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#434616 What Games Are Humans Still Better at ...

Artificial intelligence (AI) systems’ rapid advances are continually crossing rows off the list of things humans do better than our computer compatriots.

AI has bested us at board games like chess and Go, and set astronomically high scores in classic computer games like Ms. Pacman. More complex games form part of AI’s next frontier.

While a team of AI bots developed by OpenAI, known as the OpenAI Five, ultimately lost to a team of professional players last year, they have since been running rampant against human opponents in Dota 2. Not to be outdone, Google’s DeepMind AI recently took on—and beat—several professional players at StarCraft II.

These victories beg the questions: what games are humans still better at than AI? And for how long?

The Making Of AlphaStar
DeepMind’s results provide a good starting point in a search for answers. The version of its AI for StarCraft II, dubbed AlphaStar, learned to play the games through supervised learning and reinforcement learning.

First, AI agents were trained by analyzing and copying human players, learning basic strategies. The initial agents then played each other in a sort of virtual death match where the strongest agents stayed on. New iterations of the agents were developed and entered the competition. Over time, the agents became better and better at the game, learning new strategies and tactics along the way.

One of the advantages of AI is that it can go through this kind of process at superspeed and quickly develop better agents. DeepMind researchers estimate that the AlphaStar agents went through the equivalent of roughly 200 years of game time in about 14 days.

Cheating or One Hand Behind the Back?
The AlphaStar AI agents faced off against human professional players in a series of games streamed on YouTube and Twitch. The AIs trounced their human opponents, winning ten games on the trot, before pro player Grzegorz “MaNa” Komincz managed to salvage some pride for humanity by winning the final game. Experts commenting on AlphaStar’s performance used words like “phenomenal” and “superhuman”—which was, to a degree, where things got a bit problematic.

AlphaStar proved particularly skilled at controlling and directing units in battle, known as micromanagement. One reason was that it viewed the whole game map at once—something a human player is not able to do—which made it seemingly able to control units in different areas at the same time. DeepMind researchers said the AIs only focused on a single part of the map at any given time, but interestingly, AlphaStar’s AI agent was limited to a more restricted camera view during the match “MaNA” won.

Potentially offsetting some of this advantage was the fact that AlphaStar was also restricted in certain ways. For example, it was prevented from performing more clicks per minute than a human player would be able to.

Where AIs Struggle
Games like StarCraft II and Dota 2 throw a lot of challenges at AIs. Complex game theory/ strategies, operating with imperfect/incomplete information, undertaking multi-variable and long-term planning, real-time decision-making, navigating a large action space, and making a multitude of possible decisions at every point in time are just the tip of the iceberg. The AIs’ performance in both games was impressive, but also highlighted some of the areas where they could be said to struggle.

In Dota 2 and StarCraft II, AI bots have seemed more vulnerable in longer games, or when confronted with surprising, unfamiliar strategies. They seem to struggle with complexity over time and improvisation/adapting to quick changes. This could be tied to how AIs learn. Even within the first few hours of performing a task, humans tend to gain a sense of familiarity and skill that takes an AI much longer. We are also better at transferring skill from one area to another. In other words, experience playing Dota 2 can help us become good at StarCraft II relatively quickly. This is not the case for AI—yet.

Dwindling Superiority
While the battle between AI and humans for absolute superiority is still on in Dota 2 and StarCraft II, it looks likely that AI will soon reign supreme. Similar things are happening to other types of games.

In 2017, a team from Carnegie Mellon University pitted its Libratus AI against four professionals. After 20 days of No Limit Texas Hold’em, Libratus was up by $1.7 million. Another likely candidate is the destroyer of family harmony at Christmas: Monopoly.

Poker involves bluffing, while Monopoly involves negotiation—skills you might not think AI would be particularly suited to handle. However, an AI experiment at Facebook showed that AI bots are more than capable of undertaking such tasks. The bots proved skilled negotiators, and developed negotiating strategies like pretending interest in one object while they were interested in another altogether—bluffing.

So, what games are we still better at than AI? There is no precise answer, but the list is getting shorter at a rapid pace.

The Aim Of the Game
While AI’s mastery of games might at first glance seem an odd area to focus research on, the belief is that the way AI learn to master a game is transferrable to other areas.

For example, the Libratus poker-playing AI employed strategies that could work in financial trading or political negotiations. The same applies to AlphaStar. As Oriol Vinyals, co-leader of the AlphaStar project, told The Verge:

“First and foremost, the mission at DeepMind is to build an artificial general intelligence. […] To do so, it’s important to benchmark how our agents perform on a wide variety of tasks.”

A 2017 survey of more than 350 AI researchers predicts AI could be a better driver than humans within ten years. By the middle of the century, AI will be able to write a best-selling novel, and a few years later, it will be better than humans at surgery. By the year 2060, AI may do everything better than us.

Whether you think this is a good or a bad thing, it’s worth noting that AI has an often overlooked ability to help us see things differently. When DeepMind’s AlphaGo beat human Go champion Lee Sedol, the Go community learned from it, too. Lee himself went on a win streak after the match with AlphaGo. The same is now happening within the Dota 2 and StarCraft II communities that are studying the human vs. AI games intensely.

More than anything, AI’s recent gaming triumphs illustrate how quickly artificial intelligence is developing. In 1997, Dr. Piet Hut, an astrophysicist at the Institute for Advanced Study at Princeton and a GO enthusiast, told the New York Times that:

”It may be a hundred years before a computer beats humans at Go—maybe even longer.”

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Posted in Human Robots

#433892 The Spatial Web Will Map Our 3D ...

The boundaries between digital and physical space are disappearing at a breakneck pace. What was once static and boring is becoming dynamic and magical.

For all of human history, looking at the world through our eyes was the same experience for everyone. Beyond the bounds of an over-active imagination, what you see is the same as what I see.

But all of this is about to change. Over the next two to five years, the world around us is about to light up with layer upon layer of rich, fun, meaningful, engaging, and dynamic data. Data you can see and interact with.

This magical future ahead is called the Spatial Web and will transform every aspect of our lives, from retail and advertising, to work and education, to entertainment and social interaction.

Massive change is underway as a result of a series of converging technologies, from 5G global networks and ubiquitous artificial intelligence, to 30+ billion connected devices (known as the IoT), each of which will generate scores of real-world data every second, everywhere.

The current AI explosion will make everything smart, autonomous, and self-programming. Blockchain and cloud-enabled services will support a secure data layer, putting data back in the hands of users and allowing us to build complex rule-based infrastructure in tomorrow’s virtual worlds.

And with the rise of online-merge-offline (OMO) environments, two-dimensional screens will no longer serve as our exclusive portal to the web. Instead, virtual and augmented reality eyewear will allow us to interface with a digitally-mapped world, richly layered with visual data.

Welcome to the Spatial Web. Over the next few months, I’ll be doing a deep dive into the Spatial Web (a.k.a. Web 3.0), covering what it is, how it works, and its vast implications across industries, from real estate and healthcare to entertainment and the future of work. In this blog, I’ll discuss the what, how, and why of Web 3.0—humanity’s first major foray into our virtual-physical hybrid selves (BTW, this year at Abundance360, we’ll be doing a deep dive into the Spatial Web with the leaders of HTC, Magic Leap, and High-Fidelity).

Let’s dive in.

What is the Spatial Web?
While we humans exist in three dimensions, our web today is flat.

The web was designed for shared information, absorbed through a flat screen. But as proliferating sensors, ubiquitous AI, and interconnected networks blur the lines between our physical and online worlds, we need a spatial web to help us digitally map a three-dimensional world.

To put Web 3.0 in context, let’s take a trip down memory lane. In the late 1980s, the newly-birthed world wide web consisted of static web pages and one-way information—a monumental system of publishing and linking information unlike any unified data system before it. To connect, we had to dial up through unstable modems and struggle through insufferably slow connection speeds.

But emerging from this revolutionary (albeit non-interactive) infodump, Web 2.0 has connected the planet more in one decade than empires did in millennia.

Granting democratized participation through newly interactive sites and applications, today’s web era has turbocharged information-sharing and created ripple effects of scientific discovery, economic growth, and technological progress on an unprecedented scale.

We’ve seen the explosion of social networking sites, wikis, and online collaboration platforms. Consumers have become creators; physically isolated users have been handed a global microphone; and entrepreneurs can now access billions of potential customers.

But if Web 2.0 took the world by storm, the Spatial Web emerging today will leave it in the dust.

While there’s no clear consensus about its definition, the Spatial Web refers to a computing environment that exists in three-dimensional space—a twinning of real and virtual realities—enabled via billions of connected devices and accessed through the interfaces of virtual and augmented reality.

In this way, the Spatial Web will enable us to both build a twin of our physical reality in the virtual realm and bring the digital into our real environments.

It’s the next era of web-like technologies:

Spatial computing technologies, like augmented and virtual reality;
Physical computing technologies, like IoT and robotic sensors;
And decentralized computing: both blockchain—which enables greater security and data authentication—and edge computing, which pushes computing power to where it’s most needed, speeding everything up.

Geared with natural language search, data mining, machine learning, and AI recommendation agents, the Spatial Web is a growing expanse of services and information, navigable with the use of ever-more-sophisticated AI assistants and revolutionary new interfaces.

Where Web 1.0 consisted of static documents and read-only data, Web 2.0 introduced multimedia content, interactive web applications, and social media on two-dimensional screens. But converging technologies are quickly transcending the laptop, and will even disrupt the smartphone in the next decade.

With the rise of wearables, smart glasses, AR / VR interfaces, and the IoT, the Spatial Web will integrate seamlessly into our physical environment, overlaying every conversation, every road, every object, conference room, and classroom with intuitively-presented data and AI-aided interaction.

Think: the Oasis in Ready Player One, where anyone can create digital personas, build and invest in smart assets, do business, complete effortless peer-to-peer transactions, and collect real estate in a virtual world.

Or imagine a virtual replica or “digital twin” of your office, each conference room authenticated on the blockchain, requiring a cryptographic key for entry.

As I’ve discussed with my good friend and “VR guru” Philip Rosedale, I’m absolutely clear that in the not-too-distant future, every physical element of every building in the world is going to be fully digitized, existing as a virtual incarnation or even as N number of these. “Meet me at the top of the Empire State Building?” “Sure, which one?”

This digitization of life means that suddenly every piece of information can become spatial, every environment can be smarter by virtue of AI, and every data point about me and my assets—both virtual and physical—can be reliably stored, secured, enhanced, and monetized.

In essence, the Spatial Web lets us interface with digitally-enhanced versions of our physical environment and build out entirely fictional virtual worlds—capable of running simulations, supporting entire economies, and even birthing new political systems.

But while I’ll get into the weeds of different use cases next week, let’s first concretize.

How Does It Work?
Let’s start with the stack. In the PC days, we had a database accompanied by a program that could ingest that data and present it to us as digestible information on a screen.

Then, in the early days of the web, data migrated to servers. Information was fed through a website, with which you would interface via a browser—whether Mosaic or Mozilla.

And then came the cloud.

Resident at either the edge of the cloud or on your phone, today’s rapidly proliferating apps now allow us to interact with previously read-only data, interfacing through a smartphone. But as Siri and Alexa have brought us verbal interfaces, AI-geared phone cameras can now determine your identity, and sensors are beginning to read our gestures.

And now we’re not only looking at our screens but through them, as the convergence of AI and AR begins to digitally populate our physical worlds.

While Pokémon Go sent millions of mobile game-players on virtual treasure hunts, IKEA is just one of the many companies letting you map virtual furniture within your physical home—simulating everything from cabinets to entire kitchens. No longer the one-sided recipients, we’re beginning to see through sensors, creatively inserting digital content in our everyday environments.

Let’s take a look at how the latest incarnation might work. In this new Web 3.0 stack, my personal AI would act as an intermediary, accessing public or privately-authorized data through the blockchain on my behalf, and then feed it through an interface layer composed of everything from my VR headset, to numerous wearables, to my smart environment (IoT-connected devices or even in-home robots).

But as we attempt to build a smart world with smart infrastructure, smart supply chains and smart everything else, we need a set of basic standards with addresses for people, places, and things. Just like our web today relies on the Internet Protocol (TCP/IP) and other infrastructure, by which your computer is addressed and data packets are transferred, we need infrastructure for the Spatial Web.

And a select group of players is already stepping in to fill this void. Proposing new structural designs for Web 3.0, some are attempting to evolve today’s web model from text-based web pages in 2D to three-dimensional AR and VR web experiences located in both digitally-mapped physical worlds and newly-created virtual ones.

With a spatial programming language analogous to HTML, imagine building a linkable address for any physical or virtual space, granting it a format that then makes it interchangeable and interoperable with all other spaces.

But it doesn’t stop there.

As soon as we populate a virtual room with content, we then need to encode who sees it, who can buy it, who can move it…

And the Spatial Web’s eventual governing system (for posting content on a centralized grid) would allow us to address everything from the room you’re sitting in, to the chair on the other side of the table, to the building across the street.

Just as we have a DNS for the web and the purchasing of web domains, once we give addresses to spaces (akin to granting URLs), we then have the ability to identify and visit addressable locations, physical objects, individuals, or pieces of digital content in cyberspace.

And these not only apply to virtual worlds, but to the real world itself. As new mapping technologies emerge, we can now map rooms, objects, and large-scale environments into virtual space with increasing accuracy.

We might then dictate who gets to move your coffee mug in a virtual conference room, or when a team gets to use the room itself. Rules and permissions would be set in the grid, decentralized governance systems, or in the application layer.

Taken one step further, imagine then monetizing smart spaces and smart assets. If you have booked the virtual conference room, perhaps you’ll let me pay you 0.25 BTC to let me use it instead?

But given the Spatial Web’s enormous technological complexity, what’s allowing it to emerge now?

Why Is It Happening Now?
While countless entrepreneurs have already started harnessing blockchain technologies to build decentralized apps (or dApps), two major developments are allowing today’s birth of Web 3.0:

High-resolution wireless VR/AR headsets are finally catapulting virtual and augmented reality out of a prolonged winter.

The International Data Corporation (IDC) predicts the VR and AR headset market will reach 65.9 million units by 2022. Already in the next 18 months, 2 billion devices will be enabled with AR. And tech giants across the board have long begun investing heavy sums.

In early 2019, HTC is releasing the VIVE Focus, a wireless self-contained VR headset. At the same time, Facebook is charging ahead with its Project Santa Cruz—the Oculus division’s next-generation standalone, wireless VR headset. And Magic Leap has finally rolled out its long-awaited Magic Leap One mixed reality headset.

Mass deployment of 5G will drive 10 to 100-gigabit connection speeds in the next 6 years, matching hardware progress with the needed speed to create virtual worlds.

We’ve already seen tremendous leaps in display technology. But as connectivity speeds converge with accelerating GPUs, we’ll start to experience seamless VR and AR interfaces with ever-expanding virtual worlds.

And with such democratizing speeds, every user will be able to develop in VR.

But accompanying these two catalysts is also an important shift towards the decentralized web and a demand for user-controlled data.

Converging technologies, from immutable ledgers and blockchain to machine learning, are now enabling the more direct, decentralized use of web applications and creation of user content. With no central point of control, middlemen are removed from the equation and anyone can create an address, independently interacting with the network.

Enabled by a permission-less blockchain, any user—regardless of birthplace, gender, ethnicity, wealth, or citizenship—would thus be able to establish digital assets and transfer them seamlessly, granting us a more democratized Internet.

And with data stored on distributed nodes, this also means no single point of failure. One could have multiple backups, accessible only with digital authorization, leaving users immune to any single server failure.

Implications Abound–What’s Next…
With a newly-built stack and an interface built from numerous converging technologies, the Spatial Web will transform every facet of our everyday lives—from the way we organize and access our data, to our social and business interactions, to the way we train employees and educate our children.

We’re about to start spending more time in the virtual world than ever before. Beyond entertainment or gameplay, our livelihoods, work, and even personal decisions are already becoming mediated by a web electrified with AI and newly-emerging interfaces.

In our next blog on the Spatial Web, I’ll do a deep dive into the myriad industry implications of Web 3.0, offering tangible use cases across sectors.

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#433828 Using Big Data to Give Patients Control ...

Big data, personalized medicine, artificial intelligence. String these three buzzphrases together, and what do you have?

A system that may revolutionize the future of healthcare, by bringing sophisticated health data directly to patients for them to ponder, digest, and act upon—and potentially stop diseases in their tracks.

At Singularity University’s Exponential Medicine conference in San Diego this week, Dr. Ran Balicer, director of the Clalit Research Institute in Israel, painted a futuristic picture of how big data can merge with personalized healthcare into an app-based system in which the patient is in control.

Dr. Ran Balicer at Exponential Medicine
Picture this: instead of going to a physician with your ailments, your doctor calls you with some bad news: “Within six hours, you’re going to have a heart attack. So why don’t you come into the clinic and we can fix that.” Crisis averted.

Following the treatment, you’re at home monitoring your biomarkers, lab test results, and other health information through an app with a clean, beautiful user interface. Within the app, you can observe how various health-influencing life habits—smoking, drinking, insufficient sleep—influence your chance of future cardiovascular disease risks by toggling their levels up or down.

There’s more: you can also set a health goal within the app—for example, stop smoking—which automatically informs your physician. The app will then suggest pharmaceuticals to help you ditch the nicotine and automatically sends the prescription to your local drug store. You’ll also immediately find a list of nearby support groups that can help you reach your health goal.

With this hefty dose of AI, you’re in charge of your health—in fact, probably more so than under current healthcare systems.

Sound fantastical? In fact, this type of preemptive care is already being provided in some countries, including Israel, at a massive scale, said Balicer. By mining datasets with deep learning and other powerful AI tools, we can predict the future—and put it into the hands of patients.

The Israeli Advantage
In order to apply big data approaches to medicine, you first need a giant database.

Israel is ahead of the game in this regard. With decades of electronic health records aggregated within a central warehouse, Israel offers a wealth of health-related data on the scale of millions of people and billions of data points. The data is incredibly multiplex, covering lab tests, drugs, hospital admissions, medical procedures, and more.

One of Balicer’s early successes was an algorithm that predicts diabetes, which allowed the team to notify physicians to target their care. Clalit has also been busy digging into data that predicts winter pneumonia, osteoporosis, and a long list of other preventable diseases.

So far, Balicer’s predictive health system has only been tested on a pilot group of patients, but he is expecting to roll out the platform to all patients in the database in the next few months.

Truly Personalized Medicine
To Balicer, whatever a machine can do better, it should be welcomed to do. AI diagnosticians have already enjoyed plenty of successes—but their collaboration remains mostly with physicians, at a point in time when the patient is already ill.

A particularly powerful use of AI in medicine is to bring insights and trends directly to the patient, such that they can take control over their own health and medical care.

For example, take the problem of tailored drug dosing. Current drug doses are based on average results conducted during clinical trials—the dosing is not tailored for any specific patient’s genetic and health makeup. But what if a doctor had already seen millions of other patients similar to your case, and could generate dosing recommendations more relevant to you based on that particular group of patients?

Such personalized recommendations are beyond the ability of any single human doctor. But with the help of AI, which can quickly process massive datasets to find similarities, doctors may soon be able to prescribe individually-tailored medications.

Tailored treatment doesn’t stop there. Another issue with pharmaceuticals and treatment regimes is that they often come with side effects: potentially health-threatening reactions that may, or may not, happen to you based on your biometrics.

Back in 2017, the New England Journal of Medicine launched the SPRINT Data Analysis Challenge, which urged physicians and data analysts to identify novel clinical findings using shared clinical trial data.

Working with Dr. Noa Dagan at the Clalit Research Institute, Balicer and team developed an algorithm that recommends whether or not a patient receives a particularly intensive treatment regime for hypertension.

Rather than simply looking at one outcome—normalized blood pressure—the algorithm takes into account an individual’s specific characteristics, laying out the treatment’s predicted benefits and harms for a particular patient.

“We built thousands of models for each patient to comprehensively understand the impact of the treatment for the individual; for example, a reduced risk for stroke and cardiovascular-related deaths could be accompanied by an increase in serious renal failure,” said Balicer. “This approach allows a truly personalized balance—allowing patients and their physicians to ultimately decide if the risks of the treatment are worth the benefits.”

This is already personalized medicine at its finest. But Balicer didn’t stop there.

We are not the sum of our biologics and medical stats, he said. A truly personalized approach needs to take a patient’s needs and goals and the sacrifices and tradeoffs they’re willing to make into account, rather than having the physician make decisions for them.

Balicer’s preventative system adds this layer of complexity by giving weights to different outcomes based on patients’ input of their own health goals. Rather than blindly following big data, the system holistically integrates the patient’s opinion to make recommendations.

Balicer’s system is just one example of how AI can truly transform personalized health care. The next big challenge is to work with physicians to further optimize these systems, in a way that doctors can easily integrate them into their workflow and embrace the technology.

“Health systems will not be replaced by algorithms, rest assured,” concluded Balicer, “but health systems that don’t use algorithms will be replaced by those that do.”

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Posted in Human Robots

#433770 Will Tech Make Insurance Obsolete in the ...

We profit from it, we fear it, and we find it impossibly hard to quantify: risk.

While not the sexiest of industries, insurance can be a life-saving protector, pooling everyone’s premiums to safeguard against some of our greatest, most unexpected losses.

One of the most profitable in the world, the insurance industry exceeded $1.2 trillion in annual revenue since 2011 in the US alone.

But risk is becoming predictable. And insurance is getting disrupted fast.

By 2025, we’ll be living in a trillion-sensor economy. And as we enter a world where everything is measured all the time, we’ll start to transition from protecting against damages to preventing them in the first place.

But what happens to health insurance when Big Brother is always watching? Do rates go up when you sneak a cigarette? Do they go down when you eat your vegetables?

And what happens to auto insurance when most cars are autonomous? Or life insurance when the human lifespan doubles?

For that matter, what happens to insurance brokers when blockchain makes them irrelevant?

In this article, I’ll be discussing four key transformations:

Sensors and AI replacing your traditional broker
Blockchain
The ecosystem approach
IoT and insurance connectivity

Let’s dive in.

AI and the Trillion-Sensor Economy
As sensors continue to proliferate across every context—from smart infrastructure to millions of connected home devices to medicine—smart environments will allow us to ask any question, anytime, anywhere.

And as I often explain, once your AI has access to this treasure trove of ubiquitous sensor data in real time, it will be the quality of your questions that make or break your business.

But perhaps the most exciting insurance application of AI’s convergence with sensors is in healthcare. Tremendous advances in genetic screening are empowering us with predictive knowledge about our long-term health risks.

Leading the charge in genome sequencing, Illumina predicts that in a matter of years, decoding the full human genome will drop to $100, taking merely one hour to complete. Other companies are racing to get you sequences faster and cheaper.

Adopting an ecosystem approach, incumbent insurers and insurtech firms will soon be able to collaborate to provide risk-minimizing services in the health sector. Using sensor data and AI-driven personalized recommendations, insurance partnerships could keep consumers healthy, dramatically reducing the cost of healthcare.

Some fear that information asymmetry will allow consumers to learn of their health risks and leave insurers in the dark. However, both parties could benefit if insurers become part of the screening process.

A remarkable example of this is Gilad Meiri’s company, Neura AI. Aiming to predict health patterns, Neura has developed machine learning algorithms that analyze data from all of a user’s connected devices (sometimes from up to 54 apps!).

Neura predicts a user’s behavior and draws staggering insights about consumers’ health risks. Meiri soon began selling his personal risk assessment tool to insurers, who could then help insured customers mitigate long-term health risks.

But artificial intelligence will impact far more than just health insurance.

In October of 2016, a claim was submitted to Lemonade, the world’s first peer-to-peer insurance company. Rather than being processed by a human, every step in this claim resolution chain—from initial triage through fraud mitigation through final payment—was handled by an AI.

This transaction marks the first time an AI has processed an insurance claim. And it won’t be the last. A traditional human-processed claim takes 40 days to pay out. In Lemonade’s case, payment was transferred within three seconds.

However, Lemonade’s achievement only marks a starting point. Over the course of the next decade, nearly every facet of the insurance industry will undergo a similarly massive transformation.

New business models like peer-to-peer insurance are replacing traditional brokerage relationships, while AI and blockchain pairings significantly reduce the layers of bureaucracy required (with each layer getting a cut) for traditional insurance.

Consider Juniper, a startup that scrapes social media to build your risk assessment, subsequently asking you 12 questions via an iPhone app. Geared with advanced analytics, the platform can generate a million-dollar life insurance policy, approved in less than five minutes.

But what’s keeping all your data from unwanted hands?

Blockchain Building Trust
Current distrust in centralized financial services has led to staggering rates of underinsurance. Add to this fear of poor data and privacy protection, particularly in the wake of 2017’s widespread cybercriminal hacks.

Enabling secure storage and transfer of personal data, blockchain holds remarkable promise against the fraudulent activity that often plagues insurance firms.

The centralized model of insurance companies and other organizations is becoming redundant. Developing blockchain-based solutions for capital markets, Symbiont develops smart contracts to execute payments with little to no human involvement.

But distributed ledger technology (DLT) is enabling far more than just smart contracts.

Also targeting insurance is Tradle, leveraging blockchain for its proclaimed goal of “building a trust provisioning network.” Built around “know-your-customer” (KYC) data, Tradle aims to verify KYC data so that it can be securely forwarded to other firms without any further verification.

By requiring a certain number of parties to reuse pre-verified data, the platform makes your data much less vulnerable to hacking and allows you to keep it on a personal device. Only its verification—let’s say of a transaction or medical exam—is registered in the blockchain.

As insurance data grow increasingly decentralized, key insurance players will experience more and more pressure to adopt an ecosystem approach.

The Ecosystem Approach
Just as exponential technologies converge to provide new services, exponential businesses must combine the strengths of different sectors to expand traditional product lines.

By partnering with platform-based insurtech firms, forward-thinking insurers will no longer serve only as reactive policy-providers, but provide risk-mitigating services as well.

Especially as digital technologies demonetize security services—think autonomous vehicles—insurers must create new value chains and span more product categories.

For instance, France’s multinational AXA recently partnered with Alibaba and Ant Financial Services to sell a varied range of insurance products on Alibaba’s global e-commerce platform at the click of a button.

Building another ecosystem, Alibaba has also collaborated with Ping An Insurance and Tencent to create ZhongAn Online Property and Casualty Insurance—China’s first internet-only insurer, offering over 300 products. Now with a multibillion-dollar valuation, Zhong An has generated about half its business from selling shipping return insurance to Alibaba consumers.

But it doesn’t stop there. Insurers that participate in digital ecosystems can now sell risk-mitigating services that prevent damage before it occurs.

Imagine a corporate manufacturer whose sensors collect data on environmental factors affecting crop yield in an agricultural community. With the backing of investors and advanced risk analytics, such a manufacturer could sell crop insurance to farmers. By implementing an automated, AI-driven UI, they could automatically make payments when sensors detect weather damage to crops.

Now let’s apply this concept to your house, your car, your health insurance.

What’s stopping insurers from partnering with third-party IoT platforms to predict fires, collisions, chronic heart disease—and then empowering the consumer with preventive services?

This brings us to the powerful field of IoT.

Internet of Things and Insurance Connectivity
Leap ahead a few years. With a centralized hub like Echo, your smart home protects itself with a network of sensors. While gone, you’ve left on a gas burner and your internet-connected stove notifies you via a home app.

Better yet, home sensors monitoring heat and humidity levels run this data through an AI, which then remotely controls heating, humidity levels, and other connected devices based on historical data patterns and fire risk factors.

Several firms are already working toward this reality.

AXA plans to one day cooperate with a centralized home hub whereby remote monitoring will collect data for future analysis and detect abnormalities.

With remote monitoring and app-centralized control for users, MonAXA is aimed at customizing insurance bundles. These would reflect exact security features embedded in smart homes.

Wouldn’t you prefer not to have to rely on insurance after a burglary? With digital ecosystems, insurers may soon prevent break-ins from the start.

By gathering sensor data from third parties on neighborhood conditions, historical theft data, suspicious activity and other risk factors, an insurtech firm might automatically put your smart home on high alert, activating alarms and specialized locks in advance of an attack.

Insurance policy premiums are predicted to vastly reduce with lessened likelihood of insured losses. But insurers moving into preventive insurtech will likely turn a profit from other areas of their business. PricewaterhouseCoopers predicts that the connected home market will reach $149 billion USD by 2020.

Let’s look at car insurance.

Car insurance premiums are currently calculated according to the driver and traits of the car. But as more autonomous vehicles take to the roads, not only does liability shift to manufacturers and software engineers, but the risk of collision falls dramatically.

But let’s take this a step further.

In a future of autonomous cars, you will no longer own your car, instead subscribing to Transport as a Service (TaaS) and giving up the purchase of automotive insurance altogether.

This paradigm shift has already begun with Waymo, which automatically provides passengers with insurance every time they step into a Waymo vehicle.

And with the rise of smart traffic systems, sensor-embedded roads, and skyrocketing autonomous vehicle technology, the risks involved in transit only continue to plummet.

Final Thoughts
Insurtech firms are hitting the market fast. IoT, autonomous vehicles and genetic screening are rapidly making us invulnerable to risk. And AI-driven services are quickly pushing conventional insurers out of the market.

By 2024, roll-out of 5G on the ground, as well as OneWeb and Starlink in orbit are bringing 4.2 billion new consumers to the web—most of whom will need insurance. Yet, because of the changes afoot in the industry, none of them will buy policies from a human broker.

While today’s largest insurance companies continue to ignore this fact at their peril (and this segment of the market), thousands of entrepreneurs see it more clearly: as one of the largest opportunities ahead.

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

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

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

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

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

In this article, we will cover three key trends:

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

Let’s dive in.

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

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

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

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

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

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

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

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

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

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

And what better to accelerate digital governance than AI?

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

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

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

Smart Borders and Checkpoints

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

Policing and Security

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

Smart Courts

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

Enter the blockchain.

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

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

First, blockchain will be a boon for regulatory compliance.

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

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

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

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

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

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

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

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

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

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

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

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

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

Join Me
Abundance-Digital Online Community: I’ve created a digital community of bold, abundance-minded entrepreneurs called Abundance-Digital. Abundance-Digital is my ‘onramp’ for exponential entrepreneurs – those who want to get involved and play at a higher level. Click here to learn more.

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