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#431543 China Is an Entrepreneurial Hotbed That ...

Last week, Eric Schmidt, chairman of Alphabet, predicted that China will rapidly overtake the US in artificial intelligence…in as little as five years.
Last month, China announced plans to open a $10 billion quantum computing research center in 2020.
Bottom line, China is aggressively investing in exponential technologies, pursuing a bold goal of becoming the global AI superpower by 2030.
Based on what I’ve observed from China’s entrepreneurial scene, I believe they have a real shot of hitting that goal.
As I described in a previous tech blog, I recently traveled to China with a group of my Abundance 360 members, where I was hosted by my friend Kai-Fu Lee, the founder, chairman, and CEO of Sinovation Ventures.
On one of our first nights, Kai-Fu invited us to a special dinner at Da Dong Roast, which specializes in Peking duck, where we shared an 18-course meal.
The meal was amazing, and Kai-Fu’s dinner conversation provided us priceless insights on Chinese entrepreneurs.
Three topics opened my eyes. Here’s the wisdom I’d like to share with you.
1. The Entrepreneurial Culture in China
Chinese entrepreneurship has exploded onto the scene and changed significantly over the past 10 years.
In my opinion, one significant way that Chinese entrepreneurs vary from their American counterparts is in work ethic. The mantra I found in the startups I visited in Beijing and Shanghai was “9-9-6”—meaning the employees only needed to work from 9 am to 9 pm, 6 days a week.
Another concept Kai-Fu shared over dinner was the almost ‘dictatorial’ leadership of the founder/CEO. In China, it’s not uncommon for the Founder/CEO to own the majority of the company, or at least 30–40 percent. It’s also the case that what the CEO says is gospel. Period, no debate. There is no minority or dissenting opinion. When the CEO says “march,” the company asks, “which way?”
When Kai-Fu started Sinovation (his $1 billion+ venture fund), there were few active angel investors. Today, China has a rich ecosystem of angel, venture capital, and government-funded innovation parks.
As venture capital in China has evolved, so too has the mindset of the entrepreneur.
Kai -Fu recalled an early investment he made in which, after an unfortunate streak, the entrepreneur came to him, almost in tears, apologizing for losing his money and promising he would earn it back for him in another way. Kai-Fu comforted the entrepreneur and said there was no such need.
Only a few years later, the situation was vastly different. An entrepreneur who was going through a similar unfortunate streak came to Kai Fu and told him he only had $2 million left of his initial $12 million investment. He informed him he saw no value in returning the money and instead was going to take the last $2 million and use it as a final push to see if the company could succeed. He then promised Kai-Fu if he failed, he would remember what Kai-Fu did for him and, as such, possibly give Sinovation an opportunity to invest in him with his next company.
2. Chinese Companies Are No Longer Just ‘Copycats’
During dinner, Kai-Fu lamented that 10 years ago, it would be fair to call Chinese companies copycats of American companies. Five years ago, the claim would be controversial. Today, however, Kai-Fu is clear that claim is entirely false.
While smart Chinese startups will still look at what American companies are doing and build on trends, today it’s becoming a wise business practice for American tech giants to analyze Chinese companies. If you look at many new features of Facebook’s Messenger, it seems to very closely mirror TenCent’s WeChat.
Interestingly, tight government controls in China have actually spurred innovation. Take TV, for example, a highly regulated industry. Because of this regulation, most entertainment in China is consumed on the internet or by phone. Game shows, reality shows, and more will be entirely centered online.
Kai-Fu told us about one of his investments in a company that helps create Chinese singing sensations. They take girls in from a young age, school them, and regardless of talent, help build their presence and brand as singers. Once ready, these singers are pushed across all the available platforms, and superstars are born. The company recognizes its role in this superstar status, though, which is why it takes a 50 percent cut of all earnings.
This company is just one example of how Chinese entrepreneurs take advantage of China’s unique position, market, and culture.
3. China’s Artificial Intelligence Play
Kai-Fu wrapped up his talk with a brief introduction into the expansive AI industry in China. I previously discussed Face++, a Sinovation investment, which is creating radically efficient facial recognition technology. Face++ is light years ahead of anyone else globally at recognition in live videos. However, Face++ is just one of the incredible advances in AI coming out of China.
Baidu, one of China’s most valuable tech companies, started out as just a search company. However, they now run one of the country’s leading self-driving car programs.
Baidu’s goal is to create a software suite atop existing hardware that will control all self-driving aspects of a vehicle but also be able to provide additional services such as HD mapping and more.
Another interesting application came from another of Sinovation’s investments, Smart Finance Group (SFG). Given most payments are mobile (through WeChat or Alipay), only ~20 percent of the population in China have a credit history. This makes it very difficult for individuals in China to acquire a loan.
SFG’s mobile application takes in user data (as much as the user allows) and, based on the information provided, uses an AI agent to create a financial profile with the power to offer an instant loan. This loan can be deposited directly into their WeChat or Alipay account and is typically approved in minutes. Unlike American loan companies, they avoid default and long-term debt by only providing a one-month loan with 10% interest. Borrow $200, and you pay back $220 by the following month.
Artificial intelligence is exploding in China, and Kai-Fu believes it will touch every single industry.
The only constant is change, and the rate of change is constantly increasing.
In the next 10 years, we’ll see tremendous changes on the geopolitical front and the global entrepreneurial scene caused by technological empowerment.
China is an entrepreneurial hotbed that cannot be ignored. I’m monitoring it closely. Are you?
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#431427 Why the Best Healthcare Hacks Are the ...

Technology has the potential to solve some of our most intractable healthcare problems. In fact, it’s already doing so, with inventions getting us closer to a medical Tricorder, and progress toward 3D printed organs, and AIs that can do point-of-care diagnosis.
No doubt these applications of cutting-edge tech will continue to push the needle on progress in medicine, diagnosis, and treatment. But what if some of the healthcare hacks we need most aren’t high-tech at all?
According to Dr. Darshak Sanghavi, this is exactly the case. In a talk at Singularity University’s Exponential Medicine last week, Sanghavi told the audience, “We often think in extremely complex ways, but I think a lot of the improvements in health at scale can be done in an analog way.”
Sanghavi is the chief medical officer and senior vice president of translation at OptumLabs, and was previously director of preventive and population health at the Center for Medicare and Medicaid Innovation, where he oversaw the development of large pilot programs aimed at improving healthcare costs and quality.
“How can we improve health at scale, not for only a small number of people, but for entire populations?” Sanghavi asked. With programs that benefit a small group of people, he explained, what tends to happen is that the average health of a population improves, but the disparities across the group worsen.
“My mantra became, ‘The denominator is everybody,’” he said. He shared details of some low-tech but crucial fixes he believes could vastly benefit the US healthcare system.
1. Regulatory Hacking
Healthcare regulations are ultimately what drive many aspects of patient care, for better or worse. Worse because the mind-boggling complexity of regulations (exhibit A: the Affordable Care Act is reportedly about 20,000 pages long) can make it hard for people to get the care they need at a cost they can afford, but better because, as Sanghavi explained, tweaking these regulations in the right way can result in across-the-board improvements in a given population’s health.
An adjustment to Medicare hospitalization rules makes for a relevant example. The code was updated to state that if people who left the hospital were re-admitted within 30 days, that hospital had to pay a penalty. The result was hospitals taking more care to ensure patients were released not only in good health, but also with a solid understanding of what they had to do to take care of themselves going forward. “Here, arguably the writing of a few lines of regulatory code resulted in a remarkable decrease in 30-day re-admissions, and the savings of several billion dollars,” Sanghavi said.
2. Long-Term Focus
It’s easy to focus on healthcare hacks that have immediate, visible results—but what about fixes whose benefits take years to manifest? How can we motivate hospitals, regulators, and doctors to take action when they know they won’t see changes anytime soon?
“I call this the reality TV problem,” Sanghavi said. “Reality shows don’t really care about who’s the most talented recording artist—they care about getting the most viewers. That is exactly how we think about health care.”
Sanghavi’s team wanted to address this problem for heart attacks. They found they could reliably determine someone’s 10-year risk of having a heart attack based on a simple risk profile. Rather than monitoring patients’ cholesterol, blood pressure, weight, and other individual factors, the team took the average 10-year risk across entire provider panels, then made providers responsible for controlling those populations.
“Every percentage point you lower that risk, by hook or by crook, you get some people to stop smoking, you get some people on cholesterol medication. It’s patient-centered decision-making, and the provider then makes money. This is the world’s first predictive analytic model, at scale, that’s actually being paid for at scale,” he said.
3. Aligned Incentives
If hospitals are held accountable for the health of the communities they’re based in, those hospitals need to have the right incentives to follow through. “Hospitals have to spend money on community benefit, but linking that benefit to a meaningful population health metric can catalyze significant improvements,” Sanghavi said.
Darshak Sanghavi speaking at Singularity University’s 2017 Exponential Medicine Summit in San Diego, CA.
He used smoking cessation as an example. His team designed a program where hospitals were given a score (determined by the Centers for Disease Control and Prevention) based on the smoking rate in the counties where they’re located, then given monetary incentives to improve their score. Improving their score, in turn, resulted in better health for their communities, which meant fewer patients to treat for smoking-related health problems.
4. Social Determinants of Health
Social determinants of health include factors like housing, income, family, and food security. The answer to getting people to pay attention to these factors at scale, and creating aligned incentives, Sanghavi said, is “Very simple. We just have to measure it to start with, and measure it universally.”
His team was behind a $157 million pilot program called Accountable Health Communities that went live this year. The program requires all Medicare and Medicaid beneficiaries get screened for various social determinants of health. With all that data being collected, analysts can pinpoint local trends, then target funds to address the underlying problem, whether it’s job training, drug use, or nutritional education. “You’re then free to invest the dollars where they’re needed…this is how we can improve health at scale, with very simple changes in the incentive structures that are created,” he said.
5. ‘Securitizing’ Public Health
Sanghavi’s final point tied back to his discussion of aligning incentives. As misguided as it may seem, the reality is that financial incentives can make a huge difference in healthcare outcomes, from both a patient and a provider perspective.
Sanghavi’s team did an experiment in which they created outcome benchmarks for three major health problems that exist across geographically diverse areas: smoking, adolescent pregnancy, and binge drinking. The team proposed measuring the baseline of these issues then creating what they called a social impact bond. If communities were able to lower their frequency of these conditions by a given percent within a stated period of time, they’d get paid for it.
“What that did was essentially say, ‘you have a buyer for this outcome if you can achieve it,’” Sanghavi said. “And you can try to get there in any way you like.” The program is currently in CMS clearance.
AI and Robots Not Required
Using robots to perform surgery and artificial intelligence to diagnose disease will undoubtedly benefit doctors and patients around the US and the world. But Sanghavi’s talk made it clear that our healthcare system needs much more than this, and that improving population health on a large scale is really a low-tech project—one involving more regulatory and financial innovation than technological innovation.
“The things that get measured are the things that get changed,” he said. “If we choose the right outcomes to predict long-term benefit, and we pay for those outcomes, that’s the way to make progress.”
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#431424 A ‘Google Maps’ for the Mouse Brain ...

Ask any neuroscientist to draw you a neuron, and it’ll probably look something like a star with two tails: one stubby with extensive tree-like branches, the other willowy, lengthy and dotted with spindly spikes.
While a decent abstraction, this cartoonish image hides the uncomfortable truth that scientists still don’t know much about what many neurons actually look like, not to mention the extent of their connections.
But without untangling the jumbled mess of neural wires that zigzag across the brain, scientists are stumped in trying to answer one of the most fundamental mysteries of the brain: how individual neuronal threads carry and assemble information, which forms the basis of our thoughts, memories, consciousness, and self.
What if there was a way to virtually trace and explore the brain’s serpentine fibers, much like the way Google Maps allows us to navigate the concrete tangles of our cities’ highways?
Thanks to an interdisciplinary team at Janelia Research Campus, we’re on our way. Meet MouseLight, the most extensive map of the mouse brain ever attempted. The ongoing project has an ambitious goal: reconstructing thousands—if not more—of the mouse’s 70 million neurons into a 3D map. (You can play with it here!)
With map in hand, neuroscientists around the world can begin to answer how neural circuits are organized in the brain, and how information flows from one neuron to another across brain regions and hemispheres.
The first release, presented Monday at the Society for Neuroscience Annual Conference in Washington, DC, contains information about the shape and sizes of 300 neurons.
And that’s just the beginning.
“MouseLight’s new dataset is the largest of its kind,” says Dr. Wyatt Korff, director of project teams. “It’s going to change the textbook view of neurons.”

http://mouselight.janelia.org/assets/carousel/ML-Movie.mp4
Brain Atlas
MouseLight is hardly the first rodent brain atlasing project.
The Mouse Brain Connectivity Atlas at the Allen Institute for Brain Science in Seattle tracks neuron activity across small circuits in an effort to trace a mouse’s connectome—a complete atlas of how the firing of one neuron links to the next.
MICrONS (Machine Intelligence from Cortical Networks), the $100 million government-funded “moonshot” hopes to distill brain computation into algorithms for more powerful artificial intelligence. Its first step? Brain mapping.
What makes MouseLight stand out is its scope and level of detail.
MICrONS, for example, is focused on dissecting a cubic millimeter of the mouse visual processing center. In contrast, MouseLight involves tracing individual neurons across the entire brain.
And while connectomics outlines the major connections between brain regions, the birds-eye view entirely misses the intricacies of each individual neuron. This is where MouseLight steps in.
Slice and Dice
With a width only a fraction of a human hair, neuron projections are hard to capture in their native state. Tug or squeeze the brain too hard, and the long, delicate branches distort or even shred into bits.
In fact, previous attempts at trying to reconstruct neurons at this level of detail topped out at just a dozen, stymied by technological hiccups and sky-high costs.
A few years ago, the MouseLight team set out to automate the entire process, with a few time-saving tweaks. Here’s how it works.
After injecting a mouse with a virus that causes a handful of neurons to produce a green-glowing protein, the team treated the brain with a sugar alcohol solution. This step “clears” the brain, transforming the beige-colored organ to translucent, making it easier for light to penetrate and boosting the signal-to-background noise ratio. The brain is then glued onto a small pedestal and ready for imaging.
Building upon an established method called “two-photon microscopy,” the team then tweaked several parameters to reduce imaging time from days (or weeks) down to a fraction of that. Endearingly known as “2P” by the experts, this type of laser microscope zaps the tissue with just enough photos to light up a single plane without damaging the tissue—sharper plane, better focus, crisper image.
After taking an image, the setup activates its vibrating razor and shaves off the imaged section of the brain—a waspy slice about 200 micrometers thick. The process is repeated until the whole brain is imaged.
This setup increased imaging speed by 16 to 48 times faster than conventional microscopy, writes team leader Dr. Jayaram Chandrashekar, who published a version of the method early last year in eLife.
The resulting images strikingly highlight every crook and cranny of a neuronal branch, popping out against a pitch-black background. But pretty pictures come at a hefty data cost: each image takes up a whopping 20 terabytes of data—roughly the storage space of 4,000 DVDs, or 10,000 hours of movies.
Stitching individual images back into 3D is an image-processing nightmare. The MouseLight team used a combination of computational power and human prowess to complete this final step.
The reconstructed images are handed off to a mighty team of seven trained neuron trackers. With the help of tracing algorithms developed in-house and a keen eye, each member can track roughly a neuron a day—significantly less time than the week or so previously needed.
A Numbers Game
Even with just 300 fully reconstructed neurons, MouseLight has already revealed new secrets of the brain.
While it’s widely accepted that axons, the neurons’ outgoing projection, can span the entire length of the brain, these extra-long connections were considered relatively rare. (In fact, one previously discovered “giant neuron” was thought to link to consciousness because of its expansive connections).
Images captured from two-photon microscopy show an axon and dendrites protruding from a neuron’s cell body (sphere in center). Image Credit: Janelia Research Center, MouseLight project team
MouseLight blows that theory out of the water.
The data clearly shows that “giant neurons” are far more common than previously thought. For example, four neurons normally associated with taste had wiry branches that stretched all the way into brain areas that control movement and process touch.
“We knew that different regions of the brain talked to each other, but seeing it in 3D is different,” says Dr. Eve Marder at Brandeis University.
“The results are so stunning because they give you a really clear view of how the whole brain is connected.”
With a tested and true system in place, the team is now aiming to add 700 neurons to their collection within a year.
But appearance is only part of the story.
We can’t tell everything about a person simply by how they look. Neurons are the same: scientists can only infer so much about a neuron’s function by looking at their shape and positions. The team also hopes to profile the gene expression patterns of each neuron, which could provide more hints to their roles in the brain.
MouseLight essentially dissects the neural infrastructure that allows information traffic to flow through the brain. These anatomical highways are just the foundation. Just like Google Maps, roads form only the critical first layer of the map. Street view, traffic information and other add-ons come later for a complete look at cities in flux.
The same will happen for understanding our ever-changing brain.
Image Credit: Janelia Research Campus, MouseLight project team Continue reading

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#431315 Better Than Smart Speakers? Japan Is ...

While American internet giants are developing speakers, Japanese companies are working on robots and holograms. They all share a common goal: to create the future platform for the Internet of Things (IoT) and smart homes.
Names like Bocco, EMIEW3, Xperia Assistant, and Gatebox may not ring a bell to most outside of Japan, but Sony, Hitachi, Sharp, and Softbank most certainly do. The companies, along with Japanese start-ups, have developed robots, robot concepts, and even holograms like the ones hiding behind the short list of names.
While there are distinct differences between the various systems, they share the potential to act as a remote control for IoT devices and smart homes. It is a very different direction than that taken by companies like Google, Amazon, and Apple, who have so far focused on building IoT speaker systems.
Bocco robot. Image Credit: Yukai Engineering
“Technology companies are pursuing the platform—or smartphone if you will—for IoT. My impression is that Japanese companies—and Japanese consumers—prefer that such a platform should not just be an object, but a companion,” says Kosuke Tatsumi, designer at Yukai Engineering, a startup that has developed the Bocco robot system.
At Hitachi, a spokesperson said that the company’s human symbiotic service robot, EMIEW3, robot is currently in the field, doing proof-of-value tests at customer sites to investigate needs and potential solutions. This could include working as an interactive control system for the Internet of Things:
“EMIEW3 is able to communicate with humans, thus receive instructions, and as it is connected to a robotics IT platform, it is very much capable of interacting with IoT-based systems,” the spokesperson said.
The power of speech is getting feet
Gartner analysis predicts that there will be 8.4 billion internet-connected devices—collectively making up the Internet of Things—by the end of 2017. 5.2 billion of those devices are in the consumer category. By the end of 2020, the number of IoT devices will rise to 12.8 billion—and that is just in the consumer category.
As a child of the 80s, I can vividly remember how fun it was to have separate remote controls for TV, video, and stereo. I can imagine a situation where my internet-connected refrigerator and ditto thermostat, television, and toaster try to work out who I’m talking to and what I want them to do.
Consensus seems to be that speech will be the way to interact with many/most IoT devices. The same goes for a form of virtual assistant functioning as the IoT platform—or remote control. Almost everything else is still an open ballgame, despite an early surge for speaker-based systems, like those from Amazon, Google, and Apple.
Why robots could rule
Famous android creator and robot scientist Dr. Hiroshi Ishiguro sees the interaction between humans and the AI embedded in speakers or robots as central to both approaches. From there, the approaches differ greatly.
Image Credit: Hiroshi Ishiguro Laboratories
“It is about more than the difference of form. Speaking to an Amazon Echo is not a natural kind of interaction for humans. That is part of what we in Japan are creating in many human-like robot systems,” he says. “The human brain is constructed to recognize and interact with humans. This is part of why it makes sense to focus on developing the body for the AI mind as well as the AI mind itself. In a way, you can describe it as the difference between developing an assistant, which could be said to be what many American companies are currently doing, and a companion, which is more the focus here in Japan.”
Another advantage is that robots are more kawaii—a multifaceted Japanese word that can be translated as “cute”—than speakers are. This makes it easy for people to relate to them and forgive them.
“People are more willing to forgive children when they make mistakes, and the same is true with a robot like Bocco, which is designed to look kawaii and childlike,” Kosuke Tatsumi explains.
Japanese robots and holograms with IoT-control capabilities
So, what exactly do these robot and hologram companions look like, what can they do, and who’s making them? Here are seven examples of Japanese companies working to go a step beyond smart speakers with personable robots and holograms.
1. In 2016 Sony’s mobile division demonstrated the Xperia Agent concept robot that recognizes individual users, is voice controlled, and can do things like control your television and receive calls from services like Skype.

2. Sharp launched their Home Assistant at CES 2016. A robot-like, voice-controlled assistant that can to control, among other things, air conditioning units, and televisions. Sharp has also launched a robotic phone called RoBoHon.
3. Gatebox has created a holographic virtual assistant. Evil tongues will say that it is primarily the expression of an otaku (Japanese for nerd) dream of living with a manga heroine. Gatebox is, however, able to control things like lights, TVs, and other systems through API integration. It also provides its owner with weather-related advice like “remember your umbrella, it looks like it will rain later.” Gatebox can be controlled by voice, gesture, or via an app.
4. Hitachi’s EMIEW3 robot is designed to assist people in businesses and public spaces. It is connected to a robot IT-platform via the cloud that acts as a “remote brain.” Hitachi is currently investigating the business use cases for EMIEW3. This could include the role of controlling platform for IoT devices.

5. Softbank’s Pepper robot has been used as a platform to control use of medical IoT devices such as smart thermometers by Avatarion. The company has also developed various in-house systems that enable Pepper to control IoT-devices like a coffee machine. A user simply asks Pepper to brew a cup of coffee, and it starts the coffee machine for you.
6. Yukai Engineering’s Bocco registers when a person (e.g., young child) comes home and acts as a communication center between that person and other members of the household (e.g., parent still at work). The company is working on integrating voice recognition, voice control, and having Bocco control things like the lights and other connected IoT devices.
7. Last year Toyota launched the Kirobo Mini, a companion robot which aims to, among other things, help its owner by suggesting “places to visit, routes for travel, and music to listen to” during the drive.

Today, Japan. Tomorrow…?
One of the key questions is whether this emerging phenomenon is a purely Japanese thing. If the country’s love of robots makes it fundamentally different. Japan is, after all, a country where new units of Softbank’s Pepper robot routinely sell out in minutes and the RoBoHon robot-phone has its own cafe nights in Tokyo.
It is a country where TV introduces you to friendly, helpful robots like Doraemon and Astro Boy. I, on the other hand, first met robots in the shape of Arnold Schwarzenegger’s Terminator and struggled to work out why robots seemed intent on permanently borrowing things like clothes and motorcycles, not to mention why they hated people called Sarah.
However, research suggests that a big part of the reason why Japanese seem to like robots is a combination of exposure and positive experiences that leads to greater acceptance of them. As robots spread to more and more industries—and into our homes—our acceptance of them will grow.
The argument is also backed by a project by Avatarion, which used Softbank’s Nao-robot as a classroom representative for children who were in the hospital.
“What we found was that the other children quickly adapted to interacting with the robot and treating it as the physical representation of the child who was in hospital. They accepted it very quickly,” Thierry Perronnet, General Manager of Avatarion, explains.
His company has also developed solutions where Softbank’s Pepper robot is used as an in-home nurse and controls various medical IoT devices.
If robots end up becoming our preferred method for controlling IoT devices, it is by no means certain that said robots will be coming from Japan.
“I think that the goal for both Japanese and American companies—including the likes of Google, Amazon, Microsoft, and Apple—is to create human-like interaction. For this to happen, technology needs to evolve and adapt to us and how we are used to interacting with others, in other words, have a more human form. Humans’ speed of evolution cannot keep up with technology’s, so it must be the technology that changes,” Dr. Ishiguro says.
Image Credit: Sony Mobile Communications Continue reading

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#431238 AI Is Easy to Fool—Why That Needs to ...

Con artistry is one of the world’s oldest and most innovative professions, and it may soon have a new target. Research suggests artificial intelligence may be uniquely susceptible to tricksters, and as its influence in the modern world grows, attacks against it are likely to become more common.
The root of the problem lies in the fact that artificial intelligence algorithms learn about the world in very different ways than people do, and so slight tweaks to the data fed into these algorithms can throw them off completely while remaining imperceptible to humans.
Much of the research into this area has been conducted on image recognition systems, in particular those relying on deep learning neural networks. These systems are trained by showing them thousands of examples of images of a particular object until they can extract common features that allow them to accurately spot the object in new images.
But the features they extract are not necessarily the same high-level features a human would be looking for, like the word STOP on a sign or a tail on a dog. These systems analyze images at the individual pixel level to detect patterns shared between examples. These patterns can be obscure combinations of pixel values, in small pockets or spread across the image, that would be impossible to discern for a human, but highly accurate at predicting a particular object.

“An attacker can trick the object recognition algorithm into seeing something that isn’t there, without these alterations being obvious to a human.”

What this means is that by identifying these patterns and overlaying them over a different image, an attacker can trick the object recognition algorithm into seeing something that isn’t there, without these alterations being obvious to a human. This kind of manipulation is known as an “adversarial attack.”
Early attempts to trick image recognition systems this way required access to the algorithm’s inner workings to decipher these patterns. But in 2016 researchers demonstrated a “black box” attack that enabled them to trick such a system without knowing its inner workings.
By feeding the system doctored images and seeing how it classified them, they were able to work out what it was focusing on and therefore generate images they knew would fool it. Importantly, the doctored images were not obviously different to human eyes.
These approaches were tested by feeding doctored image data directly into the algorithm, but more recently, similar approaches have been applied in the real world. Last year it was shown that printouts of doctored images that were then photographed on a smartphone successfully tricked an image classification system.
Another group showed that wearing specially designed, psychedelically-colored spectacles could trick a facial recognition system into thinking people were celebrities. In August scientists showed that adding stickers to stop signs in particular configurations could cause a neural net designed to spot them to misclassify the signs.
These last two examples highlight some of the potential nefarious applications for this technology. Getting a self-driving car to miss a stop sign could cause an accident, either for insurance fraud or to do someone harm. If facial recognition becomes increasingly popular for biometric security applications, being able to pose as someone else could be very useful to a con artist.
Unsurprisingly, there are already efforts to counteract the threat of adversarial attacks. In particular, it has been shown that deep neural networks can be trained to detect adversarial images. One study from the Bosch Center for AI demonstrated such a detector, an adversarial attack that fools the detector, and a training regime for the detector that nullifies the attack, hinting at the kind of arms race we are likely to see in the future.
While image recognition systems provide an easy-to-visualize demonstration, they’re not the only machine learning systems at risk. The techniques used to perturb pixel data can be applied to other kinds of data too.

“Bypassing cybersecurity defenses is one of the more worrying and probable near-term applications for this approach.”

Chinese researchers showed that adding specific words to a sentence or misspelling a word can completely throw off machine learning systems designed to analyze what a passage of text is about. Another group demonstrated that garbled sounds played over speakers could make a smartphone running the Google Now voice command system visit a particular web address, which could be used to download malware.
This last example points toward one of the more worrying and probable near-term applications for this approach: bypassing cybersecurity defenses. The industry is increasingly using machine learning and data analytics to identify malware and detect intrusions, but these systems are also highly susceptible to trickery.
At this summer’s DEF CON hacking convention, a security firm demonstrated they could bypass anti-malware AI using a similar approach to the earlier black box attack on the image classifier, but super-powered with an AI of their own.
Their system fed malicious code to the antivirus software and then noted the score it was given. It then used genetic algorithms to iteratively tweak the code until it was able to bypass the defenses while maintaining its function.
All the approaches noted so far are focused on tricking pre-trained machine learning systems, but another approach of major concern to the cybersecurity industry is that of “data poisoning.” This is the idea that introducing false data into a machine learning system’s training set will cause it to start misclassifying things.
This could be particularly challenging for things like anti-malware systems that are constantly being updated to take into account new viruses. A related approach bombards systems with data designed to generate false positives so the defenders recalibrate their systems in a way that then allows the attackers to sneak in.
How likely it is that these approaches will be used in the wild will depend on the potential reward and the sophistication of the attackers. Most of the techniques described above require high levels of domain expertise, but it’s becoming ever easier to access training materials and tools for machine learning.
Simpler versions of machine learning have been at the heart of email spam filters for years, and spammers have developed a host of innovative workarounds to circumvent them. As machine learning and AI increasingly embed themselves in our lives, the rewards for learning how to trick them will likely outweigh the costs.
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