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The Coming Convulsion of the Fourth Industrial Revolution

January 4, 2019 by Llewellyn King Leave a Comment

It isn’t starting with a bang, but don’t be deceived: The Fourth Industrial Revolution (4IR) is underway, and companies and institutions that ignore it will be overwhelmed by it. Individuals will adapt to it as best we can, as we always have.

In short 4IR is the fusing of the digital, physical and biological spheres. It’s the interconnection of everything, bringing change in companies, jobs, schools and eventually government. Government won’t to be able to stand idly by when it sees traditional businesses upended and huge changes in how we work and study, and where.

As 4IR moves ahead one can reasonably contemplate a time when body parts will be printed, robots will prepare restaurant food and drone taxis will take us to the airport, where departures will be handled without human intervention — because you were verified through facial recognition when you bought your ticket on your smartphone, you won’t need to do anything but walk through security and onto a plane, which has a cabin crew to look after you but no pilots.

Behind and driving the revolution is artificial intelligence, commanding everything from farms, where tractors will start themselves and plow or reap without a human in sight, to street lights that turn off when nothing is moving and back on as needed, to manufacturing that will be dominated by 3D printing, better referred to as additive manufacturing.

The troubadour of 4IR is Klaus Schwab who created the World Economic Forum back in 1971, the world’s most important ideas mart known as Davos, after Davos-Klosters the Swiss resort where the forum meets every year. This year Davos kicks off on Jan. 22 and will be devoted to what Schwab, 80, a German economist and engineer, has called “Globalization 4.0”.

The first forum to look at 4IR was in 2016. Schwab has written two books on the subject — the “The Fourth Industrial Revolution” and “Shaping the Future of the Fourth Industrial Revolution” — and has been ceaseless in promoting the future while warning of it. He told Gerard Baker, the former executive editor of The Wall Street Journal, in a TV interview that enumerating the challenges wasn’t enough, there need to be solutions as well.

A note: Don’t think you can join the 3,000 participants this year. It’s by invitation only. And if you get one, Davos hotel rooms — plain vanilla rooms – can cost $900 a night and suites can go for $5,000 a night. When I checked, there were few vacancies. The movers and shakers start early.

The three past industrial revolutions are listed by Schwab as the replacement of animal power by water and then steam power, the latter at the beginning of the 18th century; the deployment of electricity, starting in the late 19th century; and the digital revolution of the last part of the 20th century.

The Davos meeting will examine the upheaval besetting the world with 4IR and how it’ll be managed. It’s what Schwab calls Globalization 4.0. “We must develop a comprehensive and globally shared view of how technology is affecting our lives and reshaping our economic, social, cultural, and human environments. There has never been a time of greater promise, or greater peril,” he says.

Andre Kudelski, a Silicon Valley veteran, now head of the eponymous Swiss high-tech company that bears his name, says, “A skilled engineer can take control remotely of any connected ‘thing.’ Society has not yet realized the incredible scenarios this capability creates.”

Says Robert Shiller, a Yale University economics professor and 2013 Nobel Prize winner, “We cannot wait until there are massive dislocations in our society to prepare for the Fourth Industrial Revolution.”

Others dream of a cleaner, safer and healthier world. Dileep George, an artificial intelligence and neuroscience researcher, quoted by the forum, says, “Imagine a robot capable of treating Ebola patients or cleaning up nuclear waste.”

Leon Trotsky, a veteran of the Russian Revolution, said, “You may not be interested in war, but war is interested in you.” He might well be paraphrased to say, “We may not be interested in the Fourth Industrial Revolution, but it is interested in us.”

 

Filed Under: King's Commentaries

World’s Glitteriest Conference

December 29, 2018 by Llewellyn King 1 Comment

On Jan. 22-25, 2019, in Davos-Klosters, a Swiss resort, the World Economic Forum meets. It is the glitteriest of conferences. The great and the good, the rich industrialists and the glamorous public intellectuals get together to sort out where humanity is headed.

Just to be invited is a kind of credential, a sort of honorary degree, a statement that you are world-class important.

There are politicians, CEOs, so-called thought leaders and the top non-governmental organizations, environmentalists and academics.

The world’s most important international conference it is, but does it work? At some level, yes. At others, no.

It stimulates thinking, but does it change anything? Reading the news coverage year after year you are inclined to think that a lot of the participants come to rehash things they have said before or ideas that have been with them for a long time. Others are stuck in ideological dogma and try to bend the facts to fit the dogma. Think socialist; think Republican.

Yet it has no competition. It is the place to float an idea. Probably no one floats more ideas than the man who founded the forum in 1971 and serves as its executive chairman, Klaus Schwab. He is a visionary German, who holds doctorates in economics and engineering from universities in Germany and Switzerland and a Master of Public Administration from the John F. Kennedy School of Government at Harvard.

It was Schwab who, in 2016, launched the idea of the Fourth Industrial Revolution (4IR) by making it the subject of the forum that year and writing a book on it.

The 4IR is the concept that all of science and technology — from biology to nanotechnology, from quantum computing to artificial intelligence — are coming together with stunning and, at times, frightening visions of the future. A 3D printer may be making a body part while a robot is helping treat Ebola in Africa. New metals are being formulated for specific needs without human input, and farms are operating with few farmers.

In that way, with all science melding and communicating, 4IR may have consequences far beyond the previous three: first, mechanical power from water and steam; then electrical power for manufacturing; and followed by computing power and communications. Now, in the age of the Internet of Things, unity of things from artificial intelligence to advanced medicine.

Enter governments. Schwab sounds a note of warning: Will they grasp and facilitate, or will they frustrate what is happening? Will they regulate when regulation is needed? In short, will the global political class comprehend that it is in the throes of something big — bigger than it can imagine? Will it allow it to flourish while checking its Frankenstein tendencies (as with the social media companies), or will it try to subdue it or let it run to excess?

If the Davos forum has a structural weakness, it seems to me, it is that executives who are mostly middle-age and older are dealing with ideas that have been generated by young scientists, researchers and thinkers. The average age of the people in the control room for the first manned moon launch, Apollo 11, was 28. By the time NASA had become more grown-up, the average age of the control-room operators for the first space shuttle launch was 47.

Call it the sclerosis problem. I have often wondered, as civilian, large airframe design is dominated by two companies, Boeing and Airbus, whether a young engineer with a better idea would get a hearing.

It takes new companies to pursue new ideas. Those that do not grasp the speed of change fall by the way, or are just reduced in size. Half the companies of the Dow in 2000 are not there now.

The 4IR is underway here and now — it is not something in the out-years. A microcosm of 4IR is in the emergence of smart cities where telephones, computers, electricity and social welfare are fusing.

All of this raises the two great questions of our time: What is the future of work and can we save the environment in time? You will hear on these from Davos, no doubt.

A contradicting footnote to the idea that the young are the only big idea merchants: Klaus Schwab is 8o.

 

 

Photo: Visions for the South Caucasus and Central Asia. BAKU/AZERBAIJAN, 8APRIL13 – Klaus Schwab, Founder and Executive Chairman, World Economic Forum. Copyright World Economic Forum (www.weforum.org)/Photo by Elmar Mustafayev. This photo is used under the Creative Commons license Attribution-NonCommercial-ShareAlike 2.0

Filed Under: King's Commentaries

A Holiday Message for ME/CFS Sufferers and Caregivers

December 24, 2018 by Llewellyn King 8 Comments

There are two holiday seasons. There is the one of joy, the one I’m lucky to celebrate. And there is the one those who suffer all year endure. It is also the one their caregivers struggle through.
At the end of the year, no matter their religion, the lonely find themselves lonelier, the confined more boxed in, and the broken more irreparable. The holidays can shine with love and they also can hurt.
Those of us who don’t have Myalgic Encephalomyelitis, also called Chronic Fatigue Syndrome, can only lend our hearts to those who do. We can seek to comfort and tell them that we know what they’re going through, but we don’t know. We can look, but we can’t know the terrible incarceration mandated by the disease: the life sentence.
A word about caregivers: The families, lovers and friends who know that these dear people, so loved, exist in a cruelly unequal world, isolated by pain and immobility. They are the people who must draw from the well of compassion over and over: today, tomorrow, next week, next month and next year, on and on. We can all be compassionate for a while, but to care for another permanently is noble, saintly and hard, hard work.
There is a glimmer (Is that too strong a word?) on the horizon as the pace of research into ME has picked up in the last several years and as has funding, much of it raised privately, has increased, though the effort is still a bit incoherent.
While there is research, there is hope. Maybe a new discovery will transmute endless misery into glowing joy. Maybe it’ll be in the biology of the disease, maybe in a compound that will hold it at bay, and maybe in a cocktail of compounds.
One of the priceless bounties of this time of year is hope. It is almost the only salve for the pain.
When I was 19 years old in Rhodesia, which is now Zimbabwe, I was working on a weekly newspaper. One night, just before Christmas, one of the African pressmen caught his hand in the press and it was crushed, mangled, three fingers gone. I had to drive him to the hospital and I grabbed the linotype operator’s Morris Minor. After having persuaded the other African workers that they couldn’t all get into a small car, five of them and the victim squeezed in and I began driving through deserted streets the few miles to the hospital.
For the life of me, I didn’t know why the four workers were insistent on weighting down the car. Then they began to sing, and I knew. The whole way they sang pain songs in Shona (they were of the Shona tribe). The songs – dirges, if you will – were an ancient analgesic to help the injured man endure the pain as he headed toward the Western world of morphine and surgery.
I hope that all who suffer this season will find the equivalent of their song to help with the pain, physical and emotional.
Yours warmly,
Llewellyn

Filed Under: King's Commentaries

Campaigning for Neckties and Against AI in 2019

December 21, 2018 by Llewellyn King Leave a Comment

No New Year’s resolutions this year. Nary a one. Instead I am throwing myself, body and soul, into campaigns — campaigns designed to halt the slide in civilized life.

Here are my campaigns:

—Rescue the necktie: More and more men are going around naked about the throat but wearing a pocket square. Now I love pocket squares, very useful if you should meet one of those famous actresses who is always in tears. Whip it out, get it soaked and presto! It goes on eBay.

The thing is neckties are disappearing. Only businessmen on the perp walk and some politicians wear them. Even former President Barack Obama appears to have abandoned them almost entirely — a serious regression.

Ties are important. They conceal protruding Adam’s apples, turkey necks and dirty shirt fronts. Also, they are used to wipe eyeglasses and to twirl when listening to people who go on and on.

—I am pushing to get airline executives to ride “basic coach” on at least one 10-hour flight. They will learn that they are the agents of physical cruelty and weird perversity.

They have ordained travel without luggage because the fees for luggage on “basic” are so high you would be paying for another class of service if you take a suitcase.

The airline bosses should be squeezed into the amazing shrinking toilets (too small for grown-ups); they should have their knees in their faces and have to sit up as straight as a drill sergeant. They should then try to stand up after hours of contortion.

—I want a punitive tax for banks who will not speak to you but will put you through hours of automated telephone hell, in the hope that you will give up and leave them alone (with your money and their fees with which they steal that money).

—Hedge funds that shred the lives of workers and deny customer service in the name of “shareholder value” should be prosecuted for hate speech for those words. “Shareholder value” can be roughly translated as, “We’re going to screw you.” How about “customer value” or a little “social value”?

You have been on the line for hours and are begging the artificial-intelligence recording to let you hear a live human voice, even if it is originating from a faraway country and its owner is speaking English as a third language. The machine says, “Do you want to hear the main menu again?” You slide to the floor, defeated, crazed and suicidal.

I want it to be a federal crime to have a machine with a woman’s voice. They are cursed routinely with foul expletives that even a machine should not have to hear, let alone one that thinks it is a woman. #MeToo should get on this one and demand that the programmer gets the sack without pension.

—I will be working for honesty from automated systems. I do not want my computer to “welcome” me when I turn it on. I believe that it does not care, that it is not sincere and that it is, to this point in time, inanimate and has no feelings. Therefore, when machines say things like “Have a nice day,” even “thank you,” they are lying.

This will change as artificial intelligence is given artificial emotions and machines talk to us in ways so crafty we will not know whether it is a machine or a person. We may not even know if the damned thing has captured the affections of our loved ones. Some states still have an “alienation of affections” common law tort that allows the thwarted lover to sue for stolen love.

Already, you may have a good case for filing a lawsuit against Facebook for running off with your children. Albeit in plain sight.

Happy New Year.

Filed Under: King's Commentaries

Christmas Is Coming — I Know Because There’s a Cake!

December 14, 2018 by Llewellyn King 1 Comment

Christmas is coming. I know this because of indelible evidence in my own home. My wife, Linda Gasparello, has just baked a Christmas cake. If I doubt that this is the month of Christmas, I just have to look at it, cooling on the kitchen counter, declaring itself, in its way, the harbinger of the holidays.

The cake can’t be eaten yet. No, no. Linda, who’s a phenomenon at the range, explains when she sees me circling with a knife, the cake needs to “cure” for at least a week. Rum must infuse the cornucopia of fruit that has bonded with flour and eggs and whatever else makes a cake a cake. I don’t know all the fruits and nuts that go into The Great Christmas Cake, but I do know there are dried apricots. Linda gave me some as a bribe to get out of the kitchen while she was baking the cake.

All year we eat very little cake in our home. Desserts are avoided for the usual reason: keeping down the calorie count. But recently, for a party, Linda made a carrot cake. Not because she’s my wife, but because I adore carrot cake, I can say that hers is the best ever.

How come I indulge in carrot cake when I eschew sponge, hide from German chocolate and, with a heavy heart, have even shaken my head at Sachertorte (chocolate cake covered with apricot jam and chocolate icing) in Vienna — a crime against Austria, practically an act of war? (I must confess, though, that I once ate the cake in the Hotel Sacher in Vienna where it was invented.)

The answer is carrots sound so healthy. “Good for you,” my mother used to say. She was a frightful cook and so raw carrots were better than anything she tried to do to them, which was mostly boil the life out of them until they were soft and spongy, most of the nutrients gone.

This year I read “Hotel Sacher,” a novel by Rodica Doehnert that traces the role of the great hotel at the end of the 19th century — how it was a kind of headquarters for the events that led to the end of Austro-Hungarian Empire and to World War I. If you want to research this in chilling detail, read Max Hastings’ book “Catastrophe 1914: Europe Goes to War.”

Back to cakes and Christmas. Linda’s cake has so many things in it I wonder it doesn’t cause a criticality incident or spontaneously ignite.

There seems to be a boom in cooking and baking in particular. It all goes back to Julia Child, “The French Chef” on television in the 1960s, who whet the nation’s palate for cooking. Julia showed that cooking could be fun (especially if you cook with wine and imbibe as you go) and challenging — so much so that today we have an abundance of cooking shows.

The ones I hate are those that weaponize cooking — with contestant chefs who are sent home in tears because their sauce separated or, horror of horrors, their souffle collapsed.

Anyway, it seems 2018 is the bakers’ year. Linda is an exception because she bakes and tames meat. She can make a delectable osso buco as easily the tiramisu that follows. Mostly, there’s a divide between the flour people and meat people. Pretty much in the same way, when I worked at The Washington Post, there was a divide between the pot smokers and the drinkers. Me, the latter.

I can tell baking is in by the number of recipes I find people exchanging, and I put it all down to “The Great British Baking Show” on PBS, which entertains and makes baking exciting. Here contestant chefs also are sent home, but with such teary reluctance that if you want a hug from the whole cast and the other amazing chefs, you deliberately add a cup of salt instead of sugar to the cake. Tears and hugs all round.

We’re planning a Great British Christmas Tea at our house with Devonshire clotted cream and jam on scones, little sandwiches and — play the drums and trumpets fortissimo — the fruited cake that is curing very nicely, thank you.

And for Christmas itself? We’re going out to a restaurant. Happy holidays!

Filed Under: King's Commentaries Tagged With: cake, Christmas

Christmas in Europe Coming Under Leaden Skies

December 8, 2018 by Llewellyn King Leave a Comment

AGRINIO, Greece — There is not a dark cloud hanging over Europe. There are a bunch of them. Taken together they account for a sense of foreboding, not quite despair, but a definite feeling that things are unraveling and, worse, that there is no leadership — second-raters at all the national helms. That was the near consensus at the annual Congress of the Association of European Journalists here in lovely western Greece.

In a class by itself in worries in Europe is Russia. It is creating trouble all over Europe, but especially in the countries that made up the former Soviet Union. It has a propaganda effort the likes of which has not been seen since the days of the Cold War — except modern technology and its social media manifestation have made it more deadly, surreptitious and deniable.

The problem is one that affects news organizations directly. Fake events vie with pernicious posting on social media and relentless cyber-undermining of systems and processes.

Disparaging democracy seems to be a primary Russian goal, making it appear unworkable.

When will Russia move from soft war to hard war? The current standoff over Crimea augers badly for vulnerable Russian neighbors, particularly the Baltic states of Estonia, Lithuania and Latvia. They are battling massive Russian undermining of truth and wonder whether they will fall again to the Russian bear.

Add to this fear a new dynamic: What will America do if Russia moves? The fear is it will do nothing. President Donald Trump’s haranguing of the NATO allies is not reassuring to them.

After the existential worries about Russia, comes Brexit. It is here and now. It is, in the eyes of continentals, a ghastly mistake that is going to cost all of Europe dearly. And what for? The vague shibboleth of “sovereignty.” Euros remain sadly hopeful that somehow there will be a second referendum in Britain and that everything will be as it was: Britain being a stabilizer among the 28 nations that make up the European Union.

Since Britain’s entry in 1973, it has been a fundamental side of an iron triangle of the three big economies: Germany, France and Britain. Britain has been an older sibling, the sensible one. Now the odds are that it will be gone, headed for an uncertain future leaving behind the wreckage of a broken marriage and squandered hope for what Tony Blair, the former Labor prime minister, used to call the “European Project.”

Hungary and the ultra-right policies of Viktor Orban are a very great worry in Europe. Similarly, Poland’s shift to the right and the success of right-wing, near fascist parties across Europe, including Austria (heretofore a center of cautious reasonableness), add to the sense of disintegration.

Two other worries are France and Italy. Along with Hungary and Poland, Italy, with an amalgamated government of the ultra-right and ultra-left, looks as determined as the other two to thumb its nose at the European Union and its rules, maybe to withdraw even. Hungary does it over press freedom and human rights, Italy over fiscal probity and open hostility to the EU.

France is a different story. Emmanuel Macron, the young president was, briefly, the great hope of Europe, but his popularity at home has slid and he has had to turn back his ambitious reforms after street demonstrations, violence and fatalities.

Add to all this shifting sand the uncertain future in Germany where Chancellor Angela Merkel is on her way out and, suddenly, she seems a more desirable leader than she was thought to be during her tenure.

Feeding the swing to the right and as far from resolution today as it was when it began, illegal immigration is an undermining pressure, un-addressed on the left and exploited on the right.

Meanwhile, across Europe press freedom is teetering: a big issue at this congress. As a Bulgarian delegate said to me, “When the press goes, so goes democracy.” Then she added, “We thought that, in some way, America would help, but not now. We are on our own.”

Europe will have a fine Christmas — it does Christmas so well. Next year though, some of the stresses may reach breaking point and the carols will have given way to uglier, discordant notes.

 


Photo: Germany: Bundestag building decorated on Christmas holidays.

Filed Under: King's Commentaries

Time for a Little Trumpish Positive Non-Believing

November 30, 2018 by Llewellyn King Leave a Comment

I’d like to introduce you to the power of not believing. There is, as President Trump has pointed out, too much believing going on and it is time for a national re-evaluation.

Take, for example, all this erroneous believing about sea-level rise. Guru Trump doesn’t believe in that, so it’s not happening. Billions of dollars are being wasted in cities, from Boston to Miami, to harden against something that isn’t happening. All that’s needed is a little non-belief.

Some admirals in the U.S. Navy have failed to get the message and are alarming their commands about sea-level rise on the East Coast of the United States, endangering naval installations. Particularly they’re suggesting that Naval Station Norfolk, the huge base in Virginia, is in trouble. These admirals and their adherents in the ranks should be reassigned and given shore duty on mountains so they can see the sea level is actually down.

In some quarters, the doctrine of not believing is losing ground and believing is seeping in. Wall Street stands out. Something should be done, maybe another tax cut.

While it was bastion of the power of non-belief, Wall Street has been backsliding; heresy has shown its ugliness. Masters of the Universe, to use Tom Wolfe’s designation, applauded the tax cut, ran wild, overdosed on Chateau Haut-Brion, went crazy rebuilding their summer compounds in the Hamptons, winter cabins in Vail and pieds-a-terre in Paris. President Trump smiled, his chief economic adviser of the day — a temporary job — beamed, and first lady Melania bought a new wardrobe. Everyone upgraded their private jets and joined a Trump golf club. Life was good for non-believers and there were bigger apartments in the skies over Manhattan.

Now some of those same worthies, those who believed that their guru had pointed the way to eternal and growing wealth, are muttering about huge deficits, rising interest rates and unsupportable debt service. Ingrates. They should be taken, along with the traitor former chief economic adviser Gary Cohn, to a place of re-education to learn again Trumpanomics and how to con the Arabs into buying condo glitz.

Just turn on the television and see the happy faces, the fulfillment, the sense of purpose, the smug certainty of the precious individuals who are wholly invested in non-believing. Take the happiest of all, Kellyanne Conway. What confidence, what assurance, what sense of inspired mission; how exquisitely she extinguishes facts, lays waste to data and bullies the truth. Or her colleague, the redoubtable Sarah Sanders, a devoted non-believer, who goes against an army of rude fact-pushers whenever she steps into the James S. Brady Press Briefing Room.

Non-belief defends Crown Prince Mohammed bin Salman of Saudi Arabia. What a sweet, dear young man, famous in royal circles for his humanitarianism and his interest in cadaver surgery.

Or raise a glass to that leader of men, sower of harmony, supporter of due process and virtuous murder squads, Philippine President Rodrigo Duterte. Non-believers can see the good in this man, so warmly embraced by Trump himself.

Non-belief gives you strength in all situations: defeat is victory, failure success and troubles melt away. Take North Korea: non-belief has wrought its masterpiece there. Where there was war and fear, now there is love, two great minds declaring their verisimilitude. A little more non-believing and the nuclear weapons will melt away like the trillion-dollar infrastructure project or the Mexican payment for the wall, which will restore our national dignity and save us from a deadly invasion of those begging to work.

The U.S. Border Patrol, the army and militias are doing a great job. But in the interest of non-believing, the president should dispatch his crack non-believers to the border: Rudolph Giuliani, lawyer on television; Peter Navarro, trade fantasist; and Kellyanne and Sarah.

Facts wilt before them.

Filed Under: King's Commentaries

Blockchain, Smart Cities and the Urban Revolution

November 24, 2018 by Llewellyn King Leave a Comment

Blockchain, the decentralized, open-ledger system which can record permanently multiple transactions, is about to come into its own as the world’s cities move towards digitalization. It portends the kind of urban revolution that cities haven’t seen since water-borne sewage enhanced city livability.

These “smart cities” of the future, big and small, will compete to be the most-wired, most-attractive places for high-tech talent and investment. From Orlando to San Antonio and from Boston to Seattle, the race is underway.

The big telephone companies like AT&T and Verizon want to wire cities for their 5G and universal WiFi, involving new “short towers.”

Smart cities are cities which are getting ready for the future. The infrastructure which needs to be developed and deployed includes:

  • An electric grid that senses and manages demand instantly; that allows for two-way flows, as from a self-generator into the utility grid or a customer who wants green power only.
  • 5G technology which will operate on any device and carry city communications to a new level, like knowing the location of every ambulance and which traffic lights must change to speed one through without hitting a firetruck barreling toward the same destination.
  • Traffic lights that dim when there is no one on a street, or street lighting which dims when the moon is full or when there is no traffic.
  • Monitors linked to computers which can identify potential failures in old water or sewer pipes.

Holding it all together — the sinew of smart cities — will be blockchain. It’ll be the recording system that will tell whether electricity is flowing from a community generating facility (like a solar farm) and how it’s blending with the utility company’s own generators to the amount of power flowing to street lights.

Blockchain is set to become the ledger of everything, from the billing for your local taxes to keeping track of parking tickets. It will also be a data treasure trove for future planning.

Blockchain is associated with bitcoin and other cryptocurrencies. That’s because it’s not only the system on which those cryptocurrencies were based, but it’s also a powerful tool with multiple uses far beyond them. The original developer of bitcoin, believed to be Satoshi Nakamoto, used blockchain to guarantee the integrity of the new money.

Some blockchain enthusiasts, including many in the big tech companies like IBM, believe and have often said that it can be a bigger disrupter than the internet. They’re passionate about the blockchain future, as are the big financial institutions where use will speed and verify transactions.

Others, working in the trenches of bringing about the blockchain revolution, are more cautious. Chris Peoples, founding and managing partner of the Baltimore-based innovation strategy firm PP&A, says that one must be wary of the hype. Blockchain, he says, “does promise to open new avenues of value for both organizations and the common good. However, with the technology still undergoing rapid development in the areas of speed, consensus and scalability, it will require the continued support from industry and government to reach its full potential.”

The smart city upside: Cities will become more livable, more manageable and the quality of life for all should improve. The downside: All the sensors and electronic surveillance could represent a new and very real threat to privacy.

There are also questions how much of the brave new urban world we want to have. Proponents of smart cities believe that a time will come when, with autonomous vehicles, the family car will disappear in favor of driverless, ride-sharing vehicles. An app on your phone will summon one and off you’ll go, probably reading your emails as you’re driven safely, thanks to artificial intelligence and blockchain, to your destination. Maybe. People haven’t abandoned their own cars for public transportation.

My view is people want their own stuff in a car — the old newspapers, the box of peppermints and the fury dice hanging from the mirror. A blockchain-enabled future of smart cities is dandy if we can keep our inefficient humanness.

We aren’t all yearning to be efficient in everything. We treasure a bit of muddle. I hope we can teach that to the computers and put it into immutable blockchain.

 

 

Photo: The Children’s Hospital of San Antonio, San Antonio, United States by Dan Gold on Unsplash

Filed Under: King's Commentaries

The Kiss of Amazon Comes Very Dear

November 16, 2018 by Llewellyn King 1 Comment

Having run around the country as a modern Prince Charming in search of Cinderella, Jeff Bezos, Amazon’s boss, has decided that two hopefuls fit the slipper: Crystal City, Va., and Queens, N.Y.

But these Cinderellas aren’t to be carried off to live happily ever after in Amazon Castle. No, there are dowries to be paid — about $2 billion each in tax abatement and other goodies. These beauties are no bargain.

In fact, New York City and Washington, D.C. — Queens is a borough of New York and Crystal City (a part of suburban Arlington, Virginia) is just across the river from Washington — may be prostrating themselves to gain possibly 25,000 jobs in an unhappy, taxpayer-funded alliance.

The theories as to why Bezos chose these locations abound. The dominant one is that high-tech companies must follow high-tech workers. That explains why Boston and San Francisco are overheated along with, yes, New York and Washington.

This overheating might be described as more people trying to get into a city than its housing base and infrastructure can absorb. Result: skyscraper-high living costs, hideous commutes and wretched lives for those on the economic bottom rung.

High rents and homelessness go together.

I’m more persuaded that the decision has been made more to suit Bezos and his executives than to snare talent. Washington is the site of one of the Bezos mansions and he owns The Washington Post. New York has always had special appeal to the ultra-rich: Wall Street and the gilded social set.

Palo Alto, in California’s Silicon Valley, is white-hot in terms of desirability for high-tech jobs. But it was underdeveloped 45 years ago when a visionary scientist, Chauncey Starr, established the Electric Power Research Institute there. Starr told me he chose the location not because of the talent pool, but because he wanted the independence he feared he wouldn’t get in a big city, close to the electric companies that funded EPRI. The high-tech talent was yet to move in.

The point here is that it’s not necessary to go to the labor, the labor will come to you. Had Amazon chosen, say Upstate New York or somewhere in Kansas, and hung out a shingle for help, it would’ve poured in: build and they’ll come.

The great Washington hostess and diplomat Perle Mesta said, “All you have to do to draw a crowd to a Washington party is to hang a lamb chop in the window.” The same goes for labor.

The downside to Washington these days is that its roads and bridges, to say nothing of its troubled subway, are inadequate for the stunning growth it has seen since the late 1960s. It has some of the worst traffic jams anywhere and is said to have overtaken Los Angeles for traffic congestion. As the greater Washington area is split between the District of Columbia, Maryland and Virginia, regional problems are hard to solve and often go unsolved as a result.

New York needs infrastructure spending in the worst way, from the tunnels into Penn Station to the estimated $48 billion the subway needs to modernize. But an increasing amount of the city’s capital budget is going to have to be devoted to building barriers against sea rise, particularly in lower Manhattan and to a lesser extent in Brooklyn and Staten Island. Is it a good investment to sink money into any location which is going to have to throw its treasure at Neptune, not improving the rest of the infrastructure?

As someone who lived most of his adult life in Washington, I don’t celebrate its helter-skelter growth, gridlocked roads, potential water shortages or the just-upgraded sewage treatment plant, Blue Plains, which has been known to flood, sending the raw stuff into the Potomac River in big rainstorms.

Virginia and New York, have you bought into a cyber-dream from Amazon that denies reality? You’re paying for a tenant who should pay you for the stress of his buildout.

Prince Bezos, there were so many other pretty feet.

 

 

 


Photo: CHIANGMAI, THAILAND – March 31, 2015: Photo of Forbes article page about Jeff Bezos on a ipad monitor screen through a magnifying glass.

Filed Under: King's Commentaries

My Poetic Quest to Understand Artificial Intelligence

November 9, 2018 by Llewellyn King Leave a Comment

Myself when young did eagerly frequent
Doctor and Saint, and heard great Argument
About it and about; but evermore
Came out by the same Door as in I went.

I feel close to Omar Khayyam, the great 11th-century Persian poet and mathematician, not just because of his fondness for a drink but also because of his search for meaning, which took him in “The Rubaiyat” to “Doctor and Saint” and then out “by the same Door as in I went.”

I’ve been looking at artificial intelligence (AI) and I feel, like Omar, that I’m coming away from talking with leaders in the field as unenlightened as when I started this quest.

The question is simple: What will it do to us, our jobs and our freedom?

The answer isn’t clear: Even those who are enthusiastic about the progress they’re making with AI are privately alarmed about its consequences. And they worry about how far some corporations will push it too hard and too fast.

The first stages are already active, although surreptitiously. The financial technology (fintech) world has been quick to embrace AI. Up for a bank loan? Chances are you’ll be approved or turned down by a form of AI that checked your employment, credit score and some other criteria (unknown to you) and weighed your ability to repay. Some anomaly, maybe a police report, may have come into play. You’ll be told the ostensible reason for your rejection, if that’s the case, but you may never know it.

The two overriding concerns: what AI will do to our jobs and our privacy.

If jobs are the problem, governments can help by insisting that some work must be done by human beings: reserved occupations. Not a pretty concept but a possible one.

When it comes to privacy, governments are likely to be the problem. With surreptitious bio-identification surveillance, the government could know every move you make — your friends, your business associates, your lovers, your comings and goings — and then make judgments about your fitness for everything from work to liberty. No sin shall go unrecorded, as it were.

This one isn’t just a future worry, it’s nearly here. The Chinese, I’m told, have run an experiment on citizen fitness using AI.

Historically, at least in literature, we’ve been acculturated to the idea of man-made monsters out of control, whether it was Mary Shelley’s “Frankenstein” or Robert Louis Stevenson’s “Dr. Jekyll and Mr. Hyde.” But the mythology probably has been around since man thought he could control life.

On jobs, the future is unclear. Until this point in time, automation has added jobs. British weaver Ned Ludd and his followers, who smashed up the looms of the Industrial Revolution, got it wrong. Nowadays cars are largely made by machines, as are many other things, and we have near full employment. Fields like health care have expanded, while adding technology at a fast pace. AI opens new vistas for treatment.

Notoriously difficult-to-diagnose diseases, like Myalgic Encephalomyelitis, might be easily identified and therapies suggested.

But think of a farm being run by AI. It knows how to run the tractor and plow, plant and harvest. It can assay the acidity of the soil and apply a corrective. If it can do all that, and maybe even decide what crops will sell each year, what will it do to other employment?

In the future AI will be taught sensitivity, even compassion, with the result that in many circumstances, like customer assistance, we may have no idea whether we’re dealing with a human or AI aping one of us. It could duplicate much human endeavor, except joining the unemployment line.

I’ve visited MIT, Harvard and Brown, and I’ve just attended a conference at NASA, where I heard some of the leading AI developers and critics talk about their expectations or fears. A few are borne along by enthusiasm, some are scared, and some don’t know, but most feel — as I do, after my AI tour — that the disruption AI will bring will be extreme. Not all at once, but over time.

Like Omar, I came away not knowing much more than when I began my quest. “The Rubaiyat” (which means quatrains) is a paean to drink. At least no one suggested machines will be taking to the bottle, but I may.

Filed Under: King's Commentaries Tagged With: future, future of work, innovation, NASA, robotics

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