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#434786 AI Performed Like a Human on a Gestalt ...

Dr. Been Kim wants to rip open the black box of deep learning.

A senior researcher at Google Brain, Kim specializes in a sort of AI psychology. Like cognitive psychologists before her, she develops various ways to probe the alien minds of artificial neural networks (ANNs), digging into their gory details to better understand the models and their responses to inputs.

The more interpretable ANNs are, the reasoning goes, the easier it is to reveal potential flaws in their reasoning. And if we understand when or why our systems choke, we’ll know when not to use them—a foundation for building responsible AI.

There are already several ways to tap into ANN reasoning, but Kim’s inspiration for unraveling the AI black box came from an entirely different field: cognitive psychology. The field aims to discover fundamental rules of how the human mind—essentially also a tantalizing black box—operates, Kim wrote with her colleagues.

In a new paper uploaded to the pre-publication server arXiv, the team described a way to essentially perform a human cognitive test on ANNs. The test probes how we automatically complete gaps in what we see, so that they form entire objects—for example, perceiving a circle from a bunch of loose dots arranged along a clock face. Psychologist dub this the “law of completion,” a highly influential idea that led to explanations of how our minds generalize data into concepts.

Because deep neural networks in machine vision loosely mimic the structure and connections of the visual cortex, the authors naturally asked: do ANNs also exhibit the law of completion? And what does that tell us about how an AI thinks?

Enter the Germans
The law of completion is part of a series of ideas from Gestalt psychology. Back in the 1920s, long before the advent of modern neuroscience, a group of German experimental psychologists asked: in this chaotic, flashy, unpredictable world, how do we piece together input in a way that leads to meaningful perceptions?

The result is a group of principles known together as the Gestalt effect: that the mind self-organizes to form a global whole. In the more famous words of Gestalt psychologist Kurt Koffka, our perception forms a whole that’s “something else than the sum of its parts.” Not greater than; just different.

Although the theory has its critics, subsequent studies in humans and animals suggest that the law of completion happens on both the cognitive and neuroanatomical level.

Take a look at the drawing below. You immediately “see” a shape that’s actually the negative: a triangle or a square (A and B). Or you further perceive a 3D ball (C), or a snake-like squiggle (D). Your mind fills in blank spots, so that the final perception is more than just the black shapes you’re explicitly given.

Image Credit: Wikimedia Commons contributors, the free media repository.
Neuroscientists now think that the effect comes from how our visual system processes information. Arranged in multiple layers and columns, lower-level neurons—those first to wrangle the data—tend to extract simpler features such as lines or angles. In Gestalt speak, they “see” the parts.

Then, layer by layer, perception becomes more abstract, until higher levels of the visual system directly interpret faces or objects—or things that don’t really exist. That is, the “whole” emerges.

The Experiment Setup
Inspired by these classical experiments, Kim and team developed a protocol to test the Gestalt effect on feed-forward ANNs: one simple, the other, dubbed the “Inception V3,” far more complex and widely used in the machine vision community.

The main idea is similar to the triangle drawings above. First, the team generated three datasets: one set shows complete, ordinary triangles. The second—the “Illusory” set, shows triangles with the edges removed but the corners intact. Thanks to the Gestalt effect, to us humans these generally still look like triangles. The third set also only shows incomplete triangle corners. But here, the corners are randomly rotated so that we can no longer imagine a line connecting them—hence, no more triangle.

To generate a dataset large enough to tease out small effects, the authors changed the background color, image rotation, and other aspects of the dataset. In all, they produced nearly 1,000 images to test their ANNs on.

“At a high level, we compare an ANN’s activation similarities between the three sets of stimuli,” the authors explained. The process is two steps: first, train the AI on complete triangles. Second, test them on the datasets. If the response is more similar between the illusory set and the complete triangle—rather than the randomly rotated set—it should suggest a sort of Gestalt closure effect in the network.

Machine Gestalt
Right off the bat, the team got their answer: yes, ANNs do seem to exhibit the law of closure.

When trained on natural images, the networks better classified the illusory set as triangles than those with randomized connection weights or networks trained on white noise.

When the team dug into the “why,” things got more interesting. The ability to complete an image correlated with the network’s ability to generalize.

Humans subconsciously do this constantly: anything with a handle made out of ceramic, regardless of shape, could easily be a mug. ANNs still struggle to grasp common features—clues that immediately tells us “hey, that’s a mug!” But when they do, it sometimes allows the networks to better generalize.

“What we observe here is that a network that is able to generalize exhibits…more of the closure effect [emphasis theirs], hinting that the closure effect reflects something beyond simply learning features,” the team wrote.

What’s more, remarkably similar to the visual cortex, “higher” levels of the ANNs showed more of the closure effect than lower layers, and—perhaps unsurprisingly—the more layers a network had, the more it exhibited the closure effect.

As the networks learned, their ability to map out objects from fragments also improved. When the team messed around with the brightness and contrast of the images, the AI still learned to see the forest from the trees.

“Our findings suggest that neural networks trained with natural images do exhibit closure,” the team concluded.

AI Psychology
That’s not to say that ANNs recapitulate the human brain. As Google’s Deep Dream, an effort to coax AIs into spilling what they’re perceiving, clearly demonstrates, machine vision sees some truly weird stuff.

In contrast, because they’re modeled after the human visual cortex, perhaps it’s not all that surprising that these networks also exhibit higher-level properties inherent to how we process information.

But to Kim and her colleagues, that’s exactly the point.

“The field of psychology has developed useful tools and insights to study human brains– tools that we may be able to borrow to analyze artificial neural networks,” they wrote.

By tweaking these tools to better analyze machine minds, the authors were able to gain insight on how similarly or differently they see the world from us. And that’s the crux: the point isn’t to say that ANNs perceive the world sort of, kind of, maybe similar to humans. It’s to tap into a wealth of cognitive psychology tools, established over decades using human minds, to probe that of ANNs.

“The work here is just one step along a much longer path,” the authors conclude.

“Understanding where humans and neural networks differ will be helpful for research on interpretability by enlightening the fundamental differences between the two interesting species.”

Image Credit: Popova Alena / Shutterstock.com Continue reading

Posted in Human Robots

#434767 7 Non-Obvious Trends Shaping the Future

When you think of trends that might be shaping the future, the first things that come to mind probably have something to do with technology: Robots taking over jobs. Artificial intelligence advancing and proliferating. 5G making everything faster, connected cities making everything easier, data making everything more targeted.

Technology is undoubtedly changing the way we live, and will continue to do so—probably at an accelerating rate—in the near and far future. But there are other trends impacting the course of our lives and societies, too. They’re less obvious, and some have nothing to do with technology.

For the past nine years, entrepreneur and author Rohit Bhargava has read hundreds of articles across all types of publications, tagged and categorized them by topic, funneled frequent topics into broader trends, analyzed those trends, narrowed them down to the most significant ones, and published a book about them as part of his ‘Non-Obvious’ series. He defines a trend as “a unique curated observation of the accelerating present.”

In an encore session at South by Southwest last week (his initial talk couldn’t fit hundreds of people who wanted to attend, so a re-do was scheduled), Bhargava shared details of his creative process, why it’s hard to think non-obviously, the most important trends of this year, and how to make sure they don’t get the best of you.

Thinking Differently
“Non-obvious thinking is seeing the world in a way other people don’t see it,” Bhargava said. “The secret is curating your ideas.” Curation collects ideas and presents them in a meaningful way; museum curators, for example, decide which works of art to include in an exhibit and how to present them.

For his own curation process, Bhargava uses what he calls the haystack method. Rather than searching for a needle in a haystack, he gathers ‘hay’ (ideas and stories) then uses them to locate and define a ‘needle’ (a trend). “If you spend enough time gathering information, you can put the needle into the middle of the haystack,” he said.

A big part of gathering information is looking for it in places you wouldn’t normally think to look. In his case, that means that on top of reading what everyone else reads—the New York Times, the Washington Post, the Economist—he also buys publications like Modern Farmer, Teen Vogue, and Ink magazine. “It’s like stepping into someone else’s world who’s not like me,” he said. “That’s impossible to do online because everything is personalized.”

Three common barriers make non-obvious thinking hard.

The first is unquestioned assumptions, which are facts or habits we think will never change. When James Dyson first invented the bagless vacuum, he wanted to sell the license to it, but no one believed people would want to spend more money up front on a vacuum then not have to buy bags. The success of Dyson’s business today shows how mistaken that assumption—that people wouldn’t adapt to a product that, at the end of the day, was far more sensible—turned out to be. “Making the wrong basic assumptions can doom you,” Bhargava said.

The second barrier to thinking differently is constant disruption. “Everything is changing as industries blend together,” Bhargava said. “The speed of change makes everyone want everything, all the time, and people expect the impossible.” We’ve come to expect every alternative to be presented to us in every moment, but in many cases this doesn’t serve us well; we’re surrounded by noise and have trouble discerning what’s valuable and authentic.

This ties into the third barrier, which Bhargava calls the believability crisis. “Constant sensationalism makes people skeptical about everything,” he said. With the advent of fake news and technology like deepfakes, we’re in a post-truth, post-fact era, and are in a constant battle to discern what’s real from what’s not.

2019 Trends
Bhargava’s efforts to see past these barriers and curate information yielded 15 trends he believes are currently shaping the future. He shared seven of them, along with thoughts on how to stay ahead of the curve.

Retro Trust
We tend to trust things we have a history with. “People like nostalgic experiences,” Bhargava said. With tech moving as fast as it is, old things are quickly getting replaced by shinier, newer, often more complex things. But not everyone’s jumping on board—and some who’ve been on board are choosing to jump off in favor of what worked for them in the past.

“We’re turning back to vinyl records and film cameras, deliberately downgrading to phones that only text and call,” Bhargava said. In a period of too much change too fast, people are craving familiarity and dependability. To capitalize on that sentiment, entrepreneurs should seek out opportunities for collaboration—how can you build a product that’s new, but feels reliable and familiar?

Muddled Masculinity
Women have increasingly taken on more leadership roles, advanced in the workplace, now own more homes than men, and have higher college graduation rates. That’s all great for us ladies—but not so great for men or, perhaps more generally, for the concept of masculinity.

“Female empowerment is causing confusion about what it means to be a man today,” Bhargava said. “Men don’t know what to do—should they say something? Would that make them an asshole? Should they keep quiet? Would that make them an asshole?”

By encouraging the non-conforming, we can help take some weight off the traditional gender roles, and their corresponding divisions and pressures.

Innovation Envy
Innovation has become an over-used word, to the point that it’s thrown onto ideas and actions that aren’t really innovative at all. “We innovate by looking at someone else and doing the same,” Bhargava said. If an employee brings a radical idea to someone in a leadership role, in many companies the leadership will say they need a case study before implementing the radical idea—but if it’s already been done, it’s not innovative. “With most innovation what ends up happening is not spectacular failure, but irrelevance,” Bhargava said.

He suggests that rather than being on the defensive, companies should play offense with innovation, and when it doesn’t work “fail as if no one’s watching” (often, no one will be).

Artificial Influence
Thanks to social media and other technologies, there are a growing number of fabricated things that, despite not being real, influence how we think. “15 percent of all Twitter accounts may be fake, and there are 60 million fake Facebook accounts,” Bhargava said. There are virtual influencers and even virtual performers.

“Don’t hide the artificial ingredients,” Bhargava advised. “Some people are going to pretend it’s all real. We have to be ethical.” The creators of fabrications meant to influence the way people think, or the products they buy, or the decisions they make, should make it crystal-clear that there aren’t living, breathing people behind the avatars.

Enterprise Empathy
Another reaction to the fast pace of change these days—and the fast pace of life, for that matter—is that empathy is regaining value and even becoming a driver of innovation. Companies are searching for ways to give people a sense of reassurance. The Tesco grocery brand in the UK has a “relaxed lane” for those who don’t want to feel rushed as they check out. Starbucks opened a “signing store” in Washington DC, and most of its regular customers have learned some sign language.

“Use empathy as a principle to help yourself stand out,” Bhargava said. Besides being a good business strategy, “made with empathy” will ideally promote, well, more empathy, a quality there’s often a shortage of.

Robot Renaissance
From automating factory jobs to flipping burgers to cleaning our floors, robots have firmly taken their place in our day-to-day lives—and they’re not going away anytime soon. “There are more situations with robots than ever before,” Bhargava said. “They’re exploring underwater. They’re concierges at hotels.”

The robot revolution feels intimidating. But Bhargava suggests embracing robots with more curiosity than concern. While they may replace some tasks we don’t want replaced, they’ll also be hugely helpful in multiple contexts, from elderly care to dangerous manual tasks.

Back-storytelling
Similar to retro trust and enterprise empathy, organizations have started to tell their brand’s story to gain customer loyalty. “Stories give us meaning, and meaning is what we need in order to be able to put the pieces together,” Bhargava said. “Stories give us a way of understanding the world.”

Finding the story behind your business, brand, or even yourself, and sharing it openly, can help you connect with people, be they customers, coworkers, or friends.

Tech’s Ripple Effects
While it may not overtly sound like it, most of the trends Bhargava identified for 2019 are tied to technology, and are in fact a sort of backlash against it. Tech has made us question who to trust, how to innovate, what’s real and what’s fake, how to make the best decisions, and even what it is that makes us human.

By being aware of these trends, sharing them, and having conversations about them, we’ll help shape the way tech continues to be built, and thus the way it impacts us down the road.

Image Credit: Rohit Bhargava by Brian Smale Continue reading

Posted in Human Robots

#434753 Top Takeaways From The Economist ...

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Image Credit: Rudy Balasko / Shutterstock.com Continue reading

Posted in Human Robots

#434701 3 Practical Solutions to Offset ...

In recent years, the media has sounded the alarm about mass job loss to automation and robotics—some studies predict that up to 50 percent of current jobs or tasks could be automated in coming decades. While this topic has received significant attention, much of the press focuses on potential problems without proposing realistic solutions or considering new opportunities.

The economic impacts of AI, robotics, and automation are complex topics that require a more comprehensive perspective to understand. Is universal basic income, for example, the answer? Many believe so, and there are a number of experiments in progress. But it’s only one strategy, and without a sustainable funding source, universal basic income may not be practical.

As automation continues to accelerate, we’ll need a multi-pronged approach to ease the transition. In short, we need to update broad socioeconomic strategies for a new century of rapid progress. How, then, do we plan practical solutions to support these new strategies?

Take history as a rough guide to the future. Looking back, technology revolutions have three themes in common.

First, past revolutions each produced profound benefits to productivity, increasing human welfare. Second, technological innovation and technology diffusion have accelerated over time, each iteration placing more strain on the human ability to adapt. And third, machines have gradually replaced more elements of human work, with human societies adapting by moving into new forms of work—from agriculture to manufacturing to service, for example.

Public and private solutions, therefore, need to be developed to address each of these three components of change. Let’s explore some practical solutions for each in turn.

Figure 1. Technology’s structural impacts in the 21st century. Refer to Appendix I for quantitative charts and technological examples corresponding to the numbers (1-22) in each slice.
Solution 1: Capture New Opportunities Through Aggressive Investment
The rapid emergence of new technology promises a bounty of opportunity for the twenty-first century’s economic winners. This technological arms race is shaping up to be a global affair, and the winners will be determined in part by who is able to build the future economy fastest and most effectively. Both the private and public sectors have a role to play in stimulating growth.

At the country level, several nations have created competitive strategies to promote research and development investments as automation technologies become more mature.

Germany and China have two of the most notable growth strategies. Germany’s Industrie 4.0 plan targets a 50 percent increase in manufacturing productivity via digital initiatives, while halving the resources required. China’s Made in China 2025 national strategy sets ambitious targets and provides subsidies for domestic innovation and production. It also includes building new concept cities, investing in robotics capabilities, and subsidizing high-tech acquisitions abroad to become the leader in certain high-tech industries. For China, specifically, tech innovation is driven partially by a fear that technology will disrupt social structures and government control.

Such opportunities are not limited to existing economic powers. Estonia’s progress after the breakup of the Soviet Union is a good case study in transitioning to a digital economy. The nation rapidly implemented capitalistic reforms and transformed itself into a technology-centric economy in preparation for a massive tech disruption. Internet access was declared a right in 2000, and the country’s classrooms were outfitted for a digital economy, with coding as a core educational requirement starting at kindergarten. Internet broadband speeds in Estonia are among the fastest in the world. Accordingly, the World Bank now ranks Estonia as a high-income country.

Solution 2: Address Increased Rate of Change With More Nimble Education Systems
Education and training are currently not set for the speed of change in the modern economy. Schools are still based on a one-time education model, with school providing the foundation for a single lifelong career. With content becoming obsolete faster and rapidly escalating costs, this system may be unsustainable in the future. To help workers more smoothly transition from one job into another, for example, we need to make education a more nimble, lifelong endeavor.

Primary and university education may still have a role in training foundational thinking and general education, but it will be necessary to curtail rising price of tuition and increase accessibility. Massive open online courses (MooCs) and open-enrollment platforms are early demonstrations of what the future of general education may look like: cheap, effective, and flexible.

Georgia Tech’s online Engineering Master’s program (a fraction of the cost of residential tuition) is an early example in making university education more broadly available. Similarly, nanodegrees or microcredentials provided by online education platforms such as Udacity and Coursera can be used for mid-career adjustments at low cost. AI itself may be deployed to supplement the learning process, with applications such as AI-enhanced tutorials or personalized content recommendations backed by machine learning. Recent developments in neuroscience research could optimize this experience by perfectly tailoring content and delivery to the learner’s brain to maximize retention.

Finally, companies looking for more customized skills may take a larger role in education, providing on-the-job training for specific capabilities. One potential model involves partnering with community colleges to create apprenticeship-style learning, where students work part-time in parallel with their education. Siemens has pioneered such a model in four states and is developing a playbook for other companies to do the same.

Solution 3: Enhance Social Safety Nets to Smooth Automation Impacts
If predicted job losses to automation come to fruition, modernizing existing social safety nets will increasingly become a priority. While the issue of safety nets can become quickly politicized, it is worth noting that each prior technological revolution has come with corresponding changes to the social contract (see below).

The evolving social contract (U.S. examples)
– 1842 | Right to strike
– 1924 | Abolish child labor
– 1935 | Right to unionize
– 1938 | 40-hour work week
– 1962, 1974 | Trade adjustment assistance
– 1964 | Pay discrimination prohibited
– 1970 | Health and safety laws
– 21st century | AI and automation adjustment assistance?

Figure 2. Labor laws have historically adjusted as technology and society progressed

Solutions like universal basic income (no-strings-attached monthly payout to all citizens) are appealing in concept, but somewhat difficult to implement as a first measure in countries such as the US or Japan that already have high debt. Additionally, universal basic income may create dis-incentives to stay in the labor force. A similar cautionary tale in program design was the Trade Adjustment Assistance (TAA), which was designed to protect industries and workers from import competition shocks from globalization, but is viewed as a missed opportunity due to insufficient coverage.

A near-term solution could come in the form of graduated wage insurance (compensation for those forced to take a lower-paying job), including health insurance subsidies to individuals directly impacted by automation, with incentives to return to the workforce quickly. Another topic to tackle is geographic mismatch between workers and jobs, which can be addressed by mobility assistance. Lastly, a training stipend can be issued to individuals as means to upskill.

Policymakers can intervene to reverse recent historical trends that have shifted incomes from labor to capital owners. The balance could be shifted back to labor by placing higher taxes on capital—an example is the recently proposed “robot tax” where the taxation would be on the work rather than the individual executing it. That is, if a self-driving car performs the task that formerly was done by a human, the rideshare company will still pay the tax as if a human was driving.

Other solutions may involve distribution of work. Some countries, such as France and Sweden, have experimented with redistributing working hours. The idea is to cap weekly hours, with the goal of having more people employed and work more evenly spread. So far these programs have had mixed results, with lower unemployment but high costs to taxpayers, but are potential models that can continue to be tested.

We cannot stop growth, nor should we. With the roles in response to this evolution shifting, so should the social contract between the stakeholders. Government will continue to play a critical role as a stabilizing “thumb” in the invisible hand of capitalism, regulating and cushioning against extreme volatility, particularly in labor markets.

However, we already see business leaders taking on some of the role traditionally played by government—thinking about measures to remedy risks of climate change or economic proposals to combat unemployment—in part because of greater agility in adapting to change. Cross-disciplinary collaboration and creative solutions from all parties will be critical in crafting the future economy.

Note: The full paper this article is based on is available here.

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#434623 The Great Myth of the AI Skills Gap

One of the most contentious debates in technology is around the question of automation and jobs. At issue is whether advances in automation, specifically with regards to artificial intelligence and robotics, will spell trouble for today’s workers. This debate is played out in the media daily, and passions run deep on both sides of the issue. In the past, however, automation has created jobs and increased real wages.

A widespread concern with the current scenario is that the workers most likely to be displaced by technology lack the skills needed to do the new jobs that same technology will create.

Let’s look at this concern in detail. Those who fear automation will hurt workers start by pointing out that there is a wide range of jobs, from low-pay, low-skill to high-pay, high-skill ones. This can be represented as follows:

They then point out that technology primarily creates high-paying jobs, like geneticists, as shown in the diagram below.

Meanwhile, technology destroys low-wage, low-skill jobs like those in fast food restaurants, as shown below:

Then, those who are worried about this dynamic often pose the question, “Do you really think a fast-food worker is going to become a geneticist?”

They worry that we are about to face a huge amount of systemic permanent unemployment, as the unskilled displaced workers are ill-equipped to do the jobs of tomorrow.

It is important to note that both sides of the debate are in agreement at this point. Unquestionably, technology destroys low-skilled, low-paying jobs while creating high-skilled, high-paying ones.

So, is that the end of the story? As a society are we destined to bifurcate into two groups, those who have training and earn high salaries in the new jobs, and those with less training who see their jobs vanishing to machines? Is this latter group forever locked out of economic plenty because they lack training?

No.

The question, “Can a fast food worker become a geneticist?” is where the error comes in. Fast food workers don’t become geneticists. What happens is that a college biology professor becomes a geneticist. Then a high-school biology teacher gets the college job. Then the substitute teacher gets hired on full-time to fill the high school teaching job. All the way down.

The question is not whether those in the lowest-skilled jobs can do the high-skilled work. Instead the question is, “Can everyone do a job just a little harder than the job they have today?” If so, and I believe very deeply that this is the case, then every time technology creates a new job “at the top,” everyone gets a promotion.

This isn’t just an academic theory—it’s 200 years of economic history in the west. For 200 years, with the exception of the Great Depression, unemployment in the US has been between 2 percent and 13 percent. Always. Europe’s range is a bit wider, but not much.

If I took 200 years of unemployment rates and graphed them, and asked you to find where the assembly line took over manufacturing, or where steam power rapidly replaced animal power, or the lightning-fast adoption of electricity by industry, you wouldn’t be able to find those spots. They aren’t even blips in the unemployment record.

You don’t even have to look back as far as the assembly line to see this happening. It has happened non-stop for 200 years. Every fifty years, we lose about half of all jobs, and this has been pretty steady since 1800.

How is it that for 200 years we have lost half of all jobs every half century, but never has this process caused unemployment? Not only has it not caused unemployment, but during that time, we have had full employment against the backdrop of rising wages.

How can wages rise while half of all jobs are constantly being destroyed? Simple. Because new technology always increases worker productivity. It creates new jobs, like web designer and programmer, while destroying low-wage backbreaking work. When this happens, everyone along the way gets a better job.

Our current situation isn’t any different than the past. The nature of technology has always been to create high-skilled jobs and increase worker productivity. This is good news for everyone.

People often ask me what their children should study to make sure they have a job in the future. I usually say it doesn’t really matter. If I knew everything I know now and went back to the mid 1980s, what could I have taken in high school to make me better prepared for today? There is only one class, and it wasn’t computer science. It was typing. Who would have guessed?

The great skill is to be able to learn new things, and luckily, we all have that. In fact, that is our singular ability as a species. What I do in my day-to-day job consists largely of skills I have learned as the years have passed. In my experience, if you ask people at all job levels,“Would you like a little more challenging job to make a little more money?” almost everyone says yes.

That’s all it has taken for us to collectively get here today, and that’s all we need going forward.

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