Major conceptual advances that power economic growth seem to occur about 2-3 times a century. Previous waves, e.g., the steam engine and its descendants, mechanized muscle power. Connected intelligence (aka Industry 4.0) is the latest and most transformative because it augments and automates mental power—the ability to use our brains to understand and shape our environments — and is accelerating exponentially. Connected intelligence arises at the intersection of big data, cloud, mobility, social computing, the internet of things, and artificial intelligence.
2. Major conceptual advances that power economic growth seem to occur
about 2-3 times a century. Previous waves, e.g., the steam engine and its
descendants, mechanized muscle power. Connected intelligence (aka
Industry 4.0) is the latest and most transformative because it augments and
automates mental power—the ability to use our brains to understand and
shape our environments — and is accelerating exponentially.
2This content included for educational purposes.
6. We are at the beginning of the most
transformative revolution ever Industry 4.0
Industry 4.0
Connected intelligence
`1
Industry 1.0
Agriculture
Industry 2.0
Industrial
Industry 3.0
Information Age
Source: Publicis•Sapient
This content included for educational purposes. 6
7. Computers and other digital advances are doing for mental power – the ability to
use our brains to understand and shape our environments – what the steam
engine and its descendants did for muscle power.
7
Erik Brynjolfsson, Director, MIT Initiative on the Digital Economy,
Massachusetts Institute of Technology, USA
This content included for educational purposes.
8. The speed of current breakthroughs has no historical precedent. When compared
with previous industrial revolutions, the Fourth is evolving at an exponential rather
than a linear pace. Moreover, it is disrupting almost every industry in every country.
8
Klaus Schwab, Founder & Executive Chairman, World Economic Forum
This content included for educational purposes.
9. “As a society, we are entering uncharted territory.”
- Marc Benioff,
Salesforce CEO
18 January 2016
Industry 1.0
Agriculture
Industry 3.0
Information Age
Industry 4.0
Connected
Intelligence
150 Years
75 Years
40 Years
?? Years
Industry 2.0
Industrial
Source: Publicis•Sapient
“As a society, we are
entering uncharted
territory.”
- Marc Benioff,
Salesforce CEO
18 January 2016
9This content included for educational purposes.
12. 12
ERA INFORMATION AGE CONNECTED INTELLIGENCE AGE
Time span 1970 to 2010 2010 to 2030
Technology users Thousands to millions to hundreds of millions of users Billions of users, trillions of things, everywhere
Products Designed for the enterprise only to designed for enterprise first
and then “downsized" for the consumer
Designed for the consumer and Internet of everything,
enhanced for the enterprise
Devices Mainframe, Minicomputer & Terminals to LAN/Internet, Client/
Server and personal computer
Mobile Broadband, Cloud Services, Big Data/Analytics, Social
Business, Mobile Devices
Applications Hundreds of programs to tens of thousands of apps Millions of apps
Focus Business recordkeeping to enterprise core applications to
personal apps that digitized types of information and
computerized routine tasks to user-friendly GUIs, Internet, and
mobile connected population
Big data platforms, machine learning, AI, robotics, 3D printing,
Internet of Things, cognitive systems, next generation security,
and ubiquitous natural user interfaces
Data 10 Petabytes in 1985 to 1 zettabyte of data in 2010 40 zettabytes by 2020, to 1 Yottabyte by 2030
World population 3.7B to 6.9B people. From $5,000 to $10,000 per capita GDP. 6.9B to 8.5B people. From $10,000 to $14,000 per capita GDP.
World GDP $18T to $68T $68T to $119T
World ICT GDP $270B in 1970 to $4T in 2010 $4T in 2010 to $13T in 2030
ICT as % World GDP 1.5% in 1970 to 6% in 2010 6% in 2010 to 11% in 2030
Sources: World Economic Forum, NASDAQ, Forbes Global, BAML, McKinsey, Forrester, Frost & Sullivan, Gartner, IDC, Analysis Group, BCC
Research, Rubin Worldwide, Tractica, CB-Insights, Publcis.Sapient, Statista, Wikibon, TechEmergence, Venture Scanner
This content included for educational purposes.
16. This content included for educational purposes.
Huge drivers exist
for transformation.
• Technologies that will change the world 1000X.
• Smart processes to power mul[-trillion dollar
economic expansions.
• 50X increases in knowledge worker produc[vity
aainable by 2030.
• Intelligent ci[es and enterprise ecosystems
compe[ng to become vibrant cultural and
economic centers.
16
17. Connected intelligence arises
at the intersection big data,
cloud, mobility, social computing,
the internet of things,
and artificial intelligence.
CLOUD
BIG
DATA
MOBILITY
IOT
AI Connected
intelligence
17This content included for educational purposes.
21. This content included for educational purposes. Source: PwC
Distributed electronic ledger that uses software algorithms to record and
confirm transactions with reliability and anonymity. The record of events
is shared between many parties and information once entered cannot be
altered, as the downstream chain reinforces upstream transactions.
Blockchain
Example Use Cases
• Provenance / traceability
• Asset registration / ownership
• Trade finance
• Record management
• Identity management
• Voting
• Peer to peer transactions
• Supply chain management
• Smart contracting
Air- or water-based devices and vehicles, for example, Unmanned Aerial
Vehicles (UAV), that fly or move without an onboard human pilot. Drones
can operate autonomously (via on-board computers) on a predefined flight
plan or be controlled remotely.
Drones
Example Use Cases
• Construction site management
• Forestry management
• Facility inspection (wind
turbine, oil rig, etc)
• Insurance claim validation
• Precision farming
• Infrastructure inspections
• Railway safety
• Cargo delivery
Network of objects – devices, vehicles, etc. – embedded with sensors,
software, network connectivity and compute capability, that can collect
and exchange data over the Internet. IoT enables devices to be connected
and remotely monitored or controlled. The term IoT has come to represent
any device that is now “connected” and accessible via a network connection.
The Industrial IoT is a subset of IoT and refers to its use in manufacturing
and industrial sectors.
Internet of Things (IoT)
Example Use Cases
• Data integration and analytics
• Connected service parts management
• Remote service
• Real time market insights
• Flexible billing and pricing models
• Inventory and material tracking
• Real-time asset monitoring
• Connected operational intelligence
• Customer self-service
• Usage and performance benchmarking
Electro-mechanical machines or virtual agents that automate, augment or assist
human activities, autonomously or according to a set of instructions – often
a computer program.
Robots
Example Use Cases
• Service industry
• Automation of predictable tasks
• Data management
• Manufacturing
• Hazardous industries
• Hotels and tourism
Additive manufacturing techniques used to create three-dimensional objects
based on digital models by layering or “printing” successive layers of materials.
3D printing relies on innovative “inks” including plastic, and more recently,
glass and wood.
3D Printing
Example Use Cases
• Supply chain optimization
• Customized products
• Remote location production
• Healthcare and smart medical devices
• Tools and end use parts
• Prototyping
• Bridge manufacturing
Computer-generated simulation of a three dimensional image or a complete
environment, within a defined and contained space, that viewers can interact
with in realistic ways. VR is intended to be an immersive experience and typically
requires equipment, most commonly a helmet/headset.
Virtual reality (VR)
Example Use Cases
• Big data management
• Entertainment
• Healthcare
• Merchandising
• Immersive journalism
• Virtual workplaces
• Manufacturing/product design
• Architecture & construction
• Education&training
Addition of information or visuals to the physical world, via a graphics and/
or audio overlay, to improve the user experience for a task or a product. This
“augmentation” of the real world is achieved via supplemental devices that
render and display said information.
Augmented Reality (AR)
Example Use Cases
• Printing and advertisers
• Retail environments
• Marketing
• Virtual showrooms
• Education
• Travel and tourism
• Gaming
Software algorithms that are capable of performing tasks that normally
require human intelligence, such as visual perception, speech recognition,
decision-making and language translation. AI is an “umbrealla” concept
that is made up of numerous subfields, such as machine learning, which
focuses on the development of programs that can teach themselves to learn,
understand, reason, plan, and act (i.e. become more intelligent) when
exposed to new data in the right quantities.
Artificial intelligence (AI)
Example Use Cases
• Customer support, transactions
and helpdesks
• Data analysis and advanced
analytics
• Managing personal finances
• Trading systems
• Real time fraud and risk management
• Automated virtual assistants
• Underwriting loans and insurance
Plenty of use cases for
connected intelligence.
This chart identifies
60+ example use cases
21
26. This content included for educational purposes.
Cloud direction: from information systems to connected intelligence
Cognitive ComputingTraditional
User interaction
• Static Library
• Taxonomy driven hierarchy
• FAQ
• Library of documents
Applications
• Static content
• Hierarchical search
• Ask and answer
• Limited social connections
• Document management
• Relational database systems
• Enterprise file management systems
• Limited workflow automation
Process & Store
• Internet of Things
• Any data / any device
• Integration of sensors, conversational UI
• Interactive interfaces for the KM lifecycle
• From create to share and enhance of content
• Continuous capture, analysis & publishing
• Machine learning categorization
• Advanced search –multidimensional
• Contextual analysis proposes new questions
• Shared social connections
• Store any data, any time, any volume
• Pattern recognition and machine learning
analysis and recommendations
• Integration workflow across communities
• Knowledge models and reasoning
Connected Intelligence AgeInformation Age
26
44. From real-world data, computers can learn to recognize
patterns too complex, too massive, or too subtle for hand-
crafted software.
44
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45. This content included for educational purposes. 45
Source: IDC, EMC, Deloitte
2020
2013 4.4 ZB
44 ZB 37% 27% 10%
Up to 90% of this data is unstructured
Total size of the
digital universe
Data useful
if analyzed
Data from mobile
devices and people
Data from
embedded systems
Sources: EMC Digital Universe with research and analysis by IDC, “The digital universe of opportunities: Rich data and the increasing value
of the Internet of Things,” April 2014; International Data Corporation, “IDC iView: Extracting value from chaos,” 2011,
www.emc.com/collateral/analyst-reports/idc-extracting-value-from-chaos-ar.pdf, accessed December 29, 2016.
22% 17% 2%
Expanding digital
universe, 2013–2020
Projected to reach 44
zettabytes in 2020. One
zettabyte is equal to one
billion terabytes. Data
valuable for enterprises,
especially unstructured
data from the Internet of
Things and nontraditional
sources is increasing in
both absolute and
relative sizes.
46. 90%Percentage of
the world’s data
created in the
past two years
Source: Retailer’s Guide to
Big Data Infographic
6 BILLION
Mobile subscriptions
worldwide
1.01 Billion
Facebook users
worldwide
400 Million
Tweets per day
87%
World’s population
604 MILLION
Users log-in monthly
from mobile
84 MILLION
Users access Twitter
via Mobile
SUBSCRIBE
46
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47. <0.5% of data
is ever analyzed or used
!47
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49. This content included for educational purposes. Source: D-Zone
TRANSIENT
ZONE
Ingest, Tag,
& Catalog Data
Apply Metadata,
Protect Sensitive
Attributes
Data quality
& Validation
Enrich Data &
Automate
Workflows
Data Catalog
Data Prep Tools
Data Visualization
External Connectors
RAW
ZONE
TRUSTED
ZONE
DATA LAKE ZONES CONSUMER SYSTEMSDATA
REFINED
ZONESTREAMING
FILE DATA
RELATIONAL
Data lakes for extracting value
from big data
Within a Data Lake, zones allow the logical
and/or physical separation of data that
keeps the environment secure, organized,
and agile. A 4-zone system might include:
• Transient Zone – holds ephemeral data,
such as temporary copies, streaming
spools, or other short-lived data before
being ingested.
• Raw Zone – is where raw data will be
maintained and where sensitive data is
encrypted, tokenized, or otherwise
secured.
• Trusted Zone – follows data quality,
validation, or other processing on data,
and becomes the “source of truth” for
downstream systems.
• Refined Zone – is where manipulated
and enriched data is kept. E.g., to store
output from tools like Hive or external
tools that write into to the Data Lake.
49
59. This content included for educational purposes.
Source: HfS - 2016
Evolving landscape of
service agents and
intelligent automation:
• From desktop automation
to RPA, to chatbot, to
assistant, to virtual agent.
• From enhancement of
data, to augmentation of
human agents, to
substitution of digital
labor for the human agent.
Example
vendors:
59
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Robotic Desktop
Automation (RDA)
• Personal robots for
every employee
• Call center, retail, branches,
back office
• 20-50% improvement across
large workforce groups
• RDA also provides dashboards
and UI enhancements
Robotic Process
Automation (RPA)
• Unattended robots replicating
100% of work
• Back office, operations,
repetitive
• 100% improvement across
smaller sub-groups
• Runs on a virtual server farm
(or under your desk)
Comparing robotic
desktop automation
(RDA) and robotic
process automation
(RPA)
62. This content included for educational purposes. 62
• Robotic process automation gives humans the potential of attaining new
levels of process efficiency, such as improved operational cost, speed,
accuracy and throughput volume, and leaving behind the repetitive and time
consuming low added-value tasks.
• Top drivers for implementing robotic automation beyond cost savings include:
- High quality by a reduction of error rates
- Time savings via better management of repeatable tasks
- Scalability by improving standardization of process workflow
- Integration by reducing the reliance on multiple systems/screens to
complete a process
- Reducing friction (increasing straight-through processing)
• For example, back-office tasks do not require direct interaction with
customers and can be performed more efficiently and effectively off-site or by
robots. It is feasible to re-engineer hundreds of business processes with
software robots that are configured to capture and interpret information
from systems, recognize patterns, and run business processes across multiple
applications to execute activities including data entry and validation,
automated formatting, multi-format message creation, text mining, workflow
acceleration, reconciliations and currency exchange rate processing among
others.
Robotic process
automation (RPA)
69. This content included for educational purposes. 69
Conceptually, blockchain technology is:
• A decentralized database, a transaction ledger
• A new form of information technology
• A globally-distributed always-on database system for secure,
permanently-recorded independently-validated transactions
• A universal organization and coordination system
• A registry, listing, and management system for all of the world’s assets,
smart property, and itemizable quanta
• Asset registry, inventory, tracking, and exchange
• A society’s public records repository, a representative and participatory
legal and governance system
• A tool for large-scale science, health, and business applications
Blockchain
technology concept
Source: Melanie Swan, Institute for Blockchain Studies
70. This content included for educational purposes. 70
Literally, today’s blockchain technology is:
• Open-source software upon which Bitcoin and other cryptocurrencies run
- A technology protocol layer like TCP/IP
• A decentralized database/ledger
- Giant ‘interactive Google doc spreadsheet’ that anyone can view and
administrators (miners) continually verify and update to confirm that
each transaction is valid
- Secure network where any transaction can be independently confirmed
as unique and valid without a centralized intermediary
• Blocks (batches) of transactions posted sequentially to a ledger (chain)Blockchain
technology today
Source: Melanie Swan, Institute for Blockchain Studies
72. This content included for educational purposes. 72
Source: Deloitte
Three levels of Blockchain:
• Storing digital records
• Exchanging digital assets
• Executing smart contracts
Blockchain allows unprecedented
control of information through secure,
auditable, and immutable records
of not only transactions but digital
representations of physical assets.
Storing digital records
Users can issue new assets and transfer
ownership in real time without banks,
stock exchanges, or payment processors.
Exchanging digital assets
1
2
Executing smart contracts3
Self-governing contracts simplify
and automate lengthy and inefficient
business processes.
Ground rules Terms and conditions
are recorded in the contract’s code.
Implementation The shared network
automatically executes the contract
and monitors compliance.
Verification Outcomes are validated
instantaneously without a third party
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74. This content included for educational purposes.
Digital identitySource: Bitcoin News
Smart contracts can allow individuals to own and control their
digital identity containing data, reputation and digital assets.
Individuals decide what data to disclose to counterparties,
providing enterprises the opportunity to seamlessly know their
customers.
Counterparties will not have to hold sensitive data to verify
transactions. This reduces liability while facilitating frictionless
know-your-customer requirements. It also increases
compliance, resiliency and interoperability.
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75. This content included for educational purposes.
RecordsSource: Bitcoin News
Smart contracts can digitize the Uniform Commercial Code
(UCC) filing and automate their renewal and release processes.
They can also atomically perfect a lender’s security interest
loan creation.
They can automate compliance with rules that require
destroying records at a future date. They also make possible
UCC liens that auto-release, auto-renew or automatically
request collateral. In performing such functions, smart contracts
reduce legal costs.
75
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76. This content included for educational purposes.
SecuritiesSource: Bitcoin News
Smart contracts can simplify capitalization table management.
They also circumvent intermediaries in the chain of securities
custody and facilitate the automatic payment of dividends, stock
splits and liability management, while reducing operational
risks. With securities on a distributed ledger, smart contracts
digitize work flows.
There are considerations with securities. For example, the
cryptographic signature of the State of Delaware can require
enabling legislation to clarify that Delaware corporate law
permits registration on a distributed ledger. While issuers will
welcome visibility into who owns their securities, some buy-side
firms protect this information.
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77. This content included for educational purposes.
Trade financeSource: Bitcoin News
Smart contracts can streamline international transfers of goods
via fast Letter of Credit and trade payment initiation, while
enabling a greater liquidity of financial assets. They can also
improve financing efficiencies for buyers, suppliers and
institutions.
There are trade finance considerations. Industry standards for
smart contract procedures are needed for wider acceptability.
Legal implications in case of an execution fall-out has to be
determined, particularly in the cases of disputes and defaults.
The integration of settlement systems, technology requirements
and off-chain ecosystems are important to success.
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78. This content included for educational purposes.
DerivativesSource: Bitcoin News
Smart contracts can streamline post-trade processes, removing
duplicative processes executed by each counterparty for
verifying trades and conducting appropriate trade events. They
enable a standard set of contract conditions and optimize post-
trade processing of over-the-counter derivatives.
They also enable real-time valuation of positions for monitoring
and reducing errors.
When considering derivative smart contracts, it is important to
address protocol changes related to regulatory reform.
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79. This content included for educational purposes.
Financial data recordingSource: Bitcoin News
Financial organizations can utilize smart contracts for accurate,
transparent financial data recording. Smart contracts allow for
uniform financial data across organizations, improving financial
reporting and reducing auditing costs.
By improving data integrity, smart contracts support increased
market stability. Also, they reduce accounting costs by allowing
cost sharing among organizations. Interoperability among the
distributed ledger network and legacy systems is important in
financial reporting.
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80. This content included for educational purposes.
MortgagesSource: Bitcoin News
Smart contracts can automate mortgage contracts by
automatically connecting the parties, providing for a frictionless
and less error-prone process. The smart contract can
automatically process payment and release liens from land
records when the loan is paid.
They can also improve record visibility for all parties and
facilitate payment tracking and verification. They reduce errors
and costs associated with manual processes. Digital identity is
a key requirement.
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82. This content included for educational purposes.
Supply chainSource: Bitcoin News
Smart contracts can provide real-time visibility for every step in
a supply chain. Internet of Things devices can record each step
as a product moves from a factory floor to the store shelves.
They facilitate granular-level inventory tracking, benefitting
supply chain financing, insurance and risk.
Enhanced tracing and verification reduce the risk of theft and
fraud. The identities of supply chain players have to be attested
over time, including companies, institutions, individuals,
sensors, facilities and products.
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83. This content included for educational purposes.
InsuranceSource: Bitcoin News
Smart contracts can improve insurance. For example, the
disjointed car insurance process. A smart contract can record
the policy, driving record and driver reports, allowing Internet of
Things-equipped vehicles to execute claims shortly after an
accident.
They automate claims processing, verification and payment.
Each policyolder’s repository includes driving record, vehicle
and accident report history. Eliminating duplicated reporting will
yield savings. Cross-industry collaboration is needed to address
technological, regulatory and financial challenges.
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84. This content included for educational purposes.
Clinical trialsSource: Bitcoin News
Smart contracts can improve clinical trials through increased
cross-institutional visibility. Privacy-preserving computation
improves data sharing between institutions while automating
patient data.
They can streamline processes for trials, improve access to
cross-institution data, and can increase confidence in patient
privacy. Authentication, authorization and identity remain open
issues for smart contracts executed on blockchain-enabled
networks.
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Medical researchSource: Bitcoin News
Smart contracts can facilitate the sharing of medical research,
for example, cancer data. They can facilitate the patient
consent management process and aggregate data contribution
and data sharing while protecting patient privacy.
New forms of blockchain technologies may be needed to
provide real-time access and protection of data confidentiality.
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89. To be successful, the IoT needs to be
intelligent, interoperable, and intuitive.
Source: NUANCE
This content included for educational purposes.
90. 90
The more
intelligent and
interoperable
things are, the
more intuitive
they become…
…and the more
we use them, the more
they learn, the more
intelligent they
become.
Source: NUANCE
This content included for educational purposes.
92. 92
IoT arrived faster than anticipated.
new things
connected every
day this year
26 billion
connected
devices by 2020
2003 2016
0.08connected devices
per person
3.64connected devices
per person
Source: CISCO IBSG, globalwebindex, and Gartner
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99. - Sundar Pichai Google CEO, 28 April 2016
“WE WILL MOVE FROM A
MOBILE FIRST TO AN AI
FIRST WORLD.”
99
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Artificial Intelligence (AI) capabilities:
1. Capture information, which can be done through:
• Vision recognition (e.g., recognizing a face or photo),
• Sound recognition (e.g., transcribing spoken words),
• Search (e.g., extracting data from unstructured or semi-structured
documents),
• Data analysis (e.g., identifying clusters of behaviors in customer data).
• Each of these turns data into information and are the most mature application
of AI in business today.
2. Turn that information into something useful through:
• Natural language processing (e.g., extracting meaningful data from an email),
• Reasoning (e.g., should I act based on the information given),
• Prediction (e.g., predicting buying behavior based on past purchases)
3. Understand why something is happening:
• This capability feeds off the first two categories described above.
• This is the least advanced area of AI, is a focus for business AI applications, and
will have a huge impact as it matures.
Artificial intelligence
capabilities
111. This content included for educational purposes.
AI and cognitive capabilities
• Computer vision: The ability of computers to iden[fy
objects, scenes, and ac[vi[es in unconstrained (that is,
naturalis[c) visual environments
• Machine learning: The ability of computer systems to
improve their performance by exposure to data without the
need to follow explicitly programmed instruc[ons
• Natural language processing (NLP): The ability of computers
to work with text the way humans do— for instance,
extrac[ng meaning from text or even genera[ng text that is
readable, stylis[cally natural, and gramma[cally correct
• Speech recognikon: The ability to automa[cally and
accurately transcribe human speech
• Opkmizakon: The ability to automate complex decisions
and trade-offs about limited resources
• Planning and scheduling: The ability to automa[cally devise
a sequence of ac[ons to meet goals and observe constraints
• Rules-based systems: The ability to use databases of
knowledge and rules to automate the process of making
P.S.ences about informa[on
• Robokcs: The broader field of robo[cs is embracing
cogni[ve technologies to create robots that can work
alongside, interact with, assist, or entertain people. Such
robots can perform many different tasks in unpredictable
environments, integra[ng cogni[ve technologies such as
computer vision and automated planning with [ny, high-
performance sensors, actuators, and hardware.
AI2
Amazon
Apple
Arria
Baidu
Connotate
Diffbot
Digital Reasoning
Equals3Media
Expert Systems
EY
Facebook
GNIP
Google
Houndify
H2O.ai
IBM Watson
inBenta
Intel
IPsoft
Kasisto
Kenosha
Kira
Kitt.ai
Lavastorm
LinkedIn
Luminoso
Manthan
Microsoft
Narrative Science
Nuance
Prognoz
Ross Intelligence
Samsung
SemanticMachines
Skytree
SparkBeyond
Twilio
Twitter
Vicarious
WebHose.io
X.ai
Yahoo
AI and cognitive capability development vendors*
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* Not part of this research deck.