Artificialintelligenceistheapextechnologyoftheinformationera.InthelatestinourProfilesinInnovationseries,weexaminehowadvancesinmachinelearninganddeeplearninghavecombinedwithmorepowerfulcomputingandanever-expandingpoolofdatatobringAIwithinreachforcompaniesacrossindustries.ThedevelopmentofAI-as-a-servicehasthepotentialtoopennewmarketsanddisrupttheplayingfieldincloudcomputing.WebelievetheabilitytoleverageAIwillbecomeadefiningattributeofcompetitiveadvantageforcompaniesincomingyearsandwillusherinaresurgenceinproductivity.HeathP.Terry,CFA(212)357-1849heath.terry@gs.comGoldman,Sachs&Co.GoldmanSachsdoesandseekstodobusinesswithcompaniescoveredinitsresearchreports.Asaresult,investorsshouldbeawarethatthefirmmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreport.Investorsshouldconsiderthisreportasonlyasinglefactorinmakingtheirinvestmentdecision.ForRegACcertificationandotherimportantdisclosures,seetheDisclosureAppendix,orgotowww.gs.com/research/hedge.html.Analystsemployedbynon-USaffiliatesarenotregistered/qualifiedasresearchanalystswithFINRAintheU.S.TheGoldmanSachsGroup,Inc.EQUITYRESEARCH|November14,2016PROFILESININNOVATIONJesseHulsing(415)249-7464jesse.hulsing@gs.comGoldman,Sachs&Co.MarkGrant(212)357-4475mark.grant@gs.comGoldman,Sachs&Co.DanielPowell(917)343-4120daniel.powell@gs.comGoldman,Sachs&Co.AI,MachineLearningandDataFueltheFutureofProductivityArtificialIntelligencePiyushMubayi(852)2978-1677piyush.mubayi@gs.comGoldmanSachs(Asia)L.L.C.WaqarSyed(212)357-1804waqar.syed@gs.comGoldman,Sachs&Co.November14,2016ProfilesinInnovationGoldmanSachsGlobalInvestmentResearch2ContentsPortfolioManager’ssummary3WhatisArtificialIntelligence?9Keydriversofvaluecreation11Fuelingthefutureofproductivity15AI&TheProductivityParadox:AninterviewwithJanHatzius18TheEcosystem:Cloudservices,opensourcekeybeneficiariesofthecominginvestmentcycleinAI20UseCases41Agriculture42Financials50Healthcare59Retail68Energy75Enablers83Appendix90DisclosureAppendix97ContributingAuthors:HeathP.Terry,CFA,Jes...
