What is the business value of AI ( Artificial Intelligence ) technologies in business today?

1. What is the business value of AI (Artificial Intelligence) technologies in business today? 941634 黃竣亨

2. U.S. Bancorp and Wachovia Bank──What is the business value of AI technologies in business today? U.S Bancorp. use a variety of AI tools called “neural network” to detecting credit-card frauds. It have slashed such incidents by 70%.

3. Wal-Mart──What is the business value of AI technologies in business today? Wal-Mart harnesses AI to transform raw data into useful information and consolidates point-of-sale details from it’s 3000 stores. Wal-Mart uses “data-mining system” to instantly shift the deluge to uncover patterns and relationships that would elude an army of human searches.

4. Wal-Mart(cont.)──What is the business value of AI technologies in business today? The system enable Wal-Mart to predict sales of every products at each stores with uncanny accuracy, translating into huge savings in inventories and maximum payoff from promotional spending.

5. Bank Financial──What is the business value of AI technologies in business today? Bank Financial Corp. use the Clementine data-mining “workbench” to develop model that predict customers’ behaviors so that bank can accurately target promotion to customers and prospects. Bank Financial Corp. also beginning to use Product Marketing, a new package of “best-practice templates” for helping users set up predictive model .

6. Bank Financial(cont.)──What is the business value of AI technologies in business today? Predictive Marketing will reduce the time it takes the bank to develop a model. The first major application is a model to predict customers churn, the rate at which customers come and go.

7. HP ──What is the business value of AI technologies in business today? HP can use their techniques of “lead ratings” to predict customer-led ratings with 85% accuracy. HP has an Enterprise Systems Group that pulls together people with diverse background and strong analytical skills for it’s group that does predictive modeling of customer behavior.

8. HP(cont.)──What is the business value of AI technologies in business today? HP use software to mine its database of customers and prospects, using AI techniques to predict customer churn, loyalty, and where to target marketing.

9. What are some of the benefits and limitations of data mining for business intelligence? Use BankFinancial’s experience to illustrate your answer. 941633 張耕瑋

10. What are some of the benefits and limitations of data mining for business intelligence? Use BankFinancial’s experience to illustrate your answer. Benefits : understanding and predicting customer behavior cost-saving revenue-boosting reduce time For BankFinancial this means knowing where to target customer promotions and how to get new prospects for business growth. 

11. What are some of the benefits and limitations of data mining for business intelligence? Use BankFinancial’s experience to illustrate your answer.(cont’d) Limitations : Getting daily transaction data cost of data warehouse Integrating disparate data sources BankFinancial had a lot of difficulty getting the transaction data in the first place and, due to different data sources, had trouble integrating the data into something meaningful.

12. What are some of the benefits and limitations of data mining for business intelligence? Use BankFinancial’s experience to illustrate your answer.(cont’d)

13. Why have banks and other financial institutions been leading users of AI technologies like neural networks? What are the benefits and limitations of this technology? 941633 張耕瑋

14. Why have banks and other financial institutions been leading users of AI technologies like neural networks?  Banks and other financial institutions have been leaders in using AI, such as neural networking, because it makes good business sense.  They were able to reduce credit card fraud and save lots of money previously lost to these fraudulent business practices by using neural networking. 

15. What are the benefits and limitations of this technology? Benefits increasing income by better understanding customer desires and needs less formal statistical training Limitations Integrating disparate data sources Getting daily transaction data The data mining project is only as good as the data available to sift through.

16. Benefits to other industries • Marking/Retailing • Aid direct marketers by providing them with useful and accurate trends about their customers’ purchasing behavior.   Based on these trends, marketers can direct their marketing attentions to their customers with more precision. • Banking/Crediting • Data mining can assist financial institutions in areas such as credit reporting and loan information.  • Law enforcement • Data mining can aid law enforcers in identifying criminal suspects as well as apprehending these criminals by examining trends in location, crime type, habit, and other patterns of behaviors.

17. Limitations Security issues Although companies have a lot of personal information about us available online, they do not have sufficient security systems in place to protect that information.  Misuse of information/inaccurate information Trends obtain through data mining intended to be used for marketing purpose or for some other ethical purposes, may be misused. 

18. Describe what the AI in the real case is all about? 941621 江秉憲

19. Artificial Intelligence(AI) Artificial intelligence is the intelligence of machines and the branch of computer science which aims to create it. The field was founded on the claim that a central property of human beings, intelligence can be so precisely described that it can be simulated by a machine. Artificial intelligence, by claiming to be able to recreate the capabilities of the human mind.

20. What is an Expert system？ - Techniques of AI An expert system is software that attempts to reproduce the performance of one or more human experts. A traditional application of artificial intelligence. Once the system is developed, it is proven by being placed in the same real world problem solving situation.

21. What is an Expert system？(cont.) - Techniques of AI • Two main methods of reasoning : • Forward chaining - An inference engine using forward chaining searches the inference rules until it finds one in which the if clause is known to be true. It then concludes the then clause and adds this information to its data.

22. What is an Expert system？(cont.) - Techniques of AI • Backward chaining - An inference engine using backward chaining would search the inference rules until it finds one which has a then clause that matches a desired goal. If the if clause of that inference rule is not known to be true, then it is added to the list of goals. EX: • If Fritz is green then Fritz is a frog. • If Fritz is a frog then Fritz hops.

23. What is an Neural networks? - Techniques of AI • An artificial neural network (ANN), also called • asimulated neural network (SNN) • neural network (NN) • What a neural network is, most would agree that it involves a network of simple processing elements (neurons) determined by the connections between the processing elements and element parameters. • In a neural network model, simple nodes are connected together to form a network of nodes —"neural network."

24. What is an Neural networks?(cont.) - Techniques of AI • In most cases an ANN is an adaptive system that changes its structure based on external or internal information that flows through the network. • An adaptive system - is a set of interacting or interdependent entities, real or abstract, forming an integrated whole that together are able to respond to environmental changes or changes in the interacting parts.

25. What is Data-mining? - Techniques of AI • Data-mining is the process of extracting hidden patterns from data, as more data is gathered, data mining is becoming an increasingly important tool to transform this data into information. • The term data-mining is often used to apply to the two separate processes of knowledge discovery and prediction. • Knowledge discovery - provides explicit information about the characteristics of the collected data. • Forecasting and predictive modeling - provide predictions of future events.

26. What is Data-mining?(cont.) - Techniques of AI • Data mining commonly involves four classes of task : • Classification - Arranges the data into predefined groups. • Clustering - Is like classification but the groups are not predefined, so the algorithm will try to group similar items together. • Regression - Attempts to find a function which models the data with the least error. • Association rule learning - Searches for relationships between variables.

27. What are the advantage and disadvantage of the AI? 941627 張書銘

28. Advantages Wal-Mart 1.Transform raw data into useful data in high efficiency. 2.Help them predict sales with uncanny accuracy. 3.Huge savings in inventories. 4.Maximum payoff from promotional spending.

29. Advantages (cont.) BankFinancial 1.Accuracy number calculating. 2.Faster math model developing. 3.Predict customer behavior. 4.Help them make promotion plans.

30. Advantages (cont.) HP 1.Predict customer behavior. 2.Help them make the promotion plan. 3.Analysis personnel’s assessments with complex data.

31. Disadvantages Data transaction issues A huge amount of data need transform into regular files. Make them can be read by AI analysis process. Data collection issues There are some difficulties with raw data collection. These data sources are disparate could be from database, writing records, phone calls, etc.

32. Disadvantages (cont.) Timeliness issuesDecision maker and his group member can get a result directly and quickly. They don’t need transform data to a specification format. Because of that, AI may be useful in strategy decision making rather than tactics. Limited functionalityEvery AI had a specialty in solving problems, but they can’t solve other issues which they are not designed for.

33. Disadvantages (cont.) No creative, less adaptabilityAI provides good solutions but may not the best. Some small signs or unpredictable events can’t input into AI, like people emotion, natural disaster, etc.These things are hard to quantify, only people can deal with them.

34. How does the AI change the way new business operate now? 941651 林虛白

35. Stocks-Wal Mart

36. Marketing strategy-WWE

37. Credit card issuing-HSBC

38. The place of goods-Wal Mart

39. Choose types of ground-CAD System

40. Determine Cancer –Kaohsiung medical university Chung-ho memorial hospital

41. Forecast Stock index–Beat Wüthrich Vincent Cho

42. Players’ career Analysis-Baseball Analysts

43. Experimental design - ACS

44. Besides those mentioned in the case, what other ways can a business realize more business benefits from the AI technique? 941641 李昌諭

45. Market Basket Analysis 941641 李昌諭

46. Market Basket Analysis Rule A  D C  A A  C B & C  D Support 2/5 2/5 2/5 1/5 Confidence 2/3 2/4 2/3 1/3 941641 李昌諭

47. Market Basket Analysis Advantages Computing model is easy-to-read Conclusions are easy-to-read Can analyze the different forms of raw data Defects When goods increase in the number of operations will be followed by an increase geometrically Special attention not to the individual characteristics of goods Difficult to determine the appropriate combination of a few commodities Easy to remove a rare commodity 941641 李昌諭

48. Wal-Mart Knows the appropriate combination of commodities at different positions and in different time. Drive propositions, advert and product placement. Babies nappies (diapers) and beers purchases revealed that they were made by men, on Friday evenings mainly between 6pm and 7pm.

49. HP The components of the computer suite and the peripherals. Most students will purchase computers with good graphics card, speaker, LCD, and joy sticks during summer vacation. 941641 李昌諭

50. HP The consumer will buy printer, and they also may buy ink, toner, or paper. 941641 李昌諭