1
00:00:00,050 --> 00:00:03,680
Lesson defining business objectives and AI system scope.

2
00:00:03,980 --> 00:00:09,920
Defining business objectives and the scope of an AI system is a critical phase in the AI development

3
00:00:09,920 --> 00:00:13,070
life cycle, particularly during the planning stage.

4
00:00:13,460 --> 00:00:19,730
This foundational step ensures that the AI initiative aligns with the strategic goals of the organization,

5
00:00:19,730 --> 00:00:23,840
maximizing the potential for success and minimizing risks.

6
00:00:25,100 --> 00:00:30,230
To begin with, business objectives serve as the guiding principles that inform the development and

7
00:00:30,230 --> 00:00:32,120
implementation of AI systems.

8
00:00:32,150 --> 00:00:37,550
These objectives must be clearly articulated, measurable, and achievable to provide a solid framework

9
00:00:37,550 --> 00:00:38,870
for the AI project.

10
00:00:40,520 --> 00:00:45,710
The primary goal when defining business objectives is to ensure that the AI system addresses specific

11
00:00:45,710 --> 00:00:48,080
needs or problems within the organization.

12
00:00:48,800 --> 00:00:55,430
This involves a thorough analysis of existing processes, challenges, and opportunities for improvement.

13
00:00:56,240 --> 00:01:02,900
For instance, a retail company might aim to enhance customer experience through personalized recommendations.

14
00:01:03,350 --> 00:01:08,320
By setting this as a business objective, the company can direct its efforts towards developing an AI

15
00:01:08,350 --> 00:01:13,330
system capable of analyzing customer data and generating tailored suggestions.

16
00:01:13,630 --> 00:01:19,660
This targeted approach not only streamlines the development process, but also ensures that the AI system

17
00:01:19,660 --> 00:01:21,310
delivers tangible value.

18
00:01:23,380 --> 00:01:30,370
To effectively define business objectives, organizations must engage stakeholders across various departments.

19
00:01:30,880 --> 00:01:37,000
This collaborative approach ensures that diverse perspectives are considered, and the AI system addresses

20
00:01:37,000 --> 00:01:39,850
the needs of different areas within the organization.

21
00:01:40,630 --> 00:01:46,270
For example, involving the marketing team in the objective setting process can provide insights into

22
00:01:46,270 --> 00:01:51,370
customer behavior, which can be leveraged to refine the AI systems capabilities.

23
00:01:51,880 --> 00:01:57,700
Additionally, input from the IT department can help identify technical constraints and opportunities,

24
00:01:57,700 --> 00:02:02,170
ensuring that the proposed AI solution is feasible and scalable.

25
00:02:03,490 --> 00:02:09,050
Once business objectives are established, the next step is to define the scope of the AI system.

26
00:02:09,530 --> 00:02:15,590
The scope delineates the boundaries and limitations of the AI project, specifying what the system will

27
00:02:15,620 --> 00:02:16,910
and will not do.

28
00:02:17,420 --> 00:02:23,090
This is crucial for managing expectations and resources, as it helps prevent scope creep and ensures

29
00:02:23,090 --> 00:02:25,670
that the project remains focused and achievable.

30
00:02:26,450 --> 00:02:32,420
Defining the scope involves identifying key functionalities, data requirements, and performance metrics.

31
00:02:32,450 --> 00:02:37,850
For instance, if the objective is to develop an AI powered customer support system, the scope might

32
00:02:37,880 --> 00:02:43,640
include capabilities such as natural language processing, sentiment analysis, and automated response

33
00:02:43,640 --> 00:02:44,480
generation.

34
00:02:46,610 --> 00:02:52,340
A well defined scope also facilitates effective project management by providing a clear roadmap for

35
00:02:52,340 --> 00:02:54,950
development, testing and deployment.

36
00:02:55,280 --> 00:03:02,090
It helps allocate resources efficiently, ensuring that time, budget and personnel are utilized optimally.

37
00:03:02,390 --> 00:03:08,000
Moreover, a clear scope enables better risk management by identifying potential challenges and dependencies

38
00:03:08,000 --> 00:03:09,760
early in the project life cycle.

39
00:03:09,760 --> 00:03:15,880
For example, if the AI system relies on large volumes of data, the scope should include provisions

40
00:03:15,880 --> 00:03:22,630
for data collection, storage, and processing to mitigate risks related to data availability and quality.

41
00:03:23,590 --> 00:03:29,200
In addition to technical considerations, ethical and regulatory factors must be incorporated into the

42
00:03:29,200 --> 00:03:29,500
scope.

43
00:03:29,500 --> 00:03:30,340
Definition.

44
00:03:30,880 --> 00:03:37,000
As AI systems increasingly impact various aspects of society, it is imperative to ensure that they

45
00:03:37,000 --> 00:03:39,280
are developed and deployed responsibly.

46
00:03:40,000 --> 00:03:45,280
This involves adhering to relevant laws and regulations such as data privacy and protection standards,

47
00:03:45,280 --> 00:03:50,560
and addressing ethical concerns related to bias, transparency and accountability.

48
00:03:51,070 --> 00:03:56,410
For example, when developing an AI system for hiring, the scope should include measures to prevent

49
00:03:56,410 --> 00:03:59,920
discrimination and ensure fairness in the selection process.

50
00:04:02,080 --> 00:04:08,290
To substantiate these points, consider the example of a financial institution aiming to implement an

51
00:04:08,290 --> 00:04:10,240
AI system for credit scoring.

52
00:04:10,810 --> 00:04:16,200
The business objective might be to improve the accuracy and efficiency of credit risk assessments.

53
00:04:16,860 --> 00:04:22,770
By setting this objective, the institution can focus on developing an AI model that analyzes diverse

54
00:04:22,770 --> 00:04:28,800
data sources, such as transaction history and social media activity, to generate more accurate credit

55
00:04:28,800 --> 00:04:29,400
scores.

56
00:04:29,400 --> 00:04:35,640
The scope of the project would then specify the types of data to be used, the algorithms to be employed,

57
00:04:35,640 --> 00:04:40,650
and the performance metrics to be tracked, such as accuracy and processing time.

58
00:04:41,070 --> 00:04:46,410
Additionally, the scope would include provisions for compliance with regulations like the General Data

59
00:04:46,410 --> 00:04:51,300
Protection Regulation to ensure that customer data is handled responsibly.

60
00:04:53,130 --> 00:04:59,040
Furthermore, defining the scope provides a basis for evaluating the success of the AI system.

61
00:04:59,460 --> 00:05:05,430
By establishing clear performance metrics and benchmarks, organizations can assess whether the AI system

62
00:05:05,430 --> 00:05:07,710
meets the defined business objectives.

63
00:05:07,710 --> 00:05:13,320
For instance, if the objective is to reduce customer churn, the scope might include metrics such as

64
00:05:13,320 --> 00:05:17,590
churn rate, customer satisfaction scores, and retention rates.

65
00:05:18,040 --> 00:05:24,070
By monitoring these metrics, the organization can determine the effectiveness of the AI system and

66
00:05:24,070 --> 00:05:27,430
make data driven decisions for continuous improvement.

67
00:05:28,570 --> 00:05:34,330
In conclusion, defining business objectives and the scope of an AI system is a pivotal step in the

68
00:05:34,330 --> 00:05:36,070
AI development life cycle.

69
00:05:36,400 --> 00:05:41,860
It ensures that the AI initiative is aligned with the strategic goals of the organization, addresses

70
00:05:41,860 --> 00:05:48,700
specific needs, and delivers measurable value by engaging stakeholders, setting clear objectives,

71
00:05:48,700 --> 00:05:50,200
and delineating the scope.

72
00:05:50,230 --> 00:05:55,330
Organizations can enhance project management, resource allocation, and risk mitigation.

73
00:05:55,810 --> 00:06:01,330
Additionally, incorporating ethical and regulatory considerations into the scope definition ensures

74
00:06:01,330 --> 00:06:04,660
that AI systems are developed and deployed responsibly.

75
00:06:05,350 --> 00:06:11,680
Through careful planning and execution, organizations can leverage AI to drive innovation, efficiency,

76
00:06:11,680 --> 00:06:16,360
and competitive advantage in an increasingly complex and dynamic environment.