Beer, bots and broadcasts: AI in the cloud

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Published Apr 8, 2017

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Seattle - Back in October, Deschutes Brewery’s  Brian Faivre was fermenting a batch of

Obsidian Stout in a massive tank. Something was amiss; the beer wasn’t

fermenting at the usual temperature. Luckily, a software system triggered a

warning and he fixed the problem.

"We would have had to dump an entire batch,"

the brewmaster said. When beer is your bottom line, that's a calamity.

The software that spotted the temperature anomaly is from

Microsoft Corp. and it's a new type that uses a powerful form of

artificial intelligence called machine learning. What makes it potentially

revolutionary is that Deschutes rented the tool over the internet

from Microsoft's cloud-computing service. 

Day to day, Deschutes uses the system to decide when to

stop one part of the brewing process and begin another, saving time while

producing better beer, the company says.

The Bend, Oregon-based brewer is among a growing

number of enterprises using new combinations of AI tools and cloud

services from Microsoft, Amazon.com and Alphabet’s Google. C-SPAN is using

Amazon image-recognition to automatically identify who is in the government TV

programs it broadcasts. Insurance company USAA is planning to use similar

technology from Google to assess damage from car accidents and floods without

sending in human insurance adjusters. The American Heart Association is using

Amazon voice recognition to power a chat bot registering people for a

charity walk in June.

AI software used to require thousands of processors and

lots of power, so only the largest technology companies and research

universities could afford to use it. An early Google system cost more than $1

million and used about 1 000 computers. Deschutes has no time for such

technical feats. It invests mostly in brewing tanks, not data centres.

Read also:  Artificial intelligence can't replicate brains

Only

when Microsoft, Amazon and Google began offering AI software over the internet

in recent years did these ideas seem plausible. Amazon is the public cloud

leader right now, but each company has its strengths. Democratizing access to

powerful AI software is the latest battleground, and could decide which tech

giant emerges as the ultimate winner in a cloud infrastructure market

worth $25 billion this year, according to researcher IDC.

New generation

"There's a new generation of applications that

require a lot more intense data science and machine learning. There is a race

for who is going to provide the tools for that," said Diego Oppenheimer,

chief executive officer of Algorithmia Inc., a startup that runs a marketplace

for algorithms that do some of the same things as Microsoft, Amazon and

Google's technology.If the tools become widespread, they could transform work

as more automation lets companies get more done with the same human work

force. 

C-SPAN, which runs three TV stations and five web

channels, previously used a combination of closed-caption transcripts and

manpower to determine when a new speaker started talking and who it was. It was

so time-consuming, the network only tagged about half of the events it broadcast.

C-SPAN began toying with Amazon's image-recognition cloud service the same day

it launched, said Alan Cloutier, technical manager for the network's archives.

Now the network is using it to match all speakers against

a database it maintains of 99 000 government officials. C-SPAN plans to enter

all the data into a system that will let users search its website for things

like Bernie Sander's healthcare speeches or all times Devin Nunes mentions

Russia. 

As companies try to better analyse, optimize and predict

everything from sales cycles to product development, they are trying AI

techniques like deep learning, a type of machine learning that's produced

impressive results in recent years. IDC expects spending on such cognitive

systems and AI to grow 55 percent a year for the next five years. The

cloud-based portion of that should grow even faster, IDC analyst David

Schubmehl said. 

"In the fullness of time deep learning will be one

of the most popular workloads on EC2," said Matt Wood, Amazon Web

Services' general manager for deep learning and AI, referring to its flagship

cloud service, Elastic Compute Cloud.

Image-recognition

Pinterest uses Amazon's image-recognition service to let

users take a picture of an item - say a friend's shoes - and see similar

footwear. Schools in India and Tacoma, Washington, are using Microsoft's Azure

Machine Learning to predict which students may drop out, and farmers in

India are using it to figure out when to plant peanut crops, based on monsoon

data. Johnson & Johnson is using Google's Jobs machine-learning algorithm

to comb through candidates' skills, preferences, seniority and location to

match job seekers to the right roles.

Google is late to the public cloud business and is using

its AI experience and massive computational resources to catch up. A

new "Advanced Solutions Lab" lets outside companies participate

in training sessions with machine-learning experts that Google runs for its

own staff. USAA was first to participate, tapping Google engineers to help

construct software for the financial-services company. Heather Cox, USAA's

chief technology officer, plans a multi-year deal with Google.

The three leaders in the public cloud today have also

made capabilities like speech and image recognition available to customers who

can design apps that hook into these AI features -- Microsoft offers 25

different ones.

"You can build software that is cognitive - that can

sense emotion and understand your intent, recognize speech or what’s in an

image - and we provide all of that in the cloud so customers can use it as part

of their software," said Microsoft vice president Joseph Sirosh.

Read also:  LISTEN: What are the US' tech giants up to?

Amazon, in November, introduced similar tools. Rekognition

tells users what's in an image, Polly converts text to human-like speech and

Lex - based on the company's popular Alexa service -- uses speech and text

recognition for building conversational bots. It plans more this year.

Chris Nicholson, CEO of AI company Skymind, isn’t sure

how large the market really is for AI in the cloud. The massive data sets some

companies want to use are still mostly stored in house and it's

expensive and time-consuming to move them to the cloud. It’s easier to bring

the AI algorithms to the data than the other way round, he said. 

Amazon's Wood disagrees, noting healthy demand for the

company's Snowball appliance for transferring large amounts of

information to its data centres. Interest was so high that in November

Amazon introduced an 18-wheeler truck called Snowmobile that can move 100

petabytes of data.

Microsoft's Sirosh said the cloud can be powerful for

companies that don't want to invest in the processing power to crunch the data

needed for AI-based apps.  

Take Norwegian power company eSmart Systems, which

developed drones that photograph power lines. The company wrote its own

algorithm to scan the images for locations that need repair. But it rents the

massive computing power needed to run the software from Microsoft's Azure cloud

service, CEO Knut Johansen said. 

As the market grows and competition intensifies, each

vendor will play to their strengths. 

"Google has the most credibility based on tools they

have; Microsoft is the one that will actually be able to convince the

enterprises to do it; and Amazon has the advantage in that most corporate data

in the cloud is in AWS," said Algorithmia's Oppenheimer. "It's

anybody's game."

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