John Berkowitz, Co-Founder and CEO of Ojo Labs, on the Future of AI in Business
“Artificial Intelligence”… “Machine learning” … “Data Analytics” — three buzzwords whose meanings have evolved over the past few decades. In the past, many saw AI as a futuristic technology that would lead robots into taking over the world. In recent years, however, different forms of AI-based technologies, from machine learning algorithms to more advanced deep-learning models, have penetrated nearly all of the different sectors in the modern business world. The value, practicality, and ubiquity of artificial intelligence-centered technologies are rapidly evolving, and many are unaware of how often such practices impact their day-to-day lives. I recently had the chance to interview John Berkowitz, CEO and co-founder of Ojo labs, an Austin, TX based startup that uses AI to improve the home-buying process for both buyers and agents. Before Ojo, Berkowitz co-founded Yodle, a SaaS platform to help small businesses develop their marketing platform and expand their presence online. In 2016, Yodle sold for $342 million.
I began by asking Berkowitz a broad question — how does he see AI changing in the future?
How the AI Market will evolve in the near future:
“One thing I talk about is AI in business is a few things,” Berkowitz said. “It is a marketing tool; it’s basically an idea that says we’re doing the same task better. Whether it’s a rules algorithm or a complex deep learning algorithm,” Berkowitz said. “Where there is actually progress is with machine learning algorithms that have better processes than they did in the past. ”
Berkowitz talked about how AI has become more widely adopted as a practical tool for many businesses, rather than “a field in and of itself”, as he put it.
“AI used to be a business. Now, it’s ‘my business uses AI.’ Machine learning is less of a sexy word, it’s more table stakes, and you kind of have to just figure out when to use it and when not to.” Berkowitz also pointed out a couple of other potential changes in the AI market. He mentioned that public datasets are on the rise, so proprietary datasets may become less important. He also highlighted the fact that the increased use of machine learning models with regard to data could result in new ethical and legal dilemmas.
We have seen companies like Apple, Intel, and AMD develop with the growth of personal computers and semiconductors. The development of software allowed for the creation of companies such as Microsoft and Adobe; the internet spurred the rise of giants such as Amazon and Google. More recently, we saw the rise of cloud computing lead to new companies such as SalesForce and SAP becoming major players in the tech world. With many new startups focusing on AI, it appears to be the new centerpiece technology of the business world. What innovative startup will take the reigns in our new AI-driven business world?
“We saw a lot of new companies formed with the development of personal computers, software, the internet, cloud computing. Is AI the new hot subfield drawing in new startups?”
“Yeah, I think so. I think it’s more cloud and apps. Cloud is more of a method and a tool [than a medium],” Berkowitz said. “AI feels more iterative and will have more specific impacts on businesses. Cloud just made businesses faster and cheaper.” Berkowitz also discussed how artificial intelligence and machine learning have evolved into being processes that are ubiquitously used to improve operations and development, rather than being products promoted and sold on their own.
“Even in recent years, a lot of people would not have envisioned AI being applied seamlessly to a field such as real estate. Do you see it continuing to be applied to new fields?”
“Yeah, I think specialized AI, not general intelligence. Specialized AI will be used in every single industry. Construction, politics, media, real estate, financial services, healthcare.” Berkowitz highlighted the modern ubiquity of artificial intelligence, and its continuous growth. “It’s gonna be everywhere. Nothing will be untouched by it.” While Machine Learning and AI have been around as technologies for some time, we are seeing a rise in their applications to more specific subtasks. Many new AI-centered startups focus on leveraging the technology to optimize processes within a specific field. Berkowitz also mentioned a couple of potential roadblocks to the widespread outreach of AI. “The only thing that will stop the decision making made by models is tiny data sets and regulation.” With regard to regulation, Berkowitz also mentioned a specific legal dilemma — between engineers, business owners, and dataset creators, who will be held responsible for legal issues?
“Do you see a new way that AI will be used with regard to the creation and development of startups in the near future?”
“I think that there will be opportunities to do more bold things using machine learning. What machine learning can do is make processes cheaper and better. It just takes someone coming in and deploying a new way of doing things as cheaper and more efficient.” Berkowitz talked about the advantage that new startups have over established businesses with regard to the matter. Because many older, established companies use legacy processes that are not built around modern technology, switching to AI-based systems would force them to restructure. New companies, however, are able to quickly integrate AI solutions into their business. “You can go from zero to a real player,” Berkowitz commented, referring to new startups.
While we have seen the concepts of artificial intelligence, machine learning, and data analytics being technologically developed and engineered for years, such subfields are now making a more widespread impact on companies than ever before. Improvements in machine learning algorithms, coupled with the growth of large amounts of public data, open new doors for all sectors of the corporate world. Gone are the days where AI was seen as a mysterious, far-off technological mystery. We will undoubtedly see new giants form with AI-based processes at their backbone, in fields we would never have imagined to even be touched by technology in the past. We will also undoubtedly see the rapid growth of new startups leveraging such technology — as Berkowitz put it, “You can go from zero to a real player”.
