Machine learning and artificial intelligence are exceedingly popular, people talk about it, scared of the potential tragedy that they would cause human beings ruled, even destroyed, by super-intelligence possessed by machines.
However, I think these worries are too far-fetching, what’s interesting is to find how ML/AI can solve problems in our current work. DataRobot, a start-up founded by a bunch of data scientists, engineers set a leading example.
This firm, as is stated in its website, “they automate the entire modeling lifecycle, enabling users to quickly and easily build highly accurate predictive models. The only ingredients needed are curiosity and data — coding and machine learning skills are completely optional!”
Equipped with the ML/AI based models, they are able to shake the whole industry spectrum from financial management, banking, insurance, to healthcare, security, energy, marketing and the list will go on.
First, in the arena of financial management, a notion called “robo-advising” is already familiar. The idea of using an algo/robo to compose and rebalance investment portfolio is heavily dependent on the soundness of the algo. It’s conceivable but DataRobot didn’t provide a case study.
On another financial space – offering “No Credit Needed” lease-to-own business, constructing a predictive rating model is life-critical for such companies as Crest Financial to survive and sustain. The partnership between Crest Financial and DataRobot is documented in a case study. ML/AI based model is proved to be far more accurate and efficient in predicting credit status than hand-built models. This is a spot-on exemplary illustration of ML/AI power. Similar to loan business, insurance will be largely benefited from ML/AI technology too. DataRobot listed their works on underwriting for impaired life customers, insurance pricing, fraudulent claiming, claim payment automation, claim development.
People will embrace the idea of applying ML/AI in the credit-rating area. However, when the infrastructure algorithms such as Tensorflow are widely available to the public for free, I think the access to user data is of quintessential importance. Gigantic platform providers such as Amazon, Facebook, Alibaba, Tencent no-questionably have advantages. The world is moving so rapidly that regulation falls behind in keeping up with the pace. Hence, data scraping is inevitable, small firms like DataRobot should be able to figure out ways to leverage public data as well as requesting data and content from their clients.
In healthcare, disease propensity analysis is what ML/AI instantly demonstrate the power. Using a large-scale demographic, epidemic, and other data source, DataRobot is able to quantify the likelihood of a particular disease, so not only they can help reduce the costs but also take pre-emptive actions to improve health. With the addition of DNA sequence data, we can anticipate potential breakthroughs occurring in this space.
Lastly, I would like to summarize DataRobot’s mentioning of target marketing, ICU occupancy management, together with the ambient Uber, Lyft kind of services providing car-passenger matching into “Operational or General Management”. This can be universally adopted in almost all entities including schools, hospitals, airports, big companies. Anywhere logistic, administrative coordination is required to be conducted o a large magnitude, ML/AI is certainly a cutting-edge tool.
It’s also worth noting that in government’s intelligence department, ML/AI can play a vital role to help detect fraud, counter-terrorism, and guard cybersecurity.
My focal interest is to foresee what industries/sectors would be transformed most imminently so not only we can watch out from being sidelined, but also to capitalize on new opportunities they would offer. I think the following three fit the standard:
- Money-lending business. New forms such as crowd-financing are gaining traction.
- Insurance business. Big players will have to compete for the efficiency and accuracy to expand profit margin greatly.
- Logistic/Administrative business. Any companies who can cut general management and focus on providing their core market value will surpass competitors at a vast pace.