Travel Chatbots Update

Automation drives forward the economy. It allows businesses to scale and service large groups of customers. Automation first appeared in traditional industries, such as cotton production in England in 18th century or car conveyors in the US in early 20th century. The automation replaced physical labor.

With the invention of computers automated systems began to replace intellectual labour such as math calculations. Most of the software applications we use today can be described as automation. Online payments processing, online tickets purchasing, tax returns software, computer games, search engines, and endless other programs are all examples of software automation system.

As a next step we are now aiming at automating human decision making processing and high-level intellectual activities, historically considered to be sole domain of humans.

One interesting aspect of automation is lesser quality of service compared to manual service.

This is to be expected. If we gain in quantity we lose in quality.The gain in quantity is what automation is about - it allows to reach out to a large number of customers. Manual product or service can reach out to individuals only. The price we pay for the ability to deliver product or provide service en masse is the drop in quality.

Sometimes automation is an obvious choice. This is when the gain, the scalability, hugely outweighs the costs, lower quality. Search engine is a popular successful example. In other cases, the advantage in not so obvious. Online travel booking offers fast service without leaving the comforts of the home, but it does not often deliver the best option, such as finding the cheapest flight, and therefore many people still use ‘manual’ travel agents.

The notion of Artificial Intelligence has been around for a while.

Yet, unlike other prominent technological innovations such as electric cars or the processor speed, its progress has not been linear.

In fact, as far as industrial impact is concerned, there were times when allegedly there was no progress at all.

The widespread fascination with AI started several generations ago, in 80-s of the last century. This is when a pioneering work of Noam Chomsky on computational grammar led to a belief that human language capabilities in particular, and human intelligence in general, can be straightforwardly algorithmized. The expectation was that the AI-based programs will have a significant and lasting industrial impact.

But despite unabridged enthusiasm and significant amount of effort the practical results were minuscule. The main outcome was disappointment and AI become somewhat of a dirty word for the next 20 years. The research became mostly confined to scientific labs, and although some notable results have been achieved, such as development of neural networks and Deep Blue machine beating acting world champion in chess, the general community was largely unaffected.

The situation started to change about 5-10 years ago with a new wave of industrial research and development.

We now experience somewhat of a renaissance of AI with bots, semantic search, self-service systems, intelligent assistant programs like Siri are taking over. In addition, optimists of science are bragging confidently about reaching singularity during our lifetime.

The progress this time seems to be genuine indeed. There are indisputable breakthroughs, but even more impressive is the width of industries adopting AI solutions, from social networks to government services to robotics to consumer apps.

For the first time AI is expected to have a huge impact on the community in general.

There is this vibe around AI which hasn’t been felt in years. And with power comes responsibility, as they say, - prominent thinkers such as Stephen Hawking raised their voice against the dangers of powerful AI for humanity. Still, as far as current topic is concerned, this is all part of the vibe.

Despite all the plethora of upcoming opportunities, it is important to observe that we are yet to advance from anticipation stage. AI has not became a major industrial asset, an AI firm has not reached a unicorn status, and despite the fact that major industrial players such as IBM are pivoting towards  fully-fledged AI-based model it has not manifested itself in business results.

We are still waiting for AI-based technology to disrupt the global community.

The overall expectation is that it is about to happen. But it hasn’t happened yet.