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#432563 This Week’s Awesome Stories From ...

ARTIFICIAL INTELLIGENCE
Pedro Domingos on the Arms Race in Artificial Intelligence
Christoph Scheuermann and Bernhard Zand | Spiegel Online
“AI lowers the cost of knowledge by orders of magnitude. One good, effective machine learning system can do the work of a million people, whether it’s for commercial purposes or for cyberespionage. Imagine a country that produces a thousand times more knowledge than another. This is the challenge we are facing.”

BIOTECHNOLOGY
Gene Therapy Could Free Some People From a Lifetime of Blood Transfusions
Emily Mullin | MIT Technology Review
“A one-time, experimental treatment for an inherited blood disorder has shown dramatic results in a small study. …[Lead author Alexis Thompson] says the effect on patients has been remarkable. ‘They have been tied to this ongoing medical therapy that is burdensome and expensive for their whole lives,’ she says. ‘Gene therapy has allowed people to have aspirations and really pursue them.’ ”

ENVIRONMENT
The Revolutionary Giant Ocean Cleanup Machine Is About to Set Sail
Adele Peters | Fast Company
“By the end of 2018, the nonprofit says it will bring back its first harvest of ocean plastic from the North Pacific Gyre, along with concrete proof that the design works. The organization expects to bring 5,000 kilograms of plastic ashore per month with its first system. With a full fleet of systems deployed, it believes that it can collect half of the plastic trash in the Great Pacific Garbage Patch—around 40,000 metric tons—within five years.”

ROBOTICS
Autonomous Boats Will Be on the Market Sooner Than Self-Driving Cars
Tracey Lindeman | Motherboard
“Some unmanned watercraft…may be at sea commercially before 2020. That’s partly because automating all ships could generate a ridiculous amount of revenue. According to the United Nations, 90 percent of the world’s trade is carried by sea and 10.3 billion tons of products were shipped in 2016.”

DIGITAL CULTURE
Style Is an Algorithm
Kyle Chayka | Racked
“Confronting the Echo Look’s opaque statements on my fashion sense, I realize that all of these algorithmic experiences are matters of taste: the question of what we like and why we like it, and what it means that taste is increasingly dictated by black-box robots like the camera on my shelf.”

COMPUTING
How Apple Will Use AR to Reinvent the Human-Computer Interface
Tim Bajarin | Fast Company
“It’s in Apple’s DNA to continually deliver the ‘next’ major advancement to the personal computing experience. Its innovation in man-machine interfaces started with the Mac and then extended to the iPod, the iPhone, the iPad, and most recently, the Apple Watch. Now, get ready for the next chapter, as Apple tackles augmented reality, in a way that could fundamentally transform the human-computer interface.”

SCIENCE
Advanced Microscope Shows Cells at Work in Incredible Detail
Steve Dent | Engadget
“For the first time, scientists have peered into living cells and created videos showing how they function with unprecedented 3D detail. Using a special microscope and new lighting techniques, a team from Harvard and the Howard Hughes Medical Institute captured zebrafish immune cell interactions with unheard-of 3D detail and resolution.”

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Posted in Human Robots

#432539 10 Amazing Things You Can Learn From ...

Hardly a day goes by without a research study or article published talking sh*t—or more precisely, talking about the gut microbiome. When it comes to cutting-edge innovations in medicine, all signs point to the microbiome. Maybe we should have listened to Hippocrates: “All disease begins in the gut.”

Your microbiome is mostly located in your gut and contains trillions of little guys and gals called microbes. If you want to optimize your health, biohack your body, make progress against chronic disease, or know which foods are right for you—almost all of this information can be found in your microbiome.

My company, Viome, offers technology to measure your microscopic organisms and their behavior at a molecular level. Think of it as the Instagram of your inner world. A snapshot of what’s happening inside your body. New research about the microbiome is changing our understanding of who we are as humans and how the human body functions.

It turns out the microbiome may be mission control for your body and mind. Your healthy microbiome is part best friend, part power converter, part engine, and part pharmacist. At Viome, we’re working to analyze these microbial functions and recommend a list of personalized food and supplements to keep these internal complex machines in a finely tuned balance.

We now have more information than ever before about what your microbiome is doing, and it’s going to help you and the rest of the world do a whole lot better. The new insights emerging from microbiome research are changing our perception of what keeps us healthy and what makes us sick. This new understanding of the microbiome activities may put an end to conflicting food advice and make fad diets a thing of the past.

What are these new insights showing us? The information is nothing short of mind-blowing. The value of your poop just got an upgrade.

Here are some of the amazing things we’ve learned from our work at Viome.

1. Was Popeye wrong? Why “health food” isn’t necessarily healthy.
Each week there is a new fad diet released, discussed, and followed. The newest “research” shows that this is now the superfood to eat for everyone. But, too often, the fad diet is just a regurgitation of what worked for one person and shouldn’t be followed by everyone else.

For example, we’ve been told to eat our greens and that greens and nuts are “anti-inflammatory,” but this is actually not always true. Spinach, bran, rhubarb, beets, nuts, and nut butters all contain oxalate. We now know that oxalate-containing food can be harmful, unless you have the microbes present that can metabolize it into a non-harmful substance.

30% of Viome customers do not have the microbes to metabolize oxalates properly. In other words, “healthy foods” like spinach are actually not healthy for these people.

Looks like not everyone should follow Popeye’s food plan.

2. Aren’t foods containing “antioxidants” always good for everyone?
Just like oxalates, polyphenols in foods are usually considered very healthy, but unless you have microbes that utilize specific polyphenols, you may not get full benefit from them. One example is a substance found in these foods called ellagic acid. We can detect if your microbiome is metabolizing ellagic acid and converting it into urolithin A. It is only the urolithin A that has anti-inflammatory and antioxidant effects. Without the microbes to do this conversion you will not benefit from the ellagic acid in foods.

Examples: Walnuts, raspberries, pomegranate, blackberries, pecans, and cranberries all contain ellagic acid.

We have analyzed tens of thousands of people, and only about 50% of the people actually benefit from eating more foods containing ellagic acid.

3. You’re probably eating too much protein (and it may be causing inflammation).
When you think high-protein diet, you think paleo, keto, and high-performance diets.

Protein is considered good for you. It helps build muscle and provide energy—but if you eat too much, it can cause inflammation and decrease longevity.

We can analyze the activity of your microbiome to determine if you are eating too much protein that feeds protein-fermenting bacteria like Alistipes putredinis and Tannerella forsythia, and if these organisms are producing harmful substances such as ammonia, hydrogen sulfide, p-cresol, or putrescine. These substances can damage your gut lining and lead to things like leaky gut.

4. Something’s fishy. Are “healthy foods” causing heart disease?
Choline in certain foods can get converted by bacteria into a substance called trimethylamine (TMA) that is associated with heart disease when it gets absorbed into your body and converted to TMAO. However, TMA conversion doesn’t happen in individuals without these types of bacteria in their microbiome.

We can see the TMA production pathways and many of the gammaproteobacteria that do this conversion.

What foods contain choline? Liver, salmon, chickpeas, split peas, eggs, navy beans, peanuts, and many others.

Before you decide to go full-on pescatarian or paleo, you may want to check if your microbiome is producing TMA with that salmon or steak.

5. Hold up, Iron Man. We can see inflammation from too much iron.
Minerals like iron in your food can, in certain inflammatory microbial environments, promote growth of pathogens like Esherichia, Shigella, and Salmonella.

Maybe it wasn’t just that raw chicken that gave you food poisoning, but your toxic microbiome that made you sick.

On the other hand, when you don’t have enough iron, you could become anemic leading to weakness and shortness of breath.

So, just like Iron Man, it’s about finding your balance so that you can fly.

6. Are you anxious or stressed? Your poop will tell you.
Our gut and brain are connected via the vagus nerve. A large majority of neurotransmitters are either produced or consumed by our microbiome. In fact, some 90% of all serotonin (a feel-good neurotransmitter) is produced by your gut microbiome and not by your brain.

When you have a toxic microbiome that’s producing a large amount of toxins like hydrogen sulfide, the lining of your gut starts to deteriorate into what’s known as leaky gut. Think of leaky gut as your gut not having healthy borders or boundaries. And when this happens, all kinds of disease can emerge. When the barrier of the gut breaks down, it starts a chain reaction causing low-grade chronic inflammation—which has been identified as a potential source of depression and higher levels of anxiety, in addition to many other chronic diseases.

We’re not saying you shouldn’t meditate, but if you want to get the most out of your meditation and really reduce your stress levels, make sure you are eating the right food that promotes a healthy microbiome.

7. Your microbiome is better than Red Bull.
If you want more energy, get your microbiome back into balance.

No you don’t need three pots of coffee to keep you going, you just need a balanced microbiome.

Your microbiome is responsible for calorie extraction, or creating energy, through pathways such as the Tricarboxylic acid cycle. Our bodies depend on the energy that our microbiome produces.

How much energy we get from our food is dependent on how efficient our microbiome is at converting the food into energy. High-performing microbiomes are excellent at converting food into energy. This is great when you are an athlete and need the extra energy, but if you don’t use up the energy it may be the source of some of those unwanted pounds.

If the microbes can’t or won’t metabolize the glucose (sugar) that you eat, it will be stored as fat. If the microbes are extracting too many calories from your food or producing lipopolysaccharides (LPS) and causing metabolic endotoxemia leading to activation of toll-like receptors and insulin resistance you may end up storing what you eat as fat.

Think of your microbiome as Doc Brown’s car from the future—it can take pretty much anything and turn it into fuel if it’s strong and resilient enough.

8. We can see your joint pain in your poop.
Got joint pain? Your microbiome can tell you why.

Lipopolysaccharide (LPS) is a key pro-inflammatory molecule made by some of your microbes. If your microbes are making too much LPS, it can wreak havoc on your immune system by putting it into overdrive. When your immune system goes on the warpath there is often collateral damage to your joints and other body parts.

Perhaps balancing your microbiome is a better solution than reaching for the glucosamine. Think of your microbiome as the top general of your immune army. It puts your immune system through basic training and determines when it goes to war.

Ideally, your immune system wins the quick battle and gets some rest, but sometimes if your microbiome keeps it on constant high alert it becomes a long, drawn-out war resulting in chronic inflammation and chronic diseases.

Are you really “getting older” or is your microbiome just making you “feel” older because it keeps giving warnings to your immune system ultimately leading to chronic pain?

Before you throw in the towel on your favorite activities, check your microbiome. And, if you have anything with “itis” in it, it’s possible that when you balance your microbiome the inflammation from your “itis” will be reduced.

9. Your gut is doing the talking for your mouth.
When you have low stomach acid, your mouth bacteria makes it down to your GI tract.

Stomach acid is there to protect you from the bacteria in your mouth and the parasites and fungi that are in your food. If you don’t have enough of it, the bacteria in your mouth will invade your gut. This invasion is associated with and a risk factor for autoimmune disease and inflammation in the gut.

We are learning that low stomach acid is perhaps one of the major causes of chronic disease. This stomach acid is essential to kill mouth bacteria and help us digest our food.

What kinds of things cause low stomach acid? Stress and antacids like Nexium, Zantac, and Prilosec.

10. Carbs can be protein precursors.
Rejoice! Perhaps carbs aren’t as bad as we thought (as long as your microbiome is up to the task). We can see if some of the starches you eat can be made into amino acids by the microbiome.

Our microbiome makes 20% of our branched-chain amino acids (BCAAs) for us, and it will adapt to make these vital BCAAs for us in almost any way it can.

Essentially, your microbiome is hooking up carbons and hydrogens into different formulations of BCAAs, depending on what you feed it. The microbiome is excellent at adapting and pivoting based on the food you feed it and the environment that it’s in.

So, good news: Carbs are protein precursors, as long as you have the right microbiome.

Stop Talking Sh*t Now
Your microbiome is a world class entrepreneur that can take low-grade sources of food and turn them into valuable and useable energy.

You have a best friend and confidant within you that is working wonders to make sure you have energy and that all of your needs are met.

And, just like a best friend, if you take great care of your microbiome, it will take great care of you.

Given the research emerging daily about the microbiome and its importance on your quality of life, prioritizing the health of your microbiome is essential.

When you have a healthy microbiome, you’ll have a healthy life.

It’s now clear that some of the greatest insights for your health will come from your poop.

It’s time to stop talking sh*t and get your sh*t together. Your life may depend on it.

Viome can help you identify what your microbiome is actually doing. The combination of Viome’s metatranscriptomic technology and cutting-edge artificial intelligence is paving a brand new path forward for microbiome health.

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Posted in Human Robots

#432431 Why Slowing Down Can Actually Help Us ...

Leah Weiss believes that when we pay attention to how we do our work—our thoughts and feelings about what we do and why we do it—we can tap into a much deeper reservoir of courage, creativity, meaning, and resilience.

As a researcher, educator, and author, Weiss teaches a course called “Leading with Compassion and Mindfulness” at the Stanford Graduate School of Business, one of the most competitive MBA programs in the world, and runs programs at HopeLab.

Weiss is the author of the new book How We Work: Live Your Purpose, Reclaim your Sanity and Embrace the Daily Grind, endorsed by the Dalai Lama, among others. I caught up with Leah to learn more about how the practice of mindfulness can deepen our individual and collective purpose and passion.

Lisa Kay Solomon: We’re hearing a lot about mindfulness these days. What is mindfulness and why is it so important to bring into our work? Can you share some of the basic tenets of the practice?

Leah Weiss, PhD: Mindfulness is, in its most literal sense, “the attention to inattention.” It’s as simple as noticing when you’re not paying attention and then re-focusing. It is prioritizing what is happening right now over internal and external noise.

The ability to work well with difficult coworkers, handle constructive feedback and criticism, regulate emotions at work—all of these things can come from regular mindfulness practice.

Some additional benefits of mindfulness are a greater sense of compassion (both self-compassion and compassion for others) and a way to seek and find purpose in even mundane things (and especially at work). From the business standpoint, mindfulness at work leads to increased productivity and creativity, mostly because when we are focused on one task at a time (as opposed to multitasking), we produce better results.

We spend more time with our co-workers than we do with our families; if our work relationships are negative, we suffer both mentally and physically. Even worse, we take all of those negative feelings home with us at the end of the work day. The antidote to this prescription for unhappiness is to have clear, strong purpose (one third of people do not have purpose at work and this is a major problem in the modern workplace!). We can use mental training to grow as people and as employees.

LKS: What are some recommendations you would make to busy leaders who are working around the clock to change the world?

LW: I think the most important thing is to remember to tend to our relationship with ourselves while trying to change the world. If we’re beating up on ourselves all the time we’ll be depleted.

People passionate about improving the world can get into habits of believing self-care isn’t important. We demand a lot of ourselves. It’s okay to fail, to mess up, to make mistakes—what’s important is how we learn from those mistakes and what we tell ourselves about those instances. What is the “internal script” playing in your own head? Is it positive, supporting, and understanding? It should be. If it isn’t, you can work on it. And the changes you make won’t just improve your quality of life, they’ll make you more resilient to weather life’s inevitable setbacks.

A close second recommendation is to always consider where everyone in an organization fits and help everyone (including yourself) find purpose. When you know what your own purpose is and show others their purpose, you can motivate a team and help everyone on a team gain pride in and at work. To get at this, make sure to ask people on your team what really lights them up. What sucks their energy and depletes them? If we know our own answers to these questions and relate them to the people we work with, we can create more engaged organizations.

LKS: Can you envision a future where technology and mindfulness can work together?

LW: Technology and mindfulness are already starting to work together. Some artificial intelligence companies are considering things like mindfulness and compassion when building robots, and there are numerous apps that target spreading mindfulness meditations in a widely-accessible way.

LKS: Looking ahead at our future generations who seem more attached to their devices than ever, what advice do you have for them?

LW: It’s unrealistic to say “stop using your device so much,” so instead, my suggestion is to make time for doing things like scrolling social media and make the same amount of time for putting your phone down and watching a movie or talking to a friend. No matter what it is that you are doing, make sure you have meta-awareness or clarity about what you’re paying attention to. Be clear about where your attention is and recognize that you can be a steward of attention. Technology can support us in this or pull us away from this; it depends on how we use it.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Posted in Human Robots

#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.

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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Posted in Human Robots