Tag Archives: 2019

#436482 50+ Reasons Our Favorite Emerging ...

Posted on December 31, 2019 by Android

For most of history, technology was about atoms, the manipulation of physical stuff to extend humankind’s reach. But in the last five or six decades, atoms have partnered with bits, the elemental “particles” of the digital world as we know it today. As computing has advanced at the accelerating pace described by Moore’s Law, technological progress has become increasingly digitized.

SpaceX lands and reuses rockets and self-driving cars do away with drivers thanks to automation, sensors, and software. Businesses find and hire talent from anywhere in the world, and for better and worse, a notable fraction of the world learns and socializes online. From the sequencing of DNA to artificial intelligence and from 3D printing to robotics, more and more new technologies are moving at a digital pace and quickly emerging to reshape the world around us.

In 2019, stories charting the advances of some of these digital technologies consistently made headlines. Below is, what is at best, an incomplete list of some of the big stories that caught our eye this year. With so much happening, it’s likely we’ve missed some notable headlines and advances—as well as some of your personal favorites. In either instance, share your thoughts and candidates for the biggest stories and breakthroughs on Facebook and Twitter.

With that said, let’s dive straight into the year.

Artificial Intelligence
No technology garnered as much attention as AI in 2019. With good reason. Intelligent computer systems are transitioning from research labs to everyday life. Healthcare, weather forecasting, business process automation, traffic congestion—you name it, and machine learning algorithms are likely beginning to work on it. Yet, AI has also been hyped up and overmarketed, and the latest round of AI technology, deep learning, is likely only one piece of the AI puzzle.

This year, Open AI’s game-playing algorithms beat some of the world’s best Dota 2 players, DeepMind notched impressive wins in Starcraft, and Carnegie Mellon University’s Libratus “crushed” pros at six-player Texas Hold‘em.
Speaking of games, AI’s mastery of the incredibly complex game of Go prompted a former world champion to quit, stating that AI ‘”cannot be defeated.”
But it isn’t just fun and games. Practical, powerful applications that make the best of AI’s pattern recognition abilities are on the way. Insilico Medicine, for example, used machine learning to help discover and design a new drug in just 46 days, and DeepMind is focused on using AI to crack protein folding.
Of course, AI can be a double-edged sword. When it comes to deepfakes and fake news, for example, AI makes both easier to create and detect, and early in the year, OpenAI created and announced a powerful AI text generator but delayed releasing it for fear of malicious use.
Recognizing AI’s power for good and ill, the OECD, EU, World Economic Forum, and China all took a stab at defining an ethical framework for the development and deployment of AI.

Computing Systems
Processors and chips kickstarted the digital boom and are still the bedrock of continued growth. While progress in traditional silicon-based chips continues, it’s slowing and getting more expensive. Some say we’re reaching the end of Moore’s Law. While that may be the case for traditional chips, specialized chips and entirely new kinds of computing are waiting in the wings.

In fall 2019, Google confirmed its quantum computer had achieved “quantum supremacy,” a term that means a quantum computer can perform a calculation a normal computer cannot. IBM pushed back on the claim, and it should be noted the calculation was highly specialized. But while it’s still early days, there does appear to be some real progress (and more to come).
Should quantum computing become truly practical, “the implications are staggering.” It could impact machine learning, medicine, chemistry, and materials science, just to name a few areas.
Specialized chips continue to take aim at machine learning—a giant new chip with over a trillion transistors, for example, may make machine learning algorithms significantly more efficient.
Cellular computers also saw advances in 2019 thanks to CRISPR. And the year witnessed the emergence of the first reprogrammable DNA computer and new chips inspired by the brain.
The development of hardware computing platforms is intrinsically linked to software. 2019 saw a continued move from big technology companies towards open sourcing (at least parts of) their software, potentially democratizing the use of advanced systems.

Networks
Increasing interconnectedness has, in many ways, defined the 21st century so far. Your phone is no longer just a phone. It’s access to the world’s population and accumulated knowledge—and it fits in your pocket. Pretty neat. This is all thanks to networks, which had some notable advances in 2019.

The biggest network development of the year may well be the arrival of the first 5G networks.
5G’s faster speeds promise advances across many emerging technologies.
Self-driving vehicles, for example, may become both smarter and safer thanks to 5G C-V2X networks. (Don’t worry with trying to remember that. If they catch on, they’ll hopefully get a better name.)
Wi-Fi may have heard the news and said “hold my beer,” as 2019 saw the introduction of Wi-Fi 6. Perhaps the most important upgrade, among others, is that Wi-Fi 6 ensures that the ever-growing number of network connected devices get higher data rates.
Networks also went to space in 2019, as SpaceX began launching its Starlink constellation of broadband satellites. In typical fashion, Elon Musk showed off the network’s ability to bounce data around the world by sending a Tweet.

Augmented Reality and Virtual Reality
Forget Pokemon Go (unless you want to add me as a friend in the game—in which case don’t forget Pokemon Go). 2019 saw AR and VR advance, even as Magic Leap, the most hyped of the lot, struggled to live up to outsized expectations and sell headsets.

Mixed reality AR and VR technologies, along with the explosive growth of sensor-based data about the world around us, is creating a one-to-one “Mirror World” of our physical reality—a digital world you can overlay on our own or dive into immersively thanks to AR and VR.
Facebook launched Replica, for example, which is a photorealistic virtual twin of the real world that, among other things, will help train AIs to better navigate their physical surroundings.
Our other senses (beyond eyes) may also become part of the Mirror World through the use of peripherals like a newly developed synthetic skin that aim to bring a sense of touch to VR.
AR and VR equipment is also becoming cheaper—with more producers entering the space—and more user-friendly. Instead of a wired headset requiring an expensive gaming PC, the new Oculus Quest is a wireless, self-contained step toward the mainstream.
Niche uses also continue to gain traction, from Google Glass’s Enterprise edition to the growth of AR and VR in professional education—including on-the-job-training and roleplaying emotionally difficult work encounters, like firing an employee.

Digital Biology and Biotech
The digitization of biology is happening at an incredible rate. With wild new research coming to light every year and just about every tech giant pouring money into new solutions and startups, we’re likely to see amazing advances in 2020 added to those we saw in 2019.

None were, perhaps, more visible than the success of protein-rich, plant-based substitutes for various meats. This was the year Beyond Meat was the top IPO on the NASDAQ stock exchange and people stood in line for the plant-based Impossible Whopper and KFC’s Beyond Chicken.
In the healthcare space, a report about three people with HIV who became virus free thanks to a bone marrow transplants of stem cells caused a huge stir. The research is still in relatively early stages, and isn’t suitable for most people, but it does provides a glimmer of hope.
CRISPR technology, which almost deserves its own section, progressed by leaps and bounds. One tweak made CRISPR up to 50 times more accurate, while the latest new CRISPR-based system, CRISPR prime, was described as a “word processor” for gene editing.
Many areas of healthcare stand to gain from CRISPR. For instance, cancer treatment, were a first safety test showed ‘promising’ results.
CRISPR’s many potential uses, however, also include some weird/morally questionable areas, which was exemplified by one the year’s stranger CRISPR-related stories about a human-monkey hybrid embryo in China.
Incidentally, China could be poised to take the lead on CRISPR thanks to massive investments and research programs.
As a consequence of quick advances in gene editing, we are approaching a point where we will be able to design our own biology—but first we need to have a serious conversation as a society about the ethics of gene editing and what lines should be drawn.

3D Printing
3D printing has quietly been growing both market size and the objects the printers are capable of producing. While both are impressive, perhaps the biggest story of 2019 is their increased speed.

One example was a boat that was printed in just three days, which also set three new world records for 3D printing.
3D printing is also spreading in the construction industry. In Mexico, the technology is being used to construct 50 new homes with subsidized mortgages of just $20/month.
3D printers also took care of all parts of a 640 square-meter home in Dubai.
Generally speaking, the use of 3D printing to make parts for everything from rocket engines (even entire rockets) to trains to cars illustrates the sturdiness of the technology, anno 2019.
In healthcare, 3D printing is also advancing the cause of bio-printed organs and, in one example, was used to print vascularized parts of a human heart.

Robotics
Living in Japan, I get to see Pepper, Aibo, and other robots on pretty much a daily basis. The novelty of that experience is spreading to other countries, and robots are becoming a more visible addition to both our professional and private lives.

We can’t talk about robots and 2019 without mentioning Boston Dynamics’ Spot robot, which went on sale for the general public.
Meanwhile, Google, Boston Dynamics’ former owner, rebooted their robotics division with a more down-to-earth focus on everyday uses they hope to commercialize.
SoftBank’s Pepper robot is working as a concierge and receptionist in various countries. It is also being used as a home companion. Not satisfied, Pepper rounded off 2019 by heading to the gym—to coach runners.
Indeed, there’s a growing list of sports where robots perform as well—or better—than humans.
2019 also saw robots launch an assault on the kitchen, including the likes of Samsung’s robot chef, and invade the front yard, with iRobot’s Terra robotic lawnmower.
In the borderlands of robotics, full-body robotic exoskeletons got a bit more practical, as the (by all accounts) user-friendly, battery-powered Sarcos Robotics Guardian XO went commercial.

Autonomous Vehicles
Self-driving cars did not—if you will forgive the play on words—stay quite on track during 2019. The fallout from Uber’s 2018 fatal crash marred part of the year, while some big players ratcheted back expectations on a quick shift to the driverless future. Still, self-driving cars, trucks, and other autonomous systems did make progress this year.

Winner of my unofficial award for best name in self-driving goes to Optimus Ride. The company also illustrates that self-driving may not be about creating a one-size-fits-all solution but catering to specific markets.
Self-driving trucks had a good year, with tests across many countries and states. One of the year’s odder stories was a self-driving truck traversing the US with a delivery of butter.
A step above the competition may be the future slogan (or perhaps not) of Boeing’s self-piloted air taxi that saw its maiden test flight in 2019. It joins a growing list of companies looking to create autonomous, flying passenger vehicles.
2019 was also the year where companies seemed to go all in on last-mile autonomous vehicles. Who wins that particular competition could well emerge during 2020.

Blockchain and Digital Currencies
Bitcoin continues to be the cryptocurrency equivalent of a rollercoaster, but the underlying blockchain technology is progressing more steadily. Together, they may turn parts of our financial systems cashless and digital—though how and when remains a slightly open question.

One indication of this was Facebook’s hugely controversial announcement of Libra, its proposed cryptocurrency. The company faced immediate pushback and saw a host of partners jump ship. Still, it brought the tech into mainstream conversations as never before and is putting the pressure on governments and central banks to explore their own digital currencies.
Deloitte’s in-depth survey of the state of blockchain highlighted how the technology has moved from fintech into just about any industry you can think of.
One of the biggest issues facing the spread of many digital currencies—Bitcoin in particular, you could argue—is how much energy it consumes to mine them. 2019 saw the emergence of several new digital currencies with a much smaller energy footprint.
2019 was also a year where we saw a new kind of digital currency, stablecoins, rise to prominence. As the name indicates, stablecoins are a group of digital currencies whose price fluctuations are more stable than the likes of Bitcoin.
In a geopolitical sense, 2019 was a year of China playing catch-up. Having initially banned blockchain, the country turned 180 degrees and announced that it was “quite close” to releasing a digital currency and a wave of blockchain-programs.

Renewable Energy and Energy Storage
While not every government on the planet seems to be a fan of renewable energy, it keeps on outperforming fossil fuel after fossil fuel in places well suited to it—even without support from some of said governments.

One of the reasons for renewable energy’s continued growth is that energy efficiency levels keep on improving.
As a result, an increased number of coal plants are being forced to close due to an inability to compete, and the UK went coal-free for a record two weeks.
We are also seeing more and more financial institutions refusing to fund fossil fuel projects. One such example is the European Investment Bank.
Renewable energy’s advance is tied at the hip to the rise of energy storage, which also had a breakout 2019, in part thanks to investments from the likes of Bill Gates.
The size and capabilities of energy storage also grew in 2019. The best illustration came from Australia were Tesla’s mega-battery proved that energy storage has reached a stage where it can prop up entire energy grids.

Image Credit: Mathew Schwartz / Unsplash Continue reading →

Posted in Human Robots

#436470 Retail Robots Are on the Rise—at Every ...

Posted on December 20, 2019 by Android

The robots are coming! The robots are coming! On our sidewalks, in our skies, in our every store… Over the next decade, robots will enter the mainstream of retail.

As countless robots work behind the scenes to stock shelves, serve customers, and deliver products to our doorstep, the speed of retail will accelerate.

These changes are already underway. In this blog, we’ll elaborate on how robots are entering the retail ecosystem.

Let’s dive in.

Robot Delivery
On August 3rd, 2016, Domino’s Pizza introduced the Domino’s Robotic Unit, or “DRU” for short. The first home delivery pizza robot, the DRU looks like a cross between R2-D2 and an oversized microwave.

LIDAR and GPS sensors help it navigate, while temperature sensors keep hot food hot and cold food cold. Already, it’s been rolled out in ten countries, including New Zealand, France, and Germany, but its August 2016 debut was critical—as it was the first time we’d seen robotic home delivery.

And it won’t be the last.

A dozen or so different delivery bots are fast entering the market. Starship Technologies, for instance, a startup created by Skype founders Janus Friis and Ahti Heinla, has a general-purpose home delivery robot. Right now, the system is an array of cameras and GPS sensors, but upcoming models will include microphones, speakers, and even the ability—via AI-driven natural language processing—to communicate with customers. Since 2016, Starship has already carried out 50,000 deliveries in over 100 cities across 20 countries.

Along similar lines, Nuro—co-founded by Jiajun Zhu, one of the engineers who helped develop Google’s self-driving car—has a miniature self-driving car of its own. Half the size of a sedan, the Nuro looks like a toaster on wheels, except with a mission. This toaster has been designed to carry cargo—about 12 bags of groceries (version 2.0 will carry 20)—which it’s been doing for select Kroger stores since 2018. Domino’s also partnered with Nuro in 2019.

As these delivery bots take to our streets, others are streaking across the sky.

Back in 2016, Amazon came first, announcing Prime Air—the e-commerce giant’s promise of drone delivery in 30 minutes or less. Almost immediately, companies ranging from 7-Eleven and Walmart to Google and Alibaba jumped on the bandwagon.

While critics remain doubtful, the head of the FAA’s drone integration department recently said that drone deliveries may be “a lot closer than […] the skeptics think. [Companies are] getting ready for full-blown operations. We’re processing their applications. I would like to move as quickly as I can.”

In-Store Robots
While delivery bots start to spare us trips to the store, those who prefer shopping the old-fashioned way—i.e., in person—also have plenty of human-robot interaction in store. In fact, these robotics solutions have been around for a while.

In 2010, SoftBank introduced Pepper, a humanoid robot capable of understanding human emotion. Pepper is cute: 4 feet tall, with a white plastic body, two black eyes, a dark slash of a mouth, and a base shaped like a mermaid’s tail. Across her chest is a touch screen to aid in communication. And there’s been a lot of communication. Pepper’s cuteness is intentional, as it matches its mission: help humans enjoy life as much as possible.

Over 12,000 Peppers have been sold. She serves ice cream in Japan, greets diners at a Pizza Hut in Singapore, and dances with customers at a Palo Alto electronics store. More importantly, Pepper’s got company.

Walmart uses shelf-stocking robots for inventory control. Best Buy uses a robo-cashier, allowing select locations to operate 24-7. And Lowe’s Home Improvement employs the LoweBot—a giant iPad on wheels—to help customers find the items they need while tracking inventory along the way.

Warehouse Bots
Yet the biggest benefit robots provide might be in-warehouse logistics.

In 2012, when Amazon dished out $775 million for Kiva Systems, few could predict that just 6 years later, 45,000 Kiva robots would be deployed at all of their fulfillment centers, helping process a whopping 306 items per second during the Christmas season.

And many other retailers are following suit.

Order jeans from the Gap, and soon they’ll be sorted, packed, and shipped with the help of a Kindred robot. Remember the old arcade game where you picked up teddy bears with a giant claw? That’s Kindred, only her claw picks up T-shirts, pants, and the like, placing them in designated drop-off zones that resemble tiny mailboxes (for further sorting or shipping).

The big deal here is democratization. Kindred’s robot is cheap and easy to deploy, allowing smaller companies to compete with giants like Amazon.

Final Thoughts
For retailers interested in staying in business, there doesn’t appear to be much choice in the way of robotics.

By 2024, the US minimum wage is projected to be $15 an hour (the House of Representatives has already passed the bill, but the wage hike is meant to unfold gradually between now and 2025), and many consider that number far too low.

Yet, as human labor costs continue to climb, robots won’t just be coming, they’ll be here, there, and everywhere. It’s going to become increasingly difficult for store owners to justify human workers who call in sick, show up late, and can easily get injured. Robots work 24-7. They never take a day off, never need a bathroom break, health insurance, or parental leave.

Going forward, this spells a growing challenge of technological unemployment (a blog topic I will cover in the coming month). But in retail, robotics usher in tremendous benefits for companies and customers alike.

And while professional re-tooling initiatives and the transition of human capital from retail logistics to a booming experience economy take hold, robotic retail interaction and last-mile delivery will fundamentally transform our relationship with commerce.

This blog comes from The Future is Faster Than You Think—my upcoming book, to be released Jan 28th, 2020. To get an early copy and access up to $800 worth of pre-launch giveaways, sign up here!

Join Me
(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.)

Image Credit: Image by imjanuary from Pixabay Continue reading →

Posted in Human Robots

#436462 Robotic Exoskeletons, Like This One, Are ...

Posted on December 18, 2019 by Android

When you imagine an exoskeleton, chances are it might look a bit like the Guardian XO from Sarcos Robotics. The XO is literally a robot you wear (or maybe, it wears you). The suit’s powered limbs sense your movements and match their position to yours with little latency to give you effortless superstrength and endurance—lifting 200 pounds will feel like 10.

A vision of robots and humankind working together in harmony. Now, isn’t that nice?

Of course, there isn’t anything terribly novel about an exoskeleton. We’ve seen plenty of concepts and demonstrations in the last decade. These include light exoskeletons tailored to industrial settings—some of which are being tested out by the likes of Honda—and healthcare exoskeletons that support the elderly or folks with disabilities.

Full-body powered robotic exoskeletons are a bit rarer, which makes the Sarcos suit pretty cool to look at. But like all things in robotics, practicality matters as much as vision. It’s worth asking: Will anyone buy and use the thing? Is it more than a concept video?

Sarcos thinks so, and they’re excited about it. “If you were to ask the question, what does 30 years and $300 million look like,” Sarcos CEO, Ben Wolff, told IEEE Spectrum, “you’re going to see it downstairs.”

The XO appears to check a few key boxes. For one, it’s user friendly. According to Sarcos, it only takes a few minutes for the uninitiated to strap in and get up to speed. Feeling comfortable doing work with the suit takes a few hours. This is thanks to a high degree of sensor-based automation that allows the robot to seamlessly match its user’s movements.

The XO can also operate for more than a few minutes. It has two hours of battery life, and with spares on hand, it can go all day. The batteries are hot-swappable, meaning you can replace a drained battery with a new one without shutting the system down.

The suit is aimed at manufacturing, where workers are regularly moving heavy stuff around. Additionally, Wolff told CNET, the suit could see military use. But that doesn’t mean Avatar-style combat. The XO, Wolff said, is primarily about logistics (lifting and moving heavy loads) and isn’t designed to be armored, so it won’t likely see the front lines.

The system will set customers back $100,000 a year to rent, which sounds like a lot, but for industrial or military purposes, the six-figure rental may not deter would-be customers if the suit proves itself a useful bit of equipment. (And it’s reasonable to imagine the price coming down as the technology becomes more commonplace and competitors arrive.)

Sarcos got into exoskeletons a couple decades ago and was originally funded by the military (like many robotics endeavors). Videos hit YouTube as long ago as 2008, but after announcing the company was taking orders for the XO earlier this year, Sarcos says they’ll deliver the first alpha units in January, which is a notable milestone.

Broadly, robotics has advanced a lot in recent years. YouTube sensations like Boston Dynamics have regularly earned millions of views (and inevitably, headlines stoking robot fear). They went from tethered treadmill sessions to untethered backflips off boxes. While today’s robots really are vastly superior to their ancestors, they’ve struggled to prove themselves useful. A counterpoint to flashy YouTube videos, the DARPA Robotics Challenge gave birth to another meme altogether. Robots falling over. Often and awkwardly.

This year marks some of the first commercial fruits of a few decades’ research. Boston Dynamics recently started offering its robot dog, Spot, to select customers in 2019. Whether this proves to be a headline-worthy flash in the pan or something sustainable remains to be seen. But between robots with more autonomy and exoskeletons like the XO, the exoskeleton variety will likely be easier to make more practical for various uses.

Whereas autonomous robots require highly advanced automation to navigate uncertain and ever-changing conditions—automation which, at the moment, remains largely elusive (though the likes of Google are pairing the latest AI with robots to tackle the problem)—an exoskeleton mainly requires physical automation. The really hard bits, like navigating and recognizing and interacting with objects, are outsourced to its human operator.

As it turns out, for today’s robots the best AI is still us. We may yet get chipper automatons like Rosy the Robot, but until then, for complicated applications, we’ll strap into our mechs for their strength and endurance, and they’ll wear us for our brains.

Image Credit: Sarcos Robotics Continue reading →

Posted in Human Robots

#436414 Japanese Researchers Teaching Robots to ...

Posted on December 5, 2019 by Android

When mobile manipulators eventually make it into our homes, self-repair is going to be a very important function. Hopefully, these robots will be durable enough that they won’t need to be repaired very often, but from time to time they’ll almost certainly need minor maintenance. At Humanoids 2019 in Toronto, researchers from the University of Tokyo showed how they taught a PR2 to perform simple repairs on itself by tightening its own screws. And using that skill, the robot was also able to augment itself, adding accessories like hooks to help it carry more stuff. Clever robot!

To keep things simple, the researchers provided the robot with CAD data that tells it exactly where all of its screws are.

At the moment, the robot can’t directly detect on its own whether a particular screw needs tightening, although it can tell if its physical pose doesn’t match its digital model, which suggests that something has gone wonky. It can also check its screws autonomously from time to time, or rely on a human physically pointing out that it has a screw loose, using the human’s finger location to identify which screw it is. Another challenge is that most robots, like most humans, are limited in the areas on themselves that they can comfortably reach. So to tighten up everything, they might have to find themselves a robot friend to help, just like humans help each other put on sunblock.

The actual tightening is either super easy or quite complicated, depending on the location and orientation of the screw. If the robot is lucky, it can just use its continuous wrist rotation for tightening, but if a screw is located in a tight position that requires an Allen wrench, the robot has to regrasp the tool over and over as it incrementally tightens the screw.

Image: University of Tokyo

In one experiment, the researchers taught a PR2 robot to attach a hook to one of its shoulders. The robot uses one hand to grasp the hook and another hand to grasp a screwdriver. The researchers tested the hook by hanging a tote bag on it.

The other neat trick that a robot can do once it can tighten screws on its own body is to add new bits of hardware to itself. PR2 was thoughtfully designed with mounting points on its shoulders (or maybe technically its neck) and head, and it turns out that it can reach these points with its manipulators, allowing to modify itself, as the researchers explain:

When PR2 wants to have a lot of things, the only two hands are not enough to realize that. So we let PR2 to use a bag the same as we put it on our shoulder. PR2 started attaching the hook whose pose is calculated with self CAD data with a driver on his shoulder in order to put a bag on his shoulder. PR2 finished attaching the hook, and the people put a lot of cans in a tote bag and put it on PR2’s shoulder.

“Self-Repair and Self-Extension by Tightening Screws based on Precise Calculation of Screw Pose of Self-Body with CAD Data and Graph Search with Regrasping a Driver,” by Takayuki Murooka, Kei Okada, and Masayuki Inaba from the University of Tokyo, was presented at Humanoids 2019 in Toronto, Canada. 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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This article originally appeared on diamandis.com. Read the original article here.

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