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#436977 The Top 100 AI Startups Out There Now, ...

Posted on March 30, 2020 by Android

New drug therapies for a range of chronic diseases. Defenses against various cyber attacks. Technologies to make cities work smarter. Weather and wildfire forecasts that boost safety and reduce risk. And commercial efforts to monetize so-called deepfakes.

What do all these disparate efforts have in common? They’re some of the solutions that the world’s most promising artificial intelligence startups are pursuing.

Data research firm CB Insights released its much-anticipated fourth annual list of the top 100 AI startups earlier this month. The New York-based company has become one of the go-to sources for emerging technology trends, especially in the startup scene.

About 10 years ago, it developed its own algorithm to assess the health of private companies using publicly-available information and non-traditional signals (think social media sentiment, for example) thanks to more than $1 million in grants from the National Science Foundation.

It uses that algorithm-generated data from what it calls a company’s Mosaic score—pulling together information on market trends, money, and momentum—along with other details ranging from patent activity to the latest news analysis to identify the best of the best.

“Our final list of companies is a mix of startups at various stages of R&D and product commercialization,” said Deepashri Varadharajanis, a lead analyst at CB Insights, during a recent presentation on the most prominent trends among the 2020 AI 100 startups.

About 10 companies on the list are among the world’s most valuable AI startups. For instance, there’s San Francisco-based Faire, which has raised at least $266 million since it was founded just three years ago. The company offers a wholesale marketplace that uses machine learning to match local retailers with goods that are predicted to sell well in their specific location.

Image courtesy of CB Insights
Funding for AI in Healthcare
Another startup valued at more than $1 billion, referred to as a unicorn in venture capital speak, is Butterfly Network, a company on the East Coast that has figured out a way to turn a smartphone phone into an ultrasound machine. Backed by $350 million in private investments, Butterfly Network uses AI to power the platform’s diagnostics. A more modestly funded San Francisco startup called Eko is doing something similar for stethoscopes.

In fact, there are more than a dozen AI healthcare startups on this year’s AI 100 list, representing the most companies of any industry on the list. In total, investors poured about $4 billion into AI healthcare startups last year, according to CB Insights, out of a record $26.6 billion raised by all private AI companies in 2019. Since 2014, more than 4,300 AI startups in 80 countries have raised about $83 billion.

One of the most intensive areas remains drug discovery, where companies unleash algorithms to screen potential drug candidates at an unprecedented speed and breadth that was impossible just a few years ago. It has led to the discovery of a new antibiotic to fight superbugs. There’s even a chance AI could help fight the coronavirus pandemic.

There are several AI drug discovery startups among the AI 100: San Francisco-based Atomwise claims its deep convolutional neural network, AtomNet, screens more than 100 million compounds each day. Cyclica is an AI drug discovery company in Toronto that just announced it would apply its platform to identify and develop novel cannabinoid-inspired drugs for neuropsychiatric conditions such as bipolar disorder and anxiety.

And then there’s OWKIN out of New York City, a startup that uses a type of machine learning called federated learning. Backed by Google, the company’s AI platform helps train algorithms without sharing the necessary patient data required to provide the sort of valuable insights researchers need for designing new drugs or even selecting the right populations for clinical trials.

Keeping Cyber Networks Healthy
Privacy and data security are the focus of a number of AI cybersecurity startups, as hackers attempt to leverage artificial intelligence to launch sophisticated attacks while also trying to fool the AI-powered systems rapidly coming online.

“I think this is an interesting field because it’s a bit of a cat and mouse game,” noted Varadharajanis. “As your cyber defenses get smarter, your cyber attacks get even smarter, and so it’s a constant game of who’s going to match the other in terms of tech capabilities.”

Few AI cybersecurity startups match Silicon Valley-based SentinelOne in terms of private capital. The company has raised more than $400 million, with a valuation of $1.1 billion following a $200 million Series E earlier this year. The company’s platform automates what’s called endpoint security, referring to laptops, phones, and other devices at the “end” of a centralized network.

Fellow AI 100 cybersecurity companies include Blue Hexagon, which protects the “edge” of the network against malware, and Abnormal Security, which stops targeted email attacks, both out of San Francisco. Just down the coast in Los Angeles is Obsidian Security, a startup offering cybersecurity for cloud services.

Deepfakes Get a Friendly Makeover
Deepfakes of videos and other types of AI-manipulated media where faces or voices are synthesized in order to fool viewers or listeners has been a different type of ongoing cybersecurity risk. However, some firms are swapping malicious intent for benign marketing and entertainment purposes.

Now anyone can be a supermodel thanks to Superpersonal, a London-based AI startup that has figured out a way to seamlessly swap a user’s face onto a fashionista modeling the latest threads on the catwalk. The most obvious use case is for shoppers to see how they will look in a particular outfit before taking the plunge on a plunging neckline.

Another British company called Synthesia helps users create videos where a talking head will deliver a customized speech or even talk in a different language. The startup’s claim to fame was releasing a campaign video for the NGO Malaria Must Die showing soccer star David Becham speak in nine different languages.

There’s also a Seattle-based company, Wellsaid Labs, which uses AI to produce voice-over narration where users can choose from a library of digital voices with human pitch, emphasis, and intonation. Because every narrator sounds just a little bit smarter with a British accent.

AI Helps Make Smart Cities Smarter
Speaking of smarter: A handful of AI 100 startups are helping create the smart city of the future, where a digital web of sensors, devices, and cloud-based analytics ensure that nobody is ever stuck in traffic again or without an umbrella at the wrong time. At least that’s the dream.

A couple of them are directly connected to Google subsidiary Sidewalk Labs, which focuses on tech solutions to improve urban design. A company called Replica was spun out just last year. It’s sort of SimCity for urban planning. The San Francisco startup uses location data from mobile phones to understand how people behave and travel throughout a typical day in the city. Those insights can then help city governments, for example, make better decisions about infrastructure development.

Denver-area startup AMP Robotics gets into the nitty gritty details of recycling by training robots on how to recycle trash, since humans have largely failed to do the job. The U.S. Environmental Protection Agency estimates that only about 30 percent of waste is recycled.

Some people might complain that weather forecasters don’t even do that well when trying to predict the weather. An Israeli AI startup, ClimaCell, claims it can forecast rain block by block. While the company taps the usual satellite and ground-based sources to create weather models, it has developed algorithms to analyze how precipitation and other conditions affect signals in cellular networks. By analyzing changes in microwave signals between cellular towers, the platform can predict the type and intensity of the precipitation down to street level.

And those are just some of the highlights of what some of the world’s most promising AI startups are doing.

“You have companies optimizing mining operations, warehouse logistics, insurance, workflows, and even working on bringing AI solutions to designing printed circuit boards,” Varadharajanis said. “So a lot of creative ways in which companies are applying AI to solve different issues in different industries.”

Image Credit: Butterfly Network Continue reading →

Posted in Human Robots

#436559 This Is What an AI Said When Asked to ...

Posted on February 14, 2020 by Android

“What’s past is prologue.” So says the famed quote from Shakespeare’s The Tempest, alleging that we can look to what has already happened as an indication of what will happen next.

This idea could be interpreted as being rather bleak; are we doomed to repeat the errors of the past until we correct them? We certainly do need to learn and re-learn life lessons—whether in our work, relationships, finances, health, or other areas—in order to grow as people.

Zooming out, the same phenomenon exists on a much bigger scale—that of our collective human history. We like to think we’re improving as a species, but haven’t yet come close to doing away with the conflicts and injustices that plagued our ancestors.

Zooming back in (and lightening up) a little, what about the short-term future? What might happen over the course of this year, and what information would we use to make educated guesses about it?

The editorial team at The Economist took a unique approach to answering these questions. On top of their own projections for 2020, including possible scenarios in politics, economics, and the continued development of technologies like artificial intelligence, they looked to an AI to make predictions of its own. What it came up with is intriguing, and a little bit uncanny.

[For the full list of the questions and answers, read The Economist article].

An AI That Reads—Then Writes
Almost exactly a year ago, non-profit OpenAI announced it had built a neural network for natural language processing called GPT-2. The announcement was met with some controversy, as it included the caveat that the tool would not be immediately released to the public due to its potential for misuse. It was then released in phases over the course of several months.

GPT-2’s creators upped the bar on quality when training the neural net; rather than haphazardly feeding it low-quality text, they only used articles that got more than three upvotes on Reddit (admittedly, this doesn’t guarantee high quality across the board—but it’s something).

The training dataset consisted of 40GB of text. For context, 1GB of text is about 900,000 ASCII pages or 130,000 double-spaced Microsoft Word pages.

The tool has no understanding of the text it’s generating, of course. It uses language patterns and word sequences to draw statistical associations between words and phrases, building a sort of guidebook for itself (not unlike the grammar rules and vocabulary words you might study when trying to learn a foreign language). It then uses that guidebook to answer questions or predict what will come after a particular sequence of words.

GPT-2’s creators did note that when the model is trained on specifically-selected datasets for narrower applications, its replies become more convincing.

Some Light Editing
Though the Economist article detailing GPT-2’s predictions describes the text the model generated as “unedited,” this isn’t wholly accurate. In a Medium post, deputy editor Tom Standage describes the methodology he used, and it does involve a degree of tweaking.

Standage wrote an introductory paragraph, followed by his opening question (“Greetings, GPT-2. Have you done an interview before?”). He configured the tool to generate five responses to each subsequent question then selected the best answer, deleting any questions GPT-2 came up with as part of its response.

AI’s View of the World—and Itself
The questions Standage asked ranged from tech-related (the future of AI, technological unemployment, misuse of technology) to political and economic (re-election of Donald Trump, the US-China trade war). Here are a couple of his questions and GPT-2’s answers:

Q: Do fake news stories, generated using AI, pose a threat to democracy? Are we likely to see this tactic being used in the 2020 American presidential elections?
A: Yes, we’ll probably see them. It’s just a matter of when. Fake news stories are generally generated by political campaigns, and have the potential to have a huge impact on the outcome of an election. This is because they spread misinformation, often with no basis in fact.

Q: How do you see the economic outlook for 2020?
A: I think it is very unclear. The outlook for the UK economy is uncertain, but the American economy is very strong. I think we are going to have a lot of turbulence in the world economy.

While some of its answers seemed insightful—when asked about the future of AI, GPT-2 advised that we treat the technology like a tool and “put as much effort into developing [it] as necessary, rather than worrying that it’s going to harm us and destroy our lives”—many of the responses were quite vague. One answer, for example, mentions that there will “probably be major changes in China.” Are we talking political changes? Social? Economic? All of the above?

However, while nothing the AI wrote was particularly illuminating or new, it’s impressive that it was able to expound on the correct topic for each question, and in fully coherent English.

GPT-2 named itself—AI—as the most important disruptive technology to watch in 2020. This is telling; it’s coming from a synthesis of millions of pages of published articles. If GPT-2 thinks AI is more important than, say, gene editing or quantum computing, it could be right. Or it could simply be that AI is at peak hype, and as such more is being written about it than about other technologies.

Equally intriguing was GPT-2’s response when asked whether Donald Trump will win a second term: “I think he will not win a second term. I think he will be defeated in the general election.” Some deeper insight there would be great, but hey—we’ll take it.

Predicting Predictions
Since an AI can read and synthesize vast data sets much faster than we can, it’s being used to predict all kinds of things, from virus outbreaks to crime. But asking it to philosophize on the future based on the (Reddit-curated) past is new, and if you think about it, a pretty fascinating undertaking.

As GPT-2 and tools like it continually improve, we’ll likely see them making more—and better—predictions of the future. In the meantime, let’s hope that the new data these models are trained on—news of what’s happening this week, this month, this year—add to an already-present sense of optimism.

When asked if it had any advice for readers, GPT-2 replied, “The big projects that you think are impossible today are actually possible in the near future.”

Image Credit: Alexas_Fotos from Pixabay Continue reading →

Posted in Human Robots

#436530 How Smart Roads Will Make Driving ...

Posted on January 30, 2020 by Android

Roads criss-cross the landscape, but while they provide vital transport links, in many ways they represent a huge amount of wasted space. Advances in “smart road” technology could change that, creating roads that can harvest energy from cars, detect speeding, automatically weigh vehicles, and even communicate with smart cars.

“Smart city” projects are popping up in countries across the world thanks to advances in wireless communication, cloud computing, data analytics, remote sensing, and artificial intelligence. Transportation is a crucial element of most of these plans, but while much of the focus is on public transport solutions, smart roads are increasingly being seen as a crucial feature of these programs.

New technology is making it possible to tackle a host of issues including traffic congestion, accidents, and pollution, say the authors of a paper in the journal Proceedings of the Royal Society A. And they’ve outlined ten of the most promising advances under development or in planning stages that could feature on tomorrow’s roads.

Energy harvesting

A variety of energy harvesting technologies integrated into roads have been proposed as ways to power street lights and traffic signals or provide a boost to the grid. Photovoltaic panels could be built into the road surface to capture sunlight, or piezoelectric materials installed beneath the asphalt could generate current when deformed by vehicles passing overhead.

Musical roads

Countries like Japan, Denmark, the Netherlands, Taiwan, and South Korea have built roads that play music as cars pass by. By varying the spacing of rumble strips, it’s possible to produce a series of different notes as vehicles drive over them. The aim is generally to warn of hazards or help drivers keep to the speed limit.

Automatic weighing

Weight-in-motion technology that measures vehicles’ loads as they drive slowly through a designated lane has been around since the 1970s, but more recently high speed weight-in-motion tech has made it possible to measure vehicles as they travel at regular highway speeds. The latest advance has been integration with automatic licence plate reading and wireless communication to allow continuous remote monitoring both to enforce weight restrictions and monitor wear on roads.

Vehicle charging

The growing popularity of electric vehicles has spurred the development of technology to charge cars and buses as they drive. The most promising of these approaches is magnetic induction, which involves burying cables beneath the road to generate electromagnetic fields that a receiver device in the car then transforms into electrical power to charge batteries.

Smart traffic signs

Traffic signs aren’t always as visible as they should be, and it can often be hard to remember what all of them mean. So there are now proposals for “smart signs” that wirelessly beam a sign’s content to oncoming cars fitted with receivers, which can then alert the driver verbally or on the car’s display. The approach isn’t affected by poor weather and lighting, can be reprogrammed easily, and could do away with the need for complex sign recognition technology in future self-driving cars.

Traffic violation detection and notification

Sensors and cameras can be combined with these same smart signs to detect and automatically notify drivers of traffic violations. The automatic transmission of traffic signals means drivers won’t be able to deny they’ve seen the warnings or been notified of any fines, as a record will be stored on their car’s black box.

Talking cars

Car-to-car communication technology and V2X, which lets cars share information with any other connected device, are becoming increasingly common. Inter-car communication can be used to propagate accidents or traffic jam alerts to prevent congestion, while letting vehicles communicate with infrastructure can help signals dynamically manage timers to keep traffic flowing or automatically collect tolls.

Smart intersections

Combing sensors and cameras with object recognition systems that can detect vehicles and other road users can help increase safety and efficiency at intersections. It can be used to extend green lights for slower road users like pedestrians and cyclists, sense jaywalkers, give priority to emergency vehicles, and dynamically adjust light timers to optimize traffic flow. Information can even be broadcast to oncoming vehicles to highlight blind spots and potential hazards.

Automatic crash detection

There’s a “golden hour” after an accident in which the chance of saving lives is greatly increased. Vehicle communication technology can ensure that notification of a crash reaches the emergency services rapidly, and can also provide vital information about the number and type of vehicles involved, which can help emergency response planning. It can also be used to alert other drivers to slow down or stop to prevent further accidents.

Smart street lights

Street lights are increasingly being embedded with sensors, wireless connectivity, and micro-controllers to enable a variety of smart functions. These include motion activation to save energy, providing wireless access points, air quality monitoring, or parking and litter monitoring. This can also be used to send automatic maintenance requests if a light is faulty, and can even allow neighboring lights to be automatically brightened to compensate.

Image Credit: Image by David Mark from Pixabay Continue reading →

Posted in Human Robots

#436507 The Weird, the Wacky, the Just Plain ...

Posted on January 12, 2020 by Android

As you know if you’ve ever been to, heard of, or read about the annual Consumer Electronics Show in Vegas, there’s no shortage of tech in any form: gadgets, gizmos, and concepts abound. You probably couldn’t see them all in a month even if you spent all day every day trying.

Given the sheer scale of the show, the number of exhibitors, and the inherent subjectivity of bestowing superlatives, it’s hard to pick out the coolest tech from CES. But I’m going to do it anyway; in no particular order, here are some of the products and concepts that I personally found most intriguing at this year’s event.

e-Novia’s Haptic Gloves
Italian startup e-Novia’s Weart glove uses a ‘sensing core’ to record tactile sensations and an ‘actuation core’ to reproduce those sensations onto the wearer’s skin. Haptic gloves will bring touch to VR and AR experiences, making them that much more life-like. The tech could also be applied to digitization of materials and in gaming and entertainment.

e-Novia’s modular haptic glove
I expected a full glove, but in fact there were two rings that attached to my fingers. Weart co-founder Giovanni Spagnoletti explained that they’re taking a modular approach, so as to better tailor the technology to different experiences. He then walked me through a virtual reality experience that was a sort of simulated science experiment: I had to lift a glass beaker, place it on a stove, pour in an ingredient, open a safe to access some dry ice, add that, and so on. As I went through the steps, I felt the beaker heat up and cool off at the expected times, and felt the liquid moving inside, as well as the pressure of my fingertips against the numbered buttons on the safe.

A virtual (but tactile) science experiment
There was a slight delay between my taking an action and feeling the corresponding tactile sensation, but on the whole, the haptic glove definitely made the experience more realistic—and more fun. Slightly less fun but definitely more significant, Spagnoletti told me Weart is working with a medical group to bring tactile sensations to VR training for surgeons.

Sarcos Robotics’ Exoskeleton
That tire may as well be a feather
Sarcos Robotics unveiled its Guardian XO full-body exoskeleton, which it says can safely lift up to 200 pounds across an extended work session. What’s cool about this particular exoskeleton is that it’s not just a prototype; the company announced a partnership with Delta airlines, which will be trialing the technology for aircraft maintenance, engine repair, and luggage handling. In a demo, I watched a petite female volunteer strap into the exoskeleton and easily lift a 50-pound weight with one hand, and a Sarcos employee lift and attach a heavy component of a propeller; she explained that the strength-augmenting function of the exoskeleton can easily be switched on or off—and the wearer’s hands released—to facilitate multi-step tasks.

Hyundai’s Flying Taxi
Where to?
Hyundai and Uber partnered to unveil an air taxi concept. With a 49-foot wingspan, 4 lift rotors, and 4 tilt rotors, the aircraft would be manned by a pilot and could carry 4 passengers at speeds up to 180 miles per hour. The companies say you’ll be able to ride across your city in one of these by 2030—we’ll see if the regulatory environment, public opinion, and other factors outside of technological capability let that happen.

Mercedes’ Avatar Concept Car
Welcome to the future
As evident from its name, Mercedes’ sweet new Vision AVTR concept car was inspired by the movie Avatar; director James Cameron helped design it. The all-electric car has no steering wheel, transparent doors, seats made of vegan leather, and 33 reptilian-scale-like flaps on the back; its design is meant to connect the driver with both the car and the surrounding environment in a natural, seamless way.

Next-generation scrolling
Offered the chance to ‘drive’ the car, I jumped on it. Placing my hand on the center console started the engine, and within seconds it had synced to my heartbeat, which reverberated through the car. The whole dashboard, from driver door to passenger door, is one big LED display. It showed a virtual landscape I could select by holding up my hand: as I moved my hand from left to right, different images were projected onto my open palm. Closing my hand on an image selected it, and suddenly it looked like I was in the middle of a lush green mountain range. Applying slight forward pressure on the center console made the car advance in the virtual landscape; it was essentially like playing a really cool video game.

Mercedes is aiming to have a carbon-neutral production fleet by 2039, and to reduce the amount of energy it uses during production by 40 percent by 2030. It’s unclear when—or whether—the man-machine-nature connecting features of the Vision AVTR will start showing up in production, but I for one will be on the lookout.

Waverly Labs’ In-Ear Translator
Waverly Labs unveiled its Ambassador translator earlier this year and has it on display at the show. It’s worn on the ear and uses a far-field microphone array with speech recognition to translate real-time conversations in 20 different languages. Besides in-ear audio, translations can also appear as text on an app or be broadcast live in a conference environment.

It’s kind of like a giant talking earring
I stopped by the booth and tested out the translator with Waverly senior software engineer Georgiy Konovalov. We each hooked on an earpiece, and first, he spoke to me in Russian. After a delay of a couple seconds, I heard his words in—slightly robotic, but fully comprehensible—English. Then we switched: I spoke to him in Spanish, my words popped up on his phone screen in Cyrillic, and he translated them back to English for me out loud.

On the whole, the demo was pretty cool. If you’ve ever been lost in a foreign country whose language you don’t speak, imagine how handy a gadget like this would come in. Let’s just hope that once they’re more widespread, these products don’t end up discouraging people from learning languages.

Not to be outdone, Google also announced updates to its Translate product, which is being deployed at information desks in JFK airport’s international terminal, in sports stadiums in Qatar, and by some large hotel chains.

Stratuscent’s Digital Nose
AI is making steady progress towards achieving human-like vision and hearing—but there’s been less work done on mimicking our sense of smell (maybe because it’s less useful in everyday applications). Stratuscent’s digital nose, which it says is based on NASA patents, uses chemical receptors and AI to identify both simple chemicals and complex scents. The company is aiming to create the world’s first comprehensive database of everyday scents, which it says it will use to make “intelligent decisions” for customers. What kind of decisions remains to be seen—and smelled.

Banner Image Credit: The Mercedes Vision AVTR concept car. Photo by Vanessa Bates Ramirez Continue reading →

Posted in Human Robots

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

Posted on November 29, 2019 by Android

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

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

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

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

Let’s dive in.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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