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Every year, for just a few days in a major city, a small team of roboticists get to live the dream: ordering around their own personal robot butlers. In carefully-constructed replicas of a restaurant scene or a domestic setting, these robots perform any number of simple algorithmic tasks. “Get the can of beans from the shelf. Greet the visitors to the museum. Help the humans with their shopping. Serve the customers at the restaurant.”
This is Robocup @ Home, the annual tournament where teams of roboticists put their autonomous service robots to the test for practical domestic applications. The tasks seem simple and mundane, but considering the technology required reveals that they’re really not.
The Robot Butler Contest
Say you want a robot to fetch items in the supermarket. In a crowded, noisy environment, the robot must understand your commands, ask for clarification, and map out and navigate an unfamiliar environment, avoiding obstacles and people as it does so. Then it must recognize the product you requested, perhaps in a cluttered environment, perhaps in an unfamiliar orientation. It has to grasp that product appropriately—recall that there are entire multi-million-dollar competitions just dedicated to developing robots that can grasp a range of objects—and then return it to you.
It’s a job so simple that a child could do it—and so complex that teams of smart roboticists can spend weeks programming and engineering, and still end up struggling to complete simplified versions of this task. Of course, the child has the advantage of millions of years of evolutionary research and development, while the first robots that could even begin these tasks were only developed in the 1970s.
Even bearing this in mind, Robocup @ Home can feel like a place where futurist expectations come crashing into technologist reality. You dream of a smooth-voiced, sardonic JARVIS who’s already made your favorite dinner when you come home late from work; you end up shouting “remember the biscuits” at a baffled, ungainly droid in aisle five.
Caring for the Elderly
Famously, Japan is one of the most robo-enthusiastic nations in the world; they are the nation that stunned us all with ASIMO in 2000, and several studies have been conducted into the phenomenon. It’s no surprise, then, that humanoid robotics should be seriously considered as a solution to the crisis of the aging population. The Japanese government, as part of its robots strategy, has already invested $44 million in their development.
Toyota’s Human Support Robot (HSR-2) is a simple but programmable robot with a single arm; it can be remote-controlled to pick up objects and can monitor patients. HSR-2 has become the default robot for use in Robocup @ Home tournaments, at least in tasks that involve manipulating objects.
Alongside this, Toyota is working on exoskeletons to assist people in walking after strokes. It may surprise you to learn that nurses suffer back injuries more than any other occupation, at roughly three times the rate of construction workers, due to the day-to-day work of lifting patients. Toyota has a Care Assist robot/exoskeleton designed to fix precisely this problem by helping care workers with the heavy lifting.
The Home of the Future
The enthusiasm for domestic robotics is easy to understand and, in fact, many startups already sell robots marketed as domestic helpers in some form or another. In general, though, they skirt the immensely complicated task of building a fully capable humanoid robot—a task that even Google’s skunk-works department gave up on, at least until recently.
It’s plain to see why: far more research and development is needed before these domestic robots could be used reliably and at a reasonable price. Consumers with expectations inflated by years of science fiction saturation might find themselves frustrated as the robots fail to perform basic tasks.
Instead, domestic robotics efforts fall into one of two categories. There are robots specialized to perform a domestic task, like iRobot’s Roomba, which stuck to vacuuming and became the most successful domestic robot of all time by far.
The tasks need not necessarily be simple, either: the impressive but expensive automated kitchen uses the world’s most dexterous hands to cook meals, providing it can recognize the ingredients. Other robots focus on human-robot interaction, like Jibo: they essentially package the abilities of a voice assistant like Siri, Cortana, or Alexa to respond to simple questions and perform online tasks in a friendly, dynamic robot exterior.
In this way, the future of domestic automation starts to look a lot more like smart homes than a robot or domestic servant. General robotics is difficult in the same way that general artificial intelligence is difficult; competing with humans, the great all-rounders, is a challenge. Getting superhuman performance at a more specific task, however, is feasible and won’t cost the earth.
Individual startups without the financial might of a Google or an Amazon can develop specialized robots, like Seven Dreamers’ laundry robot, and hope that one day it will form part of a network of autonomous robots that each have a role to play in the household.
The Smart Home has been a staple of futurist expectations for a long time, to the extent that movies featuring smart homes out of control are already a cliché. But critics of the smart home idea—and of the internet of things more generally—tend to focus on the idea that, more often than not, software just adds an additional layer of things that can break (NSFW), in exchange for minimal added convenience. A toaster that can short-circuit is bad enough, but a toaster that can refuse to serve you toast because its firmware is updating is something else entirely.
That’s before you even get into the security vulnerabilities, which are all the more important when devices are installed in your home and capable of interacting with them. The idea of a smart watch that lets you keep an eye on your children might sound like something a security-conscious parent would like: a smart watch that can be hacked to track children, listen in on their surroundings, and even fool them into thinking a call is coming from their parents is the stuff of nightmares.
Key to many of these problems is the lack of standardization for security protocols, and even the products themselves. The idea of dozens of startups each developing a highly-specialized piece of robotics to perform a single domestic task sounds great in theory, until you realize the potential hazards and pitfalls of getting dozens of incompatible devices to work together on the same system.
It seems inevitable that there are yet more layers of domestic drudgery that can be automated away, decades after the first generation of time-saving domestic devices like the dishwasher and vacuum cleaner became mainstream. With projected market values into the billions and trillions of dollars, there is no shortage of industry interest in ironing out these kinks. But, for now at least, the answer to the question: “Where’s my robot butler?” is that it is gradually, painstakingly learning how to sort through groceries.
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With the Thanksgiving holiday upon us, it’s a great time to reflect on the future of food. Over the last few years, we have seen a dramatic rise in exponential technologies transforming the food industry from seed to plate. Food is important in many ways—too little or too much of it can kill us, and it is often at the heart of family, culture, our daily routines, and our biggest celebrations. The agriculture and food industries are also two of the world’s biggest employers. Let’s take a look to see what is in store for the future.
Over the last few years, we have seen a number of new companies emerge in the robotic farming industry. This includes new types of farming equipment used in arable fields, as well as indoor robotic vertical farms. In November 2017, Hands Free Hectare became the first in the world to remotely grow an arable crop. They used autonomous tractors to sow and spray crops, small rovers to take soil samples, drones to monitor crop growth, and an unmanned combine harvester to collect the crops. Since then, they’ve also grown and harvested a field of winter wheat, and have been adding additional technologies and capabilities to their arsenal of robotic farming equipment.
Indoor vertical farming is also rapidly expanding. As Engadget reported in October 2018, a number of startups are now growing crops like leafy greens, tomatoes, flowers, and herbs. These farms can grow food in urban areas, reducing transport, water, and fertilizer costs, and often don’t need pesticides since they are indoors. IronOx, which is using robots to grow plants with navigation technology used by self-driving cars, can grow 30 times more food per acre of land using 90 percent less water than traditional farmers. Vertical farming company Plenty was recently funded by Softbank’s Vision Fund, Jeff Bezos, and others to build 300 vertical farms in China.
These startups are not only succeeding in wealthy countries. Hello Tractor, an “uberized” tractor, has worked with 250,000 smallholder farms in Africa, creating both food security and tech-infused agriculture jobs. The World Food Progam’s Innovation Accelerator (an impact partner of Singularity University) works with hundreds of startups aimed at creating zero hunger. One project is focused on supporting refugees in developing “food computers” in refugee camps—computerized devices that grow food while also adjusting to the conditions around them. As exponential trends drive down the costs of robotics, sensors, software, and energy, we should see robotic farming scaling around the world and becoming the main way farming takes place.
Exponential technologies are not only revolutionizing how we grow vegetables and grains, but also how we generate protein and meat. The new cultured meat industry is rapidly expanding, led by startups such as Memphis Meats, Mosa Meats, JUST Meat, Inc. and Finless Foods, and backed by heavyweight investors including DFJ, Bill Gates, Richard Branson, Cargill, and Tyson Foods.
Cultured meat is grown in a bioreactor using cells from an animal, a scaffold, and a culture. The process is humane and, potentially, scientists can make the meat healthier by adding vitamins, removing fat, or customizing it to an individual’s diet and health concerns. Another benefit is that cultured meats, if grown at scale, would dramatically reduce environmental destruction, pollution, and climate change caused by the livestock and fishing industries. Similar to vertical farms, cultured meat is produced using technology and can be grown anywhere, on-demand and in a decentralized way.
Similar to robotic farming equipment, bioreactors will also follow exponential trends, rapidly falling in cost. In fact, the first cultured meat hamburger (created by Singularity University faculty Member Mark Post of Mosa Meats in 2013) cost $350,000 dollars. In 2018, Fast Company reported the cost was now about $11 per burger, and the Israeli startup Future Meat Technologies predicted they will produce beef at about $2 per pound in 2020, which will be competitive with existing prices. For those who have turkey on their mind, one can read about New Harvest’s work (one of the leading think tanks and research centers for the cultured meat and cellular agriculture industry) in funding efforts to generate a nugget of cultured turkey meat.
One outstanding question is whether cultured meat is safe to eat and how it will interact with the overall food supply chain. In the US, regulators like the Food and Drug Administration (FDA) and the US Department of Agriculture (USDA) are working out their roles in this process, with the FDA overseeing the cellular process and the FDA overseeing production and labeling.
Tech companies are also making great headway in streamlining food processing. Norwegian company Tomra Foods was an early leader in using imaging recognition, sensors, artificial intelligence, and analytics to more efficiently sort food based on shape, composition of fat, protein, and moisture, and other food safety and quality indicators. Their technologies have improved food yield by 5-10 percent, which is significant given they own 25 percent of their market.
These advances are also not limited to large food companies. In 2016 Google reported how a small family farm in Japan built a world-class cucumber sorting device using their open-source machine learning tool TensorFlow. SU startup Impact Vision uses hyper-spectral imaging to analyze food quality, which increases revenues and reduces food waste and product recalls from contamination.
These examples point to a question many have on their mind: will we live in a future where a few large companies use advanced technologies to grow the majority of food on the planet, or will the falling costs of these technologies allow family farms, startups, and smaller players to take part in creating a decentralized system? Currently, the future could flow either way, but it is important for smaller companies to take advantage of the most cutting-edge technology in order to stay competitive.
Food Purchasing and Delivery
In the last year, we have also seen a number of new developments in technology improving access to food. Amazon Go is opening grocery stores in Seattle, San Francisco, and Chicago where customers use an app that allows them to pick up their products and pay without going through cashier lines. Sam’s Club is not far behind, with an app that also allows a customer to purchase goods in-store.
The market for food delivery is also growing. In 2017, Morgan Stanley estimated that the online food delivery market from restaurants could grow to $32 billion by 2021, from $12 billion in 2017. Companies like Zume are pioneering robot-powered pizza making and delivery. In addition to using robotics to create affordable high-end gourmet pizzas in their shop, they also have a pizza delivery truck that can assemble and cook pizzas while driving. Their system combines predictive analytics using past customer data to prepare pizzas for certain neighborhoods before the orders even come in. In early November 2018, the Wall Street Journal estimated that Zume is valued at up to $2.25 billion.
While each of these developments is promising on its own, it’s also important to note that since all these technologies are in some way digitized and connected to the internet, the various food tech players can collaborate. In theory, self-driving delivery restaurants could share data on what they are selling to their automated farm equipment, facilitating coordination of future crops. There is a tremendous opportunity to improve efficiency, lower costs, and create an abundance of healthy, sustainable food for all.
On the other hand, these technologies are also deeply disruptive. According to the Food and Agricultural Organization of the United Nations, in 2010 about one billion people, or a third of the world’s workforce, worked in the farming and agricultural industries. We need to ensure these farmers are linked to new job opportunities, as well as facilitate collaboration between existing farming companies and technologists so that the industries can continue to grow and lead rather than be displaced.
Just as importantly, each of us might think about how these changes in the food industry might impact our own ways of life and culture. Thanksgiving celebrates community and sharing of food during a time of scarcity. Technology will help create an abundance of food and less need for communities to depend on one another. What are the ways that you will create community, sharing, and culture in this new world?
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Artificial intelligence in space exploration is gathering momentum. Over the coming years, new missions look likely to be turbo-charged by AI as we voyage to comets, moons, and planets and explore the possibilities of mining asteroids.
“AI is already a game-changer that has made scientific research and exploration much more efficient. We are not just talking about a doubling but about a multiple of ten,” Leopold Summerer, Head of the Advanced Concepts and Studies Office at ESA, said in an interview with Singularity Hub.
The history of AI and space exploration is older than many probably think. It has already played a significant role in research into our planet, the solar system, and the universe. As computer systems and software have developed, so have AI’s potential use cases.
The Earth Observer 1 (EO-1) satellite is a good example. Since its launch in the early 2000s, its onboard AI systems helped optimize analysis of and response to natural occurrences, like floods and volcanic eruptions. In some cases, the AI was able to tell EO-1 to start capturing images before the ground crew were even aware that the occurrence had taken place.
Other satellite and astronomy examples abound. Sky Image Cataloging and Analysis Tool (SKICAT) has assisted with the classification of objects discovered during the second Palomar Sky Survey, classifying thousands more objects caught in low resolution than a human would be able to. Similar AI systems have helped astronomers to identify 56 new possible gravitational lenses that play a crucial role in connection with research into dark matter.
AI’s ability to trawl through vast amounts of data and find correlations will become increasingly important in relation to getting the most out of the available data. ESA’s ENVISAT produces around 400 terabytes of new data every year—but will be dwarfed by the Square Kilometre Array, which will produce around the same amount of data that is currently on the internet in a day.
AI Readying For Mars
AI is also being used for trajectory and payload optimization. Both are important preliminary steps to NASA’s next rover mission to Mars, the Mars 2020 Rover, which is, slightly ironically, set to land on the red planet in early 2021.
An AI known as AEGIS is already on the red planet onboard NASA’s current rovers. The system can handle autonomous targeting of cameras and choose what to investigate. However, the next generation of AIs will be able to control vehicles, autonomously assist with study selection, and dynamically schedule and perform scientific tasks.
Throughout his career, John Leif Jørgensen from DTU Space in Denmark has designed equipment and systems that have been on board about 100 satellites—and counting. He is part of the team behind the Mars 2020 Rover’s autonomous scientific instrument PIXL, which makes extensive use of AI. Its purpose is to investigate whether there have been lifeforms like stromatolites on Mars.
“PIXL’s microscope is situated on the rover’s arm and needs to be placed 14 millimetres from what we want it to study. That happens thanks to several cameras placed on the rover. It may sound simple, but the handover process and finding out exactly where to place the arm can be likened to identifying a building from the street from a picture taken from the roof. This is something that AI is eminently suited for,” he said in an interview with Singularity Hub.
AI also helps PIXL operate autonomously throughout the night and continuously adjust as the environment changes—the temperature changes between day and night can be more than 100 degrees Celsius, meaning that the ground beneath the rover, the cameras, the robotic arm, and the rock being studied all keep changing distance.
“AI is at the core of all of this work, and helps almost double productivity,” Jørgensen said.
First Mars, Then Moons
Mars is likely far from the final destination for AIs in space. Jupiter’s moons have long fascinated scientists. Especially Europa, which could house a subsurface ocean, buried beneath an approximately 10 km thick ice crust. It is one of the most likely candidates for finding life elsewhere in the solar system.
While that mission may be some time in the future, NASA is currently planning to launch the James Webb Space Telescope into an orbit of around 1.5 million kilometers from Earth in 2020. Part of the mission will involve AI-empowered autonomous systems overseeing the full deployment of the telescope’s 705-kilo mirror.
The distances between Earth and Europa, or Earth and the James Webb telescope, means a delay in communications. That, in turn, makes it imperative for the crafts to be able to make their own decisions. Examples from the Mars Rover project show that communication between a rover and Earth can take 20 minutes because of the vast distance. A Europa mission would see much longer communication times.
Both missions, to varying degrees, illustrate one of the most significant challenges currently facing the use of AI in space exploration. There tends to be a direct correlation between how well AI systems perform and how much data they have been fed. The more, the better, as it were. But we simply don’t have very much data to feed such a system about what it’s likely to encounter on a mission to a place like Europa.
Computing power presents a second challenge. A strenuous, time-consuming approval process and the risk of radiation mean that your computer at home would likely be more powerful than anything going into space in the near future. A 200 GHz processor, 256 megabytes of ram, and 2 gigabytes of memory sounds a lot more like a Nokia 3210 (the one you could use as an ice hockey puck without it noticing) than an iPhone X—but it’s actually the ‘brain’ that will be onboard the next rover.
Private Companies Taking Off
Private companies are helping to push those limitations. CB Insights charts 57 startups in the space-space, covering areas as diverse as natural resources, consumer tourism, R&D, satellites, spacecraft design and launch, and data analytics.
David Chew works as an engineer for the Japanese satellite company Axelspace. He explained how private companies are pushing the speed of exploration and lowering costs.
“Many private space companies are taking advantage of fall-back systems and finding ways of using parts and systems that traditional companies have thought of as non-space-grade. By implementing fall-backs, and using AI, it is possible to integrate and use parts that lower costs without adding risk of failure,” he said in an interview with Singularity Hub.
Terraforming Our Future Home
Further into the future, moonshots like terraforming Mars await. Without AI, these kinds of projects to adapt other planets to Earth-like conditions would be impossible.
Autonomous crafts are already terraforming here on Earth. BioCarbon Engineering uses drones to plant up to 100,000 trees in a single day. Drones first survey and map an area, then an algorithm decides the optimal locations for the trees before a second wave of drones carry out the actual planting.
As is often the case with exponential technologies, there is a great potential for synergies and convergence. For example with AI and robotics, or quantum computing and machine learning. Why not send an AI-driven robot to Mars and use it as a telepresence for scientists on Earth? It could be argued that we are already in the early stages of doing just that by using VR and AR systems that take data from the Mars rovers and create a virtual landscape scientists can walk around in and make decisions on what the rovers should explore next.
One of the biggest benefits of AI in space exploration may not have that much to do with its actual functions. Chew believes that within as little as ten years, we could see the first mining of asteroids in the Kuiper Belt with the help of AI.
“I think one of the things that AI does to space exploration is that it opens up a whole range of new possible industries and services that have a more immediate effect on the lives of people on Earth,” he said. “It becomes a relatable industry that has a real effect on people’s daily lives. In a way, space exploration becomes part of people’s mindset, and the border between our planet and the solar system becomes less important.”
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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:
AI financial advisors and robo traders
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.
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?
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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