Tag Archives: programs

#435231 Team programs a humanoid robot to ...

For a robot to be able to “learn” sign language, it is necessary to combine different areas of engineering such as artificial intelligence, neural networks and artificial vision, as well as underactuated robotic hands. “One of the main new developments of this research is that we united two major areas of Robotics: complex systems (such as robotic hands) and social interaction and communication,” explains Juan Víctores, one of the researchers from the Robotics Lab in the Department of Systems Engineering and Automation of the UC3M. Continue reading

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#435152 The Futuristic Tech Disrupting Real ...

In the wake of the housing market collapse of 2008, one entrepreneur decided to dive right into the failing real estate industry. But this time, he didn’t buy any real estate to begin with. Instead, Glenn Sanford decided to launch the first-ever cloud-based real estate brokerage, eXp Realty.

Contracting virtual platform VirBELA to build out the company’s mega-campus in VR, eXp Realty demonstrates the power of a dematerialized workspace, throwing out hefty overhead costs and fundamentally redefining what ‘real estate’ really means. Ten years later, eXp Realty has an army of 14,000 agents across all 50 US states, 3 Canadian provinces, and 400 MLS market areas… all without a single physical office.

But VR is just one of many exponential technologies converging to revolutionize real estate and construction. As floating cities and driverless cars spread out your living options, AI and VR are together cutting out the middleman.

Already, the global construction industry is projected to surpass $12.9 trillion in 2022, and the total value of the US housing market alone grew to $33.3 trillion last year. Both vital for our daily lives, these industries will continue to explode in value, posing countless possibilities for disruption.

In this blog, I’ll be discussing the following trends:

New prime real estate locations;
Disintermediation of the real estate broker and search;
Materials science and 3D printing in construction.

Let’s dive in!

Location Location Location
Until today, location has been the name of the game when it comes to hunting down the best real estate. But constraints on land often drive up costs while limiting options, and urbanization is only exacerbating the problem.

Beyond the world of virtual real estate, two primary mechanisms are driving the creation of new locations.

(1) Floating Cities

Offshore habitation hubs, floating cities have long been conceived as a solution to rising sea levels, skyrocketing urban populations, and threatened ecosystems. In success, they will soon unlock an abundance of prime real estate, whether for scenic living, commerce, education, or recreation.

One pioneering model is that of Oceanix City, designed by Danish architect Bjarke Ingels and a host of other domain experts. Intended to adapt organically over time, Oceanix would consist of a galaxy of mass-produced, hexagonal floating modules, built as satellite “cities” off coastal urban centers and sustained by renewable energies.

While individual 4.5-acre platforms would each sustain 300 people, these hexagonal modules are designed to link into 75-acre tessellations sustaining up to 10,000 residents. Each anchored to the ocean floor using biorock, Oceanix cities are slated to be closed-loop systems, as external resources are continuously supplied by automated drone networks.

Electric boats or flying cars might zoom you to work, city-embedded water capture technologies would provide your water, and while vertical and outdoor farming supply your family meal, share economies would dominate goods provision.

AERIAL: Located in calm, sheltered waters, near coastal megacities, OCEANIX City will be an adaptable, sustainable, scalable, and affordable solution for human life on the ocean. Image Credit: OCEANIX/BIG-Bjarke Ingels Group.
Joined by countless government officials whose islands risk submersion at the hands of sea level rise, the UN is now getting on board. And just this year, seasteading is exiting the realm of science fiction and testing practical waters.

As French Polynesia seeks out robust solutions to sea level rise, their government has now joined forces with the San Francisco-based Seasteading Institute. With a newly designated special economic zone and 100 acres of beachfront, this joint Floating Island Project could even see up to a dozen inhabitable structures by 2020. And what better to fund the $60 million project than the team’s upcoming ICO?

But aside from creating new locations, autonomous vehicles (AVs) and flying cars are turning previously low-demand land into the prime real estate of tomorrow.

(2) Autonomous Electric Vehicles and Flying Cars

Today, the value of a location is a function of its proximity to your workplace, your city’s central business district, the best schools, or your closest friends.

But what happens when driverless cars desensitize you to distance, or Hyperloop and flying cars decimate your commute time? Historically, every time new transit methods have hit the mainstream, tolerance for distance has opened up right alongside them, further catalyzing city spread.

And just as Hyperloop and the Boring Company aim to make your commute immaterial, autonomous vehicle (AV) ridesharing services will spread out cities in two ways: (1) by drastically reducing parking spaces needed (vertical parking decks = more prime real estate); and (2) by untethering you from the steering wheel. Want an extra two hours of sleep on the way to work? Schedule a sleeper AV and nap on your route to the office. Need a car-turned-mobile-office? No problem.

Meanwhile, aerial taxis (i.e. flying cars) will allow you to escape ground congestion entirely, delivering you from bedroom to boardroom at decimated time scales.

Already working with regulators, Uber Elevate has staked ambitious plans for its UberAIR airborne taxi project. By 2023, Uber anticipates rolling out flying drones in its two first pilot cities, Los Angeles and Dallas. Flying between rooftop skyports, drones would carry passengers at a height of 1,000 to 2,000 feet at speeds between 100 to 200 mph. And while costs per ride are anticipated to resemble those of an Uber Black based on mileage, prices are projected to soon drop to those of an UberX.

But the true economic feat boils down to this: if I were to commute 50 to 100 kilometers, I could get two or three times the house for the same price. (Not to mention the extra living space offered up by my now-unneeded garage.)

All of a sudden, virtual reality, broadband, AVs, or high-speed vehicles are going to change where we live and where we work. So rather than living in a crowded, dense urban core for access to jobs and entertainment, our future of personalized, autonomous, low-cost transport opens the luxury of rural areas to all without compromising the benefits of a short commute.

Once these drivers multiply your real estate options, how will you select your next home?

Disintermediation: Say Bye to Your Broker
In a future of continuous and personalized preference-tracking, why hire a human agent who knows less about your needs and desires than a personal AI?

Just as disintermediation is cutting out bankers and insurance agents, so too is it closing in on real estate brokers. Over the next decade, as AI becomes your agent, VR will serve as your medium.

To paint a more vivid picture of how this will look, over 98 percent of your home search will be conducted from the comfort of your couch through next-generation VR headgear.

Once you’ve verbalized your primary desires for home location, finishings, size, etc. to your personal AI, it will offer you top picks, tour-able 24/7, with optional assistance by a virtual guide and constantly updated data. As a seller, this means potential buyers from two miles, or two continents, away.

Throughout each immersive VR tour, advanced eye-tracking software and a permissioned machine learning algorithm follow your gaze, further learn your likes and dislikes, and intelligently recommend other homes or commercial residences to visit.

Curious as to what the living room might look like with a fresh coat of blue paint and a white carpet? No problem! VR programs will be able to modify rendered environments instantly, changing countless variables, from furniture materials to even the sun’s orientation. Keen to input your own furniture into a VR-rendered home? Advanced AIs could one day compile all your existing furniture, electronics, clothing, decorations, and even books, virtually organizing them across any accommodating new space.

As 3D scanning technologies make extraordinary headway, VR renditions will only grow cheaper and higher resolution. One company called Immersive Media (disclosure: I’m an investor and advisor) has a platform for 360-degree video capture and distribution, and is already exploring real estate 360-degree video.

Smaller firms like Studio 216, Vieweet, Arch Virtual, ArX Solutions, and Rubicon Media can similarly capture and render models of various properties for clients and investors to view and explore. In essence, VR real estate platforms will allow you to explore any home for sale, do the remodel, and determine if it truly is the house of your dreams.

Once you’re ready to make a bid, your AI will even help estimate a bid, process and submit your offer. Real estate companies like Zillow, Trulia, Move, Redfin, ZipRealty (acquired by Realogy in 2014) and many others have already invested millions in machine learning applications to make search, valuation, consulting, and property management easier, faster, and much more accurate.

But what happens if the home you desire most means starting from scratch with new construction?

New Methods and Materials for Construction
For thousands of years, we’ve been constrained by the construction materials of nature. We built bricks from naturally abundant clay and shale, used tree limbs as our rooftops and beams, and mastered incredible structures in ancient Rome with the use of cement.

But construction is now on the cusp of a materials science revolution. Today, I’d like to focus on three key materials:

Upcycled Materials

Imagine if you could turn the world’s greatest waste products into their most essential building blocks. Thanks to UCLA researchers at CO2NCRETE, we can already do this with carbon emissions.

Today, concrete produces about five percent of all greenhouse gas (GHG) emissions. But what if concrete could instead conserve greenhouse emissions? CO2NCRETE engineers capture carbon from smokestacks and combine it with lime to create a new type of cement. The lab’s 3D printers then shape the upcycled concrete to build entirely new structures. Once conquered at scale, upcycled concrete will turn a former polluter into a future conserver.

Or what if we wanted to print new residences from local soil at hand? Marking an extraordinary convergence between robotics and 3D printing, the Institute of Advanced Architecture of Catalonia (IAAC) is already working on a solution.

In a major feat for low-cost construction in remote zones, IAAC has found a way to convert almost any soil into a building material with three times the tensile strength of industrial clay. Offering myriad benefits, including natural insulation, low GHG emissions, fire protection, air circulation, and thermal mediation, IAAC’s new 3D printed native soil can build houses on-site for as little as $1,000.

Nanomaterials

Nano- and micro-materials are ushering in a new era of smart, super-strong, and self-charging buildings. While carbon nanotubes dramatically increase the strength-to-weight ratio of skyscrapers, revolutionizing their structural flexibility, nanomaterials don’t stop here.

Several research teams are pioneering silicon nanoparticles to capture everyday light flowing through our windows. Little solar cells at the edges of windows then harvest this energy for ready use. Researchers at the US National Renewable Energy Lab have developed similar smart windows. Turning into solar panels when bathed in sunlight, these thermochromic windows will power our buildings, changing color as they do.

Self-Healing Infrastructure

The American Society of Civil Engineers estimates that the US needs to spend roughly $4.5 trillion to fix nationwide roads, bridges, dams, and common infrastructure by 2025. But what if infrastructure could fix itself?

Enter self-healing concrete. Engineers at Delft University have developed bio-concrete that can repair its own cracks. As head researcher Henk Jonkers explains, “What makes this limestone-producing bacteria so special is that they are able to survive in concrete for more than 200 years and come into play when the concrete is damaged. […] If cracks appear as a result of pressure on the concrete, the concrete will heal these cracks itself.”

But bio-concrete is only the beginning of self-healing technologies. As futurist architecture firms start printing plastic and carbon-fiber houses like the stunner seen below (using Branch Technologies’ 3D printing technology), engineers have begun tackling self-healing plastic.

And in a bid to go smart, burgeoning construction projects have started embedding sensors for preemptive detection. Beyond materials and sensors, however, construction methods are fast colliding into robotics and 3D printing.

While some startups and research institutes have leveraged robot swarm construction (namely, Harvard’s robotic termite-like swarm of programmed constructors), others have taken to large-scale autonomous robots.

One such example involves Fastbrick Robotics. After multiple iterations, the company’s Hadrian X end-to-end bricklaying robot can now autonomously build a fully livable, 180-square meter home in under 3 days. Using a laser-guided robotic attachment, the all-in-one brick-loaded truck simply drives to a construction site and directs blocks through its robotic arm in accordance with a 3D model.

Layhead. Image Credit: Fastbrick Robotics.
Meeting verified building standards, Hadrian and similar solutions hold massive promise in the long term, deployable across post-conflict refugee sites and regions recovering from natural catastrophes.

Imagine the implications. Eliminating human safety concerns and unlocking any environment, autonomous builder robots could collaboratively build massive structures in space or deep underwater habitats.

Final Thoughts
Where, how, and what we live in form a vital pillar of our everyday lives. The concept of “home” is unlikely to disappear anytime soon. At the same time, real estate and construction are two of the biggest playgrounds for technological convergence, each on the verge of revolutionary disruption.

As underlying shifts in transportation, land reclamation, and the definition of “space” (real vs. virtual) take hold, the real estate market is about to explode in value, spreading out urban centers on unprecedented scales and unlocking vast new prime “property.”

Meanwhile, converging advancements in AI and VR are fundamentally disrupting the way we design, build, and explore new residences. Just as mirror worlds create immersive, virtual real estate economies, VR tours and AI agents are absorbing both sides of the coin to entirely obliterate the middleman.

And as materials science breakthroughs meet new modes of construction, the only limits to tomorrow’s structures are those of our own imagination.

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Image Credit: OCEANIX/BIG-Bjarke Ingels Group. Continue reading

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#434792 Extending Human Longevity With ...

Lizards can regrow entire limbs. Flatworms, starfish, and sea cucumbers regrow entire bodies. Sharks constantly replace lost teeth, often growing over 20,000 teeth throughout their lifetimes. How can we translate these near-superpowers to humans?

The answer: through the cutting-edge innovations of regenerative medicine.

While big data and artificial intelligence transform how we practice medicine and invent new treatments, regenerative medicine is about replenishing, replacing, and rejuvenating our physical bodies.

In Part 5 of this blog series on Longevity and Vitality, I detail three of the regenerative technologies working together to fully augment our vital human organs.

Replenish: Stem cells, the regenerative engine of the body
Replace: Organ regeneration and bioprinting
Rejuvenate: Young blood and parabiosis

Let’s dive in.

Replenish: Stem Cells – The Regenerative Engine of the Body
Stem cells are undifferentiated cells that can transform into specialized cells such as heart, neurons, liver, lung, skin and so on, and can also divide to produce more stem cells.

In a child or young adult, these stem cells are in large supply, acting as a built-in repair system. They are often summoned to the site of damage or inflammation to repair and restore normal function.

But as we age, our supply of stem cells begins to diminish as much as 100- to 10,000-fold in different tissues and organs. In addition, stem cells undergo genetic mutations, which reduce their quality and effectiveness at renovating and repairing your body.

Imagine your stem cells as a team of repairmen in your newly constructed mansion. When the mansion is new and the repairmen are young, they can fix everything perfectly. But as the repairmen age and reduce in number, your mansion eventually goes into disrepair and finally crumbles.

What if you could restore and rejuvenate your stem cell population?

One option to accomplish this restoration and rejuvenation is to extract and concentrate your own autologous adult stem cells from places like your adipose (or fat) tissue or bone marrow.

These stem cells, however, are fewer in number and have undergone mutations (depending on your age) from their original ‘software code.’ Many scientists and physicians now prefer an alternative source, obtaining stem cells from the placenta or umbilical cord, the leftovers of birth.

These stem cells, available in large supply and expressing the undamaged software of a newborn, can be injected into joints or administered intravenously to rejuvenate and revitalize.

Think of these stem cells as chemical factories generating vital growth factors that can help to reduce inflammation, fight autoimmune disease, increase muscle mass, repair joints, and even revitalize skin and grow hair.

Over the last decade, the number of publications per year on stem cell-related research has increased 40x, and the stem cell market is expected to increase to $297 billion by 2022.

Rising research and development initiatives to develop therapeutic options for chronic diseases and growing demand for regenerative treatment options are the most significant drivers of this budding industry.

Biologists led by Kohji Nishida at Osaka University in Japan have discovered a new way to nurture and grow the tissues that make up the human eyeball. The scientists are able to grow retinas, corneas, the eye’s lens, and more, using only a small sample of adult skin.

In a Stanford study, seven of 18 stroke victims who agreed to stem cell treatments showed remarkable motor function improvements. This treatment could work for other neurodegenerative conditions such as Alzheimer’s, Parkinson’s, and ALS.

Doctors from the USC Neurorestoration Center and Keck Medicine of USC injected stem cells into the damaged cervical spine of a recently paralyzed 21-year-old man. Three months later, he showed dramatic improvement in sensation and movement of both arms.

In 2019, doctors in the U.K. cured a patient with HIV for the second time ever thanks to the efficacy of stem cells. After giving the cancer patient (who also had HIV) an allogeneic haematopoietic (e.g. blood) stem cell treatment for his Hodgkin’s lymphoma, the patient went into long-term HIV remission—18 months and counting at the time of the study’s publication.

Replace: Organ Regeneration and 3D Printing
Every 10 minutes, someone is added to the US organ transplant waiting list, totaling over 113,000 people waiting for replacement organs as of January 2019.

Countless more people in need of ‘spare parts’ never make it onto the waiting list. And on average, 20 people die each day while waiting for a transplant.

As a result, 35 percent of all US deaths (~900,000 people) could be prevented or delayed with access to organ replacements.

The excessive demand for donated organs will only intensify as technologies like self-driving cars make the world safer, given that many organ donors result from auto and motorcycle accidents. Safer vehicles mean less accidents and donations.

Clearly, replacement and regenerative medicine represent a massive opportunity.

Organ Entrepreneurs
Enter United Therapeutics CEO, Dr. Martine Rothblatt. A one-time aerospace entrepreneur (she was the founder of Sirius Satellite Radio), Rothblatt changed careers in the 1990s after her daughter developed a rare lung disease.

Her moonshot today is to create an industry of replacement organs. With an initial focus on diseases of the lung, Rothblatt set out to create replacement lungs. To accomplish this goal, her company United Therapeutics has pursued a number of technologies in parallel.

3D Printing Lungs
In 2017, United teamed up with one of the world’s largest 3D printing companies, 3D Systems, to build a collagen bioprinter and is paying another company, 3Scan, to slice up lungs and create detailed maps of their interior.

This 3D Systems bioprinter now operates according to a method called stereolithography. A UV laser flickers through a shallow pool of collagen doped with photosensitive molecules. Wherever the laser lingers, the collagen cures and becomes solid.

Gradually, the object being printed is lowered and new layers are added. The printer can currently lay down collagen at a resolution of around 20 micrometers, but will need to achieve resolution of a micrometer in size to make the lung functional.

Once a collagen lung scaffold has been printed, the next step is to infuse it with human cells, a process called recellularization.

The goal here is to use stem cells that grow on scaffolding and differentiate, ultimately providing the proper functionality. Early evidence indicates this approach can work.

In 2018, Harvard University experimental surgeon Harald Ott reported that he pumped billions of human cells (from umbilical cords and diced lungs) into a pig lung stripped of its own cells. When Ott’s team reconnected it to a pig’s circulation, the resulting organ showed rudimentary function.

Humanizing Pig Lungs
Another of Rothblatt’s organ manufacturing strategies is called xenotransplantation, the idea of transplanting an animal’s organs into humans who need a replacement.

Given the fact that adult pig organs are similar in size and shape to those of humans, United Therapeutics has focused on genetically engineering pigs to allow humans to use their organs. “It’s actually not rocket science,” said Rothblatt in her 2015 TED talk. “It’s editing one gene after another.”

To accomplish this goal, United Therapeutics made a series of investments in companies such as Revivicor Inc. and Synthetic Genomics Inc., and signed large funding agreements with the University of Maryland, University of Alabama, and New York Presbyterian/Columbia University Medical Center to create xenotransplantation programs for new hearts, kidneys, and lungs, respectively. Rothblatt hopes to see human translation in three to four years.

In preparation for that day, United Therapeutics owns a 132-acre property in Research Triangle Park and built a 275,000-square-foot medical laboratory that will ultimately have the capability to annually produce up to 1,000 sets of healthy pig lungs—known as xenolungs—from genetically engineered pigs.

Lung Ex Vivo Perfusion Systems
Beyond 3D printing and genetically engineering pig lungs, Rothblatt has already begun implementing a third near-term approach to improve the supply of lungs across the US.

Only about 30 percent of potential donor lungs meet transplant criteria in the first place; of those, only about 85 percent of those are usable once they arrive at the surgery center. As a result, nearly 75 percent of possible lungs never make it to the recipient in need.

What if these lungs could be rejuvenated? This concept informs Dr. Rothblatt’s next approach.

In 2016, United Therapeutics invested $41.8 million in TransMedics Inc., an Andover, Massachusetts company that develops ex vivo perfusion systems for donor lungs, hearts, and kidneys.

The XVIVO Perfusion System takes marginal-quality lungs that initially failed to meet transplantation standard-of-care criteria and perfuses and ventilates them at normothermic conditions, providing an opportunity for surgeons to reassess transplant suitability.

Rejuvenate Young Blood and Parabiosis
In HBO’s parody of the Bay Area tech community, Silicon Valley, one of the episodes (Season 4, Episode 5) is named “The Blood Boy.”

In this installment, tech billionaire Gavin Belson (Matt Ross) is meeting with Richard Hendricks (Thomas Middleditch) and his team, speaking about the future of the decentralized internet. A young, muscled twenty-something disrupts the meeting when he rolls in a transfusion stand and silently hooks an intravenous connection between himself and Belson.

Belson then introduces the newcomer as his “transfusion associate” and begins to explain the science of parabiosis: “Regular transfusions of the blood of a younger physically fit donor can significantly retard the aging process.”

While the sitcom is fiction, that science has merit, and the scenario portrayed in the episode is already happening today.

On the first point, research at Stanford and Harvard has demonstrated that older animals, when transfused with the blood of young animals, experience regeneration across many tissues and organs.

The opposite is also true: young animals, when transfused with the blood of older animals, experience accelerated aging. But capitalizing on this virtual fountain of youth has been tricky.

Ambrosia
One company, a San Francisco-based startup called Ambrosia, recently commenced one of the trials on parabiosis. Their protocol is simple: Healthy participants aged 35 and older get a transfusion of blood plasma from donors under 25, and researchers monitor their blood over the next two years for molecular indicators of health and aging.

Ambrosia’s founder Jesse Karmazin became interested in launching a company around parabiosis after seeing impressive data from animals and studies conducted abroad in humans: In one trial after another, subjects experience a reversal of aging symptoms across every major organ system. “The effects seem to be almost permanent,” he said. “It’s almost like there’s a resetting of gene expression.”

Infusing your own cord blood stem cells as you age may have tremendous longevity benefits. Following an FDA press release in February 2019, Ambrosia halted its consumer-facing treatment after several months of operation.

Understandably, the FDA raised concerns about the practice of parabiosis because to date, there is a marked lack of clinical data to support the treatment’s effectiveness.

Elevian
On the other end of the reputability spectrum is a startup called Elevian, spun out of Harvard University. Elevian is approaching longevity with a careful, scientifically validated strategy. (Full Disclosure: I am both an advisor to and investor in Elevian.)

CEO Mark Allen, MD, is joined by a dozen MDs and Ph.Ds out of Harvard. Elevian’s scientific founders started the company after identifying specific circulating factors that may be responsible for the “young blood” effect.

One example: A naturally occurring molecule known as “growth differentiation factor 11,” or GDF11, when injected into aged mice, reproduces many of the regenerative effects of young blood, regenerating heart, brain, muscles, lungs, and kidneys.

More specifically, GDF11 supplementation reduces age-related cardiac hypertrophy, accelerates skeletal muscle repair, improves exercise capacity, improves brain function and cerebral blood flow, and improves metabolism.

Elevian is developing a number of therapeutics that regulate GDF11 and other circulating factors. The goal is to restore our body’s natural regenerative capacity, which Elevian believes can address some of the root causes of age-associated disease with the promise of reversing or preventing many aging-related diseases and extending the healthy lifespan.

Conclusion
In 1992, futurist Leland Kaiser coined the term “regenerative medicine”:

“A new branch of medicine will develop that attempts to change the course of chronic disease and in many instances will regenerate tired and failing organ systems.”

Since then, the powerful regenerative medicine industry has grown exponentially, and this rapid growth is anticipated to continue.

A dramatic extension of the human healthspan is just over the horizon. Soon, we’ll all have the regenerative superpowers previously relegated to a handful of animals and comic books.

What new opportunities open up when anybody, anywhere, and at anytime can regenerate, replenish, and replace entire organs and metabolic systems on command?

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Posted in Human Robots

#434772 Traditional Higher Education Is Losing ...

Should you go to graduate school? If so, why? If not, what are your alternatives? Millions of young adults across the globe—and their parents and mentors—find themselves asking these questions every year.

Earlier this month, I explored how exponential technologies are rising to meet the needs of the rapidly changing workforce.

In this blog, I’ll dive into a highly effective way to build the business acumen and skills needed to make the most significant impact in these exponential times.

To start, let’s dive into the value of graduate school versus apprenticeship—especially during this time of extraordinarily rapid growth, and the micro-diversification of careers.

The True Value of an MBA
All graduate schools are not created equal.

For complex technical trades like medicine, engineering, and law, formal graduate-level training provides a critical foundation for safe, ethical practice (until these trades are fully augmented by artificial intelligence and automation…).

For the purposes of today’s blog, let’s focus on the value of a Master in Business Administration (MBA) degree, compared to acquiring your business acumen through various forms of apprenticeship.

The Waning of Business Degrees
Ironically, business schools are facing a tough business problem. The rapid rate of technological change, a booming job market, and the digitization of education are chipping away at the traditional graduate-level business program.

The data speaks for itself.

The Decline of Graduate School Admissions
Enrollment in two-year, full-time MBA programs in the US fell by more than one-third from 2010 to 2016.

While in previous years, top business schools (e.g. Stanford, Harvard, and Wharton) were safe from the decrease in applications, this year, they also felt the waning interest in MBA programs.

Harvard Business School: 4.5 percent decrease in applications, the school’s biggest drop since 2005.
Wharton: 6.7 percent decrease in applications.
Stanford Graduate School: 4.6 percent decrease in applications.

Another signal of change began unfolding over the past week. You may have read news headlines about an emerging college admissions scam, which implicates highly selective US universities, sports coaches, parents, and students in a conspiracy to game the undergraduate admissions process.

Already, students are filing multibillion-dollar civil lawsuits arguing that the scheme has devalued their degrees or denied them a fair admissions opportunity.

MBA Graduates in the Workforce
To meet today’s business needs, startups and massive companies alike are increasingly hiring technologists, developers, and engineers in place of the MBA graduates they may have preferentially hired in the past.

While 85 percent of US employers expect to hire MBA graduates this year (a decrease from 91 percent in 2017), 52 percent of employers worldwide expect to hire graduates with a master’s in data analytics (an increase from 35 percent last year).

We’re also seeing the waning of MBA degree holders at the CEO level.

For decades, an MBA was the hallmark of upward mobility towards the C-suite of top companies.

But as exponential technologies permeate not only products but every part of the supply chain—from manufacturing and shipping to sales, marketing and customer service—that trend is changing by necessity.

Looking at the Harvard Business Review’s Top 100 CEOs in 2018 list, more CEOs on the list held engineering degrees than MBAs (34 held engineering degrees, while 32 held MBAs).

There’s much more to leading innovative companies than an advanced business degree.

How Are Schools Responding?
With disruption to the advanced business education system already here, some business schools are applying notes from their own innovation classes to brace for change.

Over the past half-decade, we’ve seen schools with smaller MBA programs shut their doors in favor of advanced degrees with more specialization. This directly responds to market demand for skills in data science, supply chain, and manufacturing.

Some degrees resemble the precise skills training of technical trades. Others are very much in line with the apprenticeship models we’ll explore next.

Regardless, this new specialization strategy is working and attracting more new students. Over the past decade (2006 to 2016), enrollment in specialized graduate business programs doubled.

Higher education is also seeing a preference shift toward for-profit trade schools, like coding boot camps. This shift is one of several forces pushing universities to adopt skill-specific advanced degrees.

But some schools are slow to adapt, raising the question: how and when will these legacy programs be disrupted? A survey of over 170 business school deans around the world showed that many programs are operating at a loss.

But if these schools are world-class business institutions, as advertised, why do they keep the doors open even while they lose money? The surveyed deans revealed an important insight: they keep the degree program open because of the program’s prestige.

Why Go to Business School?
Shorthand Credibility, Cognitive Biases, and Prestige
Regardless of what knowledge a person takes away from graduate school, attending one of the world’s most rigorous and elite programs gives grads external validation.

With over 55 percent of MBA applicants applying to just 6 percent of graduate business schools, we have a clear cognitive bias toward the perceived elite status of certain universities.

To the outside world, thanks to the power of cognitive biases, an advanced degree is credibility shorthand for your capabilities.

Simply passing through a top school’s filtration system means that you had some level of abilities and merits.

And startup success statistics tend to back up that perceived enhanced capability. Let’s take, for example, universities with the most startup unicorn founders (see the figure below).

When you consider the 320+ unicorn startups around the world today, these numbers become even more impressive. Stanford’s 18 unicorn companies account for over 5 percent of global unicorns, and Harvard is responsible for producing just under 5 percent.

Combined, just these two universities (out of over 5,000 in the US, and thousands more around the world) account for 1 in 10 of the billion-dollar private companies in the world.

By the numbers, the prestigious reputation of these elite business programs has a firm basis in current innovation success.

While prestige may be inherent to the degree earned by graduates from these business programs, the credibility boost from holding one of these degrees is not a guaranteed path to success in the business world.

For example, you might expect that the Harvard School of Business or Stanford Graduate School of Business would come out on top when tallying up the alma maters of Fortune 500 CEOs.

It turns out that the University of Wisconsin-Madison leads the business school pack with 14 CEOs to Harvard’s 12. Beyond prestige, the success these elite business programs see translates directly into cultivating unmatched networks and relationships.

Relationships
Graduate schools—particularly at the upper echelon—are excellent at attracting sharp students.

At an elite business school, if you meet just five to ten people with extraordinary skill sets, personalities, ideas, or networks, then you have returned your $200,000 education investment.

It’s no coincidence that some 40 percent of Silicon Valley venture capitalists are alumni of either Harvard or Stanford.

From future investors to advisors, friends, and potential business partners, relationships are critical to an entrepreneur’s success.

Apprenticeships
As we saw above, graduate business degree programs are melting away in the current wave of exponential change.

With an increasing $1.5 trillion in student debt, there must be a more impactful alternative to attending graduate school for those starting their careers.

When I think about the most important skills I use today as an entrepreneur, writer, and strategic thinker, they didn’t come from my decade of graduate school at Harvard or MIT… they came from my experiences building real technologies and companies, and working with mentors.

Apprenticeship comes in a variety of forms; here, I’ll cover three top-of-mind approaches:

Real-world business acumen via startup accelerators
A direct apprenticeship model
The 6 D’s of mentorship

Startup Accelerators and Business Practicum
Let’s contrast the shrinking interest in MBA programs with applications to a relatively new model of business education: startup accelerators.

Startup accelerators are short-term (typically three to six months), cohort-based programs focusing on providing startup founders with the resources (capital, mentorship, relationships, and education) needed to refine their entrepreneurial acumen.

While graduate business programs have been condensing, startup accelerators are alive, well, and expanding rapidly.

In the 10 years from 2005 (when Paul Graham founded Y Combinator) through 2015, the number of startup accelerators in the US increased by more than tenfold.

The increase in startup accelerator activity hints at a larger trend: our best and brightest business minds are opting to invest their time and efforts in obtaining hands-on experience, creating tangible value for themselves and others, rather than diving into the theory often taught in business school classrooms.

The “Strike Force” Model
The Strike Force is my elite team of young entrepreneurs who work directly with me across all of my companies, travel by my side, sit in on every meeting with me, and help build businesses that change the world.

Previous Strike Force members have gone on to launch successful companies, including Bold Capital Partners, my $250 million venture capital firm.

Strike Force is an apprenticeship for the next generation of exponential entrepreneurs.

To paraphrase my good friend Tony Robbins: If you want to short-circuit the video game, find someone who’s been there and done that and is now doing something you want to one day do.

Every year, over 500,000 apprentices in the US follow this precise template. These apprentices are learning a craft they wish to master, under the mentorship of experts (skilled metal workers, bricklayers, medical technicians, electricians, and more) who have already achieved the desired result.

What if we more readily applied this model to young adults with aspirations of creating massive value through the vehicles of entrepreneurship and innovation?

For the established entrepreneur: How can you bring young entrepreneurs into your organization to create more value for your company, while also passing on your ethos and lessons learned to the next generation?

For the young, driven millennial: How can you find your mentor and convince him or her to take you on as an apprentice? What value can you create for this person in exchange for their guidance and investment in your professional development?

The 6 D’s of Mentorship
In my last blog on education, I shared how mobile device and internet penetration will transform adult literacy and basic education. Mobile phones and connectivity already create extraordinary value for entrepreneurs and young professionals looking to take their business acumen and skill set to the next level.

For all of human history up until the last decade or so, if you wanted to learn from the best and brightest in business, leadership, or strategy, you either needed to search for a dated book that they wrote at the local library or bookstore, or you had to be lucky enough to meet that person for a live conversation.

Now you can access the mentorship of just about any thought leader on the planet, at any time, for free.

Thanks to the power of the internet, mentorship has digitized, demonetized, dematerialized, and democratized.

What do you want to learn about?

Investing? Leadership? Technology? Marketing? Project management?

You can access a near-infinite stream of cutting-edge tools, tactics, and lessons from thousands of top performers from nearly every field—instantaneously, and for free.

For example, every one of Warren Buffett’s letters to his Berkshire Hathaway investors over the past 40 years is available for free on a device that fits in your pocket.

The rise of audio—particularly podcasts and audiobooks—is another underestimated driving force away from traditional graduate business programs and toward apprenticeships.

Over 28 million podcast episodes are available for free. Once you identify the strong signals in the noise, you’re still left with thousands of hours of long-form podcast conversation from which to learn valuable lessons.

Whenever and wherever you want, you can learn from the world’s best. In the future, mentorship and apprenticeship will only become more personalized. Imagine accessing a high-fidelity, AI-powered avatar of Bill Gates, Richard Branson, or Arthur C. Clarke (one of my early mentors) to help guide you through your career.

Virtual mentorship and coaching are powerful education forces that are here to stay.

Bringing It All Together
The education system is rapidly changing. Traditional master’s programs for business are ebbing away in the tides of exponential technologies. Apprenticeship models are reemerging as an effective way to train tomorrow’s leaders.

In a future blog, I’ll revisit the concept of apprenticeships and other effective business school alternatives.

If you are a young, ambitious entrepreneur (or the parent of one), remember that you live in the most abundant time ever in human history to refine your craft.

Right now, you have access to world-class mentorship and cutting-edge best-practices—literally in the palm of your hand. What will you do with this extraordinary power?

Join Me
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#434701 3 Practical Solutions to Offset ...

In recent years, the media has sounded the alarm about mass job loss to automation and robotics—some studies predict that up to 50 percent of current jobs or tasks could be automated in coming decades. While this topic has received significant attention, much of the press focuses on potential problems without proposing realistic solutions or considering new opportunities.

The economic impacts of AI, robotics, and automation are complex topics that require a more comprehensive perspective to understand. Is universal basic income, for example, the answer? Many believe so, and there are a number of experiments in progress. But it’s only one strategy, and without a sustainable funding source, universal basic income may not be practical.

As automation continues to accelerate, we’ll need a multi-pronged approach to ease the transition. In short, we need to update broad socioeconomic strategies for a new century of rapid progress. How, then, do we plan practical solutions to support these new strategies?

Take history as a rough guide to the future. Looking back, technology revolutions have three themes in common.

First, past revolutions each produced profound benefits to productivity, increasing human welfare. Second, technological innovation and technology diffusion have accelerated over time, each iteration placing more strain on the human ability to adapt. And third, machines have gradually replaced more elements of human work, with human societies adapting by moving into new forms of work—from agriculture to manufacturing to service, for example.

Public and private solutions, therefore, need to be developed to address each of these three components of change. Let’s explore some practical solutions for each in turn.

Figure 1. Technology’s structural impacts in the 21st century. Refer to Appendix I for quantitative charts and technological examples corresponding to the numbers (1-22) in each slice.
Solution 1: Capture New Opportunities Through Aggressive Investment
The rapid emergence of new technology promises a bounty of opportunity for the twenty-first century’s economic winners. This technological arms race is shaping up to be a global affair, and the winners will be determined in part by who is able to build the future economy fastest and most effectively. Both the private and public sectors have a role to play in stimulating growth.

At the country level, several nations have created competitive strategies to promote research and development investments as automation technologies become more mature.

Germany and China have two of the most notable growth strategies. Germany’s Industrie 4.0 plan targets a 50 percent increase in manufacturing productivity via digital initiatives, while halving the resources required. China’s Made in China 2025 national strategy sets ambitious targets and provides subsidies for domestic innovation and production. It also includes building new concept cities, investing in robotics capabilities, and subsidizing high-tech acquisitions abroad to become the leader in certain high-tech industries. For China, specifically, tech innovation is driven partially by a fear that technology will disrupt social structures and government control.

Such opportunities are not limited to existing economic powers. Estonia’s progress after the breakup of the Soviet Union is a good case study in transitioning to a digital economy. The nation rapidly implemented capitalistic reforms and transformed itself into a technology-centric economy in preparation for a massive tech disruption. Internet access was declared a right in 2000, and the country’s classrooms were outfitted for a digital economy, with coding as a core educational requirement starting at kindergarten. Internet broadband speeds in Estonia are among the fastest in the world. Accordingly, the World Bank now ranks Estonia as a high-income country.

Solution 2: Address Increased Rate of Change With More Nimble Education Systems
Education and training are currently not set for the speed of change in the modern economy. Schools are still based on a one-time education model, with school providing the foundation for a single lifelong career. With content becoming obsolete faster and rapidly escalating costs, this system may be unsustainable in the future. To help workers more smoothly transition from one job into another, for example, we need to make education a more nimble, lifelong endeavor.

Primary and university education may still have a role in training foundational thinking and general education, but it will be necessary to curtail rising price of tuition and increase accessibility. Massive open online courses (MooCs) and open-enrollment platforms are early demonstrations of what the future of general education may look like: cheap, effective, and flexible.

Georgia Tech’s online Engineering Master’s program (a fraction of the cost of residential tuition) is an early example in making university education more broadly available. Similarly, nanodegrees or microcredentials provided by online education platforms such as Udacity and Coursera can be used for mid-career adjustments at low cost. AI itself may be deployed to supplement the learning process, with applications such as AI-enhanced tutorials or personalized content recommendations backed by machine learning. Recent developments in neuroscience research could optimize this experience by perfectly tailoring content and delivery to the learner’s brain to maximize retention.

Finally, companies looking for more customized skills may take a larger role in education, providing on-the-job training for specific capabilities. One potential model involves partnering with community colleges to create apprenticeship-style learning, where students work part-time in parallel with their education. Siemens has pioneered such a model in four states and is developing a playbook for other companies to do the same.

Solution 3: Enhance Social Safety Nets to Smooth Automation Impacts
If predicted job losses to automation come to fruition, modernizing existing social safety nets will increasingly become a priority. While the issue of safety nets can become quickly politicized, it is worth noting that each prior technological revolution has come with corresponding changes to the social contract (see below).

The evolving social contract (U.S. examples)
– 1842 | Right to strike
– 1924 | Abolish child labor
– 1935 | Right to unionize
– 1938 | 40-hour work week
– 1962, 1974 | Trade adjustment assistance
– 1964 | Pay discrimination prohibited
– 1970 | Health and safety laws
– 21st century | AI and automation adjustment assistance?

Figure 2. Labor laws have historically adjusted as technology and society progressed

Solutions like universal basic income (no-strings-attached monthly payout to all citizens) are appealing in concept, but somewhat difficult to implement as a first measure in countries such as the US or Japan that already have high debt. Additionally, universal basic income may create dis-incentives to stay in the labor force. A similar cautionary tale in program design was the Trade Adjustment Assistance (TAA), which was designed to protect industries and workers from import competition shocks from globalization, but is viewed as a missed opportunity due to insufficient coverage.

A near-term solution could come in the form of graduated wage insurance (compensation for those forced to take a lower-paying job), including health insurance subsidies to individuals directly impacted by automation, with incentives to return to the workforce quickly. Another topic to tackle is geographic mismatch between workers and jobs, which can be addressed by mobility assistance. Lastly, a training stipend can be issued to individuals as means to upskill.

Policymakers can intervene to reverse recent historical trends that have shifted incomes from labor to capital owners. The balance could be shifted back to labor by placing higher taxes on capital—an example is the recently proposed “robot tax” where the taxation would be on the work rather than the individual executing it. That is, if a self-driving car performs the task that formerly was done by a human, the rideshare company will still pay the tax as if a human was driving.

Other solutions may involve distribution of work. Some countries, such as France and Sweden, have experimented with redistributing working hours. The idea is to cap weekly hours, with the goal of having more people employed and work more evenly spread. So far these programs have had mixed results, with lower unemployment but high costs to taxpayers, but are potential models that can continue to be tested.

We cannot stop growth, nor should we. With the roles in response to this evolution shifting, so should the social contract between the stakeholders. Government will continue to play a critical role as a stabilizing “thumb” in the invisible hand of capitalism, regulating and cushioning against extreme volatility, particularly in labor markets.

However, we already see business leaders taking on some of the role traditionally played by government—thinking about measures to remedy risks of climate change or economic proposals to combat unemployment—in part because of greater agility in adapting to change. Cross-disciplinary collaboration and creative solutions from all parties will be critical in crafting the future economy.

Note: The full paper this article is based on is available here.

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