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#435119 Are These Robots Better Than You at ...

Robot technology is evolving at breakneck speed. SoftBank’s Pepper is found in companies across the globe and is rapidly improving its conversation skills. Telepresence robots open up new opportunities for remote working, while Boston Dynamics’ Handle robot could soon (literally) take a load off human colleagues in warehouses.

But warehouses and offices aren’t the only places where robots are lining up next to humans.

Toyota’s Cue 3 robot recently showed off its basketball skills, putting up better numbers than the NBA’s most accurate three-point shooter, the Golden State Warriors’ Steph Curry.

Cue 3 is still some way from being ready to take on Curry, or even amateur basketball players, in a real game. However, it is the latest member of a growing cast of robots challenging human dominance in sports.

As these robots continue to develop, they not only exemplify the speed of exponential technology development, but also how those technologies are improving human capabilities.

Meet the Contestants
The list of robots in sports is surprisingly long and diverse. There are robot skiers, tumblers, soccer players, sumos, and even robot game jockeys. Introductions to a few of them are in order.

Robot: Forpheus
Sport: Table tennis
Intro: Looks like something out of War of the Worlds equipped with a ping pong bat instead of a death ray.
Ability level: Capable of counteracting spin shots and good enough to beat many beginners.

Robot: Sumo bot
Sport: Sumo wrestling
Intro: Hyper-fast, hyper-aggressive. Think robot equivalent to an angry wasp on six cans of Red Bull crossed with a very small tank.
Ability level: Flies around the ring way faster than any human sumo. Tend to drive straight out of the ring at times.

Robot: Cue 3
Sport: Basketball
Intro: Stands at an imposing 6 foot and 10 inches, so pretty much built for the NBA. Looks a bit like something that belongs in a video game.
Ability level: A 62.5 percent three-pointer percentage, which is better than Steph Curry’s; is less mobile than Charles Barkley – in his current form.

Robot: Robo Cup Robots
Intro: The future of soccer. If everything goes to plan, a team of robots will take on the Lionel Messis and Cristiano Ronaldos of 2050 and beat them in a full 11 vs. 11 game.
Ability level: Currently plays soccer more like the six-year-olds I used to coach than Lionel Messi.

The Limiting Factor
The skill level of all the robots above is impressive, and they are doing things that no human contestant can. The sumo bots’ inhuman speed is self-evident. Forpheus’ ability to track the ball with two cameras while simultaneously tracking its opponent with two other cameras requires a look at the spec sheet, but is similarly beyond human capability. While Cue 3 can’t move, it makes shots from the mid-court logo look easy.

Robots are performing at a level that was confined to the realm of science fiction at the start of the millennium. The speed of development indicates that in the near future, my national team soccer coach would likely call up a robot instead of me (he must have lost my number since he hasn’t done so yet. It’s the only logical explanation), and he’d be right to do so.

It is also worth considering that many current sports robots have a humanoid form, which limits their ability. If engineers were to optimize robot design to outperform humans in specific categories, many world champions would likely already be metallic.

Swimming is perhaps one of the most obvious. Even Michael Phelps would struggle to keep up with a torpedo-shaped robot, and if you beefed up a sumo robot to human size, human sumos might impress you by running away from them with a 100-meter speed close to Usain Bolt’s.

In other areas, the playing field for humans and robots is rapidly leveling. One likely candidate for the first head-to-head competitions is racing, where self-driving cars from the Roborace League could perhaps soon be ready to race the likes of Lewis Hamilton.

Tech Pushing Humans
Perhaps one of the biggest reasons why it may still take some time for robots to surpass us is that they, along with other exponential technologies, are already making us better at sports.

In Japan, elite volleyball players use a robot to practice their attacks. Some American football players also practice against robot opponents and hone their skills using VR.

On the sidelines, AI is being used to analyze and improve athletes’ performance, and we may soon see the first AI coaches, not to mention referees.

We may even compete in games dreamt up by our electronic cousins. SpeedGate, a new game created by an AI by studying 400 different sports, is a prime example of that quickly becoming a possibility.

However, we will likely still need to make the final call on what constitutes a good game. The AI that created SpeedGate reportedly also suggested less suitable pastimes, like underwater parkour and a game that featured exploding frisbees. Both of these could be fun…but only if you’re as sturdy as a robot.

Image Credit: RoboCup Standard Platform League 2018, ©The Robocup Federation. Published with permission of reproduction granted by the RoboCup Federation. Continue reading

Posted in Human Robots

#435070 5 Breakthroughs Coming Soon in Augmented ...

Convergence is accelerating disruption… everywhere! Exponential technologies are colliding into each other, reinventing products, services, and industries.

In this third installment of my Convergence Catalyzer series, I’ll be synthesizing key insights from my annual entrepreneurs’ mastermind event, Abundance 360. This five-blog series looks at 3D printing, artificial intelligence, VR/AR, energy and transportation, and blockchain.

Today, let’s dive into virtual and augmented reality.

Today’s most prominent tech giants are leaping onto the VR/AR scene, each driving forward new and upcoming product lines. Think: Microsoft’s HoloLens, Facebook’s Oculus, Amazon’s Sumerian, and Google’s Cardboard (Apple plans to release a headset by 2021).

And as plummeting prices meet exponential advancements in VR/AR hardware, this burgeoning disruptor is on its way out of the early adopters’ market and into the majority of consumers’ homes.

My good friend Philip Rosedale is my go-to expert on AR/VR and one of the foremost creators of today’s most cutting-edge virtual worlds. After creating the virtual civilization Second Life in 2013, now populated by almost 1 million active users, Philip went on to co-found High Fidelity, which explores the future of next-generation shared VR.

In just the next five years, he predicts five emerging trends will take hold, together disrupting major players and birthing new ones.

Let’s dive in…

Top 5 Predictions for VR/AR Breakthroughs (2019-2024)
“If you think you kind of understand what’s going on with that tech today, you probably don’t,” says Philip. “We’re still in the middle of landing the airplane of all these new devices.”

(1) Transition from PC-based to standalone mobile VR devices

Historically, VR devices have relied on PC connections, usually involving wires and clunky hardware that restrict a user’s field of motion. However, as VR enters the dematerialization stage, we are about to witness the rapid rise of a standalone and highly mobile VR experience economy.

Oculus Go, the leading standalone mobile VR device on the market, requires only a mobile app for setup and can be transported anywhere with WiFi.

With a consumer audience in mind, the 32GB headset is priced at $200 and shares an app ecosystem with Samsung’s Gear VR. While Google Daydream are also standalone VR devices, they require a docked mobile phone instead of the built-in screen of Oculus Go.

In the AR space, Lenovo’s standalone Microsoft’s HoloLens 2 leads the way in providing tetherless experiences.

Freeing headsets from the constraints of heavy hardware will make VR/AR increasingly interactive and transportable, a seamless add-on whenever, wherever. Within a matter of years, it may be as simple as carrying lightweight VR goggles wherever you go and throwing them on at a moment’s notice.

(2) Wide field-of-view AR displays

Microsoft’s HoloLens 2 leads the AR industry in headset comfort and display quality. The most significant issue with their prior version was the limited rectangular field of view (FOV).

By implementing laser technology to create a microelectromechanical systems (MEMS) display, however, HoloLens 2 can position waveguides in front of users’ eyes, directed by mirrors. Subsequently enlarging images can be accomplished by shifting the angles of these mirrors. Coupled with a 47 pixel per degree resolution, HoloLens 2 has now doubled its predecessor’s FOV. Microsoft anticipates the release of its headset by the end of this year at a $3,500 price point, first targeting businesses and eventually rolling it out to consumers.

Magic Leap provides a similar FOV but with lower resolution than the HoloLens 2. The Meta 2 boasts an even wider 90-degree FOV, but requires a cable attachment. The race to achieve the natural human 120-degree horizontal FOV continues.

“The technology to expand the field of view is going to make those devices much more usable by giving you bigger than a small box to look through,” Rosedale explains.

(3) Mapping of real world to enable persistent AR ‘mirror worlds’

‘Mirror worlds’ are alternative dimensions of reality that can blanket a physical space. While seated in your office, the floor beneath you could dissolve into a calm lake and each desk into a sailboat. In the classroom, mirror worlds would convert pencils into magic wands and tabletops into touch screens.

Pokémon Go provides an introductory glimpse into the mirror world concept and its massive potential to unite people in real action.

To create these mirror worlds, AR headsets must precisely understand the architecture of the surrounding world. Rosedale predicts the scanning accuracy of devices will improve rapidly over the next five years to make these alternate dimensions possible.

(4) 5G mobile devices reduce latency to imperceptible levels

Verizon has already launched 5G networks in Minneapolis and Chicago, compatible with the Moto Z3. Sprint plans to follow with its own 5G launch in May. Samsung, LG, Huawei, and ZTE have all announced upcoming 5G devices.

“5G is rolling out this year and it’s going to materially affect particularly my work, which is making you feel like you’re talking to somebody else directly face to face,” explains Rosedale. “5G is critical because currently the cell devices impose too much delay, so it doesn’t feel real to talk to somebody face to face on these devices.”

To operate seamlessly from anywhere on the planet, standalone VR/AR devices will require a strong 5G network. Enhancing real-time connectivity in VR/AR will transform the communication methods of tomorrow.

(5) Eye-tracking and facial expressions built in for full natural communication

Companies like Pupil Labs and Tobii provide eye tracking hardware add-ons and software to VR/AR headsets. This technology allows for foveated rendering, which renders a given scene in high resolution only in the fovea region, while the peripheral regions appear in lower resolution, conserving processing power.

As seen in the HoloLens 2, eye tracking can also be used to identify users and customize lens widths to provide a comfortable, personalized experience for each individual.

According to Rosedale, “The fundamental opportunity for both VR and AR is to improve human communication.” He points out that current VR/AR headsets miss many of the subtle yet important aspects of communication. Eye movements and microexpressions provide valuable insight into a user’s emotions and desires.

Coupled with emotion-detecting AI software, such as Affectiva, VR/AR devices might soon convey much more richly textured and expressive interactions between any two people, transcending physical boundaries and even language gaps.

Final Thoughts
As these promising trends begin to transform the market, VR/AR will undoubtedly revolutionize our lives… possibly to the point at which our virtual worlds become just as consequential and enriching as our physical world.

A boon for next-gen education, VR/AR will empower youth and adults alike with holistic learning that incorporates social, emotional, and creative components through visceral experiences, storytelling, and simulation. Traveling to another time, manipulating the insides of a cell, or even designing a new city will become daily phenomena of tomorrow’s classrooms.

In real estate, buyers will increasingly make decisions through virtual tours. Corporate offices might evolve into spaces that only exist in ‘mirror worlds’ or grow virtual duplicates for remote workers.

In healthcare, accuracy of diagnosis will skyrocket, while surgeons gain access to digital aids as they conduct life-saving procedures. Or take manufacturing, wherein training and assembly will become exponentially more efficient as visual cues guide complex tasks.

In the mere matter of a decade, VR and AR will unlock limitless applications for new and converging industries. And as virtual worlds converge with AI, 3D printing, computing advancements and beyond, today’s experience economies will explode in scale and scope. Prepare yourself for the exciting disruption ahead!

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#434865 5 AI Breakthroughs We’ll Likely See in ...

Convergence is accelerating disruption… everywhere! Exponential technologies are colliding into each other, reinventing products, services, and industries.

As AI algorithms such as Siri and Alexa can process your voice and output helpful responses, other AIs like Face++ can recognize faces. And yet others create art from scribbles, or even diagnose medical conditions.

Let’s dive into AI and convergence.

Top 5 Predictions for AI Breakthroughs (2019-2024)
My friend Neil Jacobstein is my ‘go-to expert’ in AI, with over 25 years of technical consulting experience in the field. Currently the AI and Robotics chair at Singularity University, Jacobstein is also a Distinguished Visiting Scholar in Stanford’s MediaX Program, a Henry Crown Fellow, an Aspen Institute moderator, and serves on the National Academy of Sciences Earth and Life Studies Committee. Neil predicted five trends he expects to emerge over the next five years, by 2024.

AI gives rise to new non-human pattern recognition and intelligence results

AlphaGo Zero, a machine learning computer program trained to play the complex game of Go, defeated the Go world champion in 2016 by 100 games to zero. But instead of learning from human play, AlphaGo Zero trained by playing against itself—a method known as reinforcement learning.

Building its own knowledge from scratch, AlphaGo Zero demonstrates a novel form of creativity, free of human bias. Even more groundbreaking, this type of AI pattern recognition allows machines to accumulate thousands of years of knowledge in a matter of hours.

While these systems can’t answer the question “What is orange juice?” or compete with the intelligence of a fifth grader, they are growing more and more strategically complex, merging with other forms of narrow artificial intelligence. Within the next five years, who knows what successors of AlphaGo Zero will emerge, augmenting both your business functions and day-to-day life.

Doctors risk malpractice when not using machine learning for diagnosis and treatment planning

A group of Chinese and American researchers recently created an AI system that diagnoses common childhood illnesses, ranging from the flu to meningitis. Trained on electronic health records compiled from 1.3 million outpatient visits of almost 600,000 patients, the AI program produced diagnosis outcomes with unprecedented accuracy.

While the US health system does not tout the same level of accessible universal health data as some Chinese systems, we’ve made progress in implementing AI in medical diagnosis. Dr. Kang Zhang, chief of ophthalmic genetics at the University of California, San Diego, created his own system that detects signs of diabetic blindness, relying on both text and medical images.

With an eye to the future, Jacobstein has predicted that “we will soon see an inflection point where doctors will feel it’s a risk to not use machine learning and AI in their everyday practices because they don’t want to be called out for missing an important diagnostic signal.”

Quantum advantage will massively accelerate drug design and testing

Researchers estimate that there are 1060 possible drug-like molecules—more than the number of atoms in our solar system. But today, chemists must make drug predictions based on properties influenced by molecular structure, then synthesize numerous variants to test their hypotheses.

Quantum computing could transform this time-consuming, highly costly process into an efficient, not to mention life-changing, drug discovery protocol.

“Quantum computing is going to have a major industrial impact… not by breaking encryption,” said Jacobstein, “but by making inroads into design through massive parallel processing that can exploit superposition and quantum interference and entanglement, and that can wildly outperform classical computing.”

AI accelerates security systems’ vulnerability and defense

With the incorporation of AI into almost every aspect of our lives, cyberattacks have grown increasingly threatening. “Deep attacks” can use AI-generated content to avoid both human and AI controls.

Previous examples include fake videos of former President Obama speaking fabricated sentences, and an adversarial AI fooling another algorithm into categorizing a stop sign as a 45 mph speed limit sign. Without the appropriate protections, AI systems can be manipulated to conduct any number of destructive objectives, whether ruining reputations or diverting autonomous vehicles.

Jacobstein’s take: “We all have security systems on our buildings, in our homes, around the healthcare system, and in air traffic control, financial organizations, the military, and intelligence communities. But we all know that these systems have been hacked periodically and we’re going to see that accelerate. So, there are major business opportunities there and there are major opportunities for you to get ahead of that curve before it bites you.”

AI design systems drive breakthroughs in atomically precise manufacturing

Just as the modern computer transformed our relationship with bits and information, AI will redefine and revolutionize our relationship with molecules and materials. AI is currently being used to discover new materials for clean-tech innovations, such as solar panels, batteries, and devices that can now conduct artificial photosynthesis.

Today, it takes about 15 to 20 years to create a single new material, according to industry experts. But as AI design systems skyrocket in capacity, these will vastly accelerate the materials discovery process, allowing us to address pressing issues like climate change at record rates. Companies like Kebotix are already on their way to streamlining the creation of chemistries and materials at the click of a button.

Atomically precise manufacturing will enable us to produce the previously unimaginable.

Final Thoughts
Within just the past three years, countries across the globe have signed into existence national AI strategies and plans for ramping up innovation. Businesses and think tanks have leaped onto the scene, hiring AI engineers and tech consultants to leverage what computer scientist Andrew Ng has even called the new ‘electricity’ of the 21st century.

As AI plays an exceedingly vital role in everyday life, how will your business leverage it to keep up and build forward?

In the wake of burgeoning markets, new ventures will quickly arise, each taking advantage of untapped data sources or unmet security needs.

And as your company aims to ride the wave of AI’s exponential growth, consider the following pointers to leverage AI and disrupt yourself before it reaches you first:

Determine where and how you can begin collecting critical data to inform your AI algorithms
Identify time-intensive processes that can be automated and accelerated within your company
Discern which global challenges can be expedited by hyper-fast, all-knowing minds

Remember: good data is vital fuel. Well-defined problems are the best compass. And the time to start implementing AI is now.

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Posted in Human Robots

#434786 AI Performed Like a Human on a Gestalt ...

Dr. Been Kim wants to rip open the black box of deep learning.

A senior researcher at Google Brain, Kim specializes in a sort of AI psychology. Like cognitive psychologists before her, she develops various ways to probe the alien minds of artificial neural networks (ANNs), digging into their gory details to better understand the models and their responses to inputs.

The more interpretable ANNs are, the reasoning goes, the easier it is to reveal potential flaws in their reasoning. And if we understand when or why our systems choke, we’ll know when not to use them—a foundation for building responsible AI.

There are already several ways to tap into ANN reasoning, but Kim’s inspiration for unraveling the AI black box came from an entirely different field: cognitive psychology. The field aims to discover fundamental rules of how the human mind—essentially also a tantalizing black box—operates, Kim wrote with her colleagues.

In a new paper uploaded to the pre-publication server arXiv, the team described a way to essentially perform a human cognitive test on ANNs. The test probes how we automatically complete gaps in what we see, so that they form entire objects—for example, perceiving a circle from a bunch of loose dots arranged along a clock face. Psychologist dub this the “law of completion,” a highly influential idea that led to explanations of how our minds generalize data into concepts.

Because deep neural networks in machine vision loosely mimic the structure and connections of the visual cortex, the authors naturally asked: do ANNs also exhibit the law of completion? And what does that tell us about how an AI thinks?

Enter the Germans
The law of completion is part of a series of ideas from Gestalt psychology. Back in the 1920s, long before the advent of modern neuroscience, a group of German experimental psychologists asked: in this chaotic, flashy, unpredictable world, how do we piece together input in a way that leads to meaningful perceptions?

The result is a group of principles known together as the Gestalt effect: that the mind self-organizes to form a global whole. In the more famous words of Gestalt psychologist Kurt Koffka, our perception forms a whole that’s “something else than the sum of its parts.” Not greater than; just different.

Although the theory has its critics, subsequent studies in humans and animals suggest that the law of completion happens on both the cognitive and neuroanatomical level.

Take a look at the drawing below. You immediately “see” a shape that’s actually the negative: a triangle or a square (A and B). Or you further perceive a 3D ball (C), or a snake-like squiggle (D). Your mind fills in blank spots, so that the final perception is more than just the black shapes you’re explicitly given.

Image Credit: Wikimedia Commons contributors, the free media repository.
Neuroscientists now think that the effect comes from how our visual system processes information. Arranged in multiple layers and columns, lower-level neurons—those first to wrangle the data—tend to extract simpler features such as lines or angles. In Gestalt speak, they “see” the parts.

Then, layer by layer, perception becomes more abstract, until higher levels of the visual system directly interpret faces or objects—or things that don’t really exist. That is, the “whole” emerges.

The Experiment Setup
Inspired by these classical experiments, Kim and team developed a protocol to test the Gestalt effect on feed-forward ANNs: one simple, the other, dubbed the “Inception V3,” far more complex and widely used in the machine vision community.

The main idea is similar to the triangle drawings above. First, the team generated three datasets: one set shows complete, ordinary triangles. The second—the “Illusory” set, shows triangles with the edges removed but the corners intact. Thanks to the Gestalt effect, to us humans these generally still look like triangles. The third set also only shows incomplete triangle corners. But here, the corners are randomly rotated so that we can no longer imagine a line connecting them—hence, no more triangle.

To generate a dataset large enough to tease out small effects, the authors changed the background color, image rotation, and other aspects of the dataset. In all, they produced nearly 1,000 images to test their ANNs on.

“At a high level, we compare an ANN’s activation similarities between the three sets of stimuli,” the authors explained. The process is two steps: first, train the AI on complete triangles. Second, test them on the datasets. If the response is more similar between the illusory set and the complete triangle—rather than the randomly rotated set—it should suggest a sort of Gestalt closure effect in the network.

Machine Gestalt
Right off the bat, the team got their answer: yes, ANNs do seem to exhibit the law of closure.

When trained on natural images, the networks better classified the illusory set as triangles than those with randomized connection weights or networks trained on white noise.

When the team dug into the “why,” things got more interesting. The ability to complete an image correlated with the network’s ability to generalize.

Humans subconsciously do this constantly: anything with a handle made out of ceramic, regardless of shape, could easily be a mug. ANNs still struggle to grasp common features—clues that immediately tells us “hey, that’s a mug!” But when they do, it sometimes allows the networks to better generalize.

“What we observe here is that a network that is able to generalize exhibits…more of the closure effect [emphasis theirs], hinting that the closure effect reflects something beyond simply learning features,” the team wrote.

What’s more, remarkably similar to the visual cortex, “higher” levels of the ANNs showed more of the closure effect than lower layers, and—perhaps unsurprisingly—the more layers a network had, the more it exhibited the closure effect.

As the networks learned, their ability to map out objects from fragments also improved. When the team messed around with the brightness and contrast of the images, the AI still learned to see the forest from the trees.

“Our findings suggest that neural networks trained with natural images do exhibit closure,” the team concluded.

AI Psychology
That’s not to say that ANNs recapitulate the human brain. As Google’s Deep Dream, an effort to coax AIs into spilling what they’re perceiving, clearly demonstrates, machine vision sees some truly weird stuff.

In contrast, because they’re modeled after the human visual cortex, perhaps it’s not all that surprising that these networks also exhibit higher-level properties inherent to how we process information.

But to Kim and her colleagues, that’s exactly the point.

“The field of psychology has developed useful tools and insights to study human brains– tools that we may be able to borrow to analyze artificial neural networks,” they wrote.

By tweaking these tools to better analyze machine minds, the authors were able to gain insight on how similarly or differently they see the world from us. And that’s the crux: the point isn’t to say that ANNs perceive the world sort of, kind of, maybe similar to humans. It’s to tap into a wealth of cognitive psychology tools, established over decades using human minds, to probe that of ANNs.

“The work here is just one step along a much longer path,” the authors conclude.

“Understanding where humans and neural networks differ will be helpful for research on interpretability by enlightening the fundamental differences between the two interesting species.”

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Posted in Human Robots

#434772 Traditional Higher Education Is Losing ...

Should you go to graduate school? If so, why? If not, what are your alternatives? Millions of young adults across the globe—and their parents and mentors—find themselves asking these questions every year.

Earlier this month, I explored how exponential technologies are rising to meet the needs of the rapidly changing workforce.

In this blog, I’ll dive into a highly effective way to build the business acumen and skills needed to make the most significant impact in these exponential times.

To start, let’s dive into the value of graduate school versus apprenticeship—especially during this time of extraordinarily rapid growth, and the micro-diversification of careers.

The True Value of an MBA
All graduate schools are not created equal.

For complex technical trades like medicine, engineering, and law, formal graduate-level training provides a critical foundation for safe, ethical practice (until these trades are fully augmented by artificial intelligence and automation…).

For the purposes of today’s blog, let’s focus on the value of a Master in Business Administration (MBA) degree, compared to acquiring your business acumen through various forms of apprenticeship.

The Waning of Business Degrees
Ironically, business schools are facing a tough business problem. The rapid rate of technological change, a booming job market, and the digitization of education are chipping away at the traditional graduate-level business program.

The data speaks for itself.

The Decline of Graduate School Admissions
Enrollment in two-year, full-time MBA programs in the US fell by more than one-third from 2010 to 2016.

While in previous years, top business schools (e.g. Stanford, Harvard, and Wharton) were safe from the decrease in applications, this year, they also felt the waning interest in MBA programs.

Harvard Business School: 4.5 percent decrease in applications, the school’s biggest drop since 2005.
Wharton: 6.7 percent decrease in applications.
Stanford Graduate School: 4.6 percent decrease in applications.

Another signal of change began unfolding over the past week. You may have read news headlines about an emerging college admissions scam, which implicates highly selective US universities, sports coaches, parents, and students in a conspiracy to game the undergraduate admissions process.

Already, students are filing multibillion-dollar civil lawsuits arguing that the scheme has devalued their degrees or denied them a fair admissions opportunity.

MBA Graduates in the Workforce
To meet today’s business needs, startups and massive companies alike are increasingly hiring technologists, developers, and engineers in place of the MBA graduates they may have preferentially hired in the past.

While 85 percent of US employers expect to hire MBA graduates this year (a decrease from 91 percent in 2017), 52 percent of employers worldwide expect to hire graduates with a master’s in data analytics (an increase from 35 percent last year).

We’re also seeing the waning of MBA degree holders at the CEO level.

For decades, an MBA was the hallmark of upward mobility towards the C-suite of top companies.

But as exponential technologies permeate not only products but every part of the supply chain—from manufacturing and shipping to sales, marketing and customer service—that trend is changing by necessity.

Looking at the Harvard Business Review’s Top 100 CEOs in 2018 list, more CEOs on the list held engineering degrees than MBAs (34 held engineering degrees, while 32 held MBAs).

There’s much more to leading innovative companies than an advanced business degree.

How Are Schools Responding?
With disruption to the advanced business education system already here, some business schools are applying notes from their own innovation classes to brace for change.

Over the past half-decade, we’ve seen schools with smaller MBA programs shut their doors in favor of advanced degrees with more specialization. This directly responds to market demand for skills in data science, supply chain, and manufacturing.

Some degrees resemble the precise skills training of technical trades. Others are very much in line with the apprenticeship models we’ll explore next.

Regardless, this new specialization strategy is working and attracting more new students. Over the past decade (2006 to 2016), enrollment in specialized graduate business programs doubled.

Higher education is also seeing a preference shift toward for-profit trade schools, like coding boot camps. This shift is one of several forces pushing universities to adopt skill-specific advanced degrees.

But some schools are slow to adapt, raising the question: how and when will these legacy programs be disrupted? A survey of over 170 business school deans around the world showed that many programs are operating at a loss.

But if these schools are world-class business institutions, as advertised, why do they keep the doors open even while they lose money? The surveyed deans revealed an important insight: they keep the degree program open because of the program’s prestige.

Why Go to Business School?
Shorthand Credibility, Cognitive Biases, and Prestige
Regardless of what knowledge a person takes away from graduate school, attending one of the world’s most rigorous and elite programs gives grads external validation.

With over 55 percent of MBA applicants applying to just 6 percent of graduate business schools, we have a clear cognitive bias toward the perceived elite status of certain universities.

To the outside world, thanks to the power of cognitive biases, an advanced degree is credibility shorthand for your capabilities.

Simply passing through a top school’s filtration system means that you had some level of abilities and merits.

And startup success statistics tend to back up that perceived enhanced capability. Let’s take, for example, universities with the most startup unicorn founders (see the figure below).

When you consider the 320+ unicorn startups around the world today, these numbers become even more impressive. Stanford’s 18 unicorn companies account for over 5 percent of global unicorns, and Harvard is responsible for producing just under 5 percent.

Combined, just these two universities (out of over 5,000 in the US, and thousands more around the world) account for 1 in 10 of the billion-dollar private companies in the world.

By the numbers, the prestigious reputation of these elite business programs has a firm basis in current innovation success.

While prestige may be inherent to the degree earned by graduates from these business programs, the credibility boost from holding one of these degrees is not a guaranteed path to success in the business world.

For example, you might expect that the Harvard School of Business or Stanford Graduate School of Business would come out on top when tallying up the alma maters of Fortune 500 CEOs.

It turns out that the University of Wisconsin-Madison leads the business school pack with 14 CEOs to Harvard’s 12. Beyond prestige, the success these elite business programs see translates directly into cultivating unmatched networks and relationships.

Relationships
Graduate schools—particularly at the upper echelon—are excellent at attracting sharp students.

At an elite business school, if you meet just five to ten people with extraordinary skill sets, personalities, ideas, or networks, then you have returned your $200,000 education investment.

It’s no coincidence that some 40 percent of Silicon Valley venture capitalists are alumni of either Harvard or Stanford.

From future investors to advisors, friends, and potential business partners, relationships are critical to an entrepreneur’s success.

Apprenticeships
As we saw above, graduate business degree programs are melting away in the current wave of exponential change.

With an increasing $1.5 trillion in student debt, there must be a more impactful alternative to attending graduate school for those starting their careers.

When I think about the most important skills I use today as an entrepreneur, writer, and strategic thinker, they didn’t come from my decade of graduate school at Harvard or MIT… they came from my experiences building real technologies and companies, and working with mentors.

Apprenticeship comes in a variety of forms; here, I’ll cover three top-of-mind approaches:

Real-world business acumen via startup accelerators
A direct apprenticeship model
The 6 D’s of mentorship

Startup Accelerators and Business Practicum
Let’s contrast the shrinking interest in MBA programs with applications to a relatively new model of business education: startup accelerators.

Startup accelerators are short-term (typically three to six months), cohort-based programs focusing on providing startup founders with the resources (capital, mentorship, relationships, and education) needed to refine their entrepreneurial acumen.

While graduate business programs have been condensing, startup accelerators are alive, well, and expanding rapidly.

In the 10 years from 2005 (when Paul Graham founded Y Combinator) through 2015, the number of startup accelerators in the US increased by more than tenfold.

The increase in startup accelerator activity hints at a larger trend: our best and brightest business minds are opting to invest their time and efforts in obtaining hands-on experience, creating tangible value for themselves and others, rather than diving into the theory often taught in business school classrooms.

The “Strike Force” Model
The Strike Force is my elite team of young entrepreneurs who work directly with me across all of my companies, travel by my side, sit in on every meeting with me, and help build businesses that change the world.

Previous Strike Force members have gone on to launch successful companies, including Bold Capital Partners, my $250 million venture capital firm.

Strike Force is an apprenticeship for the next generation of exponential entrepreneurs.

To paraphrase my good friend Tony Robbins: If you want to short-circuit the video game, find someone who’s been there and done that and is now doing something you want to one day do.

Every year, over 500,000 apprentices in the US follow this precise template. These apprentices are learning a craft they wish to master, under the mentorship of experts (skilled metal workers, bricklayers, medical technicians, electricians, and more) who have already achieved the desired result.

What if we more readily applied this model to young adults with aspirations of creating massive value through the vehicles of entrepreneurship and innovation?

For the established entrepreneur: How can you bring young entrepreneurs into your organization to create more value for your company, while also passing on your ethos and lessons learned to the next generation?

For the young, driven millennial: How can you find your mentor and convince him or her to take you on as an apprentice? What value can you create for this person in exchange for their guidance and investment in your professional development?

The 6 D’s of Mentorship
In my last blog on education, I shared how mobile device and internet penetration will transform adult literacy and basic education. Mobile phones and connectivity already create extraordinary value for entrepreneurs and young professionals looking to take their business acumen and skill set to the next level.

For all of human history up until the last decade or so, if you wanted to learn from the best and brightest in business, leadership, or strategy, you either needed to search for a dated book that they wrote at the local library or bookstore, or you had to be lucky enough to meet that person for a live conversation.

Now you can access the mentorship of just about any thought leader on the planet, at any time, for free.

Thanks to the power of the internet, mentorship has digitized, demonetized, dematerialized, and democratized.

What do you want to learn about?

Investing? Leadership? Technology? Marketing? Project management?

You can access a near-infinite stream of cutting-edge tools, tactics, and lessons from thousands of top performers from nearly every field—instantaneously, and for free.

For example, every one of Warren Buffett’s letters to his Berkshire Hathaway investors over the past 40 years is available for free on a device that fits in your pocket.

The rise of audio—particularly podcasts and audiobooks—is another underestimated driving force away from traditional graduate business programs and toward apprenticeships.

Over 28 million podcast episodes are available for free. Once you identify the strong signals in the noise, you’re still left with thousands of hours of long-form podcast conversation from which to learn valuable lessons.

Whenever and wherever you want, you can learn from the world’s best. In the future, mentorship and apprenticeship will only become more personalized. Imagine accessing a high-fidelity, AI-powered avatar of Bill Gates, Richard Branson, or Arthur C. Clarke (one of my early mentors) to help guide you through your career.

Virtual mentorship and coaching are powerful education forces that are here to stay.

Bringing It All Together
The education system is rapidly changing. Traditional master’s programs for business are ebbing away in the tides of exponential technologies. Apprenticeship models are reemerging as an effective way to train tomorrow’s leaders.

In a future blog, I’ll revisit the concept of apprenticeships and other effective business school alternatives.

If you are a young, ambitious entrepreneur (or the parent of one), remember that you live in the most abundant time ever in human history to refine your craft.

Right now, you have access to world-class mentorship and cutting-edge best-practices—literally in the palm of your hand. What will you do with this extraordinary power?

Join Me
Abundance-Digital Online Community: I’ve created a Digital/Online community of bold, abundance-minded entrepreneurs called Abundance-Digital. Abundance-Digital 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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