Tag Archives: effects
#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.
Image Credit: Pexels from Pixabay Continue reading
Posted in Human Robots
#437693 Video Friday: Drone Helps Explore ...
Video Friday is your weekly selection of awesome robotics videos, collected by your Automaton bloggers. We’ll also be posting a weekly calendar of upcoming robotics events for the next few months; here's what we have so far (send us your events!):
ICRES 2020 – September 28-29, 2020 – Taipei, Taiwan
AUVSI EXPONENTIAL 2020 – October 5-8, 2020 – [Online Conference]
IROS 2020 – October 25-29, 2020 – Las Vegas, Nev., USA
CYBATHLON 2020 – November 13-14, 2020 – [Online Event]
ICSR 2020 – November 14-16, 2020 – Golden, Colo., USA
Let us know if you have suggestions for next week, and enjoy today's videos.
Clearpath Robotics and Boston Dynamics were obviously destined to partner up with Spot, because Spot 100 percent stole its color scheme from Clearpath, which has a monopoly on yellow and black robots. But seriously, the news here is that thanks to Clearpath, Spot now works seamlessly with ROS.
[ Clearpath Robotics ]
A new video created by Swisscom Ventures highlights a research expedition sponsored by Moncler to explore the deepest ice caves in the world using Flyability’s Elios drone. […] The expedition was sponsored by apparel company Moncler and took place over two weeks in 2018 on the Greenland ice sheet, the second largest body of ice in the world after Antarctica. Research focused on an area about 80 kilometers east of Kangerlussuaq, where scientists wanted to study the movement of water deep underground to better understand the effects of climate change on the melting ice.
[ Flyability ]
Shane Wighton of the “Stuff Made Here” YouTube channel, whose terrifying haircut machine we featured a few months ago, has improved on his robotic basketball hoop. It’s actually more than an improvement: It’s a complete redesign that nearly drove Wighton insane. But the result is pretty cool. It’s fun to watch him building a highly complicated system while always seeking simple and elegant designs for its components.
[ Stuff Made Here ]
SpaceX rockets are really just giant, explosion-powered drones that go into space sometimes. So let's watch more videos of them! This one is sped up, and puts a flight into just a couple of minutes.
[ SpaceX ]
Neato Robotics makes some solid autonomous vacuums, and these incremental upgrades feature improved battery life and better air filters.
[ Neato Robotics ]
A full-scale engineering model of NASA's Perseverance Mars rover now resides in a garage facing the Mars Yard at NASA's Jet Propulsion Laboratory in Southern California.
This vehicle system test bed rover (VSTB) is also known as OPTIMISM, which stands for Operational Perseverance Twin for Integration of Mechanisms and Instruments Sent to Mars. OPTIMISM was built in a warehouselike assembly room near the Mars Yard – an area that simulates the Red Planet's rocky surface. The rover helps the mission test hardware and software before it’s transmitted to the real rover on Mars. OPTIMISM will share the space with the Curiosity rover's twin MAGGIE.
[ JPL ]
Heavy asset industries like shipping, oil and gas, and manufacturing are grounded in repetitive tasks like locating items on large industrial sites — a tedious task that can take as long 45 minutes to find critical items like a forklift in an area that spans the size of multiple football fields. Not only is this work boring, it’s dangerous and inefficient. Robots like Spot, however, love this sort of work.
Spot can provide real-time updates on the location of assets and complete other mundane tasks. In this case, Spot is using software from Cognite to roam the vast shipyard to locate and manage more than 100,000 assets stored across the facility. What used to take humans hours can be managed on an ongoing basis by Spot — leaving employees to focus on more strategic tasks.
[ Cognite ]
The KNEXT Barista system helps high volume premium coffee providers who want to offer artisan coffee specialities in consistent quality.
[ Kuka ]
In this paper, we study this idea of generality in the locomotion domain. We develop a learning framework that can learn sophisticated locomotion behavior for a wide spectrum of legged robots, such as bipeds, tripeds, quadrupeds and hexapods, including wheeled variants. Our learning framework relies on a data-efficient, off-policy multi-task RL algorithm and a small set of reward functions that are semantically identical across robots.
[ DeepMind ]
Thanks Dave!
Even though it seems like the real risk of COVID is catching it from another person, robotics companies are doing what they can with UVC disinfecting systems.
[ BlueBotics ]
Aeditive develop robotic 3D printing solutions for the production of concrete components. At the heart of their production plant are two large robots that cooperate to manufacture the component. The automation technology they build on is a robotic shotcrete process. During this process, they apply concrete layer by layer and thus manufacture complete components. This means that their customers no longer dependent on formwork, which is expensive and time-consuming to create. Instead, their customers can manufacture components directly on a steel pallet without these moulds.
[ Aeditive ]
Something BIG is coming next month from Robotiq!
My guess: an elephant.
[ Robotiq ]
TurtleBot3 is a great little home robot, as long as you have a TurtleBot3-sized home.
[ Robotis ]
How do you calculate the coordinated movements of two robot arms so they can accurately guide a highly flexible tool? ETH researchers have integrated all aspects of the optimisation calculations into an algorithm. The hot-wire cutter will be used, among other things, to develop building blocks for a mortar-free structure.
[ ETH Zurich ]
And now, this.
[ RobotStart ] Continue reading
Posted in Human Robots