Artificial Intelligence Spreading to More Industries
May 10, 2016
According to MIT Technology Review, it has finally happened. No longer is artificial intelligence the purview of data wonks alone— “AI Hits the Mainstream,” they declare. Targeted AI software is now being created for fields from insurance to manufacturing to health care. Reporter Nanette Byrnes is curious to see how commercialization will affect artificial intelligence, as well as how this technology will change different industries.
What about the current state of the AI field? Byrnes writes:
“Today the industry selling AI software and services remains a small one. Dave Schubmehl, research director at IDC, calculates that sales for all companies selling cognitive software platforms —excluding companies like Google and Facebook, which do research for their own use—added up to $1 billion last year. He predicts that by 2020 that number will exceed $10 billion. Other than a few large players like IBM and Palantir Technologies, AI remains a market of startups: 2,600 companies, by Bloomberg’s count. That’s because despite rapid progress in the technologies collectively known as artificial intelligence—pattern recognition, natural language processing, image recognition, and hypothesis generation, among others—there still remains a long way to go.”
The article examines ways some companies are already using artificial intelligence. For example, insurance and financial firm USAA is investigating its use to prevent identity theft, while GE is now using it to detect damage to its airplanes’ engine blades. Byrnes also points to MyFitnessPal, Under Armor’s extremely successful diet and exercise tracking app. Through a deal with IBM, Under Armor is blending data from that site with outside research to help better target potential consumers.
The article wraps up by reassuring us that, despite science fiction assertions to the contrary, machine learning will always require human guidance. If you doubt, consider recent events—Google’s self-driving car’s errant lane change and Microsoft’s racist chatbot. It is clear the kids still need us, at least for now.
Cynthia Murrell, April 10, 2016
Sponsored by ArnoldIT.com, publisher of the CyberOSINT monograph
IBM Uses Watson Analytics Freebie Academic Program to Lure in Student Data Scientists
May 6, 2016
The article on eWeek titled IBM Expands Watson Analytics Program, Creates Citizen Data Scientists zooms in on the expansion of the IBM Watson Analytics academic program, which was begun last year at 400 global universities. The next phase, according to Watson Analytics public sector manager Randy Messina, is to get Watson Analytics into the hands of students beyond computer science or technical courses. The article explains,
“Other examples of universities using Watson Analytics include the University of Connecticut, which is incorporating Watson Analytics into several of its MBA courses. Northwestern University is building Watson Analytics into the curriculum of its Predictive Analytics, Marketing Mix Models and Entertainment Marketing classes. And at the University of Memphis Fogelman College of Business and Economics, undergraduate students are using Watson Analytics as part of their initial introduction to business analytics.”
Urban planning, marketing, and health care disciplines have also ushered in Watson Analytics for classroom use. Great, so students and professors get to use and learn through this advanced and intuitive platform. But that is where it gets a little shady. IBM is also interested in winning over these students and leading them into the data analytics field. Nothing wrong with that given the shortage of data scientists, but considering the free program and the creepy language IBM uses like “capturing mindshare among young people,” one gets the urge to warn these students to run away from the strange Watson guy, or at least proceed with caution into his lair.
Chelsea Kerwin, May 6, 2016
Sponsored by ArnoldIT.com, publisher of the CyberOSINT monograph
IBM: Revenue Continues to Decline
May 2, 2016
I understand the appeal of marketing. Sitting in a room with bright young people, conjuring images of “to be” products, and using Excel’s built in functions to build revenue confections—the sport of MBAs.
I read “IBM Reports Worst Revenue In 14 Years, Shares Slide.” I know I have highlighting the antics of the IBM Watson unit. How can I ignore a TV game show win, a recipe book, and assorted partnerships designed to make IBM the money machine it was in years of yore?
Right here in my office I operated the Threat Open Source Intelligence Gateway on IBM servers. I recall with fondness the eight drive DASDs, the multiple CPUs, and the redundant power supplies. I bought my Movin Cool Classic 14 to knock the room temperature to a pleasant 70 degrees. Ah, the noise. Ah, the joy of a $750 minimum roll charge when the Serveraid software nuked a SCSI set up. I loved IBM.
The shift at the company has done little to renew my faith in the firm’s ability to generate solid revenue and a bounty for stakeholders. I learned in the write up:
International Business Machines Corp reported its worst quarterly revenue in 14 years as results from newer businesses including cloud and mobile computing failed to offset declines in its traditional businesses, sending shares down nearly 5 percent in extended trading. Revenue of the world’s largest technology services company fell 4.6 percent to $18.68 billion in the first quarter, but beat analysts’ average estimate of $18.29 billion. It was the 16th straight quarter of revenue decline for IBM.
Yep, 16 consecutive quarters of revenue decline.
Seems like a trend. What is clear is that the company will continue to promote products and services which have yet to have a significant impact on IBM revenues. What if IBM has asked its “cognitive” system Watson what to do? What if IBM is implementing IBM Watson’s ideas? What if IBM Watson does not work? Will IBM marketers will respond with more partnerships and cook books.
Stephen E Arnold, May 2, 2016
Watson Joins the Hilton Family
April 30, 2016
It looks like Paris Hilton might have a new sibling, although the conversations at family gatherings will be lackluster. No, the hotel-chain family has not adopted Watson, instead a version of the artificial intelligence will work as a concierge. Ars Technica informs us that “IBM Watson Now Powers A Hilton Hotel Robot Concierge.”
The Hilton McLean hotel in Virginia now has a now concierge dubbed Connie, after Conrad Hilton the chain’s founder. Connie is housed in a Nao, a French-made android that is an affordable customer relations platform. Its brain is based on Watson’s program and answers verbal queries from a WayBlazer database. The little robot assists guests by explaining how to navigate the hotel, find restaurants, and tourist attractions. It is unable to check in guests yet, but when the concierge station is busy, you do not want to pull out your smartphone, or have any human interaction it is a good substitute.
” ‘This project with Hilton and WayBlazer represents an important shift in human-machine interaction, enabled by the embodiment of Watson’s cognitive computing,’ Rob High, chief technology officer of Watson said in a statement. ‘Watson helps Connie understand and respond naturally to the needs and interests of Hilton’s guests—which is an experience that’s particularly powerful in a hospitality setting, where it can lead to deeper guest engagement.’”
Asia already uses robots in service industries such as hotels and restaurants. It is worrying that Connie-like robots could replace people in these jobs. Robots are supposed to augment human life instead of taking jobs away from it. While Connie-like robots will have a major impact on the industry, there is something to be said for genuine human interaction, which usually is the preference over artificial intelligence. Maybe team the robots with humans in the service industries for the best all around care?
Whitney Grace, April 30, 2016
Sponsored by ArnoldIT.com, publisher of the CyberOSINT monograph
Webinjection Code a Key to Security
April 25, 2016
The heady days of open cybercrime discussions on the Dark Web are over, thanks to increasing investigation by law-enforcement. However, CaaS vendors still sell products like exploit kits, custom spam, and access to infected endpoints to those who know where to look. Security Intelligence discusses one of the most popular commodities, webinjection resources, in its article, “Dark Web Suppliers and Organized Cybercrime Gigs.” Reporter Limor Kessem explains:
“Webinjections are code snippets that financial malware can force into otherwise legitimate Web pages by hooking the Internet browser. Once a browser has been compromised by the malware, attackers can use these injections to modify what infected users see on their bank’s pages or insert additional data input fields into legitimate login pages in order to steal information or mislead unsuspecting users.
“Whether made up of HTML code or JavaScript, webinjections are probably the most powerful social engineering tool available to cybercriminals who operate banking Trojan botnets.
“To be considered both high-quality and effective, these webinjections have to seamlessly integrate with the malware’s injection mechanism, display social engineering that corresponds with the target bank’s authentication and transaction authorization schemes and have the perfect look and feel to fool even the keenest customer eye.”
Citing IBM X-Force research, Kessem says there seem to be only a few target-specific webinjection experts operating on the Dark Web. Even cybercriminals who develop their own malware are outsourcing the webinjection code to one of these specialists. This means, of course, that attacks from different groups often contain similar or identical webinjection code. IBM researchers have already used their findings about one such vendor to build specific “indicators of compromise,” which can be integrated into IBM Security products. The article concludes with a suggestion:
“Security professionals can further extend this knowledge to other platforms, like SIEM and intrusion prevention systems, by writing custom rules using information about injections shared on platforms like X-Force Exchange.”
Cynthia Murrell, April 25, 2016
Sponsored by ArnoldIT.com, publisher of the CyberOSINT monograph
Watson Lacks Conversation Skills and He Is Not Evil
April 22, 2016
When I was in New York last year, I was walking on the west side when I noticed several other pedestrians moving out of the way of a man mumbling to himself. Doing as the natives do, I moved aside and heard the man rumble about how, “The robots are taking over and soon they will be ruling us. You all are idiots for not listening to me.” Fear of a robot apocalypse has been constant since computer technology gained precedence and we also can thank science-fiction for perpetuating it. Tech Insider says in “Watson Can’t Actually Talk To You Like In The Commercials” Elon Musk, Bill Gates, Stephen Hawking, and other tech leaders have voiced their concerns about creating artificial intelligence that is so advanced it can turn evil.
IBM wants people to believe otherwise, which explains their recent PR campaign with commercials that depict Watson carrying on conversations with people. The idea is that people will think AI are friendly, here to augment our jobs, and overall help us. There is some deception on IBM’s part, however. Watson cannot actually carry on a conversation with a person. People can communicate with, usually via an UI like a program via a desktop or tablet. Also there is more than one Watson, each is programmed for different functions like diagnosing diseases or cooking.
“So remember next time you see Watson carrying on a conversation on TV that it’s not as human-like as it seems…Humor is a great way to connect with a much broader audience and engage on a personal level to demystify the technology,’ Ann Rubin, Vice President IBM Content and Global Creative, wrote in an email about the commercials. ‘The reality is that these technologies are being used in our daily lives to help people.’”
If artificial intelligence does become advanced enough that it is capable of thought and reason comparable to a human, it is worrisome. It might require that certain laws be put into place to maintain control over the artificial “life.” That day is a long time off, however, until then embrace robots helping to improve life.
Whitney Grace, April 22, 2016
Sponsored by ArnoldIT.com, publisher of the CyberOSINT monograph
Watson Weekly: IBM Watson Hooks Up with Hana
April 17, 2016
Is this a Tinder tech date or what? I read “IBM to Bring Watson’s Cognitive Capabilities to SAP Customers.” IBM’s strategy for cognitive is to either partner with or acquire every possible technology company it seems. The write up reports:
IBM Corp. is turning to its partners for help with widening the adoption of Watson in the enterprise. As part of the effort, the company this morning announced an alliance with SAP SE that will see the capabilities of the cognitive computing platform made available for users of the latter’s flagship S/4HANA business software suite.
Has anyone asked an SAP customer if he or she needs Watson?
I learned:
If the current feature set is anything to go by, then SAP and IBM are probably looking to deliver something akin to what mutual rival Microsoft Corp. offers with its Cortana Intelligence Suite. The bundle combines the virtual assistant with a number of Redmond’s cloud-based analytics services to make complex operational information accessible to everyday knowledge workers. Big Blue’s announcement specifies that the Watson integration will similarly target a “broad range of business users and … all C-suite professions.”
I wonder if SAP customers using Microsoft technology will eagerly embrace Watson.
Keep the PR machine, if not the revenues, flowing.
Stephen E Arnold, April 17, 2016
Watson Impresses a Stakeholder
April 16, 2016
I read “IBM Shows Me What Watson Can Do.” One of the points I noted about the write up was that it was written by a person who sort of thought Watson was a “computer language.” I think of Watson as open source software, acquired technology, and home brew code.
I noted this statement:
The folks at IBM ran me through a couple of examples of what Watson does. Some were more impressive then others, but one example stuck in my mind because of the language component. The company wouldn’t reveal its partner’s name, but an insurance company is using Watson to help increase online sales. According to IBM that customer has seen a high single-digit uptick in online sales because of Watson.
I love rock solid case examples.
I noted this statement:
But, like a human, Watson doesn’t always come up with the right answers at first. Watson makes mistakes while it’s learning. It understands things in the wrong way and pulls the wrong answers out of the information it has at its disposal. The team working with Watson then corrects it and tries again with another question. The time this takes depends on a lot of different variables, of course, but one customer took a year to train Watson.
How do I know that this write up may not reflect the sentiments of an objective, “real journalist.” Here’s the disclaimer:
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Stakeholders, how did you like the write up? More important: Watson, how do you feel about the write up?
Stephen E Arnold, April 16, 2016
Weekly Watson: On the Road to Italy
April 9, 2016
Don’t art history majors flock to Italy? IBM Watson is not going to marvel at David or the Vatican’s collection of Roman statues.
I read “IBM Watson Takes Analytics Prowess Overseas: Supercomputer to Work on Big Data and Genomics in Italy.”
I learned:
Watson, IBM’s supercomputing brainchild, will soon have its own pied-à-terre across the pond. Big Blue announced Thursday it would launch its first Watson Health European Center of Excellence in Milan near the Human Technopole Italy 2040 research campus.
No revenue yet. The write up revealed:
IBM data scientists, engineers and programmers will collaborate with organizations across Europe to create a new class of cloud-based connected solutions to help speed research of new treatments, personalized medicine, and discoveries to boost public health management while advancing sustainable health systems.
How long will it take for Watson to cure IBM’s revenue respiratory problem? Will the Italian climate, food, and get ‘er done attitude do the job? We can, as always, ask Watson.
Stephen E Arnold, April 9, 2016
Watson in the Lab: Quoth the Stakeholder Forevermore
April 7, 2016
I read “Lawrence Livermore and IBM Collaborate to Build New Brain-Inspired Supercomputer.” The article reports that one of the US national labs and Big Blue are going to work together to do something with IBM’s neurosynaptic computer chip. I know. I know. IBM is not really into making chips anymore. I think it paid another company lots of money to take the fab business off IBM’s big blue hands.
Never mind, quoth the stakeholder.
The write up reports that the True North “platform”
will process the equivalent of 16 million neurons and 4 billion synapses and consume the energy equivalent of a hearing aid battery – a mere 2.5 watts of power.
I like the reference to nuclear weapons in the article. I used to work at Halliburton Nuclear in my salad days, and there are lots of calculations to perform when doing the nuclear stuff. Calculations are, in my experience, a lot better than doing lab experiments the Marie Curie muddled forward. Big computer capability is a useful capability.
According to the write up:
The [neuromorphic] technology represents a fundamental departure from computer design that has been prevalent for the past 70 years, and could be a powerful complement in the development of next-generation supercomputers able to perform at exascale speeds, 50 times (or two orders of magnitude) faster than today’s most advanced petaflop (quadrillion floating point operations per second) systems. Like the human brain, neurosynaptic systems require significantly less electrical power and volume.
This is not exactly a free ride. The write up points out:
Under terms of the $1 million contract, LLNL will receive a 16-chip TrueNorth system representing a total of 16 million neurons and 4 billion synapses. LLNL also will receive an end-to-end ecosystem to create and program energy-efficient machines that mimic the brain’s abilities for perception, action and cognition. The ecosystem consists of a simulator; a programming language; an integrated programming environment; a library of algorithms as well as applications; firmware; tools for composing neural networks for deep learning; a teaching curriculum; and cloud enablement.
One question: Who is paying whom? Is Livermore ponying up $1 million to get its informed hands on the “platform” or is IBM paying Livermore to take the chip and do a demonstration project.
The ambiguity in the write up is delicious. Another minor point is the cost of the support environment for the new platform. I understand the modest power draw, but perhaps there are other bits and pieces which gobble the Watts.
I recall a visit to Bell Labs.* During that visit, I saw a demo of what was then called holographic memory. The idea was that gizmos allowed data to be written to a holographic structure. The memory device was in a temperature controlled room and sat in a glass protected container. The room was mostly empty. After the demo, I asked one of the Bell wizards about the tidiness of the demo. He laughed and took me to a side door. Behind that door was a room filled with massive amounts of equipment. The point was that the demo looked sleek and lean. The gear required to pull off the demo was huge.
I recall that the scientist said, “The holographic part was easy. Making the system small is the challenge.”
Perhaps the neuromorphic chip has similar support equipment requirements.
I will let you know if I find out who is paying for the collaboration. I just love IBM. Watson, do you know who is paying for the collaboration?
——
* Bell Labs was one of the companies behind my ASIS Eagleton Award in the 1980s.
Stephen E Arnold, April 7, 2016
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