Tag Archives: exchange

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

Posted on October 1, 2018 by Android

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

In this article, we’ll discuss:

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

Let’s dive right back in…

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Some Important Takeaways…

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

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

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

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

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

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

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

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

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

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

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

How else are artificial intelligence and automation transforming finance?

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

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

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

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

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

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

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

Imagine this near future:

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

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

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

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

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

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

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

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

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

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

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

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

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Posted in Human Robots

#432311 Everyone Is Talking About AI—But Do ...

Posted on March 15, 2018 by Android

In 2017, artificial intelligence attracted $12 billion of VC investment. We are only beginning to discover the usefulness of AI applications. Amazon recently unveiled a brick-and-mortar grocery store that has successfully supplanted cashiers and checkout lines with computer vision, sensors, and deep learning. Between the investment, the press coverage, and the dramatic innovation, “AI” has become a hot buzzword. But does it even exist yet?

At the World Economic Forum Dr. Kai-Fu Lee, a Taiwanese venture capitalist and the founding president of Google China, remarked, “I think it’s tempting for every entrepreneur to package his or her company as an AI company, and it’s tempting for every VC to want to say ‘I’m an AI investor.’” He then observed that some of these AI bubbles could burst by the end of 2018, referring specifically to “the startups that made up a story that isn’t fulfillable, and fooled VCs into investing because they don’t know better.”

However, Dr. Lee firmly believes AI will continue to progress and will take many jobs away from workers. So, what is the difference between legitimate AI, with all of its pros and cons, and a made-up story?

If you parse through just a few stories that are allegedly about AI, you’ll quickly discover significant variation in how people define it, with a blurred line between emulated intelligence and machine learning applications.

I spoke to experts in the field of AI to try to find consensus, but the very question opens up more questions. For instance, when is it important to be accurate to a term’s original definition, and when does that commitment to accuracy amount to the splitting of hairs? It isn’t obvious, and hype is oftentimes the enemy of nuance. Additionally, there is now a vested interest in that hype—$12 billion, to be precise.

This conversation is also relevant because world-renowned thought leaders have been publicly debating the dangers posed by AI. Facebook CEO Mark Zuckerberg suggested that naysayers who attempt to “drum up these doomsday scenarios” are being negative and irresponsible. On Twitter, business magnate and OpenAI co-founder Elon Musk countered that Zuckerberg’s understanding of the subject is limited. In February, Elon Musk engaged again in a similar exchange with Harvard professor Steven Pinker. Musk tweeted that Pinker doesn’t understand the difference between functional/narrow AI and general AI.

Given the fears surrounding this technology, it’s important for the public to clearly understand the distinctions between different levels of AI so that they can realistically assess the potential threats and benefits.

As Smart As a Human?
Erik Cambria, an expert in the field of natural language processing, told me, “Nobody is doing AI today and everybody is saying that they do AI because it’s a cool and sexy buzzword. It was the same with ‘big data’ a few years ago.”

Cambria mentioned that AI, as a term, originally referenced the emulation of human intelligence. “And there is nothing today that is even barely as intelligent as the most stupid human being on Earth. So, in a strict sense, no one is doing AI yet, for the simple fact that we don’t know how the human brain works,” he said.

He added that the term “AI” is often used in reference to powerful tools for data classification. These tools are impressive, but they’re on a totally different spectrum than human cognition. Additionally, Cambria has noticed people claiming that neural networks are part of the new wave of AI. This is bizarre to him because that technology already existed fifty years ago.

However, technologists no longer need to perform the feature extraction by themselves. They also have access to greater computing power. All of these advancements are welcomed, but it is perhaps dishonest to suggest that machines have emulated the intricacies of our cognitive processes.

“Companies are just looking at tricks to create a behavior that looks like intelligence but that is not real intelligence, it’s just a mirror of intelligence. These are expert systems that are maybe very good in a specific domain, but very stupid in other domains,” he said.

This mimicry of intelligence has inspired the public imagination. Domain-specific systems have delivered value in a wide range of industries. But those benefits have not lifted the cloud of confusion.

Assisted, Augmented, or Autonomous
When it comes to matters of scientific integrity, the issue of accurate definitions isn’t a peripheral matter. In a 1974 commencement address at the California Institute of Technology, Richard Feynman famously said, “The first principle is that you must not fool yourself—and you are the easiest person to fool.” In that same speech, Feynman also said, “You should not fool the layman when you’re talking as a scientist.” He opined that scientists should bend over backwards to show how they could be wrong. “If you’re representing yourself as a scientist, then you should explain to the layman what you’re doing—and if they don’t want to support you under those circumstances, then that’s their decision.”

In the case of AI, this might mean that professional scientists have an obligation to clearly state that they are developing extremely powerful, controversial, profitable, and even dangerous tools, which do not constitute intelligence in any familiar or comprehensive sense.

The term “AI” may have become overhyped and confused, but there are already some efforts underway to provide clarity. A recent PwC report drew a distinction between “assisted intelligence,” “augmented intelligence,” and “autonomous intelligence.” Assisted intelligence is demonstrated by the GPS navigation programs prevalent in cars today. Augmented intelligence “enables people and organizations to do things they couldn’t otherwise do.” And autonomous intelligence “establishes machines that act on their own,” such as autonomous vehicles.

Roman Yampolskiy is an AI safety researcher who wrote the book “Artificial Superintelligence: A Futuristic Approach.” I asked him whether the broad and differing meanings might present difficulties for legislators attempting to regulate AI.

Yampolskiy explained, “Intelligence (artificial or natural) comes on a continuum and so do potential problems with such technology. We typically refer to AI which one day will have the full spectrum of human capabilities as artificial general intelligence (AGI) to avoid some confusion. Beyond that point it becomes superintelligence. What we have today and what is frequently used in business is narrow AI. Regulating anything is hard, technology is no exception. The problem is not with terminology but with complexity of such systems even at the current level.”

When asked if people should fear AI systems, Dr. Yampolskiy commented, “Since capability comes on a continuum, so do problems associated with each level of capability.” He mentioned that accidents are already reported with AI-enabled products, and as the technology advances further, the impact could spread beyond privacy concerns or technological unemployment. These concerns about the real-world effects of AI will likely take precedence over dictionary-minded quibbles. However, the issue is also about honesty versus deception.

Is This Buzzword All Buzzed Out?
Finally, I directed my questions towards a company that is actively marketing an “AI Virtual Assistant.” Carl Landers, the CMO at Conversica, acknowledged that there are a multitude of explanations for what AI is and isn’t.

He said, “My definition of AI is technology innovation that helps solve a business problem. I’m really not interested in talking about the theoretical ‘can we get machines to think like humans?’ It’s a nice conversation, but I’m trying to solve a practical business problem.”

I asked him if AI is a buzzword that inspires publicity and attracts clients. According to Landers, this was certainly true three years ago, but those effects have already started to wane. Many companies now claim to have AI in their products, so it’s less of a differentiator. However, there is still a specific intention behind the word. Landers hopes to convey that previously impossible things are now possible. “There’s something new here that you haven’t seen before, that you haven’t heard of before,” he said.

According to Brian Decker, founder of Encom Lab, machine learning algorithms only work to satisfy their preexisting programming, not out of an interior drive for better understanding. Therefore, he views AI as an entirely semantic argument.

Decker stated, “A marketing exec will claim a photodiode controlled porch light has AI because it ‘knows when it is dark outside,’ while a good hardware engineer will point out that not one bit in a register in the entire history of computing has ever changed unless directed to do so according to the logic of preexisting programming.”

Although it’s important for everyone to be on the same page regarding specifics and underlying meaning, AI-powered products are already powering past these debates by creating immediate value for humans. And ultimately, humans care more about value than they do about semantic distinctions. In an interview with Quartz, Kai-Fu Lee revealed that algorithmic trading systems have already given him an 8X return over his private banking investments. “I don’t trade with humans anymore,” he said.

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Posted in Human Robots

#431866 The Technologies We’ll Have Our Eyes ...

Posted on December 31, 2017 by Android

It’s that time of year again when our team has a little fun and throws on our futurist glasses to look ahead at some of the technologies and trends we’re most anticipating next year.
Whether the implications of a technology are vast or it resonates with one of us personally, here’s the list from some of the Singularity Hub team of what we have our eyes on as we enter the new year.
For a little refresher, these were the technologies our team was fired up about at the start of 2017.
Tweet us the technology you’re excited to watch in 2018 at @SingularityHub.
Cryptocurrency and Blockchain
“Given all the noise Bitcoin is making globally in the media, it is driving droves of main street investors to dabble in and learn more about cryptocurrencies. This will continue to raise valuations and drive adoption of blockchain. From Bank of America recently getting a blockchain-based patent approved to the Australian Securities Exchange’s plan to use blockchain, next year is going to be chock-full of these stories. Coindesk even recently spotted a patent filing from Apple involving blockchain. From ‘China’s Ethereum’, NEO, to IOTA to Golem to Qtum, there are a lot of interesting cryptos to follow given the immense numbers of potential applications. Hang on, it’s going to be a bumpy ride in 2018!”
–Kirk Nankivell, Website Manager
There Is No One Technology to Watch
“Next year may be remembered for advances in gene editing, blockchain, AI—or most likely all these and more. There is no single technology to watch. A number of consequential trends are advancing and converging. This general pace of change is exciting, and it also contributes to spiking anxiety. Technology’s invisible lines of force are extending further and faster into our lives and subtly subverting how we view the world and each other in unanticipated ways. Still, all the near-term messiness and volatility, the little and not-so-little dramas, the hype and disillusion, the controversies and conflict, all that smooths out a bit when you take a deep breath and a step back, and it’s my sincere hope and belief the net result will be more beneficial than harmful.”
–Jason Dorrier, Managing Editor
‘Fake News’ Fighting Technology
“It’s been a wild ride for the media this year with the term ‘fake news’ moving from the public’s peripheral and into mainstream vocabulary. The spread of ‘fake news’ is often blamed on media outlets, but social media platforms and search engines are often responsible too. (Facebook still won’t identify as a media company—maybe next year?) Yes, technology can contribute to spreading false information, but it can also help stop it. From technologists who are building in-article ‘trust indicator’ features, to artificial intelligence systems that can both spot and shut down fake news early on, I’m hopeful we can create new solutions to this huge problem. One step further: if publishers step up to fix this we might see some faith restored in the media.”
–Alison E. Berman, Digital Producer
Pay-as-You-Go Home Solar Power
“People in rural African communities are increasingly bypassing electrical grids (which aren’t even an option in many cases) and installing pay-as-you-go solar panels on their homes. The companies offering these services are currently not subject to any regulations, though they’re essentially acting as a utility. As demand for power grows, they’ll have to come up with ways to efficiently scale, and to balance the humanitarian and capitalistic aspects of their work. It’s fascinating to think traditional grids may never be necessary in many areas of the continent thanks to this technology.”
–Vanessa Bates Ramirez, Associate Editor
Virtual Personal Assistants
“AI is clearly going to rule our lives, and in many ways it already makes us look like clumsy apes. Alexa, Siri, and Google Assistant are promising first steps toward a world of computers that understand us and relate to us on an emotional level. I crave the day when my Apple Watch coaches me into healthier habits, lets me know about new concerts nearby, speaks to my self-driving Lyft on my behalf, and can help me respond effectively to aggravating emails based on communication patterns. But let’s not brush aside privacy concerns and the implications of handing over our personal data to megacorporations. The scariest thing here is that privacy laws and advertising ethics do not accommodate this level of intrusive data hoarding.”
–Matthew Straub, Director of Digital Engagement (Hub social media)
Solve for Learning: Educational Apps for Children in Conflict Zones
“I am most excited by exponential technology when it is used to help solve a global grand challenge. Educational apps are currently being developed to help solve for learning by increasing accessibility to learning opportunities for children living in conflict zones. Many children in these areas are not receiving an education, with girls being 2.5 times more likely than boys to be out of school. The EduApp4Syria project is developing apps to help children in Syria and Kashmir learn in their native languages. Mobile phones are increasingly available in these areas, and the apps are available offline for children who do not have consistent access to mobile networks. The apps are low-cost, easily accessible, and scalable educational opportunities.
–Paige Wilcoxson, Director, Curriculum & Learning Design
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Posted in Human Robots

#431301 Collective Intelligence Is the Root of ...

Posted on October 16, 2017 by Android

Many of us intuitively think about intelligence as an individual trait. As a society, we have a tendency to praise individual game-changers for accomplishments that would not be possible without their teams, often tens of thousands of people that work behind the scenes to make extraordinary things happen.
Matt Ridley, best-selling author of multiple books, including The Rational Optimist: How Prosperity Evolves, challenges this view. He argues that human achievement and intelligence are entirely “networking phenomena.” In other words, intelligence is collective and emergent as opposed to individual.
When asked what scientific concept would improve everybody’s cognitive toolkit, Ridley highlights collective intelligence: “It is by putting brains together through the division of labor— through trade and specialization—that human society stumbled upon a way to raise the living standards, carrying capacity, technological virtuosity, and knowledge base of the species.”
Ridley has spent a lifetime exploring human prosperity and the factors that contribute to it. In a conversation with Singularity Hub, he redefined how we perceive intelligence and human progress.
Raya Bidshahri: The common perspective seems to be that competition is what drives innovation and, consequently, human progress. Why do you think collaboration trumps competition when it comes to human progress?
Matt Ridley: There is a tendency to think that competition is an animal instinct that is natural and collaboration is a human instinct we have to learn. I think there is no evidence for that. Both are deeply rooted in us as a species. The evidence from evolutionary biology tells us that collaboration is just as important as competition. Yet, at the end, the Darwinian perspective is quite correct: it’s usually cooperation for the purpose of competition, wherein a given group tries to achieve something more effectively than another group. But the point is that the capacity to co-operate is very deep in our psyche.
RB: You write that “human achievement is entirely a networking phenomenon,” and we need to stop thinking about intelligence as an individual trait, and that instead we should look at what you refer to as collective intelligence. Why is that?
MR: The best way to think about it is that IQ doesn’t matter, because a hundred stupid people who are talking to each other will accomplish more than a hundred intelligent people who aren’t. It’s absolutely vital to see that everything from the manufacturing of a pencil to the manufacturing of a nuclear power station can’t be done by an individual human brain. You can’t possibly hold in your head all the knowledge you need to do these things. For the last 200,000 years we’ve been exchanging and specializing, which enables us to achieve much greater intelligence than we can as individuals.
RB: We often think of achievement and intelligence on individual terms. Why do you think it’s so counter-intuitive for us to think about collective intelligence?
MR: People are surprisingly myopic to the extent they understand the nature of intelligence. I think it goes back to a pre-human tendency to think in terms of individual stories and actors. For example, we love to read about the famous inventor or scientist who invented or discovered something. We never tell these stories as network stories. We tell them as individual hero stories.

“It’s absolutely vital to see that everything from the manufacturing of a pencil to the manufacturing of a nuclear power station can’t be done by an individual human brain.”

This idea of a brilliant hero who saves the world in the face of every obstacle seems to speak to tribal hunter-gatherer societies, where the alpha male leads and wins. But it doesn’t resonate with how human beings have structured modern society in the last 100,000 years or so. We modern-day humans haven’t internalized a way of thinking that incorporates this definition of distributed and collective intelligence.
RB: One of the books you’re best known for is The Rational Optimist. What does it mean to be a rational optimist?
MR: My optimism is rational because it’s not based on a feeling, it’s based on evidence. If you look at the data on human living standards over the last 200 years and compare it with the way that most people actually perceive our progress during that time, you’ll see an extraordinary gap. On the whole, people seem to think that things are getting worse, but things are actually getting better.
We’ve seen the most astonishing improvements in human living standards: we’ve brought the number of people living in extreme poverty to 9 percent from about 70 percent when I was born. The human lifespan is expanding by five hours a day, child mortality has gone down by two thirds in half a century, and much more. These feats dwarf the things that are going wrong. Yet most people are quite pessimistic about the future despite the things we’ve achieved in the past.
RB: Where does this idea of collective intelligence fit in rational optimism?
MR: Underlying the idea of rational optimism was understanding what prosperity is, and why it happens to us and not to rabbits or rocks. Why are we the only species in the world that has concepts like a GDP, growth rate, or living standard? My answer is that it comes back to this phenomena of collective intelligence. The reason for a rise in living standards is innovation, and the cause of that innovation is our ability to collaborate.
The grand theme of human history is exchange of ideas, collaborating through specialization and the division of labor. Throughout history, it’s in places where there is a lot of open exchange and trade where you get a lot of innovation. And indeed, there are some extraordinary episodes in human history when societies get cut off from exchange and their innovation slows down and they start moving backwards. One example of this is Tasmania, which was isolated and lost a lot of the technologies it started off with.
RB: Lots of people like to point out that just because the world has been getting better doesn’t guarantee it will continue to do so. How do you respond to that line of argumentation?
MR: There is a quote by Thomas Babington Macaulay from 1830, where he was fed up with the pessimists of the time saying things will only get worse. He says, “On what principle is it that with nothing but improvement behind us, we are to expect nothing but deterioration before us?” And this was back in the 1830s, where in Britain and a few other parts of the world, we were only seeing the beginning of the rise of living standards. It’s perverse to argue that because things were getting better in the past, now they are about to get worse.

“I think it’s worth remembering that good news tends to be gradual, and bad news tends to be sudden. Hence, the good stuff is rarely going to make the news.”

Another thing to point out is that people have always said this. Every generation thought they were at the peak looking downhill. If you think about the opportunities technology is about to give us, whether it’s through blockchain, gene editing, or artificial intelligence, there is every reason to believe that 2017 is going to look like a time of absolute misery compared to what our children and grandchildren are going to experience.
RB: There seems to be a fair amount of mayhem in today’s world, and lots of valid problems to pay attention to in the news. What would you say to empower our readers that we will push through it and continue to grow and improve as a species?
MR: I think it’s worth remembering that good news tends to be gradual, and bad news tends to be sudden. Hence, the good stuff is rarely going to make the news. It’s happening in an inexorable way, as a result of ordinary people exchanging, specializing, collaborating, and innovating, and it’s surprisingly hard to stop it.
Even if you look back to the 1940s, at the end of a world war, there was still a lot of innovation happening. In some ways it feels like we are going through a bad period now. I do worry a lot about the anti-enlightenment values that I see spreading in various parts of the world. But then I remind myself that people are working on innovative projects in the background, and these things are going to come through and push us forward.
Image Credit: Sahacha Nilkumhang / Shutterstock.com

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Posted in Human Robots

#431081 How the Intelligent Home of the Future ...

Posted on September 11, 2017 by Android

As Dorothy famously said in The Wizard of Oz, there’s no place like home. Home is where we go to rest and recharge. It’s familiar, comfortable, and our own. We take care of our homes by cleaning and maintaining them, and fixing things that break or go wrong.
What if our homes, on top of giving us shelter, could also take care of us in return?
According to Chris Arkenberg, this could be the case in the not-so-distant future. As part of Singularity University’s Experts On Air series, Arkenberg gave a talk called “How the Intelligent Home of The Future Will Care For You.”
Arkenberg is a research and strategy lead at Orange Silicon Valley, and was previously a research fellow at the Deloitte Center for the Edge and a visiting researcher at the Institute for the Future.
Arkenberg told the audience that there’s an evolution going on: homes are going from being smart to being connected, and will ultimately become intelligent.
Market Trends
Intelligent home technologies are just now budding, but broader trends point to huge potential for their growth. We as consumers already expect continuous connectivity wherever we go—what do you mean my phone won’t get reception in the middle of Yosemite? What do you mean the smart TV is down and I can’t stream Game of Thrones?
As connectivity has evolved from a privilege to a basic expectation, Arkenberg said, we’re also starting to have a better sense of what it means to give up our data in exchange for services and conveniences. It’s so easy to click a few buttons on Amazon and have stuff show up at your front door a few days later—never mind that data about your purchases gets recorded and aggregated.
“Right now we have single devices that are connected,” Arkenberg said. “Companies are still trying to show what the true value is and how durable it is beyond the hype.”

Connectivity is the basis of an intelligent home. To take a dumb object and make it smart, you get it online. Belkin’s Wemo, for example, lets users control lights and appliances wirelessly and remotely, and can be paired with Amazon Echo or Google Home for voice-activated control.
Speaking of voice-activated control, Arkenberg pointed out that physical interfaces are evolving, too, to the point that we’re actually getting rid of interfaces entirely, or transitioning to ‘soft’ interfaces like voice or gesture.
Drivers of change
Consumers are open to smart home tech and companies are working to provide it. But what are the drivers making this tech practical and affordable? Arkenberg said there are three big ones:
Computation: Computers have gotten exponentially more powerful over the past few decades. If it wasn’t for processors that could handle massive quantities of information, nothing resembling an Echo or Alexa would even be possible. Artificial intelligence and machine learning are powering these devices, and they hinge on computing power too.
Sensors: “There are more things connected now than there are people on the planet,” Arkenberg said. Market research firm Gartner estimates there are 8.4 billion connected things currently in use. Wherever digital can replace hardware, it’s doing so. Cheaper sensors mean we can connect more things, which can then connect to each other.
Data: “Data is the new oil,” Arkenberg said. “The top companies on the planet are all data-driven giants. If data is your business, though, then you need to keep finding new ways to get more and more data.” Home assistants are essentially data collection systems that sit in your living room and collect data about your life. That data in turn sets up the potential of machine learning.
Colonizing the Living Room
Alexa and Echo can turn lights on and off, and Nest can help you be energy-efficient. But beyond these, what does an intelligent home really look like?
Arkenberg’s vision of an intelligent home uses sensing, data, connectivity, and modeling to manage resource efficiency, security, productivity, and wellness.
Autonomous vehicles provide an interesting comparison: they’re surrounded by sensors that are constantly mapping the world to build dynamic models to understand the change around itself, and thereby predict things. Might we want this to become a model for our homes, too? By making them smart and connecting them, Arkenberg said, they’d become “more biological.”
There are already several products on the market that fit this description. RainMachine uses weather forecasts to adjust home landscape watering schedules. Neurio monitors energy usage, identifies areas where waste is happening, and makes recommendations for improvement.
These are small steps in connecting our homes with knowledge systems and giving them the ability to understand and act on that knowledge.
He sees the homes of the future being equipped with digital ears (in the form of home assistants, sensors, and monitoring devices) and digital eyes (in the form of facial recognition technology and machine vision to recognize who’s in the home). “These systems are increasingly able to interrogate emotions and understand how people are feeling,” he said. “When you push more of this active intelligence into things, the need for us to directly interface with them becomes less relevant.”
Could our homes use these same tools to benefit our health and wellness? FREDsense uses bacteria to create electrochemical sensors that can be applied to home water systems to detect contaminants. If that’s not personal enough for you, get a load of this: ClinicAI can be installed in your toilet bowl to monitor and evaluate your biowaste. What’s the point, you ask? Early detection of colon cancer and other diseases.
What if one day, your toilet’s biowaste analysis system could link up with your fridge, so that when you opened it it would tell you what to eat, and how much, and at what time of day?
Roadblocks to intelligence
“The connected and intelligent home is still a young category trying to establish value, but the technological requirements are now in place,” Arkenberg said. We’re already used to living in a world of ubiquitous computation and connectivity, and we have entrained expectations about things being connected. For the intelligent home to become a widespread reality, its value needs to be established and its challenges overcome.
One of the biggest challenges will be getting used to the idea of continuous surveillance. We’ll get convenience and functionality if we give up our data, but how far are we willing to go? Establishing security and trust is going to be a big challenge moving forward,” Arkenberg said.
There’s also cost and reliability, interoperability and fragmentation of devices, or conversely, what Arkenberg called ‘platform lock-on,’ where you’d end up relying on only one provider’s system and be unable to integrate devices from other brands.
Ultimately, Arkenberg sees homes being able to learn about us, manage our scheduling and transit, watch our moods and our preferences, and optimize our resource footprint while predicting and anticipating change.
“This is the really fascinating provocation of the intelligent home,” Arkenberg said. “And I think we’re going to start to see this play out over the next few years.”
Sounds like a home Dorothy wouldn’t recognize, in Kansas or anywhere else.
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