University at Buffalo School of Management

Shoaib Alam, BS '10, is a solutions consultant for Adobe Marketing Cloud, where he's applying some of these strategies today. He says Adobe's business intelligence algorithms ingest data from digital marketing channels and cor- relate that data with purchases, video views and so- cial media shares to determine what users like to see on websites and how marketing messages or prod- ucts are performing. "When you're playing games and interacting with apps on your game consoles and on-demand platforms, the systems pick up information about what you're doing," says Alam. "So if you're watching Hulu or news shows, it will offer recommendations of other shows, games and nearby events it thinks you may be interested in." Streamlining supply chains For years, airlines and hotels have increased prices during high-demand times. Now, thanks to artifi cial intelligence, the prac- tice of "dynamic" or "surge" pricing is expanding to more industries than ever. Fares for ride-sharing services Uber and Lyft increase during peak times, Spring 2017 Buffalo Business 13 1981 IBM-built supercomputer Deep Blue faces off against world chess champion Garry Kasparov — and wins. 1997 The fi rst successful commercial expert system, the RI, begins operation at Digital Equipment Corp. The system helps confi gure orders for new computer systems and saves the company $40 million per year. 2002 iRobot releases Roomba, an autonomous vacuum cleaner that is the fi rst commercially successful robot for the home. Google begins testing self-driving vehicle technology with a Toyota Prius on freeways in California. 2009 2011 IBM's Watson faces off against Ken Jennings and Brad Rutter on Jeopardy. Watson easily defeats its two human opponents, the show's all-time best performers. Source: Adapted from "AI: 15 key moments in the story of artifi cial intelligence," BBC, 2014 bbc.co.uk/timelines/zq376fr x ticket prices for sporting events change in real time based on demand, and even Walt Disney Co. has implemented a new policy that reduces park ad- mission prices on low-demand days and boosts fees during more popular times. "Artifi cial intelligence is revolutionizing the re- tail end of supply chains because it allows businesses to respond in real time to maximize revenue based on unfolding demand," says Nallan Suresh, UB Dis- tinguished Professor and chair of the Operations Management and Strategy Department. In supply chain management, AI can uncover buying patterns by digging through huge amounts of sales data, allowing businesses to better under- stand what customers are looking for and stock items appropriately. "One of the biggest sources of waste is having too much or not enough product for sale," says Suresh. "When you're overstocked, you have to put a sale sign up and take a huge loss. When you underestimate, the customer walks away unfulfi lled and that's a loss in revenue and for the image of the company."

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