Reinventing the business: enter AI
BY Georgi R. Chakarov
In a recent Ernst & Young study 34% of the polled 358 media and entertainment executives said that they fear their company will not survive the next five years unless they reinvent their business. Unsurprisingly, close to a third said they are not sure what areas they should prioritize. Still, the analysts identified three main directions: operational excellence, innovation and talent and skill development. Additionally, some 46% identi- fied automation as the single most important tactic for cost savings.
Looking at all the areas mentioned above, being a manager myself, I can’t help but notice that all of them could be implemented with just one strategic move - deployment of Artificial Intelligence. In the E&Y study, AI is mentioned just once, among the drivers of change in the industry. There is no mention of integrating it within the workflow of the companies who feel they need to move away from traditional models.
This is hardly surprising knowing that among all other industries out there the Me- dia & Entertainment sector remains the most people-centric, with a focus on creative talent, practical knowledge, weight of experience and
decision-making skills – all of these qualities have typically not been associated with Automation and AI. But think again. How do you cut costs, maximize efficiency, reinvent a business model thru innovation and keep up a level of top-notch expertise while having to analyze terabytes of data in an ever-changing environment?
The people running Warner Bros. came to the exact same conclusion and a few days ago the Hollywood press revealed that they will be using Cinelytic’s algorithms to make decisions regarding marketing and distribution (and possibly green- lighting, according to some sources) of films. What would that mean for Warner’s business remains to be seen, but the decision in itself means a revolution for the whole industry and should help media and entertainment execs around the world to embrace such innovations easier. Because there will come a point when they will no longer be able to cut staff, hire the best talent, invest more in skill improvement and still maintain a profitable business. As technology evolves, the market trends are changing faster and faster and no human being can keep up with that pace.
Imagine Netflix without algorithms... AI already controls our entertainment, soon it will control our business as well.