Category Archives: Artificial Intelligence

Three Types of Actionable Business Analytics Not Called Predictive or Prescriptive

Decades (at least) of business analytics writings have focused on the power, perspicacity, value, and validity in deploying predictive and prescriptive analytics for business forecasting and optimization, respectively. These are primarily forward-looking actionable (proactive) applications. 

There are other dimensions of analytics that tend to focus on hindsight for business reporting and causal analysis – these are descriptive and diagnostic analytics, respectively, which are primarily reactive applications, mostly explanatory and investigatory, not necessarily actionable.

In the world of data there are other types of nuanced applications of business analytics that are also actionable – perhaps these are not too different from predictive and prescriptive, but their significance, value, and implementation can be explained and justified differently. Before we dive into these additional types of analytics applications, let us first consider a little pedagogical exercise with two simple evidence-based inferences.

(a) In essentially 100% of cases where an automobile is involved in an accident, the automobile had four wheels on the car prior to the accident.

(b) In 100% of divorce cases, the divorcing couple was married prior to the divorce.

What is the point of those obvious statistical inferences? The point is that the 100% association between the event and the preceding condition has no special predictive or prescriptive power. Hence, prior knowledge of these 100% associations does not offer any actionable value. In statistical terms, the joint probability of event Y and condition X co-occurring, designated P(X,Y), is essentially the probability P(Y) of event Y occurring. The probability of the condition X occurring, P(X), is irrelevant since the existence of the precondition X is implicitly present by default.

Okay, those examples represent two remarkably uninteresting cases. Even when similar sorts of inferences occur in a business context, they have essentially zero value. How do predictive and prescriptive analytics fit into this statistical framework?

Using the same statistical terminology, the conditional probability P(Y|X) (the probability of Y occurring, given the presence of precondition X) is an expression of predictive analytics. By exploring and analyzing the business data, analysts and data scientists can search for and uncover such predictive relationships. This is predictive power discovery. Another way of saying this is: given observed data X, we can predict some outcome Y. Or more simply: given X, find Y.

Similarly (actually, conversely), we can use the conditional probability P(X|Y) (which is the probability that the precondition X exists, given the existence of outcome Y) as an expression of prescriptive analytics. How does that work in practice? By exploring and analyzing business data, analysts and data scientists can search for and uncover the conditions (causal factors) that have led to different outcomes. So, if the business wants to optimize some outcome Y, then data analysts will be tasked with finding the conditions X that must be implemented to achieve that desired outcome. This is prescriptive power discovery. Another way of saying this is: given some desired optimal outcome Y, what conditions X should we put in place. Or more simply: given Y, find X. Note how this simple mathematical expression of prescriptive analytics is exactly the opposite of our previous expression of predictive analytics (given X, find Y).

Here are a few business examples of this type of prescriptive analytics: Which marketing campaign is most efficient and effective (has best ROI) in optimizing sales? Which environmental factors during manufacturing, packaging, or shipping lead to reduced product returns? Which pricing strategies lead to the best business revenue? What equipment maintenance schedule minimizes failures, downtime (mean time to recovery), and overall maintenance costs?

Now that we have described predictive and prescriptive analytics in detail, what is there left? What are the three types of actionable (and valuable) business analytics applications that are not called predictive or prescriptive? They are sentinel, precursor, and cognitive analytics. Let’s define what these are.

  1. Sentinel Analytics – in common usage, the sentinel is the person on the guard station who is charged with watching for significant incoming or emergent activity. In practice, all activity is being observed and a decision is made as to whether any particular activity requires some sort of triage: sounding an alarm, or sending an alert to decision-makers, or doing nothing.
    • In the enterprise, sentinel analytics is most timely and beneficial when applied to real-time, dynamic data streams and time-critical decisions. For example, sensors (including internet of things devices and APIs on data networks) can be deployed with logic (analytics, statistical, and/or machine learning algorithms) to monitor and “watch” business systems and processes for emerging patterns, trends, behaviors, unusual operating modes, and anomalies that might be indicators of activities that require business attention, decisions, and/or action. 
  2. Precursor Analytics – in common usage, precursors are the early-warning indicators (harbingers, forerunners) of something else more serious or catastrophic that is about to come. We occasionally hear about earthquake precursors (increased levels of radon in groundwater), tidal wave precursors (a deep ocean earthquake), and cyber-attack precursors (phishing incidents). Precursor analytics is related to sentinel analytics. The latter (sentinel) is associated primarily with “watching” the data for interesting patterns that might require action, while precursor analytics is associated primarily with training the business systems to quickly identify those specific “learned” patterns and events that are known to be associated with high-risk events, thus requiring timely attention, intervention, and remediation. 
    • In these applications, the data science involvement includes both the “learning” of the most significant patterns to alert on and the improvement of their models (logic) to minimize false positives and false negatives. The analytics triage is critical, to avoid alarm fatigue (sending too many unimportant alerts) and to avoid underreporting of important actionable events. One could say that sentinel analytics is more like unsupervised machine learning, while precursor analytics is more like supervised machine learning. That is not a totally clean separation and distinction, but it might help to clarify their different applications of data science. 
    • The counterexample to the supervised learning explanation of precursor analytics is a “black swan” event – a rare high-impact event that is difficult to predict under normal circumstances – such as the global pandemic, which led to the failure of many predictive models in business. Broken models are definitely disruptive to analytics applications and business operations. Paradoxically, the precursor was actually predictive in a disruptive anti-predictive sort of way, which brings us right back to P(Y|X), or maybe it should be stated as P(“not Y”|X) where X is the black swan event (i.e., the predicted outcome Y from existing models will not occur in this case). As such, the global pandemic serves as a warning (a harbinger of disruption) and consequently as a “training example” to businesses for any future black swans. 
  3. Cognitive Analytics – this analytics mindset approach focuses on “surprise” discovery in data, using machine learning and AI to emulate and automate the cognitive abilities of humans. The goal is to discover novel, interesting, unexpected, and potentially valuable signals in the flood of streaming enterprise data. These may not be high-risk discoveries, but they could be high-reward discoveries. How does that resemble human cognitive abilities? Curiosity! Being curious about seeing something “funny” that you didn’t expect, thereby putting a “marker” in the data stream: “Look here! Pay attention! Ask questions about this!” 
    • Cognitive analytics is basically the opposite of descriptive analytics. In descriptive analytics, the task is to find answers to predetermined business questions (how much, how many, how often, who, where, when), whereas cognitive analytics is tasked with finding the business questions that should be asked. Descriptive: find the right answers in the data. Cognitive: find the right questions in the data. Cognitive analytics can then be viewed as a precursor to diagnostic analytics, which is the investigative stage of analytics that answers the questions raised by cognitive analytics (“Why did this happen?”, “Why are we seeing this pattern in our data?”, “What is the business impact of this trend, anomaly, behavior?”, “What is our next-best action as a result of this?”, “That’s funny! What is that?”).

None of these descriptions of the 3 “new” analytics applications are meant to declare that these are completely distinct and different from the “big 4” analytics applications that we have known for many years (Descriptive, Diagnostic, Predictive, Prescriptive). But the differences between the “big 4” and the “new 3” are in the nuanced business applications of these analytics in the enterprise and in the types of inferences that the data scientists are asked to derive from the business data. 

Deploying these analytics in the cloud further expands their accessibility, democratization, enterprise-wide acceptance, broad advocacy, and ultimate business value. Blending automated analytics products (coming from the sentinel, precursor, and cognitive applications) with human-in-the-loop inquisitiveness, curiosity, creativity, out-of-the-box thinking, idea generation, and persistence can transform any organization into a data analytics powerhouse through an analytic culture revolution. This is more imperative than ever, as a global survey of analytics executives has revealed:

  • “Companies have been working to become more data-driven for many years, with mixed results.”
  • “Right now, the biggest challenge for organizations working on their data strategy might not have to do with technology at all.”
  • “Corporate chief data, information, and analytics executives reported that cultural change is the most critical business imperative.”
  • “Just 26.5% of organizations report having established a data-driven organization.”
  • “91.9% of executives cite cultural obstacles as the greatest barrier to becoming data driven.”
  • Reference: https://hbr.org/2022/02/why-becoming-a-data-driven-organization-is-so-hard

Where do organizations get help to overcome these challenges? Microsoft delivers what its clients need to help them grow their top line with cloud-based analytics. Microsoft’s cloud-based analytics products and services propel business insights, innovation, and value from enterprise data, with all of the dimensions of analytics applications brought into the game. Specifically, cloud analytics (accessing and inferencing on multiple diverse business datasets across business units) for a wide variety of enterprise applications can sharpen the workforce’s focus on value and growth, including: forward-looking insights through predictive, sentinel, and precursor analytics; novel recommendations; rich customer engagement; analytic product innovation; resilience through prescriptive analytics; surprise discovery in data, asking the right questions, and exploring the most insightful lines of inquiry through cognitive analytics; and more.

Microsoft Azure Cloud extends ease-of-access analytics to all, delivers increased speed to deployment, provides leading security, compliance, and governance – with price performance for any organization. Whether organizations are seeking scalability in their enterprise data systems, advanced analytics capabilities (including the “big 4” and the “new 3”), real-time analytics (essential value-drivers from streaming data, including IoT, network logs, online customer interactions, supply chain, etc.), and the best in machine learning model-building and deployment services, Microsoft Azure Cloud has you covered. To learn more about it, go to https://azure.microsoft.com/en-us/solutions/cloud-scale-analytics and bring actionable business analytics to higher levels of proficiency and productivity across your organization.

My top learning moments at Splunk .conf23

I recently attended the Splunk .conf23 conference in Las Vegas. Well, the conference was in Vegas, while I was far away in my home office watching the live conference keynote sessions online. Despite the thousands of miles (and kilometers) of separation, I could feel the excitement in the room as numerous announcements were made, individuals were honored, customer success stories were presented, and new solutions and product features were revealed. I will summarize many of those here (specifically my major learning moments), though this report cannot provide a complete review of all that was said at .conf23, primarily because I attended only the two main keynote sessions, but also because the phenomenal number of remarkable things to hear and learn in those sessions exceeded my capacity to record them all in one succinct report.

When I reviewed highlights from last year’s Splunk .conf22 conference in my summary report at that time, I focused a lot on the Splunk Observability Cloud and its incredible suite of Observability and Monitoring products and services. This reflected my strong interest in observability at that time. My strong interest hasn’t diminished, and neither has Splunk’s developments and product releases in that space, as seen in observability’s prominent mention within many of Splunk’s announcements at this year’s .conf23 event. For a detailed report on the current state of observability this year, you can access and download “The State of Observability 2023” report from Splunk. Here are four specific metrics from the report, highlighting the potentially huge enterprise system benefits coming from implementing Splunk’s observability and monitoring products and services:

  1. Four times as many leaders who implement observability strategies resolve unplanned downtime in just minutes, not hours or days.
  2. Leaders report one-third the number of outages per year, on average, compared to those organizations who do not implement observability and monitoring.
  3. Leaders are 7.9x as likely to say that their ROI on observability tools far exceeded expectations.
  4. 89% of leaders are completely confident in their ability to meet their application availability and performance requirements, versus just 43% of others.

Here are my top learnings from .conf23: 

  • Splunk announced a new strategic partnership with Microsoft Azure, thereby adding another major cloud provider to their other cloud provider partnerships, bringing Splunk products and services into more enterprises through the Azure Marketplace. This partnership also specifically extends hybrid cloud capabilities that will enhance organizations’ digital resilience, while enabling transformation, modernization, migration, and growth in all enterprise digital systems with confidence, trust, and security. 
  • Digital resilience was a major common theme across all of the Splunk announcements this week. As I heard someone say in the keynote session, “You had me at resilience!” By providing real-time data insights into all aspects of business and IT operations, Splunk’s comprehensive visibility and observability offerings enhance digital resilience across the full enterprise. Organizations are able to monitor integrity, quality drift, performance trends, real-time demand, SLA (service level agreement) compliance metrics, and anomalous behaviors (in devices, applications, and networks) to provide timely alerting, early warnings, and other confidence measures. From these data streams, real-time actionable insights can feed decision-making and risk mitigations at the moment of need. Such prescriptive capabilities can be more proactive, automated, and optimized, making digital resilience an objective fact for businesses, not just a business objective. I call that “digital resilience for the win!”
  • Several Splunk customer success stories were presented, with interesting details of their enterprise systems, the “back stories” that led them to Splunk, the transformations that have occurred since Splunk integration, and the metrics to back up the success stories. Customers presenting at .conf23 included FedEx, Carnival Corporation & plc, Inter IKEA, and VMware. Here are a few of the customer performance metrics presented (measuring performance changes following the Splunk integration into the customers’ enterprise systems): 3X Faster Response Time, 90% Faster Mean Time to Remediation, and 60X Faster Insights.
  • Splunk has brought greater integration and customer ease-of-use of their offerings through a Unified Security and Observability Platform. This unified operations center (Splunk Mission Control) amplifies the efficiency (time to problem resolution) and effectiveness (number of time-critical problems resolved) of ITOps and DevOps teams, requiring fewer manual steps in correlating data streams from multiple systems in order to determine the root cause of an incident. Further enhancing the user experience, the unified platform provides end-to-end enterprise systems visibility and federated search across those systems.
  • Splunk Mission Control (just mentioned above) Splunk describes it best: “Splunk Mission Control brings together Splunk’s industry-leading security technologies that help customers take control of their detection, investigation and response processes. Splunk’s security offerings include security analytics (Splunk Enterprise Security), automation and orchestration (Splunk SOAR), and threat intelligence capabilities. In addition, Splunk Mission Control offers simplified security workflows with processes codified into response templates. With Splunk Mission Control, security teams can focus on mission-critical objectives, and adopt more proactive, nimble security operations.”
  • Model-Assisted Threat Hunts, also known as Splunk M-ATH, is Splunk’s brand name for machine learning-assisted threat hunting and mitigation. M-ATH is part of the PEAK (Prepare, Execute, and Act with Knowledge) Framework, that consists of three types of hunts: (1) Hypothesis-driven (i.e., testing for hypothesized threats, behaviors, and activities), (2) Baseline (i.e., search for deviations from normal behaviors through EDA: Exploratory Data Analysis), and (3) M-ATH (i.e., automation of the first two type of hunts, using AI and machine learning). M-ATH includes ML-assisted adaptive thresholding and outlier handling, for improved alerts (i.e., faster alerting with fewer false positives and false negatives).
  • “Don’t be a SOAR loser!” Okay, that’s what one of the Splunk speakers said at .conf23. By that, he was referring to being a winner with Splunk SOAR: Security Orchestration, Automation and Response. SOAR orchestrates, prioritizes, and automates security teams (SecOps) workflows and tasks, enabling more accurate, more complete, smarter, and faster response to security incidents. As Splunk says, “Automate so you can innovate.” Isn’t that always a business truth? If you can free your analyst teams to think outside the box, hypothesize, innovate, and test new methods and solutions, then that is the sure path to being a SAFE (Security Analytics For the Enterprise) winner: soar with SOAR! While SIEM (Security Information and Event Management) aims to manage the data flows, logging, audits, alerted events, and incident responses, SOAR automates these security activities (using machine learning and AI), monitors the data and events for anomalous behaviors, classifies (prioritizes) the events, and then orchestrates optimized security operations and incident responses (using playbooks).
  • Saving my best two .conf23 learning moments for last, first up is Splunk Edge Hub. This is a physical device, in the IoT (Internet of Things) family of sensors, that collects and streams data from the edge (i.e., from edge devices, cameras, streaming data sources, monitoring systems, and sensors of all types) into Splunk systems that go to work on those data: security operations, anomaly detection, event classification, trend detection, drift detection, behavior detection, and any other edge application that requires monitoring and observability, with an injection of machine learning and AI for intelligent data understanding, classification, prioritization, optimization, and automation. Since business thrives at the edge (through insights discovery and actionable analytics at the point—time and place—of data collection), an edge hub is just what a business needs to mitigate risk, ensure visibility, escalate incidents for review, optimize the operational response, and monitor the associated activities (causes and effects). 
  • Splunk AI Assistant  Boom! This is the brilliant and innovative introduction of an AI assistant into Splunk products, services, and user workflows. This includes the latest and best of AI — generative AI and natural language interfaces integrated within the Splunk platform. This product release most definitely enables and “catalyzes digital resilience in cybersecurity and observability.” This is not just a product release. It is a “way of life” and “a way of doing business” with Splunk products and services. AI is not just a tacked-on feature, but it is a fundamental characteristic and property of those products’ features. Splunk AI increases productivity, efficiency, effectiveness, accuracy, completeness, reliability, and (yes!) resilience across all enterprise SecOps, ITOps, and AIOps functions, tasks, and workflows that are powered by Splunk. Generative AI enables the Splunk SecOps and ITOps tasks, workflows, processes, insights, alerts, and recommended actions to be domain-specific and customer-specific. It automatically detects anomalies and focuses attention where it’s needed most, for that business in that domain, while providing full control and transparency on which data and how data are used to train the AI, and how much control is assigned to the AI (by maintaining “human in the loop” functionality). With regard to the natural language features, Splunk AI Assistant leverages generative AI to provide an interactive chat experience and helps users create SPL (Splunk Processing Language) queries using natural language. This feature not only improves time-to-value, but it “helps make SPL more accessible, further democratizing an organization’s access to, and insights from, its data” – and that includes automated recommendations to the user for “next best action”, which is a great learning prompt for new Splunk users and SecOps beginners.


For a peek into my peak real-time experiences at .conf23, see my #splunkconf23 social thread on Twitter at https://bit.ly/3DjI5NU. Actually, go there and explore, because there is so much more to see there than I could cover in this one report.

Closing thoughts – AI (particularly generative AI) has been the hottest tech topic of the year, and Splunk .conf23 did not disappoint in their coverage of this topic. The agendas for some events are filled with generic descriptions that sing the praises of generative AI. This Splunk event .conf23 provided something far more beneficial and practical: they presented demonstrably valuable business applications of generative AI embedded in Splunk products, which deliver a convincing Splunk-specific productivity enhancer for new and existing users of Splunk products. When the tech hype train is moving as fast as it has been this year, it is hard for a business to quickly innovate, incorporate, and deliver substantially new features that use the new tech within their legacy products and services, but Splunk has done so, with top marks for those achievements.

Disclaimer: I was compensated as an independent freelance media influencer for my participation at the conference and for this article. The opinions expressed here are entirely my own and do not represent those of Splunk or of any Splunk partners. Any misrepresentations of the products and services mentioned in my statements are entirely my own responsibility. Nothing here should be construed as an offer to sell or as financial advice of any kind. My comments are entirely of a technical nature, focused on the technical capabilities of the items mentioned in the article.

Low-Latency Data Delivery and Analytics Product Delivery for Business Innovation and Enterprise AI Readiness

This article has been divided into 2 parts now:

Read other articles in this series on the importance of low-latency enterprise data infrastructure for business analytics:

Other related articles on the importance of data infrastructure for enterprise AI initiatives:

Top 9 Considerations for Enterprise AI

Artificial intelligence (AI) is top of mind for executives, business leaders, investors, and most workplace employees everywhere. The impacts are expected to be large, deep, and wide across the enterprise, to have both short-term and long-term effects, to have significant potential to be a force both for good and for bad, and to be a continuing concern for all conscientious workers. In confronting these winds of change, enterprise leaders are faced with many new questions, decisions, and requirements – including the big question: are these winds of change helping us to move our organization forward (tailwinds) or are they sources of friction in our organization (headwinds)?

The current AI atmosphere in enterprises reminds us of the internet’s first big entrance into enterprises nearly three decades ago. I’m not referring to the early days of email and Usenet newsgroups, but the tidal wave of Web and e-Commerce applications that burst onto the business scene in the mid-to-late 1990’s. While those technologies brought much value to the enterprise, they also brought an avalanche of IT security concerns into the C-suite, leading to more authoritative roles for the CIO and the CISO. The fraction of enterprise budgets assigned to these IT functions (especially cybersecurity) suddenly and dramatically increased. That had and continues to have a very big and long-lasting impact.

The Web/e-Commerce tidal wave also brought a lot of hype and FOMO, which ultimately led to the Internet bubble burst (the dot-com crash) in the early 2000’s. AI, particularly the new wave of generative AI applications, has the potential to repeat this story, potentially unleashing a wave of similar patterns in the enterprise. Are we heading for another round of hype / high hopes / exhilaration / FOMO / crash and burn with AI? I hope not.

I would like to believe that a sound, rational, well justified, and strategic introduction of the new AI technologies (including ChatGPT and other generative AI applications) into enterprises can offer a better balance on the fast slopes of technological change (i.e., protecting enterprise leaders from getting out too far over their skis). In our earlier article, we discussed “AI Readiness is Not an Option.” In this article here, we offer some considerations for enterprise AI to add to those strategic conversations. Specifically, we look at considerations from the perspective of the fuel for enterprise AI applications: the algorithms, the data, and the enterprise AI infrastructure. Here is my list:

[continue reading the full article here]

AI Readiness is Not an Option

This year, artificial intelligence (AI) has become a major conversation centerpiece at home, in the park, at the gym, at work, everywhere. This is not entirely due to or related to ChatGPT and LLMs (large language models), though those have been the main drivers. The AI conversations, especially in technical circles, have focused intensively on generative AI, the creation of written content, images, videos, marketing copy, software code, speeches, and countless other things. For a short introduction to generative AI, see my article “Generative AI – Chapter 1, Page 1”.

While there has been huge public interest in generative AI (specifically, ChatGPT) by individuals, there has been a transformative impact on organizations everywhere, both in strategy conversations and tactical deployments. Businesses and others are seeking to leverage generative AI to increase productivity (efficiencies and effectiveness) in nearly all aspects of their enterprise.

To support essential enterprise AI strategy conversations, here are 12 key points for organizations to consider within the context of “AI readiness is not an option, but an imperative”:

[continue reading the full article here]

Built for AI – https://purefla.sh/41oS2Dp

Generative AI – Chapter 1, Page 1

Anyone who has been watching the AI space this year, even peripherally, will have noticed the flaming hot story of the year—ChatGPT and related chatbot applications. These AI applications are essentially deep machine learning models that are trained on hundreds of gigabytes of text and that can provide detailed, grammatically correct, and “mostly accurate” text responses to user inputs (questions, requests, or queries, which are called prompts). Specifically, these are LLMs—large language models. It is imperative, not an option, for organizations (and for most individuals) to be aware of what is going on here—not only because it is all over the news, but because it could affect your future self.

When I said “mostly accurate,” I meant that sometimes the ChatGPT responses go way off target—people refer to these as “hallucinations,” which is basically a reflection of the statistical basis of the models (see below)—the application will generate some plausible-sounding, grammatically correct statements that are complete falsehoods, such as “Leonardo da Vinci painted the Mona Lisa in 1815” (which is a real example of an observed ChatGPT hallucination).

I tested ChatGPT with my own account, and I was impressed with the results. I prompted it with various requests, including: Write a short story on a specific topic, provide a layperson’s explanations of some complex deep machine learning concepts, create a lesson plan to learn a tough subject, create an outline for a blog on a particular topic (no, not this one), and provide some financial advice on particular investments (no, it did not provide specific advice, but it did offer warnings like NFA “Not Financial Advice” and DYOR “Do Your Own Research”). You can find my results on my Medium blog site.

LLMs are so responsive and grammatically correct (even over many paragraphs of text) that some people worry that it is sentient. Guess what? It isn’t. It is merely a very large statistical model that provides the most likely sequence of words in response to a prompt. It is effectively a galaxy-sized statistically rich version of text autocomplete on your smartphone’s text messaging app, which already delivers some highly probable guesses for the missing words in a text message like this one: “Due to a client deadline, I will be working late at the ____ this ____, so I will be home late for ____.” LLMs can respond to much more complex (but well-posed) prompts, such as lesson plans for education, content for a business presentation, code for a software task, workflow steps for an IT project, and much more.

In order to help people to create well-posed prompts, the new discipline of prompt engineering has arisen. It’s not hard to find many online guides to prompt engineering, including guides for very specific industries, business tasks, workplace applications, and context-dependent scenarios. You don’t need prompt engineering to find those guides—a simple web search should do the trick. And guess what? When web search engines were first created, it took a while for us to learn how to submit well-posed keyword searches. That scenario is being played out again with ChatGPT and prompt engineering, but now our queries are aimed at a much more language-based, AI-powered, statistically rich application. If you understand Bayes’ Theorem and Bayesian statistics, then you will understand me when I say that we are talking here about an enormously more enriched set of priors, likelihoods, and evidence to feed the LLMs—so, it should not be surprising that the posteriors are shockingly good for large text outputs (most of the time).

LLMs are a subset of the deep learning field of natural language processing (NLP), which includes natural language understanding (NLU) and natural language generation (NLG). Think of chatbots and you get the idea, just expanded to a much, much larger domain of AI-based conversation.

Computer vision (CV) is another subset of deep learning, specifically aimed at object/pattern detection, recognition, and classification in images (including still images and video sequences). ChatGPT and LLMs are examples of generative AI using NLP for text generation. Stable Diffusion, Midjourney, and Dall-E are examples of generative AI using CV for image generation. Oh, by the way, I asked the generative AI at Stable Diffusion to create some images to go with my short story (which you can find on my Medium blog).

Beyond the individual examples of generative AI (and its components, ChatGPT, Stable Diffusion, etc.) that we can all experiment with, the applications in the enterprise can be tremendously impactful and transformative for organizations and the future of work. Those next chapters in the story are being written right now.

Continue reading about Enterprise AI in these posts:

  1. AI Readiness is Not an Option
  2. Top 9 Considerations for Enterprise AI

Business Strategies for Deploying Disruptive Tech: Generative AI and ChatGPT

Generative AI is the biggest and hottest trend in AI (Artificial Intelligence) at the start of 2023. While generative AI has been around for several years, the arrival of ChatGPT (a conversational AI tool for all business occasions, built and trained from large language models) has been like a brilliant torch brought into a dark room, illuminating many previously unseen opportunities.

Every business wants to get on board with ChatGPT, to implement it, operationalize it, and capitalize on it. It is important to realize that the usual “hype cycle” rules prevail in such cases as this. First, don’t do something just because everyone else is doing it – there needs to be a valid business reason for your organization to be doing it, at the very least because you will need to explain it objectively to your stakeholders (employees, investors, clients). Second, doing something new (especially something “big” and disruptive) must align with your business objectives – otherwise, you may be steering your business into deep uncharted waters that you haven’t the resources and talent to navigate. Third, any commitment to a disruptive technology (including data-intensive and AI implementations) must start with a business strategy.

I suggest that the simplest business strategy starts with answering three basic questions: What? So what? Now what? That is: (1) What is it you want to do and where does it fit within the context of your organization? (2) Why should your organization be doing it and why should your people commit to it? (3) How do we get started, when, who will be involved, and what are the targeted benefits, results, outcomes, and consequences (including risks)? In short, you must be willing and able to answer the six WWWWWH questions (Who? What? When? Where? Why? and How?).

Another strategy perspective on technology-induced business disruption (including generative AI and ChatGPT deployments) is to consider the three F’s that affect (and can potentially derail) such projects. Those F’s are: Fragility, Friction, and FUD (Fear, Uncertainty, Doubt).

Fragility occurs when a built system is easily “broken” when some component is changed. These changes may include requirements drift, data drift, model drift, or concept drift. The first one (requirements drift) is a challenge in any development project (when the desired outcomes are changed, sometimes without notifying the development team), but the latter three are more apropos to data-intensive product development activities (which certainly describes AI projects). A system should be sufficiently agile and modular such that changes can be made with as little impact to the overall system design and operations as possible, thus keeping the project off the pathway to failure. Since ChatGPT is built from large language models that are trained against massive data sets (mostly business documents, internal text repositories, and similar resources) within your organization, consequently attention must be given to the stability, accessibility, and reliability of those resources.

Friction occurs when there is resistance to change or to success somewhere in the project lifecycle or management chain. This can be overcome with small victories (MVP minimum viable products, or MLP minimum lovable products) and with instilling (i.e., encouraging and rewarding) a culture of experimentation across the organization. When people are encouraged to experiment, where small failures are acceptable (i.e., there can be objective assessments of failure, lessons learned, and subsequent improvements), then friction can be minimized, failure can be alleviated, and innovation can flourish. A business-disruptive ChatGPT implementation definitely fits into this category: focus first on the MVP or MLP.

FUD occurs when there is too much hype and “management speak” in the discussions. FUD can open a pathway to failure wherever there is: (a) Fear that the organization’s data-intensive, machine learning, AI, and ChatGPT activities are driven by FOMO (fear of missing out, sparked by concerns that your competitors are outpacing your business); (b) Uncertainty in what the AI / ChatGPT advocates are talking about (a “Data Literacy” or “AI Literacy” challenge); or (c) Doubt that there is real value in the disruptive technology activities (due to a lack of quick-win MVP or MLP examples).

I have developed a few rules to help drive quick wins and facilitate success in data-intensive and AI (e.g., Generative AI and ChatGPT) deployments. These rules are not necessarily “Rocket Science” (despite the name of this blog site), but they are common business sense for most business-disruptive technology implementations in enterprises. Most of these rules focus on the data, since data is ultimately the fuel, the input, the objective evidence, and the source of informative signals that are fed into all data science, analytics, machine learning, and AI models.

Here are my 10 rules (i.e., Business Strategies for Deploying Disruptive Data-Intensive, AI, and ChatGPT Implementations):

  1. Honor business value above all other goals.
  2. Begin with the end in mind: goal-oriented, mission-focused, and outcomes-driven, while being data-informed and technology-enabled.
  3. Think strategically, but act tactically: think big, start small, learn fast.
  4. Know thy data: understand what it is (formats, types, sampling, who, what, when, where, why), encourage the use of data across the enterprise, and enrich your datasets with searchable (semantic and content-based) metadata (labels, annotations, tags). The latter is essential for AI implementations.
  5. Love thy data: data are never perfect, but all the data may produce value, though not immediately. Clean it, annotate it, catalog it, and bring it into the data family (connect the dots and see what happens). For example, outliers are often dismissed as random fluctuations in data, but they may be signaling at least one of these three different types of discovery: (a) data quality problems, associated with errors in the data measurement and capture processes; (b) data processing problems, associated with errors in the data pipeline and transformation processes; or (c) surprise discovery, associated with real previously unseen novel events, behaviors, or entities arising in your data stream.
  6. Do not covet thy data’s correlations: a random six-sigma event is one-in-a-million. So, if you have 1 trillion data points (e.g., a Terabyte of data), then there may be one million such “random events” that will tempt any decision-maker into ascribing too much significance to this natural randomness.
  7. Validation is a virtue, but generalization is vital: a model may work well once, but not on the next batch of data. We must monitor for overfitting (fitting the natural variance in the data), underfitting (bias), data drift, and model drift. Over-specifying and over-engineering a model for a data-intensive implementation will likely not be applicable to previously unseen data or for new circumstances in which the model will be deployed. A lack of generalization is a big source of fragility and dilutes the business value of the effort.
  8. Honor thy data-intensive technology’s “easy buttons” that enable data-to-discovery (D2D), data-to-“informed decision” (D2ID), data-to-“next best action” (D2NBA), and data-to-value (D2V). These “easy buttons” are: Pattern Detection (D2D), Pattern Recognition (D2ID), Pattern Exploration (D2NBA), and Pattern Exploitation (D2V).
  9. Remember to Keep it Simple and Smart (the “KISS” principle). Create a library of composable, reusable building blocks and atomic business logic components for integration within various generative AI implementations: microservices, APIs, cloud-based functions-as-a-service (FaaS), and flexible user interfaces. (Suggestion: take a look at MACH architecture.)
  10. Keep it agile, with short design, develop, test, release, and feedback cycles: keep it lean, and build on incremental changes. Test early and often. Expect continuous improvement. Encourage and reward a Culture of Experimentation that learns from failure, such as “Test, or get fired!

Finally, I offer a very similar (shorter and slightly different) set of Business Strategies for Deploying Disruptive Data-Intensive, AI, and ChatGPT Implementations, from the article “The breakthrough that is ChatGPT: How much does it cost to build?“. Here is the list from that article’s “C-Suite’s Guide to Developing a Successful AI Chatbot”:

  1. Define the business requirements.
  2. Conduct market research.
  3. Choose the right development partner.
  4. Develop a minimum viable product (MVP).
  5. Test and refine the chatbot.
  6. Launch the chatbot.

EX is the New CX

(This article is a continuation of my earlier article “When the Voice of the Customer Actually Talks.”)

I recently attended (virtually) CX Summit 2021, presented by Five9, which focused on “CX Reimagined.” At first this title for the event seemed a bit grandiose to me – Reimagined! After attending the event, I now think the title was perfect, and it could have gone even further. I saw how the “art of the possible” in CX (Customer Experience) and EX (Employee Experience) in the Contact Center is already being realized and is being taken to new realms of possibility through AI and Cloud empowerments.

The evolved (reimagined) Contact Center now comes with more options for digital channels to accommodate the customer, more voice data-powered services that serve both the customer and the contact center representative, and more seamless actions on both ends of the call line, even for complex inquiries. This is all enabled by the 3 A’s: AI, Automation, and voice Analytics. We have heard it before: “happy employee, happy customer!” That now looks like this: “EX is the new CX.” Boom!

In an information-packed talk from Gartner Analyst Drew Kraus on “Getting Past the Hype in Customer Service”, where he reviewed just how much hype there is in the customer service and support technologies market, it became clear to me that Five9 delivers on the needs, not the hype.

Another informative and data-packed presentation was by Five9 SVP Scott Kolman and COMMfusion analyst Blair Pleasant, where they presented and did a deep dive into the Five9 survey “2021 Customer Service Index – Learn how customers have reimagined the customer service experience.” I won’t go too deep here (you should watch the whole session on-demand). Some interesting highlights include:

  1. Five9 surveyed 2048 consumers, with participants from 7 countries, representing ages 19 to early 70’s. They also completed a similar survey in 2020. Side-by-side comparisons of the survey results (by age, by year of survey, and by country) for the different survey questions were quite informative and potentially quite useful for any contact center operation. If that’s what you or your business does, then you should investigate these “Voice of the Customer” results.
  2. Across all demographics, only 25% of respondents felt that their contact center experience got worse (either “much worse” or “slightly worse”) from 2020 to 2021. We might have expected a different result with the pandemic raging. Everyone else (75%) felt that their experience got better, much better, or had no opinion.
  3. Some very surprising results appeared (with significant differences between countries) when people were asked to rate the keys to “Good Service Experience”. Highly rated categories were “Rep gets right answer, even if it takes more time” (33%); “Rep can answer my question quickly’’ (26%); and “Don’t have to wait long to reach rep” (20%).
  4. Similarly, there were some significant differences by country when people were asked to rate the keys to “Bad Service Experience”. Top responses included: “Get passed from one rep to another” (34%); “Have to wait long to reach rep” (26%); and a tie for third place (at 13%) for “Cue/on hold system not helpful” and “Rep cannot answer my question quickly”. (Remember, that despite these seriously bad experiences, only 25% of respondents generally saw a drop in customer service experience in the past year.)
  5. One of the more enlightening survey results appeared when asked, “How likely are you to do business with a company if you have a Poor Service Experience?” The USA responses were significantly different than responses from the other 6 countries in the survey in one category: over 11% of USA respondents were “very likely” to continue doing business, versus 3-6% of non-USA respondents being “very likely”. However, in the “somewhat likely” category, all countries were in the range 10-16%, with the USA respondents close to the midpoint, near 14%. In my opinion (not expressed by the session presenters), a reason for these seemingly incompatible responses is that there are two sentiments being conflated in this one question. On the one hand, you have the bad experience on “this” call. On the other hand, you have perhaps the much worse (time-consuming) future experience of switching providers and dealing with the corresponding onboarding (for whatever service this is about). I might be “somewhat likely” to switch providers after one bad call experience, but I would not be “very likely” to go through the pain of switching providers and all that entails.

There were many interesting and powerful sessions in addition to this one, which I focused on here because it presented lots of survey data, and I love data! Another great session was the presentation by former astronaut (now Professor) Michael Massimino – brilliant and inspiring, with numerous words of wisdom, leadership advice, and life’s lessons learned. Of course, I admit that I was drawn into his NASA space stories, including the Hubble Telescope repair mission that almost went wrong, because I worked with the Hubble Space Telescope project for 10 years and I worked an additional 10 years at NASA’s Goddard Space Flight Center where many of the telescope’s instruments were tested.

My big takeaway from the Five9 CX Summit is how cloud, AI, automation, and voice analytics are rapidly driving change in the positive direction for contact center representatives and for customers who call in. Maybe that’s why the customer experience didn’t change much from 2020 to 2021, because a lot of those technologies have already been deployed in the past couple of years, particularly for Five9’s clients.

Chatbots and conversational AI are just part of the story – there’s so much more. Five9’s new cloud-enabled, AI-powered, voice data-driven solutions and services described at the summit are definitely worth exploring and investigating for your contact center: IVA (Intelligent Virtual Agents), VoiceStream, Agent Assist, Studio7, Practical AI, WFO (Work Flow Optimization), Conversation Architect, and UC (unified communications) integration into the contact center VX (Voice Experience) workflow.

Learn more about CX Reimagined and the roles of AI, Automation, Cloud, Voice Analytics, and Omnichannel Customer Engagement in the modern contact center at CX Summit 2021, presented by Five9. (Even if you missed the live event, the sessions are recorded, so you can watch them on-demand at any time you wish.) See for yourself where the Reimagined becomes the Realized in CX. And learn why EX is the new CX.

Note: This article was sponsored. The opinions expressed here are my own and do not represent the opinions of any other person, company, or entity.

#Five9CXSummit #CXNation

When the Voice of the Customer Actually Talks

For many years, organizations (mostly consumer-facing) have placed the “voice of the customer” (VoC) high on their priority list of top sources for customer intelligence. The goals of such activities are to improve customer service, customer interactions, customer engagement, and customer experience (CX) through just-in-time customer assistance, personalization, and loyalty-building activities. In recent years, even government agencies have increased their attention on Citizen Experience (CX) and Voice of the Citizen (VoC), to inform and guide their citizen services.

CX has become increasingly data-informed and data-driven, with VoC data being one of the key data sources. Other data sources include purchase patterns, online reviews, online shopping behavior analytics, and call center analytics. As good as these data analytics have been, collecting data and then performing pattern-detection and pattern-recognition analytics can be taken so much further now with AI-enabled customer interactions. 

AI is great for pattern recognition, product and service recommendations, anomaly detection, next-best action and next-best decision recommendations, and providing an insights power-boost to all of those. AI can be considered as Accelerated, Actionable, Amplified, Assisted, Augmented, even Awesome Intelligence, both for the customer and for the call center staff.

Consequently, VoC and AI have wonderfully come together in conversational AI applications, including chatbots. Chatbots can be deployed to answer FAQs, to direct calls to the right service representative, to detect customer sentiment, to monitor call center employee performance, to recall and recognize patterns in the customer’s prior history with the business, to confirm customer identity, to identify up-sell and cross-sell opportunities, to streamline data entry by automatically capturing intricate details of a customer’s preferences, concerns, requests, critical information, and callback expectations, and to detect when it’s time to direct the call to a human agent (the right human agent).

In short, the VoC reaches its peak value when it captures the full depth and breadth of what the customer is talking about and what they are trying to communicate. AI-enabled chatbots are thus bringing great value and effectiveness in consumers’ call center experiences. 

From the call center representative perspective, AI-enabled chatbots are a tremendous efficiency and effectiveness boost for these persons also. Many details of the initial customer interaction can be automatically captured, recorded, indexed, and made searchable even before the call is directed to the representative, increasing the likelihood that it is the right representative for that customer’s specific needs. Not only is the CX amplified, but so is the EX (Employee Experience). Surveys and reports have documented that the strong improvement in call center staff EX is a source of significant value to the entire organization. 

One dimension of this EX amplification that should not be overlooked is when advanced case management is required from a human call center agent. In cases like that, the agent is engaged in their best (most satisfying) capacity as the expert and most knowledgeable source to help the customer, in sharp contrast to other calls where they are engaged in answering the standard FAQs, or in quoting customer account information from a database that a chatbot could easily have retrieved, or in asking the customer to repeat the same information that the customer gave to a previous agent. Everybody wins when all those latter activities are handled swiftly, accurately, and non-redundantly prior to the person-to-person engagement that can then provide the best human touch in the entire caller experience.

Chatbots employ a suite of data-driven technologies, including: machine learning (for pattern detection and recognition, sentiment and emotion detection), natural language processing (covering natural language understanding NLU and natural language generation NLG), voice assistants (for voice search and autonomous action-enablement), cloud computing (to activate actions, services, document creation and document processing), AI (for auto-transcribing conversations, creating real-time action lists, and adding information to appropriate fields automatically), and more.

When the Voice of the Customer talks, the modern AI-powered Call Center listens and responds. 

Learn more about the modern Call Center and CX Reimagined at CX Summit 2021, presented by Five9. The Summit’s 5 tracks and multiple sessions will focus on the transformation of the contact center through the evolution of digital channels, AI, Automation and Analytics. By applying the power of data and the cloud we can reimagine CX and realize results in a rapidly changing marketplace. At the Summit, you can connect and network with contact center professionals, ecosystem partners and peers, you can learn to optimize your Five9 implementation to superpower your contact center, you can hear customer stories and product updates, and you can learn how Five9 can help you deliver a whole new level of customer service. Register here for CX Summit 2021 and see for yourself where the Reimagined becomes the Realized in CX: https://five9cxsummit.com/insix

Learn more about the Summit, some highlights and key takeaways, in my follow-up article “EX is the New CX.”

Note: This article was sponsored. The opinions expressed here are my own and do not represent the opinions of any other person, company, or entity.

#Five9CXSummit #CXNation