Tag Archives: interface
#432271 Your Shopping Experience Is on the Verge ...
Exponential technologies (AI, VR, 3D printing, and networks) are radically reshaping traditional retail.
E-commerce giants (Amazon, Walmart, Alibaba) are digitizing the retail industry, riding the exponential growth of computation.
Many brick-and-mortar stores have already gone bankrupt, or migrated their operations online.
Massive change is occurring in this arena.
For those “real-life stores” that survive, an evolution is taking place from a product-centric mentality to an experience-based business model by leveraging AI, VR/AR, and 3D printing.
Let’s dive in.
E-Commerce Trends
Last year, 3.8 billion people were connected online. By 2024, thanks to 5G, stratospheric and space-based satellites, we will grow to 8 billion people online, each with megabit to gigabit connection speeds.
These 4.2 billion new digital consumers will begin buying things online, a potential bonanza for the e-commerce world.
At the same time, entrepreneurs seeking to service these four-billion-plus new consumers can now skip the costly steps of procuring retail space and hiring sales clerks.
Today, thanks to global connectivity, contract production, and turnkey pack-and-ship logistics, an entrepreneur can go from an idea to building and scaling a multimillion-dollar business from anywhere in the world in record time.
And while e-commerce sales have been exploding (growing from $34 billion in Q1 2009 to $115 billion in Q3 2017), e-commerce only accounted for about 10 percent of total retail sales in 2017.
In 2016, global online sales totaled $1.8 trillion. Remarkably, this $1.8 trillion was spent by only 1.5 billion people — a mere 20 percent of Earth’s global population that year.
There’s plenty more room for digital disruption.
AI and the Retail Experience
For the business owner, AI will demonetize e-commerce operations with automated customer service, ultra-accurate supply chain modeling, marketing content generation, and advertising.
In the case of customer service, imagine an AI that is trained by every customer interaction, learns how to answer any consumer question perfectly, and offers feedback to product designers and company owners as a result.
Facebook’s handover protocol allows live customer service representatives and language-learning bots to work within the same Facebook Messenger conversation.
Taking it one step further, imagine an AI that is empathic to a consumer’s frustration, that can take any amount of abuse and come back with a smile every time. As one example, meet Ava. “Ava is a virtual customer service agent, to bring a whole new level of personalization and brand experience to that customer experience on a day-to-day basis,” says Greg Cross, CEO of Ava’s creator, an Austrian company called Soul Machines.
Predictive modeling and machine learning are also optimizing product ordering and the supply chain process. For example, Skubana, a platform for online sellers, leverages data analytics to provide entrepreneurs constant product performance feedback and maintain optimal warehouse stock levels.
Blockchain is set to follow suit in the retail space. ShipChain and Ambrosus plan to introduce transparency and trust into shipping and production, further reducing costs for entrepreneurs and consumers.
Meanwhile, for consumers, personal shopping assistants are shifting the psychology of the standard shopping experience.
Amazon’s Alexa marks an important user interface moment in this regard.
Alexa is in her infancy with voice search and vocal controls for smart homes. Already, Amazon’s Alexa users, on average, spent more on Amazon.com when purchasing than standard Amazon Prime customers — $1,700 versus $1,400.
As I’ve discussed in previous posts, the future combination of virtual reality shopping, coupled with a personalized, AI-enabled fashion advisor will make finding, selecting, and ordering products fast and painless for consumers.
But let’s take it one step further.
Imagine a future in which your personal AI shopper knows your desires better than you do. Possible? I think so. After all, our future AIs will follow us, watch us, and observe our interactions — including how long we glance at objects, our facial expressions, and much more.
In this future, shopping might be as easy as saying, “Buy me a new outfit for Saturday night’s dinner party,” followed by a surprise-and-delight moment in which the outfit that arrives is perfect.
In this future world of AI-enabled shopping, one of the most disruptive implications is that advertising is now dead.
In a world where an AI is buying my stuff, and I’m no longer in the decision loop, why would a big brand ever waste money on a Super Bowl advertisement?
The dematerialization, demonetization, and democratization of personalized shopping has only just begun.
The In-Store Experience: Experiential Retailing
In 2017, over 6,700 brick-and-mortar retail stores closed their doors, surpassing the former record year for store closures set in 2008 during the financial crisis. Regardless, business is still booming.
As shoppers seek the convenience of online shopping, brick-and-mortar stores are tapping into the power of the experience economy.
Rather than focusing on the practicality of the products they buy, consumers are instead seeking out the experience of going shopping.
The Internet of Things, artificial intelligence, and computation are exponentially improving the in-person consumer experience.
As AI dominates curated online shopping, AI and data analytics tools are also empowering real-life store owners to optimize staffing, marketing strategies, customer relationship management, and inventory logistics.
In the short term,retail store locations will serve as the next big user interface for production 3D printing (custom 3D printed clothes at the Ministry of Supply), virtual and augmented reality (DIY skills clinics), and the Internet of Things (checkout-less shopping).
In the long term,we’ll see how our desire for enhanced productivity and seamless consumption balances with our preference for enjoyable real-life consumer experiences — all of which will be driven by exponential technologies.
One thing is certain: the nominal shopping experience is on the verge of a major transformation.
Implications
The convergence of exponential technologies has already revamped how and where we shop, how we use our time, and how much we pay.
Twenty years ago, Amazon showed us how the web could offer each of us the long tail of available reading material, and since then, the world of e-commerce has exploded.
And yet we still haven’t experienced the cost savings coming our way from drone delivery, the Internet of Things, tokenized ecosystems, the impact of truly powerful AI, or even the other major applications for 3D printing and AR/VR.
Perhaps nothing will be more transformed than today’s $20 trillion retail sector.
Hold on, stay tuned, and get your AI-enabled cryptocurrency ready.
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Posted in Human Robots
#432031 Why the Rise of Self-Driving Vehicles ...
It’s been a long time coming. For years Waymo (formerly known as Google Chauffeur) has been diligently developing, driving, testing and refining its fleets of various models of self-driving cars. Now Waymo is going big. The company recently placed an order for several thousand new Chrysler Pacifica minivans and next year plans to launch driverless taxis in a number of US cities.
This deal raises one of the biggest unanswered questions about autonomous vehicles: if fleets of driverless taxis make it cheap and easy for regular people to get around, what’s going to happen to car ownership?
One popular line of thought goes as follows: as autonomous ride-hailing services become ubiquitous, people will no longer need to buy their own cars. This notion has a certain logical appeal. It makes sense to assume that as driverless taxis become widely available, most of us will eagerly sell the family car and use on-demand taxis to get to work, run errands, or pick up the kids. After all, vehicle ownership is pricey and most cars spend the vast majority of their lives parked.
Even experts believe commercial availability of autonomous vehicles will cause car sales to drop.
Market research firm KPMG estimates that by 2030, midsize car sales in the US will decline from today’s 5.4 million units sold each year to nearly half that number, a measly 2.1 million units. Another market research firm, ReThinkX, offers an even more pessimistic estimate (or optimistic, depending on your opinion of cars), predicting that autonomous vehicles will reduce consumer demand for new vehicles by a whopping 70 percent.
The reality is that the impending death of private vehicle sales is greatly exaggerated. Despite the fact that autonomous taxis will be a beneficial and widely-embraced form of urban transportation, we will witness the opposite. Most people will still prefer to own their own autonomous vehicle. In fact, the total number of units of autonomous vehicles sold each year is going to increase rather than decrease.
When people predict the demise of car ownership, they are overlooking the reality that the new autonomous automotive industry is not going to be just a re-hash of today’s car industry with driverless vehicles. Instead, the automotive industry of the future will be selling what could be considered an entirely new product: a wide variety of intelligent, self-guiding transportation robots. When cars become a widely used type of transportation robot, they will be cheap, ubiquitous, and versatile.
Several unique characteristics of autonomous vehicles will ensure that people will continue to buy their own cars.
1. Cost: Thanks to simpler electric engines and lighter auto bodies, autonomous vehicles will be cheaper to buy and maintain than today’s human-driven vehicles. Some estimates bring the price to $10K per vehicle, a stark contrast with today’s average of $30K per vehicle.
2. Personal belongings: Consumers will be able to do much more in their driverless vehicles, including work, play, and rest. This means they will want to keep more personal items in their cars.
3. Frequent upgrades: The average (human-driven) car today is owned for 10 years. As driverless cars become software-driven devices, their price/performance ratio will track to Moore’s law. Their rapid improvement will increase the appeal and frequency of new vehicle purchases.
4. Instant accessibility: In a dense urban setting, a driverless taxi is able to show up within minutes of being summoned. But not so in rural areas, where people live miles apart. For many, delay and “loss of control” over their own mobility will increase the appeal of owning their own vehicle.
5. Diversity of form and function: Autonomous vehicles will be available in a wide variety of sizes and shapes. Consumers will drive demand for custom-made, purpose-built autonomous vehicles whose form is adapted for a particular function.
Let’s explore each of these characteristics in more detail.
Autonomous vehicles will cost less for several reasons. For one, they will be powered by electric engines, which are cheaper to construct and maintain than gasoline-powered engines. Removing human drivers will also save consumers money. Autonomous vehicles will be much less likely to have accidents, hence they can be built out of lightweight, lower-cost materials and will be cheaper to insure. With the human interface no longer needed, autonomous vehicles won’t be burdened by the manufacturing costs of a complex dashboard, steering wheel, and foot pedals.
While hop-on, hop-off autonomous taxi-based mobility services may be ideal for some of the urban population, several sizeable customer segments will still want to own their own cars.
These include people who live in sparsely-populated rural areas who can’t afford to wait extended periods of time for a taxi to appear. Families with children will prefer to own their own driverless cars to house their childrens’ car seats and favorite toys and sippy cups. Another loyal car-buying segment will be die-hard gadget-hounds who will eagerly buy a sexy upgraded model every year or so, unable to resist the siren song of AI that is three times as safe, or a ride that is twice as smooth.
Finally, consider the allure of robotic diversity.
Commuters will invest in a home office on wheels, a sleek, traveling workspace resembling the first-class suite on an airplane. On the high end of the market, city-dwellers and country-dwellers alike will special-order custom-made autonomous vehicles whose shape and on-board gadgetry is adapted for a particular function or hobby. Privately-owned small businesses will buy their own autonomous delivery robot that could range in size from a knee-high, last-mile delivery pod, to a giant, long-haul shipping device.
As autonomous vehicles near commercial viability, Waymo’s procurement deal with Fiat Chrysler is just the beginning.
The exact value of this future automotive industry has yet to be defined, but research from Intel’s internal autonomous vehicle division estimates this new so-called “passenger economy” could be worth nearly $7 trillion a year. To position themselves to capture a chunk of this potential revenue, companies whose businesses used to lie in previously disparate fields such as robotics, software, ships, and entertainment (to name but a few) have begun to form a bewildering web of what they hope will be symbiotic partnerships. Car hailing and chip companies are collaborating with car rental companies, who in turn are befriending giant software firms, who are launching joint projects with all sizes of hardware companies, and so on.
Last year, car companies sold an estimated 80 million new cars worldwide. Over the course of nearly a century, car companies and their partners, global chains of suppliers and service providers, have become masters at mass-producing and maintaining sturdy and cost-effective human-driven vehicles. As autonomous vehicle technology becomes ready for mainstream use, traditional automotive companies are being forced to grapple with the painful realization that they must compete in a new playing field.
The challenge for traditional car-makers won’t be that people no longer want to own cars. Instead, the challenge will be learning to compete in a new and larger transportation industry where consumers will choose their product according to the appeal of its customized body and the quality of its intelligent software.
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Melba Kurman and Hod Lipson are the authors of Driverless: Intelligent Cars and the Road Ahead and Fabricated: the New World of 3D Printing.
Image Credit: hfzimages / Shutterstock.com
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Posted in Human Robots
#431592 Reactive Content Will Get to Know You ...
The best storytellers react to their audience. They look for smiles, signs of awe, or boredom; they simultaneously and skillfully read both the story and their sitters. Kevin Brooks, a seasoned storyteller working for Motorola’s Human Interface Labs, explains, “As the storyteller begins, they must tune in to… the audience’s energy. Based on this energy, the storyteller will adjust their timing, their posture, their characterizations, and sometimes even the events of the story. There is a dialog between audience and storyteller.”
Shortly after I read the script to Melita, the latest virtual reality experience from Madrid-based immersive storytelling company Future Lighthouse, CEO Nicolas Alcalá explained to me that the piece is an example of “reactive content,” a concept he’s been working on since his days at Singularity University.
For the first time in history, we have access to technology that can merge the reactive and affective elements of oral storytelling with the affordances of digital media, weaving stunning visuals, rich soundtracks, and complex meta-narratives in a story arena that has the capability to know you more intimately than any conventional storyteller could.
It’s no understatement to say that the storytelling potential here is phenomenal.
In short, we can refer to content as reactive if it reads and reacts to users based on their body rhythms, emotions, preferences, and data points. Artificial intelligence is used to analyze users’ behavior or preferences to sculpt unique storylines and narratives, essentially allowing for a story that changes in real time based on who you are and how you feel.
The development of reactive content will allow those working in the industry to go one step further than simply translating the essence of oral storytelling into VR. Rather than having a narrative experience with a digital storyteller who can read you, reactive content has the potential to create an experience with a storyteller who knows you.
This means being able to subtly insert minor personal details that have a specific meaning to the viewer. When we talk to our friends we often use experiences we’ve shared in the past or knowledge of our audience to give our story as much resonance as possible. Targeting personal memories and aspects of our lives is a highly effective way to elicit emotions and aid in visualizing narratives. When you can do this with the addition of visuals, music, and characters—all lifted from someone’s past—you have the potential for overwhelmingly engaging and emotionally-charged content.
Future Lighthouse inform me that for now, reactive content will rely primarily on biometric feedback technology such as breathing, heartbeat, and eye tracking sensors. A simple example would be a story in which parts of the environment or soundscape change in sync with the user’s heartbeat and breathing, or characters who call you out for not paying attention.
The next step would be characters and situations that react to the user’s emotions, wherein algorithms analyze biometric information to make inferences about states of emotional arousal (“why are you so nervous?” etc.). Another example would be implementing the use of “arousal parameters,” where the audience can choose what level of “fear” they want from a VR horror story before algorithms modulate the experience using information from biometric feedback devices.
The company’s long-term goal is to gather research on storytelling conventions and produce a catalogue of story “wireframes.” This entails distilling the basic formula to different genres so they can then be fleshed out with visuals, character traits, and soundtracks that are tailored for individual users based on their deep data, preferences, and biometric information.
The development of reactive content will go hand in hand with a renewed exploration of diverging, dynamic storylines, and multi-narratives, a concept that hasn’t had much impact in the movie world thus far. In theory, the idea of having a story that changes and mutates is captivating largely because of our love affair with serendipity and unpredictability, a cultural condition theorist Arthur Kroker refers to as the “hypertextual imagination.” This feeling of stepping into the unknown with the possibility of deviation from the habitual translates as a comforting reminder that our own lives can take exciting and unexpected turns at any moment.
The inception of the concept into mainstream culture dates to the classic Choose Your Own Adventure book series that launched in the late 70s, which in its literary form had great success. However, filmic takes on the theme have made somewhat less of an impression. DVDs like I’m Your Man (1998) and Switching (2003) both use scene selection tools to determine the direction of the storyline.
A more recent example comes from Kino Industries, who claim to have developed the technology to allow filmmakers to produce interactive films in which viewers can use smartphones to quickly vote on which direction the narrative takes at numerous decision points throughout the film.
The main problem with diverging narrative films has been the stop-start nature of the interactive element: when I’m immersed in a story I don’t want to have to pick up a controller or remote to select what’s going to happen next. Every time the audience is given the option to take a new path (“press this button”, “vote on X, Y, Z”) the narrative— and immersion within that narrative—is temporarily halted, and it takes the mind a while to get back into this state of immersion.
Reactive content has the potential to resolve these issues by enabling passive interactivity—that is, input and output without having to pause and actively make decisions or engage with the hardware. This will result in diverging, dynamic narratives that will unfold seamlessly while being dependent on and unique to the specific user and their emotions. Passive interactivity will also remove the game feel that can often be a symptom of interactive experiences and put a viewer somewhere in the middle: still firmly ensconced in an interactive dynamic narrative, but in a much subtler way.
While reading the Melita script I was particularly struck by a scene in which the characters start to engage with the user and there’s a synchronicity between the user’s heartbeat and objects in the virtual world. As the narrative unwinds and the words of Melita’s character get more profound, parts of the landscape, which seemed to be flashing and pulsating at random, come together and start to mimic the user’s heartbeat.
In 2013, Jane Aspell of Anglia Ruskin University (UK) and Lukas Heydrich of the Swiss Federal Institute of Technology proved that a user’s sense of presence and identification with a virtual avatar could be dramatically increased by syncing the on-screen character with the heartbeat of the user. The relationship between bio-digital synchronicity, immersion, and emotional engagement is something that will surely have revolutionary narrative and storytelling potential.
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Posted in Human Robots