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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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#431808 Should you get your child an AI doll ...

The technological revolution has hit the doll aisle this holiday season in the form of artificial intelligence dolls. The dolls blend a physical toy with either a mobile device and app, or technological sensors, to simulate signs of intelligence. Continue reading

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#431368 This Week’s Awesome Stories From ...

INTERNET OF THINGSAmazon Key Is a New Service That Lets Couriers Unlock Your Front DoorBen Popper | The Verge“When a courier arrives with a package for in-home delivery, they scan the barcode, sending a request to Amazon’s cloud. If everything checks out, the cloud grants permission by sending a message back to the camera, which starts recording. The courier then gets a prompt on their app, swipes the screen, and voilà, your door unlocks.”
ROBOTICSWatch Yamaha’s Humanoid Robot Ride a Motorcycle Around a RacetrackPhilip E. Ross | IEEE Spectrum“What’s striking is that the bike is unmodified: the robot is a hunched-over form on top. It senses the environment, calculates what to do, keeps the bike stable, manages acceleration and deceleration—all while factoring in road conditions, air resistance, and engine braking.”
ARTIFICIAL INTELLIGENCETech Giants Are Paying Huge Salaries for Scarce A.I. TalentCade Metz | The New York Times“Typical A.I. specialists, including both Ph.D.s fresh out of school and people with less education and just a few years of experience, can be paid from $300,000 to $500,000 a year or more in salary and company stock, according to nine people who work for major tech companies or have entertained job offers from them. All of them requested anonymity because they did not want to damage their professional prospects.”
HEALTH This Doctor Diagnosed His Own Cancer With an iPhone UltrasoundAntonio Regalado | MIT Technology Review“The device he used, called the Butterfly IQ, is the first solid-state ultrasound machine to reach the market in the U.S. Ultrasound works by shooting sound into the body and capturing the echoes. Usually, the sound waves are generated by a vibrating crystal. But Butterfly’s machine instead uses 9,000 tiny drums etched onto a semiconductor chip.”
ENTREPRENEURSHIPWeWork: A $20 Billion Startup Fueled by Silicon Valley Pixie DustEliot Brown | Wall Street Journal“WeWork’s strategy carries the costs and risks associated with traditional real estate. Its client list is heavily weighted toward startups that may or may not be around for long. WeWork is on the hook for long-term leases, and it doesn’t own its own buildings. Vacancy rates have risen recently, and the company is increasing incentives to draw tenants… The model has proved popular, with 150,000 individuals renting space in more than 170 locations globally.”
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#431315 Better Than Smart Speakers? Japan Is ...

While American internet giants are developing speakers, Japanese companies are working on robots and holograms. They all share a common goal: to create the future platform for the Internet of Things (IoT) and smart homes.
Names like Bocco, EMIEW3, Xperia Assistant, and Gatebox may not ring a bell to most outside of Japan, but Sony, Hitachi, Sharp, and Softbank most certainly do. The companies, along with Japanese start-ups, have developed robots, robot concepts, and even holograms like the ones hiding behind the short list of names.
While there are distinct differences between the various systems, they share the potential to act as a remote control for IoT devices and smart homes. It is a very different direction than that taken by companies like Google, Amazon, and Apple, who have so far focused on building IoT speaker systems.
Bocco robot. Image Credit: Yukai Engineering
“Technology companies are pursuing the platform—or smartphone if you will—for IoT. My impression is that Japanese companies—and Japanese consumers—prefer that such a platform should not just be an object, but a companion,” says Kosuke Tatsumi, designer at Yukai Engineering, a startup that has developed the Bocco robot system.
At Hitachi, a spokesperson said that the company’s human symbiotic service robot, EMIEW3, robot is currently in the field, doing proof-of-value tests at customer sites to investigate needs and potential solutions. This could include working as an interactive control system for the Internet of Things:
“EMIEW3 is able to communicate with humans, thus receive instructions, and as it is connected to a robotics IT platform, it is very much capable of interacting with IoT-based systems,” the spokesperson said.
The power of speech is getting feet
Gartner analysis predicts that there will be 8.4 billion internet-connected devices—collectively making up the Internet of Things—by the end of 2017. 5.2 billion of those devices are in the consumer category. By the end of 2020, the number of IoT devices will rise to 12.8 billion—and that is just in the consumer category.
As a child of the 80s, I can vividly remember how fun it was to have separate remote controls for TV, video, and stereo. I can imagine a situation where my internet-connected refrigerator and ditto thermostat, television, and toaster try to work out who I’m talking to and what I want them to do.
Consensus seems to be that speech will be the way to interact with many/most IoT devices. The same goes for a form of virtual assistant functioning as the IoT platform—or remote control. Almost everything else is still an open ballgame, despite an early surge for speaker-based systems, like those from Amazon, Google, and Apple.
Why robots could rule
Famous android creator and robot scientist Dr. Hiroshi Ishiguro sees the interaction between humans and the AI embedded in speakers or robots as central to both approaches. From there, the approaches differ greatly.
Image Credit: Hiroshi Ishiguro Laboratories
“It is about more than the difference of form. Speaking to an Amazon Echo is not a natural kind of interaction for humans. That is part of what we in Japan are creating in many human-like robot systems,” he says. “The human brain is constructed to recognize and interact with humans. This is part of why it makes sense to focus on developing the body for the AI mind as well as the AI mind itself. In a way, you can describe it as the difference between developing an assistant, which could be said to be what many American companies are currently doing, and a companion, which is more the focus here in Japan.”
Another advantage is that robots are more kawaii—a multifaceted Japanese word that can be translated as “cute”—than speakers are. This makes it easy for people to relate to them and forgive them.
“People are more willing to forgive children when they make mistakes, and the same is true with a robot like Bocco, which is designed to look kawaii and childlike,” Kosuke Tatsumi explains.
Japanese robots and holograms with IoT-control capabilities
So, what exactly do these robot and hologram companions look like, what can they do, and who’s making them? Here are seven examples of Japanese companies working to go a step beyond smart speakers with personable robots and holograms.
1. In 2016 Sony’s mobile division demonstrated the Xperia Agent concept robot that recognizes individual users, is voice controlled, and can do things like control your television and receive calls from services like Skype.

2. Sharp launched their Home Assistant at CES 2016. A robot-like, voice-controlled assistant that can to control, among other things, air conditioning units, and televisions. Sharp has also launched a robotic phone called RoBoHon.
3. Gatebox has created a holographic virtual assistant. Evil tongues will say that it is primarily the expression of an otaku (Japanese for nerd) dream of living with a manga heroine. Gatebox is, however, able to control things like lights, TVs, and other systems through API integration. It also provides its owner with weather-related advice like “remember your umbrella, it looks like it will rain later.” Gatebox can be controlled by voice, gesture, or via an app.
4. Hitachi’s EMIEW3 robot is designed to assist people in businesses and public spaces. It is connected to a robot IT-platform via the cloud that acts as a “remote brain.” Hitachi is currently investigating the business use cases for EMIEW3. This could include the role of controlling platform for IoT devices.

5. Softbank’s Pepper robot has been used as a platform to control use of medical IoT devices such as smart thermometers by Avatarion. The company has also developed various in-house systems that enable Pepper to control IoT-devices like a coffee machine. A user simply asks Pepper to brew a cup of coffee, and it starts the coffee machine for you.
6. Yukai Engineering’s Bocco registers when a person (e.g., young child) comes home and acts as a communication center between that person and other members of the household (e.g., parent still at work). The company is working on integrating voice recognition, voice control, and having Bocco control things like the lights and other connected IoT devices.
7. Last year Toyota launched the Kirobo Mini, a companion robot which aims to, among other things, help its owner by suggesting “places to visit, routes for travel, and music to listen to” during the drive.

Today, Japan. Tomorrow…?
One of the key questions is whether this emerging phenomenon is a purely Japanese thing. If the country’s love of robots makes it fundamentally different. Japan is, after all, a country where new units of Softbank’s Pepper robot routinely sell out in minutes and the RoBoHon robot-phone has its own cafe nights in Tokyo.
It is a country where TV introduces you to friendly, helpful robots like Doraemon and Astro Boy. I, on the other hand, first met robots in the shape of Arnold Schwarzenegger’s Terminator and struggled to work out why robots seemed intent on permanently borrowing things like clothes and motorcycles, not to mention why they hated people called Sarah.
However, research suggests that a big part of the reason why Japanese seem to like robots is a combination of exposure and positive experiences that leads to greater acceptance of them. As robots spread to more and more industries—and into our homes—our acceptance of them will grow.
The argument is also backed by a project by Avatarion, which used Softbank’s Nao-robot as a classroom representative for children who were in the hospital.
“What we found was that the other children quickly adapted to interacting with the robot and treating it as the physical representation of the child who was in hospital. They accepted it very quickly,” Thierry Perronnet, General Manager of Avatarion, explains.
His company has also developed solutions where Softbank’s Pepper robot is used as an in-home nurse and controls various medical IoT devices.
If robots end up becoming our preferred method for controlling IoT devices, it is by no means certain that said robots will be coming from Japan.
“I think that the goal for both Japanese and American companies—including the likes of Google, Amazon, Microsoft, and Apple—is to create human-like interaction. For this to happen, technology needs to evolve and adapt to us and how we are used to interacting with others, in other words, have a more human form. Humans’ speed of evolution cannot keep up with technology’s, so it must be the technology that changes,” Dr. Ishiguro says.
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#431159 How Close Is Turing’s Dream of ...

The quest for conversational artificial intelligence has been a long one.
When Alan Turing, the father of modern computing, racked his considerable brains for a test that would truly indicate that a computer program was intelligent, he landed on this area. If a computer could convince a panel of human judges that they were talking to a human—if it could hold a convincing conversation—then it would indicate that artificial intelligence had advanced to the point where it was indistinguishable from human intelligence.
This gauntlet was thrown down in 1950 and, so far, no computer program has managed to pass the Turing test.
There have been some very notable failures, however: Joseph Weizenbaum, as early as 1966—when computers were still programmed with large punch-cards—developed a piece of natural language processing software called ELIZA. ELIZA was a machine intended to respond to human conversation by pretending to be a psychotherapist; you can still talk to her today.
Talking to ELIZA is a little strange. She’ll often rephrase things you’ve said back at you: so, for example, if you say “I’m feeling depressed,” she might say “Did you come to me because you are feeling depressed?” When she’s unsure about what you’ve said, ELIZA will usually respond with “I see,” or perhaps “Tell me more.”
For the first few lines of dialogue, especially if you treat her as your therapist, ELIZA can be convincingly human. This was something Weizenbaum noticed and was slightly alarmed by: people were willing to treat the algorithm as more human than it really was. Before long, even though some of the test subjects knew ELIZA was just a machine, they were opening up with some of their deepest feelings and secrets. They were pouring out their hearts to a machine. When Weizenbaum’s secretary spoke to ELIZA, even though she knew it was a fairly simple computer program, she still insisted Weizenbaum leave the room.
Part of the unexpected reaction ELIZA generated may be because people are more willing to open up to a machine, feeling they won’t be judged, even if the machine is ultimately powerless to do or say anything to really help. The ELIZA effect was named for this computer program: the tendency of humans to anthropomorphize machines, or think of them as human.

Weizenbaum himself, who later became deeply suspicious of the influence of computers and artificial intelligence in human life, was astonished that people were so willing to believe his script was human. He wrote, “I had not realized…that extremely short exposures to a relatively simple computer program could induce powerful delusional thinking in quite normal people.”

“Consciously, you know you’re talking to a big block of code stored somewhere out there in the ether. But subconsciously, you might feel like you’re interacting with a human.”

The ELIZA effect may have disturbed Weizenbaum, but it has intrigued and fascinated others for decades. Perhaps you’ve noticed it in yourself, when talking to an AI like Siri, Alexa, or Google Assistant—the occasional response can seem almost too real. Consciously, you know you’re talking to a big block of code stored somewhere out there in the ether. But subconsciously, you might feel like you’re interacting with a human.
Yet the ELIZA effect, as enticing as it is, has proved a source of frustration for people who are trying to create conversational machines. Natural language processing has proceeded in leaps and bounds since the 1960s. Now you can find friendly chatbots like Mitsuku—which has frequently won the Loebner Prize, awarded to the machines that come closest to passing the Turing test—that aim to have a response to everything you might say.
In the commercial sphere, Facebook has opened up its Messenger program and provided software for people and companies to design their own chatbots. The idea is simple: why have an app for, say, ordering pizza when you can just chatter to a robot through your favorite messenger app and make the order in natural language, as if you were telling your friend to get it for you?
Startups like Semantic Machines hope their AI assistant will be able to interact with you just like a secretary or PA would, but with an unparalleled ability to retrieve information from the internet. They may soon be there.
But people who engineer chatbots—both in the social and commercial realm—encounter a common problem: the users, perhaps subconsciously, assume the chatbots are human and become disappointed when they’re not able to have a normal conversation. Frustration with miscommunication can often stem from raised initial expectations.
So far, no machine has really been able to crack the problem of context retention—understanding what’s been said before, referring back to it, and crafting responses based on the point the conversation has reached. Even Mitsuku will often struggle to remember the topic of conversation beyond a few lines of dialogue.

“For everything you say, there could be hundreds of responses that would make sense. When you travel a layer deeper into the conversation, those factors multiply until you end up with vast numbers of potential conversations.”

This is, of course, understandable. Conversation can be almost unimaginably complex. For everything you say, there could be hundreds of responses that would make sense. When you travel a layer deeper into the conversation, those factors multiply until—like possible games of Go or chess—you end up with vast numbers of potential conversations.
But that hasn’t deterred people from trying, most recently, tech giant Amazon, in an effort to make their AI voice assistant, Alexa, friendlier. They have been running the Alexa Prize competition, which offers a cool $500,000 to the winning AI—and a bonus of a million dollars to any team that can create a ‘socialbot’ capable of sustaining a conversation with human users for 20 minutes on a variety of themes.
Topics Alexa likes to chat about include science and technology, politics, sports, and celebrity gossip. The finalists were recently announced: chatbots from universities in Prague, Edinburgh, and Seattle. Finalists were chosen according to the ratings from Alexa users, who could trigger the socialbots into conversation by saying “Hey Alexa, let’s chat,” although the reviews for the socialbots weren’t always complimentary.
By narrowing down the fields of conversation to a specific range of topics, the Alexa Prize has cleverly started to get around the problem of context—just as commercially available chatbots hope to do. It’s much easier to model an interaction that goes a few layers into the conversational topic if you’re limiting those topics to a specific field.
Developing a machine that can hold almost any conversation with a human interlocutor convincingly might be difficult. It might even be a problem that requires artificial general intelligence to truly solve, rather than the previously-employed approaches of scripted answers or neural networks that associate inputs with responses.
But a machine that can have meaningful interactions that people might value and enjoy could be just around the corner. The Alexa Prize winner is announced in November. The ELIZA effect might mean we will relate to machines sooner than we’d thought.
So, go well, little socialbots. If you ever want to discuss the weather or what the world will be like once you guys take over, I’ll be around. Just don’t start a therapy session.
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