From the Laboratory to the Market: Key Points of Promoting AI Research Centre Activity

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HSE AI Research Centre works on achieving applied results, striving not only to develop innovative algorithms and models, but also to put them into practice to solve real-world problems and tasks. Alexey Masyutin, Head of the AI Research Centre, spoke about some of the the specifics of applying AI technologies in various fields.

Alexey Masyutin

Artificial intelligence technologies have the potential to change some of the most fundamental aspects of life, ranging from medicine and education to industry and business. HSE AI Research Centre aims to fulfill this potential.

— Alexey, the centre was created to introduce AI technologies to various spheres of life and society, including scientific fields and economic sectors. Does this mean that you are more focused on practical tasks?

— Yes, the centre’s main goal is to create applied technological solutions ready for implementation. These are not always finalised IT products.

We work on components that third-party developers can use in their marketable IT products. They are based on fundamental research by our scientists: they provide a real advantage for business and society

The centre's developments are based on a profound understanding of customer needs and market challenges.

— What is the difference between basic research and product creation?

— The main goal of research and development (R&D) is to obtain fundamentally new algorithms (so-called SOTA — State-of-the-Art), new knowledge, to develop models and tools for their optimisation. Research often doesn’t have the goal of creating a specific product, scientists rather seek to expand fundamental knowledge, which is manifested in articles, reports at conferences, etc. As for product creation, the main goal is to develop a specific product or solution that can be commercially successful, solve certain problems and meet the needs of the market. In this case, the focus is on product’s practical value and profitability. However, scientific research and creation of a product are not mutually exclusive. On the contrary, these processes should complement each other, moving symbiotically through the stages of technology and product readiness. Our centre works within this paradigm.

— In what areas are the centre's competencies in demand?

— AI technologies are in demand everywhere today. The centre is currently working on 25 projects with a variety of different focuses: industry, telecommunications, education, medicine, banking, ethical expertise and others. The centre not only offers ready-made solutions, but also conducts research to determine possible areas of application of AI technologies with companies, helping us to expand our circle of industrial partners. We organise R&D days (Research and Development) with companies and discuss cooperation in the development of artificial intelligence technologies.

— Can you tell us about some examples of successful product implementation?

— This year, together with our industrial partner JSC ‘Novoye Servisnoe Bureau’ (New Service Bureau), we have developed, and are currently testing, a predictive marketing analytics platform for the hospitality industry called ‘Data.Forecast’. This platform can accurately (up to 94% at this stage of the project development) predict the demand for hotel services, taking into account more than 480 complex factors, including weather conditions, depth of bookings, room occupancy stock, marketing activities, etc. The service provides recommendations on suitable time periods for strengthening marketing and advertising activities, correcting pricing policy. At the moment, the platform has been launched in 6 hotels in the Leningrad Region and Karelia: Igora Resort, the Dacha Wintera (Winter's Dacha) Park Hotel, the ‘Tochka na Karte’ (Point on the Map) hotels in Priozersk, Sortavala, Vidlitsa and Lodeynoye Pole.

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— Does the centre deal with all the procedures for commercializing developments independently or does the university provide support?

— All research and development work is carried out by the centre. Our employees are engaged in scientific and expert activities, and the results are registered as the result of intellectual activity with the help of the Legal Office. However, in order to create a product capable of generating income based on the result of this intellectual activity, researchers may need help of specialists in that field. Experts from the Centre for R&D Commercialization and Technology Transfer help bring scientific results to the stage of commercialization and find industrial partners. In addition, HSE University has launched a new mechanism for financial and advisory support for commercialisation projects, implemented by the Centre for R&D Commercialization and Technology Transfer.

— What are the advantages of such support?

— The University offers financial, consulting support and an ‘entrepreneurial privilege’ mode, when developers receive most of the license revenue. This mechanism allows HSE researchers, together with experts, to look at scientific results as potential consumers and finalise them as marketable products. Thus, the team receives assessment and examination of their results, additional funds for creating a prototype of the product, and a market analysis. The journey from basic research to the finished product is significantly shortened.

— Does the centre plan to use a new mechanism to support commercialisation projects?

— Of course, to commercialise future projects, we plan to use some of the new support features of HSE University. We will be able to not only sell the rights to the results of our intellectual activity, embedding them in other people's products, as we did with the Data.Forecast platform, but also to implement a scenario where the rights to the product will be fully registered with the university and the proceeds from licensed sales will flow directly to the AI Research Centre to develop our current and new solutions.

The Centre for R&D Commercialization and Technology Transfer, together with the HSE Strategic Development Programme Office, HSE Legal Office, HSE Research Projects Office, HSE Office for Research and Development, and HSE Finance Office, have designed a special mechanism, which was formalised by the order of HSE Rector dated 09.08.2023. You can learn more about the measures to support commercialisation projects and submit an application here.