Unlocking the Power of AI: Best Practices and Industry Trends

Table of Contents

1. Introduction
2. The Role of AI in Today's Industry
3. The Hype Around AI and the Reality Check
   1. Cloud-Based ai vs On-Prem AI
   2. The Hype Curves
   3. The Challenges of On-Prem AI
4. The Importance of Governance and Compliance in AI
   1. The AI Act and Regulatory Compliance
   2. Certification of AI Models
5. The Journey towards AI Maturity
   1. Moving from the Wild West to a Curated Environment
   2. The Focus on Governance, Explainability, and Legal Exposure
6. Arrow's Approach to Enable Partners
   1. The Evolution of Arrow's AI Initiative
   2. Lab Development and Infrastructure
   3. Collaborative Efforts with IBM and Red Hat
   4. Empowering Partners with Knowledge and Resources
7. Addressing the Scarcity of AI Skills
8. The Impact of GPU Shortage and Edge Computing
9. The Future of AI and the Learning Year of 2024
10. Conclusion

The Role of AI in Today's Industry

Artificial Intelligence (AI) has become the hottest topic in the industry, promising innovative solutions, transformative capabilities, and unparalleled automation. From AI-powered chatbots to Generative AI models like GPT-3 and Watson X, the market is flooded with a plethora of AI offerings. In this article, we will explore the role of AI in today's industry and how Arrow Electronics, a leading distributor, is contributing to the advancement and adoption of AI technologies.

Introduction

In this fast-paced video series, Arrow Electronics presents an array of topics covering AI, governance, implementation, and best practices. The inaugural episode features Christian Palander, the Pre-Sales Manager for Arrow in Sweden and Arrow's AI Lab General. The discussion revolves around Arrow's perspective on AI and its approach to address the challenges faced by customers and partners in adopting AI solutions.

The Hype Around AI and the Reality Check

Cloud-based AI vs On-Prem AI

When it comes to AI, there is a significant difference between cloud-based AI and on-prem AI. The hype around AI often revolves around cloud-based AI solutions, such as GPTS and generative AI models. However, in the enterprise world, the focus is more on on-prem AI, which is still in its early stages of development. Arrow acknowledges this distinction and emphasizes the importance of understanding both sides of the AI landscape.

The Hype Curves

It's crucial to distinguish the hype from the reality when it comes to AI. While cloud-based AI is at its peak on the hype curve, on-prem AI is still in the early stages. Many partners and vendors struggle to provide robust on-prem solutions, as they are primarily focused on adapting closed-source models from the cloud without exploring the potential of open-source and foundation models. Arrow's role, as a distributor, is to bridge the gap and offer solutions based on open-source and on-prem models.

The Challenges of On-Prem AI

The transition to on-prem AI presents unique challenges, including the need for data security and privacy since most on-prem AI involves handling private data. Arrow recognizes the importance of this aspect and ensures that their solutions cater to the privacy concerns of enterprises. Additionally, the conversation around on-prem AI is still nascent, and there is a lack of reliable information, often leading to confusion and stress among customers and partners. Arrow aims to provide a common neutral ground where knowledge can be shared and partners can learn from each other's experiences.

The Importance of Governance and Compliance in AI

The AI Act and Regulatory Compliance

The introduction of the AI Act in the EU brings regulatory and compliance implications for AI usage and sales. The act requires certifications even for existing AI models, introducing additional complexities for companies that have developed their own trained models. This legislation creates an interesting dynamic where companies may find it more cost-effective to purchase curated models from reliable sources rather than certify their existing models. Arrow recognizes the significance of compliance and aims to facilitate conversations around these regulatory aspects, ensuring their partners can navigate the complex landscape.

Certification of AI Models

Certification is essential for ensuring compliance and mitigating risks associated with high-risk AI models. The legislation emphasizes the need for traceability and accountability, enabling organizations to demonstrate the training and associated risks of their models. Arrow, as a distributor, focuses on providing vendors' solutions that Align with the compliance requirements, including open-source foundation models and curated models that can be certified. This allows partners and customers to confidently deploy AI solutions while remaining compliant.

The Journey towards AI Maturity

Moving beyond the hype, the industry is now focused on achieving AI maturity. The journey involves transitioning from the "wild west" of AI experimentation to a more structured and curated environment. IBM, in collaboration with Arrow, aims to facilitate this transition by providing industry-specific curated models designed for real workloads. The focus shifts towards governance, explainability, and legal exposure, ensuring transparency and accountability in AI deployments.

Moving from the Wild West to a Curated Environment

As the AI landscape matures, organizations realize the importance of moving from ad-hoc experimentation to a more controlled and curated environment. This shift involves addressing issues surrounding governance, explainability, and compliance. Arrow and IBM's collaboration aims to empower partners with the necessary tools and knowledge to guide their customers through this process and enable them to leverage AI effectively.

The Focus on Governance, Explainability, and Legal Exposure

Implementing AI solutions comes with the responsibility of ensuring governance, explainability, and mitigating legal exposure. Arrow, with its comprehensive portfolio encompassing Watson X and open-shift AI, offers partners access to curated models and industry-specific solutions. These solutions alleviate the burden on partners to develop their AI applications from scratch, focusing on providing real business value to customers while adhering to regulatory requirements.

Arrow's Approach to Enable Partners

Arrow Electronics takes a proactive approach to enable partners, equipping them with the skills, resources, and infrastructure required to deliver effective AI solutions.

The Evolution of Arrow's AI Initiative

Arrow's AI journey began with foundational training and theoretical discussions around AI concepts. However, they realized the need for a more practical and solution-based approach to meet the demands of the market. The AI Lab was established, led by technical experts and supported by collaboration with vendors like IBM and Red Hat.

Lab Development and Infrastructure

Arrow's AI Lab is equipped with advanced hardware, including IBM Storage Fusion Box and Nvidia DGX, alongside software solutions like open-shift AI. The lab serves as a facilitator for partners to experience, explore, and gain hands-on knowledge about AI deployments. The focus is on democratizing AI, making it accessible through point-and-click interfaces and showcasing different hardware, including TPUs and GPUs, to demonstrate the varying capabilities and trade-offs.

Collaborative Efforts with IBM and Red Hat

Collaboration between Arrow, IBM, and Red Hat is key to the success of enabling partners. The partnership ensures that AI solutions are developed, tested, and refined collectively, leveraging the strengths and expertise of each entity. The collaboration extends to technical development, software support, and the creation of a collaborative environment where partners can learn from one another.

Empowering Partners with Knowledge and Resources

Arrow's AI Lab serves as a resource center for partners to enhance their AI knowledge and demonstrate their expertise. With a network of over 100 AI partners, Arrow aims to create a collaborative environment where knowledge is shared, skills are honed, and best practices are embraced. This collaborative effort enhances the AI landscape by empowering partners to better address customer needs and become trusted advisors.

Addressing the Scarcity of AI Skills

AI adoption faces a major hurdle—the scarcity of AI skills. As the demand for AI professionals continues to rise, there is a significant shortage of domain expertise and AI practitioners. Recognizing this challenge, Arrow partners closely with IBM and Red Hat to equip their partners with the knowledge and skills required to navigate the complex AI landscape. By providing training, certifications, and access to cutting-edge technologies, Arrow aims to bridge the skill gap and facilitate AI adoption.

The Impact of GPU Shortage and Edge Computing

The scarcity of GPUs in the market poses challenges for organizations looking to implement AI solutions. While cloud providers have a significant share of GPU capacity, this shortage highlights the need for alternative solutions. Arrow acknowledges this constraint and explores different avenues, including collaborating with vendors to certify GPUs that offer comparable performance while being more readily available. Additionally, Arrow recognizes the potential of edge computing in enabling AI deployment and is actively involved in showcasing reduced-size language models and edge-friendly solutions.

The Future of AI and the Learning Year of 2024

Arrow Electronics defines 2024 as the learning year for AI. While the sales of AI solutions may not skyrocket immediately, the focus remains on developing expertise, facilitating knowledge sharing, and creating a solid foundation for scalable AI deployments. Arrow, along with its partners, is committed to helping customers and partners navigate the AI landscape, ensuring they have the right tools, resources, and support to embrace AI and drive Meaningful business transformations.

Conclusion

AI has transitioned from being a buzzword to a business imperative. Arrow Electronics, in partnership with IBM and Red Hat, is at the forefront of empowering partners and customers to leverage AI effectively. Through a collaborative approach, infrastructure investments, and expertise sharing, Arrow aims to bridge the gap between hype and reality, enabling organizations to adopt AI with confidence, compliance, and success.

Highlights:

• AI is revolutionizing industries and driving innovation.
• Arrow Electronics focuses on enabling partners to adopt and implement AI solutions effectively.
• On-prem AI is a critical focus for enterprise businesses, and Arrow helps address the challenges associated with it.
• Compliance and governance are crucial in AI, and Arrow educates partners on regulatory requirements and certifications.
• The transition to AI maturity involves moving from ad-hoc experimentation to a curated and controlled environment.
• Arrow's AI Lab provides the platform for partners to gain hands-on experience and understanding of AI technologies.
• Collaboration between Arrow, IBM, and Red Hat enhances AI solutions and knowledge sharing.
• The scarcity of AI skills is mitigated through training and certification programs offered by Arrow and its partners.
• The GPU shortage and the potential of edge computing impact AI deployments, and Arrow explores alternative solutions.
• Arrow Electronics defines 2024 as the learning year for AI, focusing on building expertise and a solid foundation.

FAQ

Q: What is the difference between cloud-based AI and on-prem AI? A: Cloud-based AI refers to AI solutions deployed on cloud platforms, while on-prem AI involves implementing AI solutions within an organization's infrastructure.

Q: How does Arrow Electronics address compliance and governance in AI? A: Arrow Electronics educates partners on regulatory requirements, such as the AI Act, and provides solutions aligned with compliance standards. They also facilitate certifications for AI models to ensure accountability and traceability.

Q: How does Arrow Electronics enable partners to bridge the AI skills gap? A: Arrow Electronics collaborates with IBM and Red Hat to offer training, certifications, and access to cutting-edge technologies, empowering partners with the knowledge and resources needed to navigate the AI landscape.

Q: How does the GPU shortage impact AI deployments? A: The GPU shortage poses challenges for organizations implementing AI solutions. Arrow Electronics explores alternative GPU options and showcases the potential of edge computing to enable AI deployments.

Q: What does Arrow Electronics define as the learning year for AI? A: Arrow Electronics considers 2024 as the learning year for AI, focusing on building expertise and a strong foundation for scalable AI deployments. The emphasis is on empowering partners and customers to successfully embrace AI technologies.