The Strategist

GE is creating a robot that will save the world $ 200 billion

09/19/2017 - 08:52

American diversified corporation General Electric is now developing a concept of how to use artificial intelligence in electrical networks. This technology will allow the world to save $ 200 billion due to increased energy efficiency.

Jud McCranie
Jud McCranie
"A lot of people in our company are working on this technology now," said Steven Martin, Director of Digital Technologies at General Electric.

The technology, on which GE is currently working, can optimize the current flow in storage devices, such as batteries and power points. This will significantly improve efficiency of the energy system and thereby save money for consumers.

The researchers are currently studying how so-called computer training can be integrated into various companies that deal with health, computing, energy. There have been enormous changes in the area in recent years. Digitalization has touched both power plants and home electrical systems.

Earlier, shares of General Electric (the manufacturer of many types of equipment, including locomotives, power plants (including nuclear reactors), gas turbines, aircraft engines, medical equipment, photographic equipment, household and lighting equipment, plastics and sealants, as well as a wide range of military products destination, from small arms and armored vehicles to military space systems and nuclear warheads) fell after JPMorgan reported that the fundamental indicators of the industrial giant are "worse than we think."

JPMorgan confirmed its rating with respect to the industrial giant, saying that revenues and business trends continue to deteriorate.

The company named John Flannery, who replaced Jeff Immelt, as its new CEO in June. But even with the change in leadership, shares of General Electric continued to lag far behind the market. Since the beginning of the year, the company's shares have decreased by 21%.

JPM’s analysts noted poor fundamentals in the company’s energy business, a meager turn in the oil and gas and transport segments and pension costs as the reason for the negative outlook for General Electric.

New Chief Executive Officer John Flannery told senior managers to prepare for a reduction in the company's headquarters and other structural units that do not generate revenue or profits.

"The reduction must begin, and it will be aggressive," said a source with information on the discussions from the sources.

It is not yet known how many jobs will be cut.

GE declined to discuss the details, but noted that in March the company announced plans to reduce overhead costs.

"We have a plan to cut spending by $ 2 billion by the end of 2018," said GE spokeswoman Jennifer Erickson. "We said that John is studying all aspects, he will address investors in November."

Analysts said GE will have to cut costs by more than $ 2 billion, as the company is increasing spending in other areas, for example, in the digital business segment.

According to the source, staff working in such areas as human resources, recruitment, corporate security, helicopter and jet operations, procurement, audit and, possibly, financial transactions will fall under the reduction. Reductions are also expected in the information technology segment, where the hiring of employees is frozen, although they do not touch people working with Predix and its applications, or digital sales.