Tag Archives: soul
Exponential technologies (AI, VR, 3D printing, and networks) are radically reshaping traditional retail.
E-commerce giants (Amazon, Walmart, Alibaba) are digitizing the retail industry, riding the exponential growth of computation.
Many brick-and-mortar stores have already gone bankrupt, or migrated their operations online.
Massive change is occurring in this arena.
For those “real-life stores” that survive, an evolution is taking place from a product-centric mentality to an experience-based business model by leveraging AI, VR/AR, and 3D printing.
Let’s dive in.
Last year, 3.8 billion people were connected online. By 2024, thanks to 5G, stratospheric and space-based satellites, we will grow to 8 billion people online, each with megabit to gigabit connection speeds.
These 4.2 billion new digital consumers will begin buying things online, a potential bonanza for the e-commerce world.
At the same time, entrepreneurs seeking to service these four-billion-plus new consumers can now skip the costly steps of procuring retail space and hiring sales clerks.
Today, thanks to global connectivity, contract production, and turnkey pack-and-ship logistics, an entrepreneur can go from an idea to building and scaling a multimillion-dollar business from anywhere in the world in record time.
And while e-commerce sales have been exploding (growing from $34 billion in Q1 2009 to $115 billion in Q3 2017), e-commerce only accounted for about 10 percent of total retail sales in 2017.
In 2016, global online sales totaled $1.8 trillion. Remarkably, this $1.8 trillion was spent by only 1.5 billion people — a mere 20 percent of Earth’s global population that year.
There’s plenty more room for digital disruption.
AI and the Retail Experience
For the business owner, AI will demonetize e-commerce operations with automated customer service, ultra-accurate supply chain modeling, marketing content generation, and advertising.
In the case of customer service, imagine an AI that is trained by every customer interaction, learns how to answer any consumer question perfectly, and offers feedback to product designers and company owners as a result.
Facebook’s handover protocol allows live customer service representatives and language-learning bots to work within the same Facebook Messenger conversation.
Taking it one step further, imagine an AI that is empathic to a consumer’s frustration, that can take any amount of abuse and come back with a smile every time. As one example, meet Ava. “Ava is a virtual customer service agent, to bring a whole new level of personalization and brand experience to that customer experience on a day-to-day basis,” says Greg Cross, CEO of Ava’s creator, an Austrian company called Soul Machines.
Predictive modeling and machine learning are also optimizing product ordering and the supply chain process. For example, Skubana, a platform for online sellers, leverages data analytics to provide entrepreneurs constant product performance feedback and maintain optimal warehouse stock levels.
Blockchain is set to follow suit in the retail space. ShipChain and Ambrosus plan to introduce transparency and trust into shipping and production, further reducing costs for entrepreneurs and consumers.
Meanwhile, for consumers, personal shopping assistants are shifting the psychology of the standard shopping experience.
Amazon’s Alexa marks an important user interface moment in this regard.
Alexa is in her infancy with voice search and vocal controls for smart homes. Already, Amazon’s Alexa users, on average, spent more on Amazon.com when purchasing than standard Amazon Prime customers — $1,700 versus $1,400.
As I’ve discussed in previous posts, the future combination of virtual reality shopping, coupled with a personalized, AI-enabled fashion advisor will make finding, selecting, and ordering products fast and painless for consumers.
But let’s take it one step further.
Imagine a future in which your personal AI shopper knows your desires better than you do. Possible? I think so. After all, our future AIs will follow us, watch us, and observe our interactions — including how long we glance at objects, our facial expressions, and much more.
In this future, shopping might be as easy as saying, “Buy me a new outfit for Saturday night’s dinner party,” followed by a surprise-and-delight moment in which the outfit that arrives is perfect.
In this future world of AI-enabled shopping, one of the most disruptive implications is that advertising is now dead.
In a world where an AI is buying my stuff, and I’m no longer in the decision loop, why would a big brand ever waste money on a Super Bowl advertisement?
The dematerialization, demonetization, and democratization of personalized shopping has only just begun.
The In-Store Experience: Experiential Retailing
In 2017, over 6,700 brick-and-mortar retail stores closed their doors, surpassing the former record year for store closures set in 2008 during the financial crisis. Regardless, business is still booming.
As shoppers seek the convenience of online shopping, brick-and-mortar stores are tapping into the power of the experience economy.
Rather than focusing on the practicality of the products they buy, consumers are instead seeking out the experience of going shopping.
The Internet of Things, artificial intelligence, and computation are exponentially improving the in-person consumer experience.
As AI dominates curated online shopping, AI and data analytics tools are also empowering real-life store owners to optimize staffing, marketing strategies, customer relationship management, and inventory logistics.
In the short term,retail store locations will serve as the next big user interface for production 3D printing (custom 3D printed clothes at the Ministry of Supply), virtual and augmented reality (DIY skills clinics), and the Internet of Things (checkout-less shopping).
In the long term,we’ll see how our desire for enhanced productivity and seamless consumption balances with our preference for enjoyable real-life consumer experiences — all of which will be driven by exponential technologies.
One thing is certain: the nominal shopping experience is on the verge of a major transformation.
The convergence of exponential technologies has already revamped how and where we shop, how we use our time, and how much we pay.
Twenty years ago, Amazon showed us how the web could offer each of us the long tail of available reading material, and since then, the world of e-commerce has exploded.
And yet we still haven’t experienced the cost savings coming our way from drone delivery, the Internet of Things, tokenized ecosystems, the impact of truly powerful AI, or even the other major applications for 3D printing and AR/VR.
Perhaps nothing will be more transformed than today’s $20 trillion retail sector.
Hold on, stay tuned, and get your AI-enabled cryptocurrency ready.
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For Dr. Hiroshi Ishiguro, one of the most interesting things about androids is the changing questions they pose us, their creators, as they evolve. Does it, for example, do something to the concept of being human if a human-made creation starts telling you about what kind of boys ‘she’ likes?
If you want to know the answer to the boys question, you need to ask ERICA, one of Dr. Ishiguro’s advanced androids. Beneath her plastic skull and silicone skin, wires connect to AI software systems that bring her to life. Her ability to respond goes far beyond standard inquiries. Spend a little time with her, and the feeling of a distinct personality starts to emerge. From time to time, she works as a receptionist at Dr. Ishiguro and his team’s Osaka University labs. One of her android sisters is an actor who has starred in plays and a film.
ERICA’s ‘brother’ is an android version of Dr. Ishiguro himself, which has represented its creator at various events while the biological Ishiguro can remain in his offices in Japan. Microphones and cameras capture Ishiguro’s voice and face movements, which are relayed to the android. Apart from mimicking its creator, the Geminoid™ android is also capable of lifelike blinking, fidgeting, and breathing movements.
Say hello to relaxation
As technological development continues to accelerate, so do the possibilities for androids. From a position as receptionist, ERICA may well branch out into many other professions in the coming years. Companion for the elderly, comic book storyteller (an ancient profession in Japan), pop star, conversational foreign language partner, and newscaster are some of the roles and responsibilities Dr. Ishiguro sees androids taking on in the near future.
“Androids are not uncanny anymore. Most people adapt to interacting with Erica very quickly. Actually, I think that in interacting with androids, which are still different from us, we get a better appreciation of interacting with other cultures. In both cases, we are talking with someone who is different from us and learn to overcome those differences,” he says.
A lot has been written about how robots will take our jobs. Dr. Ishiguro believes these fears are blown somewhat out of proportion.
“Robots and androids will take over many simple jobs. Initially there might be some job-related issues, but new schemes, like for example a robot tax similar to the one described by Bill Gates, should help,” he says.
“Androids will make it possible for humans to relax and keep evolving. If we compare the time we spend studying now compared to 100 years ago, it has grown a lot. I think it needs to keep growing if we are to keep expanding our scientific and technological knowledge. In the future, we might end up spending 20 percent of our lifetime on work and 80 percent of the time on education and growing our skills.”
Android asks who you are
For Dr. Ishiguro, another aspect of robotics in general, and androids in particular, is how they question what it means to be human.
“Identity is a very difficult concept for humans sometimes. For example, I think clothes are part of our identity, in a way that is similar to our faces and bodies. We don’t change those from one day to the next, and that is why I have ten matching black outfits,” he says.
This link between physical appearance and perceived identity is one of the aspects Dr. Ishiguro is exploring. Another closely linked concept is the connection between body and feeling of self. The Ishiguro avatar was once giving a presentation in Austria. Its creator recalls how he felt distinctly like he was in Austria, even capable of feeling sensation of touch on his own body when people laid their hands on the android. If he was distracted, he felt almost ‘sucked’ back into his body in Japan.
“I am constantly thinking about my life in this way, and I believe that androids are a unique mirror that helps us formulate questions about why we are here and why we have been so successful. I do not necessarily think I have found the answers to these questions, so if you have, please share,” he says with a laugh.
His work and these questions, while extremely interesting on their own, become extra poignant when considering the predicted melding of mind and machine in the near future.
The ability to be present in several locations through avatars—virtual or robotic—raises many questions of both philosophical and practical nature. Then add the hypotheticals, like why send a human out onto the hostile surface of Mars if you could send a remote-controlled android, capable of relaying everything it sees, hears and feels?
The two ways of robotics will meet
Dr. Ishiguro sees the world of AI-human interaction as currently roughly split into two. One is the chat-bot approach that companies like Amazon, Microsoft, Google, and recently Apple, employ using stationary objects like speakers. Androids like ERICA represent another approach.
“It is about more than the form factor. I think that the android approach is generally more story-based. We are integrating new conversation features based on assumptions about the situation and running different scenarios that expand the android’s vocabulary and interactions. Another aspect we are working on is giving androids desire and intention. Like with people, androids should have desires and intentions in order for you to want to interact with them over time,” Dr. Ishiguro explains.
This could be said to be part of a wider trend for Japan, where many companies are developing human-like robots that often have some Internet of Things capabilities, making them able to handle some of the same tasks as an Amazon Echo. The difference in approach could be summed up in the words ‘assistant’ (Apple, Amazon, etc.) and ‘companion’ (Japan).
Dr. Ishiguro sees this as partly linked to how Japanese as a language—and market—is somewhat limited. This has a direct impact on viability and practicality of ‘pure’ voice recognition systems. At the same time, Japanese people have had greater exposure to positive images of robots, and have a different cultural / religious view of objects having a ‘soul’. However, it may also mean Japanese companies and android scientists are both stealing a lap on their western counterparts.
“If you speak to an Amazon Echo, that is not a natural way to interact for humans. This is part of why we are making human-like robot systems. The human brain is set up to recognize and interact with humans. So, it makes sense to focus on developing the body for the AI mind, as well as the AI. I believe that the final goal for both Japanese and other companies and scientists is to create human-like interaction. Technology has to adapt to us, because we cannot adapt fast enough to it, as it develops so quickly,” he says.
Banner image courtesy of Hiroshi Ishiguro Laboratories, ATR all rights reserved.
Dr. Ishiguro’s team has collaborated with partners and developed a number of android systems:
Geminoid™ HI-2 has been developed by Hiroshi Ishiguro Laboratories and Advanced Telecommunications Research Institute International (ATR).
Geminoid™ F has been developed by Osaka University and Hiroshi Ishiguro Laboratories, Advanced Telecommunications Research Institute International (ATR).
ERICA has been developed by ERATO ISHIGURO Symbiotic Human-Robot Interaction Project Continue reading