Corner Office: Dr. David Hardoon of Aboitiz Data Innovation | Esquire Philippines - video Dailymotion

Esquire Philippines

The CEO of Aboitiz Data Innovation explains how we can harness the power of data and AI, moving beyond algorithms, to achieve tangible, impactful results.

Transcript

00:00AI is about information.

00:04Just having information theoretically is meaningless.

00:06It's how you use that information which becomes important.

00:19Now what does digitalization mean?

00:21It means, again back to being a geek, more data, more digital touch points.

00:28So the question was, what can we do more?

00:31Where can we go beyond?

00:32Can we truly maximize these opportunities, these data opportunities, using more sophisticated

00:38techniques such as machine learning and AI to better understand our customers, better

00:43engage, sharpen our service offerings, enhance our defense, et cetera, everything.

00:49So that's how this journey started, and in fact we incubated ADI, avoidance data innovation,

00:53I would say in the bank, because we were able to demonstrate practically how AI isn't

01:01just a, it's not just a marketing fanfare.

01:04It's not just a, oh look, you can do AI, but how this can be operationalized, how it can

01:11be truly used by the business, and how in the end of the day it makes a material impact

01:17that can be measured.

01:19And by doing that, it effectively resulted in the question of, ooh, can we also do this

01:25in power?

01:26Can we also do this in food?

01:27Can we also, can we do it elsewhere?

01:37When you speak to companies out there, and in fact I would challenge you now, go speak

01:40to anyone out there and say, are you doing AI?

01:43I'm pretty sure that most people, most organizations would say yes, but then if you ask another

01:49question of, are you using it?

01:51Is it in production?

01:53Is the business making decision based on the output of these AIs?

01:57I would suspect, I may be wrong, that's going to be a bit of a tip-off.

02:01Suddenly you'll be like, no, we're still experimenting, it's all in sandbox.

02:05So now if you think about that, the true challenge isn't actually data, it is an AI.

02:12It's how do you make it work?

02:14How do you make it real?

02:15How do you take a concept into something that is business relevant?

02:21And what we realize is that that's not a trivial question.

02:24Yes, doing the scientific stuff, the engineering, the technology, building, absolutely, and

02:29we do that.

02:30But it's that step which becomes extremely critical of how do we result in it being used?

02:38How do we operationalize it?

02:40So ADI, when it was formed, and because it was formed and incubated within the conglomerate,

02:45wasn't just about we're going to bring smart people together with technical know-how to

02:51do data and to do AI.

02:54But we're also going to focus on that existential question of how do we make sure that the business

02:59is able to maximize the value?

03:01And what is it that it takes to do that?

03:04Whether it is a matter of process, whether it's a matter of elements, sometimes culture,

03:08sometimes it's an element of other things, and also the big question of do you even need

03:15to use AI?

03:16Sometimes it's a very simple step that's necessary.

03:28So look, I want to start off by saying I do not want to discredit or sideline people's

03:36concerns and fears.

03:37I think that would be unjust.

03:42What I would want to do is I want to address that and say two things.

03:47One, anything new can be at times a bit scary, can be a bit alarming, doesn't mitigate the

03:54necessity to focus and address those risks.

03:58But I take comfort if you purely look at our history as a species, we've been able to,

04:06in fact, that's the amazing thing about us, we constantly evolve, we constantly adopt

04:12new things.

04:13I remember I was talking to someone who said to me, oh, but it's going to impact us.

04:16And I looked at them and I smiled and said, I'm pretty sure when even you in your young

04:2020s or late 30s, iPhones didn't exist, you seem to be perfectly fine.

04:25Didn't take away your job.

04:26There's still work.

04:27We can adapt.

04:28It is sometimes difficult seeing the future with the lens of the past.

04:33So that's number one.

04:36Number two, because there are risks and to innovate, you must have governance.

04:42That is why we must have governance.

04:46If we go about and like imagine you start driving in the road without any potential

04:50rules or any potential guidelines or good practices and there's an accident, well, should

04:54we be surprised?

04:56It's not that we shouldn't drive.

04:58It's that we should make sense that we apply common sense and put mitigating controls along

05:03the way that we're able to value and appreciate and enjoy driving.

05:08And then thirdly, and in fact, I was going to say to you, one of the questions I used

05:11to get is, I used to get David, is AI going to be, you know, is it going to take away

05:15all our jobs and going to be the end of humanity?

05:18You know, there's this existential end of the world type of question and I usually smiled

05:23again not to discredit and say, look, if we research, if we, you know, implement and we

05:29deploy AI that is inherently designed to replace us, if one day in the future it replaces

05:36us, we shouldn't be too surprised.

05:39If we research, implement and deploy AI that is meant to augment us, it is meant to help

05:44us in doing things, again, let's not be naive.

05:48Will it take away certain functions?

05:50Yes, just as any technology has in the history, but it would augment us.

05:57If you take the mindset of, oh, okay, I no longer have to do this operational task,

06:01but I now have to think about what are the other things that need to come, challenge

06:06us from a creativity point of view, then guess what?

06:10We're going to go to that next level.

06:12And then as a final point, which does touch as the element of jobs, I'm a data person.

06:20In 2019, I commissioned one of the, actually first, to my knowledge, first in the world

06:26studies that looked into the depth of financial services and the impact of not just AI, but

06:32also automation to jobs.

06:35The outcome was conclusive.

06:37It's going to impact tasks, not jobs, but a job is comprised of tasks.

06:42So if all the tasks can be automated, then sure, it will impact the job.

06:46But actually what you found is that the job changed.

06:50You still needed someone in a branch, but what they did is not the same thing that they

06:56previously did.

06:58So the responsibility and the call out is to employers.

07:03We need to make sure we provide the skillsets and we train everyone.

07:07And as I quote, UBP CEO Edwin Batista, I love this quote is, there is space for everyone

07:14in the bus and we have to give the opportunity for everyone to get on the bus, but then it's

07:19everyone's choice whether they want to get on the bus.

07:22So I'm cognizant of risks, hence the necessity to mitigate, but not only do I think the future

07:31is bright, I think this is the catalyst for us to become better.

07:45Philippines has a vast, vast range of opportunities that can benefit from the applications of AI.

07:55Quite a few number of years ago, I was asked by a reporter, David, why are you so public

08:00about what you're doing?

08:03I mean, shouldn't you be keeping it hidden and just enjoy it?

08:07And my point has been, no, I want the industry to know because the only way for the industry

08:14to progress is by the industry progressing, not just one party of the industry.

08:20The point being is, everything that I've spoken about, whether it is the financial services,

08:24whether it's power, shrimp, everyone can do it here.

08:29And the delta of improvement, the delta of revenue, the delta of efficiency, the delta

08:34of value is potentially significant here.

08:39It's a question of doing it and willing to put the investment into it.

08:42That's number one.

08:44Number two for ADIs, for the first two years of our existence, we were singularly focusing

08:50on our companies, the group's companies.

08:54And for the last several months, nearly a year, we have been able to create a demonstrative

09:03number of use cases and samples of AI, of data that has been deployed or is in the process

09:09of being deployed.

09:11As part of that objective to help the industry, we want to do it for others.

09:15We in fact are doing it for others.

09:17And not only in Philippines, in Southeast Asia, in fact, even slightly on the verge

09:23of Asia.

09:24And that's one of the goals is, I truly believe that one of the exports of Philippines could

09:30be the know-how of making AI work.

09:36We're already doing it, but we've just started.

09:39It could be a lot more, and it could be for others as well.

09:49One of the biggest challenges in AI, and I've said it from board directors all the way to

09:54managers, is that it's not guaranteed.

09:56AI is about information.

10:01Just having information theoretically is meaningless.

10:03It's how you use that information which becomes important.

10:07Whereas the mindset should be that of education.

10:10I am investing in this in my future.

10:14And I guarantee you, as I guarantee to anyone who does it with this mindset, within months

10:19there will be a number.

10:20But the starting point is a starting point of, dare I say, faith.

10:26And that's the challenge.

10:27That is the real challenge.

10:28It's not even about how much money.

10:30That's willingness of, I am putting this on the table to potentially make myself better.

10:36And for those who do it, it pays back.

10:41It pays back.

Corner Office: Dr. David Hardoon of Aboitiz Data Innovation | Esquire Philippines

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