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“I’m sorry, Dave. I’m afraid I can’t do that.” HAL’s cold, if polite, refusal to open the pod bay doors in 2001: A Space Odyssey has become a defining warning about putting too much trust in artificial intelligence, particularly if you work in space.
In the movies, when a machine decides to be the boss (or humans let it) things go wrong. Yet despite myriad dystopian warnings, control by machines is fast becoming our reality.
Algorithms—sets of instructions to solve a problem or complete a task—now drive everything from browser search results to better medical care.
They are helping design buildings. They are speeding up trading on financial markets, making and losing fortunes in micro-seconds. They are calculating the most efficient routes for delivery drivers.
In the workplace, self-learning algorithmic computer systems are being introduced by companies to assist in areas such as hiring, setting tasks, measuring productivity, evaluating performance, and even terminating employment: “I’m sorry, Dave. I’m afraid you are being made redundant.”
Giving self‐learning algorithms the responsibility to make and execute decisions affecting workers is called “algorithmic management.” It carries a host of risks in depersonalizing management systems and entrenching pre-existing biases.
At an even deeper level, perhaps, algorithmic management entrenches a power imbalance between management and worker. Algorithms are closely guarded secrets. Their decision-making processes are hidden. It’s a black-box: perhaps you have some understanding of the data that went in, and you see the result that comes out, but you have no idea of what goes on in between.
Algorithms at Work
Here are a few examples of algorithms already at work.
At Amazon’s fulfillment center in south-east Melbourne, they set the pace for “pickers,” who have timers on their scanners showing how long they have to find the next item. As soon as they scan that item, the timer resets for the next. All at a “not quite walking, not quite running” speed.
Or how about AI determining your success in a job interview? More than 700 companies have trialed such technology. US developer HireVue says its software speeds up the hiring process by 90 percent by having applicants answer identical questions and then scoring them according to language, tone, and facial expressions.
Granted, human assessments during job interviews are notoriously flawed. Algorithms,however, can also be biased. The classic example is the COMPAS software used by US judges, probation, and parole officers to rate a person’s risk of re-offending. In 2016 a ProPublica investigation showed the algorithm was heavily discriminatory, incorrectly classifying black subjects as higher risk 45 percent of the time, compared with 23 percent for white subjects.
How Gig Workers Cope
Algorithms do what their code tells them to do. The problem is this code is rarely available. This makes them difficult to scrutinize, or even understand.
Nowhere is this more evident than in the gig economy. Uber, Lyft, Deliveroo, and other platforms could not exist without algorithms allocating, monitoring, evaluating, and rewarding work.
Over the past year Uber Eats’ bicycle couriers and drivers, for instance, have blamed unexplained changes to the algorithm for slashing their jobs, and incomes.
Rider’s can’t be 100 percent sure it was all down to the algorithm. But that’s part of the problem. The fact those who depend on the algorithm don’t know one way or the other has a powerful influence on them.
This is a key result from our interviews with 58 food-delivery couriers. Most knew their jobs were allocated by an algorithm (via an app). They knew the app collected data. What they didn’t know was how data was used to award them work.
In response, they developed a range of strategies (or guessed how) to “win” more jobs, such as accepting gigs as quickly as possible and waiting in “magic” locations. Ironically, these attempts to please the algorithm often meant losing the very flexibility that was one of the attractions of gig work.
The information asymmetry created by algorithmic management has two profound effects. First, it threatens to entrench systemic biases, the type of discrimination hidden within the COMPAS algorithm for years. Second, it compounds the power imbalance between management and worker.
Our data also confirmed others’ findings that it is almost impossible to complain about the decisions of the algorithm. Workers often do not know the exact basis of those decisions, and there’s no one to complain to anyway. When Uber Eats bicycle couriers asked for reasons about their plummeting income, for example, responses from the company advised them “we have no manual control over how many deliveries you receive.”
When algorithmic management operates as a “black box” one of the consequences is that it is can become an indirect control mechanism. Thus far under-appreciated by Australian regulators, this control mechanism has enabled platforms to mobilize a reliable and scalable workforce while avoiding employer responsibilities.
“The absence of concrete evidence about how the algorithms operate”, the Victorian government’s inquiry into the “on-demand” workforce notes in its report, “makes it hard for a driver or rider to complain if they feel disadvantaged by one.”
The report, published in June, also found it is “hard to confirm if concern over algorithm transparency is real.”
But it is precisely the fact it is hard to confirm that’s the problem. How can we start to even identify, let alone resolve, issues like algorithmic management?
Fair conduct standards to ensure transparency and accountability are a start. One example is the Fair Work initiative, led by the Oxford Internet Institute. The initiative is bringing together researchers with platforms, workers, unions, and regulators to develop global principles for work in the platform economy. This includes “fair management,” which focuses on how transparent the results and outcomes of algorithms are for workers.
Understandings about impact of algorithms on all forms of work is still in its infancy. It demands greater scrutiny and research. Without human oversight based on agreed principles we risk inviting HAL into our workplaces.
This article is republished from The Conversation under a Creative Commons license. Read the original article.
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As the internet churns with information about Covid-19, about the virus that causes the disease, and about what we’re supposed to do to fight it, it can be difficult to see the forest for the trees. What can we realistically expect for the rest of 2020? And how do we even know what’s realistic?
Today, humanity’s primary, ideal goal is to eliminate the virus, SARS-CoV-2, and Covid-19. Our second-choice goal is to control virus transmission. Either way, we have three big aims: to save lives, to return to public life, and to keep the economy functioning.
To hit our second-choice goal—and maybe even our primary goal—countries are pursuing five major public health strategies. Note that many of these advances cross-fertilize: for example, advances in virus testing and antibody testing will drive data-based prevention efforts.
Five major public health strategies are underway to bring Covid-19 under control and to contain the spread of SARS-CoV-2.
These strategies arise from things we can control based on the things that we know at any given moment. But what about the things we can’t control and don’t yet know?
The biology of the virus and how it interacts with our bodies is what it is, so we should seek to understand it as thoroughly as possible. How long any immunity gained from prior infection lasts—and indeed whether people develop meaningful immunity at all after infection—are open questions urgently in need of greater clarity. Similarly, right now it’s important to focus on understanding rather than making assumptions about environmental factors like seasonality.
But the biggest question on everyone’s lips is, “When?” When will we see therapeutic progress against Covid-19? And when will life get “back to normal”? There are lots of models out there on the internet; which of those models are right? The simple answer is “none of them.” That’s right—it’s almost certain that every model you’ve seen is wrong in at least one detail, if not all of them. But modeling is meant to be a tool for deeper thinking, a way to run mental (and computational) experiments before—and while—taking action. As George E. P. Box famously wrote in 1976, “All models are wrong, but some are useful.”
Here, we’re seeking useful insights, as opposed to exact predictions, which is why we’re pulling back from quantitative details to get at the mindsets that will support agency and hope. To that end, I’ve been putting together timelines that I believe will yield useful expectations for the next year or two—and asking how optimistic I need to be in order to believe a particular timeline.
For a moderately optimistic scenario to be relevant, breakthroughs in science and technology come at paces expected based on previous efforts and assumptions that turn out to be basically correct; accessibility of those breakthroughs increases at a reasonable pace; regulation achieves its desired effects, without major surprises; and compliance with regulations is reasonably high.
In contrast, if I’m being highly optimistic, breakthroughs in science and technology and their accessibility come more quickly than they ever have before; regulation is evidence-based and successful in the first try or two; and compliance with those regulations is high and uniform. If I’m feeling not-so-optimistic, then I anticipate serious setbacks to breakthroughs and accessibility (with the overturning of many important assumptions), repeated failure of regulations to achieve their desired outcomes, and low compliance with those regulations.
The following scenarios outline the things that need to happen in the fight against Covid-19, when I expect to see them, and how confident I feel in those expectations. They focus on North America and Europe because there are data missing about China’s 2019 outbreak and other regions are still early in their outbreaks. Perhaps the most important thing to keep in mind throughout: We know more today than we did yesterday, but we still have much to learn. New knowledge derived from greater study and debate will almost certainly inspire ongoing course corrections.
As you dive into the scenarios below, practice these three mindset shifts. First, defeating Covid-19 will be a marathon, not a sprint. We shouldn’t expect life to look like 2019 for the next year or two—if ever. As Ed Yong wrote recently in The Atlantic, “There won’t be an obvious moment when everything is under control and regular life can safely resume.” Second, remember that you have important things to do for at least a year. And third, we are all in this together. There is no “us” and “them.” We must all be alert, responsive, generous, and strong throughout 2020 and 2021—and willing to throw away our assumptions when scientific evidence invalidates them.
The Middle Way: Moderate Optimism
Let’s start with the case in which I have the most confidence: moderate optimism.
This timeline considers milestones through late 2021, the earliest that I believe vaccines will become available. The “normal” timeline for developing a vaccine for diseases like seasonal flu is 18 months, which leads to my projection that we could potentially have vaccines as soon as 18 months from the first quarter of 2020. While Melinda Gates agrees with that projection, others (including AI) believe that 3 to 5 years is far more realistic, based on past vaccine development and the need to test safety and efficacy in humans. However, repurposing existing vaccines against other diseases—or piggybacking off clever synthetic platforms—could lead to vaccines being available sooner. I tried to balance these considerations for this moderately optimistic scenario. Either way, deploying vaccines at the end of 2021 is probably much later than you may have been led to believe by the hype engine. Again, if you take away only one message from this article, remember that the fight against Covid-19 is a marathon, not a sprint.
Here, I’ve visualized a moderately optimistic scenario as a baseline. Think of these timelines as living guides, as opposed to exact predictions. There are still many unknowns. More or less optimistic views (see below) and new information could shift these timelines forward or back and change the details of the strategies.
Based on current data, I expect that the first wave of Covid-19 cases (where we are now) will continue to subside in many areas, leading governments to ease restrictions in an effort to get people back to work. We’re already seeing movement in that direction, with a variety of benchmarks and changes at state and country levels around the world. But depending on the details of the changes, easing restrictions will probably cause a second wave of sickness (see Germany and Singapore), which should lead governments to reimpose at least some restrictions.
In tandem, therapeutic efforts will be transitioning from emergency treatments to treatments that have been approved based on safety and efficacy data in clinical trials. In a moderately optimistic scenario, assuming clinical trials currently underway yield at least a few positive results, this shift to mostly approved therapies could happen as early as the third or fourth quarter of this year and continue from there. One approval that should come rather quickly is for plasma therapies, in which the blood from people who have recovered from Covid-19 is used as a source of antibodies for people who are currently sick.
Companies around the world are working on both viral and antibody testing, focusing on speed, accuracy, reliability, and wide accessibility. While these tests are currently being run in hospitals and research laboratories, at-home testing is a critical component of the mass testing we’ll need to keep viral spread in check. These are needed to minimize the impact of asymptomatic cases, test the assumption that infection yields resistance to subsequent infection (and whether it lasts), and construct potential immunity passports if this assumption holds. Testing is also needed for contact tracing efforts to prevent further spread and get people back to public life. Finally, it’s crucial to our fundamental understanding of the biology of SARS-CoV-2 and Covid-19.
We need tests that are very reliable, both in the clinic and at home. So, don’t go buying any at-home test kits just yet, even if you find them online. Wait for reliable test kits and deeper understanding of how a test result translates to everyday realities. If we’re moderately optimistic, in-clinic testing will rapidly expand this quarter and/or next, with the possibility of broadly available, high-quality at-home sampling (and perhaps even analysis) thereafter.
Note that testing is not likely to be a “one-and-done” endeavor, as a person’s infection and immunity status change over time. Expect to be testing yourself—and your family—often as we move later into 2020.
Testing data are also going to inform distancing requirements at the country and local levels. In this scenario, restrictions—at some level of stringency—could persist at least through the end of 2020, as most countries are way behind the curve on testing (Iceland is an informative exception). Governments will likely continue to ask citizens to work from home if at all possible; to wear masks or face coverings in public; to employ heightened hygiene and social distancing in workplaces; and to restrict travel and social gatherings. So while it’s likely we’ll be eating in local restaurants again in 2020 in this scenario, at least for a little while, it’s not likely we’ll be heading to big concerts any time soon.
The Extremes: High and Low Optimism
How would high and low levels of optimism change our moderately optimistic timeline? The milestones are the same, but the time required to achieve them is shorter or longer, respectively. Quantifying these shifts is less important than acknowledging and incorporating a range of possibilities into our view. It pays to pay attention to our bias. Here are a few examples of reasonable possibilities that could shift the moderately optimistic timeline.
When vaccines become available
Vaccine repurposing could shorten the time for vaccines to become available; today, many vaccine candidates are in various stages of testing. On the other hand, difficulties in manufacture and distribution, or faster-than-expected mutation of SARS-CoV-2, could slow vaccine development. Given what we know now, I am not strongly concerned about either of these possibilities—drug companies are rapidly expanding their capabilities, and viral mutation isn’t an urgent concern at this time based on sequencing data—but they could happen.
At first, governments will likely supply vaccines to essential workers such as healthcare workers, but it is essential that vaccines become widely available around the world as quickly and as safely as possible. Overall, I suggest a dose of skepticism when reading highly optimistic claims about a vaccine (or multiple vaccines) being available in 2020. Remember, a vaccine is a knockout punch, not a first line of defense for an outbreak.
When testing hits its stride
While I am confident that testing is a critical component of our response to Covid-19, reliability is incredibly important to testing for SARS-CoV-2 and for immunity to the disease, particularly at home. For an individual, a false negative (being told you don’t have antibodies when you really do) could be just as bad as a false positive (being told you do have antibodies when you really don’t). Those errors are compounded when governments are trying to make evidence-based policies for social and physical distancing.
If you’re highly optimistic, high-quality testing will ramp up quickly as companies and scientists innovate rapidly by cleverly combining multiple test modalities, digital signals, and cutting-edge tech like CRISPR. Pop-up testing labs could also take some pressure off hospitals and clinics.
If things don’t go well, reliability issues could hinder testing, manufacturing bottlenecks could limit availability, and both could hamstring efforts to control spread and ease restrictions. And if it turns out that immunity to Covid-19 isn’t working the way we assumed, then we must revisit our assumptions about our path(s) back to public life, as well as our vaccine-development strategies.
How quickly safe and effective treatments appear
Drug development is known to be long, costly, and fraught with failure. It’s not uncommon to see hope in a drug spike early only to be dashed later on down the road. With that in mind, the number of treatments currently under investigation is astonishing, as is the speed through which they’re proceeding through testing. Breakthroughs in a therapeutic area—for example in treating the seriously ill or in reducing viral spread after an infection takes hold—could motivate changes in the focus of distancing regulations.
While speed will save lives, we cannot overlook the importance of knowing a treatment’s efficacy (does it work against Covid-19?) and safety (does it make you sick in a different, or worse, way?). Repurposing drugs that have already been tested for other diseases is speeding innovation here, as is artificial intelligence.
Remarkable collaborations among governments and companies, large and small, are driving innovation in therapeutics and devices such as ventilators for treating the sick.
Whether government policies are effective and responsive
Those of us who have experienced lockdown are eager for it to be over. Businesses, economists, and governments are also eager to relieve the terrible pressure that is being exerted on the global economy. However, lifting restrictions will almost certainly lead to a resurgence in sickness.
Here, the future is hard to model because there are many, many factors at play, and at play differently in different places—including the extent to which individuals actually comply with regulations.
Reliable testing—both in the clinic and at home—is crucial to designing and implementing restrictions, monitoring their effectiveness, and updating them; delays in reliable testing could seriously hamper this design cycle. Lack of trust in governments and/or companies could also suppress uptake. That said, systems are already in place for contact tracing in East Asia. Other governments could learn important lessons, but must also earn—and keep—their citizens’ trust.
Expect to see restrictions descend and then lift in response to changes in the number of Covid-19 cases and in the effectiveness of our prevention strategies. Also expect country-specific and perhaps even area-specific responses that differ from each other. The benefit of this approach? Governments around the world are running perhaps hundreds of real-time experiments and design cycles in balancing health and the economy, and we can learn from the results.
A Way Out
As Jeremy Farrar, head of the Wellcome Trust, told Science magazine, “Science is the exit strategy.” Some of our greatest technological assistance is coming from artificial intelligence, digital tools for collaboration, and advances in biotechnology.
Our exit strategy also needs to include empathy and future visioning—because in the midst of this crisis, we are breaking ground for a new, post-Covid future.
What do we want that future to look like? How will the hard choices we make now about data ethics impact the future of surveillance? Will we continue to embrace inclusiveness and mass collaboration? Perhaps most importantly, will we lay the foundation for successfully confronting future challenges? Whether we’re thinking about the next pandemic (and there will be others) or the cascade of catastrophes that climate change is bringing ever closer—it’s important to remember that we all have the power to become agents of that change.
Special thanks to Ola Kowalewski and Jason Dorrier for significant conversations.
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New drug therapies for a range of chronic diseases. Defenses against various cyber attacks. Technologies to make cities work smarter. Weather and wildfire forecasts that boost safety and reduce risk. And commercial efforts to monetize so-called deepfakes.
What do all these disparate efforts have in common? They’re some of the solutions that the world’s most promising artificial intelligence startups are pursuing.
Data research firm CB Insights released its much-anticipated fourth annual list of the top 100 AI startups earlier this month. The New York-based company has become one of the go-to sources for emerging technology trends, especially in the startup scene.
About 10 years ago, it developed its own algorithm to assess the health of private companies using publicly-available information and non-traditional signals (think social media sentiment, for example) thanks to more than $1 million in grants from the National Science Foundation.
It uses that algorithm-generated data from what it calls a company’s Mosaic score—pulling together information on market trends, money, and momentum—along with other details ranging from patent activity to the latest news analysis to identify the best of the best.
“Our final list of companies is a mix of startups at various stages of R&D and product commercialization,” said Deepashri Varadharajanis, a lead analyst at CB Insights, during a recent presentation on the most prominent trends among the 2020 AI 100 startups.
About 10 companies on the list are among the world’s most valuable AI startups. For instance, there’s San Francisco-based Faire, which has raised at least $266 million since it was founded just three years ago. The company offers a wholesale marketplace that uses machine learning to match local retailers with goods that are predicted to sell well in their specific location.
Image courtesy of CB Insights
Funding for AI in Healthcare
Another startup valued at more than $1 billion, referred to as a unicorn in venture capital speak, is Butterfly Network, a company on the East Coast that has figured out a way to turn a smartphone phone into an ultrasound machine. Backed by $350 million in private investments, Butterfly Network uses AI to power the platform’s diagnostics. A more modestly funded San Francisco startup called Eko is doing something similar for stethoscopes.
In fact, there are more than a dozen AI healthcare startups on this year’s AI 100 list, representing the most companies of any industry on the list. In total, investors poured about $4 billion into AI healthcare startups last year, according to CB Insights, out of a record $26.6 billion raised by all private AI companies in 2019. Since 2014, more than 4,300 AI startups in 80 countries have raised about $83 billion.
One of the most intensive areas remains drug discovery, where companies unleash algorithms to screen potential drug candidates at an unprecedented speed and breadth that was impossible just a few years ago. It has led to the discovery of a new antibiotic to fight superbugs. There’s even a chance AI could help fight the coronavirus pandemic.
There are several AI drug discovery startups among the AI 100: San Francisco-based Atomwise claims its deep convolutional neural network, AtomNet, screens more than 100 million compounds each day. Cyclica is an AI drug discovery company in Toronto that just announced it would apply its platform to identify and develop novel cannabinoid-inspired drugs for neuropsychiatric conditions such as bipolar disorder and anxiety.
And then there’s OWKIN out of New York City, a startup that uses a type of machine learning called federated learning. Backed by Google, the company’s AI platform helps train algorithms without sharing the necessary patient data required to provide the sort of valuable insights researchers need for designing new drugs or even selecting the right populations for clinical trials.
Keeping Cyber Networks Healthy
Privacy and data security are the focus of a number of AI cybersecurity startups, as hackers attempt to leverage artificial intelligence to launch sophisticated attacks while also trying to fool the AI-powered systems rapidly coming online.
“I think this is an interesting field because it’s a bit of a cat and mouse game,” noted Varadharajanis. “As your cyber defenses get smarter, your cyber attacks get even smarter, and so it’s a constant game of who’s going to match the other in terms of tech capabilities.”
Few AI cybersecurity startups match Silicon Valley-based SentinelOne in terms of private capital. The company has raised more than $400 million, with a valuation of $1.1 billion following a $200 million Series E earlier this year. The company’s platform automates what’s called endpoint security, referring to laptops, phones, and other devices at the “end” of a centralized network.
Fellow AI 100 cybersecurity companies include Blue Hexagon, which protects the “edge” of the network against malware, and Abnormal Security, which stops targeted email attacks, both out of San Francisco. Just down the coast in Los Angeles is Obsidian Security, a startup offering cybersecurity for cloud services.
Deepfakes Get a Friendly Makeover
Deepfakes of videos and other types of AI-manipulated media where faces or voices are synthesized in order to fool viewers or listeners has been a different type of ongoing cybersecurity risk. However, some firms are swapping malicious intent for benign marketing and entertainment purposes.
Now anyone can be a supermodel thanks to Superpersonal, a London-based AI startup that has figured out a way to seamlessly swap a user’s face onto a fashionista modeling the latest threads on the catwalk. The most obvious use case is for shoppers to see how they will look in a particular outfit before taking the plunge on a plunging neckline.
Another British company called Synthesia helps users create videos where a talking head will deliver a customized speech or even talk in a different language. The startup’s claim to fame was releasing a campaign video for the NGO Malaria Must Die showing soccer star David Becham speak in nine different languages.
There’s also a Seattle-based company, Wellsaid Labs, which uses AI to produce voice-over narration where users can choose from a library of digital voices with human pitch, emphasis, and intonation. Because every narrator sounds just a little bit smarter with a British accent.
AI Helps Make Smart Cities Smarter
Speaking of smarter: A handful of AI 100 startups are helping create the smart city of the future, where a digital web of sensors, devices, and cloud-based analytics ensure that nobody is ever stuck in traffic again or without an umbrella at the wrong time. At least that’s the dream.
A couple of them are directly connected to Google subsidiary Sidewalk Labs, which focuses on tech solutions to improve urban design. A company called Replica was spun out just last year. It’s sort of SimCity for urban planning. The San Francisco startup uses location data from mobile phones to understand how people behave and travel throughout a typical day in the city. Those insights can then help city governments, for example, make better decisions about infrastructure development.
Denver-area startup AMP Robotics gets into the nitty gritty details of recycling by training robots on how to recycle trash, since humans have largely failed to do the job. The U.S. Environmental Protection Agency estimates that only about 30 percent of waste is recycled.
Some people might complain that weather forecasters don’t even do that well when trying to predict the weather. An Israeli AI startup, ClimaCell, claims it can forecast rain block by block. While the company taps the usual satellite and ground-based sources to create weather models, it has developed algorithms to analyze how precipitation and other conditions affect signals in cellular networks. By analyzing changes in microwave signals between cellular towers, the platform can predict the type and intensity of the precipitation down to street level.
And those are just some of the highlights of what some of the world’s most promising AI startups are doing.
“You have companies optimizing mining operations, warehouse logistics, insurance, workflows, and even working on bringing AI solutions to designing printed circuit boards,” Varadharajanis said. “So a lot of creative ways in which companies are applying AI to solve different issues in different industries.”
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Self-driving and electric cars just don’t stop making headlines lately. Amazon invested in self-driving startup Aurora earlier this year. Waymo, Daimler, GM, along with startups like Zoox, have all launched or are planning to launch driverless taxis, many of them all-electric. People are even yanking driverless cars from their timeless natural habitat—roads—to try to teach them to navigate forests and deserts.
The future of driving, it would appear, is upon us.
But an equally important vehicle that often gets left out of the conversation is trucks; their relevance to our day-to-day lives may not be as visible as that of cars, but their impact is more profound than most of us realize.
Two recent developments in trucking point to a future of self-driving, electric semis hauling goods across the country, and likely doing so more quickly, cheaply, and safely than trucks do today.
Self-Driving in Texas
Last week, Kodiak Robotics announced it’s beginning its first commercial deliveries using self-driving trucks on a route from Dallas to Houston. The two cities sit about 240 miles apart, connected primarily by interstate 45. Kodiak is aiming to expand its reach far beyond the heart of Texas (if Dallas and Houston can be considered the heart, that is) to the state’s most far-flung cities, including El Paso to the west and Laredo to the south.
If self-driving trucks are going to be constrained to staying within state lines (and given that the laws regulating them differ by state, they will be for the foreseeable future), Texas is a pretty ideal option. It’s huge (thousands of miles of highway run both east-west and north-south), it’s warm (better than cold for driverless tech components like sensors), its proximity to Mexico means constant movement of both raw materials and manufactured goods (basically, you can’t have too many trucks in Texas), and most crucially, it’s lax on laws (driverless vehicles have been permitted there since 2017).
Spoiler, though—the trucks won’t be fully unmanned. They’ll have safety drivers to guide them onto and off of the highway, and to be there in case of any unexpected glitches.
California Goes (Even More) Electric
According to some top executives in the rideshare industry, automation is just one key component of the future of driving. Another is electricity replacing gas, and it’s not just carmakers that are plugging into the trend.
This week, Daimler Trucks North America announced completion of its first electric semis for customers Penske and NFI, to be used in the companies’ southern California operations. Scheduled to start operating later this month, the trucks will essentially be guinea pigs for testing integration of electric trucks into large-scale fleets; intel gleaned from the trucks’ performance will impact the design of later models.
Design-wise, the trucks aren’t much different from any other semi you’ve seen lumbering down the highway recently. Their range is about 250 miles—not bad if you think about how much more weight a semi is pulling than a passenger sedan—and they’ve been dubbed eCascadia, an electrified version of Freightliner’s heavy-duty Cascadia truck.
Batteries have a long way to go before they can store enough energy to make electric trucks truly viable (not to mention setting up a national charging infrastructure), but Daimler’s announcement is an important step towards an electrically-driven future.
Keep on Truckin’
Obviously, it’s more exciting to think about hailing one of those cute little Waymo cars with no steering wheel to shuttle you across town than it is to think about that 12-pack of toilet paper you ordered on Amazon cruising down the highway in a semi while the safety driver takes a snooze. But pushing driverless and electric tech in the trucking industry makes sense for a few big reasons.
Trucks mostly run long routes on interstate highways—with no pedestrians, stoplights, or other city-street obstacles to contend with, highway driving is much easier to automate. What glitches there are to be smoothed out may as well be smoothed out with cargo on board rather than people. And though you wouldn’t know it amid the frantic shouts of ‘a robot could take your job!’, the US is actually in the midst of a massive shortage of truck drivers—60,000 short as of earlier this year, to be exact.
As Todd Spencer, president of the Owner-Operator Independent Drivers Association, put it, “Trucking is an absolutely essential, critical industry to the nation, to everybody in it.” Alas, trucks get far less love than cars, but come on—probably 90 percent of the things you ate, bought, or used today were at some point moved by a truck.
Adding driverless and electric tech into that equation, then, should yield positive outcomes on all sides, whether we’re talking about cheaper 12-packs of toilet paper, fewer traffic fatalities due to human error, a less-strained labor force, a stronger economy… or something pretty cool to see as you cruise down the highway in your (driverless, electric, futuristic) car.
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The energy and transportation industries are being aggressively disrupted by converging exponential technologies.
In just five days, the sun provides Earth with an energy supply exceeding all proven reserves of oil, coal, and natural gas. Capturing just 1 part in 8,000 of this available solar energy would allow us to meet 100 percent of our energy needs.
As we leverage renewable energy supplied by the sun, wind, geothermal sources, and eventually fusion, we are rapidly heading towards a future where 100 percent of our energy needs will be met by clean tech in just 30 years.
During the past 40 years, solar prices have dropped 250-fold. And as these costs plummet, solar panel capacity continues to grow exponentially.
On the heels of energy abundance, we are additionally witnessing a new transportation revolution, which sets the stage for a future of seamlessly efficient travel at lower economic and environmental costs.
Top 5 Transportation Breakthroughs (2019-2024)
Entrepreneur and inventor Ramez Naam is my go-to expert on all things energy and environment. Currently serving as the Energy Co-Chair at Singularity University, Naam is the award-winning author of five books, including the Nexus series of science fiction novels. Having spent 13 years at Microsoft, his software has touched the lives of over a billion people. Naam holds over 20 patents, including several shared with co-inventor Bill Gates.
In the next five years, he forecasts five respective transportation and energy trends, each poised to disrupt major players and birth entirely new business models.
Let’s dive in.
Autonomous cars drive 1 billion miles on US roads. Then 10 billion
Alphabet’s Waymo alone has already reached 10 million miles driven in the US. The 600 Waymo vehicles on public roads drive a total of 25,000 miles each day, and computer simulations provide an additional 25,000 virtual cars driving constantly. Since its launch in December, the Waymo One service has transported over 1,000 pre-vetted riders in the Phoenix area.
With more training miles, the accuracy of these cars continues to improve. Since last year, GM Cruise has improved its disengagement rate by 321 percent since last year, trailing close behind with only one human intervention per 5,025 miles self-driven.
Autonomous taxis as a service in top 20 US metro areas
Along with its first quarterly earnings released last week, Lyft recently announced that it would expand its Waymo partnership with the upcoming deployment of 10 autonomous vehicles in the Phoenix area. While individuals previously had to partake in Waymo’s “early rider program” prior to trying Waymo One, the Lyft partnership will allow anyone to ride in a self-driving vehicle without a prior NDA.
Strategic partnerships will grow increasingly essential between automakers, self-driving tech companies, and rideshare services. Ford is currently working with Volkswagen, and Nvidia now collaborates with Daimler (Mercedes) and Toyota. Just last week, GM Cruise raised another $1.15 billion at a $19 billion valuation as the company aims to launch a ride-hailing service this year.
“They’re going to come to the Bay Area, Los Angeles, Houston, other cities with relatively good weather,” notes Naam. “In every major city within five years in the US and in some other parts of the world, you’re going to see the ability to hail an autonomous vehicle as a ride.”
Cambrian explosion of vehicle formats
Naam explains, “If you look today at the average ridership of a taxi, a Lyft, or an Uber, it’s about 1.1 passengers plus the driver. So, why do you need a large four-seater vehicle for that?”
Small electric, autonomous pods that seat as few as two people will begin to emerge, satisfying the majority of ride-hailing demands we see today. At the same time, larger communal vehicles will appear, such as Uber Express, that will undercut even the cheapest of transportation methods—buses, trams, and the like. Finally, last-mile scooter transit (or simply short-distance walks) might connect you to communal pick-up locations.
By 2024, an unimaginably diverse range of vehicles will arise to meet every possible need, regardless of distance or destination.
Drone delivery for lightweight packages in at least one US city
Wing, the Alphabet drone delivery startup, recently became the first company to gain approval from the Federal Aviation Administration (FAA) to make deliveries in the US. Having secured approval to deliver to 100 homes in Canberra, Australia, Wing additionally plans to begin delivering goods from local businesses in the suburbs of Virginia.
The current state of drone delivery is best suited for lightweight, urgent-demand payloads like pharmaceuticals, thumb drives, or connectors. And as Amazon continues to decrease its Prime delivery times—now as speedy as a one-day turnaround in many cities—the use of drones will become essential.
Robotic factories drive onshoring of US factories… but without new jobs
The supply chain will continue to shorten and become more agile with the re-onshoring of manufacturing jobs in the US and other countries. Naam reasons that new management and software jobs will drive this shift, as these roles develop the necessary robotics to manufacture goods. Equally as important, these robotic factories will provide a more humane setting than many of the current manufacturing practices overseas.
Top 5 Energy Breakthroughs (2019-2024)
First “1 cent per kWh” deals for solar and wind signed
Ten years ago, the lowest price of solar and wind power fell between 10 to 12 cents per kilowatt hour (kWh), over twice the price of wholesale power from coal or natural gas.
Today, the gap between solar/wind power and fossil fuel-generated electricity is nearly negligible in many parts of the world. In G20 countries, fossil fuel electricity costs between 5 to 17 cents per kWh, while the average cost per kWh of solar power in the US stands at under 10 cents.
Spanish firm Solarpack Corp Technological recently won a bid in Chile for a 120 MW solar power plant supplying energy at 2.91 cents per kWh. This deal will result in an estimated 25 percent drop in energy costs for Chilean businesses by 2021.
Naam indicates, “We will see the first unsubsidized 1.0 cent solar deals in places like Chile, Mexico, the Southwest US, the Middle East, and North Africa, and we’ll see similar prices for wind in places like Mexico, Brazil, and the US Great Plains.”
Solar and wind will reach >15 percent of US electricity, and begin to drive all growth
Just over eight percent of energy in the US comes from solar and wind sources. In total, 17 percent of American energy is derived from renewable sources, while a whopping 63 percent is sourced from fossil fuels, and 17 percent from nuclear.
Last year in the U.K., twice as much energy was generated from wind than from coal. For over a week in May, the U.K. went completely coal-free, using wind and solar to supply 35 percent and 21 percent of power, respectively. While fossil fuels remain the primary electricity source, this week-long experiment highlights the disruptive potential of solar and wind power that major countries like the U.K. are beginning to emphasize.
“Solar and wind are still a relatively small part of the worldwide power mix, only about six percent. Within five years, it’s going to be 15 percent in the US and more than close to that worldwide,” Naam predicts. “We are nearing the point where we are not building any new fossil fuel power plants.”
It will be cheaper to build new solar/wind/batteries than to run on existing coal
Last October, Northern Indiana utility company NIPSCO announced its transition from a 65 percent coal-powered state to projected coal-free status by 2028. Importantly, this decision was made purely on the basis of financials, with an estimated $4 billion in cost savings for customers. The company has already begun several initiatives in solar, wind, and batteries.
NextEra, the largest power generator in the US, has taken on a similar goal, making a deal last year to purchase roughly seven million solar panels from JinkoSolar over four years. Leading power generators across the globe have vocalized a similar economic case for renewable energy.
ICE car sales have now peaked. All car sales growth will be electric
While electric vehicles (EV) have historically been more expensive for consumers than internal combustion engine-powered (ICE) cars, EVs are cheaper to operate and maintain. The yearly cost of operating an EV in the US is about $485, less than half the $1,117 cost of operating a gas-powered vehicle.
And as battery prices continue to shrink, the upfront costs of EVs will decline until a long-term payoff calculation is no longer required to determine which type of car is the better investment. EVs will become the obvious choice.
Many experts including Naam believe that ICE-powered vehicles peaked worldwide in 2018 and will begin to decline over the next five years, as has already been demonstrated in the past five months. At the same time, EVs are expected to quadruple their market share to 1.6 percent this year.
New storage technologies will displace Li-ion batteries for tomorrow’s most demanding applications
Lithium ion batteries have dominated the battery market for decades, but Naam anticipates new storage technologies will take hold for different contexts. Flow batteries, which can collect and store solar and wind power at large scales, will supply city grids. Already, California’s Independent System Operator, the nonprofit that maintains the majority of the state’s power grid, recently installed a flow battery system in San Diego.
Solid-state batteries, which consist of entirely solid electrolytes, will supply mobile devices in cars. A growing body of competitors, including Toyota, BMW, Honda, Hyundai, and Nissan, are already working on developing solid-state battery technology. These types of batteries offer up to six times faster charging periods, three times the energy density, and eight years of added lifespan, compared to lithium ion batteries.
Major advancements in transportation and energy technologies will continue to converge over the next five years. A case in point, Tesla’s recent announcement of its “robotaxi” fleet exemplifies the growing trend towards joint priority of sustainability and autonomy.
On the connectivity front, 5G and next-generation mobile networks will continue to enable the growth of autonomous fleets, many of which will soon run on renewable energy sources. This growth demands important partnerships between energy storage manufacturers, automakers, self-driving tech companies, and ridesharing services.
In the eco-realm, increasingly obvious economic calculi will catalyze consumer adoption of autonomous electric vehicles. In just five years, Naam predicts that self-driving rideshare services will be cheaper than owning a private vehicle for urban residents. And by the same token, plummeting renewable energy costs will make these fuels far more attractive than fossil fuel-derived electricity.
As universally optimized AI systems cut down on traffic, aggregate time spent in vehicles will decimate, while hours in your (or not your) car will be applied to any number of activities as autonomous systems steer the way. All the while, sharing an electric vehicle will cut down not only on your carbon footprint but on the exorbitant costs swallowed by your previous SUV. How will you spend this extra time and money? What new natural resources will fuel your everyday life?
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