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#436470 Retail Robots Are on the Rise—at Every ...
The robots are coming! The robots are coming! On our sidewalks, in our skies, in our every store… Over the next decade, robots will enter the mainstream of retail.
As countless robots work behind the scenes to stock shelves, serve customers, and deliver products to our doorstep, the speed of retail will accelerate.
These changes are already underway. In this blog, we’ll elaborate on how robots are entering the retail ecosystem.
Let’s dive in.
Robot Delivery
On August 3rd, 2016, Domino’s Pizza introduced the Domino’s Robotic Unit, or “DRU” for short. The first home delivery pizza robot, the DRU looks like a cross between R2-D2 and an oversized microwave.
LIDAR and GPS sensors help it navigate, while temperature sensors keep hot food hot and cold food cold. Already, it’s been rolled out in ten countries, including New Zealand, France, and Germany, but its August 2016 debut was critical—as it was the first time we’d seen robotic home delivery.
And it won’t be the last.
A dozen or so different delivery bots are fast entering the market. Starship Technologies, for instance, a startup created by Skype founders Janus Friis and Ahti Heinla, has a general-purpose home delivery robot. Right now, the system is an array of cameras and GPS sensors, but upcoming models will include microphones, speakers, and even the ability—via AI-driven natural language processing—to communicate with customers. Since 2016, Starship has already carried out 50,000 deliveries in over 100 cities across 20 countries.
Along similar lines, Nuro—co-founded by Jiajun Zhu, one of the engineers who helped develop Google’s self-driving car—has a miniature self-driving car of its own. Half the size of a sedan, the Nuro looks like a toaster on wheels, except with a mission. This toaster has been designed to carry cargo—about 12 bags of groceries (version 2.0 will carry 20)—which it’s been doing for select Kroger stores since 2018. Domino’s also partnered with Nuro in 2019.
As these delivery bots take to our streets, others are streaking across the sky.
Back in 2016, Amazon came first, announcing Prime Air—the e-commerce giant’s promise of drone delivery in 30 minutes or less. Almost immediately, companies ranging from 7-Eleven and Walmart to Google and Alibaba jumped on the bandwagon.
While critics remain doubtful, the head of the FAA’s drone integration department recently said that drone deliveries may be “a lot closer than […] the skeptics think. [Companies are] getting ready for full-blown operations. We’re processing their applications. I would like to move as quickly as I can.”
In-Store Robots
While delivery bots start to spare us trips to the store, those who prefer shopping the old-fashioned way—i.e., in person—also have plenty of human-robot interaction in store. In fact, these robotics solutions have been around for a while.
In 2010, SoftBank introduced Pepper, a humanoid robot capable of understanding human emotion. Pepper is cute: 4 feet tall, with a white plastic body, two black eyes, a dark slash of a mouth, and a base shaped like a mermaid’s tail. Across her chest is a touch screen to aid in communication. And there’s been a lot of communication. Pepper’s cuteness is intentional, as it matches its mission: help humans enjoy life as much as possible.
Over 12,000 Peppers have been sold. She serves ice cream in Japan, greets diners at a Pizza Hut in Singapore, and dances with customers at a Palo Alto electronics store. More importantly, Pepper’s got company.
Walmart uses shelf-stocking robots for inventory control. Best Buy uses a robo-cashier, allowing select locations to operate 24-7. And Lowe’s Home Improvement employs the LoweBot—a giant iPad on wheels—to help customers find the items they need while tracking inventory along the way.
Warehouse Bots
Yet the biggest benefit robots provide might be in-warehouse logistics.
In 2012, when Amazon dished out $775 million for Kiva Systems, few could predict that just 6 years later, 45,000 Kiva robots would be deployed at all of their fulfillment centers, helping process a whopping 306 items per second during the Christmas season.
And many other retailers are following suit.
Order jeans from the Gap, and soon they’ll be sorted, packed, and shipped with the help of a Kindred robot. Remember the old arcade game where you picked up teddy bears with a giant claw? That’s Kindred, only her claw picks up T-shirts, pants, and the like, placing them in designated drop-off zones that resemble tiny mailboxes (for further sorting or shipping).
The big deal here is democratization. Kindred’s robot is cheap and easy to deploy, allowing smaller companies to compete with giants like Amazon.
Final Thoughts
For retailers interested in staying in business, there doesn’t appear to be much choice in the way of robotics.
By 2024, the US minimum wage is projected to be $15 an hour (the House of Representatives has already passed the bill, but the wage hike is meant to unfold gradually between now and 2025), and many consider that number far too low.
Yet, as human labor costs continue to climb, robots won’t just be coming, they’ll be here, there, and everywhere. It’s going to become increasingly difficult for store owners to justify human workers who call in sick, show up late, and can easily get injured. Robots work 24-7. They never take a day off, never need a bathroom break, health insurance, or parental leave.
Going forward, this spells a growing challenge of technological unemployment (a blog topic I will cover in the coming month). But in retail, robotics usher in tremendous benefits for companies and customers alike.
And while professional re-tooling initiatives and the transition of human capital from retail logistics to a booming experience economy take hold, robotic retail interaction and last-mile delivery will fundamentally transform our relationship with commerce.
This blog comes from The Future is Faster Than You Think—my upcoming book, to be released Jan 28th, 2020. To get an early copy and access up to $800 worth of pre-launch giveaways, sign up here!
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Image Credit: Image by imjanuary from Pixabay Continue reading
#436202 Trump CTO Addresses AI, Facial ...
Michael Kratsios, the Chief Technology Officer of the United States, took the stage at Stanford University last week to field questions from Stanford’s Eileen Donahoe and attendees at the 2019 Fall Conference of the Institute for Human-Centered Artificial Intelligence (HAI).
Kratsios, the fourth to hold the U.S. CTO position since its creation by President Barack Obama in 2009, was confirmed in August as President Donald Trump’s first CTO. Before joining the Trump administration, he was chief of staff at investment firm Thiel Capital and chief financial officer of hedge fund Clarium Capital. Donahoe is Executive Director of Stanford’s Global Digital Policy Incubator and served as the first U.S. Ambassador to the United Nations Human Rights Council during the Obama Administration.
The conversation jumped around, hitting on both accomplishments and controversies. Kratsios touted the administration’s success in fixing policy around the use of drones, its memorandum on STEM education, and an increase in funding for basic research in AI—though the magnitude of that increase wasn’t specified. He pointed out that the Trump administration’s AI policy has been a continuation of the policies of the Obama administration, and will continue to build on that foundation. As proof of this, he pointed to Trump’s signing of the American AI Initiative earlier this year. That executive order, Kratsios said, was intended to bring various government agencies together to coordinate their AI efforts and to push the idea that AI is a tool for the American worker. The AI Initiative, he noted, also took into consideration that AI will cause job displacement, and asked private companies to pledge to retrain workers.
The administration, he said, is also looking to remove barriers to AI innovation. In service of that goal, the government will, in the next month or so, release a regulatory guidance memo instructing government agencies about “how they should think about AI technologies,” said Kratsios.
U.S. vs China in AI
A few of the exchanges between Kratsios and Donahoe hit on current hot topics, starting with the tension between the U.S. and China.
Donahoe:
“You talk a lot about unique U.S. ecosystem. In which aspect of AI is the U.S. dominant, and where is China challenging us in dominance?
Kratsios:
“They are challenging us on machine vision. They have more data to work with, given that they have surveillance data.”
Donahoe:
“To what extent would you say the quantity of data collected and available will be a determining factor in AI dominance?”
Kratsios:
“It makes a big difference in the short term. But we do research on how we get over these data humps. There is a future where you don’t need as much data, a lot of federal grants are going to [research in] how you can train models using less data.”
Donahoe turned the conversation to a different tension—that between innovation and values.
Donahoe:
“A lot of conversation yesterday was about the tension between innovation and values, and how do you hold those things together and lead in both realms.”
Kratsios:
“We recognized that the U.S. hadn’t signed on to principles around developing AI. In May, we signed [the Organization for Economic Cooperation and Development Principles on Artificial Intelligence], coming together with other Western democracies to say that these are values that we hold dear.
[Meanwhile,] we have adversaries around the world using AI to surveil people, to suppress human rights. That is why American leadership is so critical: We want to come out with the next great product. And we want our values to underpin the use cases.”
A member of the audience pushed further:
“Maintaining U.S. leadership in AI might have costs in terms of individuals and society. What costs should individuals and society bear to maintain leadership?”
Kratsios:
“I don’t view the world that way. Our companies big and small do not hesitate to talk about the values that underpin their technology. [That is] markedly different from the way our adversaries think. The alternatives are so dire [that we] need to push efforts to bake the values that we hold dear into this technology.”
Facial recognition
And then the conversation turned to the use of AI for facial recognition, an application which (at least for police and other government agencies) was recently banned in San Francisco.
Donahoe:
“Some private sector companies have called for government regulation of facial recognition, and there already are some instances of local governments regulating it. Do you expect federal regulation of facial recognition anytime soon? If not, what ought the parameters be?”
Kratsios:
“A patchwork of regulation of technology is not beneficial for the country. We want to avoid that. Facial recognition has important roles—for example, finding lost or displaced children. There are use cases, but they need to be underpinned by values.”
A member of the audience followed up on that topic, referring to some data presented earlier at the HAI conference on bias in AI:
“Frequently the example of finding missing children is given as the example of why we should not restrict use of facial recognition. But we saw Joy Buolamwini’s presentation on bias in data. I would like to hear your thoughts about how government thinks we should use facial recognition, knowing about this bias.”
Kratsios:
“Fairness, accountability, and robustness are things we want to bake into any technology—not just facial recognition—as we build rules governing use cases.”
Immigration and innovation
A member of the audience brought up the issue of immigration:
“One major pillar of innovation is immigration, does your office advocate for it?”
Kratsios:
“Our office pushes for best and brightest people from around the world to come to work here and study here. There are a few efforts we have made to move towards a more merit-based immigration system, without congressional action. [For example, in] the H1-B visa system, you go through two lotteries. We switched the order of them in order to get more people with advanced degrees through.”
The government’s tech infrastructure
Donahoe brought the conversation around to the tech infrastructure of the government itself:
“We talk about the shiny object, AI, but the 80 percent is the unsexy stuff, at federal and state levels. We don’t have a modern digital infrastructure to enable all the services—like a research cloud. How do we create this digital infrastructure?”
Kratsios:
“I couldn’t agree more; the least partisan issue in Washington is about modernizing IT infrastructure. We spend like $85 billion a year on IT at the federal level, we can certainly do a better job of using those dollars.” Continue reading