Let’s face it, fad or not, companies are starting to ask themselves how they could possibly use machine learning and AI technologies in their organization. Many are being lured by the promise of profits by discovering winning patterns with algorithms that will enable solid predictions… The reality is that most technology and business professionals do not have sufficient understanding of how machine learning works and where it can be applied.  For a lot of firms, the focus still tends to be on small-scale changes instead of focusing on what really matters…tackling their approach to machine learning.

In the recent Wall Street Journal article, Machine Learning at Scale Remains Elusive for Many Firms, Steven Norton captures interesting comments from the industry’s data science experts. In the article, he quotes panelists from the MIT Digital Economy Conference in NYC, on businesses current practices with AI and machine learning. All agree on the fact that, for all the talk of Machine Learning and AI’s potential in the enterprise, many firms aren’t yet equipped to take advantage of it fully.

Panelist,  Michael Chui, partner at McKinsey Global Institute states that “If a company just mechanically says OK, I’ll automate this little activity here and this little activity there, rather than re-thinking the entire process and how it can be enabled by technology, they usually get very little value out of it. “Few companies have deployed these technologies in a core business process or at scale.”

Panelist, Hilary Mason, general manager at Cloudera Inc., had this to say, “With very few exceptions, every company we work with wants to start with a cost-savings application of automation.” “Most organizations are not set up to do this well.”

Data has always been important to business. While it wasn't long ago that businesses kept minimal information on people who bought their products, nowadays companies keep vast amounts of data. In the late 20th century, marketers began to take demographics seriously. It was hard to keep track of so much information without the help of computers.

Only large companies in the '60s and '70s could afford the research necessary to deliver real marketing insight. The marketers of yesteryear relied upon focus groups and expensive experiments to gauge consumer behavior in a controlled environment. Today even the smallest of companies can have access to a rich array of real-world data about their consumers' behavior and their consumers. The amount of data that is stored today dwarfs the data of only a few years ago by several orders of magnitude.

So what kind of information are businesses storing for marketing purposes? Some examples include:

- Demographic information — age, gender, ethnicity, education, occupation and various other individual characteristics.

There has been and continues to be a plethora of observational studies by different researchers in the publishing industry focused on how e-books have affected hard-copy book sales. Evidence from these studies has indicated that there is a significant and monumental shift away from hard-copy books to e-books.[1]These findings precipitate fears that hard-copy books might become more expensive in the near future as they begin to be less available.  This scenario could escalate to the point where only collectors of hard-copy books are willing to pay the high price for ownership.

The founder of Amazon, Jeff Bezos, made a statement in July 2010 that sales of digital books had significantly outstripped U.S. sales of hard-copy. He claimed that Amazon had sold 143 digital books for its e-reader, the Kindle, for every 100 hard-back books over the past three months. The pace of this change was unprecedented;  Amazon said that in the four weeks of June 2010, the rate of sales had reached 180 e-books for every 100 hard-backs sold. Bezos said sales of the Kindle and e-books had reached a "tipping point", with five authors including Steig Larsson, the writer of Girl with a Dragon Tattoo, and Stephenie Meyer, who penned the Twilight series, each selling more than 500,000 digital books.[2] Earlier in July 2010, Hachette said that James Patterson had sold 1.1m e-books to date.

According to a report made by Publishers Weekly, for the first quarter of 2011, e-book sales were up 159.8%; netting sales of $233.1 million. Although adult hard-cover and mass market paperback hard-copies had continued to sell, posting gains in March, all the print segments had declined for the first quarter with the nine mass market houses that report sales. Their findings revealed a 23.4% sales decline, and that children’s paper-back publishers had also declined by 24.1%.[3] E-book sales easily out-distanced mass market paperback sales in the first quarter of 2011 with mass market sales of hard-copy books falling to $123.3 million compared to e-books’ $233.1 million in sales.

According to .net sales report by the March Association of American Publishers (AAP) which collected data and statistics from 1,189 publishers, the adult e-Book sales were $282.3 million in comparison to adult hard-cover book sales which counted $229.6 million during the first quarter of 2012. During the same period in 2011, eBooks revenues were $220.4 million.[4] These reports indicate a disconcerting diminishing demand for hard-copy books.