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#434673 The World’s Most Valuable AI ...

It recognizes our faces. It knows the videos we might like. And it can even, perhaps, recommend the best course of action to take to maximize our personal health.

Artificial intelligence and its subset of disciplines—such as machine learning, natural language processing, and computer vision—are seemingly becoming integrated into our daily lives whether we like it or not. What was once sci-fi is now ubiquitous research and development in company and university labs around the world.

Similarly, the startups working on many of these AI technologies have seen their proverbial stock rise. More than 30 of these companies are now valued at over a billion dollars, according to data research firm CB Insights, which itself employs algorithms to provide insights into the tech business world.

Private companies with a billion-dollar valuation were so uncommon not that long ago that they were dubbed unicorns. Now there are 325 of these once-rare creatures, with a combined valuation north of a trillion dollars, as CB Insights maintains a running count of this exclusive Unicorn Club.

The subset of AI startups accounts for about 10 percent of the total membership, growing rapidly in just 4 years from 0 to 32. Last year, an unprecedented 17 AI startups broke the billion-dollar barrier, with 2018 also a record year for venture capital into private US AI companies at $9.3 billion, CB Insights reported.

What exactly is all this money funding?

AI Keeps an Eye Out for You
Let’s start with the bad news first.

Facial recognition is probably one of the most ubiquitous applications of AI today. It’s actually a decades-old technology often credited to a man named Woodrow Bledsoe, who used an instrument called a RAND tablet that could semi-autonomously match faces from a database. That was in the 1960s.

Today, most of us are familiar with facial recognition as a way to unlock our smartphones. But the technology has gained notoriety as a surveillance tool of law enforcement, particularly in China.

It’s no secret that the facial recognition algorithms developed by several of the AI unicorns from China—SenseTime, CloudWalk, and Face++ (also known as Megvii)—are used to monitor the country’s 1.3 billion citizens. Police there are even equipped with AI-powered eyeglasses for such purposes.

A fourth billion-dollar Chinese startup, Yitu Technologies, also produces a platform for facial recognition in the security realm, and develops AI systems in healthcare on top of that. For example, its CARE.AITM Intelligent 4D Imaging System for Chest CT can reputedly identify in real time a variety of lesions for the possible early detection of cancer.

The AI Doctor Is In
As Peter Diamandis recently noted, AI is rapidly augmenting healthcare and longevity. He mentioned another AI unicorn from China in this regard—iCarbonX, which plans to use machines to develop personalized health plans for every individual.

A couple of AI unicorns on the hardware side of healthcare are OrCam Technologies and Butterfly. The former, an Israeli company, has developed a wearable device for the vision impaired called MyEye that attaches to one’s eyeglasses. The device can identify people and products, as well as read text, conveying the information through discrete audio.

Butterfly Network, out of Connecticut, has completely upended the healthcare market with a handheld ultrasound machine that works with a smartphone.

“Orcam and Butterfly are amazing examples of how machine learning can be integrated into solutions that provide a step-function improvement over state of the art in ultra-competitive markets,” noted Andrew Byrnes, investment director at Comet Labs, a venture capital firm focused on AI and robotics, in an email exchange with Singularity Hub.

AI in the Driver’s Seat
Comet Labs’ portfolio includes two AI unicorns, Megvii and Pony.ai.

The latter is one of three billion-dollar startups developing the AI technology behind self-driving cars, with the other two being Momenta.ai and Zoox.

Founded in 2016 near San Francisco (with another headquarters in China), Pony.ai debuted its latest self-driving system, called PonyAlpha, last year. The platform uses multiple sensors (LiDAR, cameras, and radar) to navigate its environment, but its “sensor fusion technology” makes things simple by choosing the most reliable sensor data for any given driving scenario.

Zoox is another San Francisco area startup founded a couple of years earlier. In late 2018, it got the green light from the state of California to be the first autonomous vehicle company to transport a passenger as part of a pilot program. Meanwhile, China-based Momenta.ai is testing level four autonomy for its self-driving system. Autonomous driving levels are ranked zero to five, with level five being equal to a human behind the wheel.

The hype around autonomous driving is currently in overdrive, and Byrnes thinks regulatory roadblocks will keep most self-driving cars in idle for the foreseeable future. The exception, he said, is China, which is adopting a “systems” approach to autonomy for passenger transport.

“If [autonomous mobility] solves bigger problems like traffic that can elicit government backing, then that has the potential to go big fast,” he said. “This is why we believe Pony.ai will be a winner in the space.”

AI in the Back Office
An AI-powered technology that perhaps only fans of the cult classic Office Space might appreciate has suddenly taken the business world by storm—robotic process automation (RPA).

RPA companies take the mundane back office work, such as filling out invoices or processing insurance claims, and turn it over to bots. The intelligent part comes into play because these bots can tackle unstructured data, such as text in an email or even video and pictures, in order to accomplish an increasing variety of tasks.

Both Automation Anywhere and UiPath are older companies, founded in 2003 and 2005, respectively. However, since just 2017, they have raised nearly a combined $1 billion in disclosed capital.

Cybersecurity Embraces AI
Cybersecurity is another industry where AI is driving investment into startups. Sporting imposing names like CrowdStrike, Darktrace, and Tanium, these cybersecurity companies employ different machine-learning techniques to protect computers and other IT assets beyond the latest software update or virus scan.

Darktrace, for instance, takes its inspiration from the human immune system. Its algorithms can purportedly “learn” the unique pattern of each device and user on a network, detecting emerging problems before things spin out of control.

All three companies are used by major corporations and governments around the world. CrowdStrike itself made headlines a few years ago when it linked the hacking of the Democratic National Committee email servers to the Russian government.

Looking Forward
I could go on, and introduce you to the world’s most valuable startup, a Chinese company called Bytedance that is valued at $75 billion for news curation and an app to create 15-second viral videos. But that’s probably not where VC firms like Comet Labs are generally putting their money.

Byrnes sees real value in startups that are taking “data-driven approaches to problems specific to unique industries.” Take the example of Chicago-based unicorn Uptake Technologies, which analyzes incoming data from machines, from wind turbines to tractors, to predict problems before they occur with the machinery. A not-yet unicorn called PingThings in the Comet Labs portfolio does similar predictive analytics for the energy utilities sector.

“One question we like asking is, ‘What does the state of the art look like in your industry in three to five years?’” Byrnes said. “We ask that a lot, then we go out and find the technology-focused teams building those things.”

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#434311 Understanding the Hidden Bias in ...

Facial recognition technology has progressed to point where it now interprets emotions in facial expressions. This type of analysis is increasingly used in daily life. For example, companies can use facial recognition software to help with hiring decisions. Other programs scan the faces in crowds to identify threats to public safety.

Unfortunately, this technology struggles to interpret the emotions of black faces. My new study, published last month, shows that emotional analysis technology assigns more negative emotions to black men’s faces than white men’s faces.

This isn’t the first time that facial recognition programs have been shown to be biased. Google labeled black faces as gorillas. Cameras identified Asian faces as blinking. Facial recognition programs struggled to correctly identify gender for people with darker skin.

My work contributes to a growing call to better understand the hidden bias in artificial intelligence software.

Measuring Bias
To examine the bias in the facial recognition systems that analyze people’s emotions, I used a data set of 400 NBA player photos from the 2016 to 2017 season, because players are similar in their clothing, athleticism, age and gender. Also, since these are professional portraits, the players look at the camera in the picture.

I ran the images through two well-known types of emotional recognition software. Both assigned black players more negative emotional scores on average, no matter how much they smiled.

For example, consider the official NBA pictures of Darren Collison and Gordon Hayward. Both players are smiling, and, according to the facial recognition and analysis program Face++, Darren Collison and Gordon Hayward have similar smile scores—48.7 and 48.1 out of 100, respectively.

Basketball players Darren Collision (left) and Gordon Hayward (right). basketball-reference.com

However, Face++ rates Hayward’s expression as 59.7 percent happy and 0.13 percent angry and Collison’s expression as 39.2 percent happy and 27 percent angry. Collison is viewed as nearly as angry as he is happy and far angrier than Hayward—despite the facial recognition program itself recognizing that both players are smiling.

In contrast, Microsoft’s Face API viewed both men as happy. Still, Collison is viewed as less happy than Hayward, with 98 and 93 percent happiness scores, respectively. Despite his smile, Collison is even scored with a small amount of contempt, whereas Hayward has none.

Across all the NBA pictures, the same pattern emerges. On average, Face++ rates black faces as twice as angry as white faces. Face API scores black faces as three times more contemptuous than white faces. After matching players based on their smiles, both facial analysis programs are still more likely to assign the negative emotions of anger or contempt to black faces.

Stereotyped by AI
My study shows that facial recognition programs exhibit two distinct types of bias.

First, black faces were consistently scored as angrier than white faces for every smile. Face++ showed this type of bias. Second, black faces were always scored as angrier if there was any ambiguity about their facial expression. Face API displayed this type of disparity. Even if black faces are partially smiling, my analysis showed that the systems assumed more negative emotions as compared to their white counterparts with similar expressions. The average emotional scores were much closer across races, but there were still noticeable differences for black and white faces.

This observation aligns with other research, which suggests that black professionals must amplify positive emotions to receive parity in their workplace performance evaluations. Studies show that people perceive black men as more physically threatening than white men, even when they are the same size.

Some researchers argue that facial recognition technology is more objective than humans. But my study suggests that facial recognition reflects the same biases that people have. Black men’s facial expressions are scored with emotions associated with threatening behaviors more often than white men, even when they are smiling. There is good reason to believe that the use of facial recognition could formalize preexisting stereotypes into algorithms, automatically embedding them into everyday life.

Until facial recognition assesses black and white faces similarly, black people may need to exaggerate their positive facial expressions—essentially smile more—to reduce ambiguity and potentially negative interpretations by the technology.

Although innovative, artificial intelligence can perpetrate and exacerbate existing power dynamics, leading to disparate impact across racial/ethnic groups. Some societal accountability is necessary to ensure fairness to all groups because facial recognition, like most artificial intelligence, is often invisible to the people most affected by its decisions.

Lauren Rhue, Assistant Professor of Information Systems and Analytics, Wake Forest University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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#434245 AI, robotics, automation: The fourth ...

For Chinese guests at Marriott International hotels, the check-in process will soon get easier. The hotel giant announced last summer that it's developing facial recognition systems that will allow guests to check in at a kiosk in less than a minute via a quick scan of their facial features. Continue reading

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#433872 Breaking Out of the Corporate Bubble ...

For big companies, success is a blessing and a curse. You don’t get big without doing something (or many things) very right. It might start with an invention or service the world didn’t know it needed. Your product takes off, and growth brings a whole new set of logistical challenges. Delivering consistent quality, hiring the right team, establishing a strong culture, tapping into new markets, satisfying shareholders. The list goes on.

Eventually, however, what made you successful also makes you resistant to change.

You’ve built a machine for one purpose, and it’s running smoothly, but what about retooling that machine to make something new? Not so easy. Leaders of big companies know there is no future for their organizations without change. And yet, they struggle to drive it.

In their new book, Leading Transformation: How to Take Charge of Your Company’s Future, Kyle Nel, Nathan Furr, and Thomas Ramsøy aim to deliver a roadmap for corporate transformation.

The book focuses on practical tools that have worked in big companies to break down behavioral and cognitive biases, envision radical futures, and run experiments. These include using science fiction and narrative to see ahead and adopting better measures of success for new endeavors.

A thread throughout is how to envision a new future and move into that future.

We’re limited by the bubbles in which we spend the most time—the corporate bubble, the startup bubble, the nonprofit bubble. The mutually beneficial convergence of complementary bubbles, then, can be a powerful tool for kickstarting transformation. The views and experiences of one partner can challenge the accepted wisdom of the other; resources can flow into newly co-created visions and projects; and connections can be made that wouldn’t otherwise exist.

The authors call such alliances uncommon partners. In the following excerpt from the book, Made In Space, a startup building 3D printers for space, helps Lowe’s explore an in-store 3D printing system, and Lowe’s helps Made In Space expand its vision and focus.

Uncommon Partners
In a dingy conference room at NASA, five prototypical nerds, smelling of Thai food, laid out the path to printing satellites in space and buildings on distant planets. At the end of their four-day marathon, they emerged with an artifact trail that began with early prototypes for the first 3D printer on the International Space Station and ended in the additive-manufacturing future—a future much bigger than 3D printing.

In the additive-manufacturing future, we will view everything as transient, or capable of being repurposed into new things. Rather than throwing away a soda bottle or a bent nail, we will simply reprocess these things into a new hinge for the fence we are building or a light switch plate for the tool shed. Indeed, we might not even go buy bricks for the tool shed, but instead might print them from impurities pulled from the air and the dirt beneath our feet. Such a process would both capture carbon in the air to make the bricks and avoid all the carbon involved in making and then transporting traditional bricks to your house.

If it all sounds a little too science fiction, think again. Lowe’s has already been honored as a Champion of Change by the US government for its prototype system to recycle plastic (e.g., plastic bags and bottles). The future may be closer than you have imagined. But to get there, Lowe’s didn’t work alone. It had to work with uncommon partners to create the future.

Uncommon partners are the types of organizations you might not normally work with, but which can greatly help you create radical new futures. Increasingly, as new technologies emerge and old industries converge, companies are finding that working independently to create all the necessary capabilities to enter new industries or create new technologies is costly, risky, and even counterproductive. Instead, organizations are finding that they need to collaborate with uncommon partners as an ecosystem to cocreate the future together. Nathan [Furr] and his colleague at INSEAD, Andrew Shipilov, call this arrangement an adaptive ecosystem strategy and described how companies such as Lowe’s, Samsung, Mastercard, and others are learning to work differently with partners and to work with different kinds of partners to more effectively discover new opportunities. For Lowe’s, an adaptive ecosystem strategy working with uncommon partners forms the foundation of capturing new opportunities and transforming the company. Despite its increased agility, Lowe’s can’t be (and shouldn’t become) an independent additive-manufacturing, robotics-using, exosuit-building, AR-promoting, fill-in-the-blank-what’s-next-ing company in addition to being a home improvement company. Instead, Lowe’s applies an adaptive ecosystem strategy to find the uncommon partners with which it can collaborate in new territory.

To apply the adaptive ecosystem strategy with uncommon partners, start by identifying the technical or operational components required for a particular focus area (e.g., exosuits) and then sort these components into three groups. First, there are the components that are emerging organically without any assistance from the orchestrator—the leader who tries to bring together the adaptive ecosystem. Second, there are the elements that might emerge, with encouragement and support. Third are the elements that won’t happen unless you do something about it. In an adaptive ecosystem strategy, you can create regular partnerships for the first two elements—those already emerging or that might emerge—if needed. But you have to create the elements in the final category (those that won’t emerge) either with an uncommon partner or by yourself.

For example, when Lowe’s wanted to explore the additive-manufacturing space, it began a search for an uncommon partner to provide the missing but needed capabilities. Unfortunately, initial discussions with major 3D printing companies proved disappointing. The major manufacturers kept trying to sell Lowe’s 3D printers. But the vision our group had created with science fiction was not for vendors to sell Lowe’s a printer, but for partners to help the company build a system—something that would allow customers to scan, manipulate, print, and eventually recycle additive-manufacturing objects. Every time we discussed 3D printing systems with these major companies, they responded that they could do it and then tried to sell printers. When Carin Watson, one of the leading lights at Singularity University, introduced us to Made In Space (a company being incubated in Singularity University’s futuristic accelerator), we discovered an uncommon partner that understood what it meant to cocreate a system.

Initially, Made In Space had been focused on simply getting 3D printing to work in space, where you can’t rely on gravity, you can’t send up a technician if the machine breaks, and you can’t release noxious fumes into cramped spacecraft quarters. But after the four days in the conference room going over the comic for additive manufacturing, Made In Space and Lowe’s emerged with a bigger vision. The company helped lay out an artifact trail that included not only the first printer on the International Space Station but also printing system services in Lowe’s stores.

Of course, the vision for an additive-manufacturing future didn’t end there. It also reshaped Made In Space’s trajectory, encouraging the startup, during those four days in a NASA conference room, to design a bolder future. Today, some of its bold projects include the Archinaut, a system that enables satellites to build themselves while in space, a direction that emerged partly from the science fiction narrative we created around additive manufacturing.

In summary, uncommon partners help you succeed by providing you with the capabilities you shouldn’t be building yourself, as well as with fresh insights. You also help uncommon partners succeed by creating new opportunities from which they can prosper.

Helping Uncommon Partners Prosper
Working most effectively with uncommon partners can require a shift from more familiar outsourcing or partnership relationships. When working with uncommon partners, you are trying to cocreate the future, which entails a great deal more uncertainty. Because you can’t specify outcomes precisely, agreements are typically less formal than in other types of relationships, and they operate under the provisions of shared vision and trust more than binding agreement clauses. Moreover, your goal isn’t to extract all the value from the relationship. Rather, you need to find a way to share the value.

Ideally, your uncommon partners should be transformed for the better by the work you do. For example, Lowe’s uncommon partner developing the robotics narrative was a small startup called Fellow Robots. Through their work with Lowe’s, Fellow Robots transformed from a small team focused on a narrow application of robotics (which was arguably the wrong problem) to a growing company developing a very different and valuable set of capabilities: putting cutting-edge technology on top of the old legacy systems embedded at the core of most companies. Working with Lowe’s allowed Fellow Robots to discover new opportunities, and today Fellow Robots works with retailers around the world, including BevMo! and Yamada. Ultimately, working with uncommon partners should be transformative for both of you, so focus more on creating a bigger pie than on how you are going to slice up a smaller pie.

The above excerpt appears in the new book Leading Transformation: How to Take Charge of Your Company’s Future by Kyle Nel, Nathan Furr, and Thomas Ramsøy, published by Harvard Business Review Press.

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#431839 The Hidden Human Workforce Powering ...

The tech industry touts its ability to automate tasks and remove slow and expensive humans from the equation. But in the background, a lot of the legwork training machine learning systems, solving problems software can’t, and cleaning up its mistakes is still done by people.
This was highlighted recently when Expensify, which promises to automatically scan photos of receipts to extract data for expense reports, was criticized for sending customers’ personally identifiable receipts to workers on Amazon’s Mechanical Turk (MTurk) crowdsourcing platform.
The company uses text analysis software to read the receipts, but if the automated system falls down then the images are passed to a human for review. While entrusting this job to random workers on MTurk was maybe not so wise—and the company quickly stopped after the furor—the incident brought to light that this kind of human safety net behind AI-powered services is actually very common.
As Wired notes, similar services like Ibotta and Receipt Hog that collect receipt information for marketing purposes also use crowdsourced workers. In a similar vein, while most users might assume their Facebook newsfeed is governed by faceless algorithms, the company has been ramping up the number of human moderators it employs to catch objectionable content that slips through the net, as has YouTube. Twitter also has thousands of human overseers.
Humans aren’t always witting contributors either. The old text-based reCAPTCHA problems Google used to use to distinguish humans from machines was actually simultaneously helping the company digitize books by getting humans to interpret hard-to-read text.
“Every product that uses AI also uses people,” Jeffrey Bigham, a crowdsourcing expert at Carnegie Mellon University, told Wired. “I wouldn’t even say it’s a backstop so much as a core part of the process.”
Some companies are not shy about their use of crowdsourced workers. Startup Eloquent Labs wants to insert them between customer service chatbots and human agents who step in when the machines fail. Many times the AI is pretty certain what particular work means, and an MTurk worker can step in and quickly classify them faster and cheaper than a service agent.
Fashion retailer Gilt provides “pre-emptive shipping,” which uses data analytics to predict what people will buy to get products to them faster. The company uses MTurk workers to provide subjective critiques of clothing that feed into their models.
MTurk isn’t the only player. Companies like Cloudfactory and Crowdflower provide crowdsourced human manpower tailored to particular niches, and some companies prefer to maintain their own communities of workers. Unlabel uses an army of 50,000 humans to check and edit the translations its artificial intelligence system produces for customers.
Most of the time these human workers aren’t just filling in the gaps, they’re also helping to train the machine learning component of these companies’ services by providing new examples of how to solve problems. Other times humans aren’t used “in-the-loop” with AI systems, but to prepare data sets they can learn from by labeling images, text, or audio.
It’s even possible to use crowdsourced workers to carry out tasks typically tackled by machine learning, such as large-scale image analysis and forecasting.
Zooniverse gets citizen scientists to classify images of distant galaxies or videos of animals to help academics analyze large data sets too complex for computers. Almanis creates forecasts on everything from economics to politics with impressive accuracy by giving those who sign up to the website incentives for backing the correct answer to a question. Researchers have used MTurkers to power a chatbot, and there’s even a toolkit for building algorithms to control this human intelligence called TurKit.
So what does this prominent role for humans in AI services mean? Firstly, it suggests that many tools people assume are powered by AI may in fact be relying on humans. This has obvious privacy implications, as the Expensify story highlighted, but should also raise concerns about whether customers are really getting what they pay for.
One example of this is IBM’s Watson for oncology, which is marketed as a data-driven AI system for providing cancer treatment recommendations. But an investigation by STAT highlighted that it’s actually largely driven by recommendations from a handful of (admittedly highly skilled) doctors at Memorial Sloan Kettering Cancer Center in New York.
Secondly, humans intervening in AI-run processes also suggests AI is still largely helpless without us, which is somewhat comforting to know among all the doomsday predictions of AI destroying jobs. At the same time, though, much of this crowdsourced work is monotonous, poorly paid, and isolating.
As machines trained by human workers get better at all kinds of tasks, this kind of piecemeal work filling in the increasingly small gaps in their capabilities may get more common. While tech companies often talk about AI augmenting human intelligence, for many it may actually end up being the other way around.
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