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Generative AI gold rush drives IT spending — with payoff in question

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Gartner predicts that worldwide IT spending will increase by 8% this year, fueled by a combination of AI excitement and the natural replacement cycle for devices acquired during the COVID-19 pandemic. The growing interest in AI is expected to drive a 10% rise in data center system spending, contributing to the overall increase in global IT spending, which is forecasted to reach $5.06 trillion.
John-David Lovelock, distinguished vice president analyst at Gartner, noted that companies have been enthusiastic about the potential of generative AI, with many expressing optimism about the transformative impact it will have on their operations and customer experiences. However, he cautioned that while the enthusiasm is high, the execution may lag behind. A Gartner survey conducted in late 2023 indicated that a significant percentage of CIOs planned to deploy generative AI tools by the third quarter of this year. Lovelock suggested that these timelines may be overly ambitious, and many organizations may struggle to implement meaningful generative AI solutions by the end of the year.
Mark McDonald, a distinguished vice president analyst at Gartner, emphasized the importance of approaching AI investments with caution and a focus on proofs of concept. While AI holds the promise of cost savings, productivity improvements, and enhanced customer experiences, it is essential for companies to assess the potential return on investment (ROI) and develop clear investment strategies. McDonald highlighted the need for CIOs to identify tangible benefits from AI initiatives and calculate the ROI effectively, considering factors such as cost, productivity gains, and customer satisfaction improvements.
Ultimately, while the excitement surrounding AI is driving increased IT spending, organizations must carefully evaluate the potential benefits and challenges associated with AI adoption to ensure successful implementation and maximize the return on their investments.
Source: cio.com
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Partnership Between Yanmar Vineyard Solutions and Moët & Chandon Enhances Vineyard Technology

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Yanmar Vineyard Solutions, the viticulture technology subsidiary of Yanmar, is proud to highlight its partnership with the renowned Champagne House Maison Moët & Chandon. The partnership focuses on advancing robotic and autonomous solutions in the vineyards by means of the development of the YV01 autonomous vineyard robot, aiming to innovate and improve the efficiency and safety of vineyard work today.
This partnership between Yanmar Vineyard Solutions and Maison Moët & Chandon is an important milestone. It underscores a shared vision for a more productive, safer future in vineyard management, offering sustainability in terroir protection.
First steps in 2019
The collaboration started in 2019 when Yanmar first introduced its autonomous machine concept to Moët & Chandon. At this time, the wine industry was beginning to explore the potential of robotic vineyard assistance. Moët & Chandon recognized the opportunity and provided a set of specifications for a machine capable of operating under challenging plots with steep slopes and lateral slopes.
First successful field trials
In 2021, the first prototype of the YV01 was introduced. The machine was first tested on a CIVC plot to ensure it met the specifications before being released to Moët & Chandon. Following these tests, in early 2022, Moët & Chandon undertook extensive trials with two YV01 machines on some of their most demanding plots. This phase was crucial for evaluating the machines’ performance under real-life conditions. It also marked the start of a training program to teach staff new ways of working in steep areas.
By the end of 2022, Moët & Chandon confirmed their intention to operate the YV01 in some of their most challenging vineyard plots in Aÿ and Cramant. The YV01 met all the criteria for ease of use, enhanced operator safety, and regained autonomy in managing the most challenging plots.
Same performance as tractor-mounted machines
Feedback from the winegrowers who have worked with the YV01 is very positive. They report that “it meets all the standards of what we know on traditional tractor-mounted machinery”. In addition, it offers the “same quality of plant protection” while offering the advantages of improved safety and better adaptation to difficult terrain.
New weeder tool on the market
Motivated by the positive results, Yanmar Vineyard Solutions and Moët & Chandon started the development of a new weeder tool in 2023, which has been available for sale since January 2024.
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Demystifying the EU AI Act for IT Leaders

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As the EU AI Act approaches its final passage, organizations involved in both developing and deploying AI technologies will face new transparency and risk assessment requirements, although the exact rules are yet to be finalized.
The European Parliament’s mid-March vote to approve the EU AI Act marks a significant milestone as the world’s first major legislation aimed at regulating the use and implementation of artificial intelligence applications.
While the vote does not signify the law’s definitive enactment, it does signal forthcoming regulatory changes that will impact many Chief Information Officers (CIOs) overseeing AI tool usage within their organizations. The legislation will not only affect entities directly engaged in AI development but also those simply utilizing AI technologies. Furthermore, these regulations will extend beyond the EU’s borders, impacting any organization interacting with EU residents.
The journey toward AI legislation has been years in the making, with the EU initially proposing the legislation in April 2021. Despite some advocacy for AI regulation from prominent figures like Elon Musk and Sam Altman, the EU AI Act also faces criticism.
The legislation will impose new obligations on organizations to validate, monitor, and audit the entire AI lifecycle. Kjell Carlsson, head of AI strategy at Domino Data Lab, expresses concern about the potential chilling effect of the law on AI research and adoption due to hefty fines and unclear definitions. However, ignoring the AI revolution to evade regulations is not a viable option, Carlsson emphasizes, as AI adoption is essential for organizational survival and growth.
The EU AI Act covers three main areas:

Banned uses of AI: Prohibitions include AI applications threatening human rights, such as biometric categorization systems based on sensitive physical features. Monitoring of employee or student emotions, social scoring, predictive policing based on personal profiles, and manipulation of human behavior are also banned.
Obligations for high-risk AI systems: Organizations utilizing high-risk AI tools must conduct risk assessments, mitigate risks, maintain use logs, ensure transparency, and provide human oversight. Examples of high-risk systems include those used in critical infrastructure, education, employment decisions, healthcare, and banking.
Transparency requirements: General-purpose AI systems must comply with transparency standards, including publishing detailed training data summaries. Additionally, deepfakes must be clearly labeled.

However, some challenges lie ahead, particularly regarding compliance with transparency rules and the impending regulations’ details. Organizations may struggle to meet transparency requirements, especially if they lack extensive documentation or robust data management practices. While the law isn’t retroactive, it will apply to existing AI systems, necessitating documentation of processes and data use.
EU regulators have up to 18 months from the law’s final passage to finalize specific definitions and rules, presenting additional uncertainties and challenges for compliance. The legislation’s focus on AI system effects rather than the systems themselves could pose difficulties given AI’s rapid evolution and unpredictability. As such, continued regulatory input and guidance will be essential for navigating the complexities of AI governance effectively.
Source: cio.com

 
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How AI can drive career growth for mortgage professionals

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Artificial Intelligence Reshapes Mortgage Industry Dynamics
The mortgage industry is undergoing a profound transformation driven by the adoption of artificial intelligence (AI). While some employees express concerns about potential job displacement, executives are assuring them that AI will primarily automate routine tasks, allowing for more focus on other areas of their roles.
Generative AI has emerged as a valuable tool for lenders, aiding in tasks such as content creation, marketing material development, and email responses. However, there’s recognition that AI’s output requires human oversight and refinement, especially in critical areas like marketing copy.
Companies are cautious about deploying AI in customer-facing roles due to regulatory uncertainties, but some are exploring compliant AI chatbot solutions. Despite regulatory challenges, some lenders have begun experimenting with AI chatbots, while others are still evaluating their potential applications.
Katherine Campbell, founder of consulting firm Leopard Job, believes AI can enhance employee satisfaction by automating mundane tasks, allowing humans to focus on higher-value activities. She emphasizes that AI’s role is to complement human expertise, not replace it.
For example, Mr. Cooper has integrated AI into fulfillment and due diligence roles but takes a cautious approach in front-office functions. Underwriters at Mr. Cooper work alongside AI in a co-pilot mode, reviewing AI-generated decisions before proceeding.
Executives see AI as an opportunity to enhance productivity rather than replace jobs. For instance, Mr. Cooper has significantly increased its mortgage servicing portfolio while maintaining a similar headcount, leveraging technology to handle a larger volume of loans.
Despite uncertainties, AI is expected to continue its growth trajectory in the mortgage industry. Companies are increasingly leveraging AI for internal functions like staff education and customer interactions. Tools powered by generative and machine learning models are already in use at companies like Blend and Rocket Mortgage, streamlining workflows and providing assistance to loan officers.
Source: nationalmortgagenews.com

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