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#435070 5 Breakthroughs Coming Soon in Augmented ...

Posted on May 11, 2019 by Android

Convergence is accelerating disruption… everywhere! Exponential technologies are colliding into each other, reinventing products, services, and industries.

In this third installment of my Convergence Catalyzer series, I’ll be synthesizing key insights from my annual entrepreneurs’ mastermind event, Abundance 360. This five-blog series looks at 3D printing, artificial intelligence, VR/AR, energy and transportation, and blockchain.

Today, let’s dive into virtual and augmented reality.

Today’s most prominent tech giants are leaping onto the VR/AR scene, each driving forward new and upcoming product lines. Think: Microsoft’s HoloLens, Facebook’s Oculus, Amazon’s Sumerian, and Google’s Cardboard (Apple plans to release a headset by 2021).

And as plummeting prices meet exponential advancements in VR/AR hardware, this burgeoning disruptor is on its way out of the early adopters’ market and into the majority of consumers’ homes.

My good friend Philip Rosedale is my go-to expert on AR/VR and one of the foremost creators of today’s most cutting-edge virtual worlds. After creating the virtual civilization Second Life in 2013, now populated by almost 1 million active users, Philip went on to co-found High Fidelity, which explores the future of next-generation shared VR.

In just the next five years, he predicts five emerging trends will take hold, together disrupting major players and birthing new ones.

Let’s dive in…

Top 5 Predictions for VR/AR Breakthroughs (2019-2024)
“If you think you kind of understand what’s going on with that tech today, you probably don’t,” says Philip. “We’re still in the middle of landing the airplane of all these new devices.”

(1) Transition from PC-based to standalone mobile VR devices

Historically, VR devices have relied on PC connections, usually involving wires and clunky hardware that restrict a user’s field of motion. However, as VR enters the dematerialization stage, we are about to witness the rapid rise of a standalone and highly mobile VR experience economy.

Oculus Go, the leading standalone mobile VR device on the market, requires only a mobile app for setup and can be transported anywhere with WiFi.

With a consumer audience in mind, the 32GB headset is priced at $200 and shares an app ecosystem with Samsung’s Gear VR. While Google Daydream are also standalone VR devices, they require a docked mobile phone instead of the built-in screen of Oculus Go.

In the AR space, Lenovo’s standalone Microsoft’s HoloLens 2 leads the way in providing tetherless experiences.

Freeing headsets from the constraints of heavy hardware will make VR/AR increasingly interactive and transportable, a seamless add-on whenever, wherever. Within a matter of years, it may be as simple as carrying lightweight VR goggles wherever you go and throwing them on at a moment’s notice.

(2) Wide field-of-view AR displays

Microsoft’s HoloLens 2 leads the AR industry in headset comfort and display quality. The most significant issue with their prior version was the limited rectangular field of view (FOV).

By implementing laser technology to create a microelectromechanical systems (MEMS) display, however, HoloLens 2 can position waveguides in front of users’ eyes, directed by mirrors. Subsequently enlarging images can be accomplished by shifting the angles of these mirrors. Coupled with a 47 pixel per degree resolution, HoloLens 2 has now doubled its predecessor’s FOV. Microsoft anticipates the release of its headset by the end of this year at a $3,500 price point, first targeting businesses and eventually rolling it out to consumers.

Magic Leap provides a similar FOV but with lower resolution than the HoloLens 2. The Meta 2 boasts an even wider 90-degree FOV, but requires a cable attachment. The race to achieve the natural human 120-degree horizontal FOV continues.

“The technology to expand the field of view is going to make those devices much more usable by giving you bigger than a small box to look through,” Rosedale explains.

(3) Mapping of real world to enable persistent AR ‘mirror worlds’

‘Mirror worlds’ are alternative dimensions of reality that can blanket a physical space. While seated in your office, the floor beneath you could dissolve into a calm lake and each desk into a sailboat. In the classroom, mirror worlds would convert pencils into magic wands and tabletops into touch screens.

Pokémon Go provides an introductory glimpse into the mirror world concept and its massive potential to unite people in real action.

To create these mirror worlds, AR headsets must precisely understand the architecture of the surrounding world. Rosedale predicts the scanning accuracy of devices will improve rapidly over the next five years to make these alternate dimensions possible.

(4) 5G mobile devices reduce latency to imperceptible levels

Verizon has already launched 5G networks in Minneapolis and Chicago, compatible with the Moto Z3. Sprint plans to follow with its own 5G launch in May. Samsung, LG, Huawei, and ZTE have all announced upcoming 5G devices.

“5G is rolling out this year and it’s going to materially affect particularly my work, which is making you feel like you’re talking to somebody else directly face to face,” explains Rosedale. “5G is critical because currently the cell devices impose too much delay, so it doesn’t feel real to talk to somebody face to face on these devices.”

To operate seamlessly from anywhere on the planet, standalone VR/AR devices will require a strong 5G network. Enhancing real-time connectivity in VR/AR will transform the communication methods of tomorrow.

(5) Eye-tracking and facial expressions built in for full natural communication

Companies like Pupil Labs and Tobii provide eye tracking hardware add-ons and software to VR/AR headsets. This technology allows for foveated rendering, which renders a given scene in high resolution only in the fovea region, while the peripheral regions appear in lower resolution, conserving processing power.

As seen in the HoloLens 2, eye tracking can also be used to identify users and customize lens widths to provide a comfortable, personalized experience for each individual.

According to Rosedale, “The fundamental opportunity for both VR and AR is to improve human communication.” He points out that current VR/AR headsets miss many of the subtle yet important aspects of communication. Eye movements and microexpressions provide valuable insight into a user’s emotions and desires.

Coupled with emotion-detecting AI software, such as Affectiva, VR/AR devices might soon convey much more richly textured and expressive interactions between any two people, transcending physical boundaries and even language gaps.

Final Thoughts
As these promising trends begin to transform the market, VR/AR will undoubtedly revolutionize our lives… possibly to the point at which our virtual worlds become just as consequential and enriching as our physical world.

A boon for next-gen education, VR/AR will empower youth and adults alike with holistic learning that incorporates social, emotional, and creative components through visceral experiences, storytelling, and simulation. Traveling to another time, manipulating the insides of a cell, or even designing a new city will become daily phenomena of tomorrow’s classrooms.

In real estate, buyers will increasingly make decisions through virtual tours. Corporate offices might evolve into spaces that only exist in ‘mirror worlds’ or grow virtual duplicates for remote workers.

In healthcare, accuracy of diagnosis will skyrocket, while surgeons gain access to digital aids as they conduct life-saving procedures. Or take manufacturing, wherein training and assembly will become exponentially more efficient as visual cues guide complex tasks.

In the mere matter of a decade, VR and AR will unlock limitless applications for new and converging industries. And as virtual worlds converge with AI, 3D printing, computing advancements and beyond, today’s experience economies will explode in scale and scope. Prepare yourself for the exciting disruption ahead!

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Abundance-Digital Online Community: Stay ahead of technological advancements, and turn your passion into action. Abundance Digital is now part of Singularity University. Learn more.

Image Credit: Mariia Korneeva / Shutterstock.com Continue reading →

Posted in Human Robots

#435056 How Researchers Used AI to Better ...

Posted on May 9, 2019 by Android

A few years back, DeepMind’s Demis Hassabis famously prophesized that AI and neuroscience will positively feed into each other in a “virtuous circle.” If realized, this would fundamentally expand our insight into intelligence, both machine and human.

We’ve already seen some proofs of concept, at least in the brain-to-AI direction. For example, memory replay, a biological mechanism that fortifies our memories during sleep, also boosted AI learning when abstractly appropriated into deep learning models. Reinforcement learning, loosely based on our motivation circuits, is now behind some of AI’s most powerful tools.

Hassabis is about to be proven right again.

Last week, two studies independently tapped into the power of ANNs to solve a 70-year-old neuroscience mystery: how does our visual system perceive reality?

The first, published in Cell, used generative networks to evolve DeepDream-like images that hyper-activate complex visual neurons in monkeys. These machine artworks are pure nightmare fuel to the human eye; but together, they revealed a fundamental “visual hieroglyph” that may form a basic rule for how we piece together visual stimuli to process sight into perception.

In the second study, a team used a deep ANN model—one thought to mimic biological vision—to synthesize new patterns tailored to control certain networks of visual neurons in the monkey brain. When directly shown to monkeys, the team found that the machine-generated artworks could reliably activate predicted populations of neurons. Future improved ANN models could allow even better control, giving neuroscientists a powerful noninvasive tool to study the brain. The work was published in Science.

The individual results, though fascinating, aren’t necessarily the point. Rather, they illustrate how scientists are now striving to complete the virtuous circle: tapping AI to probe natural intelligence. Vision is only the beginning—the tools can potentially be expanded into other sensory domains. And the more we understand about natural brains, the better we can engineer artificial ones.

It’s a “great example of leveraging artificial intelligence to study organic intelligence,” commented Dr. Roman Sandler at Kernel.co on Twitter.

Why Vision?
ANNs and biological vision have quite the history.

In the late 1950s, the legendary neuroscientist duo David Hubel and Torsten Wiesel became some of the first to use mathematical equations to understand how neurons in the brain work together.

In a series of experiments—many using cats—the team carefully dissected the structure and function of the visual cortex. Using myriads of images, they revealed that vision is processed in a hierarchy: neurons in “earlier” brain regions, those closer to the eyes, tend to activate when they “see” simple patterns such as lines. As we move deeper into the brain, from the early V1 to a nub located slightly behind our ears, the IT cortex, neurons increasingly respond to more complex or abstract patterns, including faces, animals, and objects. The discovery led some scientists to call certain IT neurons “Jennifer Aniston cells,” which fire in response to pictures of the actress regardless of lighting, angle, or haircut. That is, IT neurons somehow extract visual information into the “gist” of things.

That’s not trivial. The complex neural connections that lead to increasing abstraction of what we see into what we think we see—what we perceive—is a central question in machine vision: how can we teach machines to transform numbers encoding stimuli into dots, lines, and angles that eventually form “perceptions” and “gists”? The answer could transform self-driving cars, facial recognition, and other computer vision applications as they learn to better generalize.

Hubel and Wiesel’s Nobel-prize-winning studies heavily influenced the birth of ANNs and deep learning. Much of earlier ANN “feed-forward” model structures are based on our visual system; even today, the idea of increasing layers of abstraction—for perception or reasoning—guide computer scientists to build AI that can better generalize. The early romance between vision and deep learning is perhaps the bond that kicked off our current AI revolution.

It only seems fair that AI would feed back into vision neuroscience.

Hieroglyphs and Controllers
In the Cell study, a team led by Dr. Margaret Livingstone at Harvard Medical School tapped into generative networks to unravel IT neurons’ complex visual alphabet.

Scientists have long known that neurons in earlier visual regions (V1) tend to fire in response to “grating patches” oriented in certain ways. Using a limited set of these patches like letters, V1 neurons can “express a visual sentence” and represent any image, said Dr. Arash Afraz at the National Institute of Health, who was not involved in the study.

But how IT neurons operate remained a mystery. Here, the team used a combination of genetic algorithms and deep generative networks to “evolve” computer art for every studied neuron. In seven monkeys, the team implanted electrodes into various parts of the visual IT region so that they could monitor the activity of a single neuron.

The team showed each monkey an initial set of 40 images. They then picked the top 10 images that stimulated the highest neural activity, and married them to 30 new images to “evolve” the next generation of images. After 250 generations, the technique, XDREAM, generated a slew of images that mashed up contorted face-like shapes with lines, gratings, and abstract shapes.

This image shows the evolution of an optimum image for stimulating a visual neuron in a monkey. Image Credit: Ponce, Xiao, and Schade et al. – Cell.
“The evolved images look quite counter-intuitive,” explained Afraz. Some clearly show detailed structures that resemble natural images, while others show complex structures that can’t be characterized by our puny human brains.

This figure shows natural images (right) and images evolved by neurons in the inferotemporal cortex of a monkey (left). Image Credit: Ponce, Xiao, and Schade et al. – Cell.
“What started to emerge during each experiment were pictures that were reminiscent of shapes in the world but were not actual objects in the world,” said study author Carlos Ponce. “We were seeing something that was more like the language cells use with each other.”

This image was evolved by a neuron in the inferotemporal cortex of a monkey using AI. Image Credit: Ponce, Xiao, and Schade et al. – Cell.
Although IT neurons don’t seem to use a simple letter alphabet, it does rely on a vast array of characters like hieroglyphs or Chinese characters, “each loaded with more information,” said Afraz.

The adaptive nature of XDREAM turns it into a powerful tool to probe the inner workings of our brains—particularly for revealing discrepancies between biology and models.

The Science study, led by Dr. James DiCarlo at MIT, takes a similar approach. Using ANNs to generate new patterns and images, the team was able to selectively predict and independently control neuron populations in a high-level visual region called V4.

“So far, what has been done with these models is predicting what the neural responses would be to other stimuli that they have not seen before,” said study author Dr. Pouya Bashivan. “The main difference here is that we are going one step further and using the models to drive the neurons into desired states.”

It suggests that our current ANN models for visual computation “implicitly capture a great deal of visual knowledge” which we can’t really describe, but which the brain uses to turn vision information into perception, the authors said. By testing AI-generated images on biological vision, however, the team concluded that today’s ANNs have a degree of understanding and generalization. The results could potentially help engineer even more accurate ANN models of biological vision, which in turn could feed back into machine vision.

“One thing is clear already: Improved ANN models … have led to control of a high-level neural population that was previously out of reach,” the authors said. “The results presented here have likely only scratched the surface of what is possible with such implemented characterizations of the brain’s neural networks.”

To Afraz, the power of AI here is to find cracks in human perception—both our computational models of sensory processes, as well as our evolved biological software itself. AI can be used “as a perfect adversarial tool to discover design cracks” of IT, said Afraz, such as finding computer art that “fools” a neuron into thinking the object is something else.

“As artificial intelligence researchers develop models that work as well as the brain does—or even better—we will still need to understand which networks are more likely to behave safely and further human goals,” said Ponce. “More efficient AI can be grounded by knowledge of how the brain works.”

Image Credit: Sangoiri / Shutterstock.com Continue reading →

Posted in Human Robots

#434854 New Lifelike Biomaterial Self-Reproduces ...

Posted on April 25, 2019 by Android

Life demands flux.

Every living organism is constantly changing: cells divide and die, proteins build and disintegrate, DNA breaks and heals. Life demands metabolism—the simultaneous builder and destroyer of living materials—to continuously upgrade our bodies. That’s how we heal and grow, how we propagate and survive.

What if we could endow cold, static, lifeless robots with the gift of metabolism?

In a study published this month in Science Robotics, an international team developed a DNA-based method that gives raw biomaterials an artificial metabolism. Dubbed DASH—DNA-based assembly and synthesis of hierarchical materials—the method automatically generates “slime”-like nanobots that dynamically move and navigate their environments.

Like humans, the artificial lifelike material used external energy to constantly change the nanobots’ bodies in pre-programmed ways, recycling their DNA-based parts as both waste and raw material for further use. Some “grew” into the shape of molecular double-helixes; others “wrote” the DNA letters inside micro-chips.

The artificial life forms were also rather “competitive”—in quotes, because these molecular machines are not conscious. Yet when pitted against each other, two DASH bots automatically raced forward, crawling in typical slime-mold fashion at a scale easily seen under the microscope—and with some iterations, with the naked human eye.

“Fundamentally, we may be able to change how we create and use the materials with lifelike characteristics. Typically materials and objects we create in general are basically static… one day, we may be able to ‘grow’ objects like houses and maintain their forms and functions autonomously,” said study author Dr. Shogo Hamada to Singularity Hub.

“This is a great study that combines the versatility of DNA nanotechnology with the dynamics of living materials,” said Dr. Job Boekhoven at the Technical University of Munich, who was not involved in the work.

Dissipative Assembly
The study builds on previous ideas on how to make molecular Lego blocks that essentially assemble—and destroy—themselves.

Although the inspiration came from biological metabolism, scientists have long hoped to cut their reliance on nature. At its core, metabolism is just a bunch of well-coordinated chemical reactions, programmed by eons of evolution. So why build artificial lifelike materials still tethered by evolution when we can use chemistry to engineer completely new forms of artificial life?

Back in 2015, for example, a team led by Boekhoven described a way to mimic how our cells build their internal “structural beams,” aptly called the cytoskeleton. The key here, unlike many processes in nature, isn’t balance or equilibrium; rather, the team engineered an extremely unstable system that automatically builds—and sustains—assemblies from molecular building blocks when given an external source of chemical energy.

Sound familiar? The team basically built molecular devices that “die” without “food.” Thanks to the laws of thermodynamics (hey ya, Newton!), that energy eventually dissipates, and the shapes automatically begin to break down, completing an artificial “circle of life.”

The new study took the system one step further: rather than just mimicking synthesis, they completed the circle by coupling the building process with dissipative assembly.

Here, the “assembling units themselves are also autonomously created from scratch,” said Hamada.

DNA Nanobots
The process of building DNA nanobots starts on a microfluidic chip.

Decades of research have allowed researchers to optimize DNA assembly outside the body. With the help of catalysts, which help “bind” individual molecules together, the team found that they could easily alter the shape of the self-assembling DNA bots—which formed fiber-like shapes—by changing the structure of the microfluidic chambers.

Computer simulations played a role here too: through both digital simulations and observations under the microscope, the team was able to identify a few critical rules that helped them predict how their molecules self-assemble while navigating a maze of blocking “pillars” and channels carved onto the microchips.

This “enabled a general design strategy for the DASH patterns,” they said.

In particular, the whirling motion of the fluids as they coursed through—and bumped into—ridges in the chips seems to help the DNA molecules “entangle into networks,” the team explained.

These insights helped the team further develop the “destroying” part of metabolism. Similar to linking molecules into DNA chains, their destruction also relies on enzymes.

Once the team pumped both “generation” and “degeneration” enzymes into the microchips, along with raw building blocks, the process was completely autonomous. The simultaneous processes were so lifelike that the team used a metric commonly used in robotics, finite-state automation, to measure the behavior of their DNA nanobots from growth to eventual decay.

“The result is a synthetic structure with features associated with life. These behaviors include locomotion, self-regeneration, and spatiotemporal regulation,” said Boekhoven.

Molecular Slime Molds
Just witnessing lifelike molecules grow in place like the dance move running man wasn’t enough.

In their next experiments, the team took inspiration from slugs to program undulating movements into their DNA bots. Here, “movement” is actually a sort of illusion: the machines “moved” because their front ends kept regenerating, whereas their back ends degenerated. In essence, the molecular slime was built from linking multiple individual “DNA robot-like” units together: each unit receives a delayed “decay” signal from the head of the slime in a way that allowed the whole artificial “organism” to crawl forward, against the steam of fluid flow.

Here’s the fun part: the team eventually engineered two molecular slime bots and pitted them against each other, Mario Kart-style. In these experiments, the faster moving bot alters the state of its competitor to promote “decay.” This slows down the competitor, allowing the dominant DNA nanoslug to win in a race.

Of course, the end goal isn’t molecular podracing. Rather, the DNA-based bots could easily amplify a given DNA or RNA sequence, making them efficient nano-diagnosticians for viral and other infections.

The lifelike material can basically generate patterns that doctors can directly ‘see’ with their eyes, which makes DNA or RNA molecules from bacteria and viruses extremely easy to detect, the team said.

In the short run, “the detection device with this self-generating material could be applied to many places and help people on site, from farmers to clinics, by providing an easy and accurate way to detect pathogens,” explained Hamaga.

A Futuristic Iron Man Nanosuit?
I’m letting my nerd flag fly here. In Avengers: Infinity Wars, the scientist-engineer-philanthropist-playboy Tony Stark unveiled a nanosuit that grew to his contours when needed and automatically healed when damaged.

DASH may one day realize that vision. For now, the team isn’t focused on using the technology for regenerating armor—rather, the dynamic materials could create new protein assemblies or chemical pathways inside living organisms, for example. The team also envisions adding simple sensing and computing mechanisms into the material, which can then easily be thought of as a robot.

Unlike synthetic biology, the goal isn’t to create artificial life. Rather, the team hopes to give lifelike properties to otherwise static materials.

“We are introducing a brand-new, lifelike material concept powered by its very own artificial metabolism. We are not making something that’s alive, but we are creating materials that are much more lifelike than have ever been seen before,” said lead author Dr. Dan Luo.

“Ultimately, our material may allow the construction of self-reproducing machines… artificial metabolism is an important step toward the creation of ‘artificial’ biological systems with dynamic, lifelike capabilities,” added Hamada. “It could open a new frontier in robotics.”

Image Credit: A timelapse image of DASH, by Jeff Tyson at Cornell University. Continue reading →

Posted in Human Robots

#434818 Watch These Robots Do Tasks You Thought ...

Posted on April 9, 2019 by Android

Robots have been masters of manufacturing at speed and precision for decades, but give them a seemingly simple task like stacking shelves, and they quickly get stuck. That’s changing, though, as engineers build systems that can take on the deceptively tricky tasks most humans can do with their eyes closed.

Boston Dynamics is famous for dramatic reveals of robots performing mind-blowing feats that also leave you scratching your head as to what the market is—think the bipedal Atlas doing backflips or Spot the galloping robot dog.

Last week, the company released a video of a robot called Handle that looks like an ostrich on wheels carrying out the seemingly mundane task of stacking boxes in a warehouse.

It might seem like a step backward, but this is exactly the kind of practical task robots have long struggled with. While the speed and precision of industrial robots has seen them take over many functions in modern factories, they’re generally limited to highly prescribed tasks carried out in meticulously-controlled environments.

That’s because despite their mechanical sophistication, most are still surprisingly dumb. They can carry out precision welding on a car or rapidly assemble electronics, but only by rigidly following a prescribed set of motions. Moving cardboard boxes around a warehouse might seem simple to a human, but it actually involves a variety of tasks machines still find pretty difficult—perceiving your surroundings, navigating, and interacting with objects in a dynamic environment.

But the release of this video suggests Boston Dynamics thinks these kinds of applications are close to prime time. Last week the company doubled down by announcing the acquisition of start-up Kinema Systems, which builds computer vision systems for robots working in warehouses.

It’s not the only company making strides in this area. On the same day the video went live, Google unveiled a robot arm called TossingBot that can pick random objects from a box and quickly toss them into another container beyond its reach, which could prove very useful for sorting items in a warehouse. The machine can train on new objects in just an hour or two, and can pick and toss up to 500 items an hour with better accuracy than any of the humans who tried the task.

And an apple-picking robot built by Abundant Robotics is currently on New Zealand farms navigating between rows of apple trees using LIDAR and computer vision to single out ripe apples before using a vacuum tube to suck them off the tree.

In most cases, advances in machine learning and computer vision brought about by the recent AI boom are the keys to these rapidly improving capabilities. Robots have historically had to be painstakingly programmed by humans to solve each new task, but deep learning is making it possible for them to quickly train themselves on a variety of perception, navigation, and dexterity tasks.

It’s not been simple, though, and the application of deep learning in robotics has lagged behind other areas. A major limitation is that the process typically requires huge amounts of training data. That’s fine when you’re dealing with image classification, but when that data needs to be generated by real-world robots it can make the approach impractical. Simulations offer the possibility to run this training faster than real time, but it’s proved difficult to translate policies learned in virtual environments into the real world.

Recent years have seen significant progress on these fronts, though, and the increasing integration of modern machine learning with robotics. In October, OpenAI imbued a robotic hand with human-level dexterity by training an algorithm in a simulation using reinforcement learning before transferring it to the real-world device. The key to ensuring the translation went smoothly was injecting random noise into the simulation to mimic some of the unpredictability of the real world.

And just a couple of weeks ago, MIT researchers demonstrated a new technique that let a robot arm learn to manipulate new objects with far less training data than is usually required. By getting the algorithm to focus on a few key points on the object necessary for picking it up, the system could learn to pick up a previously unseen object after seeing only a few dozen examples (rather than the hundreds or thousands typically required).

How quickly these innovations will trickle down to practical applications remains to be seen, but a number of startups as well as logistics behemoth Amazon are developing robots designed to flexibly pick and place the wide variety of items found in your average warehouse.

Whether the economics of using robots to replace humans at these kinds of menial tasks makes sense yet is still unclear. The collapse of collaborative robotics pioneer Rethink Robotics last year suggests there are still plenty of challenges.

But at the same time, the number of robotic warehouses is expected to leap from 4,000 today to 50,000 by 2025. It may not be long until robots are muscling in on tasks we’ve long assumed only humans could do.

Image Credit: Visual Generation / Shutterstock.com Continue reading →

Posted in Human Robots

#434772 Traditional Higher Education Is Losing ...

Posted on March 22, 2019 by Android

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
Abundance-Digital Online Community: I’ve created a Digital/Online community of bold, abundance-minded entrepreneurs called Abundance-Digital. Abundance-Digital is my ‘onramp’ for exponential entrepreneurs – those who want to get involved and play at a higher level. Click here to learn more.

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