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#433282 The 4 Waves of AI: Who Will Own the ...

Recently, I picked up Kai-Fu Lee’s newest book, AI Superpowers.

Kai-Fu Lee is one of the most plugged-in AI investors on the planet, managing over $2 billion between six funds and over 300 portfolio companies in the US and China.

Drawing from his pioneering work in AI, executive leadership at Microsoft, Apple, and Google (where he served as founding president of Google China), and his founding of VC fund Sinovation Ventures, Lee shares invaluable insights about:

The four factors driving today’s AI ecosystems;
China’s extraordinary inroads in AI implementation;
Where autonomous systems are headed;
How we’ll need to adapt.

With a foothold in both Beijing and Silicon Valley, Lee looks at the power balance between Chinese and US tech behemoths—each turbocharging new applications of deep learning and sweeping up global markets in the process.

In this post, I’ll be discussing Lee’s “Four Waves of AI,” an excellent framework for discussing where AI is today and where it’s going. I’ll also be featuring some of the hottest Chinese tech companies leading the charge, worth watching right now.

I’m super excited that this Tuesday, I’ve scored the opportunity to sit down with Kai-Fu Lee to discuss his book in detail via a webinar.

With Sino-US competition heating up, who will own the future of technology?

Let’s dive in.

The First Wave: Internet AI
In this first stage of AI deployment, we’re dealing primarily with recommendation engines—algorithmic systems that learn from masses of user data to curate online content personalized to each one of us.

Think Amazon’s spot-on product recommendations, or that “Up Next” YouTube video you just have to watch before getting back to work, or Facebook ads that seem to know what you’ll buy before you do.

Powered by the data flowing through our networks, internet AI leverages the fact that users automatically label data as we browse. Clicking versus not clicking; lingering on a web page longer than we did on another; hovering over a Facebook video to see what happens at the end.

These cascades of labeled data build a detailed picture of our personalities, habits, demands, and desires: the perfect recipe for more tailored content to keep us on a given platform.

Currently, Lee estimates that Chinese and American companies stand head-to-head when it comes to deployment of internet AI. But given China’s data advantage, he predicts that Chinese tech giants will have a slight lead (60-40) over their US counterparts in the next five years.

While you’ve most definitely heard of Alibaba and Baidu, you’ve probably never stumbled upon Toutiao.

Starting out as a copycat of America’s wildly popular Buzzfeed, Toutiao reached a valuation of $20 billion by 2017, dwarfing Buzzfeed’s valuation by more than a factor of 10. But with almost 120 million daily active users, Toutiao doesn’t just stop at creating viral content.

Equipped with natural-language processing and computer vision, Toutiao’s AI engines survey a vast network of different sites and contributors, rewriting headlines to optimize for user engagement, and processing each user’s online behavior—clicks, comments, engagement time—to curate individualized news feeds for millions of consumers.

And as users grow more engaged with Toutiao’s content, the company’s algorithms get better and better at recommending content, optimizing headlines, and delivering a truly personalized feed.

It’s this kind of positive feedback loop that fuels today’s AI giants surfing the wave of internet AI.

The Second Wave: Business AI
While internet AI takes advantage of the fact that netizens are constantly labeling data via clicks and other engagement metrics, business AI jumps on the data that traditional companies have already labeled in the past.

Think banks issuing loans and recording repayment rates; hospitals archiving diagnoses, imaging data, and subsequent health outcomes; or courts noting conviction history, recidivism, and flight.

While we humans make predictions based on obvious root causes (strong features), AI algorithms can process thousands of weakly correlated variables (weak features) that may have much more to do with a given outcome than the usual suspects.

By scouting out hidden correlations that escape our linear cause-and-effect logic, business AI leverages labeled data to train algorithms that outperform even the most veteran of experts.

Apply these data-trained AI engines to banking, insurance, and legal sentencing, and you get minimized default rates, optimized premiums, and plummeting recidivism rates.

While Lee confidently places America in the lead (90-10) for business AI, China’s substantial lag in structured industry data could actually work in its favor going forward.

In industries where Chinese startups can leapfrog over legacy systems, China has a major advantage.

Take Chinese app Smart Finance, for instance.

While Americans embraced credit and debit cards in the 1970s, China was still in the throes of its Cultural Revolution, largely missing the bus on this technology.

Fast forward to 2017, and China’s mobile payment spending outnumbered that of Americans’ by a ratio of 50 to 1. Without the competition of deeply entrenched credit cards, mobile payments were an obvious upgrade to China’s cash-heavy economy, embraced by 70 percent of China’s 753 million smartphone users by the end of 2017.

But by leapfrogging over credit cards and into mobile payments, China largely left behind the notion of credit.

And here’s where Smart Finance comes in.

An AI-powered app for microfinance, Smart Finance depends almost exclusively on its algorithms to make millions of microloans. For each potential borrower, the app simply requests access to a portion of the user’s phone data.

On the basis of variables as subtle as your typing speed and battery percentage, Smart Finance can predict with astounding accuracy your likelihood of repaying a $300 loan.

Such deployments of business AI and internet AI are already revolutionizing our industries and individual lifestyles. But still on the horizon lie two even more monumental waves— perception AI and autonomous AI.

The Third Wave: Perception AI
In this wave, AI gets an upgrade with eyes, ears, and myriad other senses, merging the digital world with our physical environments.

As sensors and smart devices proliferate through our homes and cities, we are on the verge of entering a trillion-sensor economy.

Companies like China’s Xiaomi are putting out millions of IoT-connected devices, and teams of researchers have already begun prototyping smart dust—solar cell- and sensor-geared particulates that can store and communicate troves of data anywhere, anytime.

As Kai-Fu explains, perception AI “will bring the convenience and abundance of the online world into our offline reality.” Sensor-enabled hardware devices will turn everything from hospitals to cars to schools into online-merge-offline (OMO) environments.

Imagine walking into a grocery store, scanning your face to pull up your most common purchases, and then picking up a virtual assistant (VA) shopping cart. Having pre-loaded your data, the cart adjusts your usual grocery list with voice input, reminds you to get your spouse’s favorite wine for an upcoming anniversary, and guides you through a personalized store route.

While we haven’t yet leveraged the full potential of perception AI, China and the US are already making incredible strides. Given China’s hardware advantage, Lee predicts China currently has a 60-40 edge over its American tech counterparts.

Now the go-to city for startups building robots, drones, wearable technology, and IoT infrastructure, Shenzhen has turned into a powerhouse for intelligent hardware, as I discussed last week. Turbocharging output of sensors and electronic parts via thousands of factories, Shenzhen’s skilled engineers can prototype and iterate new products at unprecedented scale and speed.

With the added fuel of Chinese government support and a relaxed Chinese attitude toward data privacy, China’s lead may even reach 80-20 in the next five years.

Jumping on this wave are companies like Xiaomi, which aims to turn bathrooms, kitchens, and living rooms into smart OMO environments. Having invested in 220 companies and incubated 29 startups that produce its products, Xiaomi surpassed 85 million intelligent home devices by the end of 2017, making it the world’s largest network of these connected products.

One KFC restaurant in China has even teamed up with Alipay (Alibaba’s mobile payments platform) to pioneer a ‘pay-with-your-face’ feature. Forget cash, cards, and cell phones, and let OMO do the work.

The Fourth Wave: Autonomous AI
But the most monumental—and unpredictable—wave is the fourth and final: autonomous AI.

Integrating all previous waves, autonomous AI gives machines the ability to sense and respond to the world around them, enabling AI to move and act productively.

While today’s machines can outperform us on repetitive tasks in structured and even unstructured environments (think Boston Dynamics’ humanoid Atlas or oncoming autonomous vehicles), machines with the power to see, hear, touch and optimize data will be a whole new ballgame.

Think: swarms of drones that can selectively spray and harvest entire farms with computer vision and remarkable dexterity, heat-resistant drones that can put out forest fires 100X more efficiently, or Level 5 autonomous vehicles that navigate smart roads and traffic systems all on their own.

While autonomous AI will first involve robots that create direct economic value—automating tasks on a one-to-one replacement basis—these intelligent machines will ultimately revamp entire industries from the ground up.

Kai-Fu Lee currently puts America in a commanding lead of 90-10 in autonomous AI, especially when it comes to self-driving vehicles. But Chinese government efforts are quickly ramping up the competition.

Already in China’s Zhejiang province, highway regulators and government officials have plans to build China’s first intelligent superhighway, outfitted with sensors, road-embedded solar panels and wireless communication between cars, roads and drivers.

Aimed at increasing transit efficiency by up to 30 percent while minimizing fatalities, the project may one day allow autonomous electric vehicles to continuously charge as they drive.

A similar government-fueled project involves Beijing’s new neighbor Xiong’an. Projected to take in over $580 billion in infrastructure spending over the next 20 years, Xiong’an New Area could one day become the world’s first city built around autonomous vehicles.

Baidu is already working with Xiong’an’s local government to build out this AI city with an environmental focus. Possibilities include sensor-geared cement, computer vision-enabled traffic lights, intersections with facial recognition, and parking lots-turned parks.

Lastly, Lee predicts China will almost certainly lead the charge in autonomous drones. Already, Shenzhen is home to premier drone maker DJI—a company I’ll be visiting with 24 top executives later this month as part of my annual China Platinum Trip.

Named “the best company I have ever encountered” by Chris Anderson, DJI owns an estimated 50 percent of the North American drone market, supercharged by Shenzhen’s extraordinary maker movement.

While the long-term Sino-US competitive balance in fourth wave AI remains to be seen, one thing is certain: in a matter of decades, we will witness the rise of AI-embedded cityscapes and autonomous machines that can interact with the real world and help solve today’s most pressing grand challenges.

Join Me
Webinar with Dr. Kai-Fu Lee: Dr. Kai-Fu Lee — one of the world’s most respected experts on AI — and I will discuss his latest book AI Superpowers: China, Silicon Valley, and the New World Order. Artificial Intelligence is reshaping the world as we know it. With U.S.-Sino competition heating up, who will own the future of technology? Register here for the free webinar on September 4th, 2018 from 11:00am–12:30pm PST.

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#432998 “Internet Of Things” ...

This new IoT Humanoid Robot from Greece is operated by an Android Application. I dunno, it’s all Greek to me! 😉

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#432891 This Week’s Awesome Stories From ...

TRANSPORTATION
Elon Musk Presents His Tunnel Vision to the People of LA
Jack Stewart and Aarian Marshall | Wired
“Now, Musk wants to build this new, 2.1-mile tunnel, near LA’s Sepulveda pass. It’s all part of his broader vision of a sprawling network that could take riders from Sherman Oaks in the north to Long Beach Airport in the south, Santa Monica in the west to Dodger Stadium in the east—without all that troublesome traffic.”

ROBOTICS
Feel What This Robot Feels Through Tactile Expressions
Evan Ackerman | IEEE Spectrum
“Guy Hoffman’s Human-Robot Collaboration & Companionship (HRC2) Lab at Cornell University is working on a new robot that’s designed to investigate this concept of textural communication, which really hasn’t been explored in robotics all that much. The robot uses a pneumatically powered elastomer skin that can be dynamically textured with either goosebumps or spikes, which should help it communicate more effectively, especially if what it’s trying to communicate is, ‘Don’t touch me!’”

VIRTUAL REALITY
In Virtual Reality, How Much Body Do You Need?
Steph Yin | The New York Times
“In a paper published Tuesday in Scientific Reports, they showed that animating virtual hands and feet alone is enough to make people feel their sense of body drift toward an invisible avatar. Their work fits into a corpus of research on illusory body ownership, which has challenged understandings of perception and contributed to therapies like treating pain for amputees who experience phantom limb.”

MEDICINE
How Graphene and Gold Could Help Us Test Drugs and Monitor Cancer
Angela Chen | The Verge
“In today’s study, scientists learned to precisely control the amount of electricity graphene generates by changing how much light they shine on the material. When they grew heart cells on the graphene, they could manipulate the cells too, says study co-author Alex Savtchenko, a physicist at the University of California, San Diego. They could make it beat 1.5 times faster, three times faster, 10 times faster, or whatever they needed.”

DISASTER RELIEF
Robotic Noses Could Be the Future of Disaster Rescue—If They Can Outsniff Search Dogs
Eleanor Cummins | Popular Science
“While canine units are a tried and fairly true method for identifying people trapped in the wreckage of a disaster, analytical chemists have for years been working in the lab to create a robotic alternative. A synthetic sniffer, they argue, could potentially prove to be just as or even more reliable than a dog, more resilient in the face of external pressures like heat and humidity, and infinitely more portable.”

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#432691 Is the Secret to Significantly Longer ...

Once upon a time, a powerful Sumerian king named Gilgamesh went on a quest, as such characters often do in these stories of myth and legend. Gilgamesh had witnessed the death of his best friend, Enkidu, and, fearing a similar fate, went in search of immortality. The great king failed to find the secret of eternal life but took solace that his deeds would live well beyond his mortal years.

Fast-forward four thousand years, give or take a century, and Gilgamesh (as famous as any B-list celebrity today, despite the passage of time) would probably be heartened to learn that many others have taken up his search for longevity. Today, though, instead of battling epic monsters and the machinations of fickle gods, those seeking to enhance and extend life are cutting-edge scientists and visionary entrepreneurs who are helping unlock the secrets of human biology.

Chief among them is Aubrey de Grey, a biomedical gerontologist who founded the SENS Research Foundation, a Silicon Valley-based research organization that seeks to advance the application of regenerative medicine to age-related diseases. SENS stands for Strategies for Engineered Negligible Senescence, a term coined by de Grey to describe a broad array (seven, to be precise) of medical interventions that attempt to repair or prevent different types of molecular and cellular damage that eventually lead to age-related diseases like cancer and Alzheimer’s.

Many of the strategies focus on senescent cells, which accumulate in tissues and organs as people age. Not quite dead, senescent cells stop dividing but are still metabolically active, spewing out all sorts of proteins and other molecules that can cause inflammation and other problems. In a young body, that’s usually not a problem (and probably part of general biological maintenance), as a healthy immune system can go to work to put out most fires.

However, as we age, senescent cells continue to accumulate, and at some point the immune system retires from fire watch. Welcome to old age.

Of Mice and Men
Researchers like de Grey believe that treating the cellular underpinnings of aging could not only prevent disease but significantly extend human lifespans. How long? Well, if you’re talking to de Grey, Biblical proportions—on the order of centuries.

De Grey says that science has made great strides toward that end in the last 15 years, such as the ability to copy mitochondrial DNA to the nucleus. Mitochondria serve as the power plant of the cell but are highly susceptible to mutations that lead to cellular degeneration. Copying the mitochondrial DNA into the nucleus would help protect it from damage.

Another achievement occurred about six years ago when scientists first figured out how to kill senescent cells. That discovery led to a spate of new experiments in mice indicating that removing these ticking-time-bomb cells prevented disease and even extended their lifespans. Now the anti-aging therapy is about to be tested in humans.

“As for the next few years, I think the stream of advances is likely to become a flood—once the first steps are made, things get progressively easier and faster,” de Grey tells Singularity Hub. “I think there’s a good chance that we will achieve really dramatic rejuvenation of mice within only six to eight years: maybe taking middle-aged mice and doubling their remaining lifespan, which is an order of magnitude more than can be done today.”

Not Horsing Around
Richard G.A. Faragher, a professor of biogerontology at the University of Brighton in the United Kingdom, recently made discoveries in the lab regarding the rejuvenation of senescent cells with chemical compounds found in foods like chocolate and red wine. He hopes to apply his findings to an animal model in the future—in this case,horses.

“We have been very fortunate in receiving some funding from an animal welfare charity to look at potential treatments for older horses,” he explains to Singularity Hub in an email. “I think this is a great idea. Many aspects of the physiology we are studying are common between horses and humans.”

What Faragher and his colleagues demonstrated in a paper published in BMC Cell Biology last year was that resveralogues, chemicals based on resveratrol, were able to reactivate a protein called a splicing factor that is involved in gene regulation. Within hours, the chemicals caused the cells to rejuvenate and start dividing like younger cells.

“If treatments work in our old pony systems, then I am sure they could be translated into clinical trials in humans,” Faragher says. “How long is purely a matter of money. Given suitable funding, I would hope to see a trial within five years.”

Show Them the Money
Faragher argues that the recent breakthroughs aren’t because a result of emerging technologies like artificial intelligence or the gene-editing tool CRISPR, but a paradigm shift in how scientists understand the underpinnings of cellular aging. Solving the “aging problem” isn’t a question of technology but of money, he says.

“Frankly, when AI and CRISPR have removed cystic fibrosis, Duchenne muscular dystrophy or Gaucher syndrome, I’ll be much more willing to hear tales of amazing progress. Go fix a single, highly penetrant genetic disease in the population using this flashy stuff and then we’ll talk,” he says. “My faith resides in the most potent technological development of all: money.”

De Grey is less flippant about the role that technology will play in the quest to defeat aging. AI, CRISPR, protein engineering, advances in stem cell therapies, and immune system engineering—all will have a part.

“There is not really anything distinctive about the ways in which these technologies will contribute,” he says. “What’s distinctive is that we will need all of these technologies, because there are so many different types of damage to repair and they each require different tricks.”

It’s in the Blood
A startup in the San Francisco Bay Area believes machines can play a big role in discovering the right combination of factors that lead to longer and healthier lives—and then develop drugs that exploit those findings.

BioAge Labs raised nearly $11 million last year for its machine learning platform that crunches big data sets to find blood factors, such as proteins or metabolites, that are tied to a person’s underlying biological age. The startup claims that these factors can predict how long a person will live.

“Our interest in this comes out of research into parabiosis, where joining the circulatory systems of old and young mice—so that they share the same blood—has been demonstrated to make old mice healthier and more robust,” Dr. Eric Morgen, chief medical officer at BioAge, tells Singularity Hub.

Based on that idea, he explains, it should be possible to alter those good or bad factors to produce a rejuvenating effect.

“Our main focus at BioAge is to identify these types of factors in our human cohort data, characterize the important molecular pathways they are involved in, and then drug those pathways,” he says. “This is a really hard problem, and we use machine learning to mine these complex datasets to determine which individual factors and molecular pathways best reflect biological age.”

Saving for the Future
Of course, there’s no telling when any of these anti-aging therapies will come to market. That’s why Forever Labs, a biotechnology startup out of Ann Arbor, Michigan, wants your stem cells now. The company offers a service to cryogenically freeze stem cells taken from bone marrow.

The theory behind the procedure, according to Forever Labs CEO Steven Clausnitzer, is based on research showing that stem cells may be a key component for repairing cellular damage. That’s because stem cells can develop into many different cell types and can divide endlessly to replenish other cells. Clausnitzer notes that there are upwards of a thousand clinical studies looking at using stem cells to treat age-related conditions such as cardiovascular disease.

However, stem cells come with their own expiration date, which usually coincides with the age that most people start experiencing serious health problems. Stem cells harvested from bone marrow at a younger age can potentially provide a therapeutic resource in the future.

“We believe strongly that by having access to your own best possible selves, you’re going to be well positioned to lead healthier, longer lives,” he tells Singularity Hub.

“There’s a compelling argument to be made that if you started to maintain the bone marrow population, the amount of nuclear cells in your bone marrow, and to re-up them so that they aren’t declining with age, it stands to reason that you could absolutely mitigate things like cardiovascular disease and stroke and Alzheimer’s,” he adds.

Clausnitzer notes that the stored stem cells can be used today in developing therapies to treat chronic conditions such as osteoarthritis. However, the more exciting prospect—and the reason he put his own 38-year-old stem cells on ice—is that he believes future stem cell therapies can help stave off the ravages of age-related disease.

“I can start reintroducing them not to treat age-related disease but to treat the decline in the stem-cell niche itself, so that I don’t ever get an age-related disease,” he says. “I don’t think that it equates to immortality, but it certainly is a step in that direction.”

Indecisive on Immortality
The societal implications of a longer-living human species are a guessing game at this point. We do know that by mid-century, the global population of those aged 65 and older will reach 1.6 billion, while those older than 80 will hit nearly 450 million, according to the National Academies of Science. If many of those people could enjoy healthy lives in their twilight years, an enormous medical cost could be avoided.

Faragher is certainly working toward a future where human health is ubiquitous. Human immortality is another question entirely.

“The longer lifespans become, the more heavily we may need to control birth rates and thus we may have fewer new minds. This could have a heavy ‘opportunity cost’ in terms of progress,” he says.

And does anyone truly want to live forever?

“There have been happy moments in my life but I have also suffered some traumatic disappointments. No [drug] will wash those experiences out of me,” Faragher says. “I no longer view my future with unqualified enthusiasm, and I do not think I am the only middle-aged man to feel that way. I don’t think it is an accident that so many ‘immortalists’ are young.

“They should be careful what they wish for.”

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#432467 Dungeons and Dragons, Not Chess and Go: ...

Everyone had died—not that you’d know it, from how they were laughing about their poor choices and bad rolls of the dice. As a social anthropologist, I study how people understand artificial intelligence (AI) and our efforts towards attaining it; I’m also a life-long fan of Dungeons and Dragons (D&D), the inventive fantasy roleplaying game. During a recent quest, when I was playing an elf ranger, the trainee paladin (or holy knight) acted according to his noble character, and announced our presence at the mouth of a dragon’s lair. The results were disastrous. But while success in D&D means “beating the bad guy,” the game is also a creative sandbox, where failure can count as collective triumph so long as you tell a great tale.

What does this have to do with AI? In computer science, games are frequently used as a benchmark for an algorithm’s “intelligence.” The late Robert Wilensky, a professor at the University of California, Berkeley and a leading figure in AI, offered one reason why this might be. Computer scientists “looked around at who the smartest people were, and they were themselves, of course,” he told the authors of Compulsive Technology: Computers as Culture (1985). “They were all essentially mathematicians by training, and mathematicians do two things—they prove theorems and play chess. And they said, hey, if it proves a theorem or plays chess, it must be smart.” No surprise that demonstrations of AI’s “smarts” have focused on the artificial player’s prowess.

Yet the games that get chosen—like Go, the main battlefield for Google DeepMind’s algorithms in recent years—tend to be tightly bounded, with set objectives and clear paths to victory or defeat. These experiences have none of the open-ended collaboration of D&D. Which got me thinking: do we need a new test for intelligence, where the goal is not simply about success, but storytelling? What would it mean for an AI to “pass” as human in a game of D&D? Instead of the Turing test, perhaps we need an elf ranger test?

Of course, this is just a playful thought experiment, but it does highlight the flaws in certain models of intelligence. First, it reveals how intelligence has to work across a variety of environments. D&D participants can inhabit many characters in many games, and the individual player can “switch” between roles (the fighter, the thief, the healer). Meanwhile, AI researchers know that it’s super difficult to get a well-trained algorithm to apply its insights in even slightly different domains—something that we humans manage surprisingly well.

Second, D&D reminds us that intelligence is embodied. In computer games, the bodily aspect of the experience might range from pressing buttons on a controller in order to move an icon or avatar (a ping-pong paddle; a spaceship; an anthropomorphic, eternally hungry, yellow sphere), to more recent and immersive experiences involving virtual-reality goggles and haptic gloves. Even without these add-ons, games can still produce biological responses associated with stress and fear (if you’ve ever played Alien: Isolation you’ll understand). In the original D&D, the players encounter the game while sitting around a table together, feeling the story and its impact. Recent research in cognitive science suggests that bodily interactions are crucial to how we grasp more abstract mental concepts. But we give minimal attention to the embodiment of artificial agents, and how that might affect the way they learn and process information.

Finally, intelligence is social. AI algorithms typically learn through multiple rounds of competition, in which successful strategies get reinforced with rewards. True, it appears that humans also evolved to learn through repetition, reward and reinforcement. But there’s an important collaborative dimension to human intelligence. In the 1930s, the psychologist Lev Vygotsky identified the interaction of an expert and a novice as an example of what became called “scaffolded” learning, where the teacher demonstrates and then supports the learner in acquiring a new skill. In unbounded games, this cooperation is channelled through narrative. Games of It among small children can evolve from win/lose into attacks by terrible monsters, before shifting again to more complex narratives that explain why the monsters are attacking, who is the hero, and what they can do and why—narratives that aren’t always logical or even internally compatible. An AI that could engage in social storytelling is doubtless on a surer, more multifunctional footing than one that plays chess; and there’s no guarantee that chess is even a step on the road to attaining intelligence of this sort.

In some ways, this failure to look at roleplaying as a technical hurdle for intelligence is strange. D&D was a key cultural touchstone for technologists in the 1980s and the inspiration for many early text-based computer games, as Katie Hafner and Matthew Lyon point out in Where Wizards Stay up Late: The Origins of the Internet (1996). Even today, AI researchers who play games in their free time often mention D&D specifically. So instead of beating adversaries in games, we might learn more about intelligence if we tried to teach artificial agents to play together as we do: as paladins and elf rangers.

This article was originally published at Aeon and has been republished under Creative Commons.

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