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The staggering potential of the AIoT
What happens when Artificial Intelligence meets the Internet of Things? In this video J.P. Morgan’s Katherine Rosa and Manuela Veloso shed light on the array of applications for this new capability, whether in the home or across our cities.
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Meet the Panelists
Katherine Rosa is Global Head of Alternative Investments, J.P. Morgan Private Bank, a platform with over US$80 billion in assets under supervision with some of the leading private equity, private credit, real estate and hedge fund firms globally.
Prior to this position, Ms. Rosa was a Managing Director in the Private Equity Group within J.P. Morgan Asset Management, where she was a member of the Global Investment, Allocation and Management Committees. In addition to investment and portfolio management responsibilities, she led global business development within the Group, which she joined in 2000. Ms. Rosa served on the Advisory Board of Rizvi Opportunistic Equity Fund; as a Board Observer for Icon Holdings, LLC; as the Chairperson of the Supervisory Board of Beijing Equity Investment Development Management Co., Ltd. and on the Investment Committee for the funds that it managed; and was a member of J.P. Morgan Asset Management’s Sustainable Investment Leadership team. Prior to joining the Private Equity Group, Ms. Rosa served as Chief Operating Officer for Asset Management’s North America Sales and Client Service teams. She left J.P. Morgan in 1996 to join Morgan Stanley and returned to J.P. Morgan in 1998. She started her career as a Product Specialist in J.P. Morgan’s Securities Services business in 1992.
Ms. Rosa is a graduate of Franklin & Marshall College, where she serves on the Leadership Council. She and her husband, who live in New Jersey with their four children, are active members and supporters of the Mohonk Preserve, Pablove Foundation, and Tomorrows Children’s Fund.
Katherine Rosa
Global Head of Alternative Investments, J.P. Morgan Private Bank
Dr. Yuanqing Lin is the founder and CEO of Aibee, a leading startup company on total AI solutions. He was the former Head of Baidu Research, which includes Baidu’s Silicon Valley AI Lab (SVAIL), Institute of Deep Learning (IDL), Big Data Lab (BDL), and Augmented Reality Lab (ARL).
Prior to Baidu, he was the former Department Head of Media Analytics at NEC Labs America. Dr. Lin is one of the thirteenth group of the Recruitment Program of Global Experts. He has rich research experiences and achievements in machine learning and computer vision. He was the Area Chair of Neural Information Processing Systems (NIPS) and the Co-Chair of International Workshop on Large Scale Visual Recognition and Retrieval. He has led his team to achieve top performance in several international computer vision benchmarks including the first-year ImageNet Challenge(2010).The technology from his team has widely deployed in many industries.
Dr. Yuanqing Lin
Founder and Chief Executive Officer, Aibee
Rick Harshman is the Managing Director of Asia Pacific for Google’s Cloud business across Asia Pacific. He leads all revenue and go-to-market operations for Google Cloud, including Google Cloud Platform and GSuite (Gmail, Google Docs, Sheets, Slides, Drive, Hangouts).
Prior to joining Google, Mr. Harshman was the Head of ASEAN for Amazon Web Services (AWS). Prior to his role as Head of ASEAN, Mr. Harshman was Head of India for AWS, from where he established the AWS business in India. During his more than six years at AWS, Mr. Harshman was part of the senior leadership team and was critical in driving more than 1,000x growth in revenue.
With over 18 years of experience in sales, management and channel development, Mr. Harshman has lived and worked in the United States, Australia and Singapore. Prior to Google and AWS, Mr. Harshman also held management positions at Akamai Technologies in the United States, Australia and Singapore.
A technology thought leader, Mr. Harshman has been the keynote speaker for many Tier 1 events across Asia Pacific for audiences of more than 1,500. He is a press and analyst spokesperson for Google Cloud, and has been featured in all national dailies and tech publications across ASEAN, and has been interviewed on TV in India, Thailand and Singapore. He is also the Co-Chair for the ICT Committee at the American Chamber of Commerce in Singapore.
Rick Harshman
Managing Director of Asia Pacific for Google’s Cloud
Manuela Veloso is the Head of J.P. Morgan’s AI Research, which pursues fundamental research in areas of core relevance to financial services, including data mining and cryptography, machine learning, explainability and human-AI interaction. J.P. Morgan’s AI Research partners with applied data analytics teams across the firm as well as with leading academic institutions globally.
Professor Veloso is on leave from Carnegie Mellon University as the Herbert A. Simon University Professor in the School of Computer Science, and the past Head of the Machine Learning Department. With her students, she led research in AI, with a focus on robotics and machine learning, having concretely researched and developed a variety of autonomous robots, including teams of soccer robots and mobile service robots. Her robot soccer teams have been RoboCup world champions several times, and the CoBot mobile robots have autonomously navigated for more than 1,000 kilometers in university buildings.
Professor Veloso is the Past President of AAAI, (the Association for the Advancement of Artificial Intelligence), and the Co-Founder, Trustee and Past President of RoboCup. Professor Veloso has been recognized with multiple honors, including being a Fellow of the ACM, IEEE, AAAS and AAAI. She is the recipient of several best paper awards, the Einstein Chair of the Chinese Academy of Science, the ACM/SIGART Autonomous Agents Research Award, an NSF Career Award, and the Allen Newell Medal for Excellence in Research.
Manuela Veloso
Head of A.I. Research, JPMorgan Chase & Co.
Katherine Rosa: We were fortunate to have two CEOs and founders on the panel and I think what we learned from them is that it might be things that collect the data and connect to the internet, but those things then become smart or enabled or tell us and inform things.
So one of the companies is an Internet of Things for the home. So you have a smart refrigerator, stove, kitchen, in all of the appliances, and it enables things such as - I’ve put apples in my refrigerator and suddenly I’m down to my last apple. So it knows that I need to go to the supermarket and buy those types of things.
It seems simple, but if you take that forward to the applications that it could have in in being smart and informing I think it can be really powerful.
Manuela Veloso: That’s right. And, you know, you can imagine that currently when we buy something on Amazon or online we are-, we receive these recommendations ‘why don’t you buy this book? Why don’t you buy this?’
Now, with this Internet of Things, in particular for example in the kitchen, the example that we were like following there, you could very well be at the supermarket and eventually getting like input from your devices on what you should buy. But also the same way that we have recommendations for things that are online, we could get recommendations for ‘oh, with these things that you have in the refrigerator and the meal that you have to prepare for your guests, why don’t you go and buy that ice cream?
It will really match the rest of the meal’, and now leads on ‘by the way, it’s on that aisle’, and you just go there. So it’s now recommendations and suggestions that come not only from your activity in the digital space, but for what’s in your home, and the machine, the AI, may figure out that ‘we don’t have ice cream’ and you didn’t even really think about the ice cream matching the apple pie or something, and then comes like these kind of revelations that will come-,
Katherine Rosa: That’s right.
Manuela Veloso: From learning, from the processing of a lot of data. And let me just add to this kind of like simple example that how-, where does this connection ice cream and apple pie come from? And that’s the role in fact of this Cloud.
So somehow by being able to collect all this data, these patterns that are not personal per se but are patterns of like behaviour of people, of how things connect, how devices, what’s in the refrigerator came up with this great dinner, or all sorts of like relationships, and then by using AI, using the Cloud, it has access to the data that is collected and all these patterns that machine learning really provided.
So there is this combination of devices, data collected, storage and use of this data in the Cloud, and then the actual outcome of such collection of data benefits from the fact that we can do machine learning on the data collected overall in the Cloud. And then we also had another use case, right?
Katherine Rosa: Yeah, we-, and we ended the panel by really talking I think about two things; one is that it’s not a panacea, and that there are threats that that creates, or privacy or cyber security, which other panels touched on, but also that we have a long way to go in this progression.
And so we actually then applied it to how do you think about taking advantage of it, taking advantage of it from an investment perspective, thinking about what might be disrupted, and really I think having a little bit of fun with some of the ideas around as Cloud become commoditised - should I invest behind private companies that are building product for this.
Manuela Veloso: Yes.
Katherine Rosa: And I think really what we came back to was that, again, these are all things, but the things connected together in a smart way enable an intent for information that really can have a positive impact on all sorts of things in our lives.
Manuela Veloso: Yeah, and we really, you know we really want that, to try to find good uses. I think that one thing that we also may have concluded is that the fact that this data, even if collected personally at my home, at someone else’s home, and your user, the supermarket, and all sorts of like, what you do in a shopping mall and so forth, but the fact that this data is gathered into this Cloud in some sense anonymises also the particular behaviour of individual people, and becomes a resource to hopefully improve the lives of many people and make-, simplify also having these differences and this use of data as your personal assistant that helps you in your decisions at a very practical level.
And it’s not just big decisions but it’s like what you should do today. Oh you have too much eggs, I mean now you-, you kind of don’t recall and that thing is your assistant, so, and there is this knowledge. So that’s exactly like what we concluded, but again like one thing I think that’s important for us to understand from a practical point of view is that it’s good to invest on companies or on people that are generating products that can be of relevance to these multiple types of data, from sensory data to speech data to touch data, so who is actually building the infrastructure to learn from all these multi-modal data, that’s what we call.
And then these AI systems that can put it all together to advise you, these assistants, these smart assistants that through feedback, through more data become more useful and eventually have a larger spectrum of benefit to our lives.
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In 2008, there were more Internet connected devices on earth than people. By 2020, the number of Internet-connected devices is expected to reach 20 billion[1]. So what happens when this increasingly interconnected world is mixed with the emerging capabilities of Artificial Intelligence (AI)?
The Artificial Intelligence of Things (or AIoT) can streamline business operations, enhance the security and safety of people, enable more efficient use of power, or even monitor health. And now–with the large scale rollout of 5G cellular networks on the horizon, the capabilities of AIoT could be transformational.
How will 5G enable this change–and what are the timeframes that we should anticipate? With potentially massive volumes of data being collected from the intelligent end devices, how can AI help to analyse this information and make it meaningful. Furthermore - what are the investment opportunities within the value chain?
This article has been developed from the popular panel discussion at the 2019 J.P. Morgan Tech Exchange.
The staggering potential of the AIoT
To come to terms with the transformational nature of 5G technology, we can start by considering the timeframes we associate with everyday digital activities.
The 5G difference
Rick Harshman, Managing Director of Google Cloud for Asia Pacific, says that we need to be bold when we consider how to leverage the IoT for AI.
“In the PC era, communication and connection could be made anytime, but not anywhere,” notes Xiaoping Chen, who is the founder and chief executive officer of Viomi Technologies, a company that produces hardware to support the emerging IoT in the home.
All these responses can be realized without making users aware
Xiaoping Chen
Founder and Chief Executive Officer
Viomi Technologies Co., Ltd
The coming wave of
Internet-connected devices
The place for AI
As internet connectivity expands across the places we live, there is expanding scope to engage with the places, machines and devices we rely on.
“You may order to turn on your car’s air conditioning or make other household devices ready when you are driving back home, or when you are certain miles away from home,” says Chen.
“All these responses can be realized without making users aware,” he goes on. “The system could automatically figure out how many miles you are away from your home, who you are coming back with–and so on.”
Effectively, these capabilities enable the machines we live around to take more sophisticated cues from our behaviour.
“As opposed to having data now only of a nature of speech and text, our machines can respond to images of us or feelings of objects that we touch,” says Manuela Veloso.
“We can now have data about the physical world: how many apples do I have in the refrigerator, or how dry is my skin.”
Evidently, the applications for these capabilities are enormous.
With so much hype and so much excitement associated with these emerging capabilities, it can be difficult to see the most advantageous angle for investment.
Rick Harshman explains that any improved tech infrastructure is a further boost to the already dominant tech players.
“5G for a company like Google Cloud is as an accelerant and an enabler,” he says.
5G for a company like Google Cloud is as an accelerant and an enabler
Rick Harshman
Managing Director, Asia Pacific
Google Cloud
While it’s easy to get excited about the potential for AI, it is important to remember that given data is the key ingredient, security and responsibility are also vital.
Today without trust, you don't have any business.
Alain Crozier
Corporate Vice President, Chairman and Chief Executive Officer of Microsoft (China)
Greater China Region
The AIoT Investment opportunity
“Companies need to really understand and be super transparent on how they use data,’ says Saxena. “And for that you need to have an organization that is strict enough to make sure they can control their information in a certain way.”
Crozier shares the sentiment, asserting that “data businesses (which he considers will make up 99 per cent of future businesses) are going to have to be trusted by their customers, no matter if the consumers are B2B, government, or individuals.”
“Today without trust, you don't have any business.”
With data comes responsibility
I think there are really interesting ways to think about the data you can capture
Xiaoping Chen
Founder and Chief Executive Officer
Viomi Technologies Co., Ltd
He asks us to imagine an oil rig of the future, “where all processes are being transmitted over the network back to a central system that could be a private cloud, or even a public cloud.”
In so doing, you capture the most important element, which is real time data.
“You can start processing that data in real time and then you can start to analyse that data using machine learning and artificial intelligence to create a more robust system.”
So where are we heading?
Xiaoping Chen says that our trajectory starts with the digitalization of all processes, behaviours and preferences of people. Next comes automation; machines “proactively and automatically responding to our needs.”
Third comes “content orientation,” where “more diversified non-functional applications will become available.”
Dr. Yuanqing Lin is the founder and chief executive officer of Aibee, an AI start-up currently focused on the retail and tourism industries.
He works with some of China’s largest companies to find ways of making digitalisation boost their business, and has had already had significant success.
Faced with the challenge of massive queues to access popular attractions at a theme park, his company effectively made each ticket holder’s face into a digital ticket across the entire park, and thus sped up and improved the customer experience.
“I think there are really interesting ways to think about the data you can capture,” he says. “And with computational power and intelligence, we have something really actionable from a business perspective, but also a personal safety perspective.”
“You don't really become a modern company because you have one or two applications that are AI run,” says Saxena. “You need to really build your structure, because the real value will be when you start attacking your core business processes.”
The staggering potential of the AIoT
Katherine Rosa
Global Head of Alternative Investments
J.P. Morgan Private Bank
Artificial Intelligence (AI) is set to transform industries large and small, and fundamentally shift the way we think about data collection. Just as the internet crossed the mass consumer threshold, the ability of AI to process large amounts of data will make it a critical competitive advantage in the very near term.
This panel discussion at the 2019 J.P. Morgan Tech Exchange set out to inform participants of the game-changing nature of AI, and provide practical steps for individuals and business owners to engage with this important, but often misunderstood, capability.
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The staggering potential of the AIoT
What happens when Artificial Intelligence meets the Internet of Things? In this video J.P. Morgan’s Katherine Rosa and Manuela Veloso shed light on the array of applications for this new capability, whether in the home or across our cities.
Katherine Rosa
Global Head of Alternative Investments
J.P. Morgan Private Bank
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A New Drive - Transcript
[Music]
Virginia Fang: How the automotive industry, a 3.5 trillion industry, is undergoing a radical transformation.
China is and will lead the way, and it is expected that by 2025 China's EV penetration will be up to, or close to 20 percent.
The panel addressed several points as to why China is going to be leading the EV market penetration.
One obviously is the strong policy commitment, so even though they announced recent subsidy cuts, the panellists felt that the subsidy cuts were positive for the industry as it favours the middle segment versus the lower tier segment.
The second point that the panellists addressed was the strong consumer demand from the generation born in the '90s.
The panellists mentioned that they're not only tech savvy, they're open to change and not afraid to adopt new idea.
This generation's are also converging with their US and European counterparts, and the panellists also mentioned that this generation is looking to the car almost as a smart device.
Another point that the panellists pointed out was that despite technological advances in battery range and density China is already able to produce EVs with a range of up to 600 kilometres, which is competitive to the traditional cars manufactured today.
And finally with the EV revolution here to stay copper, cobalt and nickel is the new oil of EV cars.
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Meet the Panelists
As Co-Portfolio Manager of Emerging Market Themes, Simon Henry manages equity assets on behalf of his clients, focusing on investment opportunities that arise from structural changes happening in the Emerging Markets and drawing on research from Wellington Management’s global industry analysts, equity portfolio managers and team analysts.
Prior to joining Wellington Management in 2008, Mr. Henry spent five years at Russell Investment Group in London (2003–2008), where he worked as a Portfolio Analyst and then as a Currency Research Analyst on the Global Fixed Income team, both in the Investment Management and Research departments.
Mr. Henry has a master’s degree in Materials, Economics and Management from St. Anne’s College, Oxford University (2003). Additionally, he holds the Chartered Financial Analyst® designation and is a member of the CFA Institute.
Simon Henry
Managing Director and Portfolio Manager, Wellington Management
Dr. Brian Gu is Vice Chairman and President of XPENG Motors, a leading electric vehicle company in China. He is responsible for XPENG’s strategy, finance, fundraising, investments and globalization efforts.
Prior to joining XPENG, Dr. Gu was a Managing Director, Chairman of Asia Pacific Investment Banking and a member of J.P. Morgan’s Global Strategic Advisory Council, and was instrumental in building J.P. Morgan’s franchise in the Asia Pacific Region. Between 1998 and 2004, Dr. Gu also served as an M&A Banker at Lehman Brothers in New York.
Dr. Gu has advised numerous global leading companies on their strategies and landmark transactions totaling over $200 billion. He currently serves as a Co-Chairman of J.P. Morgan’s Asia Pacific Council. He is a member of the Greater China Advisory Committee of Yale School of Management, as well as a Trustee of Yale China Association.
Dr. Gu holds an M.B.A. from Yale University, a Ph.D. in Biochemistry from the University of Washington Medical School, and a bachelor’s degree in Chemistry from the University of Oregon.
Dr. Brian Gu
Vice Chairman and President, XPeng Motors
For more than 25 years, international financier Robert Friedland has been recognized by leaders of the international financial sector and mineral resource industries as an entrepreneurial explorer, technology innovator and company builder. Mr. Friedland has successfully developed a portfolio of respected public and private companies whose initiatives have led to several of the world’s most significant mineral discoveries and mine developments, applications of disruptive technologies and contributions to significant economic growth in established and emerging markets in Asia, the Asia Pacific Region, Sub-Saharan Africa and the Americas.
Mr. Friedland’s enterprise and leadership gained prominent, industry recognition in January 2016 when he was inducted into the prestigious Canadian Mining Hall of Fame. The citation acknowledged his company-building and exploration achievements, honouring him as “a dynamic, transformative force in the Canadian and international mining industries” and “one of the most recognized mining personalities and achievers in the world”. Mr. Friedland said at the ceremony that he shared the honour with several teams of dedicated individuals whose efforts with his companies during the past 30 years had contributed to a series of notable discoveries and new mines. Housed at the University of Toronto, the Hall of Fame is featured in the Treasures from Earth galleries at the Royal Ontario Museum, Toronto.
In April 2017, the Northern Miner, the century-old flagship of Canada’s leading mining-industry media group, announced that Mr. Friedland would receive a Lifetime Achievement Award at the Canadian Mining Symposium held at Canada House in London, England. This followed the U.K-based Mining Journal’s successive rankings of Mr. Friedland in 2016 and 2015 as one of the Top 20 Most Influential People shaping the future of the world of mining, declaring him “the undisputed king of junior development.” Also in 2016, Canada’s Financial Post magazine named Mr. Friedland one of 25 members of its inaugural Power List — termed “the biggest, buzziest and most influential movers and shakers in Canada and beyond”.
He graduated from Reed College with an undergraduate degree in Political Science.
Robert Friedland
Founder and Chairman, Ivanhoe Capital Corporation, Co-Chairman, Clean TeQ
Jinglei (Ramon) Cheng is currently Chairman and a Member of the Board of China Operation, CANOO and Partner and President AGRC (PE Fund).
Prior to this Mr. Cheng had a long and distinguished career at SAICMOTOR where he held positions including Chief Technology Officer responsible for strategy, technology, IT and Big Data, Chairman of SAICMOTOR VC and Innovation Center in Silicon Valley and Chairman of Dalian Sunrise Power. Mr. Cheng started his career with Volkswagen where he was Division Manager across multiple departments.
Jinglei (Ramon) Cheng
Member of Board and Chairman of China Operation, CANOO
The 5G difference
ForXiaoping Chen, now is “an ideal time to invest in the AIoT,” because the companies currently pioneering the space are able “to quickly turn research results into products, achieve marketization and commercial realization.”
But not all panellists have such a bullish perspective.
“I think that the companies I would invest in don’t exist yet,” says Manuela Veloso.
Xiaoping Chen is Founder and CEO of Viomi. Mr. Chen established the Company in 2014, ushering in the era of IoT @ Home. In September 2018, after only four years of operations, Viomi successfully completed its IPO and was listed on Nasdaq under the stock code VIOT. Viomi is the first public IoT @ Home company, a national high-tech enterprise and a Xiaomi ecosystem company.
Viomi has taken the lead in AI + IoT integration, breaking the boundaries of home appliances, smart devices, furniture and vehicle related products. The Company strives to establish integrated and complete solutions for IoT @ Home to realize the full potential of “user-car-home” interconnectivity.
Viomi has cooperated with Ms. Yang Mi, a popular celebrity in China, to serve as its brand ambassador, and established its unique F2C new retail platform, which encompasses over 1,500 Viomi-branded experience stores nationwide, bringing the next-generation smart home experience directly to consumers.
As a trendsetter and pioneer in the transformation phase of the traditional home appliancees industry to IoT @ Home, Viomi, in partnership with the International Data Corporation (IDC), recently issued the Consumer IoT Outloook 2025 White Paper in March 2019, which established six key industry trends, leading the overall development of the industry.
Xiaoping Chen
Founder and Chief Executive Officer, Viomi Technologies Co., Ltd
For instance, if you were to download a two-hour movie with only a 3G signal, it would take 26 hours. With a 4G connection, this action takes around six minutes.
But consider this: in the looming era of 5G, that same download would take just four seconds.
Evidently, the sheer volume of data flow being enabled in unlike anything we have every experienced.
Professor Manuela Veloso, Head of AI Research at J.P. Morgan, explains that the infrastructure that enables these capabilities is fundamentally different from what is deployed for 4G.
While 4G relies on a relatively small number of large base station towers to emit a signal, 5G requires much larger wave frequencies that have a greater potential to be blocked by obstacles across cities.
“We are going to have to install in our physical environment,” says Veloso. “That means on light poles, on buildings… much smaller bases to keep these connections going.”
Effectively, 5G is akin to an environment occupied with slightly larger versions of the wireless routers that many of us use in our homes.
Apoorv Saxena joins JPMorgan Chase & Co. as the Global Head of Artificial Intelligence Technology for Asset & Wealth Management and Global Head of Firmwide Artificial Intelligence and Machine Learning Services. He has 19+ years of software engineering, strategy and management consulting, product management leadership, and entrepreneurial experience in the technology industry.
Mr. Saxena comes to the firm from Google, where he spent the past six years. He was the Product & Business lead for Google Cloud AI Solutions, managing six product lines. He was responsible for product vision, growth and revenue, user experience and resource planning. He led the Google Apps marketplace and platform responsible for two generations of Apps intelligence platforms and integrations. He launched three industry-leading Cloud AI products as well as launched and grew Cloud AutoML, Cloud Natural Language API and Cloud Translation API products. Mr. Saxena set the vision, strategy and got funding for two stealth mode 2 Cloud AI solutions. As the lead for Google Apps marketplace, he redesigned the end-to-end user experience on material design principles, and defined and built a new pricing and payment platform for emerging markets.
Prior to Google, Mr. Saxena was the Co-Founder of AI Frontiers (the leading Applied AI conference in the Bay area), and Okati Inc. (a mobile payment startup providing instant credit). He also worked at McKinsey & Co. and Alcatel-Lucent, where he delivered significant impact in strategy, operations, design and build, and sales and marketing for clients in the financial and tech industries.
Mr. Saxena has received numerous awards and has been published in the Harvard Business Review, Knowledge@Wharton, and has been interviewed by multiple top publishers on AI technology. He has also been a keynote speaker at many industry AI conferences.
Mr. Saxena has a Bachelor of Technology in Electrical Engineering from Indian Institute of Technology, Mumbai, a Master of Science in Electrical and Computer Engineering from Purdue University of Indiana, and a Master of Business Administration, major in Finance & Entrepreneurial Management, from the Wharton School in Pennsylvania. He resides in California with his family.
Apoorv Saxena
Head of Firmwide Artificial Intelligence and Machine Learning Services, JPMorgan Chase & Co.
[1]Source: Gartner. Data as of April 2019
[1] Source: Gartner. Data as of April 2019
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Manuela Veloso
Head of A.I. Research
JPMorgan Chase & Co.
Manuela Veloso
Head of A.I. Research
JPMorgan Chase & Co.