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The responsibilities of AI-first investors

Investors in AI-first technology companies serving the defense industry, such as Palantir, Primer and Anduril, are doing well. Anduril, for one, reached a valuation of over $4 billion in less than four years. Many other companies that build general-purpose, AI-first technologies — such as image labeling — receive large (undisclosed) portions of their revenue from the defense industry.

Investors in AI-first technology companies that aren’t even intended to serve the defense industry often find that these firms eventually (and sometimes inadvertently) help other powerful institutions, such as police forces, municipal agencies and media companies, prosecute their duties.

Most do a lot of good work, such as DataRobot helping agencies understand the spread of COVID, HASH running simulations of vaccine distribution or Lilt making school communications available to immigrant parents in a U.S. school district.

The first step in taking responsibility is knowing what on earth is going on. It’s easy for startup investors to shrug off the need to know what’s going on inside AI-based models.

However, there are also some less positive examples — technology made by Israeli cyber-intelligence firm NSO was used to hack 37 smartphones belonging to journalists, human-rights activists, business executives and the fiancée of murdered Saudi journalist Jamal Khashoggi, according to a report by The Washington Post and 16 media partners. The report claims the phones were on a list of over 50,000 numbers based in countries that surveil their citizens and are known to have hired the services of the Israeli firm.

Investors in these companies may now be asked challenging questions by other founders, limited partners and governments about whether the technology is too powerful, enables too much or is applied too broadly. These are questions of degree, but are sometimes not even asked upon making an investment.

I’ve had the privilege of talking to a lot of people with lots of perspectives — CEOs of big companies, founders of (currently!) small companies and politicians — since publishing “The AI-First Company” and investing in such firms for the better part of a decade. I’ve been getting one important question over and over again: How do investors ensure that the startups in which they invest responsibly apply AI?

Let’s be frank: It’s easy for startup investors to hand-wave away such an important question by saying something like, “It’s so hard to tell when we invest.” Startups are nascent forms of something to come. However, AI-first startups are working with something powerful from day one: Tools that allow leverage far beyond our physical, intellectual and temporal reach.

AI not only gives people the ability to put their hands around heavier objects (robots) or get their heads around more data (analytics), it also gives them the ability to bend their minds around time (predictions). When people can make predictions and learn as they play out, they can learn fast. When people can learn fast, they can act fast.

Like any tool, one can use these tools for good or for bad. You can use a rock to build a house or you can throw it at someone. You can use gunpowder for beautiful fireworks or firing bullets.

Substantially similar, AI-based computer vision models can be used to figure out the moves of a dance group or a terrorist group. AI-powered drones can aim a camera at us while going off ski jumps, but they can also aim a gun at us.

This article covers the basics, metrics and politics of responsibly investing in AI-first companies.

The basics

Investors in and board members of AI-first companies must take at least partial responsibility for the decisions of the companies in which they invest.

Investors influence founders, whether they intend to or not. Founders constantly ask investors about what products to build, which customers to approach and which deals to execute. They do this to learn and improve their chances of winning. They also do this, in part, to keep investors engaged and informed because they may be a valuable source of capital.

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Enterprise AI 2.0: The acceleration of B2B AI innovation has begun

Two decades after businesses first started deploying AI solutions, one can argue that they’ve made little progress in achieving significant gains in efficiency and profitability relative to the hype that drove initial expectations.

On the surface, recent data supports AI skeptics. Almost 90% of data science projects never make it to production; only 20% of analytics insights through 2022 will achieve business outcomes; and even companies that have developed an enterprisewide AI strategy are seeing failure rates of up to 50%.

But the past 25 years have only been the first phase in the evolution of enterprise AI — or what we might call Enterprise AI 1.0. That’s where many businesses remain today. However, companies on the leading edge of AI innovation have advanced to the next generation, which will define the coming decade of big data, analytics and automation — Enterprise AI 2.0.

The difference between these two generations of enterprise AI is not academic. For executives across the business spectrum — from healthcare and retail to media and finance — the evolution from 1.0 to 2.0 is a chance to learn and adapt from past failures, create concrete expectations for future uses and justify the rising investment in AI that we see across industries.

Two decades from now, when business leaders look back to the 2020s, the companies who achieved Enterprise AI 2.0 first will have come to be big winners in the economy, having differentiated their services, scooped up market share and positioned themselves for ongoing innovation.

Framing the digital transformations of the future as an evolution from Enterprise AI 1.0 to 2.0 provides a conceptual model for business leaders developing strategies to compete in the age of automation and advanced analytics.

Enterprise AI 1.0 (the status quo)

Starting in the mid-1990s, AI was a sector marked by speculative testing, experimental interest and exploration. These activities occurred almost exclusively in the domain of data scientists. As Gartner wrote in a recent report, these efforts were “alchemy … run by wizards whose talents will not scale in the organization.”

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How we built an AI unicorn in 6 years

Today, Tractable is worth $1 billion. Our AI is used by millions of people across the world to recover faster from road accidents, and it also helps recycle as many cars as Tesla puts on the road.

And yet six years ago, Tractable was just me and Raz (Razvan Ranca, CTO), two college grads coding in a basement. Here’s how we did it, and what we learned along the way.

Build upon a fresh technological breakthrough

In 2013, I was fortunate to get into artificial intelligence (more specifically, deep learning) six months before it blew up internationally. It started when I took a course on Coursera called “Machine learning with neural networks” by Geoffrey Hinton. It was like being love struck. Back then, to me AI was science fiction, like “The Terminator.”

Narrowly focusing on a branch of applied science that was undergoing a paradigm shift which hadn’t yet reached the business world changed everything.

But an article in the tech press said the academic field was amid a resurgence. As a result of 100x larger training data sets and 100x higher compute power becoming available by reprogramming GPUs (graphics cards), a huge leap in predictive performance had been attained in image classification a year earlier. This meant computers were starting to be able to understand what’s in an image — like humans do.

The next step was getting this technology into the real world. While at university — Imperial College London — teaming up with much more skilled people, we built a plant recognition app with deep learning. We walked our professor through Hyde Park, watching him take photos of flowers with the app and laughing from joy as the AI recognized the right plant species. This had previously been impossible.

I started spending every spare moment on image classification with deep learning. Still, no one was talking about it in the news — even Imperial’s computer vision lab wasn’t yet on it! I felt like I was in on a revolutionary secret.

Looking back, narrowly focusing on a branch of applied science undergoing a breakthrough paradigm shift that hadn’t yet reached the business world changed everything.

Search for complementary co-founders who will become your best friends

I’d previously been rejected from Entrepreneur First (EF), one of the world’s best incubators, for not knowing anything about tech. Having changed that, I applied again.

The last interview was a hackathon, where I met Raz. He was doing machine learning research at Cambridge, had topped EF’s technical test, and published papers on reconstructing shredded documents and on poker bots that could detect bluffs. His bare-bones webpage read: “I seek data-driven solutions to currently intractable problems.” Now that had a ring to it (and where we’d get the name for Tractable).

That hackathon, we coded all night. The morning after, he and I knew something special was happening between us. We moved in together and would spend years side by side, 24/7, from waking up to Pantera in the morning to coding marathons at night.

But we also wouldn’t have got where we are without Adrien (Cohen, president), who joined as our third co-founder right after our seed round. Adrien had previously co-founded Lazada, an online supermarket in South East Asia like Amazon and Alibaba, which sold to Alibaba for $1.5 billion. Adrien would teach us how to build a business, inspire trust and hire world-class talent.

Find potential customers early so you can work out market fit

Tractable started at EF with a head start — a paying customer. Our first use case was … plastic pipe welds.

It was as glamorous as it sounds. Pipes that carry water and natural gas to your home are made of plastic. They’re connected by welds (melt the two plastic ends, connect them, let them cool down and solidify again as one). Image classification AI could visually check people’s weld setups to ensure good quality. Most of all, it was real-world value for breakthrough AI.

And yet in the end, they — our only paying customer — stopped working with us, just as we were raising our first round of funding. That was rough. Luckily, the number of pipe weld inspections was too small a market to interest investors, so we explored other use cases — utilities, geology, dermatology and medical imaging.

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Iterative raises $20M for its MLOps platform

Iterative, an open-source startup that is building an enterprise AI platform to help companies operationalize their models, today announced that it has raised a $20 million Series A round led by 468 Capital and Mesosphere co-founder Florian Leibert. Previous investors True Ventures and Afore Capital also participated in this round, which brings the company’s total funding to $25 million.

The core idea behind Iterative is to provide data scientists and data engineers with a platform that closely resembles a modern GitOps-driven development stack.

After spending time in academia, Iterative co-founder and CEO Dmitry Petrov joined Microsoft as a data scientist on the Bing team in 2013. He noted that the industry has changed quite a bit since then. While early on, the questions were about how to build machine learning models, today the problem is how to build predictable processes around machine learning, especially in large organizations with sizable teams. “How can we make the team productive, not the person? This is a new challenge for the entire industry,” he said.

Big companies (like Microsoft) were able to build their own proprietary tooling and processes to build their AI operations, Petrov noted, but that’s not an option for smaller companies.

Currently, Iterative’s stack consists of a couple of different components that sit on top of tools like GitLab and GitHub. These include DVC for running experiments and data and model versioning, CML, the company’s CI/CD platform for machine learning, and the company’s newest product, Studio, its SaaS platform for enabling collaboration between teams. Instead of reinventing the wheel, Iterative essentially provides data scientists who already use GitHub or GitLab to collaborate on their source code with a tool like DVC Studio that extends this to help them collaborate on data and metrics, too.

Image Credits: Iterative

“DVC Studio enables machine learning developers to run hundreds of experiments with full transparency, giving other developers in the organization the ability to collaborate fully in the process,” said Petrov. “The funding today will help us bring more innovative products and services into our ecosystem.”

Petrov stressed that he wants to build an ecosystem of tools, not a monolithic platform. When the company closed this current funding round about three months ago, Iterative had about 30 employees, many of whom were previously active in the open-source community around its projects. Today, that number is already closer to 60.

“Data, ML and AI are becoming an essential part of the industry and IT infrastructure,” said Leibert, general partner at 468 Capital. “Companies with great open-source adoption and bottom-up market strategy, like Iterative, are going to define the standards for AI tools and processes around building ML models.”

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Flush with $42M, hot AI startup Faculty plans to hoover up more PhDs… and steer clear of politics

In the wake of the news that U.K.-based AI startup Faculty has raised $42.5 million in a growth funding round, I teased out more from CEO and co-founder Marc Warner on what his plans are for the company.

Faculty seems to have an uncanny knack of winning U.K. government contracts, after helping Boris Johnson win his Vote Leave campaign and thus become prime minister. It’s even helping sort out the mess that Brexit has subsequently made of the fishing industry, problems with the NHS and telling global corporates like Red Bull and Virgin Media what to suggest to their customers. Meanwhile, it continues to hoover up PhD graduates at a rate of knots to work on its AI platform.

But, speaking to me over a call, Warner said the company no longer has plans to enter the political sphere again: “Never again. It’s very controversial. I don’t want to make out that I think politics is unethical. Trying to make the world better, in whatever dimension you can, is a good thing … But from our perspective, it was, you know, ‘noisy,’ and our goal as an organization, despite current appearances to the contrary, is not to spend tonnes of time talking about this stuff. We do believe this is an important technology that should be out there and should be in a broader set of hands than just the tech giants, who are already very good at it.”

On the investment, he said: “Fundamentally, the money is about doubling down on the U.K. first and then international expansion. Over the last seven years or so we have learned what it takes to do important AI, impactful AI, at scale. And we just don’t think that there’s actually much of it out there. Customers are rightly sometimes a bit skeptical, as there’s been hype around this stuff for years and years. We figured out a bunch of the real-world applications that go into making this work so that it actually delivers the value. And so, ultimately, the money is really just about being able to build out all of the pieces to do that incredibly well for our customers.”

He said Faculty would be staying firmly HQ’d in the U.K. to take advantage of the U.K.’s talent pool: “The U.K. is a wonderful place to do AI. It’s got brilliant universities, a very dynamic startup scene. It’s actually more diverse than San Francisco. There’s government, there’s finance, there are corporates, there’s less competition from the tech giants. There’s a bit more of a heterogeneous ecosystem. There’s no sense in which we’re thinking, ‘Right, that’s it, we’re up and out!’. We love working here, we want to make things better. We’ve put an enormous amount of effort into trying to help organizations like the government and the NHS, but also a bunch of U.K. corporates in trying to embrace this technology, so that’s still going to be a terrifically important part of our business.”

That said, Faculty plans to expand abroad: “We’re going to start looking further afield as well, and take all of the lessons we’ve learned to the U.S., and then later Europe.”

But does he think this funding round will help it get ahead of other potential rivals in the space? “We tend not to think too much in terms of rivals,” he says. “The next 20 years are going to be about building intelligence into the software that already exists. If you look at the global market cap of the software businesses out there, that’s enormous. If you start adding intelligence to that, the scale of the market is so large that it’s much more important to us that we can take this incredibly important technology and deploy it safely in ways that actually improve people’s lives. It could be making products cheaper or helping organizations make their services more efficient.”

If that’s the case, then does Faculty have any kind of ethics panel overseeing its work? “We have an internal ethics panel. We have a set of principles and if we think a project might violate those principles, it gets referred to that ethics panel. It’s randomly selected from across faculty. So we’re quite careful about the projects that we work on and don’t. But to be honest, the vast majority of stuff that’s going on is very vanilla. They are just clearly ‘good for the world’ projects. The vast majority of our work is doing good work for corporate clients to help them make their businesses that bit more efficient.”

I pressed him to expand on this issue of ethics and the potential for bias. He says Faculty “builds safety in from the start. Oddly enough, the reason I first got interested in AI was reading Nick Bostrom’s work about superintelligence and the importance of AI safety. And so from the very, very first fellowship [Faculty AI researchers are called Fellows] all the way back in 2014, we’ve taught the fellows about AI safety. Over time, as soon as we were able, we started contributing to the research field. So, we’ve published papers in all of the biggest computer science conferences Neurips, ICM, ICLR, on the topic of AI safety. How to make algorithms fair, private, robust and explainable. So these are a set of problems that we care a great deal about. And, I think, are generally ‘underdone’ in the wider ecosystem. Ultimately, there shouldn’t be a separation between performance and safety. There is a bit of a tendency in other companies to say, ‘Well, you can either have performance, or you can have safety.’ But of course, we know that’s not true. The cars today are faster and safer than the Model T Ford. So it’s a sort of a false dichotomy. We’ve invested a bunch of effort in both those capabilities, so we obviously want to be able to create a wonderful performance for the task at hand, but also to ensure that the algorithms are fair, private, robust and explainable wherever required.”

That also means, he says, that AI might not always be the “bogeyman” the phrase implies: “In some cases, it’s probably not a huge deal if you’re deciding whether to put a red jumper or a blue jumper at the top of your website. There are probably not huge ethical implications in that. But in other circumstances, of course, it’s critically important that the algorithms are safe and are known to be safe and are trusted by both the users and anyone else who encounters them. In a medical context, obviously, they need to be trusted by the doctors and the patients need to make sure they actually work. So we’re really at the forefront of deploying that stuff.”

Last year the Guardian reported that Faculty had won seven government contracts in 18 months. To what does he attribute this success? “Well, I mean, we lost an enormous number more! We are a tiny supplier to government. We do our best to do work that is valuable to them. We’ve worked for many, many years with people at the home office,” he tells me.

“Without wanting to go into too much detail, that 18 months stretches over multiple prime ministers. I was appointed to the AI Council under Theresa May. Any sort of insinuations on this are just obviously nonsense. But, at least historically, most of our work was in the private sector and that continues to be critically important for us as an organization. Over the last year, we’ve tried to step up and do our bit wherever we could for the public sector. It’s facing such a big, difficult situation around COVID, and we’re very proud of the things we’ve managed to accomplish with the NHS and the impact that we had on the decisions that senior people were able to undertake.”

Returning to the issue of politics I asked him if he thought — in the wake of events such as Brexit and the election of Donald Trump, which were both affected by AI-driven political campaigning — AI is too dangerous to be applied to that arena? He laughed: “It’s a funny old funny question… It’s a really odd way to phrase a question. AI is just a technology. Fundamentally, AI is just maths.”

I asked him if he thought the application of AI in politics had had an outsized or undue influence on the way that political parties have operated in the last few years: “I’m afraid that is beyond my knowledge,” he says. But does Faculty have regrets about working in the political sphere?

“I think we’re just focused on our work. It’s not that we have strong feelings, either way, it’s just that from our perspective, it’s much, much more interesting to be able to do the things that we care about, which is deploying AI in the real world. It’s a bit of a boring answer! But it is truly how we feel. It’s much more about doing the things we think are important, rather than judging what everyone else is doing.”

Lastly, we touched on the data science capabilities of the U.K. and what the new fundraising will allow the company to do.

He said: “We started an education program. We have roughly 10% of the U.K.’s PhDs in physics, maths, engineering, applying to the program. Roughly 400 or so people have been through that program and we plan to expand that further so that more and more people get the opportunity to start a career in data science. And then inside Faculty specifically, we think we’ll be able to create 400 new jobs in areas like software engineering, data science, product management. These are very exciting new possibilities for people to really become part of the technology revolution. I think there’s going to be a wonderful new energy in Faculty, and hopefully a positive small part in increasing the U.K. tech ecosystem.”

Warner comes across as sincere in his thoughts about the future of AI and is clearly enthusiastic about where Faculty can take the whole field next, both philosophically and practically. Will Faculty soon be challenging that other AI leviathan, DeepMind, for access to all those PhDs? There’s no doubt it will.

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New Relic expands its AIOps services

In recent years, the publicly traded observability service New Relic started adding more machine learning-based tools to its platform for AI-assisted incident response when things don’t quite go as planned. Today, it is expanding this feature set with the launch of a number of new capabilities for what it calls its “New Relic Applied Intelligence Service.”

This expansion includes an anomaly detection service that is even available for free users, the ability to group alerts from multiple tools when the models think it’s a single issue that is triggering all of these alerts and new ML-based root cause analysis to help eliminate some of the guesswork when problems occur. Also new (and in public beta) is New Relic’s ability to detect patterns and outliers in log data that is stored in the company’s data platform.

The main idea here, New Relic’s director of product marketing Michael Olson told me, is to make it easier for companies of all sizes to reap the benefits of AI-enhanced ops.

Image Credits: New Relic

“It’s been about a year since we introduced our first set of AIops capabilities with New Relic Applied Intelligence to the market,” he said. “During that time, we’ve seen significant growth in adoption of AIops capabilities through New Relic. But one of the things that we’ve heard from organizations that have yet to foray into adopting AIops capabilities as part of their incident response practice is that they often find that things like steep learning curves and long implementation and training times — and sometimes lack of confidence, or knowledge of AI and machine learning — often stand in the way.”

The new platform should be able to detect emerging problems in real time — without the team having to pre-configure alerts. And when it does so, it’ll smartly group all of the alerts from New Relic and other tools together to cut down on the alert noise and let engineers focus on the incident.

“Instead of an alert storm when a problem occurs across multiple tools, engineers get one actionable issue with alerts automatically grouped based on things like time and frequency, based on the context that they can read in the alert messages. And then now with this launch, we’re also able to look at relationship data across your systems to intelligently group and correlate alerts,” Olson explained.

Image Credits: New Relic

Maybe the highlight for the ops teams that will use these new features, though, is New Relic’s ability to pinpoint the probable root cause of a problem. As Guy Fighel, the general manager of applied intelligence and vice president of product engineering at New Relic, told me, the idea here is not to replace humans but to augment teams.

“We provide a non-black-box experience for teams to craft the decisions and correlation and logic based on their own knowledge and infuse the system with their own knowledge,” Fighel noted. “So you can get very specific based on your environment and needs. And so because of that and because we see a lot of data coming from different tools — all going into New Relic One as the data platform — our probable root cause is very accurate. Having said that, it is still a probable root cause. So although we are opinionated about it, we will never tell you, ‘hey, go fix that, because we’re 100% sure that’s the case.’ You’re the human, you’re in control.”

The AI system also asks users for feedback, so that the model gets refined with every new incident, too.

Fighel tells me that New Relic’s tools rely on a variety of statistical analysis methods and machine learning models. Some of those are unique to individual users while others are used across the company’s user base. He also stressed that all of the engineers who worked on this project have a background in site reliability engineering — so they are intimately familiar with the problems in this space.

With today’s launch, New Relic is also adding a new integration with PagerDuty and other incident management tools so that the state of a given issue can be synchronized bi-directionally between them.

“We want to meet our customers where they are and really be data source agnostic and enable customers to pull in data from any source, where we can then enrich that data, reduce noise and ultimately help our customers solve problems faster,” said Olson.


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AI-tool maker Seldon raises £7.1M Series A from AlbionVC and Cambridge Innovation Capital

Seldon is a U.K. startup that specializes in the rarified world of development tools to optimize machine learning. What does this mean? Well, dear reader, it means that the “AI” that companies are so fond of trumpeting does actually end up working.

It has now raised a £7.1 million Series A round co-led by AlbionVC and Cambridge Innovation Capital . The round also includes significant participation from existing investors Amadeus Capital Partners and Global Brain, with follow-on investment from other existing shareholders. The £7.1 million funding will be used to accelerate R&D and drive commercial expansion, take Seldon Deploy — a new enterprise solution — to market and double the size of the team over the next 18 months.

More accurately, Seldon is a cloud-agnostic machine learning (ML) deployment specialist which works in partnership with industry leaders such as Google, Red Hat, IBM and Amazon Web Services.

Key to its success is that its open-source project Seldon Core has more than 700,000 models deployed to date, drastically reducing friction for users deploying ML models. The startup says its customers are getting productivity gains of as much as 92% as a result of utilizing Seldon’s product portfolio.

Alex Housley, CEO and founder of Seldon speaking to TechCrunch explained that companies are using machine learning across thousands of use cases today, “but the model actually only generates real value when it’s actually running inside a real-world application.”

“So what we’ve seen emerge over these last few years are companies that specialize in specific parts of the machine learning pipeline, such as training version control features. And in our case we’re focusing on deployment. So what this means is that organizations can now build a fully bespoke AI platform that suits their needs, so they can gain a competitive advantage,” he said.

In addition, he said Seldon’s open-source model means that companies are not locked-in: “They want to avoid locking as well they want to use tools from various different vendors. So this kind of intersection between machine learning, DevOps and cloud-native tooling is really accelerating a lot of innovation across enterprise and also within startups and growth-stage companies.”

Nadine Torbey, an investor at AlbionVC, added: “Seldon is at the forefront of the next wave of tech innovation, and the leadership team are true visionaries. Seldon has been able to build an impressive open-source community and add immediate productivity value to some of the world’s leading companies.”

Vin Lingathoti, partner at Cambridge Innovation Capital, said: “Machine learning has rapidly shifted from a nice-to-have to a must-have for enterprises across all industries. Seldon’s open-source platform operationalizes ML model development and accelerates the time-to-market by eliminating the pain points involved in developing, deploying and monitoring machine learning models at scale.”

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WhyLabs brings more transparancy to ML ops

WhyLabs, a new machine learning startup that was spun out of the Allen Institute, is coming out of stealth today. Founded by a group of former Amazon machine learning engineers, Alessya Visnjic, Sam Gracie and Andy Dang, together with Madrona Venture Group principal Maria Karaivanova, WhyLabs’ focus is on ML operations after models have been trained — not on building those models from the ground up.

The team also today announced that it has raised a $4 million seed funding round from Madrona Venture Group, Bezos Expeditions, Defy Partners and Ascend VC.

Visnjic, the company’s CEO, used to work on Amazon’s demand forecasting model.

“The team was all research scientists, and I was the only engineer who had kind of tier-one operating experience,” she told me. “So I thought, “Okay, how bad could it be? I carried the pager for the retail website before. But it was one of the first AI deployments that we’d done at Amazon at scale. The pager duty was extra fun because there were no real tools. So when things would go wrong — like we’d order way too many black socks out of the blue — it was a lot of manual effort to figure out why issues were happening.”

Image Credits: WhyLabs

But while large companies like Amazon have built their own internal tools to help their data scientists and AI practitioners operate their AI systems, most enterprises continue to struggle with this — and a lot of AI projects simply fail and never make it into production. “We believe that one of the big reasons that happens is because of the operating process that remains super manual,” Visnjic said. “So at WhyLabs, we’re building the tools to address that — specifically to monitor and track data quality and alert — you can think of it as Datadog for AI applications.”

The team has brought ambitions, but to get started, it is focusing on observability. The team is building — and open-sourcing — a new tool for continuously logging what’s happening in the AI system, using a low-overhead agent. That platform-agnostic system, dubbed WhyLogs, is meant to help practitioners understand the data that moves through the AI/ML pipeline.

For a lot of businesses, Visnjic noted, the amount of data that flows through these systems is so large that it doesn’t make sense for them to keep “lots of big haystacks with possibly some needles in there for some investigation to come in the future.” So what they do instead is just discard all of this. With its data logging solution, WhyLabs aims to give these companies the tools to investigate their data and find issues right at the start of the pipeline.

Image Credits: WhyLabs

According to Karaivanova, the company doesn’t have paying customers yet, but it is working on a number of proofs of concepts. Among those users is Zulily, which is also a design partner for the company. The company is going after mid-size enterprises for the time being, but as Karaivanova noted, to hit the sweet spot for the company, a customer needs to have an established data science team with 10 to 15 ML practitioners. While the team is still figuring out its pricing model, it’ll likely be a volume-based approach, Karaivanova said.

“We love to invest in great founding teams who have built solutions at scale inside cutting-edge companies, who can then bring products to the broader market at the right time. The WhyLabs team are practitioners building for practitioners. They have intimate, first-hand knowledge of the challenges facing AI builders from their years at Amazon and are putting that experience and insight to work for their customers,” said Tim Porter, managing director at Madrona. “We couldn’t be more excited to invest in WhyLabs and partner with them to bring cross-platform model reliability and observability to this exploding category of MLOps.”

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Leverage AI to optimize customer service outcomes

Nitesh Dudhia
Contributor

Nitesh Dudhia is co-founder and CBO of Aikon Labs Pvt Ltd. Nitesh has worked on market opportunity identification, business planning and strategy formulation and execution for digital transformation.

As offices worldwide shift to remote work, our interactions with customers and colleagues have evolved in tandem. Professionals who once relied on face-to-face communication and firm handshakes must now close deals in a world where both are rare. Coworkers we once sat beside every day are now only available over Slack and Zoom, changing the nature of internal communication as well.

While this new reality presents a challenge, the advancement of key technologies allows us to not just adapt, but thrive. We are now on the precipice of the biggest revolution in workplace communication since the invention of the telephone.

It’s not enough to simply accept the new status quo, particularly as the overall economic climate remains tenuous. Artificial intelligence has much to offer in improving the way we speak to one another in the social distance era, and has already seen wide adoption in certain areas. Much of this algorithmic work has gone on behind the scenes of our most-used apps, such as Google Meet’s noise-canceling technology, which uses an AI to mute certain extraneous sounds on video calls. Other advances work in real-time right before our eyes — like Zoom’s myriad virtual backgrounds, or the automatic transcription and translation technology built into most video conferencing apps.

This kind of technology has helped employees realize that, despite the unprecedented shift to remote work, digital conversations do not just strive to recreate the in-person experience — rather, they can improve upon the way we communicate entirely.

It’s estimated that 65% of the workforce will be working remotely within the next five years. With a more hands-on approach to AI — that is, using the technology to actually augment everyday communications — workers can gain insight into concepts, workflows and ideas that would otherwise go unnoticed.

Your customer service experience

Roughly 55% of the data companies collect falls into the category of “dark data”: information that goes completely unused, kept on an internal server until it’s eventually wiped. Any company with a customer service department is invariably growing their stock of dark data with every chat log, email exchange and recorded call.

When a customer phones in with a query or complaint, they’re told early on that their call “may be recorded for quality assurance purposes.” Given how cheap data storage has become, there’s no “maybe” about it. The question is what to do with this data.

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Five ways to bring a UX lens to your AI project

Debbie Pope
Contributor

Debbie Pope (she/her) is senior manager of product at The Trevor Project, the world’s largest suicide prevention and crisis intervention organization for LGBTQ youth. A 2019 Google AI Impact Grantee, the project is building an AI system to identify and prioritize high-risk contacts while simultaneously supporting more youth.

As AI and machine-learning tools become more pervasive and accessible, product and engineering teams across all types of organizations are developing innovative, AI-powered products and features. AI is particularly well-suited for pattern recognition, prediction and forecasting, and the personalization of user experience, all of which are common in organizations that deal with data.

A precursor to applying AI is data — lots and lots of it! Large data sets are generally required to train an AI model, and any organization that has large data sets will no doubt face challenges that AI can help solve. Alternatively, data collection may be “phase one” of AI product development if data sets don’t yet exist.

Whatever data sets you’re planning to use, it’s highly likely that people were involved in either the capture of that data or will be engaging with your AI feature in some way. Principles for UX design and data visualization should be an early consideration at data capture, and/or in the presentation of data to users.

1. Consider the user experience early

Understanding how users will engage with your AI product at the start of model development can help to put useful guardrails on your AI project and ensure the team is focused on a shared end goal.

If we take the ‘”Recommended for You” section of a movie streaming service, for example, outlining what the user will see in this feature before kicking off data analysis will allow the team to focus only on model outputs that will add value. So if your user research determined the movie title, image, actors and length will be valuable information for the user to see in the recommendation, the engineering team would have important context when deciding which data sets should train the model. Actor and movie length data seem key to ensuring recommendations are accurate.

The user experience can be broken down into three parts:

  • Before — What is the user trying to achieve? How does the user arrive at this experience? Where do they go? What should they expect?
  • During — What should they see to orient themselves? Is it clear what to do next? How are they guided through errors?
  • After — Did the user achieve their goal? Is there a clear “end” to the experience? What are the follow-up steps (if any)?

Knowing what a user should see before, during and after interacting with your model will ensure the engineering team is training the AI model on accurate data from the start, as well as providing an output that is most useful to users.

2. Be transparent about how you’re using data

Will your users know what is happening to the data you’re collecting from them, and why you need it? Would your users need to read pages of your T&Cs to get a hint? Think about adding the rationale into the product itself. A simple “this data will allow us to recommend better content” could remove friction points from the user experience, and add a layer of transparency to the experience.

When users reach out for support from a counselor at The Trevor Project, we make it clear that the information we ask for before connecting them with a counselor will be used to give them better support.

If your model presents outputs to users, go a step further and explain how your model came to its conclusion. Google’s “Why this ad?” option gives you insight into what drives the search results you see. It also lets you disable ad personalization completely, allowing the user to control how their personal information is used. Explaining how your model works or its level of accuracy can increase trust in your user base, and empower users to decide on their own terms whether to engage with the result. Low accuracy levels could also be used as a prompt to collect additional insights from users to improve your model.

3. Collect user insights on how your model performs

Prompting users to give feedback on their experience allows the Product team to make ongoing improvements to the user experience over time. When thinking about feedback collection, consider how the AI engineering team could benefit from ongoing user feedback, too. Sometimes humans can spot obvious errors that AI wouldn’t, and your user base is made up exclusively of humans!

One example of user feedback collection in action is when Google identifies an email as dangerous, but allows the user to use their own logic to flag the email as “Safe.” This ongoing, manual user correction allows the model to continuously learn what dangerous messaging looks like over time.

Image Credits: Google

If your user base also has the contextual knowledge to explain why the AI is incorrect, this context could be crucial to improving the model. If a user notices an anomaly in the results returned by the AI, think of how you could include a way for the user to easily report the anomaly. What question(s) could you ask a user to garner key insights for the engineering team, and to provide useful signals to improve the model? Engineering teams and UX designers can work together during model development to plan for feedback collection early on and set the model up for ongoing iterative improvement.

4. Evaluate accessibility when collecting user data

Accessibility issues result in skewed data collection, and AI that is trained on exclusionary data sets can create AI bias. For instance, facial recognition algorithms that were trained on a data set consisting mostly of white male faces will perform poorly for anyone who is not white or male. For organizations like The Trevor Project that directly support LGBTQ youth, including considerations for sexual orientation and gender identity are extremely important. Looking for inclusive data sets externally is just as important as ensuring the data you bring to the table, or intend to collect, is inclusive.

When collecting user data, consider the platform your users will leverage to interact with your AI, and how you could make it more accessible. If your platform requires payment, does not meet accessibility guidelines or has a particularly cumbersome user experience, you will receive fewer signals from those who cannot afford the subscription, have accessibility needs or are less tech-savvy.

Every product leader and AI engineer has the ability to ensure marginalized and underrepresented groups in society can access the products they’re building. Understanding who you are unconsciously excluding from your data set is the first step in building more inclusive AI products.

5. Consider how you will measure fairness at the start of model development

Fairness goes hand-in-hand with ensuring your training data is inclusive. Measuring fairness in a model requires you to understand how your model may be less fair in certain use cases. For models using people data, looking at how the model performs across different demographics can be a good start. However, if your data set does not include demographic information, this type of fairness analysis could be impossible.

When designing your model, think about how the output could be skewed by your data, or how it could underserve certain people. Ensure the data sets you use to train, and the data you’re collecting from users, are rich enough to measure fairness. Consider how you will monitor fairness as part of regular model maintenance. Set a fairness threshold, and create a plan for how you would adjust or retrain the model if it becomes less fair over time.

As a new or seasoned technology worker developing AI-powered tools, it’s never too early or too late to consider how your tools are perceived by and impact your users. AI technology has the potential to reach millions of users at scale and can be applied in high-stakes use cases. Considering the user experience holistically — including how the AI output will impact people — is not only best-practice but can be an ethical necessity.

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