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How autonomous vehicles could change how cities are designed


BT150 member Dr. Jonathan Reichental said the impact on autonomous vehicles on smart city design is underappreciated.

Reichental is CEO of Human Future, an advisory, investment and education firm. He has previously served as chief information officer at O'Reilly Media and City of Palo Alto. He has written a series of books on smart cities and has created online education content for LinkedIn Learning.

We covered a lot of ground--AI, Internet of things and city operating systems--in a wide-ranging discussion about generative AI and where it fits into cities. Here's a look at the takeaways.

GenAI questions abound. Reichental said generative AI has been the focus of conversation in the tech sector for nearly two years now, but there are plenty of organizations that are figuring out strategies. "A lot of my work is education and clients are asking how they should think about generative AI," he explained. "Sometimes that's the hardest question."

Those incoming questions highlight how it's still early in the generative AI game and organizations are pondering the risks, rewards and use cases. As these questions are happening many organizations have already adopted AI since their employees have brought it to work. "Employees are bringing their own AI to work," said Reichental.

Applying AI to solve problems. Reichental said organizations should start identifying a problem to solve and then finding the right solution. "I'm old school. Let's look at the problem first and figure out the right solution for it," he said. "Let's not start with the solution and AI before the problem you're trying to solve. These are valuable conversations and activities that I'm seeing right now."

Do-it-yourself approaches vs. buying AI capabilities. Reichental said the public sector is more focused on buying AI capabilities off the shelf. Every cloud SaaS vendor has AI capabilities and in the public sector it is normal to wait for those tools to be integrated. "In the public sector we use traffic management systems, permitting systems and legislative systems and vendors are enabling AI," said Reichental. "Some cities in the world are progressive and building their custom AI solutions, but that's more rare."

Reichental added that he was an advocate for cities moving into the cloud because they shouldn't be in the data center business. AI is similar. "You should focus on your core competencies and subscribe to technology," he said. "Public service is really a world of constraints. Too many projects and not enough time, money or talent and you have to operate within that. There are only a few big cities in the world that have the capacity to pull off a custom genAI project."

To Reichental, smart cities' core competencies are providing educational services, health, transportation, energy and public safety. Technology and AI can make delivery of those services faster with less bureaucracy. "There's a lot of momentum behind the digitization of government and AI is just really a big part of that," he said.

Autonomous vehicles will transform cities. Reichental said that all of the hubbub about AI is overshadowing autonomous vehicles, which have the potential to transform how cities are designed. "Autonomous vehicles and drones can transform the landscape of cities. This is a really big deal," said Reichental. :"Cities can completely change how they are designed. Do we need a grid system? How about traffic lights or parking spaces and parking lots? Cities have been built for most of the 20th and 21st century to reflect the needs of cars we drive."

To Reichental, cities will transform from designs that accommodate car ownership to ones that have on-demand electric autonomous vehicles." Reichental said autonomous vehicles will likely have a faster impact on cities than most observers think today. 

Some city design possibilities:

  • Buildings can be planned for various uses. Perhaps a multi-story parking lot can be converted into housing.
  • Instead of tearing down buildings, there can be planned conversions to other uses.
  • Engineering of cities can change without the burden of accommodating car ownership and focus on green spaces, pedestrian areas and gardens. "It's already happening," said Reichental.

Internet of things vision realized. Reichental said the Internet of things will also have a big impact on cities since the sensors and systems are deployed. What has been missing is the AI for dynamic traffic =and energy management. "As we deploy these lower cost sensors in the urban landscape cities will be able to respond better. AI will be a part of that," he said.

Silos and that elusive city operating system. I asked Reichental whether we'd ever see a city platform that integrates everything a city does. The short answer is no. He said:

"There is a graveyard of failed city operating systems and platforms. What everyone has to recognize is that the private sector is centered and focused on delivering to the marketplace. A city is going to have 20 different departments and every one of these is a completely different business and doing its work in a different way. How similar is the fire service in the city to planning or permitting or legal? There are data standards and best practices, but I think the silos are going to continue. Maybe we'll be surprised."

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Infosys leans into small language models for industry use cases

Infosys said it is leaning into small language models as it aims to leverage its industry data sets to target use cases.

Speaking on Infosys' second quarter earnings conference call, CEO Salil Parekh outlined the strategy:

"We are working with clients to deploy enterprise generative AI platforms, which become the launch pad for clients’ usage of different use cases in generative AI. We are building a small language model leveraging industry and Infosys’ data sets. This will be used to build generative AI applications across different industries. We have launched multi-agent capabilities to support clients in deploying agent solutions using generative AI."

Parekh said Infosys has "some very good data sets" that can be used to train small language models. These models will be built for clients by industry and added to business applications and combined with Infosys' Topaz cloud platform.

To that end, Infosys launched Infosys Topaz BankingSLM and Infosys Topaz ITOpsSLM to spearhead a rollout of small language models. The banking focused genAI effort was developed using Nvidia AI enterprise and AI Foundry with Sarvam AI and will be integrated into Infosys offerings.

Infosys added that it is working on Nvidia to develop NIM Agent Blueprints.

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Zoho focuses LLM efforts on Nvidia architecture

Zoho said it will build narrow use case focused language models for its platform on Nvidia after seeing a 60% increase in throughput and 35% reduction in latency compared to the open-source frameworks used previously.

The company, which offers a broad suite of business applications, has been building its AI stack and features in its portfolio.

Zoho said that it will use Nvidia's NeMo, a part of Nvidia AI Enterprise, and GPUs for its models. Zoho said it has spent more than $10 million on Nvidia technology and plans to invest another $10 million in the next year.

In a statement, Ramprakash Ramamoorthy, Director of AI at Zoho, said the company is focused on developing large language models (LLMs) designed for business use cases and integrated into its stack.

Zoho's focus has been on using smaller models that are more use case focused and cost efficient. Zoho, which uses multiple models, doesn't train its models on customer data.

According to Zoho, its LLM efforts will revolve around multimodal, vision and speech capabilities. The company said it is testing NVIDIA TensorRT-LLM.

Constellation Research analyst Holger Mueller said:

"This is a good move by Zoho and it's not surprising. There is no alternative to NVidia when it comes to on-premises AI. It’s a great validation of the Nvidia stack as Zoho tried alternate solutions, and does not shy away from stating that Nvidia is more efficient. The question is whether can a Nvidia stack deliver at an attractive SMB price point."

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HOT TAKE: Epicor's pickup of Acadia extends its "last mile" go-to-market optimization

Epicor has announced it has acquired Acadia Software, which provides connected worker solutions for the manufacturing and other supply chaiun industries. Terms were not discolsed, but Epicor noted in a statement that the new technology will augment Epicor's ability to equip front line workers with the knowledge and tools, as well as intelligent task management, to promote a safer and more optimized work environment. 

“Frontline workers need the digital tools and knowledge necessary to perform their roles efficiently and safely,” Epicor CEO Steve Murphy said in a statement. “The acquisition of Acadia furthers Epicor’s commitment to helping businesses across the make, move, and sell industries move beyond simply telling workers what to do, but showing them how to do it effectively to drive stronger productivity and efficiency.”

On the surface this seems like just another workflow addition to Epicor's portfolio. But the specificity of how it is designed for front line workers is unique, and can add value for manufacturing and related industries as they look to both hire more effectively (read: save costs by ramping less experienced workers at lower wages, as well as retain employees thus reducing turnover costs) but also improve the overal quality of product and customer experience. With more engaged and knowledgable workers, products are manufactured with less errors and on time for customers. This in turn drives both cost effeciencies but also the ability to increase customer satisfaction in a manner that opens up more expansion and cross sell/upsell growth opportunities - in short, improving both top and bottom line metrics. 

Epicor also laid out a list of benefits in its acquisition announcement: 

Real-Time, Actionable Insights: Acadia’s platform is designed to integrate easily with existing enterprise systems, allowing businesses to dynamically combine workforce performance data with other operational metrics.

Skills Management and Development: Acadia provides tools aimed to help workers quickly adopt new processes, software, and equipment that fosters employee growth, skills development, and career progression.

Driving Continuous Improvement: Aligned with Epicor’s focus in helping businesses optimize operations and achieve sustainable growth, Acadia enables workers to identify inefficiencies, suggest improvements, and execute tasks according to best practices.

Epicor users with large shop floor employee bases should consider Acadia's functionality, when Epicor announces formalized pricing for the integrated feature set. The functionality should be part of an overarching strategy of workforce transformation that includes packaged and other AI solutions to drive the right knowledge, task management, etc. to the right front line worker at the right time, and provide telemetry for continuous improvement of the "who, what, when, and where" around the workforce. 

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IBM Q3 mixed, AI bookings surge, infrastructure sales take hit

IBM's third quarter was mixed as sales fell short of estimates, earnings were better-than-expected and the company said that its generative AI bookings were $3 billion.

The company reported third quarter earnings of $2.30 a share on revenue of $15 billion, up 1% from a year ago. Wall Street was expecting IBM to report third quarter non-GAAP earnings of $2.23 a share on revenue of $15.08 billion.

CEO Arvind Krishna said the company was set up well in software with revenue growth consistent with the third quarter. Krishna said the company saw "a reacceleration in Red Hat" and good traction with its models, which deliver good price for performance.

Constellation Research analyst Holger Mueller said IBM's results were hampered by pension costs, but is showing traction in software. Mueller said:

"IBM is becoming more of a software company with 45% of revenue coming from applications. If the trend continues, we will see IBM passing the 50% milestone next year. Good things happen when a former product developer is made CEO, and knows how to leverage IBM Research."

By the numbers:

  • IBM's software revenue was $6.5 billion, up 9.7% from a year ago. Data and AI revenue was up 5%, Red Hat growth was 14% and automation was up 13%.
  • Consulting revenue in the quarter was $5.2 billion, down 0.5%.
  • Infrastructure revenue in the third quarter fell 7% from a year ago to $3 billion. IBM Z revenue was down 19%.

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Streamlining Proof of Delivery with Robotic Process Automation | Ring Container Technologies

SuperNova Finalist Jaime Zepeda of Ring Container Technologies discusses how the company used Infor's robotic process automation (RPA) solution to streamline their proof of delivery process.

Ring Container Technologies, a leading manufacturer of packaging solutions, was facing challenges with managing signed bill of lading documents across their 20 global shipping sites. The documents were being stored in various formats, making it difficult to quickly retrieve and provide to customers when needed. Zepeda explains how Ring leveraged Infor's RPA capabilities to automate the capture and linkage of these signed documents directly to the corresponding transactions in their Infor ERP system. This allowed them to standardize the process across sites and save their employees valuable time previously spent searching for these documents.

The interview also touches on how Ring explores additional use cases for RPA, such as automating the payables process and integrating data from external systems into their ERP.

Learn how a leading manufacturing company uses innovative technologies like RPA to drive efficiency and better serve their customers.

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ServiceNow posts strong Q3, launches Workflow Data Fabric, expands partnerships, hires Zavery as product chief

ServiceNow reported better-than-expected third quarter results, launched Workflow Data Fabric, outlined partnerships with Rimini Street and Cognizant and said it will step up agentic AI efforts with Nvidia. For good measure, ServiceNow also said Google Cloud executive Amit Zavery will be the company’s new president, chief product officer and chief operating officer.

The moves come as ServiceNow delivered strong subscription growth of 22.5% in the third quarter compared to a year ago. The company inked 15 deals worth more than $5 million in annual contract value and more than 2,020 customers with more than $1 million in ACV.

For the third quarter, ServiceNow reported net income of $432 million, or $2.07 a share, on revenue of $2.8 billion. Non-GAAP earnings for the quarter were $3.72 a share. Wall Street was expecting ServiceNow to report earnings of $3.45 a share on revenue of $2.75 billion.

As for the outlook, ServiceNow projected subscription revenue of $2.875 billion to $2.88 billion.

With Now Assist AI as its fastest growing product, ServiceNow is looking to press an advantage as a platform that enables agentic AI by connecting multiple systems and the data, workflows and processes in enterprises. ServiceNow CFO Gina Mastantuono said demand for the Now Platform was “robust” and Now Assist was “already delivering fantastic results.”

ServiceNow's Xanadu release adds AI Agents, RaptorDB Pro, genAI enhancements

The hire of Zavery is also a big move. CEO Bill McDermott said the addition of Zavery gives ServiceNow a “visionary product and engineering leader with a proven history of building market defining products and scaling world class platforms.”

Zavery's most recent gig was VP, GM and Head of Platform from Google Cloud. Zavery previously was an executive at Oracle. 

In an SEC filing, ServiceNow detailed Zavery's pay package. A few nuggets worth noting:

  • The base salary is $900,000. 
  • Zavery's signing bonus was $3 million. 
  • To replace Zavery's outstanding equity grant from Alphabet (Google Cloud's parent), ServiceNow said Zavery was eligble to receive an equity grant of $29 million. 

Zavery will take on his role as ServiceNow is already furiously building on its agentic AI plans:

  • ServiceNow launched Workflow Data Fabric, a data layer that operates across enterprise systems, and a partnership with Cognizant.
  • ServiceNow and Nvidia expanded a partnership to co-develop AI agents based on Nvidia NIM Blueprints.
  • ServiceNow and Rimini Street outlined a partnership to put the Now Platform on top of legacy ERP systems, support them and take the savings to invest in AI innovation.

Speaking on ServiceNow's third quarter earnings call, McDermott said the company is more strategic with generative AI and agentic AI. "The C-suite is looking to us to prevent a mess with AI," said McDermott. "Leaders see the risk that every vendor's bots and agents will scatter like hornets fleeing the nest. Enterprises trust us to be the governance control tower."

McDermott said the company is now using its platform to deploy autonomous agents at scale. "We intend to be the control point that governs the deployment of agentic AI across the enterprise," he said. 

Here's a look at what was announced:

Workflow Data Fabric, Cognizant pact

ServiceNow launched Workflow Data Fabric, which is based on the Now Platform and RaptorDB Pro database. Workflow Data Fabric is available now.

The data layer features Zero Copy connections to integrate data from multiple sources to be used by AI agents. Cognizant will be the first partner for Workflow Data Fabric.

With the move, ServiceNow is adding a data integration layer to connect systems and workflows. Enterprise software vendors are increasingly adding these data layers.

Workflow Data Fabric is designed to connect, understand and process structured and unstructured streaming data across ServiceNow and third-party platforms. ServiceNow's plan is to use Workflow Data Fabric to read data and act.

Key points include:

  • Workflow Data Fabric is powered by ServiceNow's Automation Engine, which includes data streaming, robotics process automation and process mining.
  • The recent acquisition of Raytion is integrated with more than 500 connectors.
  • ServiceNow said the launch of Workflow Data Fabric includes Zero Copy partnerships with Databricks and Snowflake and other data platforms.
  • Workflow Data Fabric streamlines notifications and assigns incidents and includes ServiceNow's Knowledge Graph. The idea is that this graph can add context so AI agents can carry out tasks.

Nvidia NIM Agent Blueprints

ServiceNow and Nvidia said the companies will co-develop native AI agents based on Nvidia's NIM Agent Blueprints.

The two companies said they will develop multiple AI agent use cases for the Now Platform. These AI agents would leverage Nvidia AI Enterprise, NeMo and NIM microservices.

ServiceNow and Nvidia have been partners for years. Nvidia is looking to broaden its AI agent frameworks to speed up generative AI deployments.

According to the companies, the plan is to expand out-of-the-box AI agents starting with cybersecurity. ServiceNow and Nvidia said they will develop Vulnerability Analysis for Container Security AI Agent.

These turnkey AI agents will be activated through ServiceNow AI Agent Studio, which is expected to be available in 2025.

Rimini Street pact

ServiceNow said it will partner with Rimini Street to offer enterprise resource planning (ERP) support to milk legacy systems without migrations and re-platforming so enterprises can invest elsewhere.

Constellation Research CEO Ray Wang said the ServiceNow-Rimini Street partnership can give enterprises some breathing room since many are being prodded to upgrade to cloud-based foundations. "It is imperative that enterprises accelerate AI innovation, digital transformation and workflow automation without being slowed by the complexity and cost burden of upgrading or migrating existing enterprise software," said Wang.

The companies said they will offer a new enterprise software model that includes:

  • ServiceNow's AI platform to provide a layer on top of existing ERP systems. Rimini Street will design, deploy and manage the Now Platform on top of ERP systems with a certified ServiceNow team. Savings will fund AI investments.
  • Rimini Support will replace software vendor maintenance with no required upgrades or migrations for a minimum of 15 years.
  • Rimini Manage that will run the day-to-day software operating and support tasks of legacy ERP systems.

For Rimini Street, the ServiceNow pact will help with the company's own transformation as it winds down Oracle Peoplesoft support to focus on VMware maintenance and other initiatives.

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The Future of AI and Autonomous Vehicles in Smart Cities | BT150 Spotlight

 

BT150 member Dr. Jonathan Reichental said the impact of #autonomous vehicles on smart city design is underappreciated. Reichental is the CEO of Human Future, an advisory, investment, and education firm. He has previously served as chief information officer at O'Reilly Media and the City of Palo Alto. He has written a series of books on smart cities and created online education content for LinkedIn Learning. Larry Dignan covered a lot of ground with Reichental--#AI, Internet of things, and city operating systems--in a wide-ranging discussion about #generativeAI and where it fits into cities. Here are a few main takeaways:

  • GenAI questions abound.
  • Do-it-yourself approaches vs. buying AI capabilities.
  • Autonomous vehicles will transform cities.
  • Internet of Things vision realized.

Read the full analysis from Larry Dignan here: https://www.constellationr.com/blog-news/insights/how-autonomous-vehicles-could-change-how-cities-are-designed

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Agentic AI, Robotic Process Automation, GPU Acceleration | ConstellationTV Episode 91

Exciting developments in the world of enterprise AI and automation! In ConstellationTV episode 91, co-hosts Martin Schneider and Larry Dignan cover the latest enterprise tech news. Key takeaways include...

📌 Microsoft and SAP bringing agenticAI to automate repetitive ERP tasks, unlocking strategic value for finance and accounting teams
📌 The need for orchestration layers to manage the coordination of multiple AI agents across systems
📌 The debate around horizontal vs. vertical approaches to agentic AI, and the role of cloud providers in offering flexible solutions

Next, CR analyst Doug Henschen reports LIVE from Teradata Possible and covers Teradata's latest announcements around LLMs and GPU acceleration.

Finally, catch a SuperNova Finalist interview with Jaime Zepeda from Ring Container Technologies and Larry Dignan about using robotic process automation to automate proof of delivery processes, saving time and improving efficiency.

00:00 - Meet the hosts
01:06 - Enterprise tech news updates
14:53 - Updates from Teradata Possible
19:47 - SNA Finalist interview: Ring Container Technologies
28:18 - Bloopers!

ConstellationTV is a bi-weekly Web series hosted by Constellation analysts, tune in live at 9:00 a.m. PT/ 12:00 p.m. ET every other Wednesday!

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Anthropic's Claude 3.5 Sonnet model can use your computer

Anthropic upgraded Claude 3.5 Sonnet with the ability to use your computer, looking at your screen, moving cursors, clicking and typing. The company also launched Claude 3.5 Haiku.

As large language model (LLM) vendors keep upping the training ante, Anthropic continues to think through features for collaboration and now computer use.

The company said computer use on Claude 3.5 Sonnet is available in public beta via API. Developers will be able to direct Claude to use computers and take on some of the tedious work of filling out forms and combing through files. Claude 3.5 Sonnet will be able to use any application on your computer.

Anthropic noted that computer use is still experimental and error prone, but expects rapid improvements. Asana, Canva, Cognition, DoorDash, Replit, and The Browser Company are among the companies using Claude 3.5 Sonnet and computer use. The new model is available via Anthropic, Amazon Bedrock and Google Cloud Vertex AI.

In a blog post, Anthropic outlined some of the research that went into Claude 3.5 Sonnet's computer use features. Among the takeaways:

  • Claude looks at screenshots of what's visible to the user, then counts how many pixels vertically or horizontally it needs to move a cursor to click correctly.
  • Anthropic spent a lot of time training Claude to count pixels. Without this skill, the model struggles to give mouse commands.
  • Claude was able to turn a user's written prompt into a sequence of steps and then take action.
  • The company said Claude isn't anywhere near human-level skill on the computer, but expects the gap to close.

Anthropic also outlined safety concerns. The company said:

“As with any AI capability, there’s also the potential for users to intentionally misuse Claude’s computer skills. Our teams have developed classifiers and other methods to flag and mitigate these kinds of abuses.

While computer use is not sufficiently advanced or capable of operating at a scale that would present heightened risks relative to existing capabilities, we've put in place measures to monitor when Claude is asked to engage in election-related activity, as well as systems for nudging Claude away from activities like generating and posting content on social media, registering web domains, or interacting with government websites. We will continuously evaluate and iterate these safety measures to balance Claude's capabilities with responsible use during the public beta."

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