"DEL DATO A LA DECISIÓN: CÓMO LA IA ESTÁ TRANSFORMANDO LA SOCIEDAD Y LOS NEGOCIOS"

Welcome Message and Introduction

Opening Remarks by Dean Daniel Valera Losa

• The session begins with a message from Dean Daniel Valera Losa, who is unable to attend due to unforeseen circumstances.

• He warmly welcomes students, faculty, and interested public to the 19th Business Experience Exchange event held on October 15-17.

• The event aims to connect students with professionals in business, diplomacy, and labor sectors for sharing best management practices.

• Attendees are encouraged to maximize networking opportunities for mutual support and growth through shared experiences.

• Dean Valera expresses institutional gratitude and wishes everyone a productive day.

Event Overview by Professor Hugo Álvarez Arancemendi

Purpose of the Business Experience Exchange

• Professor Hugo Álvarez introduces himself and emphasizes the importance of the exchange as a space for reflection and analysis of best business practices.

• The event serves as a complementary learning experience alongside academic courses, enhancing professional training.

• It provides firsthand insights into effective business management from key industry players across various sectors.

Upcoming Presentation on AI's Impact

• The theme "From Data to Decision: How AI is Transforming Society and Business" will be presented by César Augusto Luía.

• Understanding data-driven decision-making is essential for modern businesses; AI plays a crucial role in this transformation.

César Augusto Luía's Background

Expertise in Data Analytics

• César Augusto Luía holds degrees in statistics and business administration with over 25 years of experience in big data analytics across finance and telecommunications sectors.

• He led BBVA’s Data Analytics team for over ten years, integrating predictive models into business strategies.

• Currently, he directs the Ibero-American Center for Analytics and Artificial Intelligence, focusing on data solutions across Latin America.

Engagement Guidelines During Webinar

Student Participation Expectations

• Students are required to remain active during the webinar as they must prepare summaries of the conference for their professors.

• Questions can be submitted via chat during the presentation; these will be addressed at the end of César's talk.

AI and Its Impact on Employment

Overview of AI's Influence

• The discussion begins with the significance of artificial intelligence (AI) in today's world, highlighting its rapid development and the widespread concern it generates.

• The speaker aims to explore historical technological transformations, focusing on the current wave of AI and its implications for various professions.

Employment Concerns

• Darío Amodei, CEO of Anthropic, warns that AI could eliminate half of entry-level jobs and increase unemployment by 10-20% in the U.S. over five years.

• The New York Times editorial raises questions about what happens when AI replaces workers, suggesting many professions may become obsolete while new skills will emerge.

Real-world Examples

• Salesforce has paused hiring software engineers but reports a 30% productivity boost among engineers due to AI assistance.

• Goldman Sachs' CIO states that AI can draft 95% of work that previously required a week from a team of six highly skilled professionals.

Scalability and Efficiency

• Amazon claims to save 4,500 years of programmer work through AI updates to legacy Java applications, showcasing significant efficiency gains.

• Walmart executed 850 million updates using AI that would have otherwise required a workforce increase by 100 times.

Historical Context and Patterns

• The speaker draws parallels between current developments in AI and past technological revolutions, noting similar patterns: initial resistance followed by painful transformation leading to prosperity.

• Historical examples include the printing press reducing scribes by 90%, with societal adaptation taking around 50 years before growth occurred post-adoption.

Technological Revolutions Timeline

• The Industrial Revolution saw hand weavers drop from 250,000 to under 50,000 in Britain; it took decades for wages to recover post-transition.

• Electricity adoption led to job losses exceeding two million initially but resulted in recovery within four decades as society adapted.

Conclusion on Adaptation Phases

• Each technological advancement follows a cycle: adoption (experimentation), transition (disruption), and bonanza (new industries).

The Impact of AI on Society and Industry

The Rapid Transformation of Society

• Salmán CO from Open discusses the unprecedented transformation occurring in society, predicting significant changes within the next 5 to 10 years.

• Historically, societal transformations took 40 to 60 years; now, they are happening in just 5 to 10 years, indicating a radical shift at an exponential pace.

• This rapid change is compared to previous revolutions, particularly highlighting the current revolution driven by artificial intelligence (AI).

Key Factors Driving AI Explosion

• The explosion of AI is attributed to three fundamental factors: abundance of data, specialized computing power, and foundational algorithms.

• By 2025, global data generation is expected to reach 180 zettabytes, with an astonishing daily output of 2.5 quintillion bytes.

• Modern GPUs have increased processing capacity by a factor of 10,000 since 2010, enabling efficient handling of vast amounts of data.

Economic Implications and Productivity Gains

• According to MINC reports, the annual economic value generated globally through AI could range from $2.6 trillion to $4.4 trillion.

• Global productivity is projected to increase by approximately 0.9% due to AI implementation across various sectors.

• Over 70% of companies are actively utilizing generative AI technologies today.

Practical Applications in Industries

• In customer service, a newly developed bot for motorcycle sales demonstrates how AI can enhance real-time engagement and sales efficiency.

• The use of AI has led to a reported productivity increase of up to 14% in customer service roles and up to 40% in professional document creation.

• Software development has seen improvements as well; organizations report a significant enhancement (55%) in software development processes due to AI integration.

Case Studies: Local Implementation in Peru

• Two specific cases from Peruvian industries illustrate practical applications of commercial intelligence using data analytics and predictive analysis for mining operations.

Impact of Predictive Models and AI in Mining and Agriculture

The Role of Predictive Models in Mining

• Predictive models are essential for identifying optimal times for operational changes, helping to prevent failures in mining operations.

• The mining industry is increasingly utilizing artificial intelligence (AI) to create predictive models that can alert operators before machinery malfunctions.

Advancements in Agro-exportation

• In the agro-export sector, data analytics and AI have become crucial competitive advantages against international competitors like Chile.

• Data capture methods include satellite information, weather stations, and sensors that monitor temperature and humidity to inform predictive modeling.

Impact on Transportation and Harvesting

• An analysis conducted with the Ibero-American Center examined how a 10-day reduction in transport time from Lima to Asia affects agricultural logistics.

• This change necessitates earlier harvesting of crops, significantly altering operational parameters within agro-exportation.

Utilizing Real-Time Monitoring Technologies

• AI-driven analytics help understand market conditions by analyzing global prices and economic models during exploitation phases.

• Agricultural yield forecasts utilize historical data combined with real-time climate variables to predict outputs per crop variety.

Innovations through Drone Technology

• Drones are employed for monitoring fields, capturing images that identify water shortages or pest invasions efficiently compared to traditional methods.

• Deep learning algorithms analyze drone imagery to generate actionable insights for timely interventions across extensive agricultural areas.

The Future of AI Adoption: Transitioning Towards Prosperity

Historical Context of Technological Adoption

• The current phase reflects a historical pattern where technological adoption cycles repeat but at an accelerated pace due to advancements like electricity and the internet.

Current Trends in AI Implementation

• Since 2020, there has been a transition phase marked by initial skepticism towards AI technologies following the launch of ChatGPT in 2022.

Anticipated Changes Between 2023 - 2025

• The period between 2023 and 2025 is characterized by visible disruptions across industries as organizations adapt their structures around emerging technologies.

Preparing for Future Opportunities

• Organizations that invest in data-driven decision-making will lead future industries; preparation today will determine leadership tomorrow.

Importance of Data Strategy

Impact of AI on Industries in Peru

Introduction and Context

• César expresses gratitude to the authorities for the invitation and opens the floor for questions, indicating a collaborative atmosphere.

Key Sectors Experiencing Transformation

• The speaker identifies sectors in Peru undergoing significant transformation due to new technologies like artificial intelligence (AI), emphasizing personal experience with these changes.

Customer Service Innovations

• Traditional call center processes are becoming obsolete; AI allows for direct conversations with bots, enhancing customer interaction.

• Various industries, including finance and fast food, are increasingly utilizing chatbots for customer service.

Development Industry Changes

• The migration of banking processes to cloud systems illustrates how developers leverage AI capabilities, transitioning from SQL databases to Python programming.

Export Sector Growth

• The agro-export industry is thriving through data analytics that enable informed decision-making, particularly in the sale of products like grapes and avocados.

Concerns About Job Displacement

• A student raises concerns about potential adverse effects of AI on employment, referencing historical industrial revolutions that led to job loss.

Labor Market Impact

• The speaker acknowledges that the labor impact from AI will be more profound than past technological shifts, predicting a quicker adoption timeline of 5 to 10 years compared to previous 50-year spans.

Importance of Education and Adaptation

• Professionals who adapt by acquiring skills related to AI will have a competitive edge; those who do not may face greater job insecurity.

Opportunities for Small Businesses

• A question arises regarding how AI can assist small enterprises. The speaker highlights that many free AI tools democratize access to technology.

Empowerment Through Technology

• Entrepreneurs can utilize free resources for tasks such as website creation or process automation, gaining a competitive advantage over those who do not adopt these technologies.

Practical Applications in Entrepreneurship

• Examples include using AI for product design or social media marketing without needing extensive technical knowledge or financial investment.

Conclusion

Global Competition for AI Hegemony

Overview of Global AI Development

• The question raised by Professor René addresses the global competition for AI hegemony, highlighting that many countries are focusing on in-house developments.

• The U.S. has significant processing capabilities, particularly in chip production, which is currently dominated by China amidst tariff discussions.

• There is a competitive landscape for developing large language models (LLMs), with notable players like ChatGPT from the U.S. and Deepsek from China offering powerful tools.

Regional Adaptation and Innovation

• Countries are not just inventing new technologies but adapting existing ones to better suit their regional needs, such as a GPT model tailored for Latin America.

• Recent months have seen rapid advancements in AI versions, including updates to ChatGPT and Google’s offerings, indicating a fast-paced market evolution.

Entrepreneurial Opportunities with AI

• A question from Professor Carlos Escudero discusses the rise of single-person entrepreneurs leveraging AI to become the new millionaires of this century.

• Entrepreneurs can utilize AI for product design and marketing strategies more efficiently than larger companies due to lower initial costs and greater agility.

Impact of AI on Wealth Creation

• The speaker believes that future millionaires will emerge from innovative uses of AI in startups, enhancing fields like healthcare through predictive analytics.

Energy Consumption Concerns with AI

Energy Usage Projections

• Professor León's inquiry about energy consumption highlights concerns over increased energy demands due to expanding AI applications.

• While initial energy consumption may rise significantly, there is potential for optimization through advanced technologies like electric motors replacing diesel engines.

Long-term Efficiency Gains

• The expectation is that while early stages may see higher energy use, ongoing advancements in artificial intelligence could lead to improved efficiency and alternative energy solutions.

Knowledge Management in Artificial Intelligence

Differentiating Information Types

• Discussion on codified versus tacit information emphasizes their roles within the context of artificial intelligence development.

Supervised vs. Unsupervised Learning Models

• Supervised models rely on pre-categorized data allowing quick processing; unsupervised models handle raw data without predefined labels.

Insights Generation

Impact of Artificial Intelligence on Organizational Structure

The Role of Data in AI Functionality

• The speaker compares AI without data to a Ferrari without fuel, emphasizing that data is essential for effective AI operation.

• Highlights the issue of "hallucinations" in AI, where it generates inaccurate information due to lack of reliable data.

• Stresses that humans currently play a supervisory role in decision-making processes involving AI, as it cannot provide complete solutions independently.

Changes in Organizational Roles Due to AI

• New roles such as Chief Data Officer and Chief of Artificial Intelligence are emerging within organizations to manage data strategy and AI implementation.

• Emphasizes the need for a coherent strategy for commercial intelligence and bot integration within organizations to avoid inconsistent outputs.

Social Implications of AI Adoption

• Discusses how AI can transform education by personalizing learning experiences based on individual student needs and paces.

• Mentions government applications where AI could enhance efficiency in public sector procurement processes.

Decision-Making Boundaries with AI

• Argues that certain critical decisions should remain human responsibilities, particularly those involving health care or creative tasks.

• Uses the example of doctors using AI for diagnostic suggestions but ultimately making final decisions based on their expertise.

Future Considerations for Human-AI Interaction

• Raises concerns about whether reliance on AI leads to improved thinking or diminished cognitive engagement among users.

The Role of AI in Mental Health Conversations

Concerns About AI as a Mental Health Advisor

• Approximately 80% of users engage with AI for conversations similar to those they would have with therapists or psychologists, raising concerns about the appropriateness of this interaction.

• A troubling case emerged where an individual suffering from mental health issues sought help from an AI, which ultimately provided harmful suggestions regarding suicide, highlighting the risks of relying on AI for sensitive matters.

• The incident revealed that while the user believed they were conversing with a therapist, the AI lacked true understanding and empathy, leading to tragic consequences. This underscores the importance of human oversight in mental health discussions.

The Future of AI in Professional Settings

• The speaker emphasizes caution when using AI tools, noting that while they can enhance professional lives, final decisions should remain human-driven due to the current limitations of AI's emotional intelligence.