Tag Archives: economy

#432568 Tech Optimists See a Golden ...

Technology evangelists dream about a future where we’re all liberated from the more mundane aspects of our jobs by artificial intelligence. Other futurists go further, imagining AI will enable us to become superhuman, enhancing our intelligence, abandoning our mortal bodies, and uploading ourselves to the cloud.

Paradise is all very well, although your mileage may vary on whether these scenarios are realistic or desirable. The real question is, how do we get there?

Economist John Maynard Keynes notably argued in favor of active intervention when an economic crisis hits, rather than waiting for the markets to settle down to a more healthy equilibrium in the long run. His rebuttal to critics was, “In the long run, we are all dead.” After all, if it takes 50 years of upheaval and economic chaos for things to return to normality, there has been an immense amount of human suffering first.

Similar problems arise with the transition to a world where AI is intimately involved in our lives. In the long term, automation of labor might benefit the human species immensely. But in the short term, it has all kinds of potential pitfalls, especially in exacerbating inequality within societies where AI takes on a larger role. A new report from the Institute for Public Policy Research has deep concerns about the future of work.

Uneven Distribution
While the report doesn’t foresee the same gloom and doom of mass unemployment that other commentators have considered, the concern is that the gains in productivity and economic benefits from AI will be unevenly distributed. In the UK, jobs that account for £290 billion worth of wages in today’s economy could potentially be automated with current technology. But these are disproportionately jobs held by people who are already suffering from social inequality.

Low-wage jobs are five times more likely to be automated than high-wage jobs. A greater proportion of jobs held by women are likely to be automated. The solution that’s often suggested is that people should simply “retrain”; but if no funding or assistance is provided, this burden is too much to bear. You can’t expect people to seamlessly transition from driving taxis to writing self-driving car software without help. As we have already seen, inequality is exacerbated when jobs that don’t require advanced education (even if they require a great deal of technical skill) are the first to go.

No Room for Beginners
Optimists say algorithms won’t replace humans, but will instead liberate us from the dull parts of our jobs. Lawyers used to have to spend hours trawling through case law to find legal precedents; now AI can identify the most relevant documents for them. Doctors no longer need to look through endless scans and perform diagnostic tests; machines can do this, leaving the decision-making to humans. This boosts productivity and provides invaluable tools for workers.

But there are issues with this rosy picture. If humans need to do less work, the economic incentive is for the boss to reduce their hours. Some of these “dull, routine” parts of the job were traditionally how people getting into the field learned the ropes: paralegals used to look through case law, but AI may render them obsolete. Even in the field of journalism, there’s now software that will rewrite press releases for publication, traditionally something close to an entry-level task. If there are no entry-level jobs, or if entry-level now requires years of training, the result is to exacerbate inequality and reduce social mobility.

Automating Our Biases
The adoption of algorithms into employment has already had negative impacts on equality. Cathy O’Neil, mathematics PhD from Harvard, raises these concerns in her excellent book Weapons of Math Destruction. She notes that algorithms designed by humans often encode the biases of that society, whether they’re racial or based on gender and sexuality.

Google’s search engine advertises more executive-level jobs to users it thinks are male. AI programs predict that black offenders are more likely to re-offend than white offenders; they receive correspondingly longer sentences. It needn’t necessarily be that bias has been actively programmed; perhaps the algorithms just learn from historical data, but this means they will perpetuate historical inequalities.

Take candidate-screening software HireVue, used by many major corporations to assess new employees. It analyzes “verbal and non-verbal cues” of candidates, comparing them to employees that historically did well. Either way, according to Cathy O’Neil, they are “using people’s fear and trust of mathematics to prevent them from asking questions.” With no transparency or understanding of how the algorithm generates its results, and no consensus over who’s responsible for the results, discrimination can occur automatically, on a massive scale.

Combine this with other demographic trends. In rich countries, people are living longer. An increasing burden will be placed on a shrinking tax base to support that elderly population. A recent study said that due to the accumulation of wealth in older generations, millennials stand to inherit more than any previous generation, but it won’t happen until they’re in their 60s. Meanwhile, those with savings and capital will benefit as the economy shifts: the stock market and GDP will grow, but wages and equality will fall, a situation that favors people who are already wealthy.

Even in the most dramatic AI scenarios, inequality is exacerbated. If someone develops a general intelligence that’s near-human or super-human, and they manage to control and monopolize it, they instantly become immensely wealthy and powerful. If the glorious technological future that Silicon Valley enthusiasts dream about is only going to serve to make the growing gaps wider and strengthen existing unfair power structures, is it something worth striving for?

What Makes a Utopia?
We urgently need to redefine our notion of progress. Philosophers worry about an AI that is misaligned—the things it seeks to maximize are not the things we want maximized. At the same time, we measure the development of our countries by GDP, not the quality of life of workers or the equality of opportunity in the society. Growing wealth with increased inequality is not progress.

Some people will take the position that there are always winners and losers in society, and that any attempt to redress the inequalities of our society will stifle economic growth and leave everyone worse off. Some will see this as an argument for a new economic model, based around universal basic income. Any moves towards this will need to take care that it’s affordable, sustainable, and doesn’t lead towards an entrenched two-tier society.

Walter Schiedel’s book The Great Leveller is a huge survey of inequality across all of human history, from the 21st century to prehistoric cave-dwellers. He argues that only revolutions, wars, and other catastrophes have historically reduced inequality: a perfect example is the Black Death in Europe, which (by reducing the population and therefore the labor supply that was available) increased wages and reduced inequality. Meanwhile, our solution to the financial crisis of 2007-8 may have only made the problem worse.

But in a world of nuclear weapons, of biowarfare, of cyberwarfare—a world of unprecedented, complex, distributed threats—the consequences of these “safety valves” could be worse than ever before. Inequality increases the risk of global catastrophe, and global catastrophes could scupper any progress towards the techno-utopia that the utopians dream of. And a society with entrenched inequality is no utopia at all.

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#432512 How Will Merging Minds and Machines ...

One of the most exciting and frightening outcomes of technological advancement is the potential to merge our minds with machines. If achieved, this would profoundly boost our cognitive capabilities. More importantly, however, it could be a revolution in human identity, emotion, spirituality, and self-awareness.

Brain-machine interface technology is already being developed by pioneers and researchers around the globe. It’s still early and today’s tech is fairly rudimentary, but it’s a fast-moving field, and some believe it will advance faster than generally expected. Futurist Ray Kurzweil has predicted that by the 2030s we will be able to connect our brains to the internet via nanobots that will “provide full-immersion virtual reality from within the nervous system, provide direct brain-to-brain communication over the internet, and otherwise greatly expand human intelligence.” Even if the advances are less dramatic, however, they’ll have significant implications.

How might this technology affect human consciousness? What about its implications on our sentience, self-awareness, or subjective experience of our illusion of self?

Consciousness can be hard to define, but a holistic definition often encompasses many of our most fundamental capacities, such as wakefulness, self-awareness, meta-cognition, and sense of agency. Beyond that, consciousness represents a spectrum of awareness, as seen across various species of animals. Even humans experience different levels of existential awareness.

From psychedelics to meditation, there are many tools we already use to alter and heighten our conscious experience, both temporarily and permanently. These tools have been said to contribute to a richer life, with the potential to bring experiences of beauty, love, inner peace, and transcendence. Relatively non-invasive, these tools show us what a seemingly minor imbalance of neurochemistry and conscious internal effort can do to the subjective experience of being human.

Taking this into account, what implications might emerging brain-machine interface technologies have on the “self”?

The Tools for Self-Transcendence
At the basic level, we are currently seeing the rise of “consciousness hackers” using techniques like non-invasive brain stimulation through EEG, nutrition, virtual reality, and ecstatic experiences to create environments for heightened consciousness and self-awareness. In Stealing Fire, Steven Kotler and Jamie Wheal explore this trillion-dollar altered-states economy and how innovators and thought leaders are “harnessing rare and controversial states of consciousness to solve critical challenges and outperform the competition.” Beyond enhanced productivity, these altered states expose our inner potential and give us a glimpse of a greater state of being.

Expanding consciousness through brain augmentation and implants could one day be just as accessible. Researchers are working on an array of neurotechnologies as simple and non-invasive as electrode-based EEGs to invasive implants and techniques like optogenetics, where neurons are genetically reprogrammed to respond to pulses of light. We’ve already connected two brains via the internet, allowing the two to communicate, and future-focused startups are researching the possibilities too. With an eye toward advanced brain-machine interfaces, last year Elon Musk unveiled Neuralink, a company whose ultimate goal is to merge the human mind with AI through a “neural lace.”

Many technologists predict we will one day merge with and, more speculatively, upload our minds onto machines. Neuroscientist Kenneth Hayworth writes in Skeptic magazine, “All of today’s neuroscience models are fundamentally computational by nature, supporting the theoretical possibility of mind-uploading.” This might include connecting with other minds using digital networks or even uploading minds onto quantum computers, which can be in multiple states of computation at a given time.

In their book Evolving Ourselves, Juan Enriquez and Steve Gullans describe a world where evolution is no longer driven by natural processes. Instead, it is driven by human choices, through what they call unnatural selection and non-random mutation. With advancements in genetic engineering, we are indeed seeing evolution become an increasingly conscious process with an accelerated pace. This could one day apply to the evolution of our consciousness as well; we would be using our consciousness to expand our consciousness.

What Will It Feel Like?
We may be able to come up with predictions of the impact of these technologies on society, but we can only wonder what they will feel like subjectively.

It’s hard to imagine, for example, what our stream of consciousness will feel like when we can process thoughts and feelings 1,000 times faster, or how artificially intelligent brain implants will impact our capacity to love and hate. What will the illusion of “I” feel like when our consciousness is directly plugged into the internet? Overall, what impact will the process of merging with technology have on the subjective experience of being human?

The Evolution of Consciousness
In The Future Evolution of Consciousness, Thomas Lombardo points out, “We are a journey rather than a destination—a chapter in the evolutionary saga rather than a culmination. Just as probable, there will also be a diversification of species and types of conscious minds. It is also very likely that new psychological capacities, incomprehensible to us, will emerge as well.”

Humans are notorious for fearing the unknown. For any individual who has never experienced an altered state, be it spiritual or psychedelic-induced, it is difficult to comprehend the subjective experience of that state. It is why many refer to their first altered-state experience as “waking up,” wherein they didn’t even realize they were asleep.

Similarly, exponential neurotechnology represents the potential of a higher state of consciousness and a range of experiences that are unimaginable to our current default state.

Our capacity to think and feel is set by the boundaries of our biological brains. To transform and expand these boundaries is to transform and expand the first-hand experience of consciousness. Emerging neurotechnology may end up providing the awakening our species needs.

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#432482 This Week’s Awesome Stories From ...

A Brain-Boosting Prosthesis Moves From Rats to Humans
Robbie Gonzalez | WIRED
“Today, their proof-of-concept prosthetic lives outside a patient’s head and connects to the brain via wires. But in the future, Hampson hopes, surgeons could implant a similar apparatus entirely within a person’s skull, like a neural pacemaker. It could augment all manner of brain functions—not just in victims of dementia and brain injury, but healthy individuals, as well.”

Here’s How the US Needs to Prepare for the Age of Artificial Intelligence
Will Knight | MIT Technology Review
“The Trump administration has abandoned this vision and has no intention of devising its own AI plan, say those working there. They say there is no need for an AI moonshot, and that minimizing government interference is the best way to make sure the technology flourishes… That looks like a huge mistake. If it essentially ignores such a technological transformation, the US might never make the most of an opportunity to reboot its economy and kick-start both wage growth and job creation. Failure to plan could also cause the birthplace of AI to lose ground to international rivals.”

Underwater GPS Inspired by Shrimp Eyes
Jeremy Hsu | IEEE Spectrum
“A few years ago, U.S. and Australian researchers developed a special camera inspired by the eyes of mantis shrimp that can see the polarization patterns of light waves, which resemble those in a rope being waved up and down. That means the bio-inspired camera can detect how light polarization patterns change once the light enters the water and gets deflected or scattered.”

‘The Business of War’: Google Employees Protest Work for the Pentagon
Scott Shane and Daisuke Wakabayashi | The New York Times
“Thousands of Google employees, including dozens of senior engineers, have signed a letter protesting the company’s involvement in a Pentagon program that uses artificial intelligence to interpret video imagery and could be used to improve the targeting of drone strikes.

The letter, which is circulating inside Google and has garnered more than 3,100 signatures, reflects a culture clash between Silicon Valley and the federal government that is likely to intensify as cutting-edge artificial intelligence is increasingly employed for military purposes. ‘We believe that Google should not be in the business of war,’ says the letter, addressed to Sundar Pichai, the company’s chief executive. It asks that Google pull out of Project Maven, a Pentagon pilot program, and announce a policy that it will not ‘ever build warfare technology.’ (Read the text of the letter.)”

MIT’s New Headset Reads the ‘Words in Your Head’
Brian Heater | TechCrunch
“A team at MIT has been working on just such a device, though the hardware design, admittedly, doesn’t go too far toward removing that whole self-consciousness bit from the equation. AlterEgo is a headmounted—or, more properly, jaw-mounted—device that’s capable of reading neuromuscular signals through built-in electrodes. The hardware, as MIT puts it, is capable of reading ‘words in your head.’”

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#432456 This Planned Solar Farm in Saudi Arabia ...

Right now it only exists on paper, in the form of a memorandum of understanding. But if constructed, the newly-announced solar photovoltaic project in Saudi Arabia would break an astonishing array of records. It’s larger than any solar project currently planned by a factor of 100. When completed, nominally in 2030, it would have a capacity of an astonishing 200 gigawatts (GW). The project is backed by Softbank Group and Saudi Arabia’s new crown prince, Mohammed Bin Salman, and was announced in New York on March 27.

The Tengger Desert Solar Park in China, affectionately known as the “Great Wall of Solar,” is the world’s largest operating solar farm, with a capacity of 1.5 GW. Larger farms are under construction, including the Westlands Solar Park, which plans to finish with 2.7 GW of capacity. But even those that are only in the planning phases are dwarfed by the Saudi project; two early-stage solar parks will have capacity of 7.2 GW, and the plan involves them generating electricity as early as next year.

It makes more sense to compare to slightly larger projects, like nations, or even planets. Saudi Arabia’s current electricity generation capacity is 77 GW. This project would almost triple it. The current total solar photovoltaic generation capacity installed worldwide is 303 GW. In other words, this single solar farm would account for a similar installed capacity as the entire world’s capacity in 2015, and over a thousand times more than we had in 2000.

That’s exponential growth for you, folks.

Of course, practically doubling the world’s solar capacity doesn’t come cheap; the nominal estimate for the budget is around $200 billion (compared to $20 billion for around half a gigawatt of fusion, though, it may not seem so bad.) But the project would help solve a number of pressing problems for Saudi Arabia.

For a start, solar power works well in the desert. The irradiance is high, you have plenty of empty space, and peak demand is driven by air conditioning in the cities and so corresponds with peak supply. Even if oil companies might seem blasé about the global supply of oil running out, individual countries are aware that their own reserves won’t last forever, and they don’t want to miss the energy transition. The country’s Vision 2030 project aims to diversify its heavily oil-dependent economy by that year. If they can construct solar farms on this scale, alongside the $80 billion the government plans to spend on a fleet of nuclear reactors, it seems logical to export that power to other countries in the region, especially given the amount of energy storage that would be required otherwise.

We’ve already discussed a large-scale project to build solar panels in the desert then export the electricity: the DESERTEC initiative in the Sahara. Although DESERTEC planned a range of different demonstration plants on scales of around 500 MW, its ultimate ambition was to “provide 20 percent of Europe’s electricity by 2050.” It seems that this project is similar in scale to what they were planning. Weaning ourselves off fossil fuels is going to be incredibly difficult. Only large-scale nuclear, wind, or solar can really supply the world’s energy needs if consumption is anything like what it is today; in all likelihood, we’ll need a combination of all three.

To make a sizeable contribution to that effort, the renewable projects have to be truly epic in scale. The planned 2 GW solar park at Bulli Creek in Australia would cover 5 square kilometers, so it’s not unreasonable to suggest that, across many farms, this project could cover around 500 square kilometers—around the size of Chicago.

It will come as no surprise that Softbank is involved in this project. The founder, Masayoshi Son, is well-known for large-scale “visionary” investments. This is suggested by the name of his $100 billion VC fund, the Softbank Vision Fund, and the focus of its investments. It has invested millions of dollars in tech companies like Uber, IoT, NVIDIA and ARM, and startups across fields like VR, agritech, and AI.

Of course, Softbank is also the company that bought infamous robot-makers Boston Dynamics from Google when their not-at-all-sinister “Project Replicant” was sidelined. Softbank is famous in Japan in part due to their mascot, Pepper, which is probably the most widespread humanoid robot on the planet. Suffice it to say that Softbank is keen to be a part of any technological development, and they’re not afraid of projects that are truly vast in scope.

Since the Fukushima disaster in 2011 led Japan to turn away from nuclear power, Son has also been focused on green electricity, floating the idea of an Asia Super Grid. Similar to DESERTEC, it aims to get around the main issues with renewable energy (the land use and the intermittency of supply) with a vast super-grid that would connect Mongolia, India, Japan, China, Russia, and South Korea with high-voltage DC power cables. “Since this is such a grandiose project, many people told me it is crazy,” Son said. “They said it is impossible both economically and politically.” The first stage of the project, a demonstration wind farm of 50 megawatts in Mongolia, began operating in October of last year.

Given that Saudi Arabia put up $45 billion of the Vision Fund, it’s also not surprising to see the location of the project; Softbank reportedly had plans to invest $25 billion of the Vision Fund in Saudi Arabia, and $1 billion will be spent on the first solar farms there. Prince Mohammed Bin Salman, 32, who recently consolidated power, is looking to be seen on the global stage as a modernizer. He was effusive about the project. “It’s a huge step in human history,” he said. “It’s bold, risky, and we hope we succeed doing that.”

It is the risk that will keep renewable energy enthusiasts concerned.

Every visionary plan contains the potential for immense disappointment. As yet, the Asian Super Grid and the Saudi power plan are more or less at the conceptual stage. The fact that a memorandum of understanding exists between the Saudi government and Softbank is no guarantee that it will ever be built. Some analysts in the industry are a little skeptical.

“It’s an unprecedented construction effort; it’s an unprecedented financing effort,” said Benjamin Attia, a global solar analyst for Green Tech Media Research. “But there are so many questions, so few details, and a lot of headwinds, like grid instability, the availability of commercial debt, construction, and logistics challenges.”

We have already seen with the DESERTEC initiative that these vast-scale renewable energy projects can fail, despite immense enthusiasm. They are not easy to accomplish. But in a world without fossil fuels, they will be required. This project could be a flagship example for how to run a country on renewable energy—or another example of grand designs and good intentions. We’ll have to wait to find out which.

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#432271 Your Shopping Experience Is on the Verge ...

Exponential technologies (AI, VR, 3D printing, and networks) are radically reshaping traditional retail.

E-commerce giants (Amazon, Walmart, Alibaba) are digitizing the retail industry, riding the exponential growth of computation.

Many brick-and-mortar stores have already gone bankrupt, or migrated their operations online.

Massive change is occurring in this arena.

For those “real-life stores” that survive, an evolution is taking place from a product-centric mentality to an experience-based business model by leveraging AI, VR/AR, and 3D printing.

Let’s dive in.

E-Commerce Trends
Last year, 3.8 billion people were connected online. By 2024, thanks to 5G, stratospheric and space-based satellites, we will grow to 8 billion people online, each with megabit to gigabit connection speeds.

These 4.2 billion new digital consumers will begin buying things online, a potential bonanza for the e-commerce world.

At the same time, entrepreneurs seeking to service these four-billion-plus new consumers can now skip the costly steps of procuring retail space and hiring sales clerks.

Today, thanks to global connectivity, contract production, and turnkey pack-and-ship logistics, an entrepreneur can go from an idea to building and scaling a multimillion-dollar business from anywhere in the world in record time.

And while e-commerce sales have been exploding (growing from $34 billion in Q1 2009 to $115 billion in Q3 2017), e-commerce only accounted for about 10 percent of total retail sales in 2017.

In 2016, global online sales totaled $1.8 trillion. Remarkably, this $1.8 trillion was spent by only 1.5 billion people — a mere 20 percent of Earth’s global population that year.

There’s plenty more room for digital disruption.

AI and the Retail Experience
For the business owner, AI will demonetize e-commerce operations with automated customer service, ultra-accurate supply chain modeling, marketing content generation, and advertising.

In the case of customer service, imagine an AI that is trained by every customer interaction, learns how to answer any consumer question perfectly, and offers feedback to product designers and company owners as a result.

Facebook’s handover protocol allows live customer service representatives and language-learning bots to work within the same Facebook Messenger conversation.

Taking it one step further, imagine an AI that is empathic to a consumer’s frustration, that can take any amount of abuse and come back with a smile every time. As one example, meet Ava. “Ava is a virtual customer service agent, to bring a whole new level of personalization and brand experience to that customer experience on a day-to-day basis,” says Greg Cross, CEO of Ava’s creator, an Austrian company called Soul Machines.

Predictive modeling and machine learning are also optimizing product ordering and the supply chain process. For example, Skubana, a platform for online sellers, leverages data analytics to provide entrepreneurs constant product performance feedback and maintain optimal warehouse stock levels.

Blockchain is set to follow suit in the retail space. ShipChain and Ambrosus plan to introduce transparency and trust into shipping and production, further reducing costs for entrepreneurs and consumers.

Meanwhile, for consumers, personal shopping assistants are shifting the psychology of the standard shopping experience.

Amazon’s Alexa marks an important user interface moment in this regard.

Alexa is in her infancy with voice search and vocal controls for smart homes. Already, Amazon’s Alexa users, on average, spent more on Amazon.com when purchasing than standard Amazon Prime customers — $1,700 versus $1,400.

As I’ve discussed in previous posts, the future combination of virtual reality shopping, coupled with a personalized, AI-enabled fashion advisor will make finding, selecting, and ordering products fast and painless for consumers.

But let’s take it one step further.

Imagine a future in which your personal AI shopper knows your desires better than you do. Possible? I think so. After all, our future AIs will follow us, watch us, and observe our interactions — including how long we glance at objects, our facial expressions, and much more.

In this future, shopping might be as easy as saying, “Buy me a new outfit for Saturday night’s dinner party,” followed by a surprise-and-delight moment in which the outfit that arrives is perfect.

In this future world of AI-enabled shopping, one of the most disruptive implications is that advertising is now dead.

In a world where an AI is buying my stuff, and I’m no longer in the decision loop, why would a big brand ever waste money on a Super Bowl advertisement?

The dematerialization, demonetization, and democratization of personalized shopping has only just begun.

The In-Store Experience: Experiential Retailing
In 2017, over 6,700 brick-and-mortar retail stores closed their doors, surpassing the former record year for store closures set in 2008 during the financial crisis. Regardless, business is still booming.

As shoppers seek the convenience of online shopping, brick-and-mortar stores are tapping into the power of the experience economy.

Rather than focusing on the practicality of the products they buy, consumers are instead seeking out the experience of going shopping.

The Internet of Things, artificial intelligence, and computation are exponentially improving the in-person consumer experience.

As AI dominates curated online shopping, AI and data analytics tools are also empowering real-life store owners to optimize staffing, marketing strategies, customer relationship management, and inventory logistics.

In the short term,retail store locations will serve as the next big user interface for production 3D printing (custom 3D printed clothes at the Ministry of Supply), virtual and augmented reality (DIY skills clinics), and the Internet of Things (checkout-less shopping).

In the long term,we’ll see how our desire for enhanced productivity and seamless consumption balances with our preference for enjoyable real-life consumer experiences — all of which will be driven by exponential technologies.

One thing is certain: the nominal shopping experience is on the verge of a major transformation.

The convergence of exponential technologies has already revamped how and where we shop, how we use our time, and how much we pay.

Twenty years ago, Amazon showed us how the web could offer each of us the long tail of available reading material, and since then, the world of e-commerce has exploded.

And yet we still haven’t experienced the cost savings coming our way from drone delivery, the Internet of Things, tokenized ecosystems, the impact of truly powerful AI, or even the other major applications for 3D printing and AR/VR.

Perhaps nothing will be more transformed than today’s $20 trillion retail sector.

Hold on, stay tuned, and get your AI-enabled cryptocurrency ready.

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