Global Big Data Conference

Artificial intelligence can do a lot to improve business practices, but AI algorithms can also introduce new avenues of risk. For example, consider Zillow's recent shutdown of Offers, the branch of the company dedicated to buying fixer uppers, after its prediction models significantly overshot house values. When housing price data changed unpredictably, the group's machine-learning models didn't adapt quickly enough to account for the volatility, resulting in significant losses. This type of data mismatch or "concept drift" happens if you don't give proper care and respect to data audits. Zillow's failure to properly audit its data didn't just hurt the company; it could have caused wider damage by scaring other businesses away from AI. Negative perceptions of a technology can halt its progress in the commercial world, especially for a category like AI that already went through several winters.