​ Bringing Artificial Intelligence to the Enterprise

​ Chad Meley, VP of Artificial Intelligence Product Marketing at Teradata

 AI Is Happening in the Enterprise

PayPal John Deere Lowe’s JP Morgan Wells Fargo Walmart

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 Waves of Industry Disruption Powered by AI
Financial Services

Incumbents

Challengers

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 Waves of Industry Disruption Powered by AI
Auto Manufacturing

Incumbents

Challengers

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 AI makes complex AI improves
decisions productivity

Incorporates
traditional data sets

Improved financial fraud Chatbots to improve call

detection and reduced center experience
costly false positives

Leverages previously
intractable data sets Predict costly unplanned
downtimes by analyzing
maintenance records,
sensors AND asset imagery
Computer vision
improves operational
efficiencies in logistics

5 © 2017 Teradata
 Business Challenges Faced

Only 40% of fraud caught

99.9% of cases investigated

Were not fraud

Getting worse because of new payment

methods and fraudster sophistication

6 Copyright 2017 Teradata

Dramatic Improvement in Fraud Detection
Deep •  50% increase in
Learning fraud detection
rate

•  60% decrease in
True Positive Rates

false positive rate

Classic Rules •  From design to

Machine Engine models in
Learning production in 8
sprints

7 © 2017 Teradata
False Positive Rates
 Convolutional Neural Networks

In machine learning, a convolutional neural network (CNN) is a class of deep, feed-

forward artificial neural networks that has successfully been applied to analyzing visual
imagery.

CNNs use relatively little pre-processing compared to other image classification

algorithms. This means that the network learns the filters that in traditional algorithms were
hand-engineered. This independence from prior knowledge and human effort in feature
design is a major advantage.

They have applications in image and video recognition, recommender

systems and natural language processing.

8 © 2017 Teradata
 How Can We Create an Image From Bank Transactions?
Add correlated features Image size is:
Input Output in a clock-wise manner [10 x 3, 50 x 3, 1]

Raw Features N

t0 X_0, X_1, ... X_n X_3 X_41 X_5 X_31 X_42 X_40 X_49 X_3 X_15 X_1 X_26 X_9
...
t1 X_0, X_1, ... X_n t0 X_37 X_0 X_30 X_16 X_1 X_32 X_31 X_2 X_4 X_17 X_n X_40

X_10 X_31 X_29 X_2 X_35 X_15 X_40 X_28 X_1 X_2 X_28 X_35
t2 X_0, X_1, ... X_n dt
X_3 X_41 X_5 X_31 X_42 X_40 X_49 X_3 X_15 X_1 X_26 X_9
...

...
t1 X_37 X_0 X_30 X_16 X_1 X_32 X_31 X_2 X_4 X_17 X_n X_40

ts X_0, X_1, ... X_n X_10 X_31 X_29 X_2 X_35 X_15 X_40 X_28 X_1 X_2 X_28 X_35
dt

...

...
...

...
Top k Features Correlation X_3 X_41 X_5 X_31 X_42 X_40 X_49 X_3 X_15 X_1 X_26 X_9
...
ts X_37 X_0 X_30 X_16 X_1 X_32 X_31 X_2 X_4 X_17 X_n X_40

X_10 X_31 X_29 X_2 X_35 X_15 X_40 X_28 X_1 X_2 X_28 X_35

(examples of k: client location, merchant location, size of transaction,

9 © 2017 Teradata relative size of transaction, frequency of transactions, others….)
 Inside the model

Non-fraud Fraud

64 Filters
Activations
After the CNN
Residual Blocks

10 © 2017 Teradata
 Improving Operational Excellence with Artificial Intelligence (AI)
Major Logistics Company

Business challenge Solution Benefits

•  Small percentage of packages wind •  Designing and deploying AI assisted •  Reduction of warehouse search window
up as “orphaned” solution, image to image approach. from weeks to minutes.

•  Reducing resolution time on
orphaned packages currently
costing the company tens of millions
per year
•  Improving business and technical
processes through research and
assessment to accelerate business results.
•  Increasing progress with active learning
on AI.
•  Orphaned matching on target to
achieve 90% successful match rate by
year two.
•  Improvement in customer satisfaction due
to a quick resolution of lost and found
cases.

Tools &
Technologies

VELOCITY ™ – Artificial Intelligence

Strategy
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11 © 2017 Teradata
 Greater Operational Efficiencies with Deep Learning
State run postal service

Business challenge Solution Benefits

•  115M parcels shipped per year; 7.5m
parcels are plastic bags but only a small %
are sorted correctly into an automatic roll
cage container
•  Key challenge:
•  Identify plastic sacks from images &
measure size
•  Several techniques used to process and •  Processed around 10K images in an
transform 10K images automated pipeline
•  Pre-trained models vs. new Models were •  Achieved 80% accuracy on testing dataset
compared and results benchmarked; for identification of plastic bags
•  Keras with Theano backend was used for
the final results due to more user-friendly
interface and limited time for the project

•  Automate sorting to automatic roll cage

container

•  Optimize load/unload of parcels & number

of containers

Tools and Technologies

VELOCITY ™ – Artificial Intelligence Strategy

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 Customer Intimacy Enabled by AI
Global Mobile Communication Provider
Business challenge
▪  Reducing cost of customer-driven
communication
▪  Developing solutions with AI – machine
intelligence and natural language
processing.
Tools & Technologies
VELOCITY ™ – Artificial Intelligence Strategy
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Solution Benefits
▪  Building an AI solution to replicate 332 ▪  Reducing the customer interaction costs
types of queries in 2 languages (English & with agents.
Roman Urdu and their mixture).
▪  Decreasing resource driven challenges as
▪  Delivering user interface for interacting virtual agent able to work 24/7.
with a virtual agent and host the solution
▪  Scalable system enabling future use case
on Teradata Azure server for testing.
projects.
▪  Developing a robust solution easy to
extend to other response types.
 Data For Predictive Maintenance
Structured Data Unstructured Data
•  Time Series •  Text
•  Events •  Image
•  Graph •  Sound

14 © 2017 Teradata
 What is AI?
•  ”Artificial intelligence" is
applied when a machine
mimics "cognitive"
functions such as
"learning" and "problem
solving.”
•  Artificial intelligence is technology •  AI generally refers to the
that appears to emulate human
performance typically by
learning, coming to its own
conclusions, appearing to
understand complex content,
engaging in natural dialogs with
people, enhancing human
cognitive performance or
replacing people on execution of
non routine tasks.
ability of machines to
exhibit human-like
intelligence—for example,
solving a problem without
the use of hand-coded
software containing
detailed instructions.

15 © 2015 Teradata
 AI Evolution

ARTIFICIAL
INTELLIGENCE MACHINE
LEARNING DEEP
Early theory and
accomplishments LEARNING
Predictive
stirs interest and
accuracy
excitement Allows more-complex problems to
improves with
be tackled, and others to be solved
more data
with higher accuracy, with less
K-means clustering, cumbersome manual fine-tuning
Bayesian Networks,
Recurrent Neural Networks,
Support Vector Convolutional Deep Neural
Machines Networks, Generative Adversarial
Network, Deep Feed Forward

1950s mid 2000s mid 2010s

16 © 2017 Teradata
 What makes Deep Learning so intriguing?

•  Ability to create value with little or

no domain knowledge required
•  Ability to incorporate data from
across multiple, seemingly
unrelated sources
•  Ability to tolerate very noisy data

17 Copyright 2017 Teradata

 AI Technology Landscape
SaaS Analytics AI APIs Frameworks for AI Model
Development and Execution
Visual Vision

Assistive Speech

Keras

Operations Language

Proprietary cloud APIs. Software frameworks.

Pre-packaged Applications
Leaders are open source.
Vendor-owned Models Models built on Enterprise Data

18 Copyright 2017 Teradata

 AI Project Execution Options
SaaS Analytics AI APIs Custom AI
Development
Models Commodity, limited One size fits all Tailored & Unique
configuration
Data Least common Data...not informed Leverage all data,
denominator by enterprise data including enterprise
Business Process Disconnected Limited Fully Integrated
Integration
Deployment Isolated SaaS Dependent PaaS Any (Hybrid)

AI Expertise None Minimal Significant

Implementation Low cost & low risk Moderate cost & High cost & high risk
moderate risk
Competitive Parity Tactical Strategic & Game
Advantage “me too” Changing

19 Copyright 2017 Teradata

 Challenges Delivering Enterprise AI
AI and Deep Learning initiatives introduce Unique and Challenging Requirements

Strategic Technology Operational Data Talent

•  Significant business •  Academic code •  Transparency of •  Governance and •  Shortage of AI talent

processes change •  Specialized models quality •  Immature best
•  Broad hype and hardware •  Integration of AI with •  Requires curated, practices in all
interest •  Support gaps for broader ecosystem high value data at required capabilities
•  Limited range of open source •  Deployment of scale •  AI change
applications to date •  Poor interoperability large-scale GPU •  Need to blend with management
clusters high velocity data emerging
•  Performance and •  Training data
scale curation

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21 © 2017 Teradata
 ​ Tips for a Successful Enterprise AI Initiative

•  Get aligned on AI use cases and roadmap

•  Seek early wins to get momentum and solidify stakeholder interest
•  Acknowledge and address skill and capability gaps
•  Rethink processes that were originally designed pre-AI

© 2015 Teradata
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 “
Over the next decade, AI won’t replace
managers, but managers who use AI
will replace those who don’t.

’’
HBR July 2017

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 www.teradata.com/Insights/Artificial-Intelligence

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24 Copyright 2017 Teradata