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#431543 China Is an Entrepreneurial Hotbed That ...
Last week, Eric Schmidt, chairman of Alphabet, predicted that China will rapidly overtake the US in artificial intelligence…in as little as five years.
Last month, China announced plans to open a $10 billion quantum computing research center in 2020.
Bottom line, China is aggressively investing in exponential technologies, pursuing a bold goal of becoming the global AI superpower by 2030.
Based on what I’ve observed from China’s entrepreneurial scene, I believe they have a real shot of hitting that goal.
As I described in a previous tech blog, I recently traveled to China with a group of my Abundance 360 members, where I was hosted by my friend Kai-Fu Lee, the founder, chairman, and CEO of Sinovation Ventures.
On one of our first nights, Kai-Fu invited us to a special dinner at Da Dong Roast, which specializes in Peking duck, where we shared an 18-course meal.
The meal was amazing, and Kai-Fu’s dinner conversation provided us priceless insights on Chinese entrepreneurs.
Three topics opened my eyes. Here’s the wisdom I’d like to share with you.
1. The Entrepreneurial Culture in China
Chinese entrepreneurship has exploded onto the scene and changed significantly over the past 10 years.
In my opinion, one significant way that Chinese entrepreneurs vary from their American counterparts is in work ethic. The mantra I found in the startups I visited in Beijing and Shanghai was “9-9-6”—meaning the employees only needed to work from 9 am to 9 pm, 6 days a week.
Another concept Kai-Fu shared over dinner was the almost ‘dictatorial’ leadership of the founder/CEO. In China, it’s not uncommon for the Founder/CEO to own the majority of the company, or at least 30–40 percent. It’s also the case that what the CEO says is gospel. Period, no debate. There is no minority or dissenting opinion. When the CEO says “march,” the company asks, “which way?”
When Kai-Fu started Sinovation (his $1 billion+ venture fund), there were few active angel investors. Today, China has a rich ecosystem of angel, venture capital, and government-funded innovation parks.
As venture capital in China has evolved, so too has the mindset of the entrepreneur.
Kai -Fu recalled an early investment he made in which, after an unfortunate streak, the entrepreneur came to him, almost in tears, apologizing for losing his money and promising he would earn it back for him in another way. Kai-Fu comforted the entrepreneur and said there was no such need.
Only a few years later, the situation was vastly different. An entrepreneur who was going through a similar unfortunate streak came to Kai Fu and told him he only had $2 million left of his initial $12 million investment. He informed him he saw no value in returning the money and instead was going to take the last $2 million and use it as a final push to see if the company could succeed. He then promised Kai-Fu if he failed, he would remember what Kai-Fu did for him and, as such, possibly give Sinovation an opportunity to invest in him with his next company.
2. Chinese Companies Are No Longer Just ‘Copycats’
During dinner, Kai-Fu lamented that 10 years ago, it would be fair to call Chinese companies copycats of American companies. Five years ago, the claim would be controversial. Today, however, Kai-Fu is clear that claim is entirely false.
While smart Chinese startups will still look at what American companies are doing and build on trends, today it’s becoming a wise business practice for American tech giants to analyze Chinese companies. If you look at many new features of Facebook’s Messenger, it seems to very closely mirror TenCent’s WeChat.
Interestingly, tight government controls in China have actually spurred innovation. Take TV, for example, a highly regulated industry. Because of this regulation, most entertainment in China is consumed on the internet or by phone. Game shows, reality shows, and more will be entirely centered online.
Kai-Fu told us about one of his investments in a company that helps create Chinese singing sensations. They take girls in from a young age, school them, and regardless of talent, help build their presence and brand as singers. Once ready, these singers are pushed across all the available platforms, and superstars are born. The company recognizes its role in this superstar status, though, which is why it takes a 50 percent cut of all earnings.
This company is just one example of how Chinese entrepreneurs take advantage of China’s unique position, market, and culture.
3. China’s Artificial Intelligence Play
Kai-Fu wrapped up his talk with a brief introduction into the expansive AI industry in China. I previously discussed Face++, a Sinovation investment, which is creating radically efficient facial recognition technology. Face++ is light years ahead of anyone else globally at recognition in live videos. However, Face++ is just one of the incredible advances in AI coming out of China.
Baidu, one of China’s most valuable tech companies, started out as just a search company. However, they now run one of the country’s leading self-driving car programs.
Baidu’s goal is to create a software suite atop existing hardware that will control all self-driving aspects of a vehicle but also be able to provide additional services such as HD mapping and more.
Another interesting application came from another of Sinovation’s investments, Smart Finance Group (SFG). Given most payments are mobile (through WeChat or Alipay), only ~20 percent of the population in China have a credit history. This makes it very difficult for individuals in China to acquire a loan.
SFG’s mobile application takes in user data (as much as the user allows) and, based on the information provided, uses an AI agent to create a financial profile with the power to offer an instant loan. This loan can be deposited directly into their WeChat or Alipay account and is typically approved in minutes. Unlike American loan companies, they avoid default and long-term debt by only providing a one-month loan with 10% interest. Borrow $200, and you pay back $220 by the following month.
Artificial intelligence is exploding in China, and Kai-Fu believes it will touch every single industry.
The only constant is change, and the rate of change is constantly increasing.
In the next 10 years, we’ll see tremendous changes on the geopolitical front and the global entrepreneurial scene caused by technological empowerment.
China is an entrepreneurial hotbed that cannot be ignored. I’m monitoring it closely. Are you?
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Posted in Human Robots
#431427 Why the Best Healthcare Hacks Are the ...
Technology has the potential to solve some of our most intractable healthcare problems. In fact, it’s already doing so, with inventions getting us closer to a medical Tricorder, and progress toward 3D printed organs, and AIs that can do point-of-care diagnosis.
No doubt these applications of cutting-edge tech will continue to push the needle on progress in medicine, diagnosis, and treatment. But what if some of the healthcare hacks we need most aren’t high-tech at all?
According to Dr. Darshak Sanghavi, this is exactly the case. In a talk at Singularity University’s Exponential Medicine last week, Sanghavi told the audience, “We often think in extremely complex ways, but I think a lot of the improvements in health at scale can be done in an analog way.”
Sanghavi is the chief medical officer and senior vice president of translation at OptumLabs, and was previously director of preventive and population health at the Center for Medicare and Medicaid Innovation, where he oversaw the development of large pilot programs aimed at improving healthcare costs and quality.
“How can we improve health at scale, not for only a small number of people, but for entire populations?” Sanghavi asked. With programs that benefit a small group of people, he explained, what tends to happen is that the average health of a population improves, but the disparities across the group worsen.
“My mantra became, ‘The denominator is everybody,’” he said. He shared details of some low-tech but crucial fixes he believes could vastly benefit the US healthcare system.
1. Regulatory Hacking
Healthcare regulations are ultimately what drive many aspects of patient care, for better or worse. Worse because the mind-boggling complexity of regulations (exhibit A: the Affordable Care Act is reportedly about 20,000 pages long) can make it hard for people to get the care they need at a cost they can afford, but better because, as Sanghavi explained, tweaking these regulations in the right way can result in across-the-board improvements in a given population’s health.
An adjustment to Medicare hospitalization rules makes for a relevant example. The code was updated to state that if people who left the hospital were re-admitted within 30 days, that hospital had to pay a penalty. The result was hospitals taking more care to ensure patients were released not only in good health, but also with a solid understanding of what they had to do to take care of themselves going forward. “Here, arguably the writing of a few lines of regulatory code resulted in a remarkable decrease in 30-day re-admissions, and the savings of several billion dollars,” Sanghavi said.
2. Long-Term Focus
It’s easy to focus on healthcare hacks that have immediate, visible results—but what about fixes whose benefits take years to manifest? How can we motivate hospitals, regulators, and doctors to take action when they know they won’t see changes anytime soon?
“I call this the reality TV problem,” Sanghavi said. “Reality shows don’t really care about who’s the most talented recording artist—they care about getting the most viewers. That is exactly how we think about health care.”
Sanghavi’s team wanted to address this problem for heart attacks. They found they could reliably determine someone’s 10-year risk of having a heart attack based on a simple risk profile. Rather than monitoring patients’ cholesterol, blood pressure, weight, and other individual factors, the team took the average 10-year risk across entire provider panels, then made providers responsible for controlling those populations.
“Every percentage point you lower that risk, by hook or by crook, you get some people to stop smoking, you get some people on cholesterol medication. It’s patient-centered decision-making, and the provider then makes money. This is the world’s first predictive analytic model, at scale, that’s actually being paid for at scale,” he said.
3. Aligned Incentives
If hospitals are held accountable for the health of the communities they’re based in, those hospitals need to have the right incentives to follow through. “Hospitals have to spend money on community benefit, but linking that benefit to a meaningful population health metric can catalyze significant improvements,” Sanghavi said.
Darshak Sanghavi speaking at Singularity University’s 2017 Exponential Medicine Summit in San Diego, CA.
He used smoking cessation as an example. His team designed a program where hospitals were given a score (determined by the Centers for Disease Control and Prevention) based on the smoking rate in the counties where they’re located, then given monetary incentives to improve their score. Improving their score, in turn, resulted in better health for their communities, which meant fewer patients to treat for smoking-related health problems.
4. Social Determinants of Health
Social determinants of health include factors like housing, income, family, and food security. The answer to getting people to pay attention to these factors at scale, and creating aligned incentives, Sanghavi said, is “Very simple. We just have to measure it to start with, and measure it universally.”
His team was behind a $157 million pilot program called Accountable Health Communities that went live this year. The program requires all Medicare and Medicaid beneficiaries get screened for various social determinants of health. With all that data being collected, analysts can pinpoint local trends, then target funds to address the underlying problem, whether it’s job training, drug use, or nutritional education. “You’re then free to invest the dollars where they’re needed…this is how we can improve health at scale, with very simple changes in the incentive structures that are created,” he said.
5. ‘Securitizing’ Public Health
Sanghavi’s final point tied back to his discussion of aligning incentives. As misguided as it may seem, the reality is that financial incentives can make a huge difference in healthcare outcomes, from both a patient and a provider perspective.
Sanghavi’s team did an experiment in which they created outcome benchmarks for three major health problems that exist across geographically diverse areas: smoking, adolescent pregnancy, and binge drinking. The team proposed measuring the baseline of these issues then creating what they called a social impact bond. If communities were able to lower their frequency of these conditions by a given percent within a stated period of time, they’d get paid for it.
“What that did was essentially say, ‘you have a buyer for this outcome if you can achieve it,’” Sanghavi said. “And you can try to get there in any way you like.” The program is currently in CMS clearance.
AI and Robots Not Required
Using robots to perform surgery and artificial intelligence to diagnose disease will undoubtedly benefit doctors and patients around the US and the world. But Sanghavi’s talk made it clear that our healthcare system needs much more than this, and that improving population health on a large scale is really a low-tech project—one involving more regulatory and financial innovation than technological innovation.
“The things that get measured are the things that get changed,” he said. “If we choose the right outcomes to predict long-term benefit, and we pay for those outcomes, that’s the way to make progress.”
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Posted in Human Robots
#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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Posted in Human Robots
#431158 This AI Assistant Helps Demystify ...
In an interview at Singularity University’s Global Summit in San Francisco, Anita Schjøll Brede talked about how artificial intelligence can help make scientific research accessible to anyone working on a complex problem.
Anita Schjøll Brede is the CEO and co-founder of Iris AI, a startup that’s building an artificially intelligent research assistant, which was recently named one of the most innovative AI startups of 2017 by Fast Company. Schjøll Brede is also faculty at Singularity University Denmark and a 2015 alumni of the Global Solutions Program.
“Ultimately, we’re building an AI that can read, understand, and connect the dots,” Schjøll Brede said. “But zooming that back into today, we’re building a tool for R&D, research institutions, and entrepreneurs who have big hairy problems to solve and need to apply research and science to solve them. We’re semi-automating the process of mapping out what you should read to solve the problem or to see what research you need to do to solve the problem.”
Watch the interview for more on Iris AI’s technology and to hear Schjøll Brede’s take on whether AI researchers share a moral responsibility for the systems they build.
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Posted in Human Robots