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SU Talk - Rotary - script
1. Introduction
Good afternoon everybody. This presentation is a summary of
a week-long firehose of information I consumed in December
at Singularity University in Silicon Valley. Plus my own
conclusions.
SU is about ‘exponential technology’ - which I’ll get to. It’s
also about robot battles, asking questions and meeting like-
minded people.
My primary goal is to convince you that there are a few
technologies accelerating towards us. In the next 5 to 20
years they will cause significant change and massive
disruption in every industry. If not the economy and world as
a whole.
My secondary goal is to give you a couple of nuggets to
digest. Things that you can use as a starting point for further
thought. Ask yourselves, with an open mind, how these
technologies might disrupt your own business.
So please suspend disbelief a little and listen with less
skepticism than unusual.
Once we’ve looked at the tech, we’ll turn to some
consequences, finishing with how this has affected me
personally.
2. Deceptive
We never got our flying cars, robots and space explorers.
But don't forget the other lesson of the boy who cried wolf.
The wolf did come eventually.
Exponential tech is not the stuff I love to see at CES: flexible
tv screens and drone delivery are cool but there are more
fundamental, subtle shifts underway.
I'm talking today about Artificial Intelligence (AI), Virtual
reality (VR), the block chain, medical tech, nanotech, the
internet of things (IoT), energy, space, 3D printing and
robotics.
But we will only have time to look at 3 today.
All of these technologies have been the subject of intense
research over many decades. But are all suddenly and
simultaneously exploding with innovation.
This is not a coincidence. As most of you know computing
power is subject to a phenomenon known as Moore’s law. To
paraphrase: processing power doubles every 18 months or
so.
So once any field of study relies on computing power, it
becomes subject to Moore’s law too. Thus accelerating at an
(almost) exponential rate.
And thus, exponential technology.
3. Artificial intelligence
The robot in this movie (Ex Machina) is “strong AI”. We don’t
have “strong AI” but we do have weak, or specific, AI.
What do I mean when I say these things are "AI"? Basically,
an algorithm that learns as it goes along. It improves for all
interactions, with each individual interaction.
A word of caution - don’t dismiss this stuff.
People treat AI and magic the same way – as soon as they
know the trick, they stop calling it magic. Or in this case, AI.
This phenomenon even has a name, it’s called the Tesler
Theorum, or AI effect:
“AI is whatever hasn’t been done yet.”
In the 1960’s computation was ‘obviously’ a thing that
computers could do. But chess… now that would be
impressive. Then after Deep Blue beat Kasparov in 1997
people said “oh well that was just brute force computing” not
real ‘intelligence’. And after IBM Watson won Jeopardy… more
of the same.
AI is not about whether we humans think that the computer
is 'intelligent' it is about whether the computer is learning.
What are some examples? Google Photos - look at this video,
edited by AI from a number of my videos. Google sent me
another 200 that I still haven’t watched. (And the technology
behind it, TensorFlow, is now open source.)
Gmail has an auto-reply function. Skype has auto-translate.
Deep art will turn your photos into art.
4. And Siri might be mildly disappointing but it remains
amazing. Think - you can now talk at your phone, ask
questions and get back intelligible, and sometimes intelligent,
answers.
So by definition, the version of Siri that is in your pocket
right now is the worst version that will ever exist...
That's a theme with Moore's Law and deserves
contemplation. Every technology we're talking about is
currently in its complete infancy.
We’ve become very good at AI recently, and the tools are
widely accessible. It cost a billion dollars to develop Deep
Blue, but that computing power and software are now trivial.
IBM Watson is doing amazing things in cancer research and
cost many billions but now any of us can access it for a small
fee online.
AI has already beaten the best human analysts for certain
kinds of cancer tests.
Remember that one of the main reasons the internet has
been so successful is because of how accessible it is.
Accessibility, because of the power of huge numbers (as in,
people) drives innovation.
That is why we should be excited, and intimidated, by what is
happening in Artificial Intelligence.
Think about this statement again. You might be quite fond of
the work your company is doing. But if some kid in a dorm
room can achieve 90% of the same results for 0.001% of the
price... What do you think is going to happen?
5. Virtual reality
This is a product called Oculus Rift, you may have heard that
Facebook bought it last year for $2 billion. I went for a roller
coaster ride on the Oculus in December and I can tell you
that it felt about 90% as real as an actual ride. The
commercial product is coming out in March. Think of it as the
virtual-reality equivalent of the first iPhone.
This is the Void - a real-world gaming environment matched
up with a Virtual world.
But VR is NOT just about gaming, just like the iPhone isn’t
just about Angry Birds.
- Imagine being able to travel anywhere in the world at will.
- Attending a virtual lecture by any expert.
- Walking around a house for sale.
- Browsing through a bookshop - and imagine what you’d
choose between Amazon, or a Virtual Reality, or
augmented reality bookstore.
- Imagine being able to learn practical skills like driving,
flying, or training on a new machine before you apply for
the job.
All virtually. All from your home with between 75% and 90%
fidelity when compared to physical presence.
[Black]
You may be tempted to dismiss the potential because your
product is so amazing, but remember: if the alternative is
cheaper, or even free, the test is not “perfection” the test is
“good enough”.
And they are at good enough already.
6. F35 helmet - this is already in use in the military. These
pilots do not see any direct light, they fly completely (in the
real world) using VR tech.
Within 2 to 5 years expect the VR experience to be full body,
and no longer good enough, but better than.
And ask yourself then how many of your customers might
choose this experience over the real thing…
And just for fun here's a quick demo of some Augmented
Reality. This is from a company called Magic Leap - they’ve
raised $2 billion and still haven’t shown the public what their
product looks like.
7. Other Tech
There are lots of amazing things happening that I’m not
going to speak about today but I want to signpost briefly.
There is a new Carbon XPrize for a product to capture carbon
from smokestacks and turn it into a profitable revenue
stream.
A company called Modern Meadow is growing synthetic meat
and leather.
Longevity is now a legitimate field of medical enquiry.
Advances in early cancer detection, biological nano tech;
data analysis and machine learning is being applied to
genetic and behavioral information in such a way that it is
already extending health and lifespan.
The colonization and commercial exploitation of space is just
about to begin. The first reusable rockets (reducing launch
costs by 80%) landed in November and December. Two
commercial trips to the moon are booked for 2017 as part of
the $30m Google Lunar X prize to get a robot on the moon.
We will see a woolly mammoth cloned within five years. We
will see driverless cars next year (as an experiment on a
limited scale). Over the next decade we will see the first
cancer vaccines, mainstream nano tech, 3D printing of food,
clothes and housing…
But it is not just about the individual applications. Although
they are exciting and I love reading about them.
Pay attention to the pattern – and ask what is going on. How
will it affect you? How can you join it or leverage it or
mitigate against it?
8. Blockchain
So the only other technology that I want to talk about in
some detail today is the block chain.
Block chain is the technology beneath Bitcoin. But Bitcoin is
only the most obvious and simple application of the
technology so try to forget about it.
That is because, next to virtual-reality and artificial
intelligence it is:
1) the technology that is going to make the biggest
difference in the next two years,
2) it’s also one of the hardest to get to grips with while
3) being most disruptive to industries here on this island.
And yet
4) it’s completely accessible to anybody who wants to use it
– so any of you could innovate with this tool right away.
These are new companies that are all using it right now.
Think of the block chain in the following way. Imagine the
world was actual a village of 10 people. Every time we do
anything, we tattoo it onto everybody. Forever. For
everything. To document our acknowledgement and
agreement that the transaction had taken place as described.
In that village, there is no need for any other tool to
document agreement. Because it’s hard to argue with all
those bloody tattoos. So whether the transaction was me
buying a house from you. Or electing Nico. Or a loan, or a
marriage or a divorce or birth, or a plane ticket... You can
record it all and everybody agrees.
9. That is what the block chain is. A tool for universal
agreement. A technology that allows us all to behave as if we
were just a village of 10 people. And we all agreed on
everything.
The creation of crypto currencies was the first application.
And now it's being applied to land registration, smart
contracts, time-stamping, certification and more.
If everybody trusts the block chain and we start to use it
more, what happens to those individuals, companies,
industries and institutions that exist to confirm, to register, to
process and to enforce?
What happens to our lawyers, our courts, our land registries,
our passports, our contracts, our banks, our stock markets,
our stockbrokers, our insurance companies?
There are people out there right now working day and night
to completely disrupt each of those industries and more.
10. Conclusion(ish)
Any one of these technologies would be disruptive enough.
Think about the billions of dollars of market cap lost to
“creative destruction” because of the Internet…
A single technology that has only been around, in the public
sense, for about 20 years. How many of us thought this
(Amazon) was the dawn of a new era?
Think about the billions of dollars of new value created since
the dawn of the smartphone? A technology that is only nine
years old this month.
We're talking about 6 or 7 new phenomena that will each be
at least as disruptive as ‘the internet’ and ‘mobile’. All
emerging from their ‘deceptive’ phase between now and 10
years from now.
Remember faxes, the Encyclopaedia Britannica, Kodak?
Kodak invented the digital camera… in 1973. They had no
idea…
If you think that your company or your industry is immune to
these forces then you have not been paying attention for the
last 20 years.
If you are in health or fitness and have not considered how
the IoT, AR and AI are going to affect you... You have some
homework to do.
Are you in tourism, hospitality or education? Think about how
VR is going to impact your bottom line. Or the size of your
available market or your infrastructure needs... You need to
11. go back to your team and think about how you can
incorporate this into your strategy.
If you are in retail, logistics or shipping, have you looked at
3-D printing and VR? How are they going to affect your
supply chain and customer interaction? It’s time to rip up
your strategy documents and start designing a solution.
Here’s Astro Teller expressing Google’s strategic approach…
You need to:
- develop your “adaptability quotient”
- determine what the key driver of the value is in your
industry and
- be the person who turns that into a platform for others to
grow off (you’ve all seen this Uber slide right);
Because if you don’t some 23-year-old in Korea is going to do
it for you. Then you’ll end up on her platform, struggling for
market share while your margins plummet.
You can even reverse-engineer this slide - what would be the
wildest thing for my company to “have none” of?
- Start collaborating with your competitors.
- Start sharing things. Open up.
- Start a Skunkworx team.
- Form uncommon partnerships - get a real outside
perspective into the boardroom.
- You must get creative. Use design thinking, rapid
prototyping and science fiction scenario planning.
- These will all force you to get out of the box.
As Paul Saffo says “find the sacred cows in your business…
And kill them!”
12. Global grand challenges
Right. So, from a business point of view those are the things
you need to worry about. But that’s still micro, let’s have a
look at the macro.
While poverty is on the decrease and health is increasing
globally, we have a long way to go and our planet is really,
really suffering.
This is all the water on earth. That tinier ball is fresh water.
The one that you can’t see is fresh water that’s actually
accessible.
We know this. The world knows it. Here are the new UN goals
(some of them). Here is SU’s list of global challenges (for its
incubator/accelerator program).
Exponential tech means that things happen very, very
quickly. We could quite feasibly be heading towards a
complete dystopia… or a tech utopia. I believe the next 30
years will tell…
One of the biggest drivers of this, is the challenges to the
labour force. None of these technologies are driving mass
employment for unskilled labour.
Here are some projections on unemployment potential over
the next period of automation. Here are the so-called Nini
(not studying, not employed) figures for latin america.
Projected to reach 25% within 5 years, if not there already.
In the past, labor markets had enough flexibility to recover
from large-scale disruptions. But those disruptions took place
over decades. And so, the new industries that emerged could
keep pace with the creative destruction.
13. Here are some vulnerable industries.
A mere 10% utilisation of autonomous vehicles by truck
fleets in the US would put 700,000 people out of a job. Note
that they tend to be lower paid workers - those least able to
cope without an income for any period of time.
So - huge technological disruption, mass unemployment on
the way and... Current global scale existential crises. In the
form of income inequality, climate change, food and water
insecurity. And a completely unjust distribution of resources.
14. Get Personal
For me and Nupur, personally, this is where it all comes
together.
The disruption coming from technology is unstoppable. But it
presents us with a unique opportunity to redesign many
human, global systems. We could align the real needs of
humanity at a global level with what is being delivered on the
supply side.
Maybe society as a whole will choose to only support more
sustainable business models? Like Tom’s Shoes or Patagonia?
Or something more radical like platform cooperativism.
Perhaps as people are losing jobs, they will become more
engaged in their communities, volunteering and helping
those around them?
Or perhaps they will be more inclined to choose 'work' that is
more fulfilling?
I would love to see small, random acts of kindness become
the norm…
But I don’t think any of those things will happen by
themselves. I believe we need systematic solutions, or
alternatives, in place to ensure that making those choices is
sustainable.
Alternative reward or value exchange systems or
complementary currencies that could augments the existing
monetary system.
Guaranteed Basic Income experiments are already underway
in Europe and YC, the most popular tech accelerator in the
15. US just announced they want to hire their first permanent
researcher to look at this question in the US.
If we align financial reward with our values, perhaps we will
come through this next challenging, transitional period as a
truly just and compassionate society.
And it is incumbent on all of us to recognize that the current
modus operandi is simply unsustainable, and that saying that
doesn’t render you a heretic; and considering changes or
restriction on existing implementations of capitalism doesn’t
make you a revolutionary socialist.
We need to change something - we are all living
downstream, in time, and we need to stop poisoning our own
futures.
Technologist David Roberts said “Our power comes from our
compassion not our technology.”
Perhaps our technology could nudge us all to exercise a little
more compassion.
In any event, that’s what I’m going to be working on this
year.
Gordon Casey
@gordonwcasey
gwpcasey@gmail.com
www.brave.ly