Weekly Barometer 25 janvier 2012 2 Artificial Intelligence and - - PowerPoint PPT Presentation

Weekly Barometer

25 janvier 2012

Investment Case

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➢ Thanks to increasing computing power and big data, artificial intelligence (AI) has been expanding at a fast pace, with notably major advances in the fields of natural language processing and computer vision ➢ In the long run, AI will combine software recreating the human thought process with mechatronic devices able to replicate the five human senses ➢ AI finds many applications in data-rich industries (banking, advertising/marketing…) where it can improve corporations’ efficiency through the collection, processing and analysis of data ➢ It is also expected to play a major role in the industrial world, where robotics adoption should accelerate as the growing sophistication and falling costs of robots and increasing labor costs in emerging markets make them an attractive ROI proposition ➢ The expected development of the Internet of Things could give another massive boost to AI applications over coming years (smart cars, smart homes and smart factories)

AI and Robotics Certificate details

✓ Issuing bank: Natixis, Calculation agent: Natixis SA ✓ ISIN: XS1035525325 ✓ Currency: USD ✓ Fees: 1.65% management fee + 15% performance fee, high water mark ✓ Bloomberg ticker: NXSRARTI

Artificial Intelligence and Robotics Certificate

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Consumer applications Industrial applications Tech vendors

Artificial Intelligence and Robotics Certificate

From Automation To “Intelligence”

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Software Mechatronic Devices

recreating the human thought process replicate the five human senses

Artificial Intelligence

➢ Artificial Intelligence is about computer systems doing what is usually performed by the human intelligence

Artificial Intelligence and Robotics Certificate

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The 3rd And Final Stage Of Technological Evolution

➢ After Tools and Machines, Automation comes as the 3rd step of technological evolution Tools ✓ To perform specific tasks ✓ Man brings motion Machines ✓ To motion tools ✓ Man brings control AI ✓ The removal of human control from the machine

Artificial Intelligence and Robotics Certificate

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The History Of Artificial Intelligence

Artificial Intelligence and Robotics Certificate

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Video Games Have Been A Field Of Experimentation For AI

➢ The relation between AI and video games is as strong as ever: ✓ AI technology adds realistic, intelligent behavior to the virtual creatures that populate a game world ✓ Video games are a major area of experimentation for AI ➢ The central processing unit or CPU is the brain of the computer ➢ The graphics processor unit or GPU makes possible realistic graphics ➢ The combination of a CPU with a GPU can deliver the best value of system performance and power

Virtual Reality is the next evolution in gaming…

used by the Google DeepMind AI to win against the Go game

1,202 CPUs and 176 GPUs

➢ Game developers now have to come up with intelligent digital environments

Artificial Intelligence and Robotics Certificate

GPU CPU

➢ Increasing processing power ✓ Advanced processors are key to AI development ✓ Computing power now at the level

• f the mouse brain

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Big Data And Computing Power Are The Two Main Catalysts

➢ Increasing data ✓ Data (structured & unstructured) is mandatory for training AI algorithms ✓ In 2020, digital data is expected to be 50 times bigger than in 2013 (source: IDC)

Source: The Times

Artificial Intelligence and Robotics Certificate

M&A Activity Picking Up

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Source: CBInsights

Artificial Intelligence and Robotics Certificate

Main Applications

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AI

Virtual Reality

Augmented Reality Gaming Learning

Internet of Things

Smart Home Facility Management, Amazon Go Smart meters

Robotics

Smart Cars Industry Farming

Knowledge Automation

CRM & Marketing Legal & Finance Scientific Research & Biotech

Artificial Intelligence and Robotics Certificate

➢ AI applications are numerous in services businesses ✓ Companies get access to new revenue streams and/or better efficiencies through tools helping them to: ✓ better price product and services, detect and prevent fraud, predict future losses… ✓ track and analyze marketing campaigns, KPIs and customer behavior to identify marketing opportunities ✓ define, measure, and manage risk (credit scoring…) ✓ automate back-office functions

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➢ AI-as-a-service is a major catalyst ✓ Cloud-industry leaders like Amazon or Microsoft already provide AI-as-a-service ✓ making access to AI affordable to most companies

A Key Driver Of Productivity In The Services Business

Artificial Intelligence and Robotics Certificate

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➢ Collaborative robots have a compelling ROI proposition: ✓ $30-40k on average vs. $50-250k (+ high integration costs) for traditional industrial robots ✓ they can work 24/7, never call in sick, never go on strike… ➢ Current generations of robots are easier to program and come with features such as vision and touch technologies ➢ Collaborative robots can work alongside humans without a safety cage, meaning they can easily be deployed within a factory ➢ It’s important to keep in mind that a robot is a combination of: ✓ steel, servo-motors, sensors, tools to perform tasks (such as cutting lasers and

• ther equipment) and “intelligence” (OS, computing power, machine vision…)

➢ In our view, most of the value lies in the software and computing power

Robotics And Automation: AI Applied To The Industry

Artificial Intelligence and Robotics Certificate

➢ In a 2013 study, McKinsey estimated the annual positive impact of AI-related technologies on global GDP ($ 80 Tn) in the range of 6.5%-8.3% by 2025 AI could double economic growth over the next 20 years in 12 developed economies (Accenture)

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A Potentially Huge Economic Impact

5.2-6.7 2.7-6.2 1.7-4.5 0.2-1.9

Automation Of Knowledge Work The Internet Of Things Advanced Robotics Autonomous and Near Autonomous vehicles Size in 2025, $ trillion

Artificial Intelligence and Robotics Certificate

The Ultimate Goal For AI Scientists

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➢ We believe this won’t be possible… until quantum computing becomes truly available ➢ Quantum computation refers to encoding information as 0s, 1s or both simultaneously, unlike conventional digital computers where information is encoded by 0s and 1s ➢ Thanks to quantum computing: ✓ the power at which information can be manipulated and combined is gargantuan ✓ it becomes possible to work on billions of variables at the same time ➢ While we’re still not there, we are moving fast as shown on the picture (Quantum computer at Google labs in 2016) ✓ quantum computing to be available at worst in 20 years, at best in ten years

Artificial General Intelligence or AGI (Strong AI) Artificial Superintelligence (ASI)

A machine performing any tasks (including thinking and understanding) a human being would do An AI system substantially beyond human intelligence by handling and taking as much information as possible into account

Artificial Intelligence and Robotics Certificate

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➢ Sensors ➢ Social Media ➢ E-Commerce ➢ Positioning systems ➢ Cloud ➢ Internet of Things How to play AI and Robotics? – Technology providers (data collection)

Artificial Intelligence and Robotics Certificate

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➢ Computing Power ➢ Data analytics ➢ Data Indexing How to play AI and Robotics?– Technology providers (data processors)

Artificial Intelligence and Robotics Certificate

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➢ Autonomous Vehicles ➢ Home robots ➢ Gaming & Virtual Reality ➢ Personalized medicine How to play AI and Robotics? – Consumer applications

Artificial Intelligence and Robotics Certificate

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How to play AI and Robotics? – Industrial applications ➢ Industrial robots ➢ Automation ➢ Machine vision ➢ Cutting lasers and

• ther tools

Artificial Intelligence and Robotics Certificate

Disclaimer

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• f Financial Research issued by the Swiss Bankers Association.

Although AtonRâ Partners SA believes that the information provided in this document is based on reliable sources, it cannot assume responsibility for the quality, correctness, timeliness or completeness of the information contained in this report. The information contained in these publications is exclusively intended for a client base consisting of professionals

• r qualified investors. It is sent to you by way of information and cannot be divulged to a third party without the

prior consent of AtonRâ Partners. While all reasonable effort has been made to ensure that the information contained is not untrue or misleading at the time of publication, no representation is made as to its accuracy or completeness and it should not be relied upon as such. Past performance is not indicative or a guarantee of future results. Investment losses may occur, and investors could lose some or all of their investment. Any indices cited herein are provided only as examples of general market performance and no index is directly comparable to the past or future performance of the Certificate. It should not be assumed that the Certificate will invest in any specific securities that comprise any index, nor should it be understood to mean that there is a correlation between the Certificate’s returns and any index returns. Any material provided to you is intended only for discussion purposes and is not intended as an offer or solicitation with respect to the purchase or sale of any security and should not be relied upon by you in evaluating the merits of investing in any securities.

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