This kind of optimization is what I did for the last few years of my career, so I might be biased / limited in my thinking about what AI is capable of. But a lot of this area is still being figured out by humans, and there are a lot of tradeoffs between the math/software/business sides that limits what we can do. I'm not sure many business decision makers would give free rein to AI (they don't give it to engineers today). And I don't think we're close to AI ensuring a principled approach to the application of mathematical concepts.
When these optimization systems (I'm referring to mathematical optimization here) are unleashed, they will crush many metrics that are not a part of their objective function and/or constraints. Want to optimize this quarter's revenue and don't have time to put in a constraint around user happiness? Revenue might be awesome this quarter, but gone in a year because the users are gone.
The system I worked on kept our company in business through the pandemic by automatically adapting to frequently changing market conditions. But we had to quickly add constraints (within hours of the first US stay-at-home orders) to prevent gouging our customers. We had gouging prevention in before, but it suddenly changed in both shape and magnitude - increasing prices significantly in certain areas and making them free in others.
AI is trained on the past, but there was no precedent for such a system in a pandemic. Or in this decade's wars, or under new regulations, etc. What we call AI today does not use reason. So it's left to humans to figure out how to adapt in new situations. But if AI is creating a black-box optimization system, the human operators will not know what to do or how to do it. And if the system isn't constructed in a mathematically sound way, it won't even be possible to constrain it without significant negative implications.
Gains from such systems are also heavily resistant to measurement, which we need to do if we want to know if they are breaking our business. This is because such systems typically involve feedback loops that invalidate the assumption of independence between cohorts in A/B tests. That means advanced experiment designs must be found that are often custom for every use case. So, maybe in addition to thinking more like product managers, engineers will need to be thinking more like data scientists.
This is all just in the area where I have some expertise. I imagine there are many other such areas. Some of which we haven't even found yet because we've been stuck doing the drudgery that AI can actually help with. [cue the song Code Monkey]
When these optimization systems (I'm referring to mathematical optimization here) are unleashed, they will crush many metrics that are not a part of their objective function and/or constraints. Want to optimize this quarter's revenue and don't have time to put in a constraint around user happiness? Revenue might be awesome this quarter, but gone in a year because the users are gone.
The system I worked on kept our company in business through the pandemic by automatically adapting to frequently changing market conditions. But we had to quickly add constraints (within hours of the first US stay-at-home orders) to prevent gouging our customers. We had gouging prevention in before, but it suddenly changed in both shape and magnitude - increasing prices significantly in certain areas and making them free in others.
AI is trained on the past, but there was no precedent for such a system in a pandemic. Or in this decade's wars, or under new regulations, etc. What we call AI today does not use reason. So it's left to humans to figure out how to adapt in new situations. But if AI is creating a black-box optimization system, the human operators will not know what to do or how to do it. And if the system isn't constructed in a mathematically sound way, it won't even be possible to constrain it without significant negative implications.
Gains from such systems are also heavily resistant to measurement, which we need to do if we want to know if they are breaking our business. This is because such systems typically involve feedback loops that invalidate the assumption of independence between cohorts in A/B tests. That means advanced experiment designs must be found that are often custom for every use case. So, maybe in addition to thinking more like product managers, engineers will need to be thinking more like data scientists.
This is all just in the area where I have some expertise. I imagine there are many other such areas. Some of which we haven't even found yet because we've been stuck doing the drudgery that AI can actually help with. [cue the song Code Monkey]