Two articles about AI in business were next to each other on today's WSJ. One was about Bank of New York Mellon using AI to predict the market trades that are likely to fail to settle. The other was a somber article about IBM looking to sell its largest AI effort, Watson Health, which is not profitable.
Why is one sector actively adopting AI, whereas AI hardly penetrates the other?
My approach to this question is to ask who is the customer to the service provided by AI and who is going to make a profit from the work of AI. In healthcare, the patients may get the benefit of AI service in the end, but the customers who would experience Watson Health are doctors and hospital staffs. Do they have time to get trained? Are they incentivized to work with AI? Did IBM make it clear how much money Watson Health would save or make? How would insurance cover the AI-assisted service?
Convincing all of these stakeholders of the worth of Watson Health and the cost associated with changes is a daunting task, possibly more difficult than developing a top-notch technology. However, without the former, the latter cannot see the light of day. IBM was right to invest in the technology that made Watson Health possible, but I wonder how hard they tried to change the current healthcare system and people's mindset.
I believe that AI will be eventually integrated in our healthcare system and I will watch closely how this technology starts to gain market share in healthcare and turn profits. And who will be behind this massive transformation.