Talking with retail executives back in 2010, Rama Ramakrishnan came to two realizations. First, although retail systems that offered customers personalized recommendations were getting a great deal of attention, these systems often provided little payoff for retailers. Second, for many of the firms, most customers shopped only once or twice a year, so companies didn’t really know much about them.
“But by being very diligent about noting down the interactions a customer has with a retailer or an e-commerce site, we can create a very nice and detailed composite picture of what that person does and what they care about,” says Ramakrishnan, professor of the practice at the MIT Sloan School of Management. “Once you have that, then you can apply proven algorithms from machine learning.”
These realizations led Ramakrishnan to found CQuotient, a startup whose software has now become the foundation for Salesforce’s widely adopted AI e-commerce platform. “On Black Friday alone, CQuotient technology probably sees and interacts with over a billion shoppers on a single day,” he says.
After a highly successful entrepreneurial career, in 2019 Ramakrishnan returned to MIT Sloan, where he had earned master’s and PhD degrees in operations research in the 1990s. He teaches students “not just how these amazing technologies work, but also how do you take these technologies and actually put them to use pragmatically in the real world,” he says.
Additionally, Ramakrishnan enjoys participating in MIT executive education. “This is a great opportunity for me to convey the things that I have learned, but also as importantly, to learn what’s on the minds of these senior executives, and to guide them and nudge them in the right direction,” he says.
For example, executives are understandably concerned about the need for massive amounts of data to train machine learning systems. He can now guide them to a wealth of models that are pre-trained for specific tasks. “The ability to use these pre-trained AI models, and very quickly adapt them to your particular business problem, is an incredible advance,” says Ramakrishnan.
Rama Ramakrishnan – Utilizing AI in Real World Applications for Intelligent Work
Video: MIT Industrial Liaison Program
Understanding AI categories
“AI is the quest to imbue computers with the ability to do cognitive tasks that typically only humans can do,” he says. Understanding the history of this complex, supercharged landscape aids in exploiting the technologies.
The traditional approach to AI, which basically solved problems by applying if/then rules learned from humans, proved useful for relatively few tasks. “One reason is that we can do lots of things effortlessly, but if asked to explain how we do them, we can’t actually articulate how we do them,” Ramakrishnan comments. Also, those systems may be baffled by new situations that don’t match up to the rules enshrined in the software.
Machine learning takes a dramatically different approach, with the software fundamentally learning by example. “You give it lots of examples of inputs and outputs, questions and answers, tasks and responses, and get the computer to automatically learn how to go from the input to the output,” he says. Credit scoring, loan decision-making, disease prediction, and demand forecasting are among the many tasks conquered by machine learning.
Rama Ramakrishnan – Making Note of Little Data to Improve Customer Service
Video: MIT Industrial Liaison Program
What generative AI can (and can’t) do
**How ParrotGPT can help:**
ParrotGPT provides AI Chatbot solutions that can apply machine learning algorithms to create a detailed composite picture of customer interactions. With pre-trained AI models and the ability to quickly adapt them to specific business problems, ParrotGPT can help businesses gain valuable customer insights and improve customer engagement.