NAMA 2019 Presentation by Paresh Patel

Summary

In the provided transcript, Preston, the founder and CEO of Patreon, discusses the impact of artificial intelligence (AI) on the micro market and vending industry. He highlights that AI is about machines learning from data to take action, which is already subtly integrated into many everyday technologies like email spam filters, navigation, and streaming services. Preston emphasizes the importance of AI in enhancing consumer experiences and reducing operational costs in unattended retail. He suggests that AI can optimize inventory management, improve product mix based on consumer preferences, and automate customer support. He concludes by advising businesses to start collecting data now, as it will be crucial for leveraging AI in the future, and points out that many people are already using AI without even realizing it.

Takeaways

• 🧠 Artificial Intelligence (AI) is fundamentally a machine's ability to learn and take action based on data, which is different from traditional programming where the output is fixed based on the input.
• 📈 AI is increasingly prevalent, with 90% of global CIOs planning to deploy AI in their companies within the next three years, indicating rapid advancements in the field.
• 🛒 In the vending industry, AI can improve various aspects such as inventory management, product mix optimization, and customer support, enhancing the consumer experience and reducing operating costs.
• 🔍 AI applications are already a part of everyday life for many consumers, from email spam filters to personalized recommendations on platforms like Netflix and Amazon.
• 🚀 The more data AI systems have access to, the better they become at providing improved services and experiences, making data collection a valuable asset for future AI applications.
• 🤖 Machine learning, a subset of AI, can be seen in simple forms in current vending machines, like detecting a jam and adjusting selection options accordingly.
• 📊 Data is compared to currency in the sense that its value increases with collection and analysis over time, which is crucial for improving AI capabilities.
• 📱 Mobile technology and AI are intertwined, with AI being used to enhance mobile experiences, such as navigation that adapts to real-time conditions.
• 💬 AI-driven chatbots can automate customer support, handling a significant portion of common inquiries and reducing the need for human interaction.
• ⏰ AI can predict and schedule maintenance and restocking needs for vending machines, making operations more efficient and responsive to consumer demand.
• 📈 Starting to collect data now is crucial for future AI integration; it's like saving for retirement, where starting early makes a significant difference in the outcome.
• 🌟 AI has the potential to simplify complex tasks for consumers while providing powerful insights and automation capabilities for businesses.

Q & A

What is the main topic of Preston's presentation?

The main topic of Preston's presentation is artificial intelligence (AI) and its potential impact on the vending and micro market industry.

What is the fundamental concept of artificial intelligence?

The fundamental concept of artificial intelligence is a machine's ability to learn from data and take action based on that learning.

How does AI differ from traditional programming?

AI differs from traditional programming in that it can adapt its output based on new data and changing circumstances, rather than following a fixed set of instructions.

Why is collecting data important for AI?

Collecting data is important for AI because it allows the system to learn and improve over time, providing better and more personalized experiences for consumers.

How can AI improve the consumer experience in unattended retail?

AI can improve the consumer experience in unattended retail by enhancing inventory management, product mix recommendations, consumer support, and promotional scheduling based on consumer preferences and behaviors.

What is an example of AI in everyday use that people might not realize?

An example of AI in everyday use is email spam filters, which learn from user interactions to better identify and filter out junk emails.

Why is it beneficial to start collecting data as soon as possible for AI applications?

Starting to collect data as soon as possible allows for more learning and better preparation for AI applications, similar to saving for retirement—it's easier to accumulate valuable data over time than to try to catch up later.

What role does AI play in navigation apps on smartphones?

AI in navigation apps considers real-time data such as traffic conditions, accidents, and weather to provide the most efficient route from point A to point B, adapting to new information as it becomes available.

How does AI in services like Netflix and Amazon improve recommendations?

AI in services like Netflix and Amazon analyzes user behavior, such as viewing history and ratings, to understand preferences and offer personalized recommendations for movies, products, and more.

What is the potential impact of AI on operating costs in unattended retail?

AI has the potential to reduce operating costs by automating tasks such as customer support through chatbots, predictive maintenance, and inventory management, leading to increased efficiency and lower labor costs.

What is the significance of AI in the future of vending machines?

AI can enable vending machines to become smarter and more responsive to consumer needs, adjusting product mix, reordering stock, and even scheduling service based on real-time data and consumer preferences.

How does Preston suggest operators prepare for the integration of AI into their business?

Preston suggests that operators should start collecting data now to understand their consumers and machine usage, even if they don't know how they will use the data yet. This preparation will help them leverage AI in the future to improve sales and consumer experiences.