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#436470 Retail Robots Are on the Rise—at Every ...

The robots are coming! The robots are coming! On our sidewalks, in our skies, in our every store… Over the next decade, robots will enter the mainstream of retail.

As countless robots work behind the scenes to stock shelves, serve customers, and deliver products to our doorstep, the speed of retail will accelerate.

These changes are already underway. In this blog, we’ll elaborate on how robots are entering the retail ecosystem.

Let’s dive in.

Robot Delivery
On August 3rd, 2016, Domino’s Pizza introduced the Domino’s Robotic Unit, or “DRU” for short. The first home delivery pizza robot, the DRU looks like a cross between R2-D2 and an oversized microwave.

LIDAR and GPS sensors help it navigate, while temperature sensors keep hot food hot and cold food cold. Already, it’s been rolled out in ten countries, including New Zealand, France, and Germany, but its August 2016 debut was critical—as it was the first time we’d seen robotic home delivery.

And it won’t be the last.

A dozen or so different delivery bots are fast entering the market. Starship Technologies, for instance, a startup created by Skype founders Janus Friis and Ahti Heinla, has a general-purpose home delivery robot. Right now, the system is an array of cameras and GPS sensors, but upcoming models will include microphones, speakers, and even the ability—via AI-driven natural language processing—to communicate with customers. Since 2016, Starship has already carried out 50,000 deliveries in over 100 cities across 20 countries.

Along similar lines, Nuro—co-founded by Jiajun Zhu, one of the engineers who helped develop Google’s self-driving car—has a miniature self-driving car of its own. Half the size of a sedan, the Nuro looks like a toaster on wheels, except with a mission. This toaster has been designed to carry cargo—about 12 bags of groceries (version 2.0 will carry 20)—which it’s been doing for select Kroger stores since 2018. Domino’s also partnered with Nuro in 2019.

As these delivery bots take to our streets, others are streaking across the sky.

Back in 2016, Amazon came first, announcing Prime Air—the e-commerce giant’s promise of drone delivery in 30 minutes or less. Almost immediately, companies ranging from 7-Eleven and Walmart to Google and Alibaba jumped on the bandwagon.

While critics remain doubtful, the head of the FAA’s drone integration department recently said that drone deliveries may be “a lot closer than […] the skeptics think. [Companies are] getting ready for full-blown operations. We’re processing their applications. I would like to move as quickly as I can.”

In-Store Robots
While delivery bots start to spare us trips to the store, those who prefer shopping the old-fashioned way—i.e., in person—also have plenty of human-robot interaction in store. In fact, these robotics solutions have been around for a while.

In 2010, SoftBank introduced Pepper, a humanoid robot capable of understanding human emotion. Pepper is cute: 4 feet tall, with a white plastic body, two black eyes, a dark slash of a mouth, and a base shaped like a mermaid’s tail. Across her chest is a touch screen to aid in communication. And there’s been a lot of communication. Pepper’s cuteness is intentional, as it matches its mission: help humans enjoy life as much as possible.

Over 12,000 Peppers have been sold. She serves ice cream in Japan, greets diners at a Pizza Hut in Singapore, and dances with customers at a Palo Alto electronics store. More importantly, Pepper’s got company.

Walmart uses shelf-stocking robots for inventory control. Best Buy uses a robo-cashier, allowing select locations to operate 24-7. And Lowe’s Home Improvement employs the LoweBot—a giant iPad on wheels—to help customers find the items they need while tracking inventory along the way.

Warehouse Bots
Yet the biggest benefit robots provide might be in-warehouse logistics.

In 2012, when Amazon dished out $775 million for Kiva Systems, few could predict that just 6 years later, 45,000 Kiva robots would be deployed at all of their fulfillment centers, helping process a whopping 306 items per second during the Christmas season.

And many other retailers are following suit.

Order jeans from the Gap, and soon they’ll be sorted, packed, and shipped with the help of a Kindred robot. Remember the old arcade game where you picked up teddy bears with a giant claw? That’s Kindred, only her claw picks up T-shirts, pants, and the like, placing them in designated drop-off zones that resemble tiny mailboxes (for further sorting or shipping).

The big deal here is democratization. Kindred’s robot is cheap and easy to deploy, allowing smaller companies to compete with giants like Amazon.

Final Thoughts
For retailers interested in staying in business, there doesn’t appear to be much choice in the way of robotics.

By 2024, the US minimum wage is projected to be $15 an hour (the House of Representatives has already passed the bill, but the wage hike is meant to unfold gradually between now and 2025), and many consider that number far too low.

Yet, as human labor costs continue to climb, robots won’t just be coming, they’ll be here, there, and everywhere. It’s going to become increasingly difficult for store owners to justify human workers who call in sick, show up late, and can easily get injured. Robots work 24-7. They never take a day off, never need a bathroom break, health insurance, or parental leave.

Going forward, this spells a growing challenge of technological unemployment (a blog topic I will cover in the coming month). But in retail, robotics usher in tremendous benefits for companies and customers alike.

And while professional re-tooling initiatives and the transition of human capital from retail logistics to a booming experience economy take hold, robotic retail interaction and last-mile delivery will fundamentally transform our relationship with commerce.

This blog comes from The Future is Faster Than You Think—my upcoming book, to be released Jan 28th, 2020. To get an early copy and access up to $800 worth of pre-launch giveaways, sign up here!

Join Me
(1) A360 Executive Mastermind: If you’re an exponentially and abundance-minded entrepreneur who would like coaching directly from me, consider joining my Abundance 360 Mastermind, a highly selective community of 360 CEOs and entrepreneurs who I coach for 3 days every January in Beverly Hills, Ca. Through A360, I provide my members with context and clarity about how converging exponential technologies will transform every industry. I’m committed to running A360 for the course of an ongoing 25-year journey as a “countdown to the Singularity.”

If you’d like to learn more and consider joining our 2020 membership, apply here.

(2) Abundance-Digital Online Community: I’ve also created a Digital/Online community of bold, abundance-minded entrepreneurs called Abundance-Digital. Abundance-Digital is Singularity University’s ‘onramp’ for exponential entrepreneurs — those who want to get involved and play at a higher level. Click here to learn more.

(Both A360 and Abundance-Digital are part of Singularity University — your participation opens you to a global community.)

Image Credit: Image by imjanuary from Pixabay Continue reading

Posted in Human Robots

#436426 Video Friday: This Robot Refuses to Fall ...

Video Friday is your weekly selection of awesome robotics videos, collected by your Automaton bloggers. We’ll also be posting a weekly calendar of upcoming robotics events for the next few months; here’s what we have so far (send us your events!):

Robotic Arena – January 25, 2020 – Wrocław, Poland
DARPA SubT Urban Circuit – February 18-27, 2020 – Olympia, Wash., USA
Let us know if you have suggestions for next week, and enjoy today’s videos.

In case you somehow missed the massive Skydio 2 review we posted earlier this week, the first batches of the drone are now shipping. Each drone gets a lot of attention before it goes out the door, and here’s a behind-the-scenes clip of the process.

[ Skydio ]

Sphero RVR is one of the 15 robots on our robot gift guide this year. Here’s a new video Sphero just released showing some of the things you can do with the robot.

[ RVR ]

NimbRo-OP2 has some impressive recovery skills from the obligatory research-motivated robot abuse.

[ NimbRo ]

Teams seeking to qualify for the Virtual Urban Circuit of the Subterranean Challenge can access practice worlds to test their approaches prior to submitting solutions for the competition. This video previews three of the practice environments.

[ DARPA SubT ]

Stretchable skin-like robots that can be rolled up and put in your pocket have been developed by a University of Bristol team using a new way of embedding artificial muscles and electrical adhesion into soft materials.

[ Bristol ]

Happy Holidays from ABB!

Helping New York celebrate the festive season, twelve ABB robots are interacting with visitors to Bloomingdale’s iconic holiday celebration at their 59th Street flagship store. ABB’s robots are the main attraction in three of Bloomingdale’s twelve-holiday window displays at Lexington and Third Avenue, as ABB demonstrates the potential for its robotics and automation technology to revolutionize visual merchandising and make the retail experience more dynamic and whimsical.

[ ABB ]

We introduce pelican eel–inspired dual-morphing architectures that embody quasi-sequential behaviors of origami unfolding and skin stretching in response to fluid pressure. In the proposed system, fluid paths were enclosed and guided by a set of entirely stretchable origami units that imitate the morphing principle of the pelican eel’s stretchable and foldable frames. This geometric and elastomeric design of fluid networks, in which fluid pressure acts in the direction that the whole body deploys first, resulted in a quasi-sequential dual-morphing response. To verify the effectiveness of our design rule, we built an artificial creature mimicking a pelican eel and reproduced biomimetic dual-morphing behavior.

And here’s a real pelican eel:

[ Science Robotics ]

Delft Dynamics’ updated anti-drone system involves a tether, mid-air net gun, and even a parachute.

[ Delft Dynamics ]

Teleoperation is a great way of helping robots with complex tasks, especially if you can do it through motion capture. But what if you’re teleoperating a non-anthropomorphic robot? Columbia’s ROAM Lab is working on it.

[ Paper ] via [ ROAM Lab ]

I don’t know how I missed this video last year because it’s got a steely robot hand squeezing a cute lil’ chick.

[ MotionLib ] via [ RobotStart ]

In this video we present results of a trajectory generation method for autonomous overtaking of unexpected obstacles in a dynamic urban environment. In these settings, blind spots can arise from perception limitations. For example when overtaking unexpected objects on the vehicle’s ego lane on a two-way street. In this case, a human driver would first make sure that the opposite lane is free and that there is enough room to successfully execute the maneuver, and then it would cut into the opposite lane in order to execute the maneuver successfully. We consider the practical problem of autonomous overtaking when the coverage of the perception system is impaired due to occlusion.

[ Paper ]

New weirdness from Toio!

[ Toio ]

Palo Alto City Library won a technology innovation award! Watch to see how Senior Librarian Dan Lou is using Misty to enhance their technology programs to inspire and educate customers.

[ Misty Robotics ]

We consider the problem of reorienting a rigid object with arbitrary known shape on a table using a two-finger pinch gripper. Reorienting problem is challenging because of its non-smoothness and high dimensionality. In this work, we focus on solving reorienting using pivoting, in which we allow the grasped object to rotate between fingers. Pivoting decouples the gripper rotation from the object motion, making it possible to reorient an object under strict robot workspace constraints.

[ CMU ]

How can a mobile robot be a good pedestrian without bumping into you on the sidewalk? It must be hard for a robot to navigate in crowded environments since the flow of traffic follows implied social rules. But researchers from MIT developed an algorithm that teaches mobile robots to maneuver in crowds of people, respecting their natural behaviour.

[ Roboy Research Reviews ]

What happens when humans and robots make art together? In this awe-inspiring talk, artist Sougwen Chung shows how she “taught” her artistic style to a machine — and shares the results of their collaboration after making an unexpected discovery: robots make mistakes, too. “Part of the beauty of human and machine systems is their inherent, shared fallibility,” she says.

[ TED ]

Last month at the Cooper Union in New York City, IEEE TechEthics hosted a public panel session on the facts and misperceptions of autonomous vehicles, part of the IEEE TechEthics Conversations Series. The speakers were: Jason Borenstein from Georgia Tech; Missy Cummings from Duke University; Jack Pokrzywa from SAE; and Heather M. Roff from Johns Hopkins Applied Physics Laboratory. The panel was moderated by Mark A. Vasquez, program manager for IEEE TechEthics.

[ IEEE TechEthics ]

Two videos this week from Lex Fridman’s AI podcast: Noam Chomsky, and Whitney Cummings.

[ AI Podcast ]

This week’s CMU RI Seminar comes from Jeff Clune at the University of Wyoming, on “Improving Robot and Deep Reinforcement Learning via Quality Diversity and Open-Ended Algorithms.”

Quality Diversity (QD) algorithms are those that seek to produce a diverse set of high-performing solutions to problems. I will describe them and a number of their positive attributes. I will then summarize our Nature paper on how they, when combined with Bayesian Optimization, produce a learning algorithm that enables robots, after being damaged, to adapt in 1-2 minutes in order to continue performing their mission, yielding state-of-the-art robot damage recovery. I will next describe our QD-based Go-Explore algorithm, which dramatically improves the ability of deep reinforcement learning algorithms to solve previously unsolvable problems wherein reward signals are sparse, meaning that intelligent exploration is required. Go-Explore solves Montezuma’s Revenge, considered by many to be a major AI research challenge. Finally, I will motivate research into open-ended algorithms, which seek to innovate endlessly, and introduce our POET algorithm, which generates its own training challenges while learning to solve them, automatically creating a curricula for robots to learn an expanding set of diverse skills. POET creates and solves challenges that are unsolvable with traditional deep reinforcement learning techniques.

[ CMU RI ] Continue reading

Posted in Human Robots

#436261 AI and the future of work: The prospects ...

AI experts gathered at MIT last week, with the aim of predicting the role artificial intelligence will play in the future of work. Will it be the enemy of the human worker? Will it prove to be a savior? Or will it be just another innovation—like electricity or the internet?

As IEEE Spectrum previously reported, this conference (“AI and the Future of Work Congress”), held at MIT’s Kresge Auditorium, offered sometimes pessimistic outlooks on the job- and industry-destroying path that AI and automation seems to be taking: Self-driving technology will put truck drivers out of work; smart law clerk algorithms will put paralegals out of work; robots will (continue to) put factory and warehouse workers out of work.

Andrew McAfee, co-director of MIT’s Initiative on the Digital Economy, said even just in the past couple years, he’s noticed a shift in the public’s perception of AI. “I remember from previous versions of this conference, it felt like we had to make the case that we’re living in a period of accelerating change and that AI’s going to have a big impact,” he said. “Nobody had to make that case today.”

Elisabeth Reynolds, executive director of MIT’s Task Force on the Work of the Future, noted that following the path of least resistance is not a viable way forward. “If we do nothing, we’re in trouble,” she said. “The future will not take care of itself. We have to do something about it.”

Panelists and speakers spoke about championing productive uses of AI in the workplace, which ultimately benefit both employees and customers.

As one example, Zeynep Ton, professor at MIT Sloan School of Management, highlighted retailer Sam’s Club’s recent rollout of a program called Sam’s Garage. Previously customers shopping for tires for their car spent somewhere between 30 and 45 minutes with a Sam’s Club associate paging through manuals and looking up specs on websites.

But with an AI algorithm, they were able to cut that spec hunting time down to 2.2 minutes. “Now instead of wasting their time trying to figure out the different tires, they can field the different options and talk about which one would work best [for the customer],” she said. “This is a great example of solving a real problem, including [enhancing] the experience of the associate as well as the customer.”

“We think of it as an AI-first world that’s coming,” said Scott Prevost, VP of engineering at Adobe. Prevost said AI agents in Adobe’s software will behave something like a creative assistant or intern who will take care of more mundane tasks for you.

“We need a mindset change. That it is not just about minimizing costs or maximizing tax benefits, but really worrying about what kind of society we’re creating and what kind of environment we’re creating if we keep on just automating and [eliminating] good jobs.”
—Daron Acemoglu, MIT Institute Professor of Economics

Prevost cited an internal survey of Adobe customers that found 74 percent of respondents’ time was spent doing repetitive work—the kind that might be automated by an AI script or smart agent.

“It used to be you’d have the resources to work on three ideas [for a creative pitch or presentation],” Prevost said. “But if the AI can do a lot of the production work, then you can have 10 or 100. Which means you can actually explore some of the further out ideas. It’s also lowering the bar for everyday people to create really compelling output.”

In addition to changing the nature of work, noted a number of speakers at the event, AI is also directly transforming the workforce.

Jacob Hsu, CEO of the recruitment company Catalyte spoke about using AI as a job placement tool. The company seeks to fill myriad positions including auto mechanics, baristas, and office workers—with its sights on candidates including young people and mid-career job changers. To find them, it advertises on Craigslist, social media, and traditional media.

The prospects who sign up with Catalyte take a battery of tests. The company’s AI algorithms then match each prospect’s skills with the field best suited for their talents.

“We want to be like the Harry Potter Sorting Hat,” Hsu said.

Guillermo Miranda, IBM’s global head of corporate social responsibility, said IBM has increasingly been hiring based not on credentials but on skills. For instance, he said, as much as 50 per cent of the company’s new hires in some divisions do not have a traditional four-year college degree. “As a company, we need to be much more clear about hiring by skills,” he said. “It takes discipline. It takes conviction. It takes a little bit of enforcing with H.R. by the business leaders. But if you hire by skills, it works.”

Ardine Williams, Amazon’s VP of workforce development, said the e-commerce giant has been experimenting with developing skills of the employees at its warehouses (a.k.a. fulfillment centers) with an eye toward putting them in a position to get higher-paying work with other companies.

She described an agreement Amazon had made in its Dallas fulfillment center with aircraft maker Sikorsky, which had been experiencing a shortage of skilled workers for its nearby factory. So Amazon offered to its employees a free certification training to seek higher-paying work at Sikorsky.

“I do that because now I have an attraction mechanism—like a G.I. Bill,” Williams said. The program is also only available for employees who have worked at least a year with Amazon. So their program offers medium-term job retention, while ultimately moving workers up the wage ladder.

Radha Basu, CEO of AI data company iMerit, said her firm aggressively hires from the pool of women and under-resourced minority communities in the U.S. and India. The company specializes in turning unstructured data (e.g. video or audio feeds) into tagged and annotated data for machine learning, natural language processing, or computer vision applications.

“There is a motivation with these young people to learn these things,” she said. “It comes with no baggage.”

Alastair Fitzpayne, executive director of The Aspen Institute’s Future of Work Initiative, said the future of work ultimately means, in bottom-line terms, the future of human capital. “We have an R&D tax credit,” he said. “We’ve had it for decades. It provides credit for companies that make new investment in research and development. But we have nothing on the human capital side that’s analogous.”

So a company that’s making a big investment in worker training does it on their own dime, without any of the tax benefits that they might accrue if they, say, spent it on new equipment or new technology. Fitzpayne said a simple tweak to the R&D tax credit could make a big difference by incentivizing new investment programs in worker training. Which still means Amazon’s pre-existing worker training programs—for a company that already famously pays no taxes—would not count.

“We need a different way of developing new technologies,” said Daron Acemoglu, MIT Institute Professor of Economics. He pointed to the clean energy sector as an example. First a consensus around the problem needs to emerge. Then a broadly agreed-upon set of goals and measurements needs to be developed (e.g., that AI and automation would, for instance, create at least X new jobs for every Y jobs that it eliminates).

Then it just needs to be implemented.

“We need to build a consensus that, along the path we’re following at the moment, there are going to be increasing problems for labor,” Acemoglu said. “We need a mindset change. That it is not just about minimizing costs or maximizing tax benefits, but really worrying about what kind of society we’re creating and what kind of environment we’re creating if we keep on just automating and [eliminating] good jobs.” Continue reading

Posted in Human Robots

#436256 Alphabet Is Developing a Robot to Take ...

Robots excel at carrying out specialized tasks in controlled environments, but put them in your average office and they’d be lost. Alphabet wants to change that by developing what they call the Everyday Robot, which could learn to help us out with our daily chores.

For a long time most robots were painstakingly hand-coded to carry out their functions, but since the deep learning revolution earlier this decade there’s been a growing effort to imbue them with AI that lets them learn new tasks through experience.

That’s led to some impressive breakthroughs, like a robotic hand nimble enough to solve a Rubik’s cube and a robotic arm that can accurately toss bananas across a room.

And it turns out Alphabet’s early-stage research and development division, Alphabet X, has also secretly been using similar machine learning techniques to develop robots adaptable enough to carry out a range of tasks in cluttered and unpredictable human environments like homes and offices.

The robots they’ve built combine a wheeled base with a single arm and a head full of sensors (including LIDAR) for 3D scanning, borrowed from Alphabet’s self-driving car division, Waymo.

At the minute, though, they’re largely restricted to sorting trash for recycling, project leader Hans Peter Brondmo writes in a blog post. While that might sound mundane, identifying different kinds of trash, grasping it, and moving it to the correct bin is still a difficult thing for a robot to do consistently. Some of the robots also have to navigate around the office to sort trash at various recycling stations.

Alphabet says even its human staff were getting it wrong 20 percent of the time, but after several months of training the robots have managed to get that down to 3.5 percent.

Every day, 30 robots toil away in what’s been dubbed the “playpen” sorting trash, and then every night thousands of virtual robots continue to practice in a simulation. This experience is then used to update the robots’ control algorithms each night. All the robots also share their experiences with the others through a process called collaborative learning.

The process isn’t flawless, though. Simonite notes that while the robots exhibit some uncannily smart behaviors, like stirring piles of rubbish to make it easier to grab specific items, they also frequently miss or fumble the objects they’re trying to grasp.

Nonetheless, the project’s leaders are happy with their progress so far. And the hope is that creating robots that are able to learn from little more than experience in complex environments like an office should be a first step towards general-purpose robots that can pick up a variety of useful skills to assist humans.

Taking that next step will be the major test of the project. So far there’s been limited evidence that experience gained by robots in one task can be transferred to learning another. That’s something the group hopes to demonstrate next year.

And it seems there may be more robot news coming out of Alphabet X soon. The group has several other robotics “moonshots” in the pipeline, built on technology and talent transferred over in 2016 from the remains of a broadly unsuccessful splurge on robotics startups by former Google executive Andy Rubin.

Whether this robotics renaissance at Alphabet will finally help robots break into our homes and offices remains to be seen, but with the resources they have at hand, they just may be able to make it happen.

Image Credit: Everyday Robot, Alphabet X Continue reading

Posted in Human Robots

#436252 After AI, Fashion and Shopping Will ...

AI and broadband are eating retail for breakfast. In the first half of 2019, we’ve seen 19 retailer bankruptcies. And the retail apocalypse is only accelerating.

What’s coming next is astounding. Why drive when you can speak? Revenue from products purchased via voice commands is expected to quadruple from today’s US$2 billion to US$8 billion by 2023.

Virtual reality, augmented reality, and 3D printing are converging with artificial intelligence, drones, and 5G to transform shopping on every dimension. And as a result, shopping is becoming dematerialized, demonetized, democratized, and delocalized… a top-to-bottom transformation of the retail world.

Welcome to Part 1 of our series on the future of retail, a deep-dive into AI and its far-reaching implications.

Let’s dive in.

A Day in the Life of 2029
Welcome to April 21, 2029, a sunny day in Dallas. You’ve got a fundraising luncheon tomorrow, but nothing to wear. The last thing you want to do is spend the day at the mall.

No sweat. Your body image data is still current, as you were scanned only a week ago. Put on your VR headset and have a conversation with your AI. “It’s time to buy a dress for tomorrow’s event” is all you have to say. In a moment, you’re teleported to a virtual clothing store. Zero travel time. No freeway traffic, parking hassles, or angry hordes wielding baby strollers.

Instead, you’ve entered your own personal clothing store. Everything is in your exact size…. And I mean everything. The store has access to nearly every designer and style on the planet. Ask your AI to show you what’s hot in Shanghai, and presto—instant fashion show. Every model strutting down the runway looks exactly like you, only dressed in Shanghai’s latest.

When you’re done selecting an outfit, your AI pays the bill. And as your new clothes are being 3D printed at a warehouse—before speeding your way via drone delivery—a digital version has been added to your personal inventory for use at future virtual events.

The cost? Thanks to an era of no middlemen, less than half of what you pay in stores today. Yet this future is not all that far off…

Digital Assistants
Let’s begin with the basics: the act of turning desire into purchase.

Most of us navigate shopping malls or online marketplaces alone, hoping to stumble across the right item and fit. But if you’re lucky enough to employ a personal assistant, you have the luxury of describing what you want to someone who knows you well enough to buy that exact right thing most of the time.

For most of us who don’t, enter the digital assistant.

Right now, the four horsemen of the retail apocalypse are waging war for our wallets. Amazon’s Alexa, Google’s Now, Apple’s Siri, and Alibaba’s Tmall Genie are going head-to-head in a battle to become the platform du jour for voice-activated, AI-assisted commerce.

For baby boomers who grew up watching Captain Kirk talk to the Enterprise’s computer on Star Trek, digital assistants seem a little like science fiction. But for millennials, it’s just the next logical step in a world that is auto-magical.

And as those millennials enter their consumer prime, revenue from products purchased via voice-driven commands is projected to leap from today’s US$2 billion to US$8 billion by 2023.

We are already seeing a major change in purchasing habits. On average, consumers using Amazon Echo spent more than standard Amazon Prime customers: US$1,700 versus US$1,300.

And as far as an AI fashion advisor goes, those too are here, courtesy of both Alibaba and Amazon. During its annual Singles’ Day (November 11) shopping festival, Alibaba’s FashionAI concept store uses deep learning to make suggestions based on advice from human fashion experts and store inventory, driving a significant portion of the day’s US$25 billion in sales.

Similarly, Amazon’s shopping algorithm makes personalized clothing recommendations based on user preferences and social media behavior.

Customer Service
But AI is disrupting more than just personalized fashion and e-commerce. Its next big break will take place in the customer service arena.

According to a recent Zendesk study, good customer service increases the possibility of a purchase by 42 percent, while bad customer service translates into a 52 percent chance of losing that sale forever. This means more than half of us will stop shopping at a store due to a single disappointing customer service interaction. These are significant financial stakes. They’re also problems perfectly suited for an AI solution.

During the 2018 Google I/O conference, CEO Sundar Pichai demoed the Google Duplex, their next generation digital assistant. Pichai played the audience a series of pre-recorded phone calls made by Google Duplex. The first call made a reservation at a restaurant, the second one booked a haircut appointment, amusing the audience with a long “hmmm” mid-call.

In neither case did the person on the other end of the phone have any idea they were talking to an AI. The system’s success speaks to how seamlessly AI can blend into our retail lives and how convenient it will continue to make them. The same technology Pichai demonstrated that can make phone calls for consumers can also answer phones for retailers—a development that’s unfolding in two different ways:

(1) Customer service coaches: First, for organizations interested in keeping humans involved, there’s Beyond Verbal, a Tel Aviv-based startup that has built an AI customer service coach. Simply by analyzing customer voice intonation, the system can tell whether the person on the phone is about to blow a gasket, is genuinely excited, or anything in between.

Based on research of over 70,000 subjects in more than 30 languages, Beyond Verbal’s app can detect 400 different markers of human moods, attitudes, and personality traits. Already it’s been integrated in call centers to help human sales agents understand and react to customer emotions, making those calls more pleasant, and also more profitable.

For example, by analyzing word choice and vocal style, Beyond Verbal’s system can tell what kind of shopper the person on the line actually is. If they’re an early adopter, the AI alerts the sales agent to offer them the latest and greatest. If they’re more conservative, it suggests items more tried-and-true.

(2) Replacing customer service agents: Second, companies like New Zealand’s Soul Machines are working to replace human customer service agents altogether. Powered by IBM’s Watson, Soul Machines builds lifelike customer service avatars designed for empathy, making them one of many helping to pioneer the field of emotionally intelligent computing.

With their technology, 40 percent of all customer service interactions are now resolved with a high degree of satisfaction, no human intervention needed. And because the system is built using neural nets, it’s continuously learning from every interaction—meaning that percentage will continue to improve.

The number of these interactions continues to grow as well. Software manufacturer Autodesk now includes a Soul Machine avatar named AVA (Autodesk Virtual Assistant) in all of its new offerings. She lives in a small window on the screen, ready to soothe tempers, troubleshoot problems, and forever banish those long tech support hold times.

For Daimler Financial Services, Soul Machines built an avatar named Sarah, who helps customers with arguably three of modernity’s most annoying tasks: financing, leasing, and insuring a car.

This isn’t just about AI—it’s about AI converging with additional exponentials. Add networks and sensors to the story and it raises the scale of disruption, upping the FQ—the frictionless quotient—in our frictionless shopping adventure.

Final Thoughts
AI makes retail cheaper, faster, and more efficient, touching everything from customer service to product delivery. It also redefines the shopping experience, making it frictionless and—once we allow AI to make purchases for us—ultimately invisible.

Prepare for a future in which shopping is dematerialized, demonetized, democratized, and delocalized—otherwise known as “the end of malls.”

Of course, if you wait a few more years, you’ll be able to take an autonomous flying taxi to Westfield’s Destination 2028—so perhaps today’s converging exponentials are not so much spelling the end of malls but rather the beginning of an experience economy far smarter, more immersive, and whimsically imaginative than today’s shopping centers.

Either way, it’s a top-to-bottom transformation of the retail world.

Over the coming blog series, we will continue our discussion of the future of retail. Stay tuned to learn new implications for your business and how to future-proof your company in an age of smart, ultra-efficient, experiential retail.

Want a copy of my next book? If you’ve enjoyed this blogified snippet of The Future is Faster Than You Think, sign up here to be eligible for an early copy and access up to $800 worth of pre-launch giveaways!

Join Me
(1) A360 Executive Mastermind: If you’re an exponentially and abundance-minded entrepreneur who would like coaching directly from me, consider joining my Abundance 360 Mastermind, a highly selective community of 360 CEOs and entrepreneurs who I coach for 3 days every January in Beverly Hills, Ca. Through A360, I provide my members with context and clarity about how converging exponential technologies will transform every industry. I’m committed to running A360 for the course of an ongoing 25-year journey as a “countdown to the Singularity.”

If you’d like to learn more and consider joining our 2020 membership, apply here.

(2) Abundance-Digital Online Community: I’ve also created a Digital/Online community of bold, abundance-minded entrepreneurs called Abundance-Digital. Abundance-Digital is Singularity University’s ‘onramp’ for exponential entrepreneurs — those who want to get involved and play at a higher level. Click here to learn more.

(Both A360 and Abundance-Digital are part of Singularity University — your participation opens you to a global community.)

This article originally appeared on diamandis.com. Read the original article here.

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