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#433748 Could Tech Make Government As We Know It ...

Governments are one of the last strongholds of an undigitized, linear sector of humanity, and they are falling behind fast. Apart from their struggle to keep up with private sector digitization, federal governments are in a crisis of trust.

At almost a 60-year low, only 18 percent of Americans reported that they could trust their government “always” or “most of the time” in a recent Pew survey. And the US is not alone. The Edelman Trust Barometer revealed last year that 41 percent of the world population distrust their nations’ governments.

In many cases, the private sector—particularly tech—is driving greater progress in regulation-targeted issues like climate change than state leaders. And as decentralized systems, digital disruption, and private sector leadership take the world by storm, traditional forms of government are beginning to fear irrelevance. However, the fight for exponential governance is not a lost battle.

Early visionaries like Estonia and the UAE are leading the way in digital governance, empowered by a host of converging technologies.

In this article, we will cover three key trends:

Digital governance divorced from land
AI-driven service delivery and regulation
Blockchain-enforced transparency

Let’s dive in.

Governments Going Digital
States and their governments have forever been tied to physical territories, and public services are often delivered through brick-and-mortar institutions. Yet public sector infrastructure and services will soon be hosted on servers, detached from land and physical form.

Enter e-Estonia. Perhaps the least expected on a list of innovative nations, this former Soviet Republic-turned digital society is ushering in an age of technological statecraft.

Hosting every digitizable government function on the cloud, Estonia could run its government almost entirely on a server. Starting in the 1990s, Estonia’s government has covered the nation with ultra-high-speed data connectivity, laying down tremendous amounts of fiber optic cable. By 2007, citizens could vote from their living rooms.

With digitized law, Estonia signs policies into effect using cryptographically secure digital signatures, and every stage of the legislative process is available to citizens online.

Citizens’ healthcare registry is run on the blockchain, allowing patients to own and access their own health data from anywhere in the world—X-rays, digital prescriptions, medical case notes—all the while tracking who has access.

Today, most banks have closed their offices, as 99 percent of banking transactions occur online (with 67 percent of citizens regularly using cryptographically secured e-IDs). And by 2020, e-tax will be entirely automated with Estonia’s new e-Tax and Customs Board portal, allowing companies and tax authority to exchange data automatically. And i-Voting, civil courts, land registries, banking, taxes, and countless e-facilities allow citizens to access almost any government service with an electronic ID and personal PIN online.

But perhaps Estonia’s most revolutionary breakthrough is its recently introduced e-residency. With over 30,000 e-residents, Estonia issues electronic IDs to global residents anywhere in the world. While e-residency doesn’t grant territorial rights, over 5,000 e-residents have already established companies within Estonia’s jurisdiction.

After registering companies online, entrepreneurs pay automated taxes—calculated in minutes and transmitted to the Estonian government with unprecedented ease.

The implications of e-residency and digital governance are huge. As with any software, open-source code for digital governance could be copied perfectly at almost zero cost, lowering the barrier to entry for any group or movement seeking statehood.

We may soon see the rise of competitive governing ecosystems, each testing new infrastructure and public e-services to compete with mainstream governments for taxpaying citizens.

And what better to accelerate digital governance than AI?

Legal Compliance Through AI
Just last year, the UAE became the first nation to appoint a State Minister for AI (actually a friend of mine, H.E. Omar Al Olama), aiming to digitize government services and halve annual costs. Among multiple sector initiatives, the UAE hopes to deploy robotic cops by 2030.

Meanwhile, the U.K. now has a Select Committee on Artificial Intelligence, and just last month, world leaders convened at the World Government Summit to discuss guidelines for AI’s global regulation.

As AI infuses government services, emerging applications have caught my eye:

Smart Borders and Checkpoints

With biometrics and facial recognition, traditional checkpoints will soon be a thing of the past. Cubic Transportation Systems—the company behind London’s ticketless public transit—is currently developing facial recognition for automated transport barriers. Digital security company Gemalto predicts that biometric systems will soon cross-reference individual faces with passport databases at security checkpoints, and China has already begun to test this at scale. While the Alibaba Ant Financial affiliate’s “Smile to Pay” feature allows users to authenticate digital payments with their faces, nationally overseen facial recognition technologies allow passengers to board planes, employees to enter office spaces, and students to access university halls. With biometric-geared surveillance at national borders, supply chains and international travelers could be tracked automatically, and granted or denied access according to biometrics and cross-referenced databases.

Policing and Security

Leveraging predictive analytics, China is also working to integrate security footage into a national surveillance and data-sharing system. By merging citizen data in its “Police Cloud”—including everything from criminal and medical records, transaction data, travel records and social media—it may soon be able to spot suspects and predict crime in advance. But China is not alone. During London’s Notting Hill Carnival this year, the Metropolitan Police used facial recognition cross-referenced with crime data to pre-identify and track likely offenders.

Smart Courts

AI may soon be reaching legal trials as well. UCL computer scientists have developed software capable of predicting courtroom outcomes based on data patterns with unprecedented accuracy. Assessing risk of flight, the National Bureau of Economic Research now uses an algorithm leveraging data from hundreds of thousands of NYC cases to recommend whether defendants should be granted bail. But while AI allows for streamlined governance, the public sector’s power to misuse our data is a valid concern and issues with bias as a result of historical data still remain. As tons of new information is generated about our every move, how do we keep governments accountable?

Enter the blockchain.

Transparent Governance and Accountability
Without doubt, alongside AI, government’s greatest disruptor is the newly-minted blockchain. Relying on a decentralized web of nodes, blockchain can securely verify transactions, signatures, and other information. This makes it essentially impossible for hackers, companies, officials, or even governments to falsify information on the blockchain.

As you’d expect, many government elites are therefore slow to adopt the technology, fearing enforced accountability. But blockchain’s benefits to government may be too great to ignore.

First, blockchain will be a boon for regulatory compliance.

As transactions on a blockchain are irreversible and transparent, uploaded sensor data can’t be corrupted. This means middlemen have no way of falsifying information to shirk regulation, and governments eliminate the need to enforce charges after the fact.

Apply this to carbon pricing, for instance, and emission sensors could fluidly log carbon credits onto a carbon credit blockchain, such as that developed by Ecosphere+. As carbon values are added to the price of everyday products or to corporations’ automated taxes, compliance and transparency would soon be digitally embedded.

Blockchain could also bolster government efforts in cybersecurity. As supercities and nation-states build IoT-connected traffic systems, surveillance networks, and sensor-tracked supply chain management, blockchain is critical in protecting connected devices from cyberattack.

But blockchain will inevitably hold governments accountable as well. By automating and tracking high-risk transactions, blockchain may soon eliminate fraud in cash transfers, public contracts and aid funds. Already, the UN World Food Program has piloted blockchain to manage cash-based transfers and aid flows to Syrian refugees in Jordan.

Blockchain-enabled “smart contracts” could automate exchange of real assets according to publicly visible, pre-programmed conditions, disrupting the $9.5 trillion market of public-sector contracts and public investment projects.

Eliminating leakages and increasing transparency, a distributed ledger has the potential to save trillions.

Future Implications
It is truly difficult to experiment with new forms of government. It’s not like there are new countries waiting to be discovered where we can begin fresh. And with entrenched bureaucracies and dominant industrial players, changing an existing nation’s form of government is extremely difficult and usually only happens during times of crisis or outright revolution.

Perhaps we will develop and explore new forms of government in the virtual world (to be explored during a future blog), or perhaps Sea Steading will allow us to physically build new island nations. And ultimately, as we move off the earth to Mars and space colonies, we will have yet another chance to start fresh.

But, without question, 90 percent or more of today’s political processes herald back to a day before technology, and it shows in terms of speed and efficiency.

Ultimately, there will be a shift to digital governments enabled with blockchain’s transparency, and we will redefine the relationship between citizens and the public sector.

One day I hope i-voting will allow anyone anywhere to participate in policy, and cloud-based governments will start to compete in e-services. As four billion new minds come online over the next several years, people may soon have the opportunity to choose their preferred government and citizenship digitally, independent of birthplace.

In 50 years, what will our governments look like? Will we have an interplanetary order, or a multitude of publicly-run ecosystems? Will cyber-ocracies rule our physical worlds with machine intelligence, or will blockchains allow for hive mind-like democracy?

The possibilities are endless, and only we can shape them.

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#433696 3 Big Ways Tech Is Disrupting Global ...

Disruptive business models are often powered by alternative financing. In Part 1 of this series, I discussed how mobile is redefining money and banking and shared some of the dramatic transformations in the global remittance infrastructure.

In this article, we’ll discuss:

Peer-to-peer lending
AI financial advisors and robo traders
Seamless Transactions

Let’s dive right back in…

Decentralized Lending = Democratized Access to Finances
Peer-to-peer (P2P) lending is an age-old practice, traditionally with high risk and extreme locality. Now, the P2P funding model is being digitized and delocalized, bringing lending online and across borders.

Zopa, the first official crowdlending platform, arrived in the United Kingdom in 2004. Since then, the consumer crowdlending platform has facilitated lending of over 3 billion euros ($3.5 billion USD) of loans.

Person-to-business crowdlending took off, again in the U.K., in 2005 with Funding Circle, now with over 5 billion euros (~5.8 billion USD) of capital loaned to small businesses around the world.

Crowdlending next took off in the US in 2006, with platforms like Prosper and Lending Club. The US crowdlending industry has boomed to $21 billion in loans, across 515,000 loans.

Let’s take a step back… to a time before banks, when lending took place between trusted neighbors in small villages across the globe. Lending started as peer-to-peer transactions.

As villages turned into towns, towns turned into cities, and cities turned into sprawling metropolises, neighborly trust and the ability to communicate across urban landscapes broke down. That’s where banks and other financial institutions came into play—to add trust back into the lending equation.

With crowdlending, we are evidently returning to this pre-centralized-banking model of loans, and moving away from cumbersome intermediaries (e.g. high fees, regulations, and extra complexity).

Fueled by the permeation of the internet, P2P lending took on a new form as ‘crowdlending’ in the early 2000s. Now, as blockchain and artificial intelligence arrive on the digital scene, P2P lending platforms are being overhauled with transparency, accountability, reliability, and immutability.

Artificial Intelligence Micro Lending & Credit Scores
We are beginning to augment our quantitative decision-making with neural networks processing borrowers’ financial data to determine their financial ‘fate’ (or, as some call it, your credit score). Companies like Smart Finance Group (backed by Kai Fu Lee and Sinovation Ventures) are using artificial intelligence to minimize default rates for tens of millions of microloans.

Smart Finance is fueled by users’ personal data, particularly smartphone data and usage behavior. Users are required to give Smart Finance access to their smartphone data, so that Smart Finance’s artificial intelligence engine can generate a credit score from the personal information.

The benefits of this AI-powered lending platform do not stop at increased loan payback rates; there’s a massive speed increase as well. Smart Finance loans are frequently approved in under eight seconds. As we’ve seen with other artificial intelligence disruptions, data is the new gold.

Digitizing access to P2P loans paves the way for billions of people currently without access to banking to leapfrog the centralized banking system, just as Africa bypassed landline phones and went straight to mobile. Leapfrogging centralized banking and the credit system is exactly what Smart Finance has done for hundreds of millions of people in China.

Blockchain-Backed Crowdlending
As artificial intelligence accesses even the most mundane mobile browsing data to assign credit scores, blockchain technologies, particularly immutable ledgers and smart contracts, are massive disruptors to the archaic banking system, building additional trust and transparency on top of current P2P lending models.

Immutable ledgers provide the necessary transparency for accurate credit and loan defaulting history. Smart contracts executed on these immutable ledgers bring the critical ability to digitally replace cumbersome, expensive third parties (like banks), allowing individual borrowers or businesses to directly connect with willing lenders.

Two of the leading blockchain platforms for P2P lending are ETHLend and SALT Lending.

ETHLend is an Ethereum-based decentralized application aiming to bring transparency and trust to P2P lending through Ethereum network smart contracts.

Secure Automated Lending Technology (SALT) allows cryptocurrency asset holders to use their digital assets as collateral for cash loans, without the need to liquidate their holdings, giving rise to a digital-asset-backed lending market.

While blockchain poses a threat to many of the large, centralized banking institutions, some are taking advantage of the new technology to optimize their internal lending, credit scoring, and collateral operations.

In March 2018, ING and Credit Suisse successfully exchanged 25 million euros using HQLA-X, a blockchain-based collateral lending platform.

HQLA-X runs on the R3 Corda blockchain, a platform designed specifically to help heritage financial and commerce institutions migrate away from their inefficient legacy financial infrastructure.

Blockchain and tokenization are going through their own fintech and regulation shakeup right now. In a future blog, I’ll discuss the various efforts to more readily assure smart contracts, and the disruptive business model of security tokens and the US Securities and Exchange Commission.

Parallels to the Global Abundance of Capital
The abundance of capital being created by the advent of P2P loans closely relates to the unprecedented global abundance of capital.

Initial coin offerings (ICOs) and crowdfunding are taking a strong stand in disrupting the $164 billion venture capital market. The total amount invested in ICOs has risen from $6.6 billion in 2017 to $7.15 billion USD in the first half of 2018. Crowdfunding helped projects raise more than $34 billion in 2017, with experts projecting that global crowdfunding investments will reach $300 billion by 2025.

In the last year alone, using ICOs, over a dozen projects have raised hundreds of millions of dollars in mere hours. Take Filecoin, for example, which raised $257 million  in only 30 days; its first $135 million was raised in the first hour. Similarly, the Dragon Coin project (which itself is revolutionizing remittance in high-stakes casinos around the world) raised $320 million in its 30-day public ICO.

Some Important Takeaways…

Technology-backed fundraising and financial services are disrupting the world’s largest financial institutions. Anyone, anywhere, at anytime will be able to access the capital they need to pursue their idea.

The speed at which we can go from “I’ve got an idea” to “I run a billion-dollar company” is moving faster than ever.

Following Ray Kurzweil’s Law of Accelerating Returns, the rapid decrease in time to access capital is intimately linked (and greatly dependent on) a financial infrastructure (technology, institutions, platforms, and policies) that can adapt and evolve just as rapidly.

This new abundance of capital requires financial decision-making with ever-higher market prediction precision. That’s exactly where artificial intelligence is already playing a massive role.

Artificial Intelligence, Robo Traders, and Financial Advisors
On May 6, 2010, the Dow Jones Industrial Average suddenly collapsed by 998.5 points (equal to 8 percent, or $1 trillion). The crash lasted over 35 minutes and is now known as the ‘Flash Crash’. While no one knows the specific reason for this 2010 stock market anomaly, experts widely agree that the Flash Crash had to do with algorithmic trading.

With the ability to have instant, trillion-dollar market impacts, algorithmic trading and artificial intelligence are undoubtedly ingrained in how financial markets operate.

In 2017, CNBC.com estimated that 90 percent of daily trading volume in stock trading is done by machine algorithms, and only 10 percent is carried out directly by humans.

Artificial intelligence and financial management algorithms are not only available to top Wall Street players.

Robo-advisor financial management apps, like Wealthfront and Betterment, are rapidly permeating the global market. Wealthfront currently has $9.5 billion in assets under management, and Betterment has $10 billion.

Artificial intelligent financial agents are already helping financial institutions protect your money and fight fraud. A prime application for machine learning is in detecting anomalies in your spending and transaction habits, and flagging potentially fraudulent transactions.

As artificial intelligence continues to exponentially increase in power and capabilities, increasingly powerful trading and financial management bots will come online, finding massive new and previously lost streams of wealth.

How else are artificial intelligence and automation transforming finance?

Disruptive Remittance and Seamless Transactions
When was the last time you paid in cash at a toll booth? How about for a taxi ride?

EZ-Pass, the electronic tolling company implemented extensively on the East Coast, has done wonders to reduce traffic congestion and increase traffic flow.

Driving down I-95 on the East Coast of the United States, drivers rarely notice their financial transaction with the state’s tolling agencies. The transactions are seamless.

The Uber app enables me to travel without my wallet. I can forget about payment on my trip, free up my mental bandwidth and time for higher-priority tasks. The entire process is digitized and, by extension, automated and integrated into Uber’s platform (Note: This incredible convenience many times causes me to accidentally walk out of taxi cabs without paying!).

In January 2018, we saw the success of the first cutting-edge, AI-powered Amazon Go store open in Seattle, Washington. The store marked a new era in remittance and transactions. Gone are the days of carrying credit cards and cash, and gone are the cash registers. And now, on the heals of these early ‘beta-tests’, Amazon is considering opening as many as 3,000 of these cashierless stores by 2023.

Amazon Go stores use AI algorithms that watch various video feeds (from advanced cameras) throughout the store to identify who picks up groceries, exactly what products they select, and how much to charge that person when they walk out of the store. It’s a grab and go experience.

Let’s extrapolate the notion of seamless, integrated payment systems from Amazon Go and Uber’s removal of post-ride payment to the rest of our day-to-day experience.

Imagine this near future:

As you near the front door of your home, your AI assistant summons a self-driving Uber that takes you to the Hyperloop station (after all, you work in L.A. but live in San Francisco).

At the station, you board your pod, without noticing that your ticket purchase was settled via a wireless payment checkpoint.

After work, you stop at the Amazon Go and pick up dinner. Your virtual AI assistant passes your Amazon account information to the store’s payment checkpoint, as the store’s cameras and sensors track you, your cart and charge you auto-magically.

At home, unbeknownst to you, your AI has already restocked your fridge and pantry with whatever items you failed to pick up at the Amazon Go.

Once we remove the actively transacting aspect of finance, what else becomes possible?

Top Conclusions
Extraordinary transformations are happening in the finance world. We’ve only scratched the surface of the fintech revolution. All of these transformative financial technologies require high-fidelity assurance, robust insurance, and a mechanism for storing value.

I’ll dive into each of these other facets of financial services in future articles.

For now, thanks to coming global communication networks being deployed on 5G, Alphabet’s LUNE, SpaceX’s Starlink and OneWeb, by 2024, nearly all 8 billion people on Earth will be online.

Once connected, these new minds, entrepreneurs, and customers need access to money and financial services to meaningfully participate in the world economy.

By connecting lenders and borrowers around the globe, decentralized lending drives down global interest rates, increases global financial market participation, and enables economic opportunity to the billions of people who are about to come online.

We’re living in the most abundant time in human history, and fintech is just getting started.

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#432311 Everyone Is Talking About AI—But Do ...

In 2017, artificial intelligence attracted $12 billion of VC investment. We are only beginning to discover the usefulness of AI applications. Amazon recently unveiled a brick-and-mortar grocery store that has successfully supplanted cashiers and checkout lines with computer vision, sensors, and deep learning. Between the investment, the press coverage, and the dramatic innovation, “AI” has become a hot buzzword. But does it even exist yet?

At the World Economic Forum Dr. Kai-Fu Lee, a Taiwanese venture capitalist and the founding president of Google China, remarked, “I think it’s tempting for every entrepreneur to package his or her company as an AI company, and it’s tempting for every VC to want to say ‘I’m an AI investor.’” He then observed that some of these AI bubbles could burst by the end of 2018, referring specifically to “the startups that made up a story that isn’t fulfillable, and fooled VCs into investing because they don’t know better.”

However, Dr. Lee firmly believes AI will continue to progress and will take many jobs away from workers. So, what is the difference between legitimate AI, with all of its pros and cons, and a made-up story?

If you parse through just a few stories that are allegedly about AI, you’ll quickly discover significant variation in how people define it, with a blurred line between emulated intelligence and machine learning applications.

I spoke to experts in the field of AI to try to find consensus, but the very question opens up more questions. For instance, when is it important to be accurate to a term’s original definition, and when does that commitment to accuracy amount to the splitting of hairs? It isn’t obvious, and hype is oftentimes the enemy of nuance. Additionally, there is now a vested interest in that hype—$12 billion, to be precise.

This conversation is also relevant because world-renowned thought leaders have been publicly debating the dangers posed by AI. Facebook CEO Mark Zuckerberg suggested that naysayers who attempt to “drum up these doomsday scenarios” are being negative and irresponsible. On Twitter, business magnate and OpenAI co-founder Elon Musk countered that Zuckerberg’s understanding of the subject is limited. In February, Elon Musk engaged again in a similar exchange with Harvard professor Steven Pinker. Musk tweeted that Pinker doesn’t understand the difference between functional/narrow AI and general AI.

Given the fears surrounding this technology, it’s important for the public to clearly understand the distinctions between different levels of AI so that they can realistically assess the potential threats and benefits.

As Smart As a Human?
Erik Cambria, an expert in the field of natural language processing, told me, “Nobody is doing AI today and everybody is saying that they do AI because it’s a cool and sexy buzzword. It was the same with ‘big data’ a few years ago.”

Cambria mentioned that AI, as a term, originally referenced the emulation of human intelligence. “And there is nothing today that is even barely as intelligent as the most stupid human being on Earth. So, in a strict sense, no one is doing AI yet, for the simple fact that we don’t know how the human brain works,” he said.

He added that the term “AI” is often used in reference to powerful tools for data classification. These tools are impressive, but they’re on a totally different spectrum than human cognition. Additionally, Cambria has noticed people claiming that neural networks are part of the new wave of AI. This is bizarre to him because that technology already existed fifty years ago.

However, technologists no longer need to perform the feature extraction by themselves. They also have access to greater computing power. All of these advancements are welcomed, but it is perhaps dishonest to suggest that machines have emulated the intricacies of our cognitive processes.

“Companies are just looking at tricks to create a behavior that looks like intelligence but that is not real intelligence, it’s just a mirror of intelligence. These are expert systems that are maybe very good in a specific domain, but very stupid in other domains,” he said.

This mimicry of intelligence has inspired the public imagination. Domain-specific systems have delivered value in a wide range of industries. But those benefits have not lifted the cloud of confusion.

Assisted, Augmented, or Autonomous
When it comes to matters of scientific integrity, the issue of accurate definitions isn’t a peripheral matter. In a 1974 commencement address at the California Institute of Technology, Richard Feynman famously said, “The first principle is that you must not fool yourself—and you are the easiest person to fool.” In that same speech, Feynman also said, “You should not fool the layman when you’re talking as a scientist.” He opined that scientists should bend over backwards to show how they could be wrong. “If you’re representing yourself as a scientist, then you should explain to the layman what you’re doing—and if they don’t want to support you under those circumstances, then that’s their decision.”

In the case of AI, this might mean that professional scientists have an obligation to clearly state that they are developing extremely powerful, controversial, profitable, and even dangerous tools, which do not constitute intelligence in any familiar or comprehensive sense.

The term “AI” may have become overhyped and confused, but there are already some efforts underway to provide clarity. A recent PwC report drew a distinction between “assisted intelligence,” “augmented intelligence,” and “autonomous intelligence.” Assisted intelligence is demonstrated by the GPS navigation programs prevalent in cars today. Augmented intelligence “enables people and organizations to do things they couldn’t otherwise do.” And autonomous intelligence “establishes machines that act on their own,” such as autonomous vehicles.

Roman Yampolskiy is an AI safety researcher who wrote the book “Artificial Superintelligence: A Futuristic Approach.” I asked him whether the broad and differing meanings might present difficulties for legislators attempting to regulate AI.

Yampolskiy explained, “Intelligence (artificial or natural) comes on a continuum and so do potential problems with such technology. We typically refer to AI which one day will have the full spectrum of human capabilities as artificial general intelligence (AGI) to avoid some confusion. Beyond that point it becomes superintelligence. What we have today and what is frequently used in business is narrow AI. Regulating anything is hard, technology is no exception. The problem is not with terminology but with complexity of such systems even at the current level.”

When asked if people should fear AI systems, Dr. Yampolskiy commented, “Since capability comes on a continuum, so do problems associated with each level of capability.” He mentioned that accidents are already reported with AI-enabled products, and as the technology advances further, the impact could spread beyond privacy concerns or technological unemployment. These concerns about the real-world effects of AI will likely take precedence over dictionary-minded quibbles. However, the issue is also about honesty versus deception.

Is This Buzzword All Buzzed Out?
Finally, I directed my questions towards a company that is actively marketing an “AI Virtual Assistant.” Carl Landers, the CMO at Conversica, acknowledged that there are a multitude of explanations for what AI is and isn’t.

He said, “My definition of AI is technology innovation that helps solve a business problem. I’m really not interested in talking about the theoretical ‘can we get machines to think like humans?’ It’s a nice conversation, but I’m trying to solve a practical business problem.”

I asked him if AI is a buzzword that inspires publicity and attracts clients. According to Landers, this was certainly true three years ago, but those effects have already started to wane. Many companies now claim to have AI in their products, so it’s less of a differentiator. However, there is still a specific intention behind the word. Landers hopes to convey that previously impossible things are now possible. “There’s something new here that you haven’t seen before, that you haven’t heard of before,” he said.

According to Brian Decker, founder of Encom Lab, machine learning algorithms only work to satisfy their preexisting programming, not out of an interior drive for better understanding. Therefore, he views AI as an entirely semantic argument.

Decker stated, “A marketing exec will claim a photodiode controlled porch light has AI because it ‘knows when it is dark outside,’ while a good hardware engineer will point out that not one bit in a register in the entire history of computing has ever changed unless directed to do so according to the logic of preexisting programming.”

Although it’s important for everyone to be on the same page regarding specifics and underlying meaning, AI-powered products are already powering past these debates by creating immediate value for humans. And ultimately, humans care more about value than they do about semantic distinctions. In an interview with Quartz, Kai-Fu Lee revealed that algorithmic trading systems have already given him an 8X return over his private banking investments. “I don’t trade with humans anymore,” he said.

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#431866 The Technologies We’ll Have Our Eyes ...

It’s that time of year again when our team has a little fun and throws on our futurist glasses to look ahead at some of the technologies and trends we’re most anticipating next year.
Whether the implications of a technology are vast or it resonates with one of us personally, here’s the list from some of the Singularity Hub team of what we have our eyes on as we enter the new year.
For a little refresher, these were the technologies our team was fired up about at the start of 2017.
Tweet us the technology you’re excited to watch in 2018 at @SingularityHub.
Cryptocurrency and Blockchain
“Given all the noise Bitcoin is making globally in the media, it is driving droves of main street investors to dabble in and learn more about cryptocurrencies. This will continue to raise valuations and drive adoption of blockchain. From Bank of America recently getting a blockchain-based patent approved to the Australian Securities Exchange’s plan to use blockchain, next year is going to be chock-full of these stories. Coindesk even recently spotted a patent filing from Apple involving blockchain. From ‘China’s Ethereum’, NEO, to IOTA to Golem to Qtum, there are a lot of interesting cryptos to follow given the immense numbers of potential applications. Hang on, it’s going to be a bumpy ride in 2018!”
–Kirk Nankivell, Website Manager
There Is No One Technology to Watch
“Next year may be remembered for advances in gene editing, blockchain, AI—or most likely all these and more. There is no single technology to watch. A number of consequential trends are advancing and converging. This general pace of change is exciting, and it also contributes to spiking anxiety. Technology’s invisible lines of force are extending further and faster into our lives and subtly subverting how we view the world and each other in unanticipated ways. Still, all the near-term messiness and volatility, the little and not-so-little dramas, the hype and disillusion, the controversies and conflict, all that smooths out a bit when you take a deep breath and a step back, and it’s my sincere hope and belief the net result will be more beneficial than harmful.”
–Jason Dorrier, Managing Editor
‘Fake News’ Fighting Technology
“It’s been a wild ride for the media this year with the term ‘fake news’ moving from the public’s peripheral and into mainstream vocabulary. The spread of ‘fake news’ is often blamed on media outlets, but social media platforms and search engines are often responsible too. (Facebook still won’t identify as a media company—maybe next year?) Yes, technology can contribute to spreading false information, but it can also help stop it. From technologists who are building in-article ‘trust indicator’ features, to artificial intelligence systems that can both spot and shut down fake news early on, I’m hopeful we can create new solutions to this huge problem. One step further: if publishers step up to fix this we might see some faith restored in the media.”
–Alison E. Berman, Digital Producer
Pay-as-You-Go Home Solar Power
“People in rural African communities are increasingly bypassing electrical grids (which aren’t even an option in many cases) and installing pay-as-you-go solar panels on their homes. The companies offering these services are currently not subject to any regulations, though they’re essentially acting as a utility. As demand for power grows, they’ll have to come up with ways to efficiently scale, and to balance the humanitarian and capitalistic aspects of their work. It’s fascinating to think traditional grids may never be necessary in many areas of the continent thanks to this technology.”
–Vanessa Bates Ramirez, Associate Editor
Virtual Personal Assistants
“AI is clearly going to rule our lives, and in many ways it already makes us look like clumsy apes. Alexa, Siri, and Google Assistant are promising first steps toward a world of computers that understand us and relate to us on an emotional level. I crave the day when my Apple Watch coaches me into healthier habits, lets me know about new concerts nearby, speaks to my self-driving Lyft on my behalf, and can help me respond effectively to aggravating emails based on communication patterns. But let’s not brush aside privacy concerns and the implications of handing over our personal data to megacorporations. The scariest thing here is that privacy laws and advertising ethics do not accommodate this level of intrusive data hoarding.”
–Matthew Straub, Director of Digital Engagement (Hub social media)
Solve for Learning: Educational Apps for Children in Conflict Zones
“I am most excited by exponential technology when it is used to help solve a global grand challenge. Educational apps are currently being developed to help solve for learning by increasing accessibility to learning opportunities for children living in conflict zones. Many children in these areas are not receiving an education, with girls being 2.5 times more likely than boys to be out of school. The EduApp4Syria project is developing apps to help children in Syria and Kashmir learn in their native languages. Mobile phones are increasingly available in these areas, and the apps are available offline for children who do not have consistent access to mobile networks. The apps are low-cost, easily accessible, and scalable educational opportunities.
–Paige Wilcoxson, Director, Curriculum & Learning Design
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Posted in Human Robots

#431301 Collective Intelligence Is the Root of ...

Many of us intuitively think about intelligence as an individual trait. As a society, we have a tendency to praise individual game-changers for accomplishments that would not be possible without their teams, often tens of thousands of people that work behind the scenes to make extraordinary things happen.
Matt Ridley, best-selling author of multiple books, including The Rational Optimist: How Prosperity Evolves, challenges this view. He argues that human achievement and intelligence are entirely “networking phenomena.” In other words, intelligence is collective and emergent as opposed to individual.
When asked what scientific concept would improve everybody’s cognitive toolkit, Ridley highlights collective intelligence: “It is by putting brains together through the division of labor— through trade and specialization—that human society stumbled upon a way to raise the living standards, carrying capacity, technological virtuosity, and knowledge base of the species.”
Ridley has spent a lifetime exploring human prosperity and the factors that contribute to it. In a conversation with Singularity Hub, he redefined how we perceive intelligence and human progress.
Raya Bidshahri: The common perspective seems to be that competition is what drives innovation and, consequently, human progress. Why do you think collaboration trumps competition when it comes to human progress?
Matt Ridley: There is a tendency to think that competition is an animal instinct that is natural and collaboration is a human instinct we have to learn. I think there is no evidence for that. Both are deeply rooted in us as a species. The evidence from evolutionary biology tells us that collaboration is just as important as competition. Yet, at the end, the Darwinian perspective is quite correct: it’s usually cooperation for the purpose of competition, wherein a given group tries to achieve something more effectively than another group. But the point is that the capacity to co-operate is very deep in our psyche.
RB: You write that “human achievement is entirely a networking phenomenon,” and we need to stop thinking about intelligence as an individual trait, and that instead we should look at what you refer to as collective intelligence. Why is that?
MR: The best way to think about it is that IQ doesn’t matter, because a hundred stupid people who are talking to each other will accomplish more than a hundred intelligent people who aren’t. It’s absolutely vital to see that everything from the manufacturing of a pencil to the manufacturing of a nuclear power station can’t be done by an individual human brain. You can’t possibly hold in your head all the knowledge you need to do these things. For the last 200,000 years we’ve been exchanging and specializing, which enables us to achieve much greater intelligence than we can as individuals.
RB: We often think of achievement and intelligence on individual terms. Why do you think it’s so counter-intuitive for us to think about collective intelligence?
MR: People are surprisingly myopic to the extent they understand the nature of intelligence. I think it goes back to a pre-human tendency to think in terms of individual stories and actors. For example, we love to read about the famous inventor or scientist who invented or discovered something. We never tell these stories as network stories. We tell them as individual hero stories.

“It’s absolutely vital to see that everything from the manufacturing of a pencil to the manufacturing of a nuclear power station can’t be done by an individual human brain.”

This idea of a brilliant hero who saves the world in the face of every obstacle seems to speak to tribal hunter-gatherer societies, where the alpha male leads and wins. But it doesn’t resonate with how human beings have structured modern society in the last 100,000 years or so. We modern-day humans haven’t internalized a way of thinking that incorporates this definition of distributed and collective intelligence.
RB: One of the books you’re best known for is The Rational Optimist. What does it mean to be a rational optimist?
MR: My optimism is rational because it’s not based on a feeling, it’s based on evidence. If you look at the data on human living standards over the last 200 years and compare it with the way that most people actually perceive our progress during that time, you’ll see an extraordinary gap. On the whole, people seem to think that things are getting worse, but things are actually getting better.
We’ve seen the most astonishing improvements in human living standards: we’ve brought the number of people living in extreme poverty to 9 percent from about 70 percent when I was born. The human lifespan is expanding by five hours a day, child mortality has gone down by two thirds in half a century, and much more. These feats dwarf the things that are going wrong. Yet most people are quite pessimistic about the future despite the things we’ve achieved in the past.
RB: Where does this idea of collective intelligence fit in rational optimism?
MR: Underlying the idea of rational optimism was understanding what prosperity is, and why it happens to us and not to rabbits or rocks. Why are we the only species in the world that has concepts like a GDP, growth rate, or living standard? My answer is that it comes back to this phenomena of collective intelligence. The reason for a rise in living standards is innovation, and the cause of that innovation is our ability to collaborate.
The grand theme of human history is exchange of ideas, collaborating through specialization and the division of labor. Throughout history, it’s in places where there is a lot of open exchange and trade where you get a lot of innovation. And indeed, there are some extraordinary episodes in human history when societies get cut off from exchange and their innovation slows down and they start moving backwards. One example of this is Tasmania, which was isolated and lost a lot of the technologies it started off with.
RB: Lots of people like to point out that just because the world has been getting better doesn’t guarantee it will continue to do so. How do you respond to that line of argumentation?
MR: There is a quote by Thomas Babington Macaulay from 1830, where he was fed up with the pessimists of the time saying things will only get worse. He says, “On what principle is it that with nothing but improvement behind us, we are to expect nothing but deterioration before us?” And this was back in the 1830s, where in Britain and a few other parts of the world, we were only seeing the beginning of the rise of living standards. It’s perverse to argue that because things were getting better in the past, now they are about to get worse.

“I think it’s worth remembering that good news tends to be gradual, and bad news tends to be sudden. Hence, the good stuff is rarely going to make the news.”

Another thing to point out is that people have always said this. Every generation thought they were at the peak looking downhill. If you think about the opportunities technology is about to give us, whether it’s through blockchain, gene editing, or artificial intelligence, there is every reason to believe that 2017 is going to look like a time of absolute misery compared to what our children and grandchildren are going to experience.
RB: There seems to be a fair amount of mayhem in today’s world, and lots of valid problems to pay attention to in the news. What would you say to empower our readers that we will push through it and continue to grow and improve as a species?
MR: I think it’s worth remembering that good news tends to be gradual, and bad news tends to be sudden. Hence, the good stuff is rarely going to make the news. It’s happening in an inexorable way, as a result of ordinary people exchanging, specializing, collaborating, and innovating, and it’s surprisingly hard to stop it.
Even if you look back to the 1940s, at the end of a world war, there was still a lot of innovation happening. In some ways it feels like we are going through a bad period now. I do worry a lot about the anti-enlightenment values that I see spreading in various parts of the world. But then I remind myself that people are working on innovative projects in the background, and these things are going to come through and push us forward.
Image Credit: Sahacha Nilkumhang / Shutterstock.com

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Posted in Human Robots