PART 1
The AI foundation
CHAPTER 1
Changing landscape
Customer behaviours and expectation
CHRIS Hey, Aimé. Welcome to the real world.
AIMÉ Hello, Chris. How are you today?
CHRIS I’m great, thanks. These are exciting times. However, it’s a bit ironic that this appears to be a book about artificial intelligence when, in fact, it’s not about this new emerging technology, but rather emerging cultural practices.
Service to humanity
AIMÉ That’s right – the more things change, the more they stay the same. Ultimately, AI is about being of service to humanity. So, what we mean by that is, how can AI technology provide services, products and experiences that enrich people’s lives? The goal with AI is not simply to build smarter machines, but rather to build smarter organizations, smarter societies and ultimately a smarter world.
But, you know, it’s hard or even impossible to predict where AI and similar technologies such as internet of things (IoT), mobility and robotics will wind up in a decade or two. Just look back 20 years, and you can see that no one could have predicted the ubiquity of mobile devices and smartphones. Not even the science fiction stories from the last century envisioned this explosion of the internet into our lives.
Technology has changed our daily lives
CHRIS To that point, if we examine how our daily habits have changed because of technology, just look at how dramatically mobile phones have impacted everyone over the past few years. I remember flip phones that could only make calls, and now, in seemingly a blink of an eye, you have a powerful computer, a high-definition screen and an internet connection in the palm of your hand.
The rise of mobile
Ericsson and Tune Forecasts
AIMÉ Yeah, it’s unquestionable that mobile electronic devices are playing an increasingly pervasive role in our daily activities. In 2018, American adults are expected to spend almost three and a half hours a day on non-voice mobile media, and 57 per cent of mobile users immediately check their smartphone as soon as they wake up.2
CHRIS It seems that people are always looking at their phones, and the statistics reinforce those observations. Just look at how people use mobile phones in their daily lives. Information services and social connections are pervasive, and it’s common for individuals to wrap their vacations around using their smartphones to document every moment of their experience, posting a stream of photos and videos to their Instagram, Pinterest and Facebook accounts.
And, even more interesting, is how mobile is transforming the workplace. Looking back to the supermarket example, take Trader Joe’s. They use mobile devices called line busters to speed up checkout at their more crowded stores. Additionally, the Apple store was one of the first to allow customers to pay directly from their iPhone, so they rarely see a checkout, or stand in line.3
AIMÉ People are online everywhere and all the time. Smart watches, smartphones and even wearable devices are connecting individuals to the internet 24 hours a day. There’s even research into smart threads, which, when woven into clothing, produce the ability to change colours and patterns on demand.4
Because of this popularity, mobile sales continue to rise; 264 million Americans use their mobile phones 12 billion times a day. According to Deloitte, ‘This year, smartphone penetration reached 82 per cent overall with ages 18–24 having the highest penetration at a staggering 93 per cent.’5
Mobile technology is dramatically improving the ability of business to increase their bottom line while enhancing service and reliability for both employees and customers. For instance, so-called smart factories depend on wireless technology to create a connected floor, effectively enabling them to be synchronized and optimized to fit changing conditions. According to Deloitte Insights, ‘The ability to adjust to and learn from data in real time can make the smart factory more responsive, proactive, and predictive, and enables the organization to avoid operational downtime and other productivity challenges.’6
Democratization of information and accessibility
CHRIS Another perspective on the impact that technology has had on society is from a generational perspective. Consider that 18-year-olds (born in the year 2000 or later) were born into a world with mobile devices, social media, YouTube stars, tablets and, now, wearable devices. This is their reality and basic to their view of the world.
These digital natives see things differently because it’s so effortless for them to communicate with anyone or anything at any time. It’s normal for them to purchase a pizza online and have it delivered in just an hour, or even buy a car from their mobile or tablet. Their expectations have had a halo effect across not only generations but also across businesses.7
Breakdown of technology usage by age
PEW Research Center. Surveys conducted 2000–2018. Data for each year based on a pooled analysis of all surveys conducted during that year
AIMÉ Ultimately, this fulfils the initial promise of the internet, which was the democratization of information and accessibility to everyone. Just look at how Africa leapfrogged laptop and desktop technologies and is now becoming known as the mobile and connected continent. In fact, drones are being used in concert with advanced mobile technology to efficiently transport products across areas without developed transportation and communications infrastructure.
A company called Zipline delivers much needed, urgent medication by drone to rural areas in Africa and South America. Business Insider reported, ‘In Africa, use of drones is receiving more acceptance and [they] are increasingly being deployed for many activities. Countries like Cameroon, Morocco, Malawi, South Africa, Rwanda and Kenya allow the use of drones in tourism, health services and ecommerce industries.’8
The ubiquitous nature of the internet combined with mobile has given rise to the empowered customer. However, people are not just customers – they are humans. Businesses and brands must be of service to their audiences or they will find themselves obsolete and losing market share. Just look at the revolution caused by Uber and Airbnb to see how quickly companies that focus on fulfilling an unmet need and serve their customers will overtake more traditional businesses that focus on products and not experiences.9
Constant connections
CHRIS In the end, that translates to businesses being connected with their audiences wherever and whenever they are. This applies to a physical or digital setting across devices.
To take it a step further, media habits have drastically changed. It goes without saying that it’s no longer solely about television commercials; the days of television shows designed around advertising that were created by a small number of rival networks are long gone. In the 21st century, it’s about having personal, contextual and relevant conversations with actual human beings. In the very near future, virtual and augmented reality will ...