Artificial Intelligence :
why it is a crucial technology for europe to invest in ?

an interview with Dr. Yohann Tschudi

The innovation accelerator BLUMORPHO is partner of the INPHO Venture Forum. To be able to accompany its clients in their innovation process, BLUMORPHO has a very closed look at the progress being made in emerging technologies and digitisation. Artificial Intelligence is one of those emerging technologies that is deemed of crucial importance where Europe should invest more not to fall behind USA and China. It is estimated that when North America invest between $15-23 billion, Europe is far behind with an investment estimated around $4 billion (McKinsey&Company).

BLUMORPHO interviews Dr. Yohann Tschudi, Software & Market Analyst at Yole Développement (Yole) who has just published an article on this issue.

As a Software & Market Analyst, Dr. Yohann Tschudi is a member of the MEMS & Sensors business unit at Yole Développement (Yole). Yohann is daily working with Yole’s analysts to identify, understand and analyze the role of the software parts within any semiconductor products, from the machine code to the highest level of algorithms. Market segments especially analyzed by Yohann include big data analysis algorithms, deep/machine learning, genetic algorithms, all coming from Artificial Intelligence (IA) technologies.
Yohann has a PhD in High Energy Physics and a master degree in Physical Sciences from Claude Bernard University (Lyon, France).

Yohann, you emphasize that the last century was rich in innovation, especially in mathematics, giving hope of reaching artificial intelligence, but many technical or conceptual gaps have buried the various initiatives. What are the changes that occurred recently which can make us think this is now to our reach ?

Thanks to tremendous progress over the past twenty years in terms of computational capacity, data accumulation, improvements in mathematical tools, all at reduced cost, we actually can see the birth of Artificial Intelligence (AI).
In order to make a machine capable of understanding the world around it, technology has been inspired by biology. 80% of the information enabling humans to locate their place in, and interact with, their universe passes through their eyes. Much of the research in AI has therefore focused on the ability to analyze images from vision systems. The other main inspiration from biology is the mathematical structure that allows the machine to analyze these images: artificial neural networks, a miniature structural copy of the human brain.

According to you, what are the more promising progress that have been made recently ?

Deep learning has been very successful in many segments over the past ten years. Image-based technologies include facial recognition, iris and gesture monitoring, object and free space detection, and more recently, behavioural recognition. In terms of the market, the most spectacular progress can be noted in the car, as these technologies are used in ADAS for the detection of obstacles and the recognition of signs, traffic lights, cars, pedestrians and assorted others […]

However, although those progress seem very promising, Europe is not investing enough in Artificial intelligence and let the US and China lead the market for the moment.

Well indeed, the major players in each of these areas are well known. There are Google, Amazon, Facebook, Apple. And the investment of these companies in the AI field has been consistent over the last ten years. At Yole, we still expect a 50% CAGR until 2025, with revenues mainly focused on technologies using deep learning. Yole is expecting that almost 50% of the US$ 50 billion expected in 2025 will come from technologies using its algorithms . […]

What are the main drivers of those growing markets?

As its momentum continues, AI for vision systems promises a bright tomorrow, both at the hardware level with the arrival on the market of dedicated processors, and at the software level with increasingly powerful algorithms to achieve very great precision in the recognition of objects, faces and gestures. The markets to follow are firstly, the automotive market with all the ADAS technologies providing a direct route to autonomy; secondly, the mobile with security systems for the authentication of the individual (unlocking, payment); and then biometrics and its applications in the industrial sectors, surveillance, security, and, to a lesser extent, the smart building and smart home segments. Investments, acquisitions and partnerships are numerous, and they promise to be substantial in the coming years, enough to expect rapid growth and income.

Thanks you Yohann for this kind introduction to the current issues at stake in AI business development.

The complete article written by Dr. Yohann Tschudi will be published in Vision Systems Design magazine, April 2018 issue and related website.

INPHO® Venture Summit, the event for executives active in smart technologies and deep tech innovations will held its 6th edition on 11th & 12th October 2018, in Bordeaux. The event will be chaired by Georges Ugras, Managing Director IBM Venture Capital Group.

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