In the world of hype surrounding the term ‘Artificial intelligence’ (AI), it’s natural to ask how you can actually define what AI is (and isn’t).
With many tech providers offering genuinely innovative and valuable solutions under the banner of AI, whilst others use that same banner to sell what is essentially technological ‘snake oil’, it can be challenging to cut through the noise and spot the difference.
The first thing to say is that AI, as a term, is not new.
Arguments still rage about exactly what that term describes, but taking its broadest possible description (i.e. ‘any algorithm that mimics human-like behaviour’), it’s clear to see that there are examples that fit into this category going back at least 50 years. From the Ghosts who chase Pac-Man (and each have their own unique ways of chasing the player) to the Deep Blue computer that beat Gary Kasparov at chess, from Spotify’s music recommendation algorithms and all the way through to facial recognition for your iPhone and ChatGPT, human-like computer programmes have permeated our lives for a generation or more.
Why is this important?
A more relevant example would be to take one of the algorithms we use to assist in our quantitative analysis, like a clustering algorithm for a segmentation. A clustering algorithm is part of a group of algorithms called machine learning algorithms, which all fit under this broad AI definition. Therefore, you could legitimately market your segmentations as ‘AI-enhanced’, which, while technically true, could be interpreted as something completely different.
So how can you look past this marketing ploy to separate the digital wheat from the chaff?
WHERE, AND FOR HOW LONG, IS THE DATA STORED?
WHAT IS THE PROCESS FOR HANDLING ADVERSE EVENTS (AEs)?
HOW ARE BIASES MITIGATED IN THE MODEL OUTPUTS?
HOW IS THE RISK OF HALLUCINATIONS MINIMISED?
WHAT IS THE TRAINING DATA SET FOR THE MODEL?
The AI frontier is a brave new world and technological advancements in the field are moving far too quickly for regulators to keep up. This means that, in order to prevent yourself from headaches now (from ‘snake oil’ sellers) and down the line (from future regulatory decisions), you must develop a widespread understanding of AI terminology and robust guidelines for safe and effective use of AI within your business. Anyone who does not act now will find themselves looking back in a few years’ time, wondering where they got left behind.
Written 100% by humans, with no AI input
