Trim Size: 6.625in x 9.625in ❦ Boobier ffirs.tex V1 - 03/16/2018 8:09am Page i Advanced Analytics and AI ❦ ❦ ❦ Trim Size: 6.625in x 9.625in ❦ Boobier ffirs.tex V1 - 03/16/2018 8:09am Page ii Founded in 1807, John Wiley & Sons is the oldest independent publishing company in the United States With offices in North America, Europe, Australia and Asia, Wiley is globally committed to developing and marketing print and electronic products and services for our customers’ professional and personal knowledge and understanding The Wiley Finance series contains books written specifically for finance and investment professionals as well as sophisticated individual investors and their financial advisors Book topics range from portfolio management to e-commerce, risk management, financial engineering, valuation and financial instrument analysis, as well as much more For a list of available titles, visit our website at www.WileyFinance.com ❦ ❦ ❦ Trim Size: 6.625in x 9.625in ❦ Boobier ffirs.tex V1 - 03/16/2018 8:09am Page iii Advanced Analytics and AI Impact, Implementation, and the Future of Work TONY BOOBIER ❦ ❦ ❦ Trim Size: 6.625in x 9.625in ❦ Boobier ffirs.tex V1 - 03/16/2018 8:09am Page iv This edition first published 2018 © 2018 John Wiley & Sons, Ltd Registered office John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex, PO19 8SQ, United Kingdom For details of our global editorial offices, for customer services and for information about how to apply for permission to reuse the copyright material in this book please see our website at www.wiley.com All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, except as permitted by the UK Copyright, Designs and Patents Act 1988, without the prior permission of the publisher Wiley publishes in a variety of print and electronic formats and by print-on-demand Some material included with standard print versions of this book may not be included in e-books or in print-on-demand If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at http://booksupport.wiley.com For more information about Wiley products, visit www.wiley.com Designations used by companies to distinguish their products are often claimed as trademarks All brand names and product names used in this book are trade names, service marks, trademarks or registered trademarks of their respective owners The publisher is not associated with any product or vendor mentioned in this book ❦ Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose It is sold on the understanding that the publisher is not engaged in rendering professional services and neither the publisher nor the author shall be liable for damages arising herefrom If professional advice or other expert assistance is required, the services of a competent professional should be sought Library of Congress Cataloging-in-Publication Data Names: Boobier, Tony, 1956– author Title: Advanced analytics and AI : impact, implementation, and the future of work / by Tony Boobier Description: Chichester, West Sussex, United Kingdom : John Wiley & Sons, 2018 | Series: Wiley finance series | Includes bibliographical references and index | Identifiers: LCCN 2018003398 (print) | LCCN 2018005453 (ebook) | ISBN 9781119390923 (pdf) | ISBN 9781119390930 (epub) | ISBN 9781119390305 (cloth) Subjects: LCSH: Management—Statistical methods | Artificial intelligence—Industrial applications Classification: LCC HD30.215 (ebook) | LCC HD30.215 B66 2018 (print) | DDC 658.0072/7—dc23 LC record available at https://lccn.loc.gov/2018003398 Cover Design: Wiley Cover Images: blurred people © blurAZ/Shutterstock; hand touch © whiteMocca/Shutterstock; hand touch © monsitj/iStock Set in 10/12pt, SabonLTStd by SPi Global, Chennai, India Printed in Great Britain by TJ International Ltd, Padstow, Cornwall, UK 10 ❦ ❦ Trim Size: 6.625in x 9.625in ❦ Boobier ftoc.tex V1 - 03/16/2018 8:15am Page v Contents Acknowledgements ❦ xi Preamble: Wellington and Waterloo xiii Introduction xv Prologue: What Do We Mean by Work ? Summary Introduction Slavery or Freedom? The Rise of Industrialisation Gen Z and the Flat White Society The Impact of Unemployment Replacing the Need to Work Conclusion Notes 1 12 13 14 CHAPTER Introduction to Analytics 15 Summary Introduction Business Intelligence Advanced Analytics Prescriptive Analytics Business Rules Cognitive Analytics The Accuracy of Analytical Outputs Conclusion Notes CHAPTER Artificial Intelligence 15 15 17 20 25 27 29 31 34 35 37 Summary Introduction The Turing Test The Dartmouth Event 37 37 38 40 v ❦ ❦ Trim Size: 6.625in x 9.625in ❦ vi ftoc.tex V1 - 03/16/2018 8:15am Page vi CONTENTS Post-Dartmouth, the AI Winter, and Singularity Springtime for AI? How Does AI Work? Can Computers Be Creative? Conclusion Notes CHAPTER The Impact of AI on Leading-Edge Industries ❦ Boobier 41 43 45 48 50 51 53 Summary Introduction Financial Services Retail Banking Commercial Banking Investment Banking Wealth Management Insurance Automobiles AI Implementation Timeline Key Developments Innovating to Zero AI and Motor Manufacturing Media, Entertainment, and Telecom Retail Conclusion Notes 53 53 57 57 59 60 62 63 67 68 69 71 72 77 79 83 84 CHAPTER The Impact of AI on Second-Mover Industries Summary Introduction Construction Augmented Reality Drones and Remote Imagery Contractor Plant and Equipment Employee Behaviour Cultural Change in Construction Utilities and Infrastructure Resilience Construction Industry Summary Utilities Electrical Power Gas Water Wastewater Smart Homes, Smart Infrastructure? Interconnectivity, Poverty, and Famine Public Services Education ❦ 88 88 88 89 90 91 92 92 94 95 96 97 97 98 98 99 99 100 101 104 ❦ Trim Size: 6.625in x 9.625in ❦ Boobier V1 - 03/16/2018 8:15am Page vii vii Contents Policing Healthcare Agriculture Technology Industry Conclusion Notes 107 108 109 111 113 114 CHAPTER The Impact of AI on Professions ❦ ftoc.tex 117 Summary Introduction Work and Professions The Importance of Competences The Morevec Paradox and Why it Threatens Professionals Management Office of Finance Legal Profession Sales and Marketing Retailers Commercial Media Creative Arts Publishing Transportation The Digital Railway Autonomous Flight and Virtual Pilots Air Traffic Controller Engineers and the Built Environment Building Engineers Building Planners Medical Profession General Practitioners Dentists Neurosurgeons Data Centres Entrepreneurs Conclusion Notes CHAPTER Risk and Regulation 117 117 118 122 122 124 125 127 130 131 133 134 135 137 137 138 139 140 140 141 142 143 143 143 145 147 150 151 155 Summary Introduction What Is Risk? Technology and System Failures Data Security and Privacy Employee Error and Fraud Inadequate or Failed Procedures, Systems, and Policies Reputational Risk ❦ 155 155 156 157 158 160 161 162 ❦ Trim Size: 6.625in x 9.625in ❦ Boobier viii 8:15am Page viii CONTENTS External Risk Financial Risk AI and the Future of Compliance Roles, RegTech, and Forgiving the Machine Conclusion Notes CHAPTER Implementation Road Maps ❦ ftoc.tex V1 - 03/16/2018 163 164 165 167 169 170 172 Summary Introduction New Thinking on Employee Training Robotics and Process Automation Implementation Frameworks Key Implementation Questions Leadership and Sponsorship Creating a Team Finding Talent Managing Progress Human Resources Function Alternative Spaces: The New Workplace Timing: How Long to Implement? Is Big Bang Transformation Possible? Conclusion Notes CHAPTER New Business Models 172 172 174 176 177 177 179 181 182 182 185 186 189 190 191 192 194 Summary Introduction Augment or Automate? Issues of Place and Time Contextual Insight Wordplay and Communication New Business Models for New Markets Conclusion Notes CHAPTER Coping with the Future 194 194 197 199 201 202 203 203 205 206 Summary Introduction Existing Roles in AI Future Roles in AI AI Education Academic Education On-the-Job Learning: Start-Ups and Innovation Labs Personal Capabilities for Success ❦ 206 206 207 208 209 210 210 212 ❦ Trim Size: 6.625in x 9.625in ❦ Boobier 8:15am Page ix ix Contents Can Computers Innovate? Living with Robots Elderly Healthcare and Robots Taking Instructions and Advice from Computers Rules for Robots Conclusion Notes CHAPTER 10 Strategies for Personal Reinvention 212 214 216 217 220 221 222 224 Summary Introduction The Need for Personal Reinvention How Easy Is It to Change? The Importance of Events and Conferences The Freedom of Franchises – from Employee to Owner Can We Cope with Doing Nothing? Third-Age Thinking Conclusion Notes ❦ ftoc.tex V1 - 03/16/2018 224 224 225 226 228 229 230 231 232 234 APPENDIX A: IMPLEMENTATION FLOWCHARTS 235 APPENDIX B: JOBS MOST AFFECTED BY ARTIFICIAL INTELLIGENCE 241 APPENDIX C: LIST OF PROFESSIONAL AI ORGANISATIONS 264 APPENDIX D: LIST OF TABLES 274 APPENDIX E: LIST OF FIGURES 276 INDEX 277 ❦ ❦ ❦ Trim Size: 6.625in x 9.625in 272 ❦ Boobier bapp03.tex V1 - 03/13/2018 4:34pm Page 272 ADVANCED ANALYTICS AND AI: IMPACT, IMPLEMENTATION, AND THE FUTURE OF WORK Florida Artificial Intelligence Research Society www.flairs com IEEE Computer Society https://www computer org IEEE Computational Intelligence Society http://cis.ieee org International Neural Network Society (INNS) https://www inns.org ❦ The Florida Artificial Intelligence Research Society was founded in 1987 to promote and advance AI within the state of Florida, including interaction between researchers at the various colleges, universities, and industry Membership is open to all (Florida residents and nonresidents) who attend the yearly conference The IEEE Computer Society is the world’s leading membership organisation dedicated to computer science and technology Serving more than 60,000 members Interested specifically in the theory, design, application, and development of biologically and linguistically motivated computational paradigms emphasising neural networks, connectionist systems, genetic algorithms, evolutionary programming, fuzzy systems, and hybrid intelligent systems in which these paradigms are contained Premiere organisation for individuals interested in a theoretical and computational understanding of the brain and applying that knowledge to develop new and more effective forms of machine intelligence INNS was formed in 1987 by the leading scientists in the neural network field ❦ ❦ Trim Size: 6.625in x 9.625in bapp03.tex V1 - 03/13/2018 4:34pm Page 273 273 List of Professional AI Organisations ❦ Boobier Singularity University https://su.org Machine Intelligence Research Institute Formerly the Singularity Institute for Artificial Intelligence (SIAI) https:// intelligence org ❦ Singularity University is a global community using exponential technologies to tackle the world’s biggest challenges Its learning and innovation platform empowers individuals and organisations with the mind-set, skill set, and network to build breakthrough solutions that leverage emerging technologies, such as AI, robotics, and digital biology Formerly the Singularity Institute for Artificial Intelligence (SIAI), the Machine Intelligence Research Institute is a research nonprofit studying the mathematical underpinnings of intelligent behaviour Our mission is to develop formal tools for the clean design and analysis of general-purpose AI systems, with the intent of making such systems safer and more reliable when they are developed ❦ ❦ Trim Size: 6.625in x 9.625in Boobier bapp04.tex V1 - 03/13/2018 APPENDIX 4:34pm Page 274 D List of Tables Table 1: Murray’s Table of Needs Table 2: Religious Belief by Generational Cohort Table 3: Founder Age of US$1 Billion VC-backed Private Companies Table 4: Typical Capabilities Used in Advanced Analytics ❦ Table 5: Uses of Advanced Analytics Table 6: Key Skills and Capabilities of BPM Practitioners Table 7: The Luddites200 Organising Forum’s Objections to Technological Change Table 8: The Five-stage Process of Implementing AI in Autos Table 9: AI Extract, Gartner Hype Cycle Report Table 10: 2015 Market for Commercial Drones in US$ Billion Table 11: Costs to Britain of Workplace Injury and New Cases of Work-Related Ill Health by Industry, 2015/16 Table 12: Core Competences in the Workplace Table 13: The New Role of the Manager Table 14: The New Role of the CFO Table 15: The New Role of the Lawyer Table 16: The New Role of Sales Table 17: The New Role of Marketing Table 18: The New Role of the Retailer Table 19: The New Role of the Creative Artist Table 20: The New Role of the Publisher Table 21: Future Competences for Pilots Table 22: Future Competences for Building Engineers Table 23: Future Competences for Building Planners Table 24: Future Competences for General Practitioners Table 25: Future Competences for Dentists 274 Advanced Analytics and AI: Impact, Implementation, and the Future of Work, First Edition Tony Boobier © 2018 John Wiley & Sons, Ltd Published 2018 by John Wiley & Sons, Ltd ❦ ❦ Trim Size: 6.625in x 9.625in ❦ Boobier bapp04.tex V1 - 03/13/2018 4:34pm Page 275 275 List of Tables Table 26: Future Competences for Entrepreneurs Table 27: Comparison Between Unattended and Attended Automation Table 28: Pros and Cons of Big Bang Implementation Table 29: Components of an Intelligent Business Model Table 30: Key Drivers of Economic Growth in India, Brazil, and China Table 31 AI: Reasons to Be Hopeful, or Not Table 32: Size of Self-Help Marketplace ❦ ❦ ❦ ❦ Trim Size: 6.625in x 9.625in Boobier bapp05.tex V1 - 03/13/2018 APPENDIX 4:35pm Page 276 E List of Figures Figure 1: Maslow for a New Age Figure 2: The Road to Artificial Intelligence Figure 3: The AI Ecosystem Figure 4: Segmentation of the Banking Industry ❦ Figure 5: Segmentation of the Insurance Industry Figure 6: Intelligent and Integrated Construction Industry Figure 7: Defragmentation of Publishing Figure 8: Intelligent Business Models Figure 9: Maslow for the Third Age 276 Advanced Analytics and AI: Impact, Implementation, and the Future of Work, First Edition Tony Boobier © 2018 John Wiley & Sons, Ltd Published 2018 by John Wiley & Sons, Ltd ❦ ❦ ❦ Trim Size: 6.625in x 9.625in Boobier bindex.tex V1 - 03/16/2018 8:45am Page 277 Index 2001 - A Space Odyssey (film) 15–16, 30 80/20 rule 21 ❦ AAAI 41, 155 ABB 138 ABN Amro Bank 61 absence of information, as objection to computer intelligence 39 Accenture 57, 63–4, 73, 197 accidents, construction workplace 92–3 acquisition 6, 19, 60, 61, 80, 84, 120, 177 adaptation form 215 functional 215 interactive 215–16 adaptive behavioural analysis 161–2 ADEA 145 advertising 77, 78, 112, 130, 165, 186 aesthetics 49 affective conditioning 77 Age of Uncertainty 195, 196 age, employment and 10–12 ageism 10 agriculture 88, 109–11 precision 110 AI education 209–11 existing roles in 207 future of 172–4 future roles in 208–9 origin of term 41 road to 27 rules 44–5 AI winter 37, 41–3 air traffic controller 139–40 air transport 138–40 Aircrew Labor In-Cockpit Automation System (ALIAS) 138–9 Alan Turing Institute 38 Aletras, Dr Nikolaos 129 algorithm-based approach to AI 45–6 algorithmic probability 42 Alias system 138–9 AlphaGo 47 Amazon 113 American Association for Artificial Intelligence 41 American Association for the Advancement of Sciences 56 American Dental Education Association (ADEA) 145 American Institute of Artificial Intelligence 155 American Society of Civil Engineers (ASCE) 89 Amex Forum 181 analytics accuracy of outputs 31–2 advanced 17, 20–5 cognitive 17, 20, 23, 26, 29–31, 34 contextual predictive 29, 26, 32, 65, 83, 108, 111, 162, 200 prescriptive 17, 25–7, 32, 180 as a service 23 ancient Greece 3, 37, 226 ancient Rome 2–3, 226 Anderson, Steve 140 Andress, Ursula 78 Android operating system 69 antifraud management 164 API 17 Apple 69, 73, 132 iPad 106 Siri 30 Watch 30 Application Programming Interface (API) 17 Arbeit Macht Frei Aristotle 107, 116, 216 artificial emotion 47 artificial general intelligence (AGI) 47 artificial intelligence see AI Artificial Intelligence Governance Model and Product 155 artificial intelligence marketing (AIM) 162 artificial neural networks 45 Advanced Analytics and AI: Impact, Implementation, and the Future of Work, First Edition Tony Boobier © 2018 John Wiley & Sons, Ltd Published 2018 by John Wiley & Sons, Ltd ❦ 277 ❦ Trim Size: 6.625in x 9.625in ❦ 278 ❦ Asia 22, 99, 195 Asimov, Isaac 32, 67 Three Laws of Robotics 220 Association for the Advancement of Artificial Intelligence (AAAI) 41, 155, 159 Association of British Insurers 65 Auger, James 215 augmentation vs automation 67, 122, 197–8 augmented reality 90–1 auto insurance industry 75 automation 2, 197–9 augmentation vs 67, 122, 197–8 of agriculture 110 of auto industry 72, 74–6 of dentistry 143 of insurance 65 of legal system 128, 138–9 of public sector 101, 104 of railway industry 138 of regulation 169 of risk management 170 robotic desktop (RDA) 176 robotic process (RPA) 176–7 of sales 183 of telecom market 78–9 trade unions and 103 of training 176 unemployment and 9–10, 231 wealth management and 63 automobile industry 67–77, 89 Ayasdi 169 Ayata 26, 180 B2C (business to consumer) model 78 Babbage, Charles 39 Baidu 111, 112 Easterly Ventures 112 Ban Ki-moon 100 Bandler, Richard 160 Bank of America 166 Bank of England 58 Bank of Tokyo-Mitsubishi UFJ 58 banking industry commercial 59–60 investment 60–2 reputational risk 162 retail 57–9 Barnard, Chester 62 basic income model 196 Baum, L Frank 90 Baus, Atanu 180 Bayes Law/Bayes Rule 22 BBVA 168 Beckett, Samuel 226 benchmarking 183 benefit management flowchart 239 Benz, Karl 69 Boobier bindex.tex V1 - 03/16/2018 8:45am Page 278 INDEX Bernouilli, Daniel 32 Bernouilli numbers 39 BI 15, 17–19, 20, 29 bias 8, 44, 62, 108, 172, 193, 219 cognitive 168 big bang transformation 190–1 big data 158, 159 Billion Dollar Club 11 BIM 90, 199 bin Sultan, Brigadier Abdullah 107 binary code 30 Bing 201 binge eating 10 biopharma 108 Black, Julia 166 Blade Runner 31 Blair, Tony Blake, William Blizzard 213 Bocelli, Andrea 122 Boeing 76, 90 bombe 38 Bonaparte, Napoleon xiii Boston Consulting Group 146 Bostrom, Nick 13 bot care- 109 chat- 65, 102, 175, 208 co- 177 nudge- 219 scam 219 spy- 219 Woe- 109 Boudreau, Professor John 127 Bourneville BPM 28 BPM Institute 28 BPM practitioners, key skills and capabilities 29 BPR 28, 189 brain, human 31, 124, 143–5, 213–14, 220 brain-friendly learning 174 brave new world 222 Brazil 3, 112, 181, 196, 204 Breaking the Frame 56 Brooks, Rodney 124 Brunel Buddhism 9, 233 Buffett, Warren 196 Building Information Management (BIM) 90, 199 building planners 141–2 built environment 89, 140–2 Burkeman, Oliver 230 Burton, Anthony 149 business intelligence (BI) 15, 17–19, 20, 29 business model 5, 12, 54, 83–4, 194–205 advertising and media 78 contextual insight 201–2 ❦ ❦ Trim Size: 6.625in x 9.625in ❦ Boobier bindex.tex V1 - 03/16/2018 ❦ Cadbury family calculations 18 Calvin, John cancer, diagnosis of 108–9 Cannon, Robert 209 card not present (CNP) transactions 161 Carebots 109 Carey, Maria 64 Carlyle, Thomas Carnegie, Andrew 4, 53, 119 Carney, Mark 58 CATIA (computer aided three-dimensional interactive application) 76 Caudwell, Thomas 90 Celent 169 Centre for Digital Built Britain 94 Centre for the Protection of National Infrastructure (CPNI) 96 CFO 125–8, 156, 183–4 Chartered Institute of Personnel and Development 185 chatbot 65, 102, 175, 208 chemputers 173 Chevening Programme 181 Chief Executive Officer (CEO) 11, 125, 225 Chief Finance Officer (CFO) 125–8, 156, 183–4 Chinese economy 148 Chiswick, Guy 82 Chrétien, Jean 98 civil engineering 89–90 Clarke, Arthur C 15, 30, 42 class visualisation 49 Clifford, Charles 213 climate change 95, 97, 98, 141 cloud 80 clustering 21 Coalition Eau 99 Cobb, Martin 157 Cobb’s paradox 157 cobot 177 Coca-Cola 203, 229 code 30 cognitive dress 49 Page 279 279 Index definition 194 ethics and 113 for new markets 203–5 insurance 163 Intelligent 198, 199 manufacturing 72–3 place and time 199–201 publishing 136, 137 Business Process Management (BPM) 28 Business Process Reengineering (BPR) 28, 189 business rules 26, 27–8, 197 buy side 60–1 Byron, Lord 39 8:45am cognitive intelligence 29, 43 cognitive wealth advisors 63 Cognizant 58 Cole, Margo 94 collaboration 12 Collins, Francis 56 Columella coming technology 112 commercial media 133–7 commonplace talents 196 communication 202–3 nonverbal 227 competences 122, 123 competency-based education 104–5 compliance officer 155, 169 computerised music 50 conference organisers 175, 228 conferences 228–9 Connected Driver Advisory System (DAS) 138 Connery, Sean 78 consciousness 47 construction industry 89–97 accident prevention 92–4 building engineers 140–1 cultural change in 94–5 utilities and infrastructure resilience 95–6 consumer electronics industry 190–1 consumer generated content (CGC) 82 contextual analytics 25 convergence of industries 83 convolutional neural networks 214 core processes 189 Corea, Francesco 172, 173 correlation 22 Couzens, James 148 CPNI 96 creative artist, role of 135 creative industry 134–5, 186–7, 188–9 creativity 118 computer 48–50 credit risk management 164 Crichton, Michael 16 Cronin, Professor Lee 173 crop stress 110 Crosby, Vin 77 Cumberbatch, Benedict 38 Cummins 76 customer loyalty programmes 33–4 customer retention 64, 65 customer service industry 88 cyberattack 157 cybercrime 159–60 cybernetics 40 Daimler 68 Dartmouth Conference 37, 40–1, 50 Darwin, Charles 215 ❦ ❦ Trim Size: 6.625in x 9.625in ❦ 280 ❦ data big 158, 159 new era of 25 security and privacy 158–60 structured 158 unstructured 158 data centres 145–6 Datacenter People 146 Davis, Kord 159 Davison, Mike 120 decepticons 219 decision-tree analysis 21 decryption 38 Deep Blue 29 Deep Mind 213 DeepDream 49 Dehaene, Stanislas 40 Dell 159 Deloitte 17, 19, 127 democracy 39 democratic transhumanisation 124 Denmark 216 dentistry 143, 145 DePaulo, Bella 160 depression, unemployment and 10 DeScioli, Peter 217 design thinking 211 desire, human 6–7 Detroit Automotive Company 148 Deutsche Telecom 113 Dewey, Daniel 44 Dick, Philip K 32 Diefenbach, Lorenz diffusion of innovation (DoI) model 80 digital consumer 80 Digital Deliverance 77 digital railway 137–8 disability objection to computer intelligence 39 disruptive technologies 17 domestication (of robots) 215 Donkin, Richard 120 dot-com bubble 41 Dr No (film) 78 drones 66, 90, 91–2, 138, 199, 219 Drucker, Peter 5, 120, 194 duality 30 Dubner, Stephen Dunkerley, Michael 121 Easterly Ventures 112 Edison Illuminating Company 147 Edison, Thomas 95 education 104–7, 228 AI 209–11 competency-based 104–5 learning-based 104 elderly healthcare 216–17 Boobier bindex.tex V1 - 03/16/2018 8:45am Page 280 INDEX electrical power 97–8 ElliQ 143 e-mobility 54 emotient technology 132 emotion, artificial 47 Empact 180 employee error 156, 160–1 engineering civil 89–90 reliability 160 structural 89 engineers 140–2 building 140–1 building planners 141–2 Engman, Chris 131 Enigma code 38 entertainment 77–9 entities 65, 102, 175, 208 entrepreneurs 147–50, 151 characteristics 149 future competences 150 entrepreneurship 2, 147–8, 151, 180 error, employee 160–1 Esfandiary, Fereidoun N 122 ETCS 137 ETMS 137–8 European Court of Human Rights 127, 128 European Court of Justice 146 European Railway Traffic Management System 137 European Train Control System (ETCS) 137 European Train Management System (ETMS) 137–8 EU–US Privacy Shield Framework 148 events and conferences 228–9 evidence-based software 108 Excel 18 executional code 27 external risk 163–4 Facebook 112, 146 failure of AI implementation 102–3 definition 157 Fair Isaac 27 famine 100–1 fear change 183 Federal Trade Commission 219 FinaMetrica 62 Finance Finland 65 finance office 125–7, 182 Financial Conduct Authority 165 financial crisis (2007) 166 Financial Performance Management (FPM) 19, 34, 45, 168, 198 financial profiling, personal 62 financial regulation 166 ❦ ❦ Trim Size: 6.625in x 9.625in ❦ ❦ Galbraith, John Kenneth 195 galvanisation 16 gaming 78, 164, 175, 228 Gartner 18, 20, 28, 42–3, 69, 70, 82 gas 98 GCHQ 96 GDPR 159 GE 120 Gen X 7, 12 Gen Y Gen Z see post-millennials gender, innovation and 187 General Data Protection Regulation (GDPR) 159 General Motors general practitioners (GP) 143, 144 geographical information systems (GISs) 199–201 geosocialisation 80 Geovation Hub 200 German Insurance Association 65 Giannandrea, John 43 GIS 199–201 bindex.tex V1 - 03/16/2018 8:45am Page 281 281 Index financial risk 164–5 financial services 57–8 Finextra 58 Finley, Sir Moses 2–3 FinTech 53, 58, 59, 169 first mover advantage 84, 178 Flat White Economy 2, 8, 22, 59, 182 Fleming, Ian 78 Casino Royale 78 flight 138–9 fMRI 213–14 Ford, Harrison 31 Ford, Henry 4, 53, 147–8, 194 Ford Motor Company 148 forgiveness (of robots) 167, 168 Forrester 190 four ages in life 231–2 FPM 19, 34, 45, 168, 198 Fractal DeepDream 49 fractionalisation 195 franchises 229–30 Franklin, Benjamin fraud card usage 161 employee 161 Freakonomics series freedom 2–4 freemium 195 friendship (with robots) 216, 217, 221–2 Frost & Sullivan 108 Fukoku Mutual Life Insurance 162 Full Monty, The (film) 13 functional MRI (fMRI) 143–4 Furlong, Jordan 129 Boobier Gladwell, Malcolm 80 Gleiser, Marcelo 31 Global Entrepreneur Scheme 112 Global Pulse 100 Google 43, 49, 69, 111, 113, 146, 200, 213, 214 AlphaGo 47 Interlingua 202 Google Maps 200 Google Neural Machine Translation (GNMT) 202 Governance Model and Product, artificial intelligence 155 Government Communication Headquarters (GCHQ) 96 Greece, ancient 3, 37, 226 Gregoire, Caroline 56 Grinder, John 160 GSM-R 137–8 guilds 119 guilt 167–8 Hannaford, Peter 146 Harm Risk Assessment Tool (HART) 107–8 HART 107–8 Hartzog, Woodrow 219, 220 Hassabis, Demis 47 Hawking, Stephen 40, 56 head-in-the-sand objection to computer intelligence 39 Health and Safety Executive (HSE) 93, 94 healthcare 108–9 biopharma 108 elderly 216–17 diagnosis 108–9 healthcare industry 108–9, 142–5 general practitioners (GPs) 143, 144 dentists 143, 145 neurosurgeons 143–5 Helson, Ravenna 226, 227 Hensman, Ann 61, 62 Her (drama) 31 Hertzberg, Frederick hierarchy of needs (Maslow) 6–7, 80 Hine, Thomas 79 Hochchild, Arlie holistic thinking Holt-Winters methodology 21 honesty 160 HSBC 57 HSE 93, 94 Human Genome Project 56 human resources function 185–6 hunger 100–1 Hurricane Sandy 95 Huxley, Aldous: Brave New World 222 hydroelectricity 100 hype cycle 42–3, 69, 70 ❦ ❦ Trim Size: 6.625in x 9.625in ❦ Boobier bindex.tex V1 - 03/16/2018 282 ❦ Iasmus 50 IBM 17, 18, 20, 27, 58, 111–12, 146 ICE 89 i-Generation see post-millennials IIF 168, 169 illogical thinking 62 Ilys, Professor Ihab 208 Imitation Game, The (film) 38 immortalisation 124 Impact of Insurance Fraud, The 65 implementation, speed of 189–90 implementation flowchart 237 implementation frameworks 177–90 implementation road map 235 inadequate or failed procedures, systems, and policies 161 India 59, 109, 111, 181, 196, 203, 204 industrial control systems 96 Industrial Revolution 119, 165 industrialisation, rise of 4–7 industries second tier 113–14 third tier 114 Industry 4.0 74 information assurance 157 information security 157 innovating to zero 71 innovation labs 210 Institute of Civil Engineers State of the Nation report (2017) 94 Institute of International Finance (IIF) 168, 169 Institute of Personality and Social Research (IPSR) 227 Institution of Civil Engineers (ICE) 89 instrumentation 96 insurance 63–4 commercial 59, 63 fraud 65 retail 59 insurance industry 162, 190 intelligence definition of 37 facets of 37 intelligent business models 198, 199 intelligent design, theory of 215 Intelligent Machine Control 92 intelligent policing 107 intelligent refrigerator 133 interaction management 28 Interlingua (Google) 202 International Crops Research Institute for the Semi-Arid Tropics 111 International Safe Harbor Privacy Principles 146 intuitive decision making 61 investment analytics 164 Ionesco, Eugene 226 IQ 62 8:45am Page 282 INDEX Japan 9, 31, 92, 109, 138, 213, 214 Jeopardy (game show) 105 job enrichment Johnson, Ann 160 Johnson, Mark 195 Jubraj, Roy 64 Jurassic Park (film) 16 Karloff, Boris 16 Kasparov, Garry 29 Kindleysides, Sharon 94 kinetic theory 32 King, Jonathan 158 k-means 21 Koehler, Thomas 71 Komatsu 92 KomConnect 92 KPMG 73 Kraftwerk 50 Kubrick, Stanley 15, 30 Kurzban, Robert 217 Kurzweil, Ray 41, 42, 213 lack of continuity with a nervous system, as objection to computer intelligence 39 lack-of-consciousness objection to computer intelligence 39 Lady Lovelace Argument 39 Langley, Pat 41 LaRosa, John 225 Latin America 22, 67 lawyer, new role of 129 lead generation 130 leadership 179–81, 184 lean manufacturing 74 Lean Six Sigma (LSS) 74 lean start-up 210–11 Led Zeppelin 50 legal profession 127–9 leisure Lennon, John 38 Lever Brothers Levitt, Steven Lewis, Michael 194 lie detection 160 linear regression 21 Linsky, Dr Colin 20 load shedding 97 lobits 20 logical thinking 62 logistic regression 21 Lotus 123 18 Lovelace, Lady, Augusta Ada King-Noel 39–40 low-touch 195 loyalty, customer 33–4 Lucas, George 15 Ludd, Ned 55, 56 ❦ ❦ Trim Size: 6.625in x 9.625in ❦ Boobier bindex.tex V1 - 03/16/2018 ❦ ‘Mac’ McKinsey, James Machiavelli 179 machine learning approach to AI 46 types of 46 Magretta, Joan 194 Maita, Aki 219 Makiguchi, Tsunesaburo Malcomson, Alexander 148 mall, shopping 195 management 124–5 management information 26 management of risk 64 manager, role of 126 manufacturing 119 manufacturing process 72–3 marathon runners 12 Marchesa 49 marketing 130–1 artificial intelligence 162 new role of 132 marketing management 162 Markman, Art 227 Marx, Karl 79 Communist Manifesto Maslow, Abraham 6, 7, 12, 13, 184–5, 189, 232 hierarchy of needs 6–7, 80 mass media 77 mathematical objection to computer intelligence 39 McAfee 159 McCarthy, John 37, 40–1 McDonald’s 79, 229 McGrath, Rita 195 McIntyre, Alan 57 McKinsey, James McKinsey Company 5–6, 57, 132 media 77–9 definition 77 medical profession 142–5 Melomics 109 50 memory, levels of 47 mentoring 10, 228 Meyer, Pamela 160 Microsoft 111, 160 Cortana 30 Milgram, Stanley 218–19 Milgram experiment 218–19 Milkround Mill, John Stuart Mills Study 266–7 Milne, A.A.: Winnie-the-Pooh 233 Page 283 283 Index Luddites 55–6, 174, 200, 206, 224 neo- 55, 206, 224 Luddites200 Organising forum 55–6 Luther, Martin 4–5 Lynch, David 60 8:45am Minimum Viable Product (MVP) 211 Minority Report (film) 32 Mintzberg, Henry 120 misdescription 65 mobile 80 Moore’s law 42 Morevec, Hans 122 Morevec paradox 122–4 Mr Kipling 178 Mukai, Dr Toshiharu 216 Munich Reinsurance 211 Murphy, William H 148 Murray, Henry My Fair Lady (film) 16 Nadella, Satya 44 Nao (robot) 58 Nash, Harvey 185 Nass, Clifford 31 National Air Traffic Control Services (NATS) 140 National Cyber Security Centre (GCHQ) 96 National Health Service (NHS) 102, 104, 157 failure and 157 natural language understanding (NLU) 168 Naveh, Tomer 208 need to work 12–13 Nenebrea, Louis 39 neo-Luddism 55, 56 networking 12, 227 Neumann, John von 41 neural networks 46, 202 convolutional 214 neurosurgeons 143–5 new megatrends 53–4 Newman, Monty 29 nouvelle AI 124 NPR 161 nudgebots 219 O’Brien, James 181 OECD (Organisation for Economic Co-operation and Development) 203 Open Automobile Alliance 69 Open Handset alliance 69 operational decision management 27 operational risk 166 optimisation 25 Oracle 18 Startup Cloud Accelerator 112 Ordnance Survey 200 Organisation for Economic Cooperation and Development (OECD) 203 outsourcing 23, 73, 74, 148 paradox of Mintzberg 120 Pareto analysis 21 Patterson, Douglas 159 ❦ ❦ Trim Size: 6.625in x 9.625in ❦ Boobier bindex.tex V1 - 03/16/2018 284 ❦ Paul, St Pavlina 121 PC World 106 Pegasystems 27, 177 Pemberton, John 229 Pepper (robot) 58 performance management 182–3 person reinvention flowchart 236 personal capabilities 212 personal reinvention, need for 225–6 personal wealth management 62 personality in computer systems 30 PEST analysis 179, 194 Peters, Tom 131, 150 Pickering, Kallum 9–10 pilots 138–9 Pinocchio (film) 16 Plato: Republic 38 policing 107–8 polls, political opinion 32–3 polls-of-polls 32 Port Sunlight postgenderisation 124 postindustrial era 149 post-millennials 8, 187, 188–9 poverty 100–1 precision agriculture 110 Premier Foods 178 premium 64 probability 33 professions 118–22 flowcharts 239, 240 Progenium 70 ProPublica 108 psychohistory 32 Public Broadcasting Service 106 SuperVision app 106 public service 101–4 publishing 135–6 new role pf publisher 137 punched-card method 39 PWC 90 Pyzdek, Thomas 75 Q-Network 46 quantum computing 173 Qubit 133 railway, digital 137–8 Rapolu, Bhoopathi 225 RDA 176–7, 178 RegTech 168–9 regulations, compliance with 165–7, 168 Regulatory Disasters 166 reinforcement learning 46 reliability engineering 160 reliability management 160 8:45am Page 284 INDEX religious objection to computer intelligence 39 remote imagery 90–1 reputational risk 162–3 reserves 66 retail industry 79–83, 131–3, 195 retro-vintage clothes 187–8 retailer, new role of 134 retraining 10, 12, 13 return on investment (ROI) 190 Richards, Neil 158 Rio Tinto 68 risk definition of 155, 156 external 163–4 financial 164–5 operational 166 reputational 162–3 risk appetite 156, 178–9 risk assessment framework 156 risk management 64, 156, 169–70 flowchart 238 risk tolerance test 62 Roberts, Julia 64 robotic process automation (RPA) 176–7, 178 Robotics, Three Laws of 220 robots 214–21 design 215–16 domestication 215 elderly healthcare and 216–17 rules for 206, 220–1 taking advice from 217–20 Rolex 78 Rolling Stones 49 Rome, ancient 2–3, 226 Roosevelt, Franklin Rosanoff, Martin 95 Roth, David Lee Royal Bank of Scotland (RBS) 61, 102 Royal Society of Engineering 97 rules of association 21 Russell, Stuart 44 SaaS 190 Sadler-Wells, Eugene 61, 62 sales and marketing 130–1 employee fraud in 161 new role of 131 sandbox capabilities systems 198 SAP 18 sapience 47 scambots 219 scenario analysis 169 second-mover 88 security, data 158–60 self-actualisation self-awareness 47 self-help 10, 225, 226 ❦ ❦ Trim Size: 6.625in x 9.625in ❦ Boobier bindex.tex V1 - 03/16/2018 ❦ Page 285 285 Index self-learning 175 self-organising (self-optimising) network 79 sell side 60, 61 sentience 47 Shakespeare, William 229 As You Like It 11 Macbeth 168 Tempest, The 222 Shelley, Mary: Frankenstein 16 Shift Technology 162 shopping mall 195 Silicon Valley 11 Simmons, Michael 180 Singh, Sarwant 54, 138 singularity (technical singularity) 41–2 Six Sigma approach 28, 74–5 Skillsoft 176 slavery 2–4 SMART acronym 189 smart city 142 smart construction 92 smart employees smart factories 66 smart fridges 133 smart homes 66, 99–100 SMEs 59 Smith, Adam 79 Wealth of Nations, The 17, 79 Smith, Dr David J 160 snoutfair 26 social companion robots 109 social drag 121 SoftBank 58 software as a service (SaaS) 190 Solomonoff, Ray 41, 42 speed of implementation 189–90 spirituality in the workplace 8–9 sponsorship 179–81 spybots 219 Standard Chartered 60 Star Trek 62 Star Wars (film) 15 Starbucks 131 StarCraft 213 Status Quo (rock band) 50 step change 68 stochastic optimisation 25 Stoics 226 Stoppard, Tom 226 Stott, Clifford 219 stress testing 169 Strowger, Almon 78 structural engineering 89 style transfer 49 Subway 229 suicide, unemployment and 10 superintelligence 42, 44 supply chain management 81 8:45am supply chain process 28 Surgeons 143–5 surprise-fear-embrace curve 181 Susskind, Richard and Daniel: Future of the Profession, The xvi SWOT analysis 194 tail risk management 164 talent wars 181 talent, finding 182–3 Tamagotchis 220 Tanskanen, Mika 46 taxation 13 team building AI implementation, flowchart 238 creating 181–5 multidisciplinary 182 technogaianism 124 technology and system failures 157–8 technology industry 111–13 technology risk 157 technopaganism 124 Technopedia 29 Tegmark, Max 44 telecom industry 78 Thatcham Research Centre 68 Third Age 231–2 Thomas, Dylan 233 Thomas, Major Clifford Hugh 196 Three Laws of Robotics 220 Tinder 219 Total Quality Management 28 Toyota Production System 74 Tractica 203 trade unions 103–4, 119 training, employee 174–6 future of 175 transfer learning 172 transhumanism 122–4 transportation 137–40 treat the customer fairly (TCF) principle 165 tripe exponential smoothing 21 Turing, Alan 38–40, 50 Turing test 38–9, 49, 50 Uber113 UnanimousAI 173 underwriting 164 unemployment depression and 10 impact of 9–10 long-term 10 UNICEF 99 unicorn status union movement 103–4, 119 University of the Third Age (U3A) 231 urbanisation 80 ❦ ❦ Trim Size: 6.625in x 9.625in ❦ Boobier bindex.tex V1 - 03/16/2018 286 US Environmental Protection Agency 99 utilities 97–9 electricity 97–8 gas 98 sewerage 99 water 98–9 value, company 112 value chain 194 van Gogh,Vincent 49 Vatican Pontifical Academy 40 venture capitalism 11 vertical AI solutions 208 VisiCalc 18 vision-guided vehicles (VGVs) 72–3 ❦ Waboso, David 138 Waldrop 213 Waldrop, Mitchell 213 ‘walking the floor’ 120 Walsh, Toby 44 warranties 66 wastewater 99 water 98–9 Waterloo xiii–xiv Watson computer 29, 44, 105 Watson, Jill (robot) 105 Watson, Thomas 28–9, 112, 173 wealth management 62 weather predictions 33 Webb, Amy 209 Weber, Max Webloyalty 82 Welch, Jack 120 Wellington, Duke of (Arthur Wellesley) xiii–xiv, 233 Wells, H.G.: Time Machine, The 8:45am Page 286 INDEX Wen, Howard 159 Westworld (film) 16 Whittaker, John 159 whole brain emulation 46 Wiener, Norbert 40 Wilde, Oscar 48, 168 Winnie the Pooh 233 woebots 109 Woll schlaeger, Dirk 71 Woolf, Beverly Park 105 work concept of 117–18 and professions 118–22 work ethic 4, 5, 11 working from home workplace, new 186–9 World Health Organisation 71 World Trade Organisation 165 World War I World War II 5, 38 Wright, Frank Lloyd 48 XpertHR 185 yin and yang 30 YuMi (robot) 121 zero, innovating to 54, 71–2 zero accidents 71 zero breakdowns 72 zero congestion 72 zero friction 71 zero-hour contract 10, 196, 230 zero mentality 71 zero traffic accidents 71–2 zero waste 71 Zipabout 90 ❦ ❦