must support an AI strategy, even lead it. \u201cIt doesn\u2019t start with marketing executives wanting to do this \u2013 it starts at the top, with the CEO and the board.\u201d But they shouldn\u2019t expect too much, too soon. \u201cThe leaders of any company must understand it\u2019s an ultramarathon, not a sprint.\u201d<\/p>\n<p>Romesh notes it\u2019s becoming possible for more people to work with AI. \u201cAI systems are still complicated. It takes knowledge, data engineering and software skill. Over the last few years, more tools have come out \u2013 low-code or no-code tools \u2013 making AI more accessible to more people.\u201d<\/p>\n<h2>How AI is changing cybercrime<\/h2>\n<p>AI didn\u2019t need to be more accessible for cybercriminals to use it, which has implications for business. In research with Kaspersky\u2019s Global Research and Analysis Team, Fabio Assolini has seen several <a href=\"https:\/\/www.kaspersky.com\/blog\/secure-futures-magazine\/machine-learning-ai-cybersecurity\/32188\/\" target=\"_blank\" rel=\"noopener nofollow\">applications of AI in cybercrime<\/a>. \u201cAI is helping cybercriminals bypass new authentication methods. Some financial institutions and banking apps use <a href=\"https:\/\/www.kaspersky.com\/blog\/secure-futures-magazine\/body-recognition-privacy\/28958\/\" target=\"_blank\" rel=\"noopener nofollow\">biometric authentication<\/a>, where the user must look to the right, to the left and smile. We\u2019ve seen cybercriminals using AI tools to do this with only a victim\u2019s photo.\u201d<\/p>\n<p>How businesses should respond isn\u2019t straightforward \u2013 they need to identify more fraudsters while not misidentifying too many customers. \u201cYou can fine-tune authentication methods to better identify fraud attempts, but you may get many false positives. It\u2019s a balance,\u201d says Fabio.<\/p>\n<p>Fabio recommends businesses ensure AI <a href=\"https:\/\/www.kaspersky.com\/blog\/secure-futures-magazine\/technology-data-ethicist\/46328\/\" target=\"_blank\" rel=\"noopener nofollow\">training data is ethically gathered<\/a> and complies with <a href=\"https:\/\/www.kaspersky.com\/blog\/secure-futures-magazine\/privacy-global-regulations-new\/42834\/\" target=\"_blank\" rel=\"noopener nofollow\">privacy regulation<\/a> in countries they distribute to. \u201cSome free apps for adding special effects to pictures <a href=\"https:\/\/www.kaspersky.com\/blog\/check-what-data-apps-collect\/29120\/\" target=\"_blank\" rel=\"noopener nofollow\">collect and sell data sets for training AI<\/a>. There\u2019s a privacy issue, especially in Europe with GDPR, but sometimes those collecting the data are in parts of the world without privacy restrictions.\u201d<\/p>\n<p>To comply with GDPR, <a href=\"https:\/\/www.cnil.fr\/en\/ai-ensuring-gdpr-compliance\" target=\"_blank\" rel=\"noopener nofollow\">AI systems that use personal data must be developed, trained and deployed<\/a> with a clear objective determined at the design stage. It must be legitimate and compatible with the organization\u2019s goals.<\/p>\n<h2>AI\u2019s future in business<\/h2>\n<p>Amanda stresses the need for brands to understand what their data really means about every human behind it. \u201cData scientist <a href=\"https:\/\/www.linkedin.com\/in\/shorful\/\" target=\"_blank\" rel=\"noopener nofollow\">Dr. Shorful Islam<\/a> says, at the end of every data point is a human being we\u2019re trying to persuade to do something differently, or trying to make their engagement with a brand more pleasurable, or whatever the desired outcome. So you\u2019ve got to think about behavior more like human beings, rather than robots.\u201d<\/p>\n<p>Romesh sees AI leading to powerful change in consumer behavior. \u201cWe\u2019re buying things we\u2019d never have bought before because companies are pushing them to us. <a href=\"https:\/\/www.rejoiner.com\/resources\/amazon-recommendations-secret-selling-online\" target=\"_blank\" rel=\"noopener nofollow\">Amazon reports 35 percent of its revenue comes from recommendations<\/a>.\u201d And those features will only get cleverer. \u201cSystems will become more powerful because they\u2019ll have more data feeding in.\u201d<\/p>\n<p>Listen to the <a href=\"https:\/\/insight-story.podbean.com\/\" target=\"_blank\" rel=\"noopener nofollow\">full Insight Story audio series on Podbean or your usual podcast provider<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Artificial intelligence can be a game-changer in business, but not all get a good return on their investment. Two experts on how to make it work.<\/p>\n","protected":false},"author":2521,"featured_media":48098,"template":"","coauthors":[3452],"class_list":{"0":"post-48097","1":"emagazine","2":"type-emagazine","3":"status-publish","4":"has-post-thumbnail","6":"emagazine-category-artificial-intelligence","7":"emagazine-category-data-and-privacy","8":"emagazine-category-digital-transformation","9":"emagazine-tag-customer-experience","10":"emagazine-tag-insight-story"},"hreflang":[{"hreflang":"x-default","url":"https:\/\/www.kaspersky.com\/blog\/secure-futures-magazine\/insight-story-artificial-intelligence\/48097\/"},{"hreflang":"en-us","url":"https:\/\/usa.kaspersky.com\/blog\/secure-futures-magazine\/insight-story-artificial-intelligence\/28251\/"}],"acf":[],"_links":{"self":[{"href":"https:\/\/www.kaspersky.com\/blog\/wp-json\/wp\/v2\/emagazine\/48097","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.kaspersky.com\/blog\/wp-json\/wp\/v2\/emagazine"}],"about":[{"href":"https:\/\/www.kaspersky.com\/blog\/wp-json\/wp\/v2\/types\/emagazine"}],"author":[{"embeddable":true,"href":"https:\/\/www.kaspersky.com\/blog\/wp-json\/wp\/v2\/users\/2521"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.kaspersky.com\/blog\/wp-json\/wp\/v2\/media\/48098"}],"wp:attachment":[{"href":"https:\/\/www.kaspersky.com\/blog\/wp-json\/wp\/v2\/media?parent=48097"}],"wp:term":[{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.kaspersky.com\/blog\/wp-json\/wp\/v2\/coauthors?post=48097"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}