data science in the age of ai mcfam distinguished lecture · deeply into positions effectively...

81
Data science in the age of AI the roles of automation, augmentation, human judgment Jim Guszcza, PhD, FCAS MCFAM Distinguished Lecture University of Minnesota March 1, 2018

Upload: others

Post on 16-Mar-2020

1 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

Data science in the age of AIthe roles of automation, augmentation, human judgment

Jim Guszcza, PhD, FCAS

MCFAM Distinguished Lecture

University of Minnesota

March 1, 2018

Page 2: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

The original data scientist

“An approximate answer to the right

question is worth a good deal more than

an exact answer to an approximate

problem.”

-- John Tukey

Page 3: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

1993: “greater statistics”

Page 4: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

2001: “data science”

Page 5: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

Today

We need a concept of

“Greater data science”

Page 6: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

The “last mile problem” of predictive analytics

MODEL

Predictive models can point us in the right direction …

Page 7: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

The “last mile problem” of predictive analytics

MODEL

Predictive models can point us in the right direction …

… but they provide no value unless the are followed by the right actions or desired behavior change

Page 8: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

Act 1Big data

Page 9: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

Three definitions of big data

1. Data sets with sizes beyond the capability of standard IT tools to capture, process, and analyze in reasonable time frames.

Page 10: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

Three definitions of big data

1. Data sets with sizes beyond the capability of standard IT tools to capture, process, and analyze in reasonable time frames.

2. Data with high Volume, Velocity, Variety• Huge datasets

• … emanating continuously from smart phones, sensors, cameras, GPS devices, computers, TVs, …

• … involving all manner of numeric, text, photographic data

Page 11: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

Three definitions of big data

1. Data sets with sizes beyond the capability of standard IT tools to capture, process, and analyze in reasonable time frames.

2. Data with high Volume, Velocity, Variety• Huge datasets

• … emanating continuously from smart phones, sensors, cameras, GPS devices, computers, TVs, …

• … involving all manner of numeric, text, photographic data

3. “Anything that doesn’t fit in Excel”

Page 12: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

The city of New York does actuarial prediction big data

Page 13: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

Actuarial vs clinical prediction – the motion picture

Human judges are not merely worse than optimal regression equations;

they are worse than almost any regression equation.

— Richard Nisbett and Lee Ross

Page 14: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

A story I don’t like

“There is now a better way. Petabytes allow us to say: “Correlation is enough.” We can

stop looking for models. We can analyze the data without hypotheses about what it

might show. We can throw the numbers into the biggest computing clusters the world

has ever seen and let statistical algorithms find patterns where science cannot.”

Copyright © 2017 Deloitte Development LLC. All rights reserved.

Page 15: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

Google Flu Trends

Page 16: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

Google Flu Trends

Page 17: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

Google Flu Trends – from poster child to parable

Page 18: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

Google Flu Trends – from poster child to parable

Page 19: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

The end of the end of theory

Page 20: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

The end of the end of theory

Page 21: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

Act 2Reframing big data

Page 22: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

Big data – the classic example

(This we

know)

Page 23: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

A more striking correlation

(!)

Page 24: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

More food for thought

(!!)

Page 25: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

Hard to swallow

Page 26: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

Digital breadcrumbs and personalizationOur lives are digitally mediated.

We continually leave behind digital breadcrumbs about:

• Who we email, call

• Our communication style

• How we drive

• What we buy

• What we eat

• What we read, watch

• How we sleep

• How we exercise

• What we think

Page 27: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

B is for Behavioral

I believe that the power of Big Data is that it is information about people's behavior instead of information about their beliefs… It's not about the things you post [online] … which is what most people think about, and it's not data from internal company processes and RFIDs.

This sort of Big Data comes from things like location data off of your cell phone or credit card, it's the little data breadcrumbs that you leave behind you as you move around in the world.

Those breadcrumbs tell… the story of your life... Big data is increasingly about real behavior, and by analyzing this sort of data, scientists can tell an enormous amount about you. They can tell whether you are the sort of person who will pay back loans. They can tell you if you're likely to get diabetes.

—Sandy Pentland, MIT Media Lab “Reinventing Society in the Wake of Big Data”

edge.org conversation

Page 28: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

Data science is now a societal issue

Since this data is mostly about people, there are enormous issues about privacy, data ownership, and data control. You can imagine using Big Data to make a world that is incredibly invasive, incredibly 'Big Brother'… George Orwell was not nearly creative enough when he wrote 1984...

—Sandy Pentland, MIT Media Lab “Reinventing Society in the Wake of Big Data”

edge.org conversation

Page 29: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

Like, you know

Researchers at Cambridge University Psychometrics Centre built predictive models of personal details based purely on social network “Likes” of a sample of 58,000 people.

• Relationship status, substance abuse 65-73% accurate• Political leanings (democrat vs Republican) 85% accurate• Religion (Christian vs Muslim) 82% accurate• Male sexual orientation 88% accurate• Ethnicity (African-American vs Caucasian) 95% accurate

“Observation of Likes alone was nearly is roughly as informative as using an individual’s actual personality test score.”

“Similar predictions could be made from all manner of digital data, with this kind of secondary ‘inference’ made with remarkable accuracy”

-- “Digital Records Could Expose Intimate Details and Personality Traits of Millions”University of Cambridge Research News

http://www.cam.ac.uk/research/news/digital-records-could-expose-intimate-details-and-personality-traits-of-millions

Page 30: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the
Page 31: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

http://web.media.mit.edu/~yva/InfographicPersonality.png

Page 32: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

Customer-centric uses of big dataThe role of applied behavioral economics

Page 33: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

Customer-centricityBrand

Centric

Customer

Centric

Page 34: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

Bounded rationality: we are terrible natural statisticians. We need help from data science.

Bounded selfishness: we are driven by fairness, and social norms – not just economic benefits.

Bounded self-control: we make short-term decisions at odds with our long-term goals.

The three bounds

Page 35: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

“Nudge” is human-centered design Design considerations

• Present bias

• Loss aversion

• Social proof

• “Social Physics”

• Framing effects

• Intuitive language / infoVis

• Status quo bias

• Mental accounting

• Cognitive load / “Scarcity”

• Pre-commitment

• Lotteries

(overweighing small probabilities)

• Unit bias (“mindless eating”)

• Removing bottlenecks

“While Cass and I were capable of recognizing good nudges when we came across them, we were still missing an organizing principle for how to devise effective nudges..

We had a breakthrough… when I reread Don Norman’s classic book The Design of Everyday Things.”

– Richard Thaler, Misbehaving

Page 36: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

Customer-centric data products

Data: Use telematics data to calculate risk factorsDigital: Periodic driver feedback reportsDesign: Employ Opower-style peer comparisons

Copyright © 2017 Deloitte Development LLC. All rights reserved.

Page 37: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

Prosocial applications of big data

Page 38: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

Tapping into bounded selfishness

Data: Statistical fraud detection using web click dataDigital: Interactions mediated by web siteDesign: Optimize behavioral nudge pop-up messages (use A/B testing)

Page 39: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

Uberizing insurance?

Page 40: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

Creating new customer-centric business models

Page 41: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the
Page 42: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the
Page 43: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

Act 3The rebirth of AI

Page 44: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

The second machine age

Page 45: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the
Page 46: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the
Page 47: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

An attempt will be made to find how to make machines use language, form abstractions and concepts, solve kinds of problems now reserved for humans, and improve themselves…

We think that a significant advance can be made in one or more of these problems if a carefully selected group of scientists work on it for a summer.

What is AI? (Answer in 1956)

— John McCarthy, Marvin Minsky,Nathan Rochester, Claude Shannon

“A Proposal for the DartmouthSummer Research Project on ArtificialIntelligence”

Page 48: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

What is AI? (Answer today)

The same family of algorithms we’ve been using for 20 years are doing a better job because they have access to big data.

— Daniel Levitin

Invariably, simple models and a lot of data trump more elaborate models based on less data… Currently, statistical translation models consist mostly of large memorized phrase tables…

— Peter Norvig

Page 49: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

Neural networks in the 1990s

Page 50: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

Neural networks today

Page 51: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

Marvin [Minsky] was advocating what’s called “commonsense reasoning”.

Machines have shown essentially no examples of doing that.

Therefore, they are complements to people. People are actually not so bad at that.

However, they are somewhat lousy at tuning things and keeping exact accounts of stuff. Machines are good at that.

That gives the idea that there could be a human-machine partnership…

— Sandy Pentland, Deloitte Review 2017

AI = Augmented Intelligence

Page 52: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

Marvin [Minsky] was advocating what’s called “commonsense reasoning”.

Machines have shown essentially no examples of doing that.

Therefore, they are complements to people. People are actually not so bad at that.

However, they are somewhat lousy at tuning things and keeping exact accounts of stuff. Machines are good at that.

That gives the idea that there could be a human-machine partnership…

— Sandy Pentland, Deloitte Review 2017

AI = Augmented Intelligence

Page 53: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

AI != human intelligence

Page 54: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

AI != human intelligence

Page 55: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

Google Translate: memorized phrase tables

Page 56: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

Feel the Bern

Page 57: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the
Page 58: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

May, 2017

Page 59: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

May, 2017

Page 60: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

The prequel

Page 61: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

The prequel

Page 62: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

… with a twist ending

Page 63: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

Their skill at manipulating and “coaching” their computers to look very deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the greater computational power of other participants.

Weak human + machine + better process was superior to a strong computer alone and, more remarkably, superior to a strong human + machine + inferior process.

— Garry Kasparov

Human plus computer

Page 64: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

Their skill at manipulating and “coaching” their computers to look very deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the greater computational power of other participants.

Weak human + machine + better process was superior to a strong computer alone and, more remarkably, superior to a strong human + machine + inferior process.

— Garry Kasparov

Human plus computer

Getting this process right involves more than math + stats.We also need concepts from psychology, human-centered design, ethics, …

Page 65: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

Men will set the goals, formulate the hypotheses, determine the criteria, and perform the evaluations.

Computing machines will do the routinizable work that must be done to prepare the way for insights and decisions in technical and scientific thinking…

The symbiotic partnership will perform intellectual operations much more effectively than man alone can perform them.

— JCR Licklider, “Man-Computer Symbiosis”

JCR Licklider (1960)

Page 66: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

The drive to automation

Page 67: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

What about underwriting more complex risks?

Copyright © 2017 Deloitte Development LLC. All rights reserved.

Page 68: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

A false comparison

Models are a form of “artificial intelligence” that augment (but do not replace) human expertise.

Equations > experts

(Equations + experts) > experts

nn XXXY *...** 22110

Page 69: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

Eyeglasses for the mind’s eye

Equations > experts

(Equations + experts) > experts

nn XXXY *...** 22110

Page 70: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

Eyeglasses for the mind’s eye

Equations > experts

(Equations + experts) > experts

nn XXXY *...** 22110

Algorithms are “cognitive prostheses” that augment

(but – in general – do not replace) human expertise.

Page 71: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

CodaA few final thoughts

Page 72: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

http://economix.blogs.nytimes.com/2011/04/14/time-and-judgment/

Noise and bias can affect important judgments

n.b.These findings

have been questioned!

Page 73: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

Actuarial vs clinical prediction – the motion picture

Human judges are not merely worse than optimal regression equations;

they are worse than almost any regression equation.

— Richard Nisbett and Lee Ross

Page 74: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

Algorithms can be biased too

Copyright © 2017 Deloitte Development LLC. All rights reserved.

Page 75: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

Many jobs will continue to be lost to intelligent automation…

but if you’re looking for a field that will be booming for many years, get into human-machine collaboration and process architecture and design.

– Garry Kasparov, Deep Thinking

Copyright © 2017 Deloitte Development LLC. All rights reserved.

Page 76: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

The future of work is Freestyle x

The problems that we face with technology are fundamental… We need a calmer, more reliable, more humane approach.

We need augmentation, not automation.

– Don Norman

consistent de-biased informed meaningful

data + human judgment / empathy decisions that are…

Copyright © 2017 Deloitte Development LLC. All rights reserved.

Page 77: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

“Freestyle x” in medicine

… Machine learning will displace much of the work of radiologists and anatomical pathologists.

These physicians focus largely on interpreting digitized images, which can easily be fed directly to algorithms instead.

– Ziad Obermeyer and Ezekiel Emanuel, NEJM

Page 78: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

“Freestyle x” in medicine

… Machine learning will become an indispensable tool for clinicians seeking to truly understand their patients.

As patients’ conditions and medical technologies become more complex, the role of machine learning will grow, and clinical medicine will be challenged to grow with it.

– Ziad Obermeyer and Ezekiel Emanuel, NEJM

Page 79: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

“Freestyle x” in medicine

Page 80: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

… As AI gets further incorporated… we have to make some tougher decisions.

We underpay teachers, despite the fact that it’s a really hard job and a really hard thing for a computer to do well.

So for us to reexamine what we value, what we are collectively willing to pay for—whether it’s teachers, nurses, caregivers, moms or dads who stay at home, artists, all the things that are incredibly valuable to us right now but don’t rank high on the pay totem pole—that’s a conversation we need to begin to have.

– Barack Obama, Oct 2016

Page 81: Data science in the age of AI MCFAM Distinguished Lecture · deeply into positions effectively counteracted the superior chess understanding of their grandmaster opponents and the

Copies available in the lobbyFor more discussion see:

“The Last Mile Problem: how data science and behavioral science can work together” Deloitte Review, January 2015http://dupress.com/articles/behavioral-economics-predictive-analytics/

“The Importance of Misbehaving: a conversation with Richard Thaler” Deloitte Review, January 2016https://dupress.deloitte.com/dup-us-en/deloitte-review/issue-18/behavioral-economics-

richard-thaler-interview.html

“Cognitive collaboration: why humans and computers think better together” Deloitte Review, January 2017https://dupress.deloitte.com/dup-us-en/deloitte-review/issue-20/augmented-intelligence-human-computer-collaboration.html