AI is about augmenting, not replacing human ability and intelligence. Dr Joanna Batstone, IBM\nThere is no shortage of data in organisations today, but they are in different systems, says Mike Smith, country manager of IBM New Zealand.\nThus, he says, there is enormous potential within the four walls of the business.\nWhen you lay down real data over static data, things become interesting and options broaden for the business, he adds.\nWhen you bolt real-time analytics on top of predictive data and you have got a big ecosystem of data, what do you do with all that data? \nYou wrap AI and cognitive data around that and you have a modern, data-driven enterprise, Smith told the audience, in the opening address at the inaugural Watson Summit in New Zealand.\nThe conference showcases how new and emerging technologies such as cognitive, AI and IoT, are transforming businesses everywhere.\nWatson, the IBM supercomputer that uses machine learning and natural language recognition, can already see, listen, read and feel, says Smith.\nThe computer can feel, because it can analyse data on images and videos. It can listen to audio and natural language conversations in real time, and can recognise more than 12 written languages. It can absorb manuals, papers and handwritten notes, says Smith.\nDr. Joanna Batstone, CTO and vice president, research, IBM Australia and New Zealand, told the summit audience continuing advances in digital have profoundly altered how people and businesses interact. \n\u201cIf you are digital today, cognitive computing is the future that will enable you to differentiate."\nShe says cognitive systems are not just for large enterprises. There is the opportunity to transform the creative arts, science and technology sectors.\nClinicians, for instance, are using Watson to be able to do targeted melanoma cancer treatments. The finance sector is using machine learning to look at new ways of credit and risk modelling, while chatbot is offering customer support for various industries.\nIn New Zealand, Simon Gault worked with 'chef' Watson to design new dishes and drinks. \nIn Melbourne, designer Jason Grech worked with IBM to analyse several years\u2019 worth of fashion design data, to produce the Cognitive Couture collection. \nWatson has also designed the trailer for horror sci fi movie Morgan. It picked out critical snips of video from the movie and assembled the trailer.\nShe says IBM\u2019s principles for AI is about augmenting, not replacing human ability and intelligence. \nAs well, there should be transparent, responsible application of data to establish trust and confidence with AI. There is also the principle of supporting workforce evolution and skills development, says Batstone.\nFor instance, in healthcare, a clinician wants to know how the cognitive system has reached a conclusion, and to understand the methodology of how the AI algorithm has come to the conclusion.\n"We will need to invest in new skills and practices to enable us to build opportunities that AI offers," Batstone states.\nTanmay Bakshi, 13, is the youngest working \u2018algorithmist\u2019 in the world and is an honourary IBM cloud advisor\nAge of algorithms\nTanmay Bakshi, aged 13, shows how he is using cognitive technologies, such as AI and neural networks, to model the human brain and nervous system. They can improve lives in many different areas, especially in healthcare.\nBakshi, the youngest working \u2018algorithmist\u2019 in the world, is an honourary IBM cloud advisor. He discusses his work with IBM on an open source initiative, which applies cognitive technologies to help individuals who are unable to communicate or express their emotion. \nHe also teaches computing programming, machine learning and math science neural networks through his YouTube channel, which has more than 22,000 subscribers.\nJeremy Hubbard, head of digital and technology at UBank, says the bank held a hackathon in mid-2016, on how they could apply AI to solve existing challenges at the bank.\nHe told the summit audience they came up with 20 applications, which were whittled down to three. \nNo caption\nOne of these was a chatbot for home loans and these days, robochat is just another agent sitting within the home loans team. \nCustomers know they are interacting with a chatbot and can talk to a real person if they prefer. Or if the chatbot can't get the question right after two questions, the customer is transferred to a live agent.\n\u201cTesting it with real customers is key,\u201d says Hubbard.\nDr Jeff Carmichael, CEO of Promontory Financial Group, told the summit about how his company is using Watson\u2019s cognitive capabilities to address massive operational effort, along with the manual cost of escalating regulation and risk management requirements.\nCompliance costs are driving the need for a solution, he says. As well, there is a massive deficiency of people who have skills to do good compliance work, he states.\nThis is not about doing away with the compliance team, he says. If you can identify the critical areas, that is where the compliance resources can focus on. \nThe company also has a library of regulations around the world and the goal is to build a cognitive approach, to bring all these together as a global information resource. \n"Cognitive solutions can also be used for transaction monitoring and reporting potential issues. If we cut down false positives, we can get a much sharper set of hits to be analysed by experts," say Carmichael.\nDr Terry Sweeney, Watson health executive, IBM Asia Pacific, China and Japan, discussed the ways Watson is transforming healthcare. \nNo caption\nWatson is helping clinicians detect cancers such as melanoma, earlier and more accurately, by seeing health data that was previously hidden.\nIBM is working with Kiwi company MoleMap, to use AI in transforming the treatment of skin cancer.\nAdrian Bowling, CEO of MoleMap, told the summit AI is helping filter out people who are not likely to have melanoma, so the doctors can concentrate on the people with likelihood of the cancer.\nMoleMap CEO Adrian Bowling and IBM CTO Dr Joanna Batstone\nHe says MoleMap will augment the expertise of the dermatologist and allow them to focus on more critical skin lesions.\nOver the past two years, the company has fed Watson with more and more data. The latest iteration recognises potential melanoma with 96 per cent accuracy.\nThe company hopes to take the system to GPs, so they can take advantage of the skills embedded into Watson.. \n\u201cWe will see more people. We will find more melanoma, we will save more lives. This is what our business is all about,\u201d says Bowling.\nNo caption\nBuild iteratively, prove and growIan Jackman, Bendigo and Adelaide Bank\nStrengthening the voice of the customer\nBendigo and Adelaide Bank\u2019s vision is to be Australia\u2019s most customer-connected bank. To achieve this requires an ability to effectively listen to and understand what customers are telling you and what they need.\nIan Jackman, head of customer voice at Bendigo and Adelaide Bank, says the bank is evolving its capabilities to build seamless and integrated omni-channel customer experiences and measuring their outcomes.\nAs an example, they have shifted their campaigns from being mass-preplanned and manually managed, trigger based, \u2018always on\u2019, relevant customer engagement.\nHe says by leveraging customer data and insight, they are able to present the most relevant sales or service message.\nNo caption\nKey pointers for organisations are to remain \u201ccustomer led and insight driven.\u201d\nA single view of the customer relationships and interactions is critical, he states. \u201cBuild iteratively, prove and grow.\u201d\n\u201cIt is about continually listening, adapting, understanding the customers as we go,\u201d he says. \u201cWe recognise we have a long way to go. What we have [are] core foundational assets and capabilities in place.\u201d\nNo caption\nThere's no part of the sports experience that won't be radically impacted by advances in technology.Peter Gray, Tour de France\nData as game changer\nThis year, machine learning technologies were used to give cycling fans across the globe an unprecedented experience of the event, says Peter Gray, technical director at the 2017 Tour de France.\nFor decades, race organisers, rights owners and TV networks have had an unchallenged hold on broadcasting. The rise of digital is changing this dramatically, says Gray, who is senior director - technology, sports practice, Dimension Data.\nDimension Data is the technology partner of the Amaury Sport Organisation, which organises 70 sports events per years including the Tour de France.\nHe says the technology team was able to track the growth of audience through the digital channels.\nFor instance, there were 1.4 million downloads of the official ap in 2016, compared to 1.1 million in 2014. There were 55 million videos views on five digital platforms compared to six million views in 2014. \nDimension Data developed a data analytics platform which incorporated machine learning and complex algorithms that combined live and historical race data to provide even deeper levels of insight as the race unfolds.\nNo caption\nThe first step was to apply Internet of Thing technologies, putting devices and sensors on the bikes.\nWe used data to track the impact of weather conditions on the race, he adds.\n\u201cThat has changed how broadcasters talk about the sport - they talk about the race in a different way because there is a whole raft of data available to them,\u201d he says.\n\u201cWe went from publishing data to telling stories,\u201d he says.\nNo caption\nIn the digital era, you are competing with everyoneCaroline Taylor, IBM\nEveryone is a competitor\nCaroline Taylor, CMO, IBM Global Markets, says in the digital era, you are competing with everyone.\n\u201cThe last, best experience anyone has, becomes the minimum expectation for the experiences they want everywhere,\u201d she says.\n\u201cOnce we have experienced it, you know it can be done.\u201d\nThis expectation is a new challenge, but creates new opportunities for businesses to transform themselves and deliver amazing impact to customers she says.\n\u201cIt is all about cognitive [computing],\u201d she says. \u201cIf we fail to get insights, we kill that potential advantage.\n\u201cWe need to embrace the data that helps us understand and serve our customers better,\u201d she says. \n\u201cWe can go from technology being an enabler, to technology being an adviser,\u201d she says.\n\u201cHow do you get started? Start small, with one business process that needs to be improved,\u201d she says.\nPut chatbots in the call centre, she cites. Start one piece at a time and build your knowledge and capability.\n\u201cCognitive [computing] is going to make a difference,\u201d Taylor states. \u201cThe trick is to get that before your competitors do.\u201d\nRelated reading:\nCIOs should help the organisation achieve the right balance of AI and human skills\nWithin 5 years, organisations will be valued on their information assets: Gartner\nCIO guidebook: Will investing in machine learning help your organisation become smarter?\n\nState of the CIO 2017: \u2018Be prepared for anything\u2019\nNo caption\nSend news tips and comments to email@example.com\nFollow Divina Paredes on Twitter:@divinap\nFollow CIO New Zealand on Twitter:@cio_nz\nJoin us on Facebook.