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#431925 How the Science of Decision-Making Will ...

Neuroscientist Brie Linkenhoker believes that leaders must be better prepared for future strategic challenges by continually broadening their worldviews.
As the director of Worldview Stanford, Brie and her team produce multimedia content and immersive learning experiences to make academic research and insights accessible and useable by curious leaders. These future-focused topics are designed to help curious leaders understand the forces shaping the future.
Worldview Stanford has tackled such interdisciplinary topics as the power of minds, the science of decision-making, environmental risk and resilience, and trust and power in the age of big data.
We spoke with Brie about why understanding our biases is critical to making better decisions, particularly in a time of increasing change and complexity.

Lisa Kay Solomon: What is Worldview Stanford?
Brie Linkenhoker: Leaders and decision makers are trying to navigate this complex hairball of a planet that we live on and that requires keeping up on a lot of diverse topics across multiple fields of study and research. Universities like Stanford are where that new knowledge is being created, but it’s not getting out and used as readily as we would like, so that’s what we’re working on.
Worldview is designed to expand our individual and collective worldviews about important topics impacting our future. Your worldview is not a static thing, it’s constantly changing. We believe it should be informed by lots of different perspectives, different cultures, by knowledge from different domains and disciplines. This is more important now than ever.
At Worldview, we create learning experiences that are an amalgamation of all of those things.
LKS: One of your marquee programs is the Science of Decision Making. Can you tell us about that course and why it’s important?
BL: We tend to think about decision makers as being people in leadership positions, but every person who works in your organization, every member of your family, every member of the community is a decision maker. You have to decide what to buy, who to partner with, what government regulations to anticipate.
You have to think not just about your own decisions, but you have to anticipate how other people make decisions too. So, when we set out to create the Science of Decision Making, we wanted to help people improve their own decisions and be better able to predict, understand, anticipate the decisions of others.

“I think in another 10 or 15 years, we’re probably going to have really rich models of how we actually make decisions and what’s going on in the brain to support them.”

We realized that the only way to do that was to combine a lot of different perspectives, so we recruited experts from economics, psychology, neuroscience, philosophy, biology, and religion. We also brought in cutting-edge research on artificial intelligence and virtual reality and explored conversations about how technology is changing how we make decisions today and how it might support our decision-making in the future.
There’s no single set of answers. There are as many unanswered questions as there are answered questions.
LKS: One of the other things you explore in this course is the role of biases and heuristics. Can you explain the importance of both in decision-making?
BL: When I was a strategy consultant, executives would ask me, “How do I get rid of the biases in my decision-making or my organization’s decision-making?” And my response would be, “Good luck with that. It isn’t going to happen.”
As human beings we make, probably, thousands of decisions every single day. If we had to be actively thinking about each one of those decisions, we wouldn’t get out of our house in the morning, right?
We have to be able to do a lot of our decision-making essentially on autopilot to free up cognitive resources for more difficult decisions. So, we’ve evolved in the human brain a set of what we understand to be heuristics or rules of thumb.
And heuristics are great in, say, 95 percent of situations. It’s that five percent, or maybe even one percent, that they’re really not so great. That’s when we have to become aware of them because in some situations they can become biases.
For example, it doesn’t matter so much that we’re not aware of our rules of thumb when we’re driving to work or deciding what to make for dinner. But they can become absolutely critical in situations where a member of law enforcement is making an arrest or where you’re making a decision about a strategic investment or even when you’re deciding who to hire.
Let’s take hiring for a moment.
How many years is a hire going to impact your organization? You’re potentially looking at 5, 10, 15, 20 years. Having the right person in a role could change the future of your business entirely. That’s one of those areas where you really need to be aware of your own heuristics and biases—and we all have them. There’s no getting rid of them.
LKS: We seem to be at a time when the boundaries between different disciplines are starting to blend together. How has the advancement of neuroscience help us become better leaders? What do you see happening next?
BL: Heuristics and biases are very topical these days, thanks in part to Michael Lewis’s fantastic book, The Undoing Project, which is the story of the groundbreaking work that Nobel Prize winner Danny Kahneman and Amos Tversky did in the psychology and biases of human decision-making. Their work gave rise to the whole new field of behavioral economics.
In the last 10 to 15 years, neuroeconomics has really taken off. Neuroeconomics is the combination of behavioral economics with neuroscience. In behavioral economics, they use economic games and economic choices that have numbers associated with them and have real-world application.
For example, they ask, “How much would you spend to buy A versus B?” Or, “If I offered you X dollars for this thing that you have, would you take it or would you say no?” So, it’s trying to look at human decision-making in a format that’s easy to understand and quantify within a laboratory setting.
Now you bring neuroscience into that. You can have people doing those same kinds of tasks—making those kinds of semi-real-world decisions—in a brain scanner, and we can now start to understand what’s going on in the brain while people are making decisions. You can ask questions like, “Can I look at the signals in someone’s brain and predict what decision they’re going to make?” That can help us build a model of decision-making.
I think in another 10 or 15 years, we’re probably going to have really rich models of how we actually make decisions and what’s going on in the brain to support them. That’s very exciting for a neuroscientist.
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#431869 When Will We Finally Achieve True ...

The field of artificial intelligence goes back a long way, but many consider it was officially born when a group of scientists at Dartmouth College got together for a summer, back in 1956. Computers had, over the last few decades, come on in incredible leaps and bounds; they could now perform calculations far faster than humans. Optimism, given the incredible progress that had been made, was rational. Genius computer scientist Alan Turing had already mooted the idea of thinking machines just a few years before. The scientists had a fairly simple idea: intelligence is, after all, just a mathematical process. The human brain was a type of machine. Pick apart that process, and you can make a machine simulate it.
The problem didn’t seem too hard: the Dartmouth scientists wrote, “We think that a significant advance can be made in one or more of these problems if a carefully selected group of scientists work on it together for a summer.” This research proposal, by the way, contains one of the earliest uses of the term artificial intelligence. They had a number of ideas—maybe simulating the human brain’s pattern of neurons could work and teaching machines the abstract rules of human language would be important.
The scientists were optimistic, and their efforts were rewarded. Before too long, they had computer programs that seemed to understand human language and could solve algebra problems. People were confidently predicting there would be a human-level intelligent machine built within, oh, let’s say, the next twenty years.
It’s fitting that the industry of predicting when we’d have human-level intelligent AI was born at around the same time as the AI industry itself. In fact, it goes all the way back to Turing’s first paper on “thinking machines,” where he predicted that the Turing Test—machines that could convince humans they were human—would be passed in 50 years, by 2000. Nowadays, of course, people are still predicting it will happen within the next 20 years, perhaps most famously Ray Kurzweil. There are so many different surveys of experts and analyses that you almost wonder if AI researchers aren’t tempted to come up with an auto reply: “I’ve already predicted what your question will be, and no, I can’t really predict that.”
The issue with trying to predict the exact date of human-level AI is that we don’t know how far is left to go. This is unlike Moore’s Law. Moore’s Law, the doubling of processing power roughly every couple of years, makes a very concrete prediction about a very specific phenomenon. We understand roughly how to get there—improved engineering of silicon wafers—and we know we’re not at the fundamental limits of our current approach (at least, not until you’re trying to work on chips at the atomic scale). You cannot say the same about artificial intelligence.
Common Mistakes
Stuart Armstrong’s survey looked for trends in these predictions. Specifically, there were two major cognitive biases he was looking for. The first was the idea that AI experts predict true AI will arrive (and make them immortal) conveniently just before they’d be due to die. This is the “Rapture of the Nerds” criticism people have leveled at Kurzweil—his predictions are motivated by fear of death, desire for immortality, and are fundamentally irrational. The ability to create a superintelligence is taken as an article of faith. There are also criticisms by people working in the AI field who know first-hand the frustrations and limitations of today’s AI.
The second was the idea that people always pick a time span of 15 to 20 years. That’s enough to convince people they’re working on something that could prove revolutionary very soon (people are less impressed by efforts that will lead to tangible results centuries down the line), but not enough for you to be embarrassingly proved wrong. Of the two, Armstrong found more evidence for the second one—people were perfectly happy to predict AI after they died, although most didn’t, but there was a clear bias towards “15–20 years from now” in predictions throughout history.
Measuring Progress
Armstrong points out that, if you want to assess the validity of a specific prediction, there are plenty of parameters you can look at. For example, the idea that human-level intelligence will be developed by simulating the human brain does at least give you a clear pathway that allows you to assess progress. Every time we get a more detailed map of the brain, or successfully simulate another part of it, we can tell that we are progressing towards this eventual goal, which will presumably end in human-level AI. We may not be 20 years away on that path, but at least you can scientifically evaluate the progress.
Compare this to those that say AI, or else consciousness, will “emerge” if a network is sufficiently complex, given enough processing power. This might be how we imagine human intelligence and consciousness emerged during evolution—although evolution had billions of years, not just decades. The issue with this is that we have no empirical evidence: we have never seen consciousness manifest itself out of a complex network. Not only do we not know if this is possible, we cannot know how far away we are from reaching this, as we can’t even measure progress along the way.
There is an immense difficulty in understanding which tasks are hard, which has continued from the birth of AI to the present day. Just look at that original research proposal, where understanding human language, randomness and creativity, and self-improvement are all mentioned in the same breath. We have great natural language processing, but do our computers understand what they’re processing? We have AI that can randomly vary to be “creative,” but is it creative? Exponential self-improvement of the kind the singularity often relies on seems far away.
We also struggle to understand what’s meant by intelligence. For example, AI experts consistently underestimated the ability of AI to play Go. Many thought, in 2015, it would take until 2027. In the end, it took two years, not twelve. But does that mean AI is any closer to being able to write the Great American Novel, say? Does it mean it’s any closer to conceptually understanding the world around it? Does it mean that it’s any closer to human-level intelligence? That’s not necessarily clear.
Not Human, But Smarter Than Humans
But perhaps we’ve been looking at the wrong problem. For example, the Turing test has not yet been passed in the sense that AI cannot convince people it’s human in conversation; but of course the calculating ability, and perhaps soon the ability to perform other tasks like pattern recognition and driving cars, far exceed human levels. As “weak” AI algorithms make more decisions, and Internet of Things evangelists and tech optimists seek to find more ways to feed more data into more algorithms, the impact on society from this “artificial intelligence” can only grow.
It may be that we don’t yet have the mechanism for human-level intelligence, but it’s also true that we don’t know how far we can go with the current generation of algorithms. Those scary surveys that state automation will disrupt society and change it in fundamental ways don’t rely on nearly as many assumptions about some nebulous superintelligence.
Then there are those that point out we should be worried about AI for other reasons. Just because we can’t say for sure if human-level AI will arrive this century, or never, it doesn’t mean we shouldn’t prepare for the possibility that the optimistic predictors could be correct. We need to ensure that human values are programmed into these algorithms, so that they understand the value of human life and can act in “moral, responsible” ways.
Phil Torres, at the Project for Future Human Flourishing, expressed it well in an interview with me. He points out that if we suddenly decided, as a society, that we had to solve the problem of morality—determine what was right and wrong and feed it into a machine—in the next twenty years…would we even be able to do it?
So, we should take predictions with a grain of salt. Remember, it turned out the problems the AI pioneers foresaw were far more complicated than they anticipated. The same could be true today. At the same time, we cannot be unprepared. We should understand the risks and take our precautions. When those scientists met in Dartmouth in 1956, they had no idea of the vast, foggy terrain before them. Sixty years later, we still don’t know how much further there is to go, or how far we can go. But we’re going somewhere.
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#431671 The Doctor in the Machine: How AI Is ...

Artificial intelligence has received its fair share of hype recently. However, it’s hype that’s well-founded: IDC predicts worldwide spend on AI and cognitive computing will culminate to a whopping $46 billion (with a “b”) by 2020, and all the tech giants are jumping on board faster than you can say “ROI.” But what is AI, exactly?
According to Hilary Mason, AI today is being misused as a sort of catch-all term to basically describe “any system that uses data to do anything.” But it’s so much more than that. A truly artificially intelligent system is one that learns on its own, one that’s capable of crunching copious amounts of data in order to create associations and intelligently mimic actual human behavior.
It’s what powers the technology anticipating our next online purchase (Amazon), or the virtual assistant that deciphers our voice commands with incredible accuracy (Siri), or even the hipster-friendly recommendation engine that helps you discover new music before your friends do (Pandora). But AI is moving past these consumer-pleasing “nice-to-haves” and getting down to serious business: saving our butts.
Much in the same way robotics entered manufacturing, AI is making its mark in healthcare by automating mundane, repetitive tasks. This is especially true in the case of detecting cancer. By leveraging the power of deep learning, algorithms can now be trained to distinguish between sets of pixels in an image that represents cancer versus sets that don’t—not unlike how Facebook’s image recognition software tags pictures of our friends without us having to type in their names first. This software can then go ahead and scour millions of medical images (MRIs, CT scans, etc.) in a single day to detect anomalies on a scope that humans just aren’t capable of. That’s huge.
As if that wasn’t enough, these algorithms are constantly learning and evolving, getting better at making these associations with each new data set that gets fed to them. Radiology, dermatology, and pathology will experience a giant upheaval as tech giants and startups alike jump in to bring these deep learning algorithms to a hospital near you.
In fact, some already are: the FDA recently gave their seal of approval for an AI-powered medical imaging platform that helps doctors analyze and diagnose heart anomalies. This is the first time the FDA has approved a machine learning application for use in a clinical setting.
But how efficient is AI compared to humans, really? Well, aside from the obvious fact that software programs don’t get bored or distracted or have to check Facebook every twenty minutes, AI is exponentially better than us at analyzing data.
Take, for example, IBM’s Watson. Watson analyzed genomic data from both tumor cells and healthy cells and was ultimately able to glean actionable insights in a mere 10 minutes. Compare that to the 160 hours it would have taken a human to analyze that same data. Diagnoses aside, AI is also being leveraged in pharmaceuticals to aid in the very time-consuming grunt work of discovering new drugs, and all the big players are getting involved.
But AI is far from being just a behind-the-scenes player. Gartner recently predicted that by 2025, 50 percent of the population will rely on AI-powered “virtual personal health assistants” for their routine primary care needs. What this means is that consumer-facing voice and chat-operated “assistants” (think Siri or Cortana) would, in effect, serve as a central hub of interaction for all our connected health devices and the algorithms crunching all our real-time biometric data. These assistants would keep us apprised of our current state of well-being, acting as a sort of digital facilitator for our personal health objectives and an always-on health alert system that would notify us when we actually need to see a physician.
Slowly, and thanks to the tsunami of data and advancements in self-learning algorithms, healthcare is transitioning from a reactive model to more of a preventative model—and it’s completely upending the way care is delivered. Whether Elon Musk’s dystopian outlook on AI holds any weight or not is yet to be determined. But one thing’s certain: for the time being, artificial intelligence is saving our lives.
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#431599 8 Ways AI Will Transform Our Cities by ...

How will AI shape the average North American city by 2030? A panel of experts assembled as part of a century-long study into the impact of AI thinks its effects will be profound.
The One Hundred Year Study on Artificial Intelligence is the brainchild of Eric Horvitz, technical fellow and a managing director at Microsoft Research.
Every five years a panel of experts will assess the current state of AI and its future directions. The first panel, comprised of experts in AI, law, political science, policy, and economics, was launched last fall and decided to frame their report around the impact AI will have on the average American city. Here’s how they think it will affect eight key domains of city life in the next fifteen years.
1. Transportation
The speed of the transition to AI-guided transport may catch the public by surprise. Self-driving vehicles will be widely adopted by 2020, and it won’t just be cars — driverless delivery trucks, autonomous delivery drones, and personal robots will also be commonplace.
Uber-style “cars as a service” are likely to replace car ownership, which may displace public transport or see it transition towards similar on-demand approaches. Commutes will become a time to relax or work productively, encouraging people to live further from home, which could combine with reduced need for parking to drastically change the face of modern cities.
Mountains of data from increasing numbers of sensors will allow administrators to model individuals’ movements, preferences, and goals, which could have major impact on the design city infrastructure.
Humans won’t be out of the loop, though. Algorithms that allow machines to learn from human input and coordinate with them will be crucial to ensuring autonomous transport operates smoothly. Getting this right will be key as this will be the public’s first experience with physically embodied AI systems and will strongly influence public perception.
2. Home and Service Robots
Robots that do things like deliver packages and clean offices will become much more common in the next 15 years. Mobile chipmakers are already squeezing the power of last century’s supercomputers into systems-on-a-chip, drastically boosting robots’ on-board computing capacity.
Cloud-connected robots will be able to share data to accelerate learning. Low-cost 3D sensors like Microsoft’s Kinect will speed the development of perceptual technology, while advances in speech comprehension will enhance robots’ interactions with humans. Robot arms in research labs today are likely to evolve into consumer devices around 2025.
But the cost and complexity of reliable hardware and the difficulty of implementing perceptual algorithms in the real world mean general-purpose robots are still some way off. Robots are likely to remain constrained to narrow commercial applications for the foreseeable future.
3. Healthcare
AI’s impact on healthcare in the next 15 years will depend more on regulation than technology. The most transformative possibilities of AI in healthcare require access to data, but the FDA has failed to find solutions to the difficult problem of balancing privacy and access to data. Implementation of electronic health records has also been poor.
If these hurdles can be cleared, AI could automate the legwork of diagnostics by mining patient records and the scientific literature. This kind of digital assistant could allow doctors to focus on the human dimensions of care while using their intuition and experience to guide the process.
At the population level, data from patient records, wearables, mobile apps, and personal genome sequencing will make personalized medicine a reality. While fully automated radiology is unlikely, access to huge datasets of medical imaging will enable training of machine learning algorithms that can “triage” or check scans, reducing the workload of doctors.
Intelligent walkers, wheelchairs, and exoskeletons will help keep the elderly active while smart home technology will be able to support and monitor them to keep them independent. Robots may begin to enter hospitals carrying out simple tasks like delivering goods to the right room or doing sutures once the needle is correctly placed, but these tasks will only be semi-automated and will require collaboration between humans and robots.
4. Education
The line between the classroom and individual learning will be blurred by 2030. Massive open online courses (MOOCs) will interact with intelligent tutors and other AI technologies to allow personalized education at scale. Computer-based learning won’t replace the classroom, but online tools will help students learn at their own pace using techniques that work for them.
AI-enabled education systems will learn individuals’ preferences, but by aggregating this data they’ll also accelerate education research and the development of new tools. Online teaching will increasingly widen educational access, making learning lifelong, enabling people to retrain, and increasing access to top-quality education in developing countries.
Sophisticated virtual reality will allow students to immerse themselves in historical and fictional worlds or explore environments and scientific objects difficult to engage with in the real world. Digital reading devices will become much smarter too, linking to supplementary information and translating between languages.
5. Low-Resource Communities
In contrast to the dystopian visions of sci-fi, by 2030 AI will help improve life for the poorest members of society. Predictive analytics will let government agencies better allocate limited resources by helping them forecast environmental hazards or building code violations. AI planning could help distribute excess food from restaurants to food banks and shelters before it spoils.
Investment in these areas is under-funded though, so how quickly these capabilities will appear is uncertain. There are fears valueless machine learning could inadvertently discriminate by correlating things with race or gender, or surrogate factors like zip codes. But AI programs are easier to hold accountable than humans, so they’re more likely to help weed out discrimination.
6. Public Safety and Security
By 2030 cities are likely to rely heavily on AI technologies to detect and predict crime. Automatic processing of CCTV and drone footage will make it possible to rapidly spot anomalous behavior. This will not only allow law enforcement to react quickly but also forecast when and where crimes will be committed. Fears that bias and error could lead to people being unduly targeted are justified, but well-thought-out systems could actually counteract human bias and highlight police malpractice.
Techniques like speech and gait analysis could help interrogators and security guards detect suspicious behavior. Contrary to concerns about overly pervasive law enforcement, AI is likely to make policing more targeted and therefore less overbearing.
7. Employment and Workplace
The effects of AI will be felt most profoundly in the workplace. By 2030 AI will be encroaching on skilled professionals like lawyers, financial advisers, and radiologists. As it becomes capable of taking on more roles, organizations will be able to scale rapidly with relatively small workforces.
AI is more likely to replace tasks rather than jobs in the near term, and it will also create new jobs and markets, even if it’s hard to imagine what those will be right now. While it may reduce incomes and job prospects, increasing automation will also lower the cost of goods and services, effectively making everyone richer.
These structural shifts in the economy will require political rather than purely economic responses to ensure these riches are shared. In the short run, this may include resources being pumped into education and re-training, but longer term may require a far more comprehensive social safety net or radical approaches like a guaranteed basic income.
8. Entertainment
Entertainment in 2030 will be interactive, personalized, and immeasurably more engaging than today. Breakthroughs in sensors and hardware will see virtual reality, haptics and companion robots increasingly enter the home. Users will be able to interact with entertainment systems conversationally, and they will show emotion, empathy, and the ability to adapt to environmental cues like the time of day.
Social networks already allow personalized entertainment channels, but the reams of data being collected on usage patterns and preferences will allow media providers to personalize entertainment to unprecedented levels. There are concerns this could endow media conglomerates with unprecedented control over people’s online experiences and the ideas to which they are exposed.
But advances in AI will also make creating your own entertainment far easier and more engaging, whether by helping to compose music or choreograph dances using an avatar. Democratizing the production of high-quality entertainment makes it nearly impossible to predict how highly fluid human tastes for entertainment will develop.
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#431543 China Is an Entrepreneurial Hotbed That ...

Last week, Eric Schmidt, chairman of Alphabet, predicted that China will rapidly overtake the US in artificial intelligence…in as little as five years.
Last month, China announced plans to open a $10 billion quantum computing research center in 2020.
Bottom line, China is aggressively investing in exponential technologies, pursuing a bold goal of becoming the global AI superpower by 2030.
Based on what I’ve observed from China’s entrepreneurial scene, I believe they have a real shot of hitting that goal.
As I described in a previous tech blog, I recently traveled to China with a group of my Abundance 360 members, where I was hosted by my friend Kai-Fu Lee, the founder, chairman, and CEO of Sinovation Ventures.
On one of our first nights, Kai-Fu invited us to a special dinner at Da Dong Roast, which specializes in Peking duck, where we shared an 18-course meal.
The meal was amazing, and Kai-Fu’s dinner conversation provided us priceless insights on Chinese entrepreneurs.
Three topics opened my eyes. Here’s the wisdom I’d like to share with you.
1. The Entrepreneurial Culture in China
Chinese entrepreneurship has exploded onto the scene and changed significantly over the past 10 years.
In my opinion, one significant way that Chinese entrepreneurs vary from their American counterparts is in work ethic. The mantra I found in the startups I visited in Beijing and Shanghai was “9-9-6”—meaning the employees only needed to work from 9 am to 9 pm, 6 days a week.
Another concept Kai-Fu shared over dinner was the almost ‘dictatorial’ leadership of the founder/CEO. In China, it’s not uncommon for the Founder/CEO to own the majority of the company, or at least 30–40 percent. It’s also the case that what the CEO says is gospel. Period, no debate. There is no minority or dissenting opinion. When the CEO says “march,” the company asks, “which way?”
When Kai-Fu started Sinovation (his $1 billion+ venture fund), there were few active angel investors. Today, China has a rich ecosystem of angel, venture capital, and government-funded innovation parks.
As venture capital in China has evolved, so too has the mindset of the entrepreneur.
Kai -Fu recalled an early investment he made in which, after an unfortunate streak, the entrepreneur came to him, almost in tears, apologizing for losing his money and promising he would earn it back for him in another way. Kai-Fu comforted the entrepreneur and said there was no such need.
Only a few years later, the situation was vastly different. An entrepreneur who was going through a similar unfortunate streak came to Kai Fu and told him he only had $2 million left of his initial $12 million investment. He informed him he saw no value in returning the money and instead was going to take the last $2 million and use it as a final push to see if the company could succeed. He then promised Kai-Fu if he failed, he would remember what Kai-Fu did for him and, as such, possibly give Sinovation an opportunity to invest in him with his next company.
2. Chinese Companies Are No Longer Just ‘Copycats’
During dinner, Kai-Fu lamented that 10 years ago, it would be fair to call Chinese companies copycats of American companies. Five years ago, the claim would be controversial. Today, however, Kai-Fu is clear that claim is entirely false.
While smart Chinese startups will still look at what American companies are doing and build on trends, today it’s becoming a wise business practice for American tech giants to analyze Chinese companies. If you look at many new features of Facebook’s Messenger, it seems to very closely mirror TenCent’s WeChat.
Interestingly, tight government controls in China have actually spurred innovation. Take TV, for example, a highly regulated industry. Because of this regulation, most entertainment in China is consumed on the internet or by phone. Game shows, reality shows, and more will be entirely centered online.
Kai-Fu told us about one of his investments in a company that helps create Chinese singing sensations. They take girls in from a young age, school them, and regardless of talent, help build their presence and brand as singers. Once ready, these singers are pushed across all the available platforms, and superstars are born. The company recognizes its role in this superstar status, though, which is why it takes a 50 percent cut of all earnings.
This company is just one example of how Chinese entrepreneurs take advantage of China’s unique position, market, and culture.
3. China’s Artificial Intelligence Play
Kai-Fu wrapped up his talk with a brief introduction into the expansive AI industry in China. I previously discussed Face++, a Sinovation investment, which is creating radically efficient facial recognition technology. Face++ is light years ahead of anyone else globally at recognition in live videos. However, Face++ is just one of the incredible advances in AI coming out of China.
Baidu, one of China’s most valuable tech companies, started out as just a search company. However, they now run one of the country’s leading self-driving car programs.
Baidu’s goal is to create a software suite atop existing hardware that will control all self-driving aspects of a vehicle but also be able to provide additional services such as HD mapping and more.
Another interesting application came from another of Sinovation’s investments, Smart Finance Group (SFG). Given most payments are mobile (through WeChat or Alipay), only ~20 percent of the population in China have a credit history. This makes it very difficult for individuals in China to acquire a loan.
SFG’s mobile application takes in user data (as much as the user allows) and, based on the information provided, uses an AI agent to create a financial profile with the power to offer an instant loan. This loan can be deposited directly into their WeChat or Alipay account and is typically approved in minutes. Unlike American loan companies, they avoid default and long-term debt by only providing a one-month loan with 10% interest. Borrow $200, and you pay back $220 by the following month.
Artificial intelligence is exploding in China, and Kai-Fu believes it will touch every single industry.
The only constant is change, and the rate of change is constantly increasing.
In the next 10 years, we’ll see tremendous changes on the geopolitical front and the global entrepreneurial scene caused by technological empowerment.
China is an entrepreneurial hotbed that cannot be ignored. I’m monitoring it closely. Are you?
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