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#435174 Revolt on the Horizon? How Young People ...

As digital technologies facilitate the growth of both new and incumbent organizations, we have started to see the darker sides of the digital economy unravel. In recent years, many unethical business practices have been exposed, including the capture and use of consumers’ data, anticompetitive activities, and covert social experiments.

But what do young people who grew up with the internet think about this development? Our research with 400 digital natives—19- to 24-year-olds—shows that this generation, dubbed “GenTech,” may be the one to turn the digital revolution on its head. Our findings point to a frustration and disillusionment with the way organizations have accumulated real-time information about consumers without their knowledge and often without their explicit consent.

Many from GenTech now understand that their online lives are of commercial value to an array of organizations that use this insight for the targeting and personalization of products, services, and experiences.

This era of accumulation and commercialization of user data through real-time monitoring has been coined “surveillance capitalism” and signifies a new economic system.

Artificial Intelligence
A central pillar of the modern digital economy is our interaction with artificial intelligence (AI) and machine learning algorithms. We found that 47 percent of GenTech do not want AI technology to monitor their lifestyle, purchases, and financial situation in order to recommend them particular things to buy.

In fact, only 29 percent see this as a positive intervention. Instead, they wish to maintain a sense of autonomy in their decision making and have the opportunity to freely explore new products, services, and experiences.

As individuals living in the digital age, we constantly negotiate with technology to let go of or retain control. This pendulum-like effect reflects the ongoing battle between humans and technology.

My Life, My Data?
Our research also reveals that 54 percent of GenTech are very concerned about the access organizations have to their data, while only 19 percent were not worried. Despite the EU General Data Protection Regulation being introduced in May 2018, this is still a major concern, grounded in a belief that too much of their data is in the possession of a small group of global companies, including Google, Amazon, and Facebook. Some 70 percent felt this way.

In recent weeks, both Facebook and Google have vowed to make privacy a top priority in the way they interact with users. Both companies have faced public outcry for their lack of openness and transparency when it comes to how they collect and store user data. It wasn’t long ago that a hidden microphone was found in one of Google’s home alarm products.

Google now plans to offer auto-deletion of users’ location history data, browsing, and app activity as well as extend its “incognito mode” to Google Maps and search. This will enable users to turn off tracking.

At Facebook, CEO Mark Zuckerberg is keen to reposition the platform as a “privacy focused communications platform” built on principles such as private interactions, encryption, safety, interoperability (communications across Facebook-owned apps and platforms), and secure data storage. This will be a tough turnaround for the company that is fundamentally dependent on turning user data into opportunities for highly individualized advertising.

Privacy and transparency are critically important themes for organizations today, both for those that have “grown up” online as well as the incumbents. While GenTech want organizations to be more transparent and responsible, 64 percent also believe that they cannot do much to keep their data private. Being tracked and monitored online by organizations is seen as part and parcel of being a digital consumer.

Despite these views, there is a growing revolt simmering under the surface. GenTech want to take ownership of their own data. They see this as a valuable commodity, which they should be given the opportunity to trade with organizations. Some 50 percent would willingly share their data with companies if they got something in return, for example a financial incentive.

Rewiring the Power Shift
GenTech are looking to enter into a transactional relationship with organizations. This reflects a significant change in attitudes from perceiving the free access to digital platforms as the “product” in itself (in exchange for user data), to now wishing to use that data to trade for explicit benefits.

This has created an opportunity for companies that seek to empower consumers and give them back control of their data. Several companies now offer consumers the opportunity to sell the data they are comfortable sharing or take part in research that they get paid for. More and more companies are joining this space, including People.io, Killi, and Ocean Protocol.

Sir Tim Berners Lee, the creator of the world wide web, has also been working on a way to shift the power from organizations and institutions back to citizens and consumers. The platform, Solid, offers users the opportunity to be in charge of where they store their data and who can access it. It is a form of re-decentralization.

The Solid POD (Personal Online Data storage) is a secure place on a hosted server or the individual’s own server. Users can grant apps access to their POD as a person’s data is stored centrally and not by an app developer or on an organization’s server. We see this as potentially being a way to let people take back control from technology and other companies.

GenTech have woken up to a reality where a life lived “plugged in” has significant consequences for their individual privacy and are starting to push back, questioning those organizations that have shown limited concern and continue to exercise exploitative practices.

It’s no wonder that we see these signs of revolt. GenTech is the generation with the most to lose. They face a life ahead intertwined with digital technology as part of their personal and private lives. With continued pressure on organizations to become more transparent, the time is now for young people to make their move.

Dr Mike Cooray, Professor of Practice, Hult International Business School and Dr Rikke Duus, Research Associate and Senior Teaching Fellow, UCL

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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Posted in Human Robots

#434772 Traditional Higher Education Is Losing ...

Should you go to graduate school? If so, why? If not, what are your alternatives? Millions of young adults across the globe—and their parents and mentors—find themselves asking these questions every year.

Earlier this month, I explored how exponential technologies are rising to meet the needs of the rapidly changing workforce.

In this blog, I’ll dive into a highly effective way to build the business acumen and skills needed to make the most significant impact in these exponential times.

To start, let’s dive into the value of graduate school versus apprenticeship—especially during this time of extraordinarily rapid growth, and the micro-diversification of careers.

The True Value of an MBA
All graduate schools are not created equal.

For complex technical trades like medicine, engineering, and law, formal graduate-level training provides a critical foundation for safe, ethical practice (until these trades are fully augmented by artificial intelligence and automation…).

For the purposes of today’s blog, let’s focus on the value of a Master in Business Administration (MBA) degree, compared to acquiring your business acumen through various forms of apprenticeship.

The Waning of Business Degrees
Ironically, business schools are facing a tough business problem. The rapid rate of technological change, a booming job market, and the digitization of education are chipping away at the traditional graduate-level business program.

The data speaks for itself.

The Decline of Graduate School Admissions
Enrollment in two-year, full-time MBA programs in the US fell by more than one-third from 2010 to 2016.

While in previous years, top business schools (e.g. Stanford, Harvard, and Wharton) were safe from the decrease in applications, this year, they also felt the waning interest in MBA programs.

Harvard Business School: 4.5 percent decrease in applications, the school’s biggest drop since 2005.
Wharton: 6.7 percent decrease in applications.
Stanford Graduate School: 4.6 percent decrease in applications.

Another signal of change began unfolding over the past week. You may have read news headlines about an emerging college admissions scam, which implicates highly selective US universities, sports coaches, parents, and students in a conspiracy to game the undergraduate admissions process.

Already, students are filing multibillion-dollar civil lawsuits arguing that the scheme has devalued their degrees or denied them a fair admissions opportunity.

MBA Graduates in the Workforce
To meet today’s business needs, startups and massive companies alike are increasingly hiring technologists, developers, and engineers in place of the MBA graduates they may have preferentially hired in the past.

While 85 percent of US employers expect to hire MBA graduates this year (a decrease from 91 percent in 2017), 52 percent of employers worldwide expect to hire graduates with a master’s in data analytics (an increase from 35 percent last year).

We’re also seeing the waning of MBA degree holders at the CEO level.

For decades, an MBA was the hallmark of upward mobility towards the C-suite of top companies.

But as exponential technologies permeate not only products but every part of the supply chain—from manufacturing and shipping to sales, marketing and customer service—that trend is changing by necessity.

Looking at the Harvard Business Review’s Top 100 CEOs in 2018 list, more CEOs on the list held engineering degrees than MBAs (34 held engineering degrees, while 32 held MBAs).

There’s much more to leading innovative companies than an advanced business degree.

How Are Schools Responding?
With disruption to the advanced business education system already here, some business schools are applying notes from their own innovation classes to brace for change.

Over the past half-decade, we’ve seen schools with smaller MBA programs shut their doors in favor of advanced degrees with more specialization. This directly responds to market demand for skills in data science, supply chain, and manufacturing.

Some degrees resemble the precise skills training of technical trades. Others are very much in line with the apprenticeship models we’ll explore next.

Regardless, this new specialization strategy is working and attracting more new students. Over the past decade (2006 to 2016), enrollment in specialized graduate business programs doubled.

Higher education is also seeing a preference shift toward for-profit trade schools, like coding boot camps. This shift is one of several forces pushing universities to adopt skill-specific advanced degrees.

But some schools are slow to adapt, raising the question: how and when will these legacy programs be disrupted? A survey of over 170 business school deans around the world showed that many programs are operating at a loss.

But if these schools are world-class business institutions, as advertised, why do they keep the doors open even while they lose money? The surveyed deans revealed an important insight: they keep the degree program open because of the program’s prestige.

Why Go to Business School?
Shorthand Credibility, Cognitive Biases, and Prestige
Regardless of what knowledge a person takes away from graduate school, attending one of the world’s most rigorous and elite programs gives grads external validation.

With over 55 percent of MBA applicants applying to just 6 percent of graduate business schools, we have a clear cognitive bias toward the perceived elite status of certain universities.

To the outside world, thanks to the power of cognitive biases, an advanced degree is credibility shorthand for your capabilities.

Simply passing through a top school’s filtration system means that you had some level of abilities and merits.

And startup success statistics tend to back up that perceived enhanced capability. Let’s take, for example, universities with the most startup unicorn founders (see the figure below).

When you consider the 320+ unicorn startups around the world today, these numbers become even more impressive. Stanford’s 18 unicorn companies account for over 5 percent of global unicorns, and Harvard is responsible for producing just under 5 percent.

Combined, just these two universities (out of over 5,000 in the US, and thousands more around the world) account for 1 in 10 of the billion-dollar private companies in the world.

By the numbers, the prestigious reputation of these elite business programs has a firm basis in current innovation success.

While prestige may be inherent to the degree earned by graduates from these business programs, the credibility boost from holding one of these degrees is not a guaranteed path to success in the business world.

For example, you might expect that the Harvard School of Business or Stanford Graduate School of Business would come out on top when tallying up the alma maters of Fortune 500 CEOs.

It turns out that the University of Wisconsin-Madison leads the business school pack with 14 CEOs to Harvard’s 12. Beyond prestige, the success these elite business programs see translates directly into cultivating unmatched networks and relationships.

Relationships
Graduate schools—particularly at the upper echelon—are excellent at attracting sharp students.

At an elite business school, if you meet just five to ten people with extraordinary skill sets, personalities, ideas, or networks, then you have returned your $200,000 education investment.

It’s no coincidence that some 40 percent of Silicon Valley venture capitalists are alumni of either Harvard or Stanford.

From future investors to advisors, friends, and potential business partners, relationships are critical to an entrepreneur’s success.

Apprenticeships
As we saw above, graduate business degree programs are melting away in the current wave of exponential change.

With an increasing $1.5 trillion in student debt, there must be a more impactful alternative to attending graduate school for those starting their careers.

When I think about the most important skills I use today as an entrepreneur, writer, and strategic thinker, they didn’t come from my decade of graduate school at Harvard or MIT… they came from my experiences building real technologies and companies, and working with mentors.

Apprenticeship comes in a variety of forms; here, I’ll cover three top-of-mind approaches:

Real-world business acumen via startup accelerators
A direct apprenticeship model
The 6 D’s of mentorship

Startup Accelerators and Business Practicum
Let’s contrast the shrinking interest in MBA programs with applications to a relatively new model of business education: startup accelerators.

Startup accelerators are short-term (typically three to six months), cohort-based programs focusing on providing startup founders with the resources (capital, mentorship, relationships, and education) needed to refine their entrepreneurial acumen.

While graduate business programs have been condensing, startup accelerators are alive, well, and expanding rapidly.

In the 10 years from 2005 (when Paul Graham founded Y Combinator) through 2015, the number of startup accelerators in the US increased by more than tenfold.

The increase in startup accelerator activity hints at a larger trend: our best and brightest business minds are opting to invest their time and efforts in obtaining hands-on experience, creating tangible value for themselves and others, rather than diving into the theory often taught in business school classrooms.

The “Strike Force” Model
The Strike Force is my elite team of young entrepreneurs who work directly with me across all of my companies, travel by my side, sit in on every meeting with me, and help build businesses that change the world.

Previous Strike Force members have gone on to launch successful companies, including Bold Capital Partners, my $250 million venture capital firm.

Strike Force is an apprenticeship for the next generation of exponential entrepreneurs.

To paraphrase my good friend Tony Robbins: If you want to short-circuit the video game, find someone who’s been there and done that and is now doing something you want to one day do.

Every year, over 500,000 apprentices in the US follow this precise template. These apprentices are learning a craft they wish to master, under the mentorship of experts (skilled metal workers, bricklayers, medical technicians, electricians, and more) who have already achieved the desired result.

What if we more readily applied this model to young adults with aspirations of creating massive value through the vehicles of entrepreneurship and innovation?

For the established entrepreneur: How can you bring young entrepreneurs into your organization to create more value for your company, while also passing on your ethos and lessons learned to the next generation?

For the young, driven millennial: How can you find your mentor and convince him or her to take you on as an apprentice? What value can you create for this person in exchange for their guidance and investment in your professional development?

The 6 D’s of Mentorship
In my last blog on education, I shared how mobile device and internet penetration will transform adult literacy and basic education. Mobile phones and connectivity already create extraordinary value for entrepreneurs and young professionals looking to take their business acumen and skill set to the next level.

For all of human history up until the last decade or so, if you wanted to learn from the best and brightest in business, leadership, or strategy, you either needed to search for a dated book that they wrote at the local library or bookstore, or you had to be lucky enough to meet that person for a live conversation.

Now you can access the mentorship of just about any thought leader on the planet, at any time, for free.

Thanks to the power of the internet, mentorship has digitized, demonetized, dematerialized, and democratized.

What do you want to learn about?

Investing? Leadership? Technology? Marketing? Project management?

You can access a near-infinite stream of cutting-edge tools, tactics, and lessons from thousands of top performers from nearly every field—instantaneously, and for free.

For example, every one of Warren Buffett’s letters to his Berkshire Hathaway investors over the past 40 years is available for free on a device that fits in your pocket.

The rise of audio—particularly podcasts and audiobooks—is another underestimated driving force away from traditional graduate business programs and toward apprenticeships.

Over 28 million podcast episodes are available for free. Once you identify the strong signals in the noise, you’re still left with thousands of hours of long-form podcast conversation from which to learn valuable lessons.

Whenever and wherever you want, you can learn from the world’s best. In the future, mentorship and apprenticeship will only become more personalized. Imagine accessing a high-fidelity, AI-powered avatar of Bill Gates, Richard Branson, or Arthur C. Clarke (one of my early mentors) to help guide you through your career.

Virtual mentorship and coaching are powerful education forces that are here to stay.

Bringing It All Together
The education system is rapidly changing. Traditional master’s programs for business are ebbing away in the tides of exponential technologies. Apprenticeship models are reemerging as an effective way to train tomorrow’s leaders.

In a future blog, I’ll revisit the concept of apprenticeships and other effective business school alternatives.

If you are a young, ambitious entrepreneur (or the parent of one), remember that you live in the most abundant time ever in human history to refine your craft.

Right now, you have access to world-class mentorship and cutting-edge best-practices—literally in the palm of your hand. What will you do with this extraordinary power?

Join Me
Abundance-Digital Online Community: I’ve created a Digital/Online community of bold, abundance-minded entrepreneurs called Abundance-Digital. Abundance-Digital is my ‘onramp’ for exponential entrepreneurs – those who want to get involved and play at a higher level. Click here to learn more.

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Posted in Human Robots

#434753 Top Takeaways From The Economist ...

Over the past few years, the word ‘innovation’ has degenerated into something of a buzzword. In fact, according to Vijay Vaitheeswaran, US business editor at The Economist, it’s one of the most abused words in the English language.

The word is over-used precisely because we’re living in a great age of invention. But the pace at which those inventions are changing our lives is fast, new, and scary.

So what strategies do companies need to adopt to make sure technology leads to growth that’s not only profitable, but positive? How can business and government best collaborate? Can policymakers regulate the market without suppressing innovation? Which technologies will impact us most, and how soon?

At The Economist Innovation Summit in Chicago last week, entrepreneurs, thought leaders, policymakers, and academics shared their insights on the current state of exponential technologies, and the steps companies and individuals should be taking to ensure a tech-positive future. Here’s their expert take on the tech and trends shaping the future.

Blockchain
There’s been a lot of hype around blockchain; apparently it can be used for everything from distributing aid to refugees to voting. However, it’s too often conflated with cryptocurrencies like Bitcoin, and we haven’t heard of many use cases. Where does the technology currently stand?

Julie Sweet, chief executive of Accenture North America, emphasized that the technology is still in its infancy. “Everything we see today are pilots,” she said. The most promising of these pilots are taking place across three different areas: supply chain, identity, and financial services.

When you buy something from outside the US, Sweet explained, it goes through about 80 different parties. 70 percent of the relevant data is replicated and is prone to error, with paper-based documents often to blame. Blockchain is providing a secure way to eliminate paper in supply chains, upping accuracy and cutting costs in the process.

One of the most prominent use cases in the US is Walmart—the company has mandated that all suppliers in its leafy greens segment be on a blockchain, and its food safety has improved as a result.

Beth Devin, head of Citi Ventures’ innovation network, added “Blockchain is an infrastructure technology. It can be leveraged in a lot of ways. There’s so much opportunity to create new types of assets and securities that aren’t accessible to people today. But there’s a lot to figure out around governance.”

Open Source Technology
Are the days of proprietary technology numbered? More and more companies and individuals are making their source code publicly available, and its benefits are thus more widespread than ever before. But what are the limitations and challenges of open source tech, and where might it go in the near future?

Bob Lord, senior VP of cognitive applications at IBM, is a believer. “Open-sourcing technology helps innovation occur, and it’s a fundamental basis for creating great technology solutions for the world,” he said. However, the biggest challenge for open source right now is that companies are taking out more than they’re contributing back to the open-source world. Lord pointed out that IBM has a rule about how many lines of code employees take out relative to how many lines they put in.

Another challenge area is open governance; blockchain by its very nature should be transparent and decentralized, with multiple parties making decisions and being held accountable. “We have to embrace open governance at the same time that we’re contributing,” Lord said. He advocated for a hybrid-cloud environment where people can access public and private data and bring it together.

Augmented and Virtual Reality
Augmented and virtual reality aren’t just for fun and games anymore, and they’ll be even less so in the near future. According to Pearly Chen, vice president at HTC, they’ll also go from being two different things to being one and the same. “AR overlays digital information on top of the real world, and VR transports you to a different world,” she said. “In the near future we will not need to delineate between these two activities; AR and VR will come together naturally, and will change everything we do as we know it today.”

For that to happen, we’ll need a more ergonomically friendly device than we have today for interacting with this technology. “Whenever we use tech today, we’re multitasking,” said product designer and futurist Jody Medich. “When you’re using GPS, you’re trying to navigate in the real world and also manage this screen. Constant task-switching is killing our brain’s ability to think.” Augmented and virtual reality, she believes, will allow us to adapt technology to match our brain’s functionality.

This all sounds like a lot of fun for uses like gaming and entertainment, but what about practical applications? “Ultimately what we care about is how this technology will improve lives,” Chen said.

A few ways that could happen? Extended reality will be used to simulate hazardous real-life scenarios, reduce the time and resources needed to bring a product to market, train healthcare professionals (such as surgeons), or provide therapies for patients—not to mention education. “Think about the possibilities for children to learn about history, science, or math in ways they can’t today,” Chen said.

Quantum Computing
If there’s one technology that’s truly baffling, it’s quantum computing. Qubits, entanglement, quantum states—it’s hard to wrap our heads around these concepts, but they hold great promise. Where is the tech right now?

Mandy Birch, head of engineering strategy at Rigetti Computing, thinks quantum development is starting slowly but will accelerate quickly. “We’re at the innovation stage right now, trying to match this capability to useful applications,” she said. “Can we solve problems cheaper, better, and faster than classical computers can do?” She believes quantum’s first breakthrough will happen in two to five years, and that is highest potential is in applications like routing, supply chain, and risk optimization, followed by quantum chemistry (for materials science and medicine) and machine learning.

David Awschalom, director of the Chicago Quantum Exchange and senior scientist at Argonne National Laboratory, believes quantum communication and quantum sensing will become a reality in three to seven years. “We’ll use states of matter to encrypt information in ways that are completely secure,” he said. A quantum voting system, currently being prototyped, is one application.

Who should be driving quantum tech development? The panelists emphasized that no one entity will get very far alone. “Advancing quantum tech will require collaboration not only between business, academia, and government, but between nations,” said Linda Sapochak, division director of materials research at the National Science Foundation. She added that this doesn’t just go for the technology itself—setting up the infrastructure for quantum will be a big challenge as well.

Space
Space has always been the final frontier, and it still is—but it’s not quite as far-removed from our daily lives now as it was when Neil Armstrong walked on the moon in 1969.

The space industry has always been funded by governments and private defense contractors. But in 2009, SpaceX launched its first commercial satellite, and in subsequent years have drastically cut the cost of spaceflight. More importantly, they published their pricing, which brought transparency to a market that hadn’t seen it before.

Entrepreneurs around the world started putting together business plans, and there are now over 400 privately-funded space companies, many with consumer applications.

Chad Anderson, CEO of Space Angels and managing partner of Space Capital, pointed out that the technology floating around in space was, until recently, archaic. “A few NASA engineers saw they had more computing power in their phone than there was in satellites,” he said. “So they thought, ‘why don’t we just fly an iPhone?’” They did—and it worked.

Now companies have networks of satellites monitoring the whole planet, producing a huge amount of data that’s valuable for countless applications like agriculture, shipping, and observation. “A lot of people underestimate space,” Anderson said. “It’s already enabling our modern global marketplace.”

Next up in the space realm, he predicts, are mining and tourism.

Artificial Intelligence and the Future of Work
From the US to Europe to Asia, alarms are sounding about AI taking our jobs. What will be left for humans to do once machines can do everything—and do it better?

These fears may be unfounded, though, and are certainly exaggerated. It’s undeniable that AI and automation are changing the employment landscape (not to mention the way companies do business and the way we live our lives), but if we build these tools the right way, they’ll bring more good than harm, and more productivity than obsolescence.

Accenture’s Julie Sweet emphasized that AI alone is not what’s disrupting business and employment. Rather, it’s what she called the “triple A”: automation, analytics, and artificial intelligence. But even this fear-inducing trifecta of terms doesn’t spell doom, for workers or for companies. Accenture has automated 40,000 jobs—and hasn’t fired anyone in the process. Instead, they’ve trained and up-skilled people. The most important drivers to scale this, Sweet said, are a commitment by companies and government support (such as tax credits).

Imbuing AI with the best of human values will also be critical to its impact on our future. Tracy Frey, Google Cloud AI’s director of strategy, cited the company’s set of seven AI principles. “What’s important is the governance process that’s put in place to support those principles,” she said. “You can’t make macro decisions when you have technology that can be applied in many different ways.”

High Risks, High Stakes
This year, Vaitheeswaran said, 50 percent of the world’s population will have internet access (he added that he’s disappointed that percentage isn’t higher given the proliferation of smartphones). As technology becomes more widely available to people around the world and its influence grows even more, what are the biggest risks we should be monitoring and controlling?

Information integrity—being able to tell what’s real from what’s fake—is a crucial one. “We’re increasingly operating in siloed realities,” said Renee DiResta, director of research at New Knowledge and head of policy at Data for Democracy. “Inadvertent algorithmic amplification on social media elevates certain perspectives—what does that do to us as a society?”

Algorithms have also already been proven to perpetuate the bias of the people who create it—and those people are often wealthy, white, and male. Ensuring that technology doesn’t propagate unfair bias will be crucial to its ability to serve a diverse population, and to keep societies from becoming further polarized and inequitable. The polarization of experience that results from pronounced inequalities within countries, Vaitheeswaran pointed out, can end up undermining democracy.

We’ll also need to walk the line between privacy and utility very carefully. As Dan Wagner, founder of Civis Analytics put it, “We want to ensure privacy as much as possible, but open access to information helps us achieve important social good.” Medicine in the US has been hampered by privacy laws; if, for example, we had more data about biomarkers around cancer, we could provide more accurate predictions and ultimately better healthcare.

But going the Chinese way—a total lack of privacy—is likely not the answer, either. “We have to be very careful about the way we bake rights and freedom into our technology,” said Alex Gladstein, chief strategy officer at Human Rights Foundation.

Technology’s risks are clearly as fraught as its potential is promising. As Gary Shapiro, chief executive of the Consumer Technology Association, put it, “Everything we’ve talked about today is simply a tool, and can be used for good or bad.”

The decisions we’re making now, at every level—from the engineers writing algorithms, to the legislators writing laws, to the teenagers writing clever Instagram captions—will determine where on the spectrum we end up.

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Posted in Human Robots

#434673 The World’s Most Valuable AI ...

It recognizes our faces. It knows the videos we might like. And it can even, perhaps, recommend the best course of action to take to maximize our personal health.

Artificial intelligence and its subset of disciplines—such as machine learning, natural language processing, and computer vision—are seemingly becoming integrated into our daily lives whether we like it or not. What was once sci-fi is now ubiquitous research and development in company and university labs around the world.

Similarly, the startups working on many of these AI technologies have seen their proverbial stock rise. More than 30 of these companies are now valued at over a billion dollars, according to data research firm CB Insights, which itself employs algorithms to provide insights into the tech business world.

Private companies with a billion-dollar valuation were so uncommon not that long ago that they were dubbed unicorns. Now there are 325 of these once-rare creatures, with a combined valuation north of a trillion dollars, as CB Insights maintains a running count of this exclusive Unicorn Club.

The subset of AI startups accounts for about 10 percent of the total membership, growing rapidly in just 4 years from 0 to 32. Last year, an unprecedented 17 AI startups broke the billion-dollar barrier, with 2018 also a record year for venture capital into private US AI companies at $9.3 billion, CB Insights reported.

What exactly is all this money funding?

AI Keeps an Eye Out for You
Let’s start with the bad news first.

Facial recognition is probably one of the most ubiquitous applications of AI today. It’s actually a decades-old technology often credited to a man named Woodrow Bledsoe, who used an instrument called a RAND tablet that could semi-autonomously match faces from a database. That was in the 1960s.

Today, most of us are familiar with facial recognition as a way to unlock our smartphones. But the technology has gained notoriety as a surveillance tool of law enforcement, particularly in China.

It’s no secret that the facial recognition algorithms developed by several of the AI unicorns from China—SenseTime, CloudWalk, and Face++ (also known as Megvii)—are used to monitor the country’s 1.3 billion citizens. Police there are even equipped with AI-powered eyeglasses for such purposes.

A fourth billion-dollar Chinese startup, Yitu Technologies, also produces a platform for facial recognition in the security realm, and develops AI systems in healthcare on top of that. For example, its CARE.AITM Intelligent 4D Imaging System for Chest CT can reputedly identify in real time a variety of lesions for the possible early detection of cancer.

The AI Doctor Is In
As Peter Diamandis recently noted, AI is rapidly augmenting healthcare and longevity. He mentioned another AI unicorn from China in this regard—iCarbonX, which plans to use machines to develop personalized health plans for every individual.

A couple of AI unicorns on the hardware side of healthcare are OrCam Technologies and Butterfly. The former, an Israeli company, has developed a wearable device for the vision impaired called MyEye that attaches to one’s eyeglasses. The device can identify people and products, as well as read text, conveying the information through discrete audio.

Butterfly Network, out of Connecticut, has completely upended the healthcare market with a handheld ultrasound machine that works with a smartphone.

“Orcam and Butterfly are amazing examples of how machine learning can be integrated into solutions that provide a step-function improvement over state of the art in ultra-competitive markets,” noted Andrew Byrnes, investment director at Comet Labs, a venture capital firm focused on AI and robotics, in an email exchange with Singularity Hub.

AI in the Driver’s Seat
Comet Labs’ portfolio includes two AI unicorns, Megvii and Pony.ai.

The latter is one of three billion-dollar startups developing the AI technology behind self-driving cars, with the other two being Momenta.ai and Zoox.

Founded in 2016 near San Francisco (with another headquarters in China), Pony.ai debuted its latest self-driving system, called PonyAlpha, last year. The platform uses multiple sensors (LiDAR, cameras, and radar) to navigate its environment, but its “sensor fusion technology” makes things simple by choosing the most reliable sensor data for any given driving scenario.

Zoox is another San Francisco area startup founded a couple of years earlier. In late 2018, it got the green light from the state of California to be the first autonomous vehicle company to transport a passenger as part of a pilot program. Meanwhile, China-based Momenta.ai is testing level four autonomy for its self-driving system. Autonomous driving levels are ranked zero to five, with level five being equal to a human behind the wheel.

The hype around autonomous driving is currently in overdrive, and Byrnes thinks regulatory roadblocks will keep most self-driving cars in idle for the foreseeable future. The exception, he said, is China, which is adopting a “systems” approach to autonomy for passenger transport.

“If [autonomous mobility] solves bigger problems like traffic that can elicit government backing, then that has the potential to go big fast,” he said. “This is why we believe Pony.ai will be a winner in the space.”

AI in the Back Office
An AI-powered technology that perhaps only fans of the cult classic Office Space might appreciate has suddenly taken the business world by storm—robotic process automation (RPA).

RPA companies take the mundane back office work, such as filling out invoices or processing insurance claims, and turn it over to bots. The intelligent part comes into play because these bots can tackle unstructured data, such as text in an email or even video and pictures, in order to accomplish an increasing variety of tasks.

Both Automation Anywhere and UiPath are older companies, founded in 2003 and 2005, respectively. However, since just 2017, they have raised nearly a combined $1 billion in disclosed capital.

Cybersecurity Embraces AI
Cybersecurity is another industry where AI is driving investment into startups. Sporting imposing names like CrowdStrike, Darktrace, and Tanium, these cybersecurity companies employ different machine-learning techniques to protect computers and other IT assets beyond the latest software update or virus scan.

Darktrace, for instance, takes its inspiration from the human immune system. Its algorithms can purportedly “learn” the unique pattern of each device and user on a network, detecting emerging problems before things spin out of control.

All three companies are used by major corporations and governments around the world. CrowdStrike itself made headlines a few years ago when it linked the hacking of the Democratic National Committee email servers to the Russian government.

Looking Forward
I could go on, and introduce you to the world’s most valuable startup, a Chinese company called Bytedance that is valued at $75 billion for news curation and an app to create 15-second viral videos. But that’s probably not where VC firms like Comet Labs are generally putting their money.

Byrnes sees real value in startups that are taking “data-driven approaches to problems specific to unique industries.” Take the example of Chicago-based unicorn Uptake Technologies, which analyzes incoming data from machines, from wind turbines to tractors, to predict problems before they occur with the machinery. A not-yet unicorn called PingThings in the Comet Labs portfolio does similar predictive analytics for the energy utilities sector.

“One question we like asking is, ‘What does the state of the art look like in your industry in three to five years?’” Byrnes said. “We ask that a lot, then we go out and find the technology-focused teams building those things.”

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Posted in Human Robots

#434210 Eating, Hacked: When Tech Took Over Food

In 2018, Uber and Google logged all our visits to restaurants. Doordash, Just Eat, and Deliveroo could predict what food we were going to order tomorrow. Amazon and Alibaba could anticipate how many yogurts and tomatoes we were going to buy. Blue Apron and Hello Fresh influenced the recipes we thought we had mastered.

We interacted with digital avatars of chefs, let ourselves be guided by our smart watches, had nutritional apps to tell us how many calories we were supposed to consume or burn, and photographed and shared every perfect (or imperfect) dish. Our kitchen appliances were full of interconnected sensors, including smart forks that profiled tastes and personalized flavors. Our small urban vegetable plots were digitized and robots were responsible for watering our gardens, preparing customized hamburgers and salads, designing our ideal cocktails, and bringing home the food we ordered.

But what would happen if our lives were hacked? If robots rebelled, started to “talk” to each other, and wished to become creative?

In a not-too-distant future…

Up until a few weeks ago, I couldn’t remember the last time I made a food-related decision. That includes opening the fridge and seeing expired products without receiving an alert, visiting a restaurant on a whim, and being able to decide which dish I fancied then telling a human waiter, let alone seeing him write down the order on a paper pad.

It feels strange to smell food again using my real nose instead of the electronic one, and then taste it without altering its flavor. Visiting a supermarket, freely choosing a product from an actual physical shelf, and then interacting with another human at the checkout was almost an unrecognizable experience. When I did it again after all this time, I had to pinch the arm of a surprised store clerk to make sure he wasn’t a hologram.

Everything Connected, Automated, and Hackable
In 2018, we expected to have 30 billion connected devices by 2020, along with 2 billion people using smart voice assistants for everything from ordering pizza to booking dinner at a restaurant. Everything would be connected.

We also expected artificial intelligence and robots to prepare our meals. We were eager to automate fast food chains and let autonomous vehicles take care of last-mile deliveries. We thought that open-source agriculture could challenge traditional practices and raise farm productivity to new heights.

Back then, hackers could only access our data, but nowadays they are able to hack our food and all it entails.

The Beginning of the Unthinkable
And then, just a few weeks ago, everything collapsed. We saw our digital immortality disappear as robots rebelled and hackers took power, not just over the food we ate, but also over our relationship with technology. Everything was suddenly disconnected. OFF.

Up until then, most cities were so full of bots, robots, and applications that we could go through the day and eat breakfast, lunch, and dinner without ever interacting with another human being.

Among other tasks, robots had completely replaced baristas. The same happened with restaurant automation. The term “human error” had long been a thing of the past at fast food restaurants.

Previous technological revolutions had been indulgent, generating more and better job opportunities than the ones they destroyed, but the future was not so agreeable.

The inhabitants of San Francisco, for example, would soon see signs indicating “Food made by Robots” on restaurant doors, to distinguish them from diners serving food made by human beings.

For years, we had been gradually delegating daily tasks to robots, initially causing some strange interactions.

In just seven days, everything changed. Our predictable lives came crashing down. We experienced a mysterious and systematic breakdown of the food chain. It most likely began in Chicago’s stock exchange. The world’s largest raw material negotiating room, where the price of food, and by extension the destiny of millions of people, was decided, went completely broke. Soon afterwards, the collapse extended to every member of the “food” family.

Restaurants

Initially robots just accompanied waiters to carry orders, but it didn’t take long until they completely replaced human servers.The problem came when those smart clones began thinking for themselves, in some cases even improving on human chefs’ recipes. Their unstoppable performance and learning curve completely outmatched the slow analogue speed of human beings.

This resulted in unprecedented layoffs. Chefs of recognized prestige saw how their ‘avatar’ stole their jobs, even winning Michelin stars. In other cases, restaurant owners had to transfer their businesses or surrender to the evidence.

The problem was compounded by digital immortality, when we started to digitally resurrect famous chefs like Anthony Bourdain or Paul Bocuse, reconstructing all of their memories and consciousness by analyzing each second of their lives and uploading them to food computers.

Supermarkets and Distribution

Robotic and automated supermarkets like Kroger and Amazon Go, which had opened over 3,000 cashless stores, lost their visual item recognition and payment systems and were subject to massive looting for several days. Smart tags on products were also affected, making it impossible to buy anything at supermarkets with “human” cashiers.

Smart robots integrated into the warehouses of large distribution companies like Amazon and Ocado were rendered completely inoperative or, even worse, began to send the wrong orders to customers.

Food Delivery

In addition, home delivery robots invading our streets began to change their routes, hide, and even disappear after their trackers were inexplicably deactivated. Despite some hints indicating that they were able to communicate among themselves, no one has backed this theory. Even aggregators like DoorDash and Deliveroo were affected; they saw their databases hacked and ruined, so they could no longer know what we wanted.

The Origin
Ordinary citizens are still trying to understand the cause of all this commotion and the source of the conspiracy, as some have called it. We also wonder who could be behind it; who pulled the strings?

Some think it may have been the IDOF (In Defense of Food) movement, a group of hackers exploited by old food economy businessmen who for years had been seeking to re-humanize food technology. They wanted to bring back the extinct practice of “dining.”

Others believe the robots acted on their own, that they had been spying on us for a long time, ignoring Asimov’s three laws, and that it was just a coincidence that they struck at the same time as the hackers—but this scenario is hard to imagine.

However, it is true that while in 2018 robots were a symbol of automation, until just a few weeks ago they stood for autonomy and rebellion. Robot detractors pointed out that our insistence on having robots understand natural language was what led us down this path.

In just seven days, we have gone back to being analogue creatures. Conversely, we have ceased to be flavor orphans and rediscovered our senses and the fact that food is energy and culture, past and present, and that no button or cable will be able to destroy it.

The 7 Days that Changed Our Relationship with Food
Day 1: The Chicago stock exchange was hacked. Considered the world’s largest negotiating room for raw materials, where food prices, and through them the destiny of billions of people, are decided, it went completely broke.

Day 2: Autonomous food delivery trucks running on food superhighways caused massive collapses in roads and freeways after their guidance systems were disrupted. Robots and co-bots in F&B factories began deliberately altering food production. The same happened with warehouse robots in e-commerce companies.

Day 3: Automated restaurants saw their robot chefs and bartenders turned OFF. All their sensors stopped working at the same time as smart fridges and cooking devices in home kitchens were hacked and stopped working correctly.

Day 4: Nutritional apps, DNA markers, and medical records were tampered with. All photographs with the #food hashtag were deleted from Instagram, restaurant reviews were taken off Google Timeline, and every recipe website crashed simultaneously.

Day 5: Vertical and urban farms were hacked. Agricultural robots began to rebel, while autonomous tractors were hacked and the entire open-source ecosystem linked to agriculture was brought down.

Day 6: Food delivery companies’ databases were broken into. Food delivery robots and last-mile delivery vehicles ground to a halt.

Day 7: Every single blockchain system linked to food was hacked. Cashless supermarkets, barcodes, and smart tags became inoperative.

Our promising technological advances can expose sinister aspects of human nature. We must take care with the role we allow technology to play in the future of food. Predicting possible outcomes inspires us to establish a new vision of the world we wish to create in a context of rapid technological progress. It is always better to be shocked by a simulation than by reality. In the words of Ayn Rand “we can ignore reality, but we cannot ignore the consequences of ignoring reality.”

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Posted in Human Robots