Tag Archives: economy
#439023 In ‘Klara and the Sun,’ We Glimpse ...
In a store in the center of an unnamed city, humanoid robots are displayed alongside housewares and magazines. They watch the fast-moving world outside the window, anxiously awaiting the arrival of customers who might buy them and take them home. Among them is Klara, a particularly astute robot who loves the sun and wants to learn as much as possible about humans and the world they live in.
So begins Kazuo Ishiguro’s new novel Klara and the Sun, published earlier this month. The book, told from Klara’s perspective, portrays an eerie future society in which intelligent machines and other advanced technologies have been integrated into daily life, but not everyone is happy about it.
Technological unemployment, the progress of artificial intelligence, inequality, the safety and ethics of gene editing, increasing loneliness and isolation—all of which we’re grappling with today—show up in Ishiguro’s world. It’s like he hit a fast-forward button, mirroring back to us how things might play out if we don’t approach these technologies with caution and foresight.
The wealthy genetically edit or “lift” their children to set them up for success, while the poor have to make do with the regular old brains and bodies bequeathed them by evolution. Lifted and unlifted kids generally don’t mix, and this is just one of many sinister delineations between a new breed of haves and have-nots.
There’s anger about robots’ steady infiltration into everyday life, and questions about how similar their rights should be to those of humans. “First they take the jobs. Then they take the seats at the theater?” one woman fumes.
References to “changes” and “substitutions” allude to an economy where automation has eliminated millions of jobs. While “post-employed” people squat in abandoned buildings and fringe communities arm themselves in preparation for conflict, those whose livelihoods haven’t been destroyed can afford to have live-in housekeepers and buy Artificial Friends (or AFs) for their lonely children.
“The old traditional model that we still live with now—where most of us can get some kind of paid work in exchange for our services or the goods we make—has broken down,” Ishiguro said in a podcast discussion of the novel. “We’re not talking just about the difference between rich and poor getting bigger. We’re talking about a gap appearing between people who participate in society in an obvious way and people who do not.”
He has a point; as much as techno-optimists claim that the economic changes brought by automation and AI will give us all more free time, let us work less, and devote time to our passion projects, how would that actually play out? What would millions of “post-employed” people receiving basic income actually do with their time and energy?
In the novel, we don’t get much of a glimpse of this side of the equation, but we do see how the wealthy live. After a long wait, just as the store manager seems ready to give up on selling her, Klara is chosen by a 14-year-old girl named Josie, the daughter of a woman who wears “high-rank clothes” and lives in a large, sunny home outside the city. Cheerful and kind, Josie suffers from an unspecified illness that periodically flares up and leaves her confined to her bed for days at a time.
Her life seems somewhat bleak, the need for an AF clear. In this future world, the children of the wealthy no longer go to school together, instead studying alone at home on their digital devices. “Interaction meetings” are set up for them to learn to socialize, their parents carefully eavesdropping from the next room and trying not to intervene when there’s conflict or hurt feelings.
Klara does her best to be a friend, aide, and confidante to Josie while continuing to learn about the world around her and decode the mysteries of human behavior. We surmise that she was programmed with a basic ability to understand emotions, which evolves along with her other types of intelligence. “I believe I have many feelings. The more I observe, the more feelings become available to me,” she explains to one character.
Ishiguro does an excellent job of representing Klara’s mind: a blend of pre-determined programming, observation, and continuous learning. Her narration has qualities both robotic and human; we can tell when something has been programmed in—she “Gives Privacy” to the humans around her when that’s appropriate, for example—and when she’s figured something out for herself.
But the author maintains some mystery around Klara’s inner emotional life. “Does she actually understand human emotions, or is she just observing human emotions and simulating them within herself?” he said. “I suppose the question comes back to, what are our emotions as human beings? What do they amount to?”
Klara is particularly attuned to human loneliness, since she essentially was made to help prevent it. It is, in her view, peoples’ biggest fear, and something they’ll go to great lengths to avoid, yet can never fully escape. “Perhaps all humans are lonely,” she says.
Warding off loneliness through technology isn’t a futuristic idea, it’s something we’ve been doing for a long time, with the technologies at hand growing more and more sophisticated. Products like AFs already exist. There’s XiaoIce, a chatbot that uses “sentiment analysis” to keep its 660 million users engaged, and Azuma Hikari, a character-based AI designed to “bring comfort” to users whose lives lack emotional connection with other humans.
The mere existence of these tools would be sinister if it wasn’t for their widespread adoption; when millions of people use AIs to fill a void in their lives, it raises deeper questions about our ability to connect with each other and whether technology is building it up or tearing it down.
This isn’t the only big question the novel tackles. An overarching theme is one we’ve been increasingly contemplating as computers start to acquire more complex capabilities, like the beginnings of creativity or emotional awareness: What is it that truly makes us human?
“Do you believe in the human heart?” one character asks. “I don’t mean simply the organ, obviously. I’m speaking in the poetic sense. The human heart. Do you think there is such a thing? Something that makes each of us special and individual?”
The alternative, at least in the story, is that people don’t have a unique essence, but rather we’re all a blend of traits and personalities that can be reduced to strings of code. Our understanding of the brain is still elementary, but at some level, doesn’t all human experience boil down to the firing of billions of neurons between our ears? Will we one day—in a future beyond that painted by Ishiguro, but certainly foreshadowed by it—be able to “decode” our humanity to the point that there’s nothing mysterious left about it? “A human heart is bound to be complex,” Klara says. “But it must be limited.”
Whether or not you agree, Klara and the Sun is worth the read. It’s both a marvelous, engaging story about what it means to love and be human, and a prescient warning to approach technological change with caution and nuance. We’re already living in a world where AI keeps us company, influences our behavior, and is wreaking various forms of havoc. Ishiguro’s novel is a snapshot of one of our possible futures, told through the eyes of a robot who keeps you rooting for her to the end.
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#437974 China Wants to Be the World’s AI ...
China’s star has been steadily rising for decades. Besides slashing extreme poverty rates from 88 percent to under 2 percent in just 30 years, the country has become a global powerhouse in manufacturing and technology. Its pace of growth may slow due to an aging population, but China is nonetheless one of the world’s biggest players in multiple cutting-edge tech fields.
One of these fields, and perhaps the most significant, is artificial intelligence. The Chinese government announced a plan in 2017 to become the world leader in AI by 2030, and has since poured billions of dollars into AI projects and research across academia, government, and private industry. The government’s venture capital fund is investing over $30 billion in AI; the northeastern city of Tianjin budgeted $16 billion for advancing AI; and a $2 billion AI research park is being built in Beijing.
On top of these huge investments, the government and private companies in China have access to an unprecedented quantity of data, on everything from citizens’ health to their smartphone use. WeChat, a multi-functional app where people can chat, date, send payments, hail rides, read news, and more, gives the CCP full access to user data upon request; as one BBC journalist put it, WeChat “was ahead of the game on the global stage and it has found its way into all corners of people’s existence. It could deliver to the Communist Party a life map of pretty much everybody in this country, citizens and foreigners alike.” And that’s just one (albeit big) source of data.
Many believe these factors are giving China a serious leg up in AI development, even providing enough of a boost that its progress will surpass that of the US.
But there’s more to AI than data, and there’s more to progress than investing billions of dollars. Analyzing China’s potential to become a world leader in AI—or in any technology that requires consistent innovation—from multiple angles provides a more nuanced picture of its strengths and limitations. In a June 2020 article in Foreign Affairs, Oxford fellows Carl Benedikt Frey and Michael Osborne argued that China’s big advantages may not actually be that advantageous in the long run—and its limitations may be very limiting.
Moving the AI Needle
To get an idea of who’s likely to take the lead in AI, it could help to first consider how the technology will advance beyond its current state.
To put it plainly, AI is somewhat stuck at the moment. Algorithms and neural networks continue to achieve new and impressive feats—like DeepMind’s AlphaFold accurately predicting protein structures or OpenAI’s GPT-3 writing convincing articles based on short prompts—but for the most part these systems’ capabilities are still defined as narrow intelligence: completing a specific task for which the system was painstakingly trained on loads of data.
(It’s worth noting here that some have speculated OpenAI’s GPT-3 may be an exception, the first example of machine intelligence that, while not “general,” has surpassed the definition of “narrow”; the algorithm was trained to write text, but ended up being able to translate between languages, write code, autocomplete images, do math, and perform other language-related tasks it wasn’t specifically trained for. However, all of GPT-3’s capabilities are limited to skills it learned in the language domain, whether spoken, written, or programming language).
Both AlphaFold’s and GPT-3’s success was due largely to the massive datasets they were trained on; no revolutionary new training methods or architectures were involved. If all it was going to take to advance AI was a continuation or scaling-up of this paradigm—more input data yields increased capability—China could well have an advantage.
But one of the biggest hurdles AI needs to clear to advance in leaps and bounds rather than baby steps is precisely this reliance on extensive, task-specific data. Other significant challenges include the technology’s fast approach to the limits of current computing power and its immense energy consumption.
Thus, while China’s trove of data may give it an advantage now, it may not be much of a long-term foothold on the climb to AI dominance. It’s useful for building products that incorporate or rely on today’s AI, but not for pushing the needle on how artificially intelligent systems learn. WeChat data on users’ spending habits, for example, would be valuable in building an AI that helps people save money or suggests items they might want to purchase. It will enable (and already has enabled) highly tailored products that will earn their creators and the companies that use them a lot of money.
But data quantity isn’t what’s going to advance AI. As Frey and Osborne put it, “Data efficiency is the holy grail of further progress in artificial intelligence.”
To that end, research teams in academia and private industry are working on ways to make AI less data-hungry. New training methods like one-shot learning and less-than-one-shot learning have begun to emerge, along with myriad efforts to make AI that learns more like the human brain.
While not insignificant, these advancements still fall into the “baby steps” category. No one knows how AI is going to progress beyond these small steps—and that uncertainty, in Frey and Osborne’s opinion, is a major speed bump on China’s fast-track to AI dominance.
How Innovation Happens
A lot of great inventions have happened by accident, and some of the world’s most successful companies started in garages, dorm rooms, or similarly low-budget, nondescript circumstances (including Google, Facebook, Amazon, and Apple, to name a few). Innovation, the authors point out, often happens “through serendipity and recombination, as inventors and entrepreneurs interact and exchange ideas.”
Frey and Osborne argue that although China has great reserves of talent and a history of building on technologies conceived elsewhere, it doesn’t yet have a glowing track record in terms of innovation. They note that of the 100 most-cited patents from 2003 to present, none came from China. Giants Tencent, Alibaba, and Baidu are all wildly successful in the Chinese market, but they’re rooted in technologies or business models that came out of the US and were tweaked for the Chinese population.
“The most innovative societies have always been those that allowed people to pursue controversial ideas,” Frey and Osborne write. China’s heavy censorship of the internet and surveillance of citizens don’t quite encourage the pursuit of controversial ideas. The country’s social credit system rewards people who follow the rules and punishes those who step out of line. Frey adds that top-down execution of problem-solving is effective when the problem at hand is clearly defined—and the next big leaps in AI are not.
It’s debatable how strongly a culture of social conformism can impact technological innovation, and of course there can be exceptions. But a relevant historical example is the Soviet Union, which, despite heavy investment in science and technology that briefly rivaled the US in fields like nuclear energy and space exploration, ended up lagging far behind primarily due to political and cultural factors.
Similarly, China’s focus on computer science in its education system could give it an edge—but, as Frey told me in an email, “The best students are not necessarily the best researchers. Being a good researcher also requires coming up with new ideas.”
Winner Take All?
Beyond the question of whether China will achieve AI dominance is the issue of how it will use the powerful technology. Several of the ways China has already implemented AI could be considered morally questionable, from facial recognition systems used aggressively against ethnic minorities to smart glasses for policemen that can pull up information about whoever the wearer looks at.
This isn’t to say the US would use AI for purely ethical purposes. The military’s Project Maven, for example, used artificially intelligent algorithms to identify insurgent targets in Iraq and Syria, and American law enforcement agencies are also using (mostly unregulated) facial recognition systems.
It’s conceivable that “dominance” in AI won’t go to one country; each nation could meet milestones in different ways, or meet different milestones. Researchers from both countries, at least in the academic sphere, could (and likely will) continue to collaborate and share their work, as they’ve done on many projects to date.
If one country does take the lead, it will certainly see some major advantages as a result. Brookings Institute fellow Indermit Gill goes so far as to say that whoever leads in AI in 2030 will “rule the world” until 2100. But Gill points out that in addition to considering each country’s strengths, we should consider how willing they are to improve upon their weaknesses.
While China leads in investment and the US in innovation, both nations are grappling with huge economic inequalities that could negatively impact technological uptake. “Attitudes toward the social change that accompanies new technologies matter as much as the technologies, pointing to the need for complementary policies that shape the economy and society,” Gill writes.
Will China’s leadership be willing to relax its grip to foster innovation? Will the US business environment be enough to compete with China’s data, investment, and education advantages? And can both countries find a way to distribute technology’s economic benefits more equitably?
Time will tell, but it seems we’ve got our work cut out for us—and China does too.
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#437816 As Algorithms Take Over More of the ...
Algorithms play an increasingly prominent part in our lives, governing everything from the news we see to the products we buy. As they proliferate, experts say, we need to make sure they don’t collude against us in damaging ways.
Fears of malevolent artificial intelligence plotting humanity’s downfall are a staple of science fiction. But there are plenty of nearer-term situations in which relatively dumb algorithms could do serious harm unintentionally, particularly when they are interlocked in complex networks of relationships.
In the economic sphere a high proportion of decision-making is already being offloaded to machines, and there have been warning signs of where that could lead if we’re not careful. The 2010 “Flash Crash,” where algorithmic traders helped wipe nearly $1 trillion off the stock market in minutes, is a textbook example, and widespread use of automated trading software has been blamed for the increasing fragility of markets.
But another important place where algorithms could undermine our economic system is in price-setting. Competitive markets are essential for the smooth functioning of the capitalist system that underpins Western society, which is why countries like the US have strict anti-trust laws that prevent companies from creating monopolies or colluding to build cartels that artificially inflate prices.
These regulations were built for an era when pricing decisions could always be traced back to a human, though. As self-adapting pricing algorithms increasingly decide the value of products and commodities, those laws are starting to look unfit for purpose, say the authors of a paper in Science.
Using algorithms to quickly adjust prices in a dynamic market is not a new idea—airlines have been using them for decades—but previously these algorithms operated based on rules that were hard-coded into them by programmers.
Today the pricing algorithms that underpin many marketplaces, especially online ones, rely on machine learning instead. After being set an overarching goal like maximizing profit, they develop their own strategies based on experience of the market, often with little human oversight. The most advanced also use forms of AI whose workings are opaque even if humans wanted to peer inside.
In addition, the public nature of online markets means that competitors’ prices are available in real time. It’s well-documented that major retailers like Amazon and Walmart are engaged in a never-ending bot war, using automated software to constantly snoop on their rivals’ pricing and inventory.
This combination of factors sets the stage perfectly for AI-powered pricing algorithms to adopt collusive pricing strategies, say the authors. If given free reign to develop their own strategies, multiple pricing algorithms with real-time access to each other’s prices could quickly learn that cooperating with each other is the best way to maximize profits.
The authors note that researchers have already found evidence that pricing algorithms will spontaneously develop collusive strategies in computer-simulated markets, and a recent study found evidence that suggests pricing algorithms may be colluding in Germany’s retail gasoline market. And that’s a problem, because today’s anti-trust laws are ill-suited to prosecuting this kind of behavior.
Collusion among humans typically involves companies communicating with each other to agree on a strategy that pushes prices above the true market value. They then develop rules to determine how they maintain this markup in a dynamic market that also incorporates the threat of retaliatory pricing to spark a price war if another cartel member tries to undercut the agreed pricing strategy.
Because of the complexity of working out whether specific pricing strategies or prices are the result of collusion, prosecutions have instead relied on communication between companies to establish guilt. That’s a problem because algorithms don’t need to communicate to collude, and as a result there are few legal mechanisms to prosecute this kind of collusion.
That means legal scholars, computer scientists, economists, and policymakers must come together to find new ways to uncover, prohibit, and prosecute the collusive rules that underpin this behavior, say the authors. Key to this will be auditing and testing pricing algorithms, looking for things like retaliatory pricing, price matching, and aggressive responses to price drops but not price rises.
Once collusive pricing rules are uncovered, computer scientists need to come up with ways to constrain algorithms from adopting them without sacrificing their clear efficiency benefits. It could also be helpful to make preventing this kind of collusive behavior the responsibility of the companies deploying them, with stiff penalties for those who don’t keep their algorithms in check.
One problem, though, is that algorithms may evolve strategies that humans would never think of, which could make spotting this behavior tricky. Imbuing courts with the technical knowledge and capacity to investigate this kind of evidence will also prove difficult, but getting to grips with these problems is an even more pressing challenge than it might seem at first.
While anti-competitive pricing algorithms could wreak havoc, there are plenty of other arenas where collusive AI could have even more insidious effects, from military applications to healthcare and insurance. Developing the capacity to predict and prevent AI scheming against us will likely be crucial going forward.
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#437791 Is the Pandemic Spurring a Robot ...
“Are robots really destined to take over restaurant kitchens?” This was the headline of an article published by Eater four years ago. One of the experts interviewed was Siddhartha Srinivasa, at the time professor of the Robotics Institute at Carnegie Mellon University and currently director of Robotics and AI for Amazon. He said, “I’d love to make robots unsexy. It’s weird to say this, but when something becomes unsexy, it means that it works so well that you don’t have to think about it. You don’t stare at your dishwasher as it washes your dishes in fascination, because you know it’s gonna work every time… I want to get robots to that stage of reliability.”
Have we managed to get there over the last four years? Are robots unsexy yet? And how has the pandemic changed the trajectory of automation across industries?
The Covid Effect
The pandemic has had a massive economic impact all over the world, and one of the problems faced by many companies has been keeping their businesses running without putting employees at risk of infection. Many organizations are seeking to remain operational in the short term by automating tasks that would otherwise be carried out by humans. According to Digital Trends, since the start of the pandemic we have seen a significant increase in automation efforts in manufacturing, meat packing, grocery stores and more. In a June survey, 44 percent of corporate financial officers said they were considering more automation in response to coronavirus.
MIT economist David Autor described the economic crisis and the Covid-19 pandemic as “an event that forces automation.” But he added that Covid-19 created a kind of disruption that has forced automation in sectors and activities with a shortage of workers, while at the same time there has been no reduction in demand. This hasn’t taken place in hospitality, where demand has practically disappeared, but it is still present in agriculture and distribution. The latter is being altered by the rapid growth of e-commerce, with more efficient and automated warehouses that can provide better service.
China Leads the Way
China is currently in a unique position to lead the world’s automation economy. Although the country boasts a huge workforce, labor costs have multiplied by 10 over the past 20 years. As the world’s factory, China has a strong incentive to automate its manufacturing sector, which enjoys a solid leadership in high quality products. China is currently the largest and fastest-growing market in the world for industrial robotics, with a 21 percent increase up to $5.4 billion in 2019. This represents one third of global sales. As a result, Chinese companies are developing a significant advantage in terms of learning to work with metallic colleagues.
The reasons behind this Asian dominance are evident: the population has a greater capacity and need for tech adoption. A large percentage of the population will soon be of retirement age, without an equivalent younger demographic to replace it, leading to a pressing need to adopt automation in the short term.
China is well ahead of other countries in restaurant automation. As reported in Bloomberg, in early 2020 UBS Group AG conducted a survey of over 13,000 consumers in different countries and found that 64 percent of Chinese participants had ordered meals through their phones at least once a week, compared to a mere 17 percent in the US. As digital ordering gains ground, robot waiters and chefs are likely not far behind. The West harbors a mistrust towards non-humans that the East does not.
The Robot Evolution
The pandemic was a perfect excuse for robots to replace us. But despite the hype around this idea, robots have mostly disappointed during the pandemic.
Just over 66 different kinds of “social” robots have been piloted in hospitals, health centers, airports, office buildings, and other public and private spaces in response to the pandemic, according to a study from researchers at Pompeu Fabra University (Barcelona, Spain). Their survey looked at 195 robot deployments across 35 countries including China, the US, Thailand, and Hong Kong.
But if the “robot revolution” is a movement in which automation, robotics, and artificial intelligence proliferate through the value chain of various industries, bringing a paradigm shift in how we produce, consume, and distribute products—it hasn’t happened yet.
But there’s a more nuanced answer: rather than a revolution, we’re seeing an incremental robot evolution. It’s a trend that will likely accelerate over the next five years, particularly when 5G takes center stage and robotics as a field leaves behind imitation and evolves independently.
Automation Anxiety
Why don’t we finally welcome the long-promised robotic takeover? Despite progress in AI and increased adoption of industrial robots, consumer-facing robotic products are not nearly as ubiquitous as popular culture predicted decades ago. As Amara’s Law says: “We tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run.” It seems we are living through the Gartner hype cycle.
People have a complicated relationship with robots, torn between admiring them, fearing them, rejecting them, and even boycotting them, as has happened in the automobile industry.
Retail robot in a Walmart store. Credit: Bossa Nova Robotics
Walmart terminated its contract with Bossa Nova and withdrew its 1,000 inventory robots from its stores because the company was concerned about how shoppers were reacting to seeing the six-foot robots in the aisles.
With road blocks like this, will the World Economic Forum’s prediction of almost half of tasks being carried out by machines by 2025 come to pass?
At the rate we’re going, it seems unlikely, even with the boost in automation caused by the pandemic. Robotics will continue to advance its capabilities, and will take over more human jobs as it does so, but it’s unlikely we’ll hit a dramatic inflection point that could be described as a “revolution.” Instead, the robot evolution will happen the way most societal change does: incrementally, with time for people to adapt both practically and psychologically.
For now though, robots are still pretty sexy.
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