Sponsored Content by Beyond Limits

AI that explains its recommendation delivers far better ROI

By Evan Schuman

AI today exists in some form in just about every enterprise in the US. Within those companies, it’s present in almost every department — from security defending against malware-armed attackers, to marketing trying to predict next season’s buying habits, and manufacturing trying to guess the next piece of machinery to breakdown.

But despite this popularity, AI and its machine learning are unloved elements. Decision-makers tend not to trust AI, meaning that they resist if not disregard its recommendations. From an ROI perspective, it makes little sense to invest in AI if an enterprise’s top people are too scared to accept the recommendations.

Dig a little deeper, though, and the reason why these managers are scared emerges and it’s not because of a history of bad AI recommendations. It’s because of a lack of context. When an AI system says the decision-makers should do X but doesn’t explain why to do X, it creates a problem with trust. And when AI doesn’t explain how it came to the conclusion that the right thing to do is X, there’s yet a deeper problem.

The power of trust

To be fair, it’s not that these decision-makers distrust all software. These same people show the same level of distrust when new employees recommend a new way of doing something but won’t say why or how they came to that suggestion. Without an explanation, managers will most likely have little if any inclination to change a process. That same feeling arises when a suggestion comes from an AI system.

Beyond Limits has repeatedly seen this hesitation in the field, which is why its AI systems explicitly detail the basis of all recommendations, allowing decision-makers to make a choice based on reasoning and not solely on recommendation.

A learning system — which all AI deployments are, to varying degrees — factors decision into its algorithm. It will tend to conclude that a rejected recommendation means it contained a critical flaw. But if recommendations are routinely rejected because they lack context, the AI system might learn the wrong lesson. That’s why Beyond Limits’ explanation approach delivers far more accurate conclusions: recommendations that get increasingly more accurate over time.

Where traditional AI performs well

[tc_unified_video code=”0feb9f0b-f9de-3c5e-a1b2-6a5005eadc4f”]

Today’s traditional AI systems, including machine learning, neural networks and deep learning, are excellent at detecting patterns and, even more critically, pattern deviations. Assuming the system has been fed the right data, and plenty of it, it will likely do quite well at detecting that something abnormal is going on.

But for today’s enterprises, that may or may not always be particularly helpful. In a factory floor setting, for example, noting that a deviation exists — and potentially where that deviation is happening — is nice, but unless the system can propose what is causing the problem and a practical means of fixing that problem, it has limited usefulness. 

That’s where Beyond Limits’ advanced symbolic AI comes into play. It includes the human intuition and reasoning elements that allow a system to analyze, hypothesize, correlate, plan, learn and teach. In other words, it doesn’t merely find the problem; it tries to solve it.

The fact that Beyond Limits emphasizes explainable answers that communicate to decision-makers and end-users the “why” behind those answers is critical. The recommendations are not only more accurate and easier to implement, but they’re easier for decision-makers to embrace because the reasoning is transparent and audit trails are explicit.

Even better, the answers are easily understood by decision-makers and end users, as well as by machines, which completes the circle. 

AI in energy

Image Credits: iStock

Consider the example of an oil refinery. These environments are orders of magnitude more complex than typical industrial environments and they rely on layers on top of layers of interdependencies. When an isolated machine learning system spots a problem, it will often make recommendations that do not factor in all of those interdependencies. If the enterprise reconfigures almost any segment of a refinery, it invalidates all of that location’s machine learning models. That forces retraining and the creation of new models, which is grossly expensive, not to mention highly disruptive. 

A far better approach is to teach the systems about, for instance, the physics of what a valve or a tank is. That allows systems to not only detect a subtle variation (something is overheating) but deduce what needs to be changed, how it should be changed and the implications of those changes. If a recommendation is accepted, the system remembers that, and it updates all of its models and assumptions accordingly.

This human-thinking approach is the most effective, compared with routine AI, when datasets are imperfect. To be fair, that’s almost always. When the environment includes seemingly conflicting data along with missing and misleading information, executives need a system that understands the data at a conceptual level. Only then can it figure out what data needs to be examined and what needs to be disregarded, as well as the best ways to fix a problem. This approach is based on opportunistic self-discovery monitoring and bi-modal cognitive-based reasoning, along with autonomous self-discovery to resolve ambiguities.

ROI, TCO implications

Image Credits: Getty Images

Enterprises rarely purchase technology that doesn’t need the explicit endorsement of the CFO. Few CEOs will approve much of anything without the blessing of the chief number-cruncher. Fortunately, Beyond Limits’ approach to AI delivers well, in terms of both ROI and TCO (total cost of ownership.)

More accurate results coupled with faster recommendations means smoother operations and improved time to market. How? At its core, these AI systems are about anticipating and negating problems. If an assembly line never has to be shut down because of a mechanical failure, that keeps production going. And if that line continues to run because AI detected a likely mechanical problem and allowed that piece of equipment to be replaced before it broke down, that’s ROI.

Even the more routine operations of AI allow for smarter decisions, which will help with operations and sidestep unnecessary labor costs. They also allow better decisions about everything from pricing to accelerating trade routes, making superior real estate arrangements and selecting more effective hires — and every other decision that’s important to the enterprise. That all speaks to boosted revenue, reduced costs and better profits. 

Strategic decisions, such as whether it’s wise to move into a new geography or make a specific acquisition, can also be sharply helped by proper AI systems. As every board member knows, if those strategic decisions are neither well-thought-through nor factor in future possibilities where AI excels, the financial hardships can be felt for years.

Another personnel advantage from properly executed AI strategies: Reallocating IT analysts to roles where they can focus on their core expertise, which delivers even more business benefits because they’re freed up to delve into more lucrative tasks. As a practical matter, some companies struggle to hire a sufficient number of analysts to perform needed functions. Although AI can’t — and shouldn’t — replace all analysts, AI systems can reduce the number of analysts needed. In a talent shortage such as many businesses are facing in 2021, that can make a massive difference.

AI can also spot trends that might otherwise be missed entirely by human analysts. Those benefits accrue to the ROI, as does enhancing performance at just about every level via system planning agility.

Perhaps the biggest ROI impact from advanced AI is implementation. This speaks to the credibility that decision-makers attribute to a system that explains all recommendations. Without that, talent in the field will disregard many of the AI’s recommendations. A sophisticated AI that isn’t used very often will have an obvious limitation in boosting productivity and profits. It must be used if it’s to help.

Decades ago, Apple effectively made this argument about Macs. The fact that people enjoyed using Macs more at the time meant they would deliver more efficiencies, encourage more work and boost results more than another computer that people didn’t want to use. Before anything else can be factored into the ROI equation for advanced AI, the system’s recommendations have to be believed, respected and accepted. If that doesn’t happen, none of the other factors matter. By explaining the recommendations in clear English, Beyond Limits’ AI deployments work more effectively than others.

More TechCrunch

PayHOA, a previously bootstrapped Kentucky-based startup that offers software for self-managed homeowner associations (HOAs), is an example of how real-world problems can translate into opportunity. It just raised a $27.5…

Meet PayHOA, a profitable and once-bootstrapped SaaS startup that just landed a $27.5M Series A

Restaurant365, which offers a restaurant management suite, has raised a hot $175M from ICONIQ Growth, KKR and L Catterton.

Restaurant365 orders in $175M at $1B+ valuation to supersize its food service software stack 

Venture firm Shilling has launched a €50M fund to support growth-stage startups in its own portfolio and to invest in startups everywhere else. 

Portuguese VC firm Shilling launches €50M opportunity fund to back growth-stage startups

Chang She, previously the VP of engineering at Tubi and a Cloudera veteran, has years of experience building data tooling and infrastructure. But when She began working in the AI…

LanceDB, which counts Midjourney as a customer, is building databases for multimodal AI

Trawa simplifies energy purchasing and management for SMEs by leveraging an AI-powered platform and downstream data from customers. 

Berlin-based trawa raises €10M to use AI to make buying renewable energy easier for SMEs

Lydia is splitting itself into two apps — Lydia for P2P payments and Sumeria for those looking for a mobile-first bank account.

Lydia, the French payments app with 8 million users, launches mobile banking app Sumeria

Cargo ships docking at a commercial port incur costs called “disbursements” and “port call expenses.” This might be port dues, towage, and pilotage fees. It’s a complex patchwork and all…

Shipping logistics startup Harbor Lab raises $16M Series A led by Atomico

AWS has confirmed its European “sovereign cloud” will go live by the end of 2025, enabling greater data residency for the region.

AWS confirms will launch European ‘sovereign cloud’ in Germany by 2025, plans €7.8B investment over 15 years

Go Digit, an Indian insurance startup, has raised $141 million from investors including Goldman Sachs, ADIA, and Morgan Stanley as part of its IPO.

Indian insurance startup Go Digit raises $141M from anchor investors ahead of IPO

Peakbridge intends to invest in between 16 and 20 companies, investing around $10 million in each company. It has made eight investments so far.

Food VC Peakbridge has new $187M fund to transform future of food, like lab-made cocoa

For over six decades, the nonprofit has been active in the financial services sector.

Accion’s new $152.5M fund will back financial institutions serving small businesses globally

Meta’s newest social network, Threads, is starting its own fact-checking program after piggybacking on Instagram and Facebook’s network for a few months.

Threads finally starts its own fact-checking program

Looking Glass makes trippy-looking mixed-reality screens that make things look 3D without the need of special glasses. Today, it launches a pair of new displays, including a 16-inch mode that…

Looking Glass launches new 3D displays

Replacing Sutskever is Jakub Pachocki, OpenAI’s director of research.

Ilya Sutskever, OpenAI co-founder and longtime chief scientist, departs

Intuitive Machines made history when it became the first private company to land a spacecraft on the moon, so it makes sense to adapt that tech for Mars.

Intuitive Machines wants to help NASA return samples from Mars

As Google revamps itself for the AI era, offering AI overviews within its search results, the company is introducing a new way to filter for just text-based links. With the…

Google adds ‘Web’ search filter for showing old-school text links as AI rolls out

Blue Origin’s New Shepard rocket will take a crew to suborbital space for the first time in nearly two years later this month, the company announced on Tuesday.  The NS-25…

Blue Origin to resume crewed New Shepard launches on May 19

This will enable developers to use the on-device model to power their own AI features.

Google is building its Gemini Nano AI model into Chrome on the desktop

It ran 110 minutes, but Google managed to reference AI a whopping 121 times during Google I/O 2024 (by its own count). CEO Sundar Pichai referenced the figure to wrap…

Google mentioned ‘AI’ 120+ times during its I/O keynote

Firebase Genkit is an open source framework that enables developers to quickly build AI into new and existing applications.

Google launches Firebase Genkit, a new open source framework for building AI-powered apps

In the coming months, Google says it will open up the Gemini Nano model to more developers.

Patreon and Grammarly are already experimenting with Gemini Nano, says Google

As part of the update, Reddit also launched a dedicated AMA tab within the web post composer.

Reddit introduces new tools for ‘Ask Me Anything,’ its Q&A feature

Here are quick hits of the biggest news from the keynote as they are announced.

Google I/O 2024: Here’s everything Google just announced

LearnLM is already powering features across Google products, including in YouTube, Google’s Gemini apps, Google Search and Google Classroom.

LearnLM is Google’s new family of AI models for education

The official launch comes almost a year after YouTube began experimenting with AI-generated quizzes on its mobile app. 

Google is bringing AI-generated quizzes to academic videos on YouTube

Around 550 employees across autonomous vehicle company Motional have been laid off, according to information taken from WARN notice filings and sources at the company.  Earlier this week, TechCrunch reported…

Motional cut about 550 employees, around 40%, in recent restructuring, sources say

The keynote kicks off at 10 a.m. PT on Tuesday and will offer glimpses into the latest versions of Android, Wear OS and Android TV.

Google I/O 2024: Watch all of the AI, Android reveals

Google Play has a new discovery feature for apps, new ways to acquire users, updates to Play Points, and other enhancements to developer-facing tools.

Google Play preps a new full-screen app discovery feature and adds more developer tools

Soon, Android users will be able to drag and drop AI-generated images directly into their Gmail, Google Messages and other apps.

Gemini on Android becomes more capable and works with Gmail, Messages, YouTube and more

Veo can capture different visual and cinematic styles, including shots of landscapes and timelapses, and make edits and adjustments to already-generated footage.

Google Veo, a serious swing at AI-generated video, debuts at Google I/O 2024