2018 AI predictions 8 insights to shape business strategypwc/us/AI2018 2018 AI predictions pwc/us/AI2018 1Here's some actionable advice on artificial intelligence (AI), that you can use today: If someone says they know exactly what AI will look like and do in 10 years, smile politely, then change the subject or walk away. AI is remarkably complex and advancing quickly. It's doing far more in some areas, and far less in others, than anyone would have guessed a decade ago. It's impossible for anyone today to give a precise vision of how the next ten--much less five--years will unfold. That's not to say that it's impossible to make broad predictions about AI's impact in the coming years and decades. We've done that elsewhere. Our aim here is different: to make specific predictions about AI trends for the next 12 months, then draw out key implications for business, government, and society as a whole. We're confident in making nearteam forecasts because these nascent trends are already underway, though they aren't yet attracting the attention they deserve. We've made eight such predictions. They're based not just on insights from AI visionaries and computer scientists. They're also informed by what our leaders in assurance, consulting, and tax see on the ground with clients around the world who are grappling with how to put AI to work in their organizations and prepare their employees for a world in which AI is everywhere. We hope you'll consider how these predictions relate to your own organization.PwC AI predictions for 20181. AI will impact employers before it impacts employment 2. AI will come down to earth--and get to work 3. AI will help answer the big question about data 4. Functional specialists, not techies, will decide the AI talent race 5. Cyberattacks will be more powerful because of AI--but so will cyberdefense 6. Opening AI's black box will become a priority 7. Nations will spar over AI 8. Pressure for responsible AI won't be on tech companies alone2018 AI predictions pwc/us/AI201821AI will impact employers before it impacts employment Everyone has seen the headlines: Robots and AI will destroy jobs. But we don't see it that way. We see a more complex picture coming into focus, with AI encouraging a gradual evolution in the job market that--with the right preparation--will be positive. New jobs will offset those lost. People will still work, but they'll work more efficiently with the help of AI. Most people have heard that AI beat the world's greatest grandmaster in chess. But not everyone knows what can usually beat an AI chess master: a centaur, or human and AI playing chess as a team. The human receives advice from an AI partner but is also free to override it, and it's the established process between the two that is the real key to success. This unparalleled combination will become the new normal in the workforce of the future. Consider how AI is enhancing the product design process: A human engineer defines a part's materials, desired features, and various constraints, and inputs it into an AI system, which generates a number of simulations. Engineers then either choose one of the options, or refine their inputs and ask the AI to try again. This paradigm is one reason why AI will strengthen the economy. At the same time, however, there's no denying that in some industries, economies, and roles--especially those that involve repetitive tasks--jobs will change or be eliminated. Yet in the next two years, the impact will be relatively modest: PwC's forthcoming international jobs automation study, due in February 2018, estimates that across 29 countries analyzed, the share of jobs at potential high risk of automation is only 3 percent by 2020.Why organizations will succeed or fail The upshot In 2018, organizations will start realizing they need to change how they work. As they do so, they'll need to be especially mindful of what has come before: failed tech transformations. There are several reasons why this happens, but two in particular are relevant to the way so many organizations are approaching AI. They're pigeon-holing AI talent. And they're thinking and working in silos.2018 AI predictions pwc/us/AI20183#1. AI will impact employers before it impacts employmentAI-savvy employees won't just need to know how to choose the right algorithm and feed data into an AI model. They'll also have to know how to interpret the results. They'll need to know when to let the algorithm decide, and when to step in themselves. At the same time, effective use of AI will demand collaboration among different teams. Consider an AI system that helps hospital staff decide which medical procedures to authorize. It will need input not just from medical and AI specialists, but also from legal, HR, financial, cybersecurity, and compliance teams. Most organizations like to set boundaries by putting specific teams in charge of certain domains or projects and assigning a budget accordingly. But AI requires multidisciplinary teams to come together to solve a problem. Afterward, team members then move on to other challenges but continue to monitor and perfect the first. With AI, as with many other digital technologies, organizations and educational institutions will have to think less about job titles, and more about tasks, skills, and mindset. That means embracing new ways of working.67%of executives say AI will help humans and machines work together to be stronger using both artificial and human intelligence Source: PwC Consumer Intelligence Series: Bot.Me, 2017 Base: 500 business executives2018 AI predictions pwc/us/AI20184#1. AI will impact employers before it impacts employmentImplications Popular acceptance of AI may occur quickly As signs grow this year that the great AI jobs disruption will be a false alarm, people are likely to more readily accept AI in the workplace and society. We may hear less about robots taking our jobs, and more about robots making our jobs (and lives) easier. That in turn may lead to a faster uptake of AI than some organizations are expecting.The organizational retooling will commence It will be a lengthy process, but some forward-thinking organizations are already breaking down the silos that separate data into cartels and employees into isolated units. Some will also start on the massive workforce upskilling that AI and other digital technologies require. This upskilling won't just teach new skills. It will teach a new mindset that emphasizes collaboration with co-workers--and with AI.How workers think about human-machine AI centaurs 78% Would work with AI manager if meant more balanced workload65% Would free employees from menial tasks64% Would offer employees new work opportunities50% Would follow AI system if predicted most efficient way to manage projectSource: PwC Consumer Intelligence Series: Bot.Me, 2017 Source: PwC Consumer Intelligence Series: Bot.Me, 2017 Base:500 business executives; percent agreeing with statement Base: 500 business executives; percent agreeing with statement2018 AI predictions pwc/us/AI201852 AI will come down to earth--and get to work There are plenty of publications promising an AI-powered future that will look like magic: fleets of autonomous cars that never crash or encounter traffic jams, robot doctors that diagnose illness in milliseconds, and smart infrastructure that optimizes flows of people and goods and maintains itself before repairs are ever needed. All that may come--but not in 2018. Executives think that AI will be crucial for their success: 72% believe it will be the business advantage of the future. The question is: What can it do for me today And the answer is here.Augmenting human productivity If AI sounds far-fetched, what about a tool to perform repetitive white-collar tasks, so managers can spend their time on analysis How about one that detects fraud and increases su