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#432893 These 4 Tech Trends Are Driving Us ...

From a first-principles perspective, the task of feeding eight billion people boils down to converting energy from the sun into chemical energy in our bodies.

Traditionally, solar energy is converted by photosynthesis into carbohydrates in plants (i.e., biomass), which are either eaten by the vegans amongst us, or fed to animals, for those with a carnivorous preference.

Today, the process of feeding humanity is extremely inefficient.

If we could radically reinvent what we eat, and how we create that food, what might you imagine that “future of food” would look like?

In this post we’ll cover:

Vertical farms
CRISPR engineered foods
The alt-protein revolution
Farmer 3.0

Let’s dive in.

Vertical Farming
Where we grow our food…

The average American meal travels over 1,500 miles from farm to table. Wine from France, beef from Texas, potatoes from Idaho.

Imagine instead growing all of your food in a 50-story tall vertical farm in downtown LA or off-shore on the Great Lakes where the travel distance is no longer 1,500 miles but 50 miles.

Delocalized farming will minimize travel costs at the same time that it maximizes freshness.

Perhaps more importantly, vertical farming also allows tomorrow’s farmer the ability to control the exact conditions of her plants year round.

Rather than allowing the vagaries of the weather and soil conditions to dictate crop quality and yield, we can now perfectly control the growing cycle.

LED lighting provides the crops with the maximum amount of light, at the perfect frequency, 24 hours a day, 7 days a week.

At the same time, sensors and robots provide the root system the exact pH and micronutrients required, while fine-tuning the temperature of the farm.

Such precision farming can generate yields that are 200% to 400% above normal.

Next let’s explore how we can precision-engineer the genetic properties of the plant itself.

CRISPR and Genetically Engineered Foods
What food do we grow?

A fundamental shift is occurring in our relationship with agriculture. We are going from evolution by natural selection (Darwinism) to evolution by human direction.

CRISPR (the cutting edge gene editing tool) is providing a pathway for plant breeding that is more predictable, faster and less expensive than traditional breeding methods.

Rather than our crops being subject to nature’s random, environmental whim, CRISPR unlocks our capability to modify our crops to match the available environment.

Further, using CRISPR we will be able to optimize the nutrient density of our crops, enhancing their value and volume.

CRISPR may also hold the key to eliminating common allergens from crops. As we identify the allergen gene in peanuts, for instance, we can use CRISPR to silence that gene, making the crops we raise safer for and more accessible to a rapidly growing population.

Yet another application is our ability to make plants resistant to infection or more resistant to drought or cold.

Helping to accelerate the impact of CRISPR, the USDA recently announced that genetically engineered crops will not be regulated—providing an opening for entrepreneurs to capitalize on the opportunities for optimization CRISPR enables.

CRISPR applications in agriculture are an opportunity to help a billion people and become a billionaire in the process.

Protecting crops against volatile environments, combating crop diseases and increasing nutrient values, CRISPR is a promising tool to help feed the world’s rising population.

The Alt-Protein/Lab-Grown Meat Revolution
Something like a third of the Earth’s arable land is used for raising livestock—a massive amount of land—and global demand for meat is predicted to double in the coming decade.

Today, we must grow an entire cow—all bones, skin, and internals included—to produce a steak.

Imagine if we could instead start with a single muscle stem cell and only grow the steak, without needing the rest of the cow? Think of it as cellular agriculture.

Imagine returning millions, perhaps billions, of acres of grazing land back to the wilderness? This is the promise of lab-grown meats.

Lab-grown meat can also be engineered (using technology like CRISPR) to be packed with nutrients and be the healthiest, most delicious protein possible.

We’re watching this technology develop in real time. Several startups across the globe are already working to bring artificial meats to the food industry.

JUST, Inc. (previously Hampton Creek) run by my friend Josh Tetrick, has been on a mission to build a food system where everyone can get and afford delicious, nutritious food. They started by exploring 300,000+ species of plants all around the world to see how they can make food better and now are investing heavily in stem-cell-grown meats.

Backed by Richard Branson and Bill Gates, Memphis Meats is working on ways to produce real meat from animal cells, rather than whole animals. So far, they have produced beef, chicken, and duck using cultured cells from living animals.

As with vertical farming, transitioning production of our majority protein source to a carefully cultivated environment allows for agriculture to optimize inputs (water, soil, energy, land footprint), nutrients and, importantly, taste.

Farmer 3.0
Vertical farming and cellular agriculture are reinventing how we think about our food supply chain and what food we produce.

The next question to answer is who will be producing the food?

Let’s look back at how farming evolved through history.

Farmers 0.0 (Neolithic Revolution, around 9000 BCE): The hunter-gatherer to agriculture transition gains momentum, and humans cultivated the ability to domesticate plants for food production.

Farmers 1.0 (until around the 19th century): Farmers spent all day in the field performing backbreaking labor, and agriculture accounted for most jobs.

Farmers 2.0 (mid-20th century, Green Revolution): From the invention of the first farm tractor in 1812 through today, transformative mechanical biochemical technologies (fertilizer) boosted yields and made the job of farming easier, driving the US farm job rate down to less than two percent today.

Farmers 3.0: In the near future, farmers will leverage exponential technologies (e.g., AI, networks, sensors, robotics, drones), CRISPR and genetic engineering, and new business models to solve the world’s greatest food challenges and efficiently feed the eight-billion-plus people on Earth.

An important driver of the Farmer 3.0 evolution is the delocalization of agriculture driven by vertical and urban farms. Vertical farms and urban agriculture are empowering a new breed of agriculture entrepreneurs.

Let’s take a look at an innovative incubator in Brooklyn, New York called Square Roots.

Ten farm-in-a-shipping-containers in a Brooklyn parking lot represent the first Square Roots campus. Each 8-foot x 8.5-foot x 20-foot shipping container contains an equivalent of 2 acres of produce and can yield more than 50 pounds of produce each week.

For 13 months, one cohort of next-generation food entrepreneurs takes part in a curriculum with foundations in farming, business, community and leadership.

The urban farming incubator raised a $5.4 million seed funding round in August 2017.

Training a new breed of entrepreneurs to apply exponential technology to growing food is essential to the future of farming.

One of our massive transformative purposes at the Abundance Group is to empower entrepreneurs to generate extraordinary wealth while creating a world of abundance. Vertical farms and cellular agriculture are key elements enabling the next generation of food and agriculture entrepreneurs.

Conclusion
Technology is driving food abundance.

We’re already seeing food become demonetized, as the graph below shows.

From 1960 to 2014, the percent of income spent on food in the U.S. fell from 19 percent to under 10 percent of total disposable income—a dramatic decrease over the 40 percent of household income spent on food in 1900.

The dropping percent of per-capita disposable income spent on food. Source: USDA, Economic Research Service, Food Expenditure Series
Ultimately, technology has enabled a massive variety of food at a significantly reduced cost and with fewer resources used for production.

We’re increasingly going to optimize and fortify the food supply chain to achieve more reliable, predictable, and nutritious ways to obtain basic sustenance.

And that means a world with abundant, nutritious, and inexpensive food for every man, woman, and child.

What an extraordinary time to be alive.

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

#432568 Tech Optimists See a Golden ...

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Posted in Human Robots

#432549 Your Next Pilot Could Be Drone Software

Would you get on a plane that didn’t have a human pilot in the cockpit? Half of air travelers surveyed in 2017 said they would not, even if the ticket was cheaper. Modern pilots do such a good job that almost any air accident is big news, such as the Southwest engine disintegration on April 17.

But stories of pilot drunkenness, rants, fights and distraction, however rare, are reminders that pilots are only human. Not every plane can be flown by a disaster-averting pilot, like Southwest Capt. Tammie Jo Shults or Capt. Chesley “Sully” Sullenberger. But software could change that, equipping every plane with an extremely experienced guidance system that is always learning more.

In fact, on many flights, autopilot systems already control the plane for basically all of the flight. And software handles the most harrowing landings—when there is no visibility and the pilot can’t see anything to even know where he or she is. But human pilots are still on hand as backups.

A new generation of software pilots, developed for self-flying vehicles, or drones, will soon have logged more flying hours than all humans have—ever. By combining their enormous amounts of flight data and experience, drone-control software applications are poised to quickly become the world’s most experienced pilots.

Drones That Fly Themselves
Drones come in many forms, from tiny quad-rotor copter toys to missile-firing winged planes, or even 7-ton aircraft that can stay aloft for 34 hours at a stretch.

When drones were first introduced, they were flown remotely by human operators. However, this merely substitutes a pilot on the ground for one aloft. And it requires significant communications bandwidth between the drone and control center, to carry real-time video from the drone and to transmit the operator’s commands.

Many newer drones no longer need pilots; some drones for hobbyists and photographers can now fly themselves along human-defined routes, leaving the human free to sightsee—or control the camera to get the best view.

University researchers, businesses, and military agencies are now testing larger and more capable drones that will operate autonomously. Swarms of drones can fly without needing tens or hundreds of humans to control them. And they can perform coordinated maneuvers that human controllers could never handle.

Could humans control these 1,218 drones all together?

Whether flying in swarms or alone, the software that controls these drones is rapidly gaining flight experience.

Importance of Pilot Experience
Experience is the main qualification for pilots. Even a person who wants to fly a small plane for personal and noncommercial use needs 40 hours of flying instruction before getting a private pilot’s license. Commercial airline pilots must have at least 1,000 hours before even serving as a co-pilot.

On-the-ground training and in-flight experience prepare pilots for unusual and emergency scenarios, ideally to help save lives in situations like the “Miracle on the Hudson.” But many pilots are less experienced than “Sully” Sullenberger, who saved his planeload of people with quick and creative thinking. With software, though, every plane can have on board a pilot with as much experience—if not more. A popular software pilot system, in use in many aircraft at once, could gain more flight time each day than a single human might accumulate in a year.

As someone who studies technology policy as well as the use of artificial intelligence for drones, cars, robots, and other uses, I don’t lightly suggest handing over the controls for those additional tasks. But giving software pilots more control would maximize computers’ advantages over humans in training, testing, and reliability.

Training and Testing Software Pilots
Unlike people, computers will follow sets of instructions in software the same way every time. That lets developers create instructions, test reactions, and refine aircraft responses. Testing could make it far less likely, for example, that a computer would mistake the planet Venus for an oncoming jet and throw the plane into a steep dive to avoid it.

The most significant advantage is scale: Rather than teaching thousands of individual pilots new skills, updating thousands of aircraft would require only downloading updated software.

These systems would also need to be thoroughly tested—in both real-life situations and in simulations—to handle a wide range of aviation situations and to withstand cyberattacks. But once they’re working well, software pilots are not susceptible to distraction, disorientation, fatigue, or other human impairments that can create problems or cause errors even in common situations.

Rapid Response and Adaptation
Already, aircraft regulators are concerned that human pilots are forgetting how to fly on their own and may have trouble taking over from an autopilot in an emergency.

In the “Miracle on the Hudson” event, for example, a key factor in what happened was how long it took for the human pilots to figure out what had happened—that the plane had flown through a flock of birds, which had damaged both engines—and how to respond. Rather than the approximately one minute it took the humans, a computer could have assessed the situation in seconds, potentially saving enough time that the plane could have landed on a runway instead of a river.

Aircraft damage can pose another particularly difficult challenge for human pilots: It can change what effects the controls have on its flight. In cases where damage renders a plane uncontrollable, the result is often tragedy. A sufficiently advanced automated system could make minute changes to the aircraft’s steering and use its sensors to quickly evaluate the effects of those movements—essentially learning how to fly all over again with a damaged plane.

Boosting Public Confidence
The biggest barrier to fully automated flight is psychological, not technical. Many people may not want to trust their lives to computer systems. But they might come around when reassured that the software pilot has tens, hundreds, or thousands more hours of flight experience than any human pilot.

Other autonomous technologies, too, are progressing despite public concerns. Regulators and lawmakers are allowing self-driving cars on the roads in many states. But more than half of Americans don’t want to ride in one, largely because they don’t trust the technology. And only 17 percent of travelers around the world are willing to board a plane without a pilot. However, as more people experience self-driving cars on the road and have drones deliver them packages, it is likely that software pilots will gain in acceptance.

The airline industry will certainly be pushing people to trust the new systems: Automating pilots could save tens of billions of dollars a year. And the current pilot shortage means software pilots may be the key to having any airline service to smaller destinations.

Both Boeing and Airbus have made significant investments in automated flight technology, which would remove or reduce the need for human pilots. Boeing has actually bought a drone manufacturer and is looking to add software pilot capabilities to the next generation of its passenger aircraft. (Other tests have tried to retrofit existing aircraft with robotic pilots.)

One way to help regular passengers become comfortable with software pilots—while also helping to both train and test the systems—could be to introduce them as co-pilots working alongside human pilots. Planes would be operated by software from gate to gate, with the pilots instructed to touch the controls only if the system fails. Eventually pilots could be removed from the aircraft altogether, just like they eventually were from the driverless trains that we routinely ride in airports around the world.

This article was originally published on The Conversation. Read the original article.

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Posted in Human Robots

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

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

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

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

That’s exponential growth for you, folks.

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

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

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

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

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

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

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

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

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

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

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

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

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Posted in Human Robots

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

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

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

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

Massive change is occurring in this arena.

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

Let’s dive in.

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

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

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

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

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

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

There’s plenty more room for digital disruption.

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

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

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

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

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

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

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

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

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

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

But let’s take it one step further.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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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