Kevin Markarian is the cofounder of Roopler, an AI-driven lead generation platform built for the real estate industry.
Artificial intelligence is rapidly upending how people do business across industries, and yet skeptics still abound. But is there really a reason to fear AI?
AI will change how we work and do business, and its impact is already being felt. Still, that doesn’t mean it is something to fear. On the contrary, business managers and leaders who embrace AI and harness its potential now have everything to gain.
Making Sense Of AI
According to IBM, at its most basic, AI is anything that “leverages computers and machines to mimic the problem-solving and decision-making capabilities of the human mind.” But not all AI is built alike. There are two types of AI: narrow AI and strong AI.
Narrow AI is trained to perform specific tasks. A bot that can carry out a conversation with a potential customer is an example of narrow AI but is more robust. Strong AI, which is what we’re moving toward, is AI that can perform all the complex tasks and decision-making processes of a human (e.g., an emotionally intelligent machine that can make tough decisions, reflect on their impact, and recalibrate accordingly). Whether strong AI is just another flying car is yet to be seen.
From Flying Cars To AI
As history has repeatedly shown, some visions of the future simply never come to pass. The first patent for a flying car was issued in 1918, and over a century later, we’re still not battling aerial car crashes. This hasn’t prevented people from dreaming and worrying about a future where skyways replace roadways. As a cofounder of a business powered by AI, my best guess is that AI is today’s flying car.
Since 2010, concerns about AI’s pending impact on the economy and the future of work have been on the rise. Unless you’ve been living off the grid, you’ve probably read dozens of articles on the Topic by now, such as the 2020 article in Time that reported, “AI job automation has already replaced around 400,000 factory jobs in the U.S. from 1990 to 2007, with another 2 million on the way.”
The Time article isn’t factually incorrect. Some industries have experienced job losses, and I think more job losses might be coming. The article is also right to note that AI enables companies to do more with less. But this doesn’t mean that our jobs are threatened.
For example, consider the real estate industry. Today, AI is beginning to take over some aspects of lead generation and cultivation. While this may appear to be a threat, as someone who runs two successful brokerages and a tech company, I can assure you that the need for human agents isn’t disappearing. AI will help agents serve more consumers, but I don’t foresee anyone closing a deal on a home with a bot. Why? Because AI lacks the emotional intelligence and complexity required to help people make significant decisions, including buying and selling homes.
How Business Leaders Can Leverage AI
While AI may seem out of reach, even small- to medium-sized business owners can embrace AI.
• Leverage AI for lead generation. No one loves bad bots, but with a small investment and the right talent, you can already build AI-backed platforms that actually work. If you’re in a fast-paced, customer-focused industry like real estate or any other high-stakes sales industry, investing in AI can help you quickly respond to incoming client inquiries and close more deals over time.
• Use AI to find and recruit talent. Hiring great talent and building outstanding teams takes time and energy. With the capacity to sort through thousands of applications at a rate much faster than any human, AI is changing how we recruit talent. Better yet, it can help us discover candidates we may have overlooked in the past due to our own biases and assumptions. While AI isn't perfect (biases can be built into algorithms), it still holds the potential to help business owners cast their net wider, review more candidate applications and use increasingly nuanced criteria to recruit and build the very best talent pool.
• Let AI show you the way forward. Used to its full potential, AI can also point you and your business in entirely new directions, and for a simple reason. When you embrace AI, you have access to massive amounts of data about your customer base. You could use this information to keep doing what you're already doing, but the smartest business leaders let their AI point them in new directions.
Common Mistakes Made By New Adopters
We’ve all heard the saying, “If you can’t beat them, join them.” This also holds true for AI. AI isn’t going away. Business owners who embrace AI now and start exploring how it can help them do more will be the biggest winners. Still, it is also important to avoid these three common mistakes.
Not recruiting the right talent to your team. If you're not already using AI, you likely don't have the right talent on your team. While outsourcing an AI initiative is always an option, your return on investment will ultimately be higher if you build your AI project in-house. This likely means recruiting new talent.
Not appreciating the potential risks of investing in AI. AI also poses unique risks. If you invest in a new factory and the gamble doesn't pay off, you can still sell the factory and the equipment in it to recuperate part of your lost investment. If you invest in AI and the gamble doesn't pay off, it is a different story since you likely can't sell your algorithms, which were developed specifically for your business. In this respect, AI, for all its benefits, also poses unique risks to business owners.
Assuming AI can do it all. Finally, it is important to keep AI in perspective. It can transform your business, but this doesn't mean you can put your business on autopilot. Even as AI transforms businesses, business leaders are still calling the shots.
Over the coming decades, AI will profoundly change how we live, learn and do business. But it won't do any of this without our vision, insights and permission. As business leaders, the most strategic thing we can do is embrace AI as an opportunity to serve our broader business mandates.
Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
Last week, after IBM’s report of positive quarterly earnings, CEO Arvind Krishna and CNBC’s Jim Cramer shared their frustration that IBM’s stock “got clobbered.” IBM’s stock price immediately fell by10%, while the S&P500 remained steady (Figure 1)
While a five-day stock price fluctuation is by itself meaningless, questions remain about the IBM’s longer-term picture. “These are great numbers,” declared Krishna.
“You gave solid revenue growth and solid earnings,” Cramer sympathized. “You far exceeded expectations. Maybe someone is changing the goal posts here?”
It is also possible that Krishna and Cramer missed where today’s goal posts are located. Strong quarterly numbers do not a digital winner make. They may induce the stock market to regard a firm as a valuable cash cow, like other remnants of the industrial era. But to become a digital winner, a firm must take the kind of steps that Satya Nadella took at Microsoft to become a digital winner: kill its dogs, commit to a mission of customer primacy, identify real growth opportunities, transform its culture, make empathy central, and unleash its agilists. (Figure 2)
Since becoming CEO, Nadella has been brilliantly successful at Microsoft, growing market capitalization by more than a trillion dollars.
Krishna has been IBM CEO since April 2020. He began his career at IBM in 1990, and had been managing IBM’s cloud and research divisions since 2015. He was a principal architect of the Red Hat acquisition.
They are remarkable parallels between the careers of Krishna and Nadella.
· Both are Indian-American engineers, who were born in India.
· Both worked at the firm for several decades before they became CEOs.
· Prior to becoming CEOs, both were in charge of cloud computing.
Both inherited companies in trouble. Microsoft was stagnating after CEO Steve Ballmer, while IBM was also in rapid decline, after CEO Ginny Rometty: the once famous “Big Blue” had become known as a “Big Bruise.”
Although it is still early days in Krishna’s CEO tenure, IBM is under-performing the S&P500 since he took over (Figure 3).
More worrying is the fact that Krishna has not yet completed the steps that Nadella took in his first 27 months. (Figure 1).
Nadella wrote off the Nokia phone and declared that IBM would no longer sell its flagship Windows as a business. This freed up energy and resources to focus on creating winning businesses.
By contrast, Krishna has yet to jettison, IBM’s most distracting baggage:
· Commitment to maximizing shareholder value (MSV): For the two prior decades, IBM was the public champion of MSV, first under CEO Palmisano 2001-2011, and again under Rometty 2012-2020—a key reason behind IBM’s calamitous decline (Figure 2) Krishna has yet to explicitly renounce IBM’s MSV heritage.
· Top-down bureaucracy: The necessary accompaniment of MSV is top-down bureaucracy, which flourished under CEOs Palmisano and Rometty. Here too, bureaucratic processes must be explicitly eradicated, otherwise they become permanent weeds.
· The ‘Watson problem’: IBM’s famous computer, Watson, may have won ‘Jeopardy!’ but it continues to have problems in the business marketplace. In January 2022, IBM reported that it had sold Watson Health assets to an investment firm for around $1 billion, after acquisitions that had cost some $4 billion. Efforts to monetize Watson continue.
· Infrastructure Services: By spinning off its Cloud computing business as a publicly listed company (Kyndryl), IBM created nominal separation, but Kyndryl immediately lost 57% of its share value.
· Quantum Computing: IBM pours resources into research on quantum computing and touts its potential to revolutionize computing. However unsolved technical problems of “decoherence” and “entanglement” mean that any meaningful benefits are still some years away.
· Self-importance: Perhaps the heaviest baggage that IBM has yet to jettison is the over-confidence reflected in sales slogans like “no one ever got fired for hiring IBM”. The subtext is that firms “can leave IT to IBM” and that the safe choice for any CIO is to stick with IBM. It’s a status quo mindset—the opposite of the clients that IBM needs to attract.
At the outset of his tenure as CEO of Microsoft, Nadella spent the first nine months getting consensus on a simple customer-driven mission statement.
Krishna did write at the end of the letter to staff on day one as CEO, and he added at the end:“Third, we all must be obsessed with continually delighting our clients. At every interaction, we must strive to offer them the best experience and value. The only way to lead in today’s ever-changing marketplace is to constantly innovate according to what our clients want and need.” This would have been more persuasive if it had come at the beginning of the letter, and if there had been stronger follow-up.
What is IBM’s mission? No clear answer appears from IBM’s own website. The best one gets from About IBM is the fuzzy do-gooder declaration: “IBMers believe in progress — that the application of intelligence, reason and science can Strengthen business, society and the human condition.” Customer primacy is not explicit, thereby running the risk that IBM’s 280,000 employees will assume that the noxious MSV goal is still in play.
At Microsoft, Nadella dismissed competing with Apple on phones or with Google on Search. He defined the two main areas of opportunity—mobility and the cloud.
Krishna has identified the Hybrid Cloud and AI as IBM’s main opportunities. Thus, Krishna wrote in his newsletter to staff on day one as CEO: “Hybrid cloud and AI are two dominant forces driving change for our clients and must have the maniacal focus of the entire company.”
However, both fields are now very crowded. IBM is now a tiny player in Cloud in comparison to Amazon, Microsoft, and Google. In conversations, Krishna portrays IBM as forging working partnerships with the big Cloud players, and “integrating their offerings in IBM’s hybrid Cloud.” One risk here is whether the big Cloud players will facilitate this. The other risk is that IBM will attract only lower-performing firms that use IBM as a crutch so that they can cling to familiar legacy programs.
At Microsoft, Nadella addressed culture upfront, rejecting Microsoft’s notoriously confrontational culture, and set about instilling a collaborative customer-driven culture throughout the firm.
Although Krishna talks openly to the press, he has not, to my knowledge, frontally addressed the “top-down” “we know best” culture that prevailed in IBM under his predecessor CEOs. He has, to his credit, pledged “neutrality” with respect to the innovative, customer-centric Red Hat, rather than applying the “Blue washing” that the old IBM systematically applied to its acquisitions to bring them into line with IBM’s top-down culture, and is said to have honored its pledge—so far. But there is little indication that IBM is ready to adopt Red Hat’s innovative culture for itself. It is hard to see these two opposed cultures remain “neutral” forever. Given the size differential between IBM and Red Hat, the likely winner is easy to predict, unless Krishna makes a more determined effort to transform IBM’s culture.
As in any large tech firm, when Nadella and Krishna took over their respective firms, there were large hidden armies of agilists waiting in the shadows but hamstrung by top-down bureaucracies. At Microsoft, Nadella’s commitment to “agile, agile, agile” combined with a growth mindset, enabled a fast start.. At IBM, if Krishna has any passion for Agile, it has not yet shared it widely.
Although IBM has made progress under Krishna, it is not yet on a path to become a clear digital winner.
And read also:
Is Your Firm A Cash-Cow Or A Growth-Stock?
Why Companies Must Learn To Discuss The Undiscussable
The Wimbledon-IBM relationship is 30 years strong, and at the 2019 Championships, it took a digital turn for the better.
The winners: fans everywhere, whether members of the ardent tennis Twitterati or casual sports viewers.
At issue: improving on how the Wimbledon digital team and its partners package highlights from dozens of matches across 18 courts in the early stages of Wimbledon, notably in the fortnight's first week before the wheat is winnowed from the chaff, so to speak.
The solution: teaching technology, a sibling capability to IBM's heralded Watson computer, to determine what makes for a thrilling point of tennis play.
As Sam Seddon, IBM's sports and entertainment sponsorship lead in the U.K., posited to Digital Trends: "How do you break news and deliver content faster than the global media organizations? When the product you’re needing to present is 18 tennis matches happening at the same time, that’s a huge amount of content."
This artificial intelligence lent itself to these Championships in ways unlike it did in 2018, when, per Digital Trends, Wimbledon produced 20 million digital videos, 14 million of which were created by A.I. A "slightly more primitive model" gave way to 2019's version 2.0.
There have been bumps—unforced errors?—along the way, as Wimbledon's digital marketing lead, Alexandra Willis, noted to an NPR interviewer: "For a while, player gestures, it was picking up this movement—wiping your face—and thinking, is that some kind of celebration? Actually, it was the player saying, 'I want my towel.' So that's the whole beauty of this, is that we have to test it and learn it constantly."
It remains to be seen whether technology can truly replace human highlight-package editors. But IBM's A.I. tools can deliver match-specific "sizzle reels" in just two minutes after they conclude, in roughly one-tenth of the time that it takes a person to create the same multimedia asset.
Advantage: A.I. But it's not "game, set, and match" just yet. This example of high tech can't yet replace those people who know the nuances of personalities, atmospheres, etc., involved in such globally renowned arenas.
IBM has announced that its hybrid cloud services are now generally available in any environment, on any cloud, on premises or at the edge — via IBM Cloud Satellite.
Lumen Technologies and IBM have integrated IBM Cloud Satellite with the Lumen edge platform to enable clients to harness hybrid cloud services in near real-time and build innovative solutions at the edge.
IBM Cloud Satellite brings a secured, unifying layer of cloud services for clients across environments, regardless of where their data resides. This is essential to help address critical data privacy and data sovereignty requirements. Industries including telecommunications, financial services, healthcare and government can now benefit from reduced latency that comes with analyzing data securely at the edge, the company said in a statement.
It added that workloads related to online learning, remote work, telehealth services and more can now be delivered with increased efficiency and security with IBM Cloud Satellite. As workloads shift to the edge, IBM Cloud Satellite will help clients deliver low latency, while still enabling them to have the same levels of security, data privacy, interoperability and open standards found in hybrid cloud environments.
IBM said it would also extend Watson Anywhere with the availability of IBM Cloud Pak for Data as a Service with IBM Cloud Satellite. This, the company said, would give clients a flexible, secure way to run their Artificial Intelligence (AI) and analytics workloads as services across any environment, without having to manage them on their own.
Senior Vice President, Enterprise Product Management and Services at Lumen, Paul Savill, said: “With the Lumen platform’s broad reach, we are giving our enterprise customers access to IBM Cloud Satellite to help them drive innovation more rapidly at the edge.”
According to him, “Our enterprise customers can now extend IBM Cloud services across Lumen’s robust global network, enabling them to deploy data-heavy edge applications that demand high security and ultra-low latency.
By bringing secure and open hybrid cloud capabilities to the edge, our customers can propel their businesses forward and take advantage of the emerging applications of the 4th Industrial Revolution.”
As part of this collaboration, customers will be able to: Deploy applications across more than 180,000 connected enterprise locations on the Lumen network to provide a low latency experience; Create cloud-enabled solutions at the edge that leverage application management and orchestration via IBM Cloud Satellite; and Build open, interoperable platforms that give customers greater deployment flexibility and more seamless access to cloud native services like AI, IoT and edge computing.
Head of IBM Hybrid Cloud Platform, Howard Boville, said: “IBM is working with clients to leverage advanced technologies like edge computing and AI, enabling them to digitally transform with hybrid cloud while keeping data security at the forefront. With IBM Cloud Satellite, clients can securely gain the benefits of cloud services anywhere, from the core of the data center to the farthest reaches of the network.”
The market’s volatility is a perfect environment for speculators and day traders. For investors who cannot bother with price fluctuations, buying and holding forever is the best option. The best stocks to buy and hold will have a resilient business no matter what the market conditions are like.
In the worst-case scenario, interest rates are higher and inflation is rising. Investors want to avoid companies whose profit margins are under severe pressure. For example, consumer goods companies have higher input costs. They must find efficiencies and raise product prices. Companies unable to pass the higher costs to consumers will disappoint investors. Their only option is to wait for inflation to subside.
Companies that have products that customers must have are the stocks to consider owning forever in this bear market. As prices drop, investors may buy more shares to lower the average cost. In the list of stocks shown in the table below, Adobe, IBM, Oracle, and Salesforce are software stocks. They offer corporations solutions that are critical to running a business.
Data courtesy of Stock Rover
In the consumer discretionary sector, Mondelez and Proctor & Gamble have recognizable brand names.
They also have international diversification that lower investment risks. Below are seven of these bear market stocks:
|PG||Procter & Gamble||$144|
3M (NYSE:MMM) warned investors that China’s Covid-19 lockdown would cut its revenue by $300 million. In early June, however, the country lifted the lockdown gradually. This suggests that this DOW 30 stock and dividend king will recover in the quarter ahead.
3M aligned its global go-to-market model to maximize growth in the healthcare and industrial sectors. For example, it optimized its industrial model with business-to-business. In electronics, it formed an OEM direct model. And in the consumer packaged goods market, it formed a consumer business group. This will prepare 3M to focus on the distinct supply challenges in each unit.
The company prepared the workplace to support a virtual environment and an in-person model. It also embraced hybrid work. This will lead to strong team performance.
3M’s business in China is a growth opportunity. Half of its customers in China account for domestic consumption. The other half is involved with export. This includes exporting to the electronics sector.
On Wall Street, the average price target is around $153 (according to Tipranks).
Adobe (NASDAQ:ADBE) has strong enterprise customer interest levels. Companies need to invest in digital solutions.
They will rely on Adobe to supply the entire systems integration. For example, in the last quarter, Adobe’s customer wins included Bertelsmann, Hasbro (NASDAQ:HAS), Daimler AG, and the State of California.
In the second half of the year, Adobe is cautious about the macroeconomic weakness. Although it is confident that will grow its annual recurring revenue, the company is cautious about the timing of bookings. Adobe expects a net new ARR of $1.9 billion for the year.
The market’s positive response to Adobe Express is a catalyst. Potential customers will recognize the value of this product and Creative Cloud Express. They will take advantage of the freemium offering. When they demand more features, they will upgrade by paying for them.
As the economy weakens, growing customers will become a greater challenge. Fortunately, Adobe’s freemium onboarding model will increase its monetization rates.
IBM (NYSE:IBM) is amid a multi-year transformation. It led the change by acquiring Red Hat a few years ago. It accelerated its shift by developing its hybrid cloud and investing in artificial intelligence.
IBM believes that technology workloads will require multiple environments. This requires supporting public, private, and on-premise. IBM’s solutions will operate its hybrid cloud and AI on top of that.
To accelerate growth, the company shed legacy businesses. More recently, it separated its Managed Infrastructure Services business. It will rely on software and consulting to build its portfolio. It will increase its recurring revenue.
This will result in a higher operating margin in the next few years. James Kavanaugh, IBM’s Chief Financial Officer, said that IBM would generate $750 million in free cash flow annually. It will generate $35 billion in FCF cumulatively from 2022 to 2024.
Investors should expect continued demand for consulting. This accounts for 30% of IBM’s overall revenue. With the growth in the high single-digit percentage, the company should increase its dividend steadily.
Mondelez International (NASDAQ:MDLZ) announced on June 20, 2022, that it would acquire Clif Bar & Company for $2.9 billion. This is a leading maker of nutritious energy bars. Mondelez wants to grow its snack bar business. The acquisition will complement its Perfect Snacks and Grenade businesses.
The company’s top-line growth has been 4.2% for the last four years. It achieved consistent results by managing local brands, which is 55% of its portfolio. Looking ahead, it expects to increase investments to strengthen its brands in the next few years.
During the pandemic, consumers had one or more snacks a day. In the post-pandemic environment, consumer trends will not change. This will encourage Mondelez to develop its chocolate, cake, and biscuits categories.
The company is a leader in those categories. It will expand its moat by expanding globally. Previously, Mondelez cut costs to realize operating efficiencies. It will continue to have a low operating cost advantage over the competition.
Oracle (NYSE:ORCL) closed its deal to acquire Cerner for $28 billion on June 7, 2022. It wants the health IT company to expand into new markets. The healthcare industry is worth trillions of dollars. By developing a national records database, the industry benefits from getting immediate access to health records.
The sector will modernize its information systems. Governments will spend billions to Strengthen health care. This will result in Cerner becoming Oracle’s largest business.
In the fourth quarter, Oracle posted revenue of $11.84 billion, up by 5.4% YOY. Cloud revenue accounted for $2.9 billion in revenue and is up 19% YOY. Markets have concerns about a recession ahead but Oracle’s cloud systems are counter-cyclical.
For example, its enterprise resource planning solution helps customers control expenses. Netsuite, which Oracle bought in 2016 for $9.3 billion, experienced its best growth rate in the last quarter. CEO Larry Ellison said that the unit benefits from offering tools to compete more effectively.
Procter & Gamble (NYSE:PG) will have higher incremental costs in 2023. Supply chain challenges will also pressure P&G’s top and bottom lines.
The company will offset the higher costs by adjusting prices higher and seeking productivity increases.
P&G will sustain demand levels despite higher product prices. It will introduce product innovation wherever possible. Customers will see value from the price hikes. Fortunately, the company did not see retailers pushing back on the pricing changes.
Investors benefit from holding PG stock forever. The company enjoys share growth in many product categories. CFO Andre Schulten said that global aggregate market share grew in each of the past 15 months. Consumers prefer the P&G product name. The strong brand recognition will sustain the company’s demand momentum for the year.
In the near term, the end of China’s lockdown will result in a soft recovery for Proctor & Gamble. As a result, the chances are good that in the next quarter, the company will increase its guidance.
Salesforce (NYSE:CRM) is focused on multiple industries. In every sector, the software company offers products that let customers customize their needs. This resulted in strong customer loyalty and low attrition rates.
The company enjoys strong profitability because customers are willing to pay a premium. In the last few years, the company developed 12 different verticals. It leveraged its business model by growing its product offering. This included solutions like Demandware, Commerce Cloud Now, ExactTarget Marketing Cloud, and Tableau.
Salesforce’s complete portfolio offering is of high value to its customers. Furthermore, Digital transformation is a multi-year process. As they familiarize themselves with Salesforce’s core product, customers commit to more solutions along the way. The company’s profitability and profit margin will naturally expand.
To keep up with demand, Salesforce grew its employee count in the last year. In the first quarter, it added 4,000 staff. This is despite the competitive market. In anticipation of a potential economic slowdown, Salesforce will moderate its hiring rate in 2022.
On the date of publication, Chris Lau did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
About the author: Stanley Litow is Accenture professor of the practice at Duke University and a trustee at the State University of New York. He previously served as president of the IBM Foundation and is the co-author of Breaking Barriers: How P-Tech Schools Create a Pathway From High School to College to Career.
July is ending with a bang.
In the Senate, West Virginia Democrat Joe Machin’s unexpected flip gives the votes to a package of ambitious climate, energy, and tax legislation, coupled with fair prescription drug pricing. The formerly imperiled bill will significantly address the climate crisis, bring down the cost of prescription drugs and stabilize and then grow the U.S. economy. The benefits to society are massive. The legislation also appears likely to benefit some businesses by providing tax benefits for electric vehicle purchases, solar and wind technologies and a host of entrepreneurial and private sector actions in the energy space.
Many businesses in those areas can and will speak out in support. But the legislation doesn’t only benefit those businesses. Failure to act on climate change threatens us all, businesses included. Failure to act on climate change threatens the entire economy, and the future growth of all businesses, clouding America’s future.
Notably, on the same day that Manchin’s change provided a potential solution to the climate change challenge, the Senate also reached agreement on another formerly imperiled piece of legislation, in this case to address the semiconductor crisis. The nearly $300 billion Chips-Plus Act will also provide significant societal benefit. It will increase U.S. investment in vitally needed scientific research in deep partnership between the private sector and America’s colleges and universities. It will provide investments in workforce development. And it will finally give the U.S. a competitive edge with China.
As with the climate change legislation, Chips-Plus gets at the core of a significant economic challenge—the supply chain crisis—allowing the nation to move from the back of the pack to the front on chip manufacturing and innovation. That will lead to massive cost reductions and increased availability of automobiles, cell phones, and a host of other products that Americans desperately need at fair prices. This too will lead to economic growth that will benefit all Americans, especially those at the bottom of the pyramid. And as with the climate legislation, there is a corresponding benefit to businesses in the microchip industry, in the form of tax advantages that will spur added private sector investment.
That legislation passed both chambers despite opposition by many Republicans and progressive Sen. Bernie Sanders. Strong support from parts of the private sector was very helpful. But again, legislation like this not only benefits some businesses, it benefits the entire private sector. The legislation will have a positive effect on supply chains, national security and the entire economy. The private sector could have been and should have been even louder and more forceful in its support.
The challenge now is to get the climate legislation through. Democrats need to hold together all 50 of their members in the Senate, and to get it through the House with some Republicans as well. The climate change deniers, opposed to doing anything to address the global climate crisis, will try to couple their opposition with what they will charge is an unfair benefit to companies in the green jobs, solar or electric vehicle industries as being a tax giveaway. Just as with the semiconductor bill, these opposition forces are misguided and woefully short-sighted. If they are allowed to prevail, they will cloud American economic and societal interests for decades to come. That would hurt us all, including the private sector.
It can’t be left only to those industries that are obvious beneficiaries like solar, wind and automotive to speak out forcefully in favor of the climate legislation. All business leaders need to add their strong voices—along with the rest of society.
Recent polling data demonstrates that the American public has a more favorable view toward business than it has toward government, whether led by Republican or Democrats. But the comparatively positive attitude toward the private sector may not be enough to prevail here. That’s why leaders within the private sector need to take their actions to the next level. They need to show Americans that given the opportunity, they will energize their business potential to convert action into economic return. More important, they need to pledge to share that economic return in ways that provide concrete benefits to society. More business leaders must translate their verbiage and advocacy into action to narrow the income gap and address wage disparities.
When the job creators come out in force, legislators from both parties who are on the fence will likely be persuaded to act as well.
Many Americans are rightfully disturbed about the degree of division in our nation. They are concerned that as problems like climate change, healthcare, education and competition with China escalate, it appears as if necessary government action is simply not possible. This is the chance to prove that action is still possible. Strong leadership from legislators and from business leaders can get things done. It is in our interest and in the interest of our children and grandchildren to do so.
Guest commentaries like this one are written by authors outside the Barron’s and MarketWatch newsroom. They reflect the perspective and opinions of the authors. Submit commentary proposals and other feedback to email@example.com.
Wednesday, August 3, 2022
Artificial Intelligence (AI) systems are poised to drastically alter the way businesses and governments operate on a global scale, with significant changes already under way. This technology has manifested itself in multiple forms including natural language processing, machine learning, and autonomous systems, but with the proper inputs can be leveraged to make predictions, recommendations, and even decisions.
Accordingly,enterprises are increasingly embracing this dynamic technology. A 2022 global study by IBM found that 77% of companies are either currently using AI or exploring AI for future use, creating value by increasing productivity through automation, improved decision-making, and enhanced customer experience. Further, according to a 2021 PwC study the COVID-19 pandemic increased the pace of AI adoption for 52% of companies as they sought to mitigate the crises’ impact on workforce planning, supply chain resilience, and demand projection.
For these many businesses investing significant resources into AI, it is critical to understand the current and proposed legal frameworks regulating this novel technology. Specifically for businesses operating globally, the task of ensuring that their AI technology complies with applicable regulations will be complicated by the differing standards that are emerging from China, the European Union (EU), and the U.S.
China has taken the lead in moving AI regulations past the proposal stage. In March 2022, China passed a regulation governing companies’ use of algorithms in online recommendation systems, requiring that such services are moral, ethical, accountable, transparent, and “disseminate positive energy.” The regulation mandates companies notify users when an AI algorithm is playing a role in determining which information to display to them and give users the option to opt out of being targeted. Additionally, the regulation prohibits algorithms that use personal data to offer different prices to consumers. We expect these themes to manifest themselves in AI regulations throughout the world as they develop.
Meanwhile in the EU, the European Commission has published an overarching regulatory framework proposal titled the Artificial Intelligence Act which would have a much broader scope than China’s enacted regulation. The proposal focuses on the risks created by AI, with applications sorted into categories of minimal risk, limited risk, high risk, or unacceptable risk. Depending on an application’s designated risk level, there will be corresponding government action or obligations. So far, the proposed obligations focus on enhancing the security, transparency, and accountability of AI applications through human oversight and ongoing monitoring. Specifically, companies will be required to register stand-alone high-risk AI systems, such as remote biometric identification systems, in an EU database. If the proposed regulation is passed, the earliest date for compliance would be the second half of 2024 with potential fines for noncompliance ranging from 2-6% of a company’s annual revenue.
Additionally, the previously enacted EU General Data Protection Regulation (GDPR) already carries implications for AI technology. Article 22 prohibits decisions based on solely automated processes that produce legal consequences or similar effects for individuals unless the program gains the user’s explicit consent or meets other requirements.
In the United States there has been a fragmented approach to AI regulation thus far, with states enacting their own patchwork AI laws. Many of the enacted regulations focus on establishing various commissions to determine how state agencies can utilize AI technology and to study AI’s potential impacts on the workforce and consumers. Common pending state initiatives go a step further and would regulate AI systems’ accountability and transparency when they process and make decisions based on consumer data.
On a national level, the U.S. Congress enacted the National AI Initiative Act in January 2021, creating the National AI Initiative that provides “an overarching framework to strengthen and coordinate AI research, development, demonstration, and education activities across all U.S. Departments and Agencies . . . .” The Act created new offices and task forces aimed at implementing a national AI strategy, implicating a multitude of U.S. administrative agencies including the Federal Trade Commission (FTC), Department of Defense, Department of Agriculture, Department of Education, and the Department of Health and Human Services.
Pending national legislation includes the Algorithmic Accountability Act of 2022, which was introduced in both houses of Congress in February 2022. In response to reports that AI systems can lead to biased and discriminatory outcomes, the proposed Act would direct the FTC to create regulations that mandate “covered entities”, including businesses meeting certain criteria, to perform impact assessments when using automated decision-making processes. This would specifically include those derived from AI or machine learning.
While the FTC has not promulgated AI-specific regulations, this technology is on the agency’s radar. In April 2021 the FTC issued a memo which apprised companies that using AI that produces discriminatory outcomes equates to a violation of Section 5 of the FTC Act, which prohibits unfair or deceptive practices. And the FTC may soon take this warning a step farther—in June 2022 the agency indicated that it will submit an Advanced Notice of Preliminary Rulemaking to “ensure that algorithmic decision-making does not result in harmful discrimination” with the public comment period ending in August 2022. The FTC also recently issued a report to Congress discussing how AI may be used to combat online harms, ranging from scams, deep fakes, and opioid sales, but advised against over-reliance on these tools, citing the technology’s susceptibility to producing inaccurate, biased, and discriminatory outcomes.
Companies should carefully discern whether other non-AI specific regulations could subject them to potential liability for their use of AI technology. For example, the U.S. Equal Employment Opportunity Commission (EEOC) put forth guidance in May 2022 warning companies that their use of algorithmic decision-making tools to assess job applicants and employees could violate the Americans with Disabilities Act by, in part, intentionally or unintentionally screening out individuals with disabilities. Further analysis of the EEOC’s guidance can be found here.
Many other U.S. agencies and offices are beginning to delve into the fray of AI. In November 2021, the White House Office of Science and Technology Policy solicited engagement from stakeholders across industries in an effort to develop a “Bill of Rights for an Automated Society.” Such a Bill of Rights could cover subjects like AI’s role in the criminal justice system, equal opportunities, consumer rights, and the healthcare system. Additionally, the National Institute of Standards and Technology (NIST), which falls under the U.S. Department of Commerce, is engaging with stakeholders to develop “a voluntary risk management framework for trustworthy AI systems.” The output of this project may be analogous to the EU’s proposed regulatory framework, but in a voluntary format.
The overall theme of enacted and pending AI regulations globally is maintaining the accountability, transparency, and fairness of AI. For companies leveraging AI technology, ensuring that their systems remain compliant with the various regulations intended to achieve these goals could be difficult and costly. Two aspects of AI’s decision-making process make oversight particularly demanding:
Opaqueness where users can control data inputs and view outputs, but are often unable to explain how and with which data points the system made a decision.
Frequent adaptation where processes evolve over time as the system learns.
Therefore, it is important for regulators to avoid overburdening businesses to ensure that stakeholders may still leverage AI technologies’ great benefits in a cost-effective manner. The U.S. has the opportunity to observe the outcomes of the current regulatory action from China and the EU to determine whether their approaches strike a favorable balance. However, the U.S. should potentially accelerate its promulgation of similar laws so that it can play a role in setting the global tone for AI regulatory standards.
Thank you to co-author Lara Coole, a summer associate in Foley & Lardner’s Jacksonville office, for her contributions to this post.
“ABBYY (US), IBM (US), Kofax (US), WorkFusion (US), Automation Anywhere (US), Appian (US), UiPath (US), Datamatics (India), Deloitte (England), AntWorks (Singapore), Parascript (US), Hyperscience (US), OpenText (Canada), Hyland (US), Extract Systems (US), Infrrd (US), Celaton (UK), HCL Technologies (India), Kodak Alaris (UK), Rossum (UK).”
Intelligent Document Processing Market by Component (Solutions, Services), Deployment Mode (Cloud, On-Premises), Organization Size, Technology, Vertical (BFSI, Government, Healthcare and Life Sciences), and Region – Global Forecast to 2026
The Intelligent Document Processing Market size is projected to grow from USD 0.8 billion in 2021 to USD 3.7 billion in 2026, at a Compound Annual Growth Rate (CAGR) of 36.8% during the forecast period. The major factors driving the growth of the Intelligent Document Processing market include the rising need for enterprises to process large volumes of semi-structured and unstructured documents with greater accuracy and speed, increasing investments in digital transformation and the rising adoption of cloud-based document processing solutions.
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Based on component, the services segment is expected to grow at a higher CAGR during the forecast period
With rising technological advancements, the demand for intelligent document processing solutions is expected to rise. This is projected to fuel the demand for intelligent document processing services. Services offered by most intelligent document processing solution vendors include professional services and managed services. Intelligent document processing services play a crucial role for every solution vendor as clients expect seamless integration of the solution as well as training and support of the provided solution with the enterprise’s system.
Scope of Report
Market size available for years
Base year considered
2021 – 2026
Value (USD Million)
Component (Solutions And Services), Organization Size, Deployment Mode, Technology, Vertical, And Region
North America, Europe, APAC, Latin America, and MEA
ABBYY (US), IBM (US), Kofax (US), WorkFusion (US), Automation Anywhere (US), Appian (US) UiPath (US), Datamatics (India), Deloitte (England), AntWorks (Singapore), Parascript (US), Hyperscience (US), OpenText (Canada), Hyland (US), Extract Systems (US), Infrrd (US), Celaton (UK), HCL Technologies (India), Kodak Alaris (UK), Rossum (Czech Republic), InData Labs (Belarus), Ephesoft (US), IRIS (Europe), (Evolution AI (England), BIS (US), and AmyGB (India).
Based on deployment, the cloud segment is expected the segment to grow at a higher CAGR during the forecast period
Cloud deployment offers various benefits to organizations. These benefits include easy availability and scalability. The cloud deployment mode also provides multiple benefits, including reduced operational costs and hassle-free deployments. The cloud deployment for intelligent document processing while using different disruptive technologies is expected to grow with the increasing awareness of the benefits of cloud-based solutions. The cost-effectiveness and scalability of cloud deployment are expected to boost the growth of cloud-based intelligent document processing solutions.
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Major Intelligent Document Processing vendors include ABBYY (US), IBM (US), Kofax (US), WorkFusion (US), Automation Anywhere (US), Appian (US) UiPath (US), Datamatics (India), Deloitte (England), AntWorks (Singapore), Parascript (US), Hyperscience (US), OpenText (Canada), Hyland (US), Extract Systems (US), Infrrd (US), Celaton (UK), HCL Technologies (India), Kodak Alaris (UK), Rossum (Czech Republic), InData Labs (Belarus), Ephesoft (US), IRIS (Europe), (Evolution AI (England), BIS (US), and AmyGB (India). These market players have adopted various growth strategies, such as partnerships, collaborations, and new product launches, to expand have been the most adopted strategies by major players from 2019 to 2021, which helped companies innovate their offerings and broaden their customer base.
ABBYY (US) is one of the leading vendors in the Intelligent Document Processing market. The company offers diverse solutions for business processes, such as enterprise automation, accounts payable automation, process intelligence, content intelligence, customer experience management, robotic process automation, mobile capture, document archiving, forms processing, and document classification. ABBYY offers FlexiCapture, FlexiCapture for Invoices, FineReader, FineReader Engine, Vantage, and Mobile Capture in the intelligent document processing market. These products use NLP, ML, and advanced recognition capabilities to handle unstructured documents. The company focused on both the organic and inorganic growth strategy to enhance its position in the Intelligent Document Processing market. For instance, in March 2021, ABBYY launched the no-code platform Vantage 2 and AI Marketplace to reimagine digital transformation. Vantage 2 delivers ready-to-use AI skills for intelligent automation. The ABBYY Marketplace allows users to incorporate cognitive skills to accelerate their automation initiatives. In October 2020, ABBYY acquired Pericom Singapore to expand its footprint in the Asia Pacific region. The acquisition strengthens ABBYY’s presence in the Asia Pacific region.
Kofax (US) is another provider of intelligent document processing solutions and service across the globe.
The company provides a diverse portfolio of products and services. It provides solutions across various industries, including banking, government, insurance, and transport and logistics. Kofax’s Intelligent Automation software platform helps organizations transform information-intensive business processes, reduce manual work and errors, minimize costs, and Strengthen customer engagement. The company majorly focuses on both organic and inorganic growth strategies to Strengthen its place in the intelligent document processing market. For instance, in March 2020, Kofax enhanced the Kofax ControlSuite, by launching a new update. The update provides seamless integration with Kofax TotalAgility, providing more comprehensive cognitive capture, transformation, and process automation capabilities to ControlSuite users. In April 2020, Kofax and ImageTech Systems, Inc. launched a loan processing solution providing financial institutions with cognitive capture, software robots and process orchestration capabilities to expedite loan applications submitted under the Coronavirus Aid, Relief, and Economic Security (CARES) Act Paycheck Protection Program (PPP).
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New Jersey, USA — (SBWIRE) — 07/21/2022 — A Latest intelligence report published by AMA Research with title "Cloud Computing in Banking Market Outlook to 2027.A detailed study accumulated to offer Latest insights about acute features of the Global Cloud Computing in Banking market. This report provides a detailed overview of key factors in the Cloud Computing in Banking Market and factors such as driver, restraint, past and current trends, regulatory scenarios and technology development. A thorough analysis of these factors including economic slowdown, local & global reforms and COVID-19 Impact has been conducted to determine future growth prospects in the global market.
Cloud computing is the delivery of computing service such as servers, storage, databases, networking, software, analytics, and the Internet. Companies offering these computing services are called cloud providers. The cloud computing has offered number of benefits to various industries such as banking. It makes things easier like interoperability, secure storage, 24A—7 up time, and others. Also, it creates an opportunity for bankers to connect with their users directly. Moreover, it is an easy technique to deploy and integrate with all the services of the bank system.
Major Players in This Report Include,
Amazon Web Services (United States),Google (United States),Microsoft Azure (United States),IBM (United States),Aliyun (United States),Salesforce (United States),Oracle (United States),SAP (Germany),Workday (United States),Adobe (United States),Cisco Systems (United States),EMC Corporation (United States)
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– Rising Adoption of Hybrid Cloud Services
– Benefits Such as Cost Effective, Feasibility, Reliability, and Productivity
– Increased Return on Investments with Low Infrastructure and Storage Costs
– Growing Adoption by Large, Medium and Small Enterprises
– Digital Transformation among the Industries
The Global Cloud Computing in Banking Market segments and Market Data Break Down are illuminated below:
by Deployment (Public cloud, Private cloud), Type of cloud computing (Infrastructure as a Service (IaaS), Platform as a Service (PaaS), Software as a service (SaaS)), Organisation size (SMEs, Large enterprises), Workload (Application development and testing, Data storage and backup, Resource management, Orchestration services, Others)
Cloud Computing in Bankingthe manufacturing cost structure analysis of the market is based on the core chain structure, engineering process, raw materials and suppliers. The manufacturing plant has been developed for market needs and new technology development. In addition, Cloud Computing in Banking Market attractiveness according to country, end-user, and other measures is also provided, permitting the reader to gauge the most useful or commercial areas for investments. The study also provides special chapter designed (qualitative) to highlights issues faced by industry players in their production cycle and supply chain. However overall estimates and sizing, various tables and graphs presented in the study gives and impression how big is the impact of COVID.
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Geographically World Cloud Computing in Banking markets can be classified as North America, Europe, Asia Pacific (APAC), Middle East and Africa and Latin America. North America has gained a leading position in the global market and is expected to remain in place for years to come. The growing demand for Cloud Computing in Banking markets will drive growth in the North American market over the next few years.
In the last section of the report, the companies responsible for increasing the sales in the Cloud Computing in Banking Market have been presented. These companies have been analyzed in terms of their manufacturing base, basic information, and competitors. In addition, the application and product type introduced by each of these companies also form a key part of this section of the report. The latest enhancements that took place in the global market and their influence on the future growth of the market have also been presented through this study.
– Comprehensive overview of parent market& substitute market
– Changing market dynamics in the industry (COVID & Economic Impact Analysis)
– In-depth market segmentation (Trends, Growth with Historical & Forecast Analysis)
– latest industry trends and development activity
– Competitive landscape (Heat Map Analysis for Emerging Players & Market Share Analysis for Major Players along with detailed Profiles)
Strategic Points Covered in Table of Content of Cloud Computing in Banking Market:
Chapter 1: Introduction, market driving force product Objective of Study and Research Scope the Global Cloud Computing in Banking market
Chapter 2: Exclusive Summary – the basic information of the Global Cloud Computing in Banking Market.
Chapter 3:Changing Impact on Market Dynamics- Drivers, Trends and Challenges & Opportunities of the Global Cloud Computing in Banking; Post COVID Analysis
Chapter 4: Presenting the Global Cloud Computing in Banking Market Factor Analysis, Post COVID Impact Analysis, Porters Five Forces, Supply/Value Chain, PESTEL analysis, Market Entropy, Patent/Trademark Analysis.
Chapter 5: Displaying the by Type, End User and Region/Country 2016-2021
Chapter 6: Evaluating the leading manufacturers of the Global Cloud Computing in Banking market which consists of its Competitive Landscape, Peer Group Analysis, BCG Matrix & Company Profile
Chapter 7: To evaluate the market by segments, by countries and by Manufacturers/Company with revenue share and sales by key countries in these various regions (2021-2027)
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Key questions answered
– Who are the Leading key players and what are their Key Business plans in the Cloud Computing in Banking market?
– What are the key concerns of the five forces analysis of the Cloud Computing in Banking market?
– What are different prospects and threats faced by the dealers in the Cloud Computing in Banking market?
– What possible measures players are taking to overcome and stabilize the situation?
Thanks for studying this article; you can also get individual chapter wise section or region wise report version like North America, Middle East, Africa, Europe or LATAM, Asia.
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