Artificial Intelligence and Robotics Getting More Human… · Artificial Intelligence and Robotics Certificate Investment Case 2 Thanks to increasing computing power and big data,

Weekly Barometer 25 janvier 2012

Artificial Intelligence and Robotics – Getting More Human

July 2017

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Artificial Intelligence and Robotics Certificate

Investment Case

2

➢ 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 3

Consumer

applications

Industrial

applications

Tech vendors


From Automation To “Intelligence”

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Software Mechatronic Devicesrecreating 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


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


The History Of Artificial Intelligence


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


➢ Increasing processing power

✓ Advanced processors are key to AI

development

✓ Computing power now at the level

of 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


M&A Activity Picking Up

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Source: CBInsights


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


➢ 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


➢ 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

other 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


➢ 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


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


➢ Sensors

➢ Social Media

➢ E-Commerce

➢ Positioning systems

➢ Cloud

➢ Internet of Things

How to play AI and Robotics? – Technology providers (data collection)


➢ Computing Power ➢ Data analytics

➢ Data Indexing

How to play AI and Robotics?– Technology providers (data processors)


➢ Autonomous Vehicles ➢ Home robots

➢ Gaming & Virtual Reality➢ Personalized medicine

How to play AI and Robotics? – Consumer applications


How to play AI and Robotics? – Industrial applications

➢ Industrial robots

➢ Automation

➢ Machine vision

➢ Cutting lasers and

other tools

Disclaimer

This report has been produced by the organizational unit responsible for investment research (Research unit) of

AtonRâ Partners and sent to you by the company sales representatives.

As an internationally active company, AtonRâ Partners SA may be subject to a number of provisions in drawing up

and distributing its investment research documents. These regulations include the Directives on the Independence

of Financial Research issued by the Swiss Bankers Association.

Although AtonRâ Partners SA believes that the information provided in this document is based on reliablesources, it cannot assume responsibility for the quality, correctness, timeliness or completeness of the informationcontained in this report.

The information contained in these publications is exclusively intended for a client base consisting of professionalsor qualified investors. It is sent to you by way of information and cannot be divulged to a third party without theprior consent of AtonRâ Partners.

While all reasonable effort has been made to ensure that the information contained is not untrue or misleading atthe time of publication, no representation is made as to its accuracy or completeness and it should not be reliedupon as such.

Past performance is not indicative or a guarantee of future results. Investment losses may occur, and investorscould lose some or all of their investment.

Any indices cited herein are provided only as examples of general market performance and no index is directlycomparable 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, norshould 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 orsolicitation with respect to the purchase or sale of any security and should not be relied upon by you in evaluatingthe merits of investing in any securities.

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Artificial Intelligence and Robotics Getting More Human… · Artificial Intelligence and Robotics Certificate Investment Case 2 Thanks to increasing computing power and big data,