>>live from Las Vegas. It's the two covering AWS executive Something >>brought to you by Accenture >>everyone to the ex Center Executive Summit here in AWS. Reinvent I'm your host, Rebecca Knight. I'm joined by John. Match it. He is the managing director. Applied Intelligence, North America Attic Center Thank you so much for coming on the Q. So we're gonna have a fun conversation about a I today. We tend to think of a I as this futuristic Star Trek Jetsons kind of thing. But in fact, a i a. I is happening here and now >>it's all around us. I think it's intricate zoologist, sort of blood into the fabric girl of our lives without really even knowing about, I mean, just to get here, Let me lives took a new burst. There's a I in the route navigation. We may have listened to Spotify, and there's a I and the recommendation engine. And if you want to check the weather with Alexa, there's a lot of agents in the natural language processing, and none of that was really impossible 10 years ago. So without even trying, just wake up and I sort of like in your system in your blood. >>So as consumers, we deal with a I every day. But it's all but businesses are also using a I, and it's already having an impact. >>I think >>what is absolutely true it and really interesting is that information is just the new basis of competition. Like like you know, companies used to compete with physical objects and look better cars and blenders and stereos and, you know, thermometers. But today, you know, they're all like on a device, and so information is how they compete. And what's interesting to me about that for our clients is that if you have a good idea, you can probably do it. And so you're limited, really by your own imagination on. So I just as an example of like how things are playing out a lover classroom, the farmer space to make better drugs, and every every form of company I know of is using some sort of machine learning a I to create better pharmaceuticals, the big ones, but also the new entrance. One of the companies that we followed numerator really issued company. What they've been able to do is like in just just a massive amount of data like all day, like good data, bad bias on buying >>its ingesting, this kind of data the data is about. >>It's about like drug efficacy, human health, the human genome like like like doctors visits like all this diverse information. And historically, if you put all that data together just to have a way to actually examine it, there's no way that was too much. Humans can't deal with it, but but But machine learning can. And so what? We just all this date up and we let the robots decided sort of less meaningful. And what's happened is you can now deal with instead, just a very fraction that data, but all of it. And the result, like in pharmaceuticals. Is it wearable? Come with new HIV drugs in six months? It used to be years and millions of dollars, tens of millions of dollars. But now it's, you know, it's months, and so it's really changing the way humans live. And certainly the associated industries. They're producing the drugs. >>So it's as you said, I was already being used to reimagine medicine. So many of the high tech jobs openings today are not necessarily in technology there in pharmaceuticals and automotive's. And these and these involved artificial intelligence, their skills in artificial intelligence. What can you tell us about how a eyes having an impact? And that's what I think. >>This is a really good question. What is interesting is that industry she wouldn't think, or digital companies are now actually digital competitors. I'll give you two examples. One is a lot of clients make liquefied natural gas. Now that that is a mucky business. It's full of science, like geology and chemistry and chemical engineering, and they work with these like small refineries. But the questions like, how we gonna get better if you make you know Ellen G. And so what they do is they use a I, and the way they do that is likely have these small refineries. Each piece of equipment has a sensor on it, so there may be 5000 sensors, and each sensor has three or four like bots looking at it, and one might be looking at vibration heat and and what they're doing is they're making predictions. Millions of predictions every every day about you know whether quality is good. The machine's about to have a problem that safety is jeopardise something like that. And so So you've gone from a place where, you know, the best competitors were chemists to the best competitors are actually using machine learning to make the plants work better. You know, another entry. We see this really was brewing. You know, you don't think no one would think brewing is like a digital business like his beer? The Egyptians may be right, like so everyone knows how to do it. So But think about if you make beer like how you're gonna get better and again do what you do is you begin to touch customers more effectively with better digital marketing, you know? Hey, I tow target to understand who your best customers are, how to make offers to them, had a price head of both new product introduction, and even had a formulate new brands of beer that might appeal to different segments of society. So brewing, like they're all about, like ml in the eye. And they really are, like a digital competitive these days, which I think it's interesting, like no one would have thought about that, you know, is they were consuming beer on a Friday with their friends >>and craft brewing is so hot right now. I mean, it is one of those things. As you said, it is attracting new, different kinds of segments of customers. >>Right? And so the questions like if you are a craft brewer like, how do you go find the people that that you want? So what we're doing is we're way have new digital ways to go touch them very personalized offer like, if you like running, you know we can We can give you an offer like fun run followed by a brew. But we know who you are and what you like your friends like to do to get very specific A CZ we like examined the segments of society to do very personal marketing. It's actually fun, like, you know, it gives you things to go Dio we did one event where he looked at cos we we had a a beer tasting with barbecue teach you no instruction. So if you wanna learn how to cook barbecue and also do a beer tasting can get 20 people together and you have a social experience and you you buy more the product. But what's interesting is like, Well, how do you find those people? How do you reach them? How do you identify these of the right folks? That'll actually participate? And that's where a I comes into play. >>So this is fascinating, and you just you just described a number of different industries and companies beer, brewers, liquefied natural gas, pharmaceuticals that are using a I to transform themselves. What is your What do you recommend for the people out there watching and say, I want to do that? How could I get on >>board or what we advise Companies are clients to really get good at three things, and the first is just to do things differently. So you got to go into your core operations and figure out how you can extract more cash and more profit from your existing operations. And so that's like we talked about natural gas, right? Like you could produce it more profitably and effectively, but that's not enough. The next thing you do step to would be to actually grow your core business. Everyone wants to leave to the new right away, but but you're getting all your cash and your legacy businesses and so like like we saw in the brewing history. If you can find new customers, more profitable customers interact with them, create a better digital experience with them, then you'll grow both your top line in your bottom line. But for our from our perspective, the reason you do both of those things is cash. Then make investments into New Net new businesses on DSO. The last thing you do is to do different things, so find in adjacency and grow. And it's important to talk about the role of a I and that because that's the way you develop outcomes with speed, right? Like you're not gonna build a factory and we're gonna build a service or some sort of, you know, information centric offerings. And so what we like to do is talk about like the wise pivot from your old legacy businesses. We generate cash and you make selective investments in the new and how you regulate that is a really important question, because you're too fast and you start the Lexie businesses like to slow, and you're gonna be sort of left out of the new economy. So doing those three things correctly with the right sort of managing processes is what we advise our clients to focus on. >>So I see all of this from the business side. But do you because you're also a consumer? Do you ever see any sort of concerns about privacy and security in the sense of why does anyone need to know if I like to run or I like barbecue with my beer? I mean, how do you How do you sort of think about those things and and talk to clients about those issues >>too? Well, I think, you know, actually, for censure. Ah, large part of our focus is what we call just ethical a eye on. And so it's important to us to actually have offerings that we think that we're comfortable with that are legally comfortable, but also just societally are acceptable. And it's actually like there's a lot of focus in this area, right, how you do it. And there's actually a lot to learn. Like like what we see, for example, is there could be biased in the data which effects the actual algorithm. So a lot of times were the folks in the algorithm, you need to go back to the data and look at that. But it's something we spend a lot of time on. Its important us because we to our consumers and we care about our privacy. >>So when you talk about the wise pivot and the regulation, this is a This is a big question. There's a lot of bills on the table in Washington. It's certainly dominating our national conversation, how we think about regulating thes new emerging technologies that that present a lot of opportunities, but also a lot of risks. So how how are you, how you are you a tech center thinking about regulation and working with regulators on these issues >>way get involved with talking to the government. They seek independent counsel, so we participate when they're seeking guidance and we'll give our offer. So we're a voice at the table. But you know, what I would say is there's a lot of discussion about privacy and ask. But if you look at, like, at a national level, particularly government, I think there used to be more focused just on the parts that are incontrovertibly not problematic with privacy. So I gave you the example of working with liquefied natural gas. Okay, we need better, eh? I'd run our factories better. There's a lot of a I that goes into those kind of problems or supply chain planning. Like, how do I predict demand more effectively, or where should I put my plants? And A. I is the new way supply chain is done right? And so there's There's very few of the consumer centric problems I think, actually is. A society like 90% of the use cases are gonna be in areas where they don't actually influence for privacy and a lot of art. Our time is actually working on those kind of use cases just to make you know the operations of our organization's Maur more effective than more efficient. >>So we talked about the very beginning of this conversation about the companies that are disrupting old industries. Using a lot of these technologies, I mean, is this is a I A case where you need to be using this you need to be using >>you need to be using it. My view, my personal view is that there is going to be no basis of competition in the future, except for a digital. It just is going to be the case. And so all of our clients, you know, they're at some state of maturity and they're all asking the question like, How did I grow up? I don't get more profitable. Like certainly the street. Once more results on DSO if you want to move quickly in the new space, is you. You you you only have 11 choice. Really? And that that is to get really, really, really good at managing in harnessing digital technologies, inclusive of >>a I >>two to compete in a different way. And so I mean, we're seeing really interesting examples were like, you know, like, retailers are getting into health care, right? Like, you see this like you go into Wal Mart and they have our Walgreens. They have, like a doc in the box, right? So we're seeing. But lots of companies that are making physical things that then turn around and use the developing service and what they used to use their know how they take everything they know about, like like something you know about, like healthcare or how to like, you know, offer service is to customers and retail setting, but then they need to do something different. And now how do I get the data and the know how to then offer, like a new differentiated health service? And so to do that, you know, you have a lot. You have a lot of understanding about your customers, but you need to get all the data sources in place. You may need certain help desk. You know you need ways to aggregate it on, and so you probably need a new partnerships that don't have. You probably need toe manage skill sets that you don't have. You may need to get involved with open source communities. You may need to be involved with universities that where they do research, so you'll need a different kind of partnerships to move a speed then companies have probably used in the past. But when they put all those those eco systems together, onda new emphasis on the required skill sets, they can take their legacy knowledge that's probably physically oriented and then create a service that can create. They can monetize their experience with the new service. What what we find usually doesn't work is just a monetized data. If you have a lot of data, it's not usually worth that much. But if you take the data and you create a new service that people care about, then you can monetize your legacy information that that that's what a lot of our class they're trying to do, think they've very mature and now, like Where do you go? And where they go is something may be nearby to their existing business, but it's not. It's not the same legacy business of the path for years. >>I want to take a little deeper on something you brought up about the skills, and there's a real skills gap in Silicon Valley and in companies in this area. How are you working with companies to make sure that they are attracting the right talent pool and retaining those workers once they have? Um, >>well, so this is, I think, one of the most important questions because, like what? What happened with technology in the past? We would put in these like ear piece systems, and that was a big part of our business, like 15 years ago. And once you learned one of those things, that's a P or oracle or, you know, like whatever your skill set was good for 10 years, You probably you were good. You could just, like, go to the work. But today it just just go down to like the convention center. Look at this vast array of like like >>humanity, humanity >>and new technologies. I mean, half these companies didn't even exist, like, five years ago, right? And so you're still set today is probably only good for a year. So I think the first thing you've got to realise is that there's got to be a new focus on actually cultivating talent as a strategy. It's it's the way to compete like people is your product, if you wanna look at that way. But we're doing actually starting very, uh, where we can very early in the process, like much beyond a corporation. So we work with charter schools over kids, we get them into college, we work with universities, we do a lot of internship. So we're trying to start, like, really early on when you ask a question like, what would our recommendation to the government be were actually advising, like, get kids involved in I t. Like earlier and so so we can get that problem resolved but otherwise, once companies work. I think you know you need your own talent strategy. But part of that might be again, like an eco system play like maybe you don't want all of those people and you'd rather sort of borrow on. And so I think, I think figuring out what your eco system is because I think I think in the future like competition will be like my eco system versus your eco system. And that's that is the way I think it's gonna work. And so thinking in an eco system way is, is what most of our clients need to do. >>Well, it's like you said about the old ways of it was a good idea for a good product versus good ideas. And I just keep looking. Thank you so much, John, for coming on the Cuba Really fascinating conversation >>was my pleasure. Thank you so much. >>I'm Rebecca Knight. Stay tuned for more of the cubes. Live coverage of the Accenture Executive Summit coming up in just a little bit