Tag Archives: economy

#436252 After AI, Fashion and Shopping Will ...

AI and broadband are eating retail for breakfast. In the first half of 2019, we’ve seen 19 retailer bankruptcies. And the retail apocalypse is only accelerating.

What’s coming next is astounding. Why drive when you can speak? Revenue from products purchased via voice commands is expected to quadruple from today’s US$2 billion to US$8 billion by 2023.

Virtual reality, augmented reality, and 3D printing are converging with artificial intelligence, drones, and 5G to transform shopping on every dimension. And as a result, shopping is becoming dematerialized, demonetized, democratized, and delocalized… a top-to-bottom transformation of the retail world.

Welcome to Part 1 of our series on the future of retail, a deep-dive into AI and its far-reaching implications.

Let’s dive in.

A Day in the Life of 2029
Welcome to April 21, 2029, a sunny day in Dallas. You’ve got a fundraising luncheon tomorrow, but nothing to wear. The last thing you want to do is spend the day at the mall.

No sweat. Your body image data is still current, as you were scanned only a week ago. Put on your VR headset and have a conversation with your AI. “It’s time to buy a dress for tomorrow’s event” is all you have to say. In a moment, you’re teleported to a virtual clothing store. Zero travel time. No freeway traffic, parking hassles, or angry hordes wielding baby strollers.

Instead, you’ve entered your own personal clothing store. Everything is in your exact size…. And I mean everything. The store has access to nearly every designer and style on the planet. Ask your AI to show you what’s hot in Shanghai, and presto—instant fashion show. Every model strutting down the runway looks exactly like you, only dressed in Shanghai’s latest.

When you’re done selecting an outfit, your AI pays the bill. And as your new clothes are being 3D printed at a warehouse—before speeding your way via drone delivery—a digital version has been added to your personal inventory for use at future virtual events.

The cost? Thanks to an era of no middlemen, less than half of what you pay in stores today. Yet this future is not all that far off…

Digital Assistants
Let’s begin with the basics: the act of turning desire into purchase.

Most of us navigate shopping malls or online marketplaces alone, hoping to stumble across the right item and fit. But if you’re lucky enough to employ a personal assistant, you have the luxury of describing what you want to someone who knows you well enough to buy that exact right thing most of the time.

For most of us who don’t, enter the digital assistant.

Right now, the four horsemen of the retail apocalypse are waging war for our wallets. Amazon’s Alexa, Google’s Now, Apple’s Siri, and Alibaba’s Tmall Genie are going head-to-head in a battle to become the platform du jour for voice-activated, AI-assisted commerce.

For baby boomers who grew up watching Captain Kirk talk to the Enterprise’s computer on Star Trek, digital assistants seem a little like science fiction. But for millennials, it’s just the next logical step in a world that is auto-magical.

And as those millennials enter their consumer prime, revenue from products purchased via voice-driven commands is projected to leap from today’s US$2 billion to US$8 billion by 2023.

We are already seeing a major change in purchasing habits. On average, consumers using Amazon Echo spent more than standard Amazon Prime customers: US$1,700 versus US$1,300.

And as far as an AI fashion advisor goes, those too are here, courtesy of both Alibaba and Amazon. During its annual Singles’ Day (November 11) shopping festival, Alibaba’s FashionAI concept store uses deep learning to make suggestions based on advice from human fashion experts and store inventory, driving a significant portion of the day’s US$25 billion in sales.

Similarly, Amazon’s shopping algorithm makes personalized clothing recommendations based on user preferences and social media behavior.

Customer Service
But AI is disrupting more than just personalized fashion and e-commerce. Its next big break will take place in the customer service arena.

According to a recent Zendesk study, good customer service increases the possibility of a purchase by 42 percent, while bad customer service translates into a 52 percent chance of losing that sale forever. This means more than half of us will stop shopping at a store due to a single disappointing customer service interaction. These are significant financial stakes. They’re also problems perfectly suited for an AI solution.

During the 2018 Google I/O conference, CEO Sundar Pichai demoed the Google Duplex, their next generation digital assistant. Pichai played the audience a series of pre-recorded phone calls made by Google Duplex. The first call made a reservation at a restaurant, the second one booked a haircut appointment, amusing the audience with a long “hmmm” mid-call.

In neither case did the person on the other end of the phone have any idea they were talking to an AI. The system’s success speaks to how seamlessly AI can blend into our retail lives and how convenient it will continue to make them. The same technology Pichai demonstrated that can make phone calls for consumers can also answer phones for retailers—a development that’s unfolding in two different ways:

(1) Customer service coaches: First, for organizations interested in keeping humans involved, there’s Beyond Verbal, a Tel Aviv-based startup that has built an AI customer service coach. Simply by analyzing customer voice intonation, the system can tell whether the person on the phone is about to blow a gasket, is genuinely excited, or anything in between.

Based on research of over 70,000 subjects in more than 30 languages, Beyond Verbal’s app can detect 400 different markers of human moods, attitudes, and personality traits. Already it’s been integrated in call centers to help human sales agents understand and react to customer emotions, making those calls more pleasant, and also more profitable.

For example, by analyzing word choice and vocal style, Beyond Verbal’s system can tell what kind of shopper the person on the line actually is. If they’re an early adopter, the AI alerts the sales agent to offer them the latest and greatest. If they’re more conservative, it suggests items more tried-and-true.

(2) Replacing customer service agents: Second, companies like New Zealand’s Soul Machines are working to replace human customer service agents altogether. Powered by IBM’s Watson, Soul Machines builds lifelike customer service avatars designed for empathy, making them one of many helping to pioneer the field of emotionally intelligent computing.

With their technology, 40 percent of all customer service interactions are now resolved with a high degree of satisfaction, no human intervention needed. And because the system is built using neural nets, it’s continuously learning from every interaction—meaning that percentage will continue to improve.

The number of these interactions continues to grow as well. Software manufacturer Autodesk now includes a Soul Machine avatar named AVA (Autodesk Virtual Assistant) in all of its new offerings. She lives in a small window on the screen, ready to soothe tempers, troubleshoot problems, and forever banish those long tech support hold times.

For Daimler Financial Services, Soul Machines built an avatar named Sarah, who helps customers with arguably three of modernity’s most annoying tasks: financing, leasing, and insuring a car.

This isn’t just about AI—it’s about AI converging with additional exponentials. Add networks and sensors to the story and it raises the scale of disruption, upping the FQ—the frictionless quotient—in our frictionless shopping adventure.

Final Thoughts
AI makes retail cheaper, faster, and more efficient, touching everything from customer service to product delivery. It also redefines the shopping experience, making it frictionless and—once we allow AI to make purchases for us—ultimately invisible.

Prepare for a future in which shopping is dematerialized, demonetized, democratized, and delocalized—otherwise known as “the end of malls.”

Of course, if you wait a few more years, you’ll be able to take an autonomous flying taxi to Westfield’s Destination 2028—so perhaps today’s converging exponentials are not so much spelling the end of malls but rather the beginning of an experience economy far smarter, more immersive, and whimsically imaginative than today’s shopping centers.

Either way, it’s a top-to-bottom transformation of the retail world.

Over the coming blog series, we will continue our discussion of the future of retail. Stay tuned to learn new implications for your business and how to future-proof your company in an age of smart, ultra-efficient, experiential retail.

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This article originally appeared on diamandis.com. Read the original article here.

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Posted in Human Robots

#436200 AI and the Future of Work: The Economic ...

This week at MIT, academics and industry officials compared notes, studies, and predictions about AI and the future of work. During the discussions, an insurance company executive shared details about one AI program that rolled out at his firm earlier this year. A chatbot the company introduced, the executive said, now handles 150,000 calls per month.

Later in the day, a panelist—David Fanning, founder of PBS’s Frontline—remarked that this statistic is emblematic of broader fears he saw when reporting a new Frontline documentary about AI. “People are scared,” Fanning said of the public’s AI anxiety.

Fanning was part of a daylong symposium about AI’s economic consequences—good, bad, and otherwise—convened by MIT’s Task Force on the Work of the Future.

“Dig into every industry, and you’ll find AI changing the nature of work,” said Daniela Rus, director of MIT’s Computer Science and Artificial Intelligence Laboratory (CSAIL). She cited recent McKinsey research that found 45 percent of the work people are paid to do today can be automated with currently available technologies. Those activities, McKinsey found, represent some US $2 trillion in wages.

However, the threat of automation—whether by AI or other technologies—isn’t as new as technologists on America’s coasts seem to believe, said panelist Fred Goff, CEO of Jobcase, Inc.

“If you live in Detroit or Toledo, where I come from, technology has been displacing jobs for the last half-century,” Goff said. “I don’t think that most people in this country have the increased anxiety that the coasts do, because they’ve been living this.”

Goff added that the challenge AI poses for the workforce is not, as he put it, “getting coal miners to code.” Rather, he said, as AI automates some jobs, it will also open opportunities for “reskilling” that may have nothing to do with AI or automation. He touted trade schools—teaching skills like welding, plumbing, and electrical work—and certification programs for sales industry software packages like Salesforce.

On the other hand, a documentarian who reported another recent program on AI—Krishna Andavolu, senior correspondent for Vice Media—said “reskilling” may not be an easy answer.

“People in rooms like this … don’t realize that a lot of people don’t want to work that much,” Andavolu said. “They’re not driven by passion for their career, they’re driven by passion for life. We’re telling a lot of these workers that they need to reskill. But to a lot of people that sounds like, ‘I’ve got to work twice as hard for what I have now.’ That sounds scary. We underestimate that at our peril.”

Part of the problem with “reskilling,” Andavolu said, is that some high-growth industries involve caregiving for seniors and in medical facilities—roles which are traditionally considered “feminized” careers. Destigmatizing these jobs, and increasing the pay to match the salaries of displaced jobs like long-haul truck drivers, is another challenge.

Daron Acemoglu, MIT Institute Professor of Economics, faulted the comparably slim funding of academic research into AI.

“There is nothing preordained about the progress of technology,” he said. Computers, the Internet, antibiotics, and sensors all grew out of government and academic research programs. What he called the “blue-sky thinking” of non-corporate AI research can also develop applications that are not purely focused on maximizing profits.

American companies, Acemoglu said, get tax breaks for capital R&D—but not for developing new technologies for their employees. “We turn around and [tell companies], ‘Use your technologies to empower workers,’” he said. “But why should they do that? Hiring workers is expensive in many ways. And we’re subsidizing capital.”

Said Sarita Gupta, director of the Ford Foundation’s Future of Work(ers) Program, “Low and middle income workers have for over 30 years been experiencing stagnant and declining pay, shrinking benefits, and less power on the job. Now technology is brilliant at enabling scale. But the question we sit with is—how do we make sure that we’re not scaling these longstanding problems?”

Andrew McAfee, co-director of MIT’s Initiative on the Digital Economy, said AI may not reduce the number of jobs available in the workplace today. But the quality of those jobs is another story. He cited the Dutch economist Jan Tinbergen who decades ago said that “Inequality is a race between technology and education.”

McAfee said, ultimately, the time to solve the economic problems AI poses for workers in the United States is when the U.S. economy is doing well—like right now.

“We do have the wind at our backs,” said Elisabeth Reynolds, executive director of MIT’s Task Force on the Work of the Future.

“We have some breathing room right now,” McAfee agreed. “Economic growth has been pretty good. Unemployment is pretty low. Interest rates are very, very low. We might not have that war chest in the future.” Continue reading

Posted in Human Robots

#436178 Within 10 Years, We’ll Travel by ...

What’s faster than autonomous vehicles and flying cars?

Try Hyperloop, rocket travel, and robotic avatars. Hyperloop is currently working towards 670 mph (1080 kph) passenger pods, capable of zipping us from Los Angeles to downtown Las Vegas in under 30 minutes. Rocket Travel (think SpaceX’s Starship) promises to deliver you almost anywhere on the planet in under an hour. Think New York to Shanghai in 39 minutes.

But wait, it gets even better…

As 5G connectivity, hyper-realistic virtual reality, and next-gen robotics continue their exponential progress, the emergence of “robotic avatars” will all but nullify the concept of distance, replacing human travel with immediate remote telepresence.

Let’s dive in.

Hyperloop One: LA to SF in 35 Minutes
Did you know that Hyperloop was the brainchild of Elon Musk? Just one in a series of transportation innovations from a man determined to leave his mark on the industry.

In 2013, in an attempt to shorten the long commute between Los Angeles and San Francisco, the California state legislature proposed a $68 billion budget allocation for what appeared to be the slowest and most expensive bullet train in history.

Musk was outraged. The cost was too high, the train too sluggish. Teaming up with a group of engineers from Tesla and SpaceX, he published a 58-page concept paper for “The Hyperloop,” a high-speed transportation network that used magnetic levitation to propel passenger pods down vacuum tubes at speeds of up to 670 mph. If successful, it would zip you across California in 35 minutes—just enough time to watch your favorite sitcom.

In January 2013, venture capitalist Shervin Pishevar, with Musk’s blessing, started Hyperloop One with myself, Jim Messina (former White House Deputy Chief of Staff for President Obama), and tech entrepreneurs Joe Lonsdale and David Sacks as founding board members. A couple of years after that, the Virgin Group invested in this idea, Richard Branson was elected chairman, and Virgin Hyperloop One was born.

“The Hyperloop exists,” says Josh Giegel, co-founder and chief technology officer of Hyperloop One, “because of the rapid acceleration of power electronics, computational modeling, material sciences, and 3D printing.”

Thanks to these convergences, there are now ten major Hyperloop One projects—in various stages of development—spread across the globe. Chicago to DC in 35 minutes. Pune to Mumbai in 25 minutes. According to Giegel, “Hyperloop is targeting certification in 2023. By 2025, the company plans to have multiple projects under construction and running initial passenger testing.”

So think about this timetable: Autonomous car rollouts by 2020. Hyperloop certification and aerial ridesharing by 2023. By 2025—going on vacation might have a totally different meaning. Going to work most definitely will.

But what’s faster than Hyperloop?

Rocket Travel
As if autonomous vehicles, flying cars, and Hyperloop weren’t enough, in September of 2017, speaking at the International Astronautical Congress in Adelaide, Australia, Musk promised that for the price of an economy airline ticket, his rockets will fly you “anywhere on Earth in under an hour.”

Musk wants to use SpaceX’s megarocket, Starship, which was designed to take humans to Mars, for terrestrial passenger delivery. The Starship travels at 17,500 mph. It’s an order of magnitude faster than the supersonic jet Concorde.

Think about what this actually means: New York to Shanghai in 39 minutes. London to Dubai in 29 minutes. Hong Kong to Singapore in 22 minutes.

So how real is the Starship?

“We could probably demonstrate this [technology] in three years,” Musk explained, “but it’s going to take a while to get the safety right. It’s a high bar. Aviation is incredibly safe. You’re safer on an airplane than you are at home.”

That demonstration is proceeding as planned. In September 2017, Musk announced his intentions to retire his current rocket fleet, both the Falcon 9 and Falcon Heavy, and replace them with the Starships in the 2020s.

Less than a year later, LA mayor Eric Garcetti tweeted that SpaceX was planning to break ground on an 18-acre rocket production facility near the port of Los Angeles. And April of this year marked an even bigger milestone: the very first test flights of the rocket.

Thus, sometime in the next decade or so, “off to Europe for lunch” may become a standard part of our lexicon.

Avatars
Wait, wait, there’s one more thing.

While the technologies we’ve discussed will decimate the traditional transportation industry, there’s something on the horizon that will disrupt travel itself. What if, to get from A to B, you didn’t have to move your body? What if you could quote Captain Kirk and just say “Beam me up, Scotty”?

Well, shy of the Star Trek transporter, there’s the world of avatars.

An avatar is a second self, typically in one of two forms. The digital version has been around for a couple of decades. It emerged from the video game industry and was popularized by virtual world sites like Second Life and books-turned-blockbusters like Ready Player One.

A VR headset teleports your eyes and ears to another location, while a set of haptic sensors shifts your sense of touch. Suddenly, you’re inside an avatar inside a virtual world. As you move in the real world, your avatar moves in the virtual.

Use this technology to give a lecture and you can do it from the comfort of your living room, skipping the trip to the airport, the cross-country flight, and the ride to the conference center.

Robots are the second form of avatars. Imagine a humanoid robot that you can occupy at will. Maybe, in a city far from home, you’ve rented the bot by the minute—via a different kind of ridesharing company—or maybe you have spare robot avatars located around the country.

Either way, put on VR goggles and a haptic suit, and you can teleport your senses into that robot. This allows you to walk around, shake hands, and take action—all without leaving your home.

And like the rest of the tech we’ve been talking about, even this future isn’t far away.

In 2018, entrepreneur Dr. Harry Kloor recommended to All Nippon Airways (ANA), Japan’s largest airline, the design of an Avatar XPRIZE. ANA then funded this vision to the tune of $10 million to speed the development of robotic avatars. Why? Because ANA knows this is one of the technologies likely to disrupt their own airline industry, and they want to be ready.

ANA recently announced its “newme” robot that humans can use to virtually explore new places. The colorful robots have Roomba-like wheeled bases and cameras mounted around eye-level, which capture surroundings viewable through VR headsets.

If the robot was stationed in your parents’ home, you could cruise around the rooms and chat with your family at any time of day. After revealing the technology at Tokyo’s Combined Exhibition of Advanced Technologies in October, ANA plans to deploy 1,000 newme robots by 2020.

With virtual avatars like newme, geography, distance, and cost will no longer limit our travel choices. From attractions like the Eiffel Tower or the pyramids of Egypt to unreachable destinations like the moon or deep sea, we will be able to transcend our own physical limits, explore the world and outer space, and access nearly any experience imaginable.

Final Thoughts
Individual car ownership has enjoyed over a century of ascendancy and dominance.

The first real threat it faced—today’s ride-sharing model—only showed up in the last decade. But that ridesharing model won’t even get ten years to dominate. Already, it’s on the brink of autonomous car displacement, which is on the brink of flying car disruption, which is on the brink of Hyperloop and rockets-to-anywhere decimation. Plus, avatars.

The most important part: All of this change will happen over the next ten years. Welcome to a future of human presence where the only constant is rapid change.

Note: This article—an excerpt from my next book The Future Is Faster Than You Think, co-authored with Steven Kotler, to be released January 28th, 2020—originally appeared on my tech blog at diamandis.com. Read the original article here.

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Posted in Human Robots

#435804 New AI Systems Are Here to Personalize ...

The narratives about automation and its impact on jobs go from urgent to hopeful and everything in between. Regardless where you land, it’s hard to argue against the idea that technologies like AI and robotics will change our economy and the nature of work in the coming years.

A recent World Economic Forum report noted that some estimates show automation could displace 75 million jobs by 2022, while at the same time creating 133 million new roles. While these estimates predict a net positive for the number of new jobs in the coming decade, displaced workers will need to learn new skills to adapt to the changes. If employees can’t be retrained quickly for jobs in the changing economy, society is likely to face some degree of turmoil.

According to Bryan Talebi, CEO and founder of AI education startup Ahura AI, the same technologies erasing and creating jobs can help workers bridge the gap between the two.

Ahura is developing a product to capture biometric data from adult learners who are using computers to complete online education programs. The goal is to feed this data to an AI system that can modify and adapt their program to optimize for the most effective teaching method.

While the prospect of a computer recording and scrutinizing a learner’s behavioral data will surely generate unease across a society growing more aware and uncomfortable with digital surveillance, some people may look past such discomfort if they experience improved learning outcomes. Users of the system would, in theory, have their own personalized instruction shaped specifically for their unique learning style.

And according to Talebi, their systems are showing some promise.

“Based on our early tests, our technology allows people to learn three to five times faster than traditional education,” Talebi told me.

Currently, Ahura’s system uses the video camera and microphone that come standard on the laptops, tablets, and mobile devices most students are using for their learning programs.

With the computer’s camera Ahura can capture facial movements and micro expressions, measure eye movements, and track fidget score (a measure of how much a student moves while learning). The microphone tracks voice sentiment, and the AI leverages natural language processing to review the learner’s word usage.

From this collection of data Ahura can, according to Talebi, identify the optimal way to deliver content to each individual.

For some users that might mean a video tutorial is the best style of learning, while others may benefit more from some form of experiential or text-based delivery.

“The goal is to alter the format of the content in real time to optimize for attention and retention of the information,” said Talebi. One of Ahura’s main goals is to reduce the frequency with which students switch from their learning program to distractions like social media.

“We can now predict with a 60 percent confidence interval ten seconds before someone switches over to Facebook or Instagram. There’s a lot of work to do to get that up to a 95 percent level, so I don’t want to overstate things, but that’s a promising indication that we can work to cut down on the amount of context-switching by our students,” Talebi said.

Talebi repeatedly mentioned his ambition to leverage the same design principles used by Facebook, Twitter, and others to increase the time users spend on those platforms, but instead use them to design more compelling and even addictive education programs that can compete for attention with social media.

But the notion that Ahura’s system could one day be used to create compelling or addictive education necessarily presses against a set of justified fears surrounding data privacy. Growing anxiety surrounding the potential to misuse user data for social manipulation is widespread.

“Of course there is a real danger, especially because we are collecting so much data about our users which is specifically connected to how they consume content. And because we are looking so closely at the ways people interact with content, it’s incredibly important that this technology never be used for propaganda or to sell things to people,” Talebi tried to assure me.

Unsurprisingly (and worrying), using this AI system to sell products to people is exactly where some investors’ ambitions immediately turn once they learn about the company’s capabilities, according to Talebi. During our discussion Talebi regularly cited the now infamous example of Cambridge Analytica, the political consulting firm hired by the Trump campaign to run a psychographically targeted persuasion campaign on the US population during the most recent presidential election.

“It’s important that we don’t use this technology in those ways. We’re aware that things can go sideways, so we’re hoping to put up guardrails to ensure our system is helping and not harming society,” Talebi said.

Talebi will surely need to take real action on such a claim, but says the company is in the process of identifying a structure for an ethics review board—one that carries significant influence with similar voting authority as the executive team and the regular board.

“Our goal is to build an ethics review board that has teeth, is diverse in both gender and background but also in thought and belief structures. The idea is to have our ethics review panel ensure we’re building things ethically,” he said.

Data privacy appears to be an important issue for Talebi, who occasionally referenced a major competitor in the space based in China. According to a recent article from MIT Tech Review outlining the astonishing growth of AI-powered education platforms in China, data privacy concerns may be less severe there than in the West.

Ahura is currently developing upgrades to an early alpha-stage prototype, but is already capturing data from students from at least one Ivy League school and a variety of other places. Their next step is to roll out a working beta version to over 200,000 users as part of a partnership with an unnamed corporate client who will be measuring the platform’s efficacy against a control group.

Going forward, Ahura hopes to add to its suite of biometric data capture by including things like pupil dilation and facial flushing, heart rate, sleep patterns, or whatever else may give their system an edge in improving learning outcomes.

As information technologies increasingly automate work, it’s likely we’ll also see rapid changes to our labor systems. It’s also looking increasingly likely that those same technologies will be used to improve our ability to give people the right skills when they need them. It may be one way to address the challenges automation is sure to bring.

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Posted in Human Robots

#435765 The Four Converging Technologies Giving ...

How each of us sees the world is about to change dramatically.

For all of human history, the experience of looking at the world was roughly the same for everyone. But boundaries between the digital and physical are beginning to fade.

The world around us is gaining layer upon layer of digitized, virtually overlaid information—making it rich, meaningful, and interactive. As a result, our respective experiences of the same environment are becoming vastly different, personalized to our goals, dreams, and desires.

Welcome to Web 3.0, or the Spatial Web. In version 1.0, static documents and read-only interactions limited the internet to one-way exchanges. Web 2.0 provided quite an upgrade, introducing multimedia content, interactive web pages, and participatory social media. Yet, all this was still mediated by two-dimensional screens.

Today, we are witnessing the rise of Web 3.0, riding the convergence of high-bandwidth 5G connectivity, rapidly evolving AR eyewear, an emerging trillion-sensor economy, and powerful artificial intelligence.

As a result, we will soon be able to superimpose digital information atop any physical surrounding—freeing our eyes from the tyranny of the screen, immersing us in smart environments, and making our world endlessly dynamic.

In the third post of our five-part series on augmented reality, we will explore the convergence of AR, AI, sensors, and blockchain and dive into the implications through a key use case in manufacturing.

A Tale of Convergence
Let’s deconstruct everything beneath the sleek AR display.

It all begins with graphics processing units (GPUs)—electric circuits that perform rapid calculations to render images. (GPUs can be found in mobile phones, game consoles, and computers.)

However, because AR requires such extensive computing power, single GPUs will not suffice. Instead, blockchain can now enable distributed GPU processing power, and blockchains specifically dedicated to AR holographic processing are on the rise.

Next up, cameras and sensors will aggregate real-time data from any environment to seamlessly integrate physical and virtual worlds. Meanwhile, body-tracking sensors are critical for aligning a user’s self-rendering in AR with a virtually enhanced environment. Depth sensors then provide data for 3D spatial maps, while cameras absorb more surface-level, detailed visual input. In some cases, sensors might even collect biometric data, such as heart rate and brain activity, to incorporate health-related feedback in our everyday AR interfaces and personal recommendation engines.

The next step in the pipeline involves none other than AI. Processing enormous volumes of data instantaneously, embedded AI algorithms will power customized AR experiences in everything from artistic virtual overlays to personalized dietary annotations.

In retail, AIs will use your purchasing history, current closet inventory, and possibly even mood indicators to display digitally rendered items most suitable for your wardrobe, tailored to your measurements.

In healthcare, smart AR glasses will provide physicians with immediately accessible and maximally relevant information (parsed from the entirety of a patient’s medical records and current research) to aid in accurate diagnoses and treatments, freeing doctors to engage in the more human-centric tasks of establishing trust, educating patients and demonstrating empathy.

Image Credit: PHD Ventures.
Convergence in Manufacturing
One of the nearest-term use cases of AR is manufacturing, as large producers begin dedicating capital to enterprise AR headsets. And over the next ten years, AR will converge with AI, sensors, and blockchain to multiply manufacturer productivity and employee experience.

(1) Convergence with AI
In initial application, digital guides superimposed on production tables will vastly improve employee accuracy and speed, while minimizing error rates.

Already, the International Air Transport Association (IATA) — whose airlines supply 82 percent of air travel — recently implemented industrial tech company Atheer’s AR headsets in cargo management. And with barely any delay, IATA reported a whopping 30 percent improvement in cargo handling speed and no less than a 90 percent reduction in errors.

With similar success rates, Boeing brought Skylight’s smart AR glasses to the runway, now used in the manufacturing of hundreds of airplanes. Sure enough—the aerospace giant has now seen a 25 percent drop in production time and near-zero error rates.

Beyond cargo management and air travel, however, smart AR headsets will also enable on-the-job training without reducing the productivity of other workers or sacrificing hardware. Jaguar Land Rover, for instance, implemented Bosch’s Re’flekt One AR solution to gear technicians with “x-ray” vision: allowing them to visualize the insides of Range Rover Sport vehicles without removing any dashboards.

And as enterprise capabilities continue to soar, AIs will soon become the go-to experts, offering support to manufacturers in need of assembly assistance. Instant guidance and real-time feedback will dramatically reduce production downtime, boost overall output, and even help customers struggling with DIY assembly at home.

Perhaps one of the most profitable business opportunities, AR guidance through centralized AI systems will also serve to mitigate supply chain inefficiencies at extraordinary scale. Coordinating moving parts, eliminating the need for manned scanners at each checkpoint, and directing traffic within warehouses, joint AI-AR systems will vastly improve workflow while overseeing quality assurance.

After its initial implementation of AR “vision picking” in 2015, leading courier company DHL recently announced it would continue to use Google’s newest smart lens in warehouses across the world. Motivated by the initial group’s reported 15 percent jump in productivity, DHL’s decision is part of the logistics giant’s $300 million investment in new technologies.

And as direct-to-consumer e-commerce fundamentally transforms the retail sector, supply chain optimization will only grow increasingly vital. AR could very well prove the definitive step for gaining a competitive edge in delivery speeds.

As explained by Vital Enterprises CEO Ash Eldritch, “All these technologies that are coming together around artificial intelligence are going to augment the capabilities of the worker and that’s very powerful. I call it Augmented Intelligence. The idea is that you can take someone of a certain skill level and by augmenting them with artificial intelligence via augmented reality and the Internet of Things, you can elevate the skill level of that worker.”

Already, large producers like Goodyear, thyssenkrupp, and Johnson Controls are using the Microsoft HoloLens 2—priced at $3,500 per headset—for manufacturing and design purposes.

Perhaps the most heartening outcome of the AI-AR convergence is that, rather than replacing humans in manufacturing, AR is an ideal interface for human collaboration with AI. And as AI merges with human capital, prepare to see exponential improvements in productivity, professional training, and product quality.

(2) Convergence with Sensors
On the hardware front, these AI-AR systems will require a mass proliferation of sensors to detect the external environment and apply computer vision in AI decision-making.

To measure depth, for instance, some scanning depth sensors project a structured pattern of infrared light dots onto a scene, detecting and analyzing reflected light to generate 3D maps of the environment. Stereoscopic imaging, using two lenses, has also been commonly used for depth measurements. But leading technology like Microsoft’s HoloLens 2 and Intel’s RealSense 400-series camera implement a new method called “phased time-of-flight” (ToF).

In ToF sensing, the HoloLens 2 uses numerous lasers, each with 100 milliwatts (mW) of power, in quick bursts. The distance between nearby objects and the headset wearer is then measured by the amount of light in the return beam that has shifted from the original signal. Finally, the phase difference reveals the location of each object within the field of view, which enables accurate hand-tracking and surface reconstruction.

With a far lower computing power requirement, the phased ToF sensor is also more durable than stereoscopic sensing, which relies on the precise alignment of two prisms. The phased ToF sensor’s silicon base also makes it easily mass-produced, rendering the HoloLens 2 a far better candidate for widespread consumer adoption.

To apply inertial measurement—typically used in airplanes and spacecraft—the HoloLens 2 additionally uses a built-in accelerometer, gyroscope, and magnetometer. Further equipped with four “environment understanding cameras” that track head movements, the headset also uses a 2.4MP HD photographic video camera and ambient light sensor that work in concert to enable advanced computer vision.

For natural viewing experiences, sensor-supplied gaze tracking increasingly creates depth in digital displays. Nvidia’s work on Foveated AR Display, for instance, brings the primary foveal area into focus, while peripheral regions fall into a softer background— mimicking natural visual perception and concentrating computing power on the area that needs it most.

Gaze tracking sensors are also slated to grant users control over their (now immersive) screens without any hand gestures. Conducting simple visual cues, even staring at an object for more than three seconds, will activate commands instantaneously.

And our manufacturing example above is not the only one. Stacked convergence of blockchain, sensors, AI and AR will disrupt almost every major industry.

Take healthcare, for example, wherein biometric sensors will soon customize users’ AR experiences. Already, MIT Media Lab’s Deep Reality group has created an underwater VR relaxation experience that responds to real-time brain activity detected by a modified version of the Muse EEG. The experience even adapts to users’ biometric data, from heart rate to electro dermal activity (inputted from an Empatica E4 wristband).

Now rapidly dematerializing, sensors will converge with AR to improve physical-digital surface integration, intuitive hand and eye controls, and an increasingly personalized augmented world. Keep an eye on companies like MicroVision, now making tremendous leaps in sensor technology.

While I’ll be doing a deep dive into sensor applications across each industry in our next blog, it’s critical to first discuss how we might power sensor- and AI-driven augmented worlds.

(3) Convergence with Blockchain
Because AR requires much more compute power than typical 2D experiences, centralized GPUs and cloud computing systems are hard at work to provide the necessary infrastructure. Nonetheless, the workload is taxing and blockchain may prove the best solution.

A major player in this pursuit, Otoy aims to create the largest distributed GPU network in the world, called the Render Network RNDR. Built specifically on the Ethereum blockchain for holographic media, and undergoing Beta testing, this network is set to revolutionize AR deployment accessibility.

Alphabet Chairman Eric Schmidt (an investor in Otoy’s network), has even said, “I predicted that 90% of computing would eventually reside in the web based cloud… Otoy has created a remarkable technology which moves that last 10%—high-end graphics processing—entirely to the cloud. This is a disruptive and important achievement. In my view, it marks the tipping point where the web replaces the PC as the dominant computing platform of the future.”

Leveraging the crowd, RNDR allows anyone with a GPU to contribute their power to the network for a commission of up to $300 a month in RNDR tokens. These can then be redeemed in cash or used to create users’ own AR content.

In a double win, Otoy’s blockchain network and similar iterations not only allow designers to profit when not using their GPUs, but also democratize the experience for newer artists in the field.

And beyond these networks’ power suppliers, distributing GPU processing power will allow more manufacturing companies to access AR design tools and customize learning experiences. By further dispersing content creation across a broad network of individuals, blockchain also has the valuable potential to boost AR hardware investment across a number of industry beneficiaries.

On the consumer side, startups like Scanetchain are also entering the blockchain-AR space for a different reason. Allowing users to scan items with their smartphone, Scanetchain’s app provides access to a trove of information, from manufacturer and price, to origin and shipping details.

Based on NEM (a peer-to-peer cryptocurrency that implements a blockchain consensus algorithm), the app aims to make information far more accessible and, in the process, create a social network of purchasing behavior. Users earn tokens by watching ads, and all transactions are hashed into blocks and securely recorded.

The writing is on the wall—our future of brick-and-mortar retail will largely lean on blockchain to create the necessary digital links.

Final Thoughts
Integrating AI into AR creates an “auto-magical” manufacturing pipeline that will fundamentally transform the industry, cutting down on marginal costs, reducing inefficiencies and waste, and maximizing employee productivity.

Bolstering the AI-AR convergence, sensor technology is already blurring the boundaries between our augmented and physical worlds, soon to be near-undetectable. While intuitive hand and eye motions dictate commands in a hands-free interface, biometric data is poised to customize each AR experience to be far more in touch with our mental and physical health.

And underpinning it all, distributed computing power with blockchain networks like RNDR will democratize AR, boosting global consumer adoption at plummeting price points.

As AR soars in importance—whether in retail, manufacturing, entertainment, or beyond—the stacked convergence discussed above merits significant investment over the next decade. The augmented world is only just getting started.

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This article originally appeared on Diamandis.com

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