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#434701 3 Practical Solutions to Offset ...

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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#434673 The World’s Most Valuable AI ...

It recognizes our faces. It knows the videos we might like. And it can even, perhaps, recommend the best course of action to take to maximize our personal health.

Artificial intelligence and its subset of disciplines—such as machine learning, natural language processing, and computer vision—are seemingly becoming integrated into our daily lives whether we like it or not. What was once sci-fi is now ubiquitous research and development in company and university labs around the world.

Similarly, the startups working on many of these AI technologies have seen their proverbial stock rise. More than 30 of these companies are now valued at over a billion dollars, according to data research firm CB Insights, which itself employs algorithms to provide insights into the tech business world.

Private companies with a billion-dollar valuation were so uncommon not that long ago that they were dubbed unicorns. Now there are 325 of these once-rare creatures, with a combined valuation north of a trillion dollars, as CB Insights maintains a running count of this exclusive Unicorn Club.

The subset of AI startups accounts for about 10 percent of the total membership, growing rapidly in just 4 years from 0 to 32. Last year, an unprecedented 17 AI startups broke the billion-dollar barrier, with 2018 also a record year for venture capital into private US AI companies at $9.3 billion, CB Insights reported.

What exactly is all this money funding?

AI Keeps an Eye Out for You
Let’s start with the bad news first.

Facial recognition is probably one of the most ubiquitous applications of AI today. It’s actually a decades-old technology often credited to a man named Woodrow Bledsoe, who used an instrument called a RAND tablet that could semi-autonomously match faces from a database. That was in the 1960s.

Today, most of us are familiar with facial recognition as a way to unlock our smartphones. But the technology has gained notoriety as a surveillance tool of law enforcement, particularly in China.

It’s no secret that the facial recognition algorithms developed by several of the AI unicorns from China—SenseTime, CloudWalk, and Face++ (also known as Megvii)—are used to monitor the country’s 1.3 billion citizens. Police there are even equipped with AI-powered eyeglasses for such purposes.

A fourth billion-dollar Chinese startup, Yitu Technologies, also produces a platform for facial recognition in the security realm, and develops AI systems in healthcare on top of that. For example, its CARE.AITM Intelligent 4D Imaging System for Chest CT can reputedly identify in real time a variety of lesions for the possible early detection of cancer.

The AI Doctor Is In
As Peter Diamandis recently noted, AI is rapidly augmenting healthcare and longevity. He mentioned another AI unicorn from China in this regard—iCarbonX, which plans to use machines to develop personalized health plans for every individual.

A couple of AI unicorns on the hardware side of healthcare are OrCam Technologies and Butterfly. The former, an Israeli company, has developed a wearable device for the vision impaired called MyEye that attaches to one’s eyeglasses. The device can identify people and products, as well as read text, conveying the information through discrete audio.

Butterfly Network, out of Connecticut, has completely upended the healthcare market with a handheld ultrasound machine that works with a smartphone.

“Orcam and Butterfly are amazing examples of how machine learning can be integrated into solutions that provide a step-function improvement over state of the art in ultra-competitive markets,” noted Andrew Byrnes, investment director at Comet Labs, a venture capital firm focused on AI and robotics, in an email exchange with Singularity Hub.

AI in the Driver’s Seat
Comet Labs’ portfolio includes two AI unicorns, Megvii and Pony.ai.

The latter is one of three billion-dollar startups developing the AI technology behind self-driving cars, with the other two being Momenta.ai and Zoox.

Founded in 2016 near San Francisco (with another headquarters in China), Pony.ai debuted its latest self-driving system, called PonyAlpha, last year. The platform uses multiple sensors (LiDAR, cameras, and radar) to navigate its environment, but its “sensor fusion technology” makes things simple by choosing the most reliable sensor data for any given driving scenario.

Zoox is another San Francisco area startup founded a couple of years earlier. In late 2018, it got the green light from the state of California to be the first autonomous vehicle company to transport a passenger as part of a pilot program. Meanwhile, China-based Momenta.ai is testing level four autonomy for its self-driving system. Autonomous driving levels are ranked zero to five, with level five being equal to a human behind the wheel.

The hype around autonomous driving is currently in overdrive, and Byrnes thinks regulatory roadblocks will keep most self-driving cars in idle for the foreseeable future. The exception, he said, is China, which is adopting a “systems” approach to autonomy for passenger transport.

“If [autonomous mobility] solves bigger problems like traffic that can elicit government backing, then that has the potential to go big fast,” he said. “This is why we believe Pony.ai will be a winner in the space.”

AI in the Back Office
An AI-powered technology that perhaps only fans of the cult classic Office Space might appreciate has suddenly taken the business world by storm—robotic process automation (RPA).

RPA companies take the mundane back office work, such as filling out invoices or processing insurance claims, and turn it over to bots. The intelligent part comes into play because these bots can tackle unstructured data, such as text in an email or even video and pictures, in order to accomplish an increasing variety of tasks.

Both Automation Anywhere and UiPath are older companies, founded in 2003 and 2005, respectively. However, since just 2017, they have raised nearly a combined $1 billion in disclosed capital.

Cybersecurity Embraces AI
Cybersecurity is another industry where AI is driving investment into startups. Sporting imposing names like CrowdStrike, Darktrace, and Tanium, these cybersecurity companies employ different machine-learning techniques to protect computers and other IT assets beyond the latest software update or virus scan.

Darktrace, for instance, takes its inspiration from the human immune system. Its algorithms can purportedly “learn” the unique pattern of each device and user on a network, detecting emerging problems before things spin out of control.

All three companies are used by major corporations and governments around the world. CrowdStrike itself made headlines a few years ago when it linked the hacking of the Democratic National Committee email servers to the Russian government.

Looking Forward
I could go on, and introduce you to the world’s most valuable startup, a Chinese company called Bytedance that is valued at $75 billion for news curation and an app to create 15-second viral videos. But that’s probably not where VC firms like Comet Labs are generally putting their money.

Byrnes sees real value in startups that are taking “data-driven approaches to problems specific to unique industries.” Take the example of Chicago-based unicorn Uptake Technologies, which analyzes incoming data from machines, from wind turbines to tractors, to predict problems before they occur with the machinery. A not-yet unicorn called PingThings in the Comet Labs portfolio does similar predictive analytics for the energy utilities sector.

“One question we like asking is, ‘What does the state of the art look like in your industry in three to five years?’” Byrnes said. “We ask that a lot, then we go out and find the technology-focused teams building those things.”

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#433928 The Surprising Parallels Between ...

The human mind can be a confusing and overwhelming place. Despite incredible leaps in human progress, many of us still struggle to make our peace with our thoughts. The roots of this are complex and multifaceted. To find explanations for the global mental health epidemic, one can tap into neuroscience, psychology, evolutionary biology, or simply observe the meaningless systems that dominate our modern-day world.

This is not only the context of our reality but also that of the critically-acclaimed Netflix series, Maniac. Psychological dark comedy meets science fiction, Maniac is a retro, futuristic, and hallucinatory trip that is filled with hidden symbols. Directed by Cary Joji Fukunaga, the series tells the story of two strangers who decide to participate in the final stage of a “groundbreaking” pharmaceutical trial—one that combines novel pharmaceuticals with artificial intelligence, and promises to make their emotional pain go away.

Naturally, things don’t go according to plan.

From exams used for testing defense mechanisms to techniques such as cognitive behavioral therapy, the narrative infuses genuine psychological science. As perplexing as the series may be to some viewers, many of the tools depicted actually have a strong grounding in current technological advancements.

Catalysts for Alleviating Suffering
In the therapy of Maniac, participants undergo a three-day trial wherein they ingest three pills and appear to connect their consciousness to a superintelligent AI. Each participant is hurled into the traumatic experiences imprinted in their subconscious and forced to cope with them in a series of hallucinatory and dream-like experiences.

Perhaps the most recognizable parallel that can be drawn is with the latest advancements in psychedelic therapy. Psychedelics are a class of drugs that alter the experience of consciousness, and often cause radical changes in perception and cognitive processes.

Through a process known as transient hypofrontality, the executive “over-thinking” parts of our brains get a rest, and deeper areas become more active. This experience, combined with the breakdown of the ego, is often correlated with feelings of timelessness, peacefulness, presence, unity, and above all, transcendence.

Despite being not addictive and extremely difficult to overdose on, regulators looked down on the use of psychedelics for decades and many continue to dismiss them as “party drugs.” But in the last few years, all of this began to change.

Earlier this summer, the FDA granted breakthrough therapy designation to MDMA for the treatment of PTSD, after several phases of successful trails. Similar research has discovered that Psilocybin (also known as magic mushrooms) combined with therapy is far more effective than traditional forms of treatment to treat depression and anxiety. Today, there is a growing and overwhelming body of research that proves that not only are psychedelics such as LSD, MDMA, or Psylicybin effective catalysts to alleviate suffering and enhance the human condition, but they are potentially the most effective tools out there.

It’s important to realize that these substances are not solutions on their own, but rather catalysts for more effective therapy. They can be groundbreaking, but only in the right context and setting.

Brain-Machine Interfaces
In Maniac, the medication-assisted therapy is guided by what appears to be a super-intelligent form of artificial intelligence called the GRTA, nicknamed Gertie. Gertie, who is a “guide” in machine form, accesses the minds of the participants through what appears to be a futuristic brain-scanning technology and curates customized hallucinatory experiences with the goal of accelerating the healing process.

Such a powerful form of brain-scanning technology is not unheard of. Current levels of scanning technology are already allowing us to decipher dreams and connect three human brains, and are only growing exponentially. Though they are nowhere as advanced as Gertie (we have a long way to go before we get to this kind of general AI), we are also seeing early signs of AI therapy bots, chatbots that listen, think, and communicate with users like a therapist would.

The parallels between current advancements in mental health therapy and the methods in Maniac can be startling, and are a testament to how science fiction and the arts can be used to explore the existential implications of technology.

Not Necessarily a Dystopia
While there are many ingenious similarities between the technology in Maniac and the state of mental health therapy, it’s important to recognize the stark differences. Like many other blockbuster science fiction productions, Maniac tells a fundamentally dystopian tale.

The series tells the story of the 73rd iteration of a controversial drug trial, one that has experienced many failures and even led to various participants being braindead. The scientists appear to be evil, secretive, and driven by their own superficial agendas and deep unresolved emotional issues.

In contrast, clinicians and researchers are not only required to file an “investigational new drug application” with the FDA (and get approval) but also update the agency with safety and progress reports throughout the trial.

Furthermore, many of today’s researchers are driven by a strong desire to contribute to the well-being and progress of our species. Even more, the results of decades of research by organizations like MAPS have been exceptionally promising and aligned with positive values. While Maniac is entertaining and thought-provoking, viewers must not forget the positive potential of such advancements in mental health therapy.

Science, technology, and psychology aside, Maniac is a deep commentary on the human condition and the often disorienting states that pain us all. Within any human lifetime, suffering is inevitable. It is the disproportionate, debilitating, and unjust levels of suffering that we ought to tackle as a society. Ultimately, Maniac explores whether advancements in science and technology can help us live not a life devoid of suffering, but one where it is balanced with fulfillment.

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#433278 Outdated Evolution: Updating Our ...

What happens when evolution shapes an animal for tribes of 150 primitive individuals living in a chaotic jungle, and then suddenly that animal finds itself living with millions of others in an engineered metropolis, their pockets all bulging with devices of godlike power?

The result, it seems, is a modern era of tension where archaic forms of governance struggle to keep up with the technological advances of their citizenry, where governmental policies act like constraining bottlenecks rather than spearheads of progress.

Simply put, our governments have failed to adapt to disruptive technologies. And if we are to regain our stability moving forward into a future of even greater disruption, it’s imperative that we understand the issues that got us into this situation and what kind of solutions we can engineer to overcome our governmental weaknesses.

Hierarchy vs. Technological Decentralization
Many of the greatest issues our governments face today come from humanity’s biologically-hardwired desire for centralized hierarchies. This innate proclivity towards building and navigating systems of status and rank were evolutionary gifts handed down to us by our ape ancestors, where each member of a community had a mental map of their social hierarchy. Their nervous systems behaved differently depending on their rank in this hierarchy, influencing their interactions in a way that ensured only the most competent ape would rise to the top to gain access to the best food and mates.

As humanity emerged and discovered the power of language, we continued this practice by ensuring that those at the top of the hierarchies, those with the greatest education and access to information, were the dominant decision-makers for our communities.

However, this kind of structured chain of power is only necessary if we’re operating in conditions of scarcity. But resources, including information, are no longer scarce.

It’s estimated that more than two-thirds of adults in the world now own a smartphone, giving the average citizen the same access to the world’s information as the leaders of our governments. And with global poverty falling from 35.5 percent to 10.9 percent over the last 25 years, our younger generations are growing up seeing automation and abundance as a likely default, where innovations like solar energy, lab-grown meat, and 3D printing are expected to become commonplace.

It’s awareness of this paradigm shift that has empowered the recent rise of decentralization. As information and access to resources become ubiquitous, there is noticeably less need for our inefficient and bureaucratic hierarchies.

For example, if blockchain can prove its feasibility for large-scale systems, it can be used to update and upgrade numerous applications to a decentralized model, including currency and voting. Such innovations would lower the risk of failing banks collapsing the economy like they did in 2008, as well as prevent corrupt politicians from using gerrymandering and long queues at polling stations to deter voter participation.

Of course, technology isn’t a magic wand that should be implemented carelessly. Facebook’s “move fast and break things” approach might have very possibly broken American democracy in 2016, as social media played on some of the worst tendencies humanity can operate on during an election: fear and hostility.

But if decentralized technology, like blockchain’s public ledgers, can continue to spread a sense of security and transparency throughout society, perhaps we can begin to quiet that paranoia and hyper-vigilance our brains evolved to cope with living as apes in dangerous jungles. By decentralizing our power structures, we take away the channels our outdated biological behaviors might use to enact social dominance and manipulation.

The peace of mind this creates helps to reestablish trust in our communities and in our governments. And with trust in the government increased, it’s likely we’ll see our next issue corrected.

From Business and Law to Science and Technology
A study found that 59 percent of US presidents, 68 percent of vice presidents, and 78 percent of secretaries of state were lawyers by education and occupation. That’s more than one out of every two people in the most powerful positions in the American government restricted to a field dedicated to convincing other people (judges) their perspective is true, even if they lack evidence.

And so the scientific method became less important than semantics to our leaders.

Similarly, of the 535 individuals in the American congress, only 24 hold a PhD, only 2 of which are in a STEM field. And so far, it’s not getting better: Trump is the first president since WWII not to name a science advisor.

But if we can use technologies like blockchain to increase transparency, efficiency, and trust in the government, then the upcoming generations who understand decentralization, abundance, and exponential technologies might feel inspired enough to run for government positions. This helps solve that common problem where the smartest and most altruistic people tend to avoid government positions because they don’t want to play the semantic and deceitful game of politics.

By changing this narrative, our governments can begin to fill with techno-progressive individuals who actually understand the technologies that are rapidly reshaping our reality. And this influence of expertise is going to be crucial as our governments are forced to restructure and create new policies to accommodate the incoming disruption.

Clearing Regulations to Begin Safe Experimentation
As exponential technologies become more ubiquitous, we’re likely going to see young kids and garage tinkerers creating powerful AIs and altering genetics thanks to tools like CRISPR and free virtual reality tutorials.

This easy accessibility to such powerful technology means unexpected and rapid progress can occur almost overnight, quickly overwhelming our government’s regulatory systems.

Uber and Airbnb are two of the best examples of our government’s inability to keep up with such technology, both companies achieving market dominance before regulators were even able to consider how to handle them. And when a government has decided against them, they often still continue to operate because people simply choose to keep using the apps.

Luckily, this kind of disruption hasn’t yet posed a major existential threat. But this will change when we see companies begin developing cyborg body parts, brain-computer interfaces, nanobot health injectors, and at-home genetic engineering kits.

For this reason, it’s crucial that we have experts who understand how to update our regulations to be as flexible as is necessary to ensure we don’t create black market conditions like we’ve done with drugs. It’s better to have safe and monitored experimentation, rather than forcing individuals into seedy communities using unsafe products.

Survival of the Most Adaptable
If we hope to be an animal that survives our changing environment, we have to adapt. We cannot cling to the behaviors and systems formed thousands of years ago. We must instead acknowledge that we now exist in an ecosystem of disruptive technology, and we must evolve and update our governments if they’re going to be capable of navigating these transformative impacts.

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#431859 Digitized to Democratized: These Are the ...

“The Six Ds are a chain reaction of technological progression, a road map of rapid development that always leads to enormous upheaval and opportunity.”
–Peter Diamandis and Steven Kotler, Bold
We live in incredible times. News travels the globe in an instant. Music, movies, games, communication, and knowledge are ever-available on always-connected devices. From biotechnology to artificial intelligence, powerful technologies that were once only available to huge organizations and governments are becoming more accessible and affordable thanks to digitization.
The potential for entrepreneurs to disrupt industries and corporate behemoths to unexpectedly go extinct has never been greater.
One hundred or fifty or even twenty years ago, disruption meant coming up with a product or service people needed but didn’t have yet, then finding a way to produce it with higher quality and lower costs than your competitors. This entailed hiring hundreds or thousands of employees, having a large physical space to put them in, and waiting years or even decades for hard work to pay off and products to come to fruition.

“Technology is disrupting traditional industrial processes, and they’re never going back.”

But thanks to digital technologies developing at exponential rates of change, the landscape of 21st-century business has taken on a dramatically different look and feel.
The structure of organizations is changing. Instead of thousands of employees and large physical plants, modern start-ups are small organizations focused on information technologies. They dematerialize what was once physical and create new products and revenue streams in months, sometimes weeks.
It no longer takes a huge corporation to have a huge impact.
Technology is disrupting traditional industrial processes, and they’re never going back. This disruption is filled with opportunity for forward-thinking entrepreneurs.
The secret to positively impacting the lives of millions of people is understanding and internalizing the growth cycle of digital technologies. This growth cycle takes place in six key steps, which Peter Diamandis calls the Six Ds of Exponentials: digitization, deception, disruption, demonetization, dematerialization, and democratization.
According to Diamandis, cofounder and chairman of Singularity University and founder and executive chairman of XPRIZE, when something is digitized it begins to behave like an information technology.

Newly digitized products develop at an exponential pace instead of a linear one, fooling onlookers at first before going on to disrupt companies and whole industries. Before you know it, something that was once expensive and physical is an app that costs a buck.
Newspapers and CDs are two obvious recent examples. The entertainment and media industries are still dealing with the aftermath of digitization as they attempt to transform and update old practices tailored to a bygone era. But it won’t end with digital media. As more of the economy is digitized—from medicine to manufacturing—industries will hop on an exponential curve and be similarly disrupted.
Diamandis’s 6 Ds are critical to understanding and planning for this disruption.
The 6 Ds of Exponential Organizations are Digitized, Deceptive, Disruptive, Demonetized, Dematerialized, and Democratized.

Diamandis uses the contrasting fates of Kodak and Instagram to illustrate the power of the six Ds and exponential thinking.
Kodak invented the digital camera in 1975, but didn’t invest heavily in the new technology, instead sticking with what had always worked: traditional cameras and film. In 1996, Kodak had a $28 billion market capitalization with 95,000 employees.
But the company didn’t pay enough attention to how digitization of their core business was changing it; people were no longer taking pictures in the same way and for the same reasons as before.
After a downward spiral, Kodak went bankrupt in 2012. That same year, Facebook acquired Instagram, a digital photo sharing app, which at the time was a startup with 13 employees. The acquisition’s price tag? $1 billion. And Instagram had been founded only 18 months earlier.
The most ironic piece of this story is that Kodak invented the digital camera; they took the first step toward overhauling the photography industry and ushering it into the modern age, but they were unwilling to disrupt their existing business by taking a risk in what was then uncharted territory. So others did it instead.
The same can happen with any technology that’s just getting off the ground. It’s easy to stop pursuing it in the early part of the exponential curve, when development appears to be moving slowly. But failing to follow through only gives someone else the chance to do it instead.
The Six Ds are a road map showing what can happen when an exponential technology is born. Not every phase is easy, but the results give even small teams the power to change the world in a faster and more impactful way than traditional business ever could.
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