• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
Tech

Eye on A.I.— Why Hardware Is So Important to A.I.’s Future

By
Jonathan Vanian
Jonathan Vanian
Down Arrow Button Icon
By
Jonathan Vanian
Jonathan Vanian
Down Arrow Button Icon
May 14, 2019, 11:24 AM ET

Using artificial intelligence isn’t just about software. Companies are quickly realizing that the hardware it runs on and is trained on is also critical.

Take the example of Google, a leader in A.I. Last week, during its annual developer conference in Mountain View, Calif., the company debuted its new line of Internet-connected home products that are all linked to its voice-controlled Google Assistant.

Executives bragged on stage about how one of the new devices, the Nest Hub Max, can use its camera to immediately recognize individual family members. In that way, the technology can better respond to requests like playing music from someone’s song lists or showing photos that they are more likely to be interested in.

In the past, Google marketed its A.I. as equally compatible with any Android device. But increasingly, it’s tailoring its A.I. to its own hardware so that it operates more smoothly.

“The pendulum swings both ways,” Rishi Chandra, Google’s head of Home and Nest products told Fortune, explaining Google’s philosophical shift.

Facebook and Amazon are following a similar strategy to Google in their growing focus on customizing A.I to their hardware. They’re designing their own Internet-connected devices and data center chips tailored for their own machine-learning tasks.

What’s the lesson here for businesses that are trying to incorporate A.I. into their operations? Using A.I. isn’t as simple as feeding numbers into fancy software and waiting for a result that will lead to lots of profits. In fact, leading A.I. companies have deployed legions of employees to work on complex software while also fine tuning the hardware that runs and trains it. Some companies are also building their own data centers to handle some of the work, as Walmart recently did inside its futuristic store in Levittown, N.Y., rather than using a cloud service.

It’s all a huge and expensive undertaking. Don’t believe anyone who says differently.

Jonathan Vanian
@JonathanVanian
jonathan.vanian@fortune.com

Sign up for Eye on A.I.

EYE ON A.I. NEWS

Apple and SAP are A.I. buddies. Under an expanded partnership, German business software giant SAP is updating its software development toolkit for building iPhone and iPad apps to include support for Apple’s Core ML A.I. tools. The agreement appears to be similar to 2018 deal between Apple and IBM that linked IBM’s Watson data crunching service with Apple’s Core ML technology.

Come play with Cisco’s voice. Cisco has made its MindMeld digital assistant and voice technology available in open source so other companies and developers can modify and improve it. Cisco bought MindMeld in 2017 for $125 million to enhance its work-collaboration products.

Ericsson plants A.I. flag in Canada. Networking giant Ericsson debuted an A.I. research hub in Montreal and plans to hire 30 data scientists, machine learning engineers, and other software developers to work in the new unit. Several other big tech companies like Google, Facebook, and Microsoft also have A.I. research labs in Montreal, a leading city for deep learning talent.

Facebook has to “label” data somehow. Facebook uses Indian contract workers from IT firm Wipro, among other consulting groups, to hand-label people’s photos and other content in order to train its A.I. systems, Reuters reported. Facebook told the news service that it tells its users in its data policy that the company uses people’s information to “improve their experience.” But, the report noted that users are “not offered the chance to opt out of their data being labeled.”

DO YOU REALLY KNOW YOUR DATA?

Companies can’t do machine learning well if they don’t understand or properly track all of their corporate data, according to tech news site TechRepublic. Ryan Johnson, the data science head of education tech company GoGuardian, told the publication that when it comes to data crunching, “A lot of companies are putting the cart before the horse there."

EYE ON A.I. HIRES

Ghost Locomotion, a startup specializing in self-driving car technology, has named David Purdy as chief scientist. Purdy was previously a senior data science manager for Uber’s safety data science team.

Data analytics company Alteryx hired Alan Jacobson as chief data and analytics officer. Jacobson was formerly the director of global analytics for Ford.

United Kingdom postal-service company Royal Mail has chosen Kat James as its new head of data science. James replaces Ben Dias, who is now the data science director of airline company EasyJet.

EYE ON A.I. RESEARCH

A.I. as a census tool. Researchers from Stanford University, Dartmouth College, and the World Bank published a paper about using deep learning to estimate the population in rural areas of India. The researchers trained their neural networks on satellite imagery taken from above rural villages and said that their systems performed better than traditional efforts, and that there “may still have room for improvement if images with higher resolution are available.”

A.I.’s privacy problems. Researchers from organizations like U.C. Berkeley, Duke University, and Chinese retail giant JD.com, Inc. published a paper exploring potential privacy problems that can occur with reinforcement learning—in which computers learn through trial and error. The researchers discovered that they could learn certain details within so-called simulated “training environments” (like a warehouse floor where a robot learned to navigate around) that are crucial for reinforcement learning.

FORTUNE ON A.I.

A.I. Can Now Read Your Thoughts—And Turn Them Into Words and Images – By John Nosta

Surprise Amazon Go Store Opening Causes New Yorkers to Do What They Do Best: Line Up – By Jeff John Roberts

5 Things Google Debuted at Google I/O – By Danielle Abril

BRAIN FOOD

A.I. as a “climate change” issue. The Financial Times looks at how countries racing to be the world’s leader in A.I. could result in governments and companies failing to consider some of A.I.’s ethical dilemmas, such as increasing existing societal biases. Deep learning “godfather” Yoshua Bengio suggests an “international order” for A.I. that would involve governments creating the norms. “Just like with climate change, we have to stigmatise (sic) countries which don’t want to play by the rules necessary for the benefit of the whole planet,” he told the publication.

About the Author
By Jonathan Vanian
LinkedIn iconTwitter icon

Jonathan Vanian is a former Fortune reporter. He covered business technology, cybersecurity, artificial intelligence, data privacy, and other topics.

See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

farley
Future of WorkInfrastructure
Ford CEO Jim Farley says America is sleepwalking past its ‘essential economy’ crisis. Goldman Sachs just showed how big it really is
By Nick LichtenbergApril 2, 2026
3 hours ago
Nima Ghamsari smiles
NewslettersTerm Sheet
Blend’s post-IPO reset: CEO Nima Ghamsari bets that AI can turn it all around
By Lily Mae LazarusApril 2, 2026
4 hours ago
Photo: President Trump
Big TechMarkets
Trump hails ‘tremendous progress’ in Iran but all Wall Street heard was ‘back to escalation’
By Jim EdwardsApril 2, 2026
4 hours ago
Can Elon Musk take SpaceX IPO to infinity and beyond?
NewslettersFortune Tech
Can Elon Musk take SpaceX IPO to infinity and beyond?
By Alexei OreskovicApril 2, 2026
4 hours ago
Asia’s AI playbook gets a reality check as the Iran war sends energy prices higher and snarls supply chains
AsiaTech
Asia’s AI playbook gets a reality check as the Iran war sends energy prices higher and snarls supply chains
By Angelica AngApril 2, 2026
5 hours ago
The tax escape map: Billionaires are bolting for Florida from the West Coast and taking billions in tax revenue with them
Real EstateBillionaires
The tax escape map: Billionaires are bolting for Florida from the West Coast and taking billions in tax revenue with them
By Marco Quiroz-GutierrezApril 2, 2026
8 hours ago

Most Popular

Gen Z fled San Francisco for Texas and Florida. Now they're turning 'welcomer cities' into the next big tech towns
Real Estate
Gen Z fled San Francisco for Texas and Florida. Now they're turning 'welcomer cities' into the next big tech towns
By Fortune EditorsApril 2, 2026
8 hours ago
Current price of gold as of April 1, 2026
Personal Finance
Current price of gold as of April 1, 2026
By Fortune EditorsApril 1, 2026
1 day ago
Two-thirds of parents say their adult Gen Z kids still rely on them financially  for support—even though it's putting them under strain
Success
Two-thirds of parents say their adult Gen Z kids still rely on them financially  for support—even though it's putting them under strain
By Fortune EditorsMarch 31, 2026
2 days ago
Current price of oil as of April 1, 2026
Personal Finance
Current price of oil as of April 1, 2026
By Fortune EditorsApril 1, 2026
1 day ago
Jerome Powell says the $39 trillion national debt is ‘not unsustainable,’ but warns the trajectory ‘will not end well’
Economy
Jerome Powell says the $39 trillion national debt is ‘not unsustainable,’ but warns the trajectory ‘will not end well’
By Fortune EditorsMarch 30, 2026
3 days ago
2 years after Musk challenged Zuckerberg to a cage match, they were texting about DOGE and a joint OpenAI bid, court records reveal
Law
2 years after Musk challenged Zuckerberg to a cage match, they were texting about DOGE and a joint OpenAI bid, court records reveal
By Fortune EditorsMarch 31, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.