Robot Wars! “The combination of new market rules and new technology was turning the stock market into, in effect, awarof robots.” —Michael Lewis, “Goldman’s Geek Tragedy,” Vanity Fair, 09.13
Let’s Welcome Our Newest Board Member: “Just like other members of the board, the algorithm gets to vote on whether the firm makes an investment in a specific company or not. The program will be the sixth member of DKV's board.” —B usiness Insider, 13 May 2014:
“A Hong Kong VC fund has just appointed an algorithm to its board.”
“A Hong Kong VC fund has just appointed an algorithm to its board. Deep Knowledge Ventures, a firm that focuses on age-related disease drugs and regenerative medicine projects, says the program, called VITAL, can make investment recommendations about life sciences firms by poring over large amounts of data.
“Just like other members of the board, the algorithm gets to vote on whether the firm makes an investment in a specific company or not. The program will be the sixth member of DKV's board.
“VITAL's software was developed by UK-based Aging Analytics.
‘[The goal] is actually to draw attention developing it as an independent decision maker,’ Deep Knowledge Venture's Charles Groome told BI.
“How does the algorithm work? VITAL makes its decisions by scanning prospective companies' financing, clinical trials, intellectual property and previous funding rounds. Groome says it has already helped approved two investment decisions (though has not yet cast its first vote), both of which resemble its own function: In Silico Medicine, which develops computer-assisted methods for drug discovery in aging research; and In Silico's partner firm Pathway Pharmaceuticals, which employs a platform called OncoFinder to select and rate personalized cancer therapies.” —Business Insider, 13 May 2014
“Algorithms have already written symphonies as moving as those composed by Beethoven, picked through legalese with the deftness of a senior law partner, diagnosed patients with more accuracy than a doctor, written news articles with the smooth hand of a seasoned reporter, and driven vehicles on urban highways with far better control than a human driver.”
—Christopher Steiner, Automate This: How Algorithms Came to Rule the World
“ … Which haiku are human writing and which are from a group of bits? Sampling centuries of haiku, devising rules, spotting patterns, and inventing ways to inject originality, Annie [algorithm] took to the short Japanese sets of prose the same way all of [Prof David] Cope’s. algorithms tackled classical music. ‘In the end, it’s just layers and layers of binary math, he says. … Cope says Annie’spenchantfortastefuloriginality could push her past most human composers who simply build on work of the past, which, in turn, was built on older works. …” —Christopher Steiner, Automate This: How Algorithms Came to Rule the World
“Human level capability has not turned out to be a special stopping point from an engineering perspective. ….”
*“More Than 50 BILLION connected devices by 2020” —Ericsson
**Estimated 212 BILLION connected devices by 2020—IDC
***“By 2025 IoT could be applicable to $82 TRILLION of output or approximately one half the global economy”—GE (The WAGs to end all WAGs!)
Internet of Everything
“The idea of the IoE* [Internet of Everything/Cisco Systems] is a networked connection of people, processes, data and ‘things,’ which is being facilitated by technology transitions such as increased mobility, cloud computing and the importance of big data.”
*Estimated market size, next decade: $14.4 trillion
Source: “The Big Switch,” Capital Insights
“Ford is working with the healthcare industry on a solution that would notify a nearby hospital if you were having a heart attack in your car, which can send an ambulance … before you even know you’re having one. …”
—Daniel Kellmereit & Daniel Obodovski, The Silent Intelligence: The Internet of Things
Everything connected to every thing—with system self-management as one result.
This is a principal explanation as to why the economy is coming back—but new jobs and wage increases are lagging* lagging lagging.
(*When it comes to wages, “non-existent” or even “declining” are the correct words.)
“The median worker is losing the race against the machine.”
—Erik Brynjolfsson and Andrew McAfee,
Race Against the Machine
(1) Interviewee re TurboTax: “No way. I don’t use an H&R Block tax preparer any more. I’ve switched to TurboTax software. It’s only $49 and much quicker and more accurate.” Brynjolfsson/McAfee: “The creators of TurboTax are better off—but tens of thousands of tax preparers now find their jobs and incomes threatened.”
(2) CEO interviewed by the authors says he installed new infotech equipment before the Great Recession, but did not cut payroll when profits were soaring. And then: “When the recession came, business as usual was obviously not sustainable, which made it easier to implement a round of painful streamlining and layoffs. As the recession ended and profits and demand returned, the jobs doing routine work were not restored.”
(3) “For most of the 19th and 20th centuries, employment usually rebounded after each recession, but since the 1990s employment didn’t recover briskly after recessions. It’s not coincidence that as the computerization of the economy advanced, post-recession hiring patterns changed.”
Source: The Second Machine Age, by Eric Brynjolfsson and Andrew McAfee