Tag Archives: Digital

#433770 Will Tech Make Insurance Obsolete in the ...

Posted on October 18, 2018 by Android

We profit from it, we fear it, and we find it impossibly hard to quantify: risk.

While not the sexiest of industries, insurance can be a life-saving protector, pooling everyone’s premiums to safeguard against some of our greatest, most unexpected losses.

One of the most profitable in the world, the insurance industry exceeded $1.2 trillion in annual revenue since 2011 in the US alone.

But risk is becoming predictable. And insurance is getting disrupted fast.

By 2025, we’ll be living in a trillion-sensor economy. And as we enter a world where everything is measured all the time, we’ll start to transition from protecting against damages to preventing them in the first place.

But what happens to health insurance when Big Brother is always watching? Do rates go up when you sneak a cigarette? Do they go down when you eat your vegetables?

And what happens to auto insurance when most cars are autonomous? Or life insurance when the human lifespan doubles?

For that matter, what happens to insurance brokers when blockchain makes them irrelevant?

In this article, I’ll be discussing four key transformations:

Sensors and AI replacing your traditional broker
Blockchain
The ecosystem approach
IoT and insurance connectivity

Let’s dive in.

AI and the Trillion-Sensor Economy
As sensors continue to proliferate across every context—from smart infrastructure to millions of connected home devices to medicine—smart environments will allow us to ask any question, anytime, anywhere.

And as I often explain, once your AI has access to this treasure trove of ubiquitous sensor data in real time, it will be the quality of your questions that make or break your business.

But perhaps the most exciting insurance application of AI’s convergence with sensors is in healthcare. Tremendous advances in genetic screening are empowering us with predictive knowledge about our long-term health risks.

Leading the charge in genome sequencing, Illumina predicts that in a matter of years, decoding the full human genome will drop to $100, taking merely one hour to complete. Other companies are racing to get you sequences faster and cheaper.

Adopting an ecosystem approach, incumbent insurers and insurtech firms will soon be able to collaborate to provide risk-minimizing services in the health sector. Using sensor data and AI-driven personalized recommendations, insurance partnerships could keep consumers healthy, dramatically reducing the cost of healthcare.

Some fear that information asymmetry will allow consumers to learn of their health risks and leave insurers in the dark. However, both parties could benefit if insurers become part of the screening process.

A remarkable example of this is Gilad Meiri’s company, Neura AI. Aiming to predict health patterns, Neura has developed machine learning algorithms that analyze data from all of a user’s connected devices (sometimes from up to 54 apps!).

Neura predicts a user’s behavior and draws staggering insights about consumers’ health risks. Meiri soon began selling his personal risk assessment tool to insurers, who could then help insured customers mitigate long-term health risks.

But artificial intelligence will impact far more than just health insurance.

In October of 2016, a claim was submitted to Lemonade, the world’s first peer-to-peer insurance company. Rather than being processed by a human, every step in this claim resolution chain—from initial triage through fraud mitigation through final payment—was handled by an AI.

This transaction marks the first time an AI has processed an insurance claim. And it won’t be the last. A traditional human-processed claim takes 40 days to pay out. In Lemonade’s case, payment was transferred within three seconds.

However, Lemonade’s achievement only marks a starting point. Over the course of the next decade, nearly every facet of the insurance industry will undergo a similarly massive transformation.

New business models like peer-to-peer insurance are replacing traditional brokerage relationships, while AI and blockchain pairings significantly reduce the layers of bureaucracy required (with each layer getting a cut) for traditional insurance.

Consider Juniper, a startup that scrapes social media to build your risk assessment, subsequently asking you 12 questions via an iPhone app. Geared with advanced analytics, the platform can generate a million-dollar life insurance policy, approved in less than five minutes.

But what’s keeping all your data from unwanted hands?

Blockchain Building Trust
Current distrust in centralized financial services has led to staggering rates of underinsurance. Add to this fear of poor data and privacy protection, particularly in the wake of 2017’s widespread cybercriminal hacks.

Enabling secure storage and transfer of personal data, blockchain holds remarkable promise against the fraudulent activity that often plagues insurance firms.

The centralized model of insurance companies and other organizations is becoming redundant. Developing blockchain-based solutions for capital markets, Symbiont develops smart contracts to execute payments with little to no human involvement.

But distributed ledger technology (DLT) is enabling far more than just smart contracts.

Also targeting insurance is Tradle, leveraging blockchain for its proclaimed goal of “building a trust provisioning network.” Built around “know-your-customer” (KYC) data, Tradle aims to verify KYC data so that it can be securely forwarded to other firms without any further verification.

By requiring a certain number of parties to reuse pre-verified data, the platform makes your data much less vulnerable to hacking and allows you to keep it on a personal device. Only its verification—let’s say of a transaction or medical exam—is registered in the blockchain.

As insurance data grow increasingly decentralized, key insurance players will experience more and more pressure to adopt an ecosystem approach.

The Ecosystem Approach
Just as exponential technologies converge to provide new services, exponential businesses must combine the strengths of different sectors to expand traditional product lines.

By partnering with platform-based insurtech firms, forward-thinking insurers will no longer serve only as reactive policy-providers, but provide risk-mitigating services as well.

Especially as digital technologies demonetize security services—think autonomous vehicles—insurers must create new value chains and span more product categories.

For instance, France’s multinational AXA recently partnered with Alibaba and Ant Financial Services to sell a varied range of insurance products on Alibaba’s global e-commerce platform at the click of a button.

Building another ecosystem, Alibaba has also collaborated with Ping An Insurance and Tencent to create ZhongAn Online Property and Casualty Insurance—China’s first internet-only insurer, offering over 300 products. Now with a multibillion-dollar valuation, Zhong An has generated about half its business from selling shipping return insurance to Alibaba consumers.

But it doesn’t stop there. Insurers that participate in digital ecosystems can now sell risk-mitigating services that prevent damage before it occurs.

Imagine a corporate manufacturer whose sensors collect data on environmental factors affecting crop yield in an agricultural community. With the backing of investors and advanced risk analytics, such a manufacturer could sell crop insurance to farmers. By implementing an automated, AI-driven UI, they could automatically make payments when sensors detect weather damage to crops.

Now let’s apply this concept to your house, your car, your health insurance.

What’s stopping insurers from partnering with third-party IoT platforms to predict fires, collisions, chronic heart disease—and then empowering the consumer with preventive services?

This brings us to the powerful field of IoT.

Internet of Things and Insurance Connectivity
Leap ahead a few years. With a centralized hub like Echo, your smart home protects itself with a network of sensors. While gone, you’ve left on a gas burner and your internet-connected stove notifies you via a home app.

Better yet, home sensors monitoring heat and humidity levels run this data through an AI, which then remotely controls heating, humidity levels, and other connected devices based on historical data patterns and fire risk factors.

Several firms are already working toward this reality.

AXA plans to one day cooperate with a centralized home hub whereby remote monitoring will collect data for future analysis and detect abnormalities.

With remote monitoring and app-centralized control for users, MonAXA is aimed at customizing insurance bundles. These would reflect exact security features embedded in smart homes.

Wouldn’t you prefer not to have to rely on insurance after a burglary? With digital ecosystems, insurers may soon prevent break-ins from the start.

By gathering sensor data from third parties on neighborhood conditions, historical theft data, suspicious activity and other risk factors, an insurtech firm might automatically put your smart home on high alert, activating alarms and specialized locks in advance of an attack.

Insurance policy premiums are predicted to vastly reduce with lessened likelihood of insured losses. But insurers moving into preventive insurtech will likely turn a profit from other areas of their business. PricewaterhouseCoopers predicts that the connected home market will reach $149 billion USD by 2020.

Let’s look at car insurance.

Car insurance premiums are currently calculated according to the driver and traits of the car. But as more autonomous vehicles take to the roads, not only does liability shift to manufacturers and software engineers, but the risk of collision falls dramatically.

But let’s take this a step further.

In a future of autonomous cars, you will no longer own your car, instead subscribing to Transport as a Service (TaaS) and giving up the purchase of automotive insurance altogether.

This paradigm shift has already begun with Waymo, which automatically provides passengers with insurance every time they step into a Waymo vehicle.

And with the rise of smart traffic systems, sensor-embedded roads, and skyrocketing autonomous vehicle technology, the risks involved in transit only continue to plummet.

Final Thoughts
Insurtech firms are hitting the market fast. IoT, autonomous vehicles and genetic screening are rapidly making us invulnerable to risk. And AI-driven services are quickly pushing conventional insurers out of the market.

By 2024, roll-out of 5G on the ground, as well as OneWeb and Starlink in orbit are bringing 4.2 billion new consumers to the web—most of whom will need insurance. Yet, because of the changes afoot in the industry, none of them will buy policies from a human broker.

While today’s largest insurance companies continue to ignore this fact at their peril (and this segment of the market), thousands of entrepreneurs see it more clearly: as one of the largest opportunities ahead.

Join Me
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Posted in Human Robots

#433748 Could Tech Make Government As We Know It ...

Posted on October 12, 2018 by Android

Governments are one of the last strongholds of an undigitized, linear sector of humanity, and they are falling behind fast. Apart from their struggle to keep up with private sector digitization, federal governments are in a crisis of trust.

At almost a 60-year low, only 18 percent of Americans reported that they could trust their government “always” or “most of the time” in a recent Pew survey. And the US is not alone. The Edelman Trust Barometer revealed last year that 41 percent of the world population distrust their nations’ governments.

In many cases, the private sector—particularly tech—is driving greater progress in regulation-targeted issues like climate change than state leaders. And as decentralized systems, digital disruption, and private sector leadership take the world by storm, traditional forms of government are beginning to fear irrelevance. However, the fight for exponential governance is not a lost battle.

Early visionaries like Estonia and the UAE are leading the way in digital governance, empowered by a host of converging technologies.

In this article, we will cover three key trends:

Digital governance divorced from land
AI-driven service delivery and regulation
Blockchain-enforced transparency

Let’s dive in.

Governments Going Digital
States and their governments have forever been tied to physical territories, and public services are often delivered through brick-and-mortar institutions. Yet public sector infrastructure and services will soon be hosted on servers, detached from land and physical form.

Enter e-Estonia. Perhaps the least expected on a list of innovative nations, this former Soviet Republic-turned digital society is ushering in an age of technological statecraft.

Hosting every digitizable government function on the cloud, Estonia could run its government almost entirely on a server. Starting in the 1990s, Estonia’s government has covered the nation with ultra-high-speed data connectivity, laying down tremendous amounts of fiber optic cable. By 2007, citizens could vote from their living rooms.

With digitized law, Estonia signs policies into effect using cryptographically secure digital signatures, and every stage of the legislative process is available to citizens online.

Citizens’ healthcare registry is run on the blockchain, allowing patients to own and access their own health data from anywhere in the world—X-rays, digital prescriptions, medical case notes—all the while tracking who has access.

Today, most banks have closed their offices, as 99 percent of banking transactions occur online (with 67 percent of citizens regularly using cryptographically secured e-IDs). And by 2020, e-tax will be entirely automated with Estonia’s new e-Tax and Customs Board portal, allowing companies and tax authority to exchange data automatically. And i-Voting, civil courts, land registries, banking, taxes, and countless e-facilities allow citizens to access almost any government service with an electronic ID and personal PIN online.

But perhaps Estonia’s most revolutionary breakthrough is its recently introduced e-residency. With over 30,000 e-residents, Estonia issues electronic IDs to global residents anywhere in the world. While e-residency doesn’t grant territorial rights, over 5,000 e-residents have already established companies within Estonia’s jurisdiction.

After registering companies online, entrepreneurs pay automated taxes—calculated in minutes and transmitted to the Estonian government with unprecedented ease.

The implications of e-residency and digital governance are huge. As with any software, open-source code for digital governance could be copied perfectly at almost zero cost, lowering the barrier to entry for any group or movement seeking statehood.

We may soon see the rise of competitive governing ecosystems, each testing new infrastructure and public e-services to compete with mainstream governments for taxpaying citizens.

And what better to accelerate digital governance than AI?

Legal Compliance Through AI
Just last year, the UAE became the first nation to appoint a State Minister for AI (actually a friend of mine, H.E. Omar Al Olama), aiming to digitize government services and halve annual costs. Among multiple sector initiatives, the UAE hopes to deploy robotic cops by 2030.

Meanwhile, the U.K. now has a Select Committee on Artificial Intelligence, and just last month, world leaders convened at the World Government Summit to discuss guidelines for AI’s global regulation.

As AI infuses government services, emerging applications have caught my eye:

Smart Borders and Checkpoints

With biometrics and facial recognition, traditional checkpoints will soon be a thing of the past. Cubic Transportation Systems—the company behind London’s ticketless public transit—is currently developing facial recognition for automated transport barriers. Digital security company Gemalto predicts that biometric systems will soon cross-reference individual faces with passport databases at security checkpoints, and China has already begun to test this at scale. While the Alibaba Ant Financial affiliate’s “Smile to Pay” feature allows users to authenticate digital payments with their faces, nationally overseen facial recognition technologies allow passengers to board planes, employees to enter office spaces, and students to access university halls. With biometric-geared surveillance at national borders, supply chains and international travelers could be tracked automatically, and granted or denied access according to biometrics and cross-referenced databases.

Policing and Security

Leveraging predictive analytics, China is also working to integrate security footage into a national surveillance and data-sharing system. By merging citizen data in its “Police Cloud”—including everything from criminal and medical records, transaction data, travel records and social media—it may soon be able to spot suspects and predict crime in advance. But China is not alone. During London’s Notting Hill Carnival this year, the Metropolitan Police used facial recognition cross-referenced with crime data to pre-identify and track likely offenders.

Smart Courts

AI may soon be reaching legal trials as well. UCL computer scientists have developed software capable of predicting courtroom outcomes based on data patterns with unprecedented accuracy. Assessing risk of flight, the National Bureau of Economic Research now uses an algorithm leveraging data from hundreds of thousands of NYC cases to recommend whether defendants should be granted bail. But while AI allows for streamlined governance, the public sector’s power to misuse our data is a valid concern and issues with bias as a result of historical data still remain. As tons of new information is generated about our every move, how do we keep governments accountable?

Enter the blockchain.

Transparent Governance and Accountability
Without doubt, alongside AI, government’s greatest disruptor is the newly-minted blockchain. Relying on a decentralized web of nodes, blockchain can securely verify transactions, signatures, and other information. This makes it essentially impossible for hackers, companies, officials, or even governments to falsify information on the blockchain.

As you’d expect, many government elites are therefore slow to adopt the technology, fearing enforced accountability. But blockchain’s benefits to government may be too great to ignore.

First, blockchain will be a boon for regulatory compliance.

As transactions on a blockchain are irreversible and transparent, uploaded sensor data can’t be corrupted. This means middlemen have no way of falsifying information to shirk regulation, and governments eliminate the need to enforce charges after the fact.

Apply this to carbon pricing, for instance, and emission sensors could fluidly log carbon credits onto a carbon credit blockchain, such as that developed by Ecosphere+. As carbon values are added to the price of everyday products or to corporations’ automated taxes, compliance and transparency would soon be digitally embedded.

Blockchain could also bolster government efforts in cybersecurity. As supercities and nation-states build IoT-connected traffic systems, surveillance networks, and sensor-tracked supply chain management, blockchain is critical in protecting connected devices from cyberattack.

But blockchain will inevitably hold governments accountable as well. By automating and tracking high-risk transactions, blockchain may soon eliminate fraud in cash transfers, public contracts and aid funds. Already, the UN World Food Program has piloted blockchain to manage cash-based transfers and aid flows to Syrian refugees in Jordan.

Blockchain-enabled “smart contracts” could automate exchange of real assets according to publicly visible, pre-programmed conditions, disrupting the $9.5 trillion market of public-sector contracts and public investment projects.

Eliminating leakages and increasing transparency, a distributed ledger has the potential to save trillions.

Future Implications
It is truly difficult to experiment with new forms of government. It’s not like there are new countries waiting to be discovered where we can begin fresh. And with entrenched bureaucracies and dominant industrial players, changing an existing nation’s form of government is extremely difficult and usually only happens during times of crisis or outright revolution.

Perhaps we will develop and explore new forms of government in the virtual world (to be explored during a future blog), or perhaps Sea Steading will allow us to physically build new island nations. And ultimately, as we move off the earth to Mars and space colonies, we will have yet another chance to start fresh.

But, without question, 90 percent or more of today’s political processes herald back to a day before technology, and it shows in terms of speed and efficiency.

Ultimately, there will be a shift to digital governments enabled with blockchain’s transparency, and we will redefine the relationship between citizens and the public sector.

One day I hope i-voting will allow anyone anywhere to participate in policy, and cloud-based governments will start to compete in e-services. As four billion new minds come online over the next several years, people may soon have the opportunity to choose their preferred government and citizenship digitally, independent of birthplace.

In 50 years, what will our governments look like? Will we have an interplanetary order, or a multitude of publicly-run ecosystems? Will cyber-ocracies rule our physical worlds with machine intelligence, or will blockchains allow for hive mind-like democracy?

The possibilities are endless, and only we can shape them.

Join Me
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Posted in Human Robots

#433696 3 Big Ways Tech Is Disrupting Global ...

Posted on October 1, 2018 by Android

Disruptive business models are often powered by alternative financing. In Part 1 of this series, I discussed how mobile is redefining money and banking and shared some of the dramatic transformations in the global remittance infrastructure.

In this article, we’ll discuss:

Peer-to-peer lending
AI financial advisors and robo traders
Seamless Transactions

Let’s dive right back in…

Decentralized Lending = Democratized Access to Finances
Peer-to-peer (P2P) lending is an age-old practice, traditionally with high risk and extreme locality. Now, the P2P funding model is being digitized and delocalized, bringing lending online and across borders.

Zopa, the first official crowdlending platform, arrived in the United Kingdom in 2004. Since then, the consumer crowdlending platform has facilitated lending of over 3 billion euros ($3.5 billion USD) of loans.

Person-to-business crowdlending took off, again in the U.K., in 2005 with Funding Circle, now with over 5 billion euros (~5.8 billion USD) of capital loaned to small businesses around the world.

Crowdlending next took off in the US in 2006, with platforms like Prosper and Lending Club. The US crowdlending industry has boomed to $21 billion in loans, across 515,000 loans.

Let’s take a step back… to a time before banks, when lending took place between trusted neighbors in small villages across the globe. Lending started as peer-to-peer transactions.

As villages turned into towns, towns turned into cities, and cities turned into sprawling metropolises, neighborly trust and the ability to communicate across urban landscapes broke down. That’s where banks and other financial institutions came into play—to add trust back into the lending equation.

With crowdlending, we are evidently returning to this pre-centralized-banking model of loans, and moving away from cumbersome intermediaries (e.g. high fees, regulations, and extra complexity).

Fueled by the permeation of the internet, P2P lending took on a new form as ‘crowdlending’ in the early 2000s. Now, as blockchain and artificial intelligence arrive on the digital scene, P2P lending platforms are being overhauled with transparency, accountability, reliability, and immutability.

Artificial Intelligence Micro Lending & Credit Scores
We are beginning to augment our quantitative decision-making with neural networks processing borrowers’ financial data to determine their financial ‘fate’ (or, as some call it, your credit score). Companies like Smart Finance Group (backed by Kai Fu Lee and Sinovation Ventures) are using artificial intelligence to minimize default rates for tens of millions of microloans.

Smart Finance is fueled by users’ personal data, particularly smartphone data and usage behavior. Users are required to give Smart Finance access to their smartphone data, so that Smart Finance’s artificial intelligence engine can generate a credit score from the personal information.

The benefits of this AI-powered lending platform do not stop at increased loan payback rates; there’s a massive speed increase as well. Smart Finance loans are frequently approved in under eight seconds. As we’ve seen with other artificial intelligence disruptions, data is the new gold.

Digitizing access to P2P loans paves the way for billions of people currently without access to banking to leapfrog the centralized banking system, just as Africa bypassed landline phones and went straight to mobile. Leapfrogging centralized banking and the credit system is exactly what Smart Finance has done for hundreds of millions of people in China.

Blockchain-Backed Crowdlending
As artificial intelligence accesses even the most mundane mobile browsing data to assign credit scores, blockchain technologies, particularly immutable ledgers and smart contracts, are massive disruptors to the archaic banking system, building additional trust and transparency on top of current P2P lending models.

Immutable ledgers provide the necessary transparency for accurate credit and loan defaulting history. Smart contracts executed on these immutable ledgers bring the critical ability to digitally replace cumbersome, expensive third parties (like banks), allowing individual borrowers or businesses to directly connect with willing lenders.

Two of the leading blockchain platforms for P2P lending are ETHLend and SALT Lending.

ETHLend is an Ethereum-based decentralized application aiming to bring transparency and trust to P2P lending through Ethereum network smart contracts.

Secure Automated Lending Technology (SALT) allows cryptocurrency asset holders to use their digital assets as collateral for cash loans, without the need to liquidate their holdings, giving rise to a digital-asset-backed lending market.

While blockchain poses a threat to many of the large, centralized banking institutions, some are taking advantage of the new technology to optimize their internal lending, credit scoring, and collateral operations.

In March 2018, ING and Credit Suisse successfully exchanged 25 million euros using HQLA-X, a blockchain-based collateral lending platform.

HQLA-X runs on the R3 Corda blockchain, a platform designed specifically to help heritage financial and commerce institutions migrate away from their inefficient legacy financial infrastructure.

Blockchain and tokenization are going through their own fintech and regulation shakeup right now. In a future blog, I’ll discuss the various efforts to more readily assure smart contracts, and the disruptive business model of security tokens and the US Securities and Exchange Commission.

Parallels to the Global Abundance of Capital
The abundance of capital being created by the advent of P2P loans closely relates to the unprecedented global abundance of capital.

Initial coin offerings (ICOs) and crowdfunding are taking a strong stand in disrupting the $164 billion venture capital market. The total amount invested in ICOs has risen from $6.6 billion in 2017 to $7.15 billion USD in the first half of 2018. Crowdfunding helped projects raise more than $34 billion in 2017, with experts projecting that global crowdfunding investments will reach $300 billion by 2025.

In the last year alone, using ICOs, over a dozen projects have raised hundreds of millions of dollars in mere hours. Take Filecoin, for example, which raised $257 million  in only 30 days; its first $135 million was raised in the first hour. Similarly, the Dragon Coin project (which itself is revolutionizing remittance in high-stakes casinos around the world) raised $320 million in its 30-day public ICO.

Some Important Takeaways…

Technology-backed fundraising and financial services are disrupting the world’s largest financial institutions. Anyone, anywhere, at anytime will be able to access the capital they need to pursue their idea.

The speed at which we can go from “I’ve got an idea” to “I run a billion-dollar company” is moving faster than ever.

Following Ray Kurzweil’s Law of Accelerating Returns, the rapid decrease in time to access capital is intimately linked (and greatly dependent on) a financial infrastructure (technology, institutions, platforms, and policies) that can adapt and evolve just as rapidly.

This new abundance of capital requires financial decision-making with ever-higher market prediction precision. That’s exactly where artificial intelligence is already playing a massive role.

Artificial Intelligence, Robo Traders, and Financial Advisors
On May 6, 2010, the Dow Jones Industrial Average suddenly collapsed by 998.5 points (equal to 8 percent, or $1 trillion). The crash lasted over 35 minutes and is now known as the ‘Flash Crash’. While no one knows the specific reason for this 2010 stock market anomaly, experts widely agree that the Flash Crash had to do with algorithmic trading.

With the ability to have instant, trillion-dollar market impacts, algorithmic trading and artificial intelligence are undoubtedly ingrained in how financial markets operate.

In 2017, CNBC.com estimated that 90 percent of daily trading volume in stock trading is done by machine algorithms, and only 10 percent is carried out directly by humans.

Artificial intelligence and financial management algorithms are not only available to top Wall Street players.

Robo-advisor financial management apps, like Wealthfront and Betterment, are rapidly permeating the global market. Wealthfront currently has $9.5 billion in assets under management, and Betterment has $10 billion.

Artificial intelligent financial agents are already helping financial institutions protect your money and fight fraud. A prime application for machine learning is in detecting anomalies in your spending and transaction habits, and flagging potentially fraudulent transactions.

As artificial intelligence continues to exponentially increase in power and capabilities, increasingly powerful trading and financial management bots will come online, finding massive new and previously lost streams of wealth.

How else are artificial intelligence and automation transforming finance?

Disruptive Remittance and Seamless Transactions
When was the last time you paid in cash at a toll booth? How about for a taxi ride?

EZ-Pass, the electronic tolling company implemented extensively on the East Coast, has done wonders to reduce traffic congestion and increase traffic flow.

Driving down I-95 on the East Coast of the United States, drivers rarely notice their financial transaction with the state’s tolling agencies. The transactions are seamless.

The Uber app enables me to travel without my wallet. I can forget about payment on my trip, free up my mental bandwidth and time for higher-priority tasks. The entire process is digitized and, by extension, automated and integrated into Uber’s platform (Note: This incredible convenience many times causes me to accidentally walk out of taxi cabs without paying!).

In January 2018, we saw the success of the first cutting-edge, AI-powered Amazon Go store open in Seattle, Washington. The store marked a new era in remittance and transactions. Gone are the days of carrying credit cards and cash, and gone are the cash registers. And now, on the heals of these early ‘beta-tests’, Amazon is considering opening as many as 3,000 of these cashierless stores by 2023.

Amazon Go stores use AI algorithms that watch various video feeds (from advanced cameras) throughout the store to identify who picks up groceries, exactly what products they select, and how much to charge that person when they walk out of the store. It’s a grab and go experience.

Let’s extrapolate the notion of seamless, integrated payment systems from Amazon Go and Uber’s removal of post-ride payment to the rest of our day-to-day experience.

Imagine this near future:

As you near the front door of your home, your AI assistant summons a self-driving Uber that takes you to the Hyperloop station (after all, you work in L.A. but live in San Francisco).

At the station, you board your pod, without noticing that your ticket purchase was settled via a wireless payment checkpoint.

After work, you stop at the Amazon Go and pick up dinner. Your virtual AI assistant passes your Amazon account information to the store’s payment checkpoint, as the store’s cameras and sensors track you, your cart and charge you auto-magically.

At home, unbeknownst to you, your AI has already restocked your fridge and pantry with whatever items you failed to pick up at the Amazon Go.

Once we remove the actively transacting aspect of finance, what else becomes possible?

Top Conclusions
Extraordinary transformations are happening in the finance world. We’ve only scratched the surface of the fintech revolution. All of these transformative financial technologies require high-fidelity assurance, robust insurance, and a mechanism for storing value.

I’ll dive into each of these other facets of financial services in future articles.

For now, thanks to coming global communication networks being deployed on 5G, Alphabet’s LUNE, SpaceX’s Starlink and OneWeb, by 2024, nearly all 8 billion people on Earth will be online.

Once connected, these new minds, entrepreneurs, and customers need access to money and financial services to meaningfully participate in the world economy.

By connecting lenders and borrowers around the globe, decentralized lending drives down global interest rates, increases global financial market participation, and enables economic opportunity to the billions of people who are about to come online.

We’re living in the most abundant time in human history, and fintech is just getting started.

Join Me
Abundance Digital Online Community: I have created a Digital/Online community of bold, abundance-minded entrepreneurs called Abundance Digital. This is my ‘onramp’ for exponential entrepreneurs – those who want to get involved and play at a higher level. Click here to learn more.

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Posted in Human Robots

#433668 A Decade of Commercial Space ...

Posted on September 28, 2018 by Android

In many industries, a decade is barely enough time to cause dramatic change unless something disruptive comes along—a new technology, business model, or service design. The space industry has recently been enjoying all three.

But 10 years ago, none of those innovations were guaranteed. In fact, on Sept. 28, 2008, an entire company watched and hoped as their flagship product attempted a final launch after three failures. With cash running low, this was the last shot. Over 21,000 kilograms of kerosene and liquid oxygen ignited and powered two booster stages off the launchpad.

This first official picture of the Soviet satellite Sputnik I was issued in Moscow Oct. 9, 1957. The satellite measured 1 foot, 11 inches and weighed 184 pounds. The Space Age began as the Soviet Union launched Sputnik, the first man-made satellite, into orbit, on Oct. 4, 1957.AP Photo/TASS
When that Falcon 1 rocket successfully reached orbit and the company secured a subsequent contract with NASA, SpaceX had survived its ‘startup dip’. That milestone, the first privately developed liquid-fueled rocket to reach orbit, ignited a new space industry that is changing our world, on this planet and beyond. What has happened in the intervening years, and what does it mean going forward?

While scientists are busy developing new technologies that address the countless technical problems of space, there is another segment of researchers, including myself, studying the business angle and the operations issues facing this new industry. In a recent paper, my colleague Christopher Tang and I investigate the questions firms need to answer in order to create a sustainable space industry and make it possible for humans to establish extraterrestrial bases, mine asteroids and extend space travel—all while governments play an increasingly smaller role in funding space enterprises. We believe these business solutions may hold the less-glamorous key to unlocking the galaxy.

The New Global Space Industry
When the Soviet Union launched their Sputnik program, putting a satellite in orbit in 1957, they kicked off a race to space fueled by international competition and Cold War fears. The Soviet Union and the United States played the primary roles, stringing together a series of “firsts” for the record books. The first chapter of the space race culminated with Neil Armstrong and Buzz Aldrin’s historic Apollo 11 moon landing which required massive public investment, on the order of US$25.4 billion, almost $200 billion in today’s dollars.

Competition characterized this early portion of space history. Eventually, that evolved into collaboration, with the International Space Station being a stellar example, as governments worked toward shared goals. Now, we’ve entered a new phase—openness—with private, commercial companies leading the way.

The industry for spacecraft and satellite launches is becoming more commercialized, due, in part, to shrinking government budgets. According to a report from the investment firm Space Angels, a record 120 venture capital firms invested over $3.9 billion in private space enterprises last year. The space industry is also becoming global, no longer dominated by the Cold War rivals, the United States and USSR.

In 2018 to date, there have been 72 orbital launches, an average of two per week, from launch pads in China, Russia, India, Japan, French Guinea, New Zealand, and the US.

The uptick in orbital launches of actual rockets as well as spacecraft launches, which includes satellites and probes launched from space, coincides with this openness over the past decade.

More governments, firms and even amateurs engage in various spacecraft launches than ever before. With more entities involved, innovation has flourished. As Roberson notes in Digital Trends, “Private, commercial spaceflight. Even lunar exploration, mining, and colonization—it’s suddenly all on the table, making the race for space today more vital than it has felt in years.”

Worldwide launches into space. Orbital launches include manned and unmanned spaceships launched into orbital flight from Earth. Spacecraft launches include all vehicles such as spaceships, satellites and probes launched from Earth or space. Wooten, J. and C. Tang (2018) Operations in space, Decision Sciences; Space Launch Report (Kyle 2017); Spacecraft Encyclopedia (Lafleur 2017), CC BY-ND

One can see this vitality plainly in the news. On Sept. 21, Japan announced that two of its unmanned rovers, dubbed Minerva-II-1, had landed on a small, distant asteroid. For perspective, the scale of this landing is similar to hitting a 6-centimeter target from 20,000 kilometers away. And earlier this year, people around the world watched in awe as SpaceX’s Falcon Heavy rocket successfully launched and, more impressively, returned its two boosters to a landing pad in a synchronized ballet of epic proportions.

Challenges and Opportunities
Amidst the growth of capital, firms, and knowledge, both researchers and practitioners must figure out how entities should manage their daily operations, organize their supply chain, and develop sustainable operations in space. This is complicated by the hurdles space poses: distance, gravity, inhospitable environments, and information scarcity.

One of the greatest challenges involves actually getting the things people want in space, into space. Manufacturing everything on Earth and then launching it with rockets is expensive and restrictive. A company called Made In Space is taking a different approach by maintaining an additive manufacturing facility on the International Space Station and 3D printing right in space. Tools, spare parts, and medical devices for the crew can all be created on demand. The benefits include more flexibility and better inventory management on the space station. In addition, certain products can be produced better in space than on Earth, such as pure optical fiber.

How should companies determine the value of manufacturing in space? Where should capacity be built and how should it be scaled up? The figure below breaks up the origin and destination of goods between Earth and space and arranges products into quadrants. Humans have mastered the lower left quadrant, made on Earth—for use on Earth. Moving clockwise from there, each quadrant introduces new challenges, for which we have less and less expertise.

A framework of Earth-space operations. Wooten, J. and C. Tang (2018) Operations in Space, Decision Sciences, CC BY-ND
I first became interested in this particular problem as I listened to a panel of robotics experts discuss building a colony on Mars (in our third quadrant). You can’t build the structures on Earth and easily send them to Mars, so you must manufacture there. But putting human builders in that extreme environment is equally problematic. Essentially, an entirely new mode of production using robots and automation in an advance envoy may be required.

Resources in Space
You might wonder where one gets the materials for manufacturing in space, but there is actually an abundance of resources: Metals for manufacturing can be found within asteroids, water for rocket fuel is frozen as ice on planets and moons, and rare elements like helium-3 for energy are embedded in the crust of the moon. If we brought that particular isotope back to Earth, we could eliminate our dependence on fossil fuels.

As demonstrated by the recent Minerva-II-1 asteroid landing, people are acquiring the technical know-how to locate and navigate to these materials. But extraction and transport are open questions.

How do these cases change the economics in the space industry? Already, companies like Planetary Resources, Moon Express, Deep Space Industries, and Asterank are organizing to address these opportunities. And scholars are beginning to outline how to navigate questions of property rights, exploitation and partnerships.

Threats From Space Junk
A computer-generated image of objects in Earth orbit that are currently being tracked. Approximately 95 percent of the objects in this illustration are orbital debris – not functional satellites. The dots represent the current location of each item. The orbital debris dots are scaled according to the image size of the graphic to optimize their visibility and are not scaled to Earth. NASA
The movie “Gravity” opens with a Russian satellite exploding, which sets off a chain reaction of destruction thanks to debris hitting a space shuttle, the Hubble telescope, and part of the International Space Station. The sequence, while not perfectly plausible as written, is a very real phenomenon. In fact, in 2013, a Russian satellite disintegrated when it was hit with fragments from a Chinese satellite that exploded in 2007. Known as the Kessler effect, the danger from the 500,000-plus pieces of space debris has already gotten some attention in public policy circles. How should one prevent, reduce or mitigate this risk? Quantifying the environmental impact of the space industry and addressing sustainable operations is still to come.

NASA scientist Mark Matney is seen through a fist-sized hole in a 3-inch thick piece of aluminum at Johnson Space Center’s orbital debris program lab. The hole was created by a thumb-size piece of material hitting the metal at very high speed simulating possible damage from space junk. AP Photo/Pat Sullivan
What’s Next?
It’s true that space is becoming just another place to do business. There are companies that will handle the logistics of getting your destined-for-space module on board a rocket; there are companies that will fly those rockets to the International Space Station; and there are others that can make a replacement part once there.

What comes next? In one sense, it’s anybody’s guess, but all signs point to this new industry forging ahead. A new breakthrough could alter the speed, but the course seems set: exploring farther away from home, whether that’s the moon, asteroids, or Mars. It’s hard to believe that 10 years ago, SpaceX launches were yet to be successful. Today, a vibrant private sector consists of scores of companies working on everything from commercial spacecraft and rocket propulsion to space mining and food production. The next step is working to solidify the business practices and mature the industry.

Standing in a large hall at the University of Pittsburgh as part of the White House Frontiers Conference, I see the future. Wrapped around my head are state-of-the-art virtual reality goggles. I’m looking at the surface of Mars. Every detail is immediate and crisp. This is not just a video game or an aimless exercise. The scientific community has poured resources into such efforts because exploration is preceded by information. And who knows, maybe 10 years from now, someone will be standing on the actual surface of Mars.

Image Credit: SpaceX

Joel Wooten, Assistant Professor of Management Science, University of South Carolina

This article is republished from The Conversation under a Creative Commons license. Read the original article. Continue reading →

Posted in Human Robots

#433400 A Model for the Future of Education, and ...

Posted on September 12, 2018 by Android

As kids worldwide head back to school, I’d like to share my thoughts on the future of education.

Bottom line, how we educate our kids needs to radically change given the massive potential of exponential tech (e.g. artificial intelligence and virtual reality).

Without question, the number one driver for education is inspiration. As such, if you have a kid age 8–18, you’ll want to get your hands on an incredibly inspirational novel written by my dear friend Ray Kurzweil called Danielle: Chronicles of a Superheroine.

Danielle offers boys and girls a role model of a young woman who uses smart technologies and super-intelligence to partner with her friends to solve some of the world’s greatest challenges. It’s perfect to inspire anyone to pursue their moonshot.

Without further ado, let’s dive into the future of educating kids, and a summary of my white paper thoughts….

Just last year, edtech (education technology) investments surpassed a record high of 9.5 billion USD—up 30 percent from the year before.

Already valued at over half a billion USD, the AI in education market is set to surpass 6 billion USD by 2024.

And we’re now seeing countless new players enter the classroom, from a Soul Machines AI teacher specializing in energy use and sustainability to smart “lab schools” with personalized curricula.

As my two boys enter 1st grade, I continue asking myself, given the fact that most elementary schools haven’t changed in many decades (perhaps a century), what do I want my kids to learn? How do I think about elementary school during an exponential era?

This post covers five subjects related to elementary school education:

Five Issues with Today’s Elementary Schools
Five Guiding Principles for Future Education
An Elementary School Curriculum for the Future
Exponential Technologies in our Classroom
Mindsets for the 21st Century

Excuse the length of this post, but if you have kids, the details might be meaningful. If you don’t, then next week’s post will return to normal length and another fun subject.

Also, if you’d like to see my detailed education “white paper,” you can view or download it here.

Let’s dive in…

Five Issues With Today’s Elementary Schools
There are probably lots of issues with today’s traditional elementary schools, but I’ll just choose a few that bother me most.

Grading: In the traditional education system, you start at an “A,” and every time you get something wrong, your score gets lower and lower. At best it’s demotivating, and at worst it has nothing to do with the world you occupy as an adult. In the gaming world (e.g. Angry Birds), it’s just the opposite. You start with zero and every time you come up with something right, your score gets higher and higher.
Sage on the Stage: Most classrooms have a teacher up in front of class lecturing to a classroom of students, half of whom are bored and half of whom are lost. The one-teacher-fits-all model comes from an era of scarcity where great teachers and schools were rare.
Relevance: When I think back to elementary and secondary school, I realize how much of what I learned was never actually useful later in life, and how many of my critical lessons for success I had to pick up on my own (I don’t know about you, but I haven’t ever actually had to factor a polynomial in my adult life).
Imagination, Coloring inside the Lines: Probably of greatest concern to me is the factory-worker, industrial-era origin of today’s schools. Programs are so structured with rote memorization that it squashes the originality from most children. I’m reminded that “the day before something is truly a breakthrough, it’s a crazy idea.” Where do we pursue crazy ideas in our schools? Where do we foster imagination?
Boring: If learning in school is a chore, boring, or emotionless, then the most important driver of human learning, passion, is disengaged. Having our children memorize facts and figures, sit passively in class, and take mundane standardized tests completely defeats the purpose.

An average of 7,200 students drop out of high school each day, totaling 1.3 million each year. This means only 69 percent of students who start high school finish four years later. And over 50 percent of these high school dropouts name boredom as the number one reason they left.

Five Guiding Principles for Future Education
I imagine a relatively near-term future in which robotics and artificial intelligence will allow any of us, from ages 8 to 108, to easily and quickly find answers, create products, or accomplish tasks, all simply by expressing our desires.

From ‘mind to manufactured in moments.’ In short, we’ll be able to do and create almost whatever we want.

In this future, what attributes will be most critical for our children to learn to become successful in their adult lives? What’s most important for educating our children today?

For me it’s about passion, curiosity, imagination, critical thinking, and grit.

Passion: You’d be amazed at how many people don’t have a mission in life… A calling… something to jolt them out of bed every morning. The most valuable resource for humanity is the persistent and passionate human mind, so creating a future of passionate kids is so very important. For my 7-year-old boys, I want to support them in finding their passion or purpose… something that is uniquely theirs. In the same way that the Apollo program and Star Trek drove my early love for all things space, and that passion drove me to learn and do.
Curiosity: Curiosity is something innate in kids, yet something lost by most adults during the course of their life. Why? In a world of Google, robots, and AI, raising a kid that is constantly asking questions and running “what if” experiments can be extremely valuable. In an age of machine learning, massive data, and a trillion sensors, it will be the quality of your questions that will be most important.
Imagination: Entrepreneurs and visionaries imagine the world (and the future) they want to live in, and then they create it. Kids happen to be some of the most imaginative humans around… it’s critical that they know how important and liberating imagination can be.
Critical Thinking: In a world flooded with often-conflicting ideas, baseless claims, misleading headlines, negative news, and misinformation, learning the skill of critical thinking helps find the signal in the noise. This principle is perhaps the most difficult to teach kids.
Grit/Persistence: Grit is defined as “passion and perseverance in pursuit of long-term goals,” and it has recently been widely acknowledged as one of the most important predictors of and contributors to success.

Teaching your kids not to give up, to keep trying, and to keep trying new ideas for something that they are truly passionate about achieving is extremely critical. Much of my personal success has come from such stubbornness. I joke that both XPRIZE and the Zero Gravity Corporation were “overnight successes after 10 years of hard work.”

So given those five basic principles, what would an elementary school curriculum look like? Let’s take a look…

An Elementary School Curriculum for the Future
Over the last 30 years, I’ve had the pleasure of starting two universities, International Space University (1987) and Singularity University (2007). My favorite part of co-founding both institutions was designing and implementing the curriculum. Along those lines, the following is my first shot at the type of curriculum I’d love my own boys to be learning.

I’d love your thoughts, I’ll be looking for them here: https://www.surveymonkey.com/r/DDRWZ8R

For the purpose of illustration, I’ll speak about ‘courses’ or ‘modules,’ but in reality these are just elements that would ultimately be woven together throughout the course of K-6 education.

Module 1: Storytelling/Communications

When I think about the skill that has served me best in life, it’s been my ability to present my ideas in the most compelling fashion possible, to get others onboard, and support birth and growth in an innovative direction. In my adult life, as an entrepreneur and a CEO, it’s been my ability to communicate clearly and tell compelling stories that has allowed me to create the future. I don’t think this lesson can start too early in life. So imagine a module, year after year, where our kids learn the art and practice of formulating and pitching their ideas. The best of oration and storytelling. Perhaps children in this class would watch TED presentations, or maybe they’d put together their own TEDx for kids. Ultimately, it’s about practice and getting comfortable with putting yourself and your ideas out there and overcoming any fears of public speaking.

Module 2: Passions

A modern school should help our children find and explore their passion(s). Passion is the greatest gift of self-discovery. It is a source of interest and excitement, and is unique to each child.

The key to finding passion is exposure. Allowing kids to experience as many adventures, careers, and passionate adults as possible. Historically, this was limited by the reality of geography and cost, implemented by having local moms and dads presenting in class about their careers. “Hi, I’m Alan, Billy’s dad, and I’m an accountant. Accountants are people who…”

But in a world of YouTube and virtual reality, the ability for our children to explore 500 different possible careers or passions during their K-6 education becomes not only possible but compelling. I imagine a module where children share their newest passion each month, sharing videos (or VR experiences) and explaining what they love and what they’ve learned.

Module 3: Curiosity & Experimentation

Einstein famously said, “I have no special talent. I am only passionately curious.” Curiosity is innate in children, and many times lost later in life. Arguably, it can be said that curiosity is responsible for all major scientific and technological advances; it’s the desire of an individual to know the truth.

Coupled with curiosity is the process of experimentation and discovery. The process of asking questions, creating and testing a hypothesis, and repeated experimentation until the truth is found. As I’ve studied the most successful entrepreneurs and entrepreneurial companies, from Google and Amazon to Uber, their success is significantly due to their relentless use of experimentation to define their products and services.

Here I imagine a module which instills in children the importance of curiosity and gives them permission to say, “I don’t know, let’s find out.”

Further, a monthly module that teaches children how to design and execute valid and meaningful experiments. Imagine children who learn the skill of asking a question, proposing a hypothesis, designing an experiment, gathering the data, and then reaching a conclusion.

Module 4: Persistence/Grit

Doing anything big, bold, and significant in life is hard work. You can’t just give up when the going gets rough. The mindset of persistence, of grit, is a learned behavior I believe can be taught at an early age, especially when it’s tied to pursuing a child’s passion.

I imagine a curriculum that, each week, studies the career of a great entrepreneur and highlights their story of persistence. It would highlight the individuals and companies that stuck with it, iterated, and ultimately succeeded.

Further, I imagine a module that combines persistence and experimentation in gameplay, such as that found in Dean Kamen’s FIRST LEGO league, where 4th graders (and up) research a real-world problem such as food safety, recycling, energy, and so on, and are challenged to develop a solution. They also must design, build, and program a robot using LEGO MINDSTORMS®, then compete on a tabletop playing field.

Module 5: Technology Exposure

In a world of rapidly accelerating technology, understanding how technologies work, what they do, and their potential for benefiting society is, in my humble opinion, critical to a child’s future. Technology and coding (more on this below) are the new “lingua franca” of tomorrow.

In this module, I imagine teaching (age appropriate) kids through play and demonstration. Giving them an overview of exponential technologies such as computation, sensors, networks, artificial intelligence, digital manufacturing, genetic engineering, augmented/virtual reality, and robotics, to name a few. This module is not about making a child an expert in any technology, it’s more about giving them the language of these new tools, and conceptually an overview of how they might use such a technology in the future. The goal here is to get them excited, give them demonstrations that make the concepts stick, and then to let their imaginations run.

Module 6: Empathy

Empathy, defined as “the ability to understand and share the feelings of another,” has been recognized as one of the most critical skills for our children today. And while there has been much written, and great practices for instilling this at home and in school, today’s new tools accelerate this.

Virtual reality isn’t just about video games anymore. Artists, activists, and journalists now see the technology’s potential to be an empathy engine, one that can shine spotlights on everything from the Ebola epidemic to what it’s like to live in Gaza. And Jeremy Bailenson has been at the vanguard of investigating VR’s power for good.

For more than a decade, Bailenson’s lab at Stanford has been studying how VR can make us better people. Through the power of VR, volunteers at the lab have felt what it is like to be Superman (to see if it makes them more helpful), a cow (to reduce meat consumption), and even a coral (to learn about ocean acidification).

Silly as they might seem, these sorts of VR scenarios could be more effective than the traditional public service ad at making people behave. Afterwards, they waste less paper. They save more money for retirement. They’re nicer to the people around them. And this could have consequences in terms of how we teach and train everyone from cliquey teenagers to high court judges.

Module 7: Ethics/Moral Dilemmas

Related to empathy, and equally important, is the goal of infusing kids with a moral compass. Over a year ago, I toured a special school created by Elon Musk (the Ad Astra school) for his five boys (age 9 to 14). One element that is persistent in that small school of under 40 kids is the conversation about ethics and morals, a conversation manifested by debating real-world scenarios that our kids may one day face.

Here’s an example of the sort of gameplay/roleplay that I heard about at Ad Astra, that might be implemented in a module on morals and ethics. Imagine a small town on a lake, in which the majority of the town is employed by a single factory. But that factory has been polluting the lake and killing all the life. What do you do? It’s posed that shutting down the factory would mean that everyone loses their jobs. On the other hand, keeping the factory open means the lake is destroyed and the lake dies. This kind of regular and routine conversation/gameplay allows the children to see the world in a critically important fashion.

Module 8: The 3R Basics (Reading, wRiting & aRithmetic)

There’s no question that young children entering kindergarten need the basics of reading, writing, and math. The only question is what’s the best way for them to get it? We all grew up in the classic mode of a teacher at the chalkboard, books, and homework at night. But I would argue that such teaching approaches are long outdated, now replaced with apps, gameplay, and the concept of the flip classroom.

Pioneered by high school teachers Jonathan Bergman and Aaron Sams in 2007, the flipped classroom reverses the sequence of events from that of the traditional classroom.

Students view lecture materials, usually in the form of video lectures, as homework prior to coming to class. In-class time is reserved for activities such as interactive discussions or collaborative work, all performed under the guidance of the teacher.

The benefits are clear:

Students can consume lectures at their own pace, viewing the video again and again until they get the concept, or fast-forwarding if the information is obvious.
The teacher is present while students apply new knowledge. Doing the homework into class time gives teachers insight into which concepts, if any, that their students are struggling with and helps them adjust the class accordingly.
The flipped classroom produces tangible results: 71 percent of teachers who flipped their classes noticed improved grades, and 80 percent reported improved student attitudes as a result.

Module 9: Creative Expression & Improvisation

Every single one of us is creative. It’s human nature to be creative… the thing is that we each might have different ways of expressing our creativity.

We must encourage kids to discover and to develop their creative outlets early. In this module, imagine showing kids the many different ways creativity is expressed, from art to engineering to music to math, and then guiding them as they choose the area (or areas) they are most interested in. Critically, teachers (or parents) can then develop unique lessons for each child based on their interests, thanks to open education resources like YouTube and the Khan Academy. If my child is interested in painting and robots, a teacher or AI could scour the web and put together a custom lesson set from videos/articles where the best painters and roboticists in the world share their skills.

Adapting to change is critical for success, especially in our constantly changing world today. Improvisation is a skill that can be learned, and we need to be teaching it early.

In most collegiate “improv” classes, the core of great improvisation is the “Yes, and…” mindset. When acting out a scene, one actor might introduce a new character or idea, completely changing the context of the scene. It’s critical that the other actors in the scene say “Yes, and…” accept the new reality, then add something new of their own.

Imagine playing similar role-play games in elementary schools, where a teacher gives the students a scene/context and constantly changes variables, forcing them to adapt and play.

Module 10: Coding

Computer science opens more doors for students than any other discipline in today’s world. Learning even the basics will help students in virtually any career, from architecture to zoology.

Coding is an important tool for computer science, in the way that arithmetic is a tool for doing mathematics and words are a tool for English. Coding creates software, but computer science is a broad field encompassing deep concepts that go well beyond coding.

Every 21st century student should also have a chance to learn about algorithms, how to make an app, or how the internet works. Computational thinking allows preschoolers to grasp concepts like algorithms, recursion and heuristics. Even if they don’t understand the terms, they’ll learn the basic concepts.

There are more than 500,000 open jobs in computing right now, representing the number one source of new wages in the US, and these jobs are projected to grow at twice the rate of all other jobs.

Coding is fun! Beyond the practical reasons for learning how to code, there’s the fact that creating a game or animation can be really fun for kids.

Module 11: Entrepreneurship & Sales

At its core, entrepreneurship is about identifying a problem (an opportunity), developing a vision on how to solve it, and working with a team to turn that vision into reality. I mentioned Elon’s school, Ad Astra: here, again, entrepreneurship is a core discipline where students create and actually sell products and services to each other and the school community.

You could recreate this basic exercise with a group of kids in lots of fun ways to teach them the basic lessons of entrepreneurship.

Related to entrepreneurship is sales. In my opinion, we need to be teaching sales to every child at an early age. Being able to “sell” an idea (again related to storytelling) has been a critical skill in my career, and it is a competency that many people simply never learned.

The lemonade stand has been a classic, though somewhat meager, lesson in sales from past generations, where a child sits on a street corner and tries to sell homemade lemonade for $0.50 to people passing by. I’d suggest we step the game up and take a more active approach in gamifying sales, and maybe having the classroom create a Kickstarter, Indiegogo or GoFundMe campaign. The experience of creating a product or service and successfully selling it will create an indelible memory and give students the tools to change the world.

Module 12: Language

A little over a year ago, I spent a week in China meeting with parents whose focus on kids’ education is extraordinary. One of the areas I found fascinating is how some of the most advanced parents are teaching their kids new languages: through games. On the tablet, the kids are allowed to play games, but only in French. A child’s desire to win fully engages them and drives their learning rapidly.

Beyond games, there’s virtual reality. We know that full immersion is what it takes to become fluent (at least later in life). A semester abroad in France or Italy, and you’ve got a great handle on the language and the culture. But what about for an eight-year-old?

Imagine a module where for an hour each day, the children spend their time walking around Italy in a VR world, hanging out with AI-driven game characters who teach them, engage them, and share the culture and the language in the most personalized and compelling fashion possible.

Exponential Technologies for Our Classrooms
If you’ve attended Abundance 360 or Singularity University, or followed my blogs, you’ll probably agree with me that the way our children will learn is going to fundamentally transform over the next decade.

Here’s an overview of the top five technologies that will reshape the future of education:

Tech 1: Virtual Reality (VR) can make learning truly immersive. Research has shown that we remember 20 percent of what we hear, 30 percent of what we see, and up to 90 percent of what we do or simulate. Virtual reality yields the latter scenario impeccably. VR enables students to simulate flying through the bloodstream while learning about different cells they encounter, or travel to Mars to inspect the surface for life.

To make this a reality, Google Cardboard just launched its Pioneer Expeditions product. Under this program, thousands of schools around the world have gotten a kit containing everything a teacher needs to take his or her class on a virtual trip. While data on VR use in K-12 schools and colleges have yet to be gathered, the steady growth of the market is reflected in the surge of companies (including zSpace, Alchemy VR and Immersive VR Education) solely dedicated to providing schools with packaged education curriculum and content.

Add to VR a related technology called augmented reality (AR), and experiential education really comes alive. Imagine wearing an AR headset that is able to superimpose educational lessons on top of real-world experiences. Interested in botany? As you walk through a garden, the AR headset superimposes the name and details of every plant you see.

Tech 2: 3D Printing is allowing students to bring their ideas to life. Never mind the computer on every desktop (or a tablet for every student), that’s a given. In the near future, teachers and students will want or have a 3D printer on the desk to help them learn core science, technology, engineering and mathematics (STEM) principles. Bre Pettis, of MakerBot Industries, in a grand but practical vision, sees a 3D printer on every school desk in America. “Imagine if you had a 3D printer instead of a LEGO set when you were a kid; what would life be like now?” asks Mr. Pettis. You could print your own mini-figures, your own blocks, and you could iterate on new designs as quickly as your imagination would allow. MakerBots are now in over 5,000 K-12 schools across the US.

Taking this one step further, you could imagine having a 3D file for most entries in Wikipedia, allowing you to print out and study an object you can only read about or visualize in VR.

Tech 3: Sensors & Networks. An explosion of sensors and networks are going to connect everyone at gigabit speeds, making access to rich video available at all times. At the same time, sensors continue to miniaturize and reduce in power, becoming embedded in everything. One benefit will be the connection of sensor data with machine learning and AI (below), such that knowledge of a child’s attention drifting, or confusion, can be easily measured and communicated. The result would be a representation of the information through an alternate modality or at a different speed.

Tech 4: Machine Learning is making learning adaptive and personalized. No two students are identical—they have different modes of learning (by reading, seeing, hearing, doing), come from different educational backgrounds, and have different intellectual capabilities and attention spans. Advances in machine learning and the surging adaptive learning movement are seeking to solve this problem. Companies like Knewton and Dreambox have over 15 million students on their respective adaptive learning platforms. Soon, every education application will be adaptive, learning how to personalize the lesson for a specific student. There will be adaptive quizzing apps, flashcard apps, textbook apps, simulation apps and many more.

Tech 5: Artificial Intelligence or “An AI Teaching Companion.” Neil Stephenson’s book The Diamond Age presents a fascinating piece of educational technology called “A Young Lady’s Illustrated Primer.”

As described by Beat Schwendimann, “The primer is an interactive book that can answer a learner’s questions (spoken in natural language), teach through allegories that incorporate elements of the learner’s environment, and presents contextual just-in-time information.

“The primer includes sensors that monitor the learner’s actions and provide feedback. The learner is in a cognitive apprenticeship with the book: The primer models a certain skill (through allegorical fairy tale characters), which the learner then imitates in real life.

“The primer follows a learning progression with increasingly more complex tasks. The educational goals of the primer are humanist: To support the learner to become a strong and independently thinking person.”

The primer, an individualized AI teaching companion is the result of technological convergence and is beautifully described by YouTuber CGP Grey in his video: Digital Aristotle: Thoughts on the Future of Education.

Your AI companion will have unlimited access to information on the cloud and will deliver it at the optimal speed to each student in an engaging, fun way. This AI will demonetize and democratize education, be available to everyone for free (just like Google), and offering the best education to the wealthiest and poorest children on the planet equally.

This AI companion is not a tutor who spouts facts, figures and answers, but a player on the side of the student, there to help him or her learn, and in so doing, learn how to learn better. The AI is always alert, watching for signs of frustration and boredom that may precede quitting, for signs of curiosity or interest that tend to indicate active exploration, and for signs of enjoyment and mastery, which might indicate a successful learning experience.

Ultimately, we’re heading towards a vastly more educated world. We are truly living during the most exciting time to be alive.

Mindsets for the 21st Century
Finally, it’s important for me to discuss mindsets. How we think about the future colors how we learn and what we do. I’ve written extensively about the importance of an abundance and exponential mindset for entrepreneurs and CEOs. I also think that attention to mindset in our elementary schools, when a child is shaping the mental “operating system” for the rest of their life, is even more important.

As such, I would recommend that a school adopt a set of principles that teach and promote a number of mindsets in the fabric of their programs.

Many “mindsets” are important to promote. Here are a couple to consider:

Nurturing Optimism & An Abundance Mindset:
We live in a competitive world, and kids experience a significant amount of pressure to perform. When they fall short, they feel deflated. We all fail at times; that’s part of life. If we want to raise “can-do” kids who can work through failure and come out stronger for it, it’s wise to nurture optimism. Optimistic kids are more willing to take healthy risks, are better problem-solvers, and experience positive relationships. You can nurture optimism in your school by starting each day by focusing on gratitude (what each child is grateful for), or a “positive focus” in which each student takes 30 seconds to talk about what they are most excited about, or what recent event was positively impactful to them. (NOTE: I start every meeting inside my Strike Force team with a positive focus.)

Finally, helping students understand (through data and graphs) that the world is in fact getting better (see my first book: Abundance: The Future is Better Than You Think) will help them counter the continuous flow of negative news flowing through our news media.

When kids feel confident in their abilities and excited about the world, they are willing to work harder and be more creative.

Tolerance for Failure:
Tolerating failure is a difficult lesson to learn and a difficult lesson to teach. But it is critically important to succeeding in life.

Astro Teller, who runs Google’s innovation branch “X,” talks a lot about encouraging failure. At X, they regularly try to “kill” their ideas. If they are successful in killing an idea, and thus “failing,” they save lots of time, money and resources. The ideas they can’t kill survive and develop into billion-dollar businesses. The key is that each time an idea is killed, Astro rewards the team, literally, with cash bonuses. Their failure is celebrated and they become a hero.

This should be reproduced in the classroom: kids should try to be critical of their best ideas (learn critical thinking), then they should be celebrated for ‘successfully failing,’ perhaps with cake, balloons, confetti, and lots of Silly String.

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