Transcript 0:00 [on-hold music] For many organizations, AI is becoming a more concrete idea. We know it, we think about it all the time. 0:11 It's moving past the hype, and companies are finding ways to harness it to add practical value to businesses, and that's what's really great about it. 0:21 But as this happens, a concurrent trend that almost always occurs in technologies is that new challenges arise, and we have to be aware of that. 0:36 [upbeat music] Welcome to The Peggy Smedley Show, the podcasting voice of IoT and digital transformation, with your host, Peggy Smedley. 0:54 Hello, listeners, and welcome to today's edition of The Peggy Smedley Show. As always, I'm your host, Peggy Smedley. 1:01 This month on The Peggy Smedley Show and on connectedworld.com, we've been focusing on manufacturing and artificial intelligence. Today, since a new report is out, I... 1:11 on AI, I'll focus particularly on this later on, as industries like manufacturing, retail, and smart cities continue to find innovative ways to leverage AI technology. 1:24 Some of the topics we need to be thinking about in terms of AI include deepfakes, quantum machine learning, and next-gen hacking. 1:34 So for the next several minutes, I think I'll take a deep look at AI and what strategies these industries need to be considering as they pursue digital transformation that include AI technologies. 1:49 Later on in the show, I will be welcoming Osman Uzbilgiç, Associate Professor of Civil Engineering at the University of Virginia, and then I'm gonna be chan- chatting with analyst and my dear friend, Dan Miklavcic, founder of Lean Manufacturing Research, and it's gonna be a great discussion today, so I'm excited to welcome my great guests. 2:10 So let's get started. 2:12 I've been, uh, seeing some headlines lately with market numbers about AI as a service and the market in general, and AI in financial services, and AI in the medical sector, and AI in the automotive market, and AI in marketing, and AI at the edge, and you get it. 2:30 And there's just so much to discuss when it comes to AI, and we talk about it relatively frequently in attempt to try to cover it from all sides. 2:40 So for instance, AI is increasingly being used for predictive analysis, and that's boosting the demand for AI as a service. 2:49 The global AI as a service market is supposed to generate more than fifteen billion worth of value between now and twenty twenty-four. 3:00 So AI is also improving the service offerings for financial companies, which are using technologies like deep learning, natural language processing, let's say chatbots, to improve customer service and provide more personalized financial services. 3:18 Now in the medical sector, a report I just saw the other day has already defined twenty twenty as the year of historic market value for AI in medicine, and I love when they say this stuff, and it predicts growth between now and twenty twenty-six. 3:36 And I find, found a similar report making almost the same exact claims for AI in automotive, so everybody's got an opinion. 3:46 And of course, in manufacturing, AI, AI-powered technologies are being used to increase labor productivity substantially, and I've seen research that claims AI can increase productivity up to almost as much as forty percent. 4:02 So AI, it's a miracle, uh, can also pretty... kind of be the perfect visual for inspections in manufacturing, and it can unlock predictive maintenance. 4:13 Perhaps I'll dedicate a whole segment to expanding on these ideas sometime this month to give you even more insight into it. But for now, the AI report I want to dig in today is from CB Insights. 4:28 And one of the key points in the CB Insights reports is the potential impact of deepfakes in AI and in the industries that use it. 4:38 Now, deepfakes, if you're not already familiar, are hyperrealistic AI-generated images and videos. 4:46 Now, this is important, and I want you all to understand what this means, because the pros of deepfakes in industries like retail could mean swapping in faces so customers can see themselves interacting with products virtually. 5:00 Pretty cool, right? You love that stuff. 5:02 Now, another kind of creepier use of deepfakes could be third parties using influential people's images in existing videos and altering them to appear to say or do things they didn't really say or do. 5:18 Now we're getting to the creepy side, right? 5:20 Since last week was Super Tuesday, I can't help but immediately think of the potential impact that convincing deepfakes could have on important events like presidential elections, and I'm sure already the world is freaking out by this. 5:35 So let's not get into the politics, but you can imagine what can happen. So what if people start creating deepfakes of candidates saying outrageous things that then get circulated on social media as if they were real? 5:53 Now, we already know this kind of stuff happens already, but let's also talk about quantum computing and how it will affect AI.In CB Insights' report, the firm predicts that hybrid, hybrid models that combine classical machine learning algorithms with quantum AI will see practical applications in the near future. 6:17 One potential example I can think of would be improved, improved fraud detection in the financial sector. 6:26 Can you imagine, okay, the combination of AI and quantum computing for tasks that require pattern recognition and anomaly detection? 6:37 It could create a huge advantage, and I believe I have time enough to highlight on, on here right now, I'm, I'm running out of time, one more point from this report. 6:48 So, so let's kinda discuss next gen hacking, 'cause, you know, I'm always into the hacking thing, but I want you to think about this. 6:55 CB Insights Research points kinda, it kinda looks forward to the idea that next gen hacks will evolve on two fronts: fooling AI systems and leveraging AI to launch sophisticated attacks. 7:12 The first, let's think about this, fooling AI systems can be accomplished by actors with malicious intent exploiting inherent bias in an AI model. Now, just think about that for a second. 7:28 Data poisoning is another method cyber criminals can use to fool AI algorithms. 7:35 Now, basically this means introducing something tiny that will trick AI into misinterpreting data, eventually creating issues and effectively corrupting the whole algorithm. 7:49 Every time I think about that, that kind of bothers me, but we have to think about it. 7:54 The second idea is leveraging, kind of leveraging AI to launch sophisticated attacks also needs to be on our radar, and I always want to draw your attention to this, 'cause I think it's so important. 8:08 AI-based malware, for instance, is a frightening concept, and we essentially need to be looking for ways to use AI against AI. Now think about that, AI against AI. 8:22 You remember IBM's proof of concept, DeepLocker, a set of evasive attack tools powered by AI. AI developed DeepLocker to try to understand how AI is being used or could be used to enhance malicious malware techniques. 8:40 So we have to think about all these things all the time, and that's the goal. What do we need both for good and for bad? So all right, we know I'm almost out of time, but here's what I want you to think about. 8:51 Here's my opinion for today, and I want you just to think about. For many organizations, AI is becoming a more concrete idea. We know it. We think about it all the time. 9:03 It's moving past the hype, and companies are finding ways to harness, you know, all of it, to harness it to add practical value to businesses, and that's what's really great about it. 9:16 But as this happens, a concurrent trend that almost always occurs in technologies is that new challenges arise, and we have to be aware of that. The more popular and accessible a technology becomes 9:31 for legit users, we recognize this, the more popular and accessible it becomes to those who want to use it to exploit other possible people or businesses and their data. 9:45 Now remember that, and that's where we're talking about the next gen hacks tactics in using AI, and we have to think about that all the time. That's where it's most important. 9:57 So when I want to leave you with some really important tips for today, because I want you to keep thinking about how do we apply all of this. So let's bear the, these kind of risks in mind. 10:09 Let's also stay excited about AI, 'cause I don't want you to start all thinking like, "Hey, Peggy, every time you talk to us, you're always telling us about the negative." What I really want you to do is keep in mind, 10:22 keep your mind open to everything. 10:24 So at the top of this segment, I mentioned that there's a whole lot of promise for AI in so many markets, and we talked about all the markets that are really diving into it, and we talked about the markets that we see about AI as a service market, AI in financial services, AI in medical sector, AI in the automotive market, AI in marketing, AI at the edge. 10:49 We talked about all of these opportunities, and there's a whole lot of promise for AI in all of these markets. That's what's really great. AI is constantly evolving and bringing industries along with it, right? 11:03 That's what we're talking about. I always want you to think about that. 11:06 Advances in AI technologies are going to be calling, are gonna be the calling card basically of our era in technology, and that's what's so exciting. So we've got to get right on it. 11:20 We've got to keep thinking about it, and we have to remember that these are where all of our opportunities are coming from. 11:28 IoT, AI are all merging together, and we have to look at these and constantly see the evolving technologies, and we also have to remember the cyber criminals are out there. But what do we do with all the technology? 11:41 How do we leverage it? How do we use it to the best of our advantage and to the best of our abilities? And that's what makes all of this so exciting. 11:49 I love to talk about the technology, all the opportunities, but I also want you to be aware about what's coming. 11:56 So as always, I want you to think about how do you leverage AI systems, how do you leverage it for all the things that you need to do in business, and think about where do you want to go next. 12:08 AI and quantum computing, that's what's coming, right? We, we know that's what we're talking about. That's the next phase in all the things we're doing. All right. 12:17 As always, I'm running out of time, so but what do I want you to do? What's the most important thing? I want you to tweet at me at ConnectedWMag. I want you to get up on LinkedIn. I want you to read my blogs. 12:28 I want you to tell me what you think. I want you to challenge my thoughts, 'cause when we engage with e- with each other, that's when we get things going. 12:36 That's when we come up with more innovative ideas to grow the industry. That's the most important. All right. Don't forget to check out our website. 12:43 We've put up new articles for the month at connectedworld.com, or check out our show site at www.peggysemideshow.com. All right. I'm gonna take a quick break, but we're gonna be right back. 12:55 This is The Peggy Smedley Show, the podcasting voice of IoT and digital transformation. And remember, with great technology comes great responsibility. Go get that quick cup of coffee, 'cause we're gonna be right back. 13:07 [upbeat music]
