Artificial Intelligence: Blessing or Disruption Across Industries? (Part 2)
Thinking that AI only disrupted hospitals and classrooms would be a mistake. In this second part of this adventure, I am broadening the scope of our viewpoint to show how artificial intelligence is changing even more industries like the Energy Sector, finance, Agriculture, military, and transportation sector. Each industry has its own set of advancements and challenges. Will AI make agriculture more environmentally friendly? Will AI change the nature of warfare? Can it take control of our vehicles and the economy better than us? Let’s explore these true stories to understand if AI is a gift, a disruption, or, as we expect, a mix of both.
ENERGY SECTOR
Power generation and its operations are enhanced through artificial intelligence by leading energy companies. For instance, Shell implements AI to monitor more than 10,000 pieces of equipment which allows them to use predictive maintenance to identify issues prior to failures. Full story. Also, Ørsted uses AI to enhance output from wind and solar while lowering maintenance costs. Full story
Siemens uses predictive-maintenance AI tools to incorporate generative AI and decrease downtimes further. Full story
Excitement: Optimizing emission and production AI improves efficiency, with clean energy integration using machine learning to balance volatile renewables, mitigate grid instabilities, and reduce greenhouse gases by 5-10%, nearly equivalent to the EU’s annual emissions, Reference. It is also interesting to know that AI reduces downtime by anticipating equipment failure or breakdowns as demonstrated by Shell’s deployment.
Concern: First, some energy occupations may be replaced by automation, particularly in routine activities, requiring supervision and retraining. Additionally, a DOE report issues a warning about inadvertent AI attacks or malfunctions that could interfere with vital infrastructure and also suggests that energy systems may be vulnerable to supply-chain attacks or hacking that targets AI tools. Full report.
FINANCE
Arguably, the finance industry was among the first to integrate rapidly advancing technology (for example, algorithms or high-speed trading). Banks used to manually complete laborious paperwork, like loan documentation, and engaged armies of analysts to examine reports that were filed.” AI is currently deploying at all levels of banks and on the outskirts of Wall Street. For example, JPMorgan Chase created an in-house ChatGPT-like hand locator for asset management and wealth management called “LLM Suite” for 50,000 employees. Read here. It assists with summary writing, ideation, and document reviewing. Morgan Stanley executed a similar idea of enabling advisors to access all diagnostics existing with tailored digital assistants. The aim is a happy worker who can click for an insight instead of clicking through endless pdfs.
There is a huge upside. In fact, according to a Reuters Breaking Views research, banks could increase their worldwide earnings by almost $170 billion by using AI to increase efficiency and decrease paperwork. Read here. With the potential for reduced costs, quicker loan approvals, and fewer false fraud alarms, unused AI also contributes to the projected profit. Changes in the supervisory sector are also positive, especially in regard to anti-fraud measures. As stated by Us Treasury Secretary Janet Yellen, AI could immensely automate dealing with customers, supporting the identification of illicit spending, therefore reducing costs and minimizing crime. Read here
Excitement: Smarter banking services. Banks have started bringing AI specialists to customize financial products to clients and detect fraud more swiftly than before. After all, who wouldn’t be excited about the prospect of loans turning into putty in the hands of computers in matters of minutes? Even chatting bots could serve accounts with instant responses. As noted by an analyst, generative AI is poised to reap ghastly rewards for the busy banks that have been wasting time and dragging their feet on basic chores. These are ‘efficiencies’ in action as articulated by JPMorgan’s AI assistant.
Concern: Investing companies have started tightening their warm embrace on robotic help due to slow and looming risks. If overreliance happens on generic artificial intelligence models and data, the entire market could be put on a rollercoaster. Janet Yellen has been vocal on her thoughts of complex and unrefined AI systems having borderline dangerous risks. Read here. When looking into AI algorithms programmed into finance, bias is mostly overlooked, for example malpractice for the underwriting of certain groups whose training data was loaded with deceit. All this while jaded financial professionals tremble with fears of job loss from automation of services. Ultimately, the battle between severely minimizing costs and overdose system risk creates a shocking coexistence within reason.
AGRICULTURE
AI is not just a modern fantasy while working on the farm; it is already cruising through the farmlands today. For instance, Solinftec, a Brazilian startup, is deploying a $50,000 AI-driven robot which scouts crops, monitors every single plant, and even target-sprays herbicide to save costs. Read here. Another bot, “CLAWS,” literally zaps weeds with light beams without damaging the crops. Read here. Farmers are excited about these modern innovations because advanced attainment like this could potentially reduce further herbicide usage by nearly 95% in trials, resulting in greener fields and improved yields. This advancement is astonishing; it’s essentially like farming with a smart assistant sitting on your tractor. Full story. However, things are not all bright, There are some downsides. Up front, these gadgets are ridiculously overpriced, and anyone who has worked with temperamental agricultural machinery is aware that they can freeze if the Wi-Fi goes down or the weather changes for the worse. So, yes, agri-AI has everyone thrilled about increased yields and reduced chemicals, but also somewhat anxious about relinquishing control to robots.
Excitement: No, AI isn’t just a sci-fi fairy tale, it is fully operational and a part of our existing reality. There is a Brazil-headquartered startup going by the name Solinftec and they have started selling these AI powered robots capable of scouting crops, analyzing the overall health of various plants, and efficiently targeting herbicide spraying, all for the mega low price of $50,000. The return savings in both chemical usage and overall farming costs is tremendous. CLAWS, the other innovation, sprays herbicides using laser techniques and precision high-tech. Some studies showed that these bots reduced the usage of herbicides by a jaw dropping 95%. For farmers, this means greener and better-potential-yield fields and also, in highly reduced costs.
Concern: Price tags—a fixed digit value recognized as component costing for such robotic solutions—are one of the main issues raised by the technology advancements that achieve precision and endure rapid modifications. Once these number-crunching machines reach the mainstream everyone will become incredibly reliant on them. Everybody understands that machines do break down, whether it’s a top tier model left unattended in the mud or a low-end version out in the fields. Because of this, likely technical hiccups, Wi-Fi stupors, obstruction-free software failures, or even a lost-connection zone beneath endless dirt could result in a full stop towards efficient business operations. The ever-rising substitute for labor due to enhanced mechanization becomes an increasingly reason for concern.
MILITARY
The incorporation of AI into the military makes it seem like we are living in a video game. Ukrainian developers working with tech startups are creating AI systems capable of managing swarms of drones. Each drone has the capacity to “think” independently in terms of identifying and coordinating on target sets, with a human only clicking “go” for the final strike. Read here. This implies one pilot could control dozens of aircraft simultaneously, which isn’t achievable with human hands alone. Even the navy is part of the party: Australia, for example, is developing unmanned, AI-operated mini submarines, which are scheduled for patrol in 2025 Ghost Shark submarines. Read here. It is astonishing (imagine robot-subs cruising the deep!), but also a bit unsettling. The new technology, as noted by Reuters, “expands ethical boundaries, biases and security risks,” Read here. To sum up, the military use of AI technology can be put as exciting, yet unsettling advancement opens a new terrain approach to warfare.
Excitement: The integration of AI into military activities is no longer science fiction. It is progressing at a breathtaking speed. For instance, in Ukraine, tech entrepreneurs are developing AI systems for the autopiloting of drone fleets where a single pilot can zoom out to a macro view level and oversee and command a multitude of drones instead of individually flying each one. All humans have to do is push the button to destroy targets, which is a far cry from operating manual-level. At the same time, AI projects like the “Ghost Shark”, an autonomous undersea vessel powered by artificial intelligence that is anticipated to commence reconnaissance missions in 2025, are being pioneered by Australia. These drones will autonomously maneuver to great depths and apply one’s AI systems to make life-or-death choices there.
Concern: Now we can see the challenging pieces of the puzzle coming together. The same technology that aids in safeguarding soldiers can also raise some serious ethical questions. What if there’s an AI that can mistakenly identify a target and subsequently strikes civilians? Or what if autonomous arms are hacked or used for nefarious purposes. These “systems give rise to ethical and security concerns” according to Reuters. There is genuine concern that by relinquishing control to algorithms, we are initiating a different type of a death race – countries competing to create faster, more intelligent, and deadlier machines.
TRANSPORTATION
AI is now being incorporated into various forms of transportation. Consider the case of self-driving cars. Google spinoff Waymo already employs more than 700 robotaxis (mostly located in San Francisco) that, to all intents and purposes, operate as regular taxis and are on the lookout for paying customers. Read more. Tesla has plans for their own fleet by summer. The concept of summoning a vehicle without a driver is incredibly enticing (bye to road rage, parking problems!), but we are still struggling with dealing with the chaos of the real world. Actually, an article from Reuters describes trying to launch a robotaxi service as being ‘very ambitious’ given all the problems these cars have with bad weather, complex junctions, and errant pedestrians. AI is also automating the trucking and shipping of goods.AI is also silently trucking and shipping products in addition to cars. For instance, according to industry reports, algorithms can pack shipping containers much more tightly, saving up to 50% of wasted space. AI is also reducing the amount of fuel used on long-distance trips through route planning. Read here. California is even proposing legislation for trucks to be able to autonomously drive on highways (with a human safety operator for now). Read here. All these advances in technology could lead to less traffic congestion and lower emissions but there are still a number of issues. Robotic cars are somewhat overhyped because every report of a self-driving car malfunction highlights the limits of the technology.
AI in transportation, like most things technology-related, contains much optimism but requires closer scrutiny, as it is still developing. In my analogy, it resembles a highway with a few problematic areas that require fixing—but has, at its core, the forceful promise of forward movement.
CONCLUSION
As we have mentioned, artificial intelligence is already operating drones, navigating through traffic, managing portfolios, and plowing fields; it is not just waiting for medical facilities and educational institutions to open their doors to it. In the context of agriculture, it is assisting farmers in making more sustainable and efficient decisions. In the military, AI assists in crafting strategies and boosts surveillance, although it does raise some ethical flags. Transportation systems become faster and safer, but not without tragic tests and tough questions. AI predicts markets and detects fraud but also restructures the financial hierarchy.
Each example demonstrates the same fundamental principle: AI has the ability to be equally productive in solving problems and creating disruptions. The advantages—from speed of execution to accuracy, innovation and efficiency—are certainly appealing. The disadvantages however, from privacy concerns to bias, loss of human control, and job displacement are a looming reality and one which cannot be made light of.
So, where does this leave us? Opting to pick solutions on one side of the coin might closely define the singular future of AI geared toward managing the double-edged sword we have created. AI may have proven itself to be a tool but what is undeniable is how it acts as a test—one which will define everything depending on the approach we choose to rise to.
Thank you for spending time to read this piece.