Demystifying artificial intelligence

In the last several years, interest in artificial intelligence (AI) has surged. Venture capital investments in companies developing and commercializing AI-related products and technology have exceeded $2 billion since 2011.1 Technology companies have invested billions more acquiring AI startups. Press coverage of the topic has been breathless, fueled by the huge investments and by pundits asserting that computers are starting to kill jobs, will soon be smarter than people, and could threaten the survival of humankind. IBM has committed $1 billion to commercializing Watson, its cognitive computing platform.2 Google has made major investments in AI in recent years, including acquiring eight robotics companies and a machine-learning company.3 Facebook hired AI luminary Yann LeCun to create an AI laboratory with the goal of bringing major advances in the field.4 Amid all the hype, there is significant commercial activity underway in the area of AI that is affecting or will likely soon affect organizations in every sector.