SFBB Exploitation Project 26.09.2017 Horizon Scanning AI and automation: Examining the future implications for business and employment in Wales SFBB Exploitation Project 26.09.2017

Overview of the issue: AI and automation are receiving are widely discussed as key technologies Statements on their implications for business and society are increasingly being made General hype and the lack of clarity on whether such technologies are appropriate for SMEs makes it difficult for businesses to respond

‘Machines performing human-like cognitive functions’ (OECD, 2017) Robotics has introduced the possibility of AI replicating physical or behavioural capabilities. But current technologies are ‘narrow’ in focus – e.g. structuring the range of responses to questions in advance Someway before Artificial General Intelligence applications are ready for use

AI and the customer interface Rapid area of development, drawing on huge customer datasets Offers the potential for the front end customer queries to be automated Chatbots are becoming more readily available: Including off the shelf and custom made Evidence of mainstream business applications adopting AI

Scale of impact: Impact likely to depend on: Presence of sectors with the potential to be automated by AI Capacity of businesses in Wales to absorb AI technologies Propensity of entrepreneurs / new business starts to replace sectors Number of jobs and tasks that have the potential to be automated by AI.

Implications for WG and business support: Rapidly developing area – subject to debate Evidence of national and regional strategies Growing interest / hype likely to be reflected in business queries and questions Role to give balanced, realistic information to business