Friday, August 12, 2016

Paul's Update Special 8/12



Do universities need to rethink what they do and how they do it now that artificial intelligence is beginning to take over graduate-level roles? When university leaders reflect on the future for their institutions and their sector, they often neglect the threats posed by artificial intelligence. When Times Higher Education recently asked sector leaders for their predictions of what universities would look like in 2030, there was scant mention of the impact of technology except in so far as it directly affects pedagogy, via innovations such as massive open online courses.

But the torrent of articles and books published in recent years shows that humans are once again worried that robots are about to displace them in the workplace – and that could have profound effects on universities. It would be a mistake for academics to think that machines will sweep away all the low-skilled, non-graduate jobs before they start nibbling into the more complex professional roles they envisage for their students.

According to Martin Ford, a Silicon Valley entrepreneur whose 2015 book The Rise of the Robots makes grim reading for white-collar workers, it is “becoming clear that smart software automation applications are rapidly climbing the skills ladder and threatening jobs taken by university graduates”. Even whizz-kids with plum jobs in financial services are not safe. In an article titled “The Robots are Coming for Wall Street”, The New York Times reported in February on software written by a company called Kensho that can automatically predict how markets will move in response to different types of world events. The legal field is also being shaken up, Ford tells THE. The consultancy Deloitte has predicted that 100,000 legal jobs in the UK alone could be automated over the next 20 years.

“Could another person learn to do your job by studying a detailed record of everything you’ve done in the past?” Ford asks in The Rise of the Robots. “If so, then there’s a good chance that an algorithm may someday be able to learn to do much, or all, of your job.” 

The good news for universities and academics is that there are still skills that observers believe machines will struggle to master – although they are unsure for how long. The most obvious one is creativity. Massachusetts Institute of Technology academics Erik Brynjolfsson and Andrew McAfee write in their 2014 book The Second Machine Age. “We’ve never seen a truly creative machine, or an entrepreneurial one, or an innovative one.” Brynjolfsson and McAfee themselves point out that what is defined as “routine” and not particularly creative keeps changing as machines master new tasks.

Academics will be pleased to hear that MIT’s Brynjolfsson thinks that the humble essay is still a good way to train students to come up with these kinds of fresh ideas, since it “forces you to organise your thoughts”. The need to foster creativity also “means doing more unstructured work”, he adds. At MIT, “we do much less rote and repetitive learning. The things people enjoy the most…are the things machines do worst.”

Another trait that experts seem to agree will remain uniquely human for some time is social intelligence. “While algorithms and robots can now reproduce some aspects of human social interaction, the real-time recognition of natural human emotion remains a challenging problem, and the ability to respond intelligently to such inputs is even more difficult,” write University of Oxford academics Carl Frey and Michael Osborne in a widely cited 2013 paper that predicts that nearly half of US jobs will be automatable in the next 20 years. Related to social intelligence is the capacity to think about human values. 

Another human trait that machines are struggling to emulate is less cerebral: dexterity. Prominent examples are the “many skilled trade occupations typically shunned by university graduates: plumbers, electricians and the like”.

Worryingly for universities, it might turn out to be far more cost-effective for businesses to automate desk-bound “knowledge workers” than those who move things around for a living. This is because a single computer can use its vast processing power to do the job of tens of thousands of human brains. But a robot on a production line can, at most, replace a handful of humans. It cannot be in two places at once.

Also ominous is Brynjolfsson’s confession that while The Second Machine Age cited three uniquely human skills, he now believes that this may be down to two. While creativity and “complex communication” with humans remain, pattern recognition is being mastered by computers with surprising rapidity. To help students cope with this blistering pace of change, everyone seems to agree that universities must, above all, instil in students a hunger to continue their education beyond graduation and keep their skill sets as broad as possible.

There are, of course, numerous sceptics who doubt that increasingly capable machines will leave humans workless. “We’ve always been finding new jobs,” says Stephen Watt, a computer science professor and dean of mathematics at the University of Waterloo in Canada. “My view is that this has been happening for decades, if not centuries, and it will continue for decades and centuries.” Watt is also bullish about the future for universities. He believes that the technological churn will create an unprecedented demand from students to be taught “how to learn”. 

Ford takes a much more pessimistic view. Graduates on both sides of the Atlantic are already overqualified and struggle to find jobs that use their skills, he writes in The Rise of the Robots, and this will only get worse as automation progresses. He thinks that the “conventional wisdom” that more investment in education will allow humans to stay ahead of machines amounts to little more than a doomed attempt to funnel ever more disappointed graduates into a shrinking set of “graduate-level” jobs.

Efficiency drive: could researchers be automated?

A clue to the rapidly advancing impact of intelligent machines on scientific research appeared on the front cover of Nature earlier this year. “Machine-learning algorithm mines unreported ‘dark’ reactions to predict successful syntheses,” the journal reported.

The algorithm in question was the work of chemistry and computer science professors at Haverford College in Pennsylvania, who took unpublished data about failed chemical reactions and used it to create an algorithm that proved to be better at predicting reaction results than the team itself.

This is just one of the ways that machines are assisting, if not quite yet replacing, researchers in the lab. One of the most famous tools that scientists now have at their disposal is Eureqa: software produced by a company called Nutonian that takes data and works out a model explaining the results. Another area in which machines can assist is in simplifying literature reviews. Another area in which machines already excel is finding patterns in data. This might sound like low-level statistical grunt work, but it means that they are technically capable of making some of the most famous discoveries in science. 

Schmidt admits that the most Eureqa can currently do is iterate variations of existing experiments to get more accurate explanatory models by gathering new data points. His company is working on systems with “computational curiosity” that would be able to come up with wholly new ideas, but that is “probably two to three decades” away.



Visual communication is a must-have skill for all managers, because more and more often, it’s the only way to make sense of the work they do. Data is the primary force behind this shift. Decision making increasingly relies on data, which comes at us with such overwhelming velocity, and in such volume, that we can’t comprehend it without some layer of abstraction, such as a visual one. A typical example: At Boeing the managers of the Osprey program need to improve the efficiency of the aircraft’s takeoffs and landings. But each time the Osprey gets off the ground or touches back down, its sensors create a terabyte of data. Ten takeoffs and landings produce as much data as is held in the Library of Congress. Without visualization, detecting the inefficiencies hidden in the patterns and anomalies of that data would be an impossible slog.

Thanks to the internet and a growing number of affordable tools, translating information into visuals is now easy (and cheap) for everyone, regardless of data skills or design skills. As the presentation expert Nancy Duarte puts it, “Don’t project the idea that you’re showing a chart. Project the idea that you’re showing a reflection of human activity, of things people did to make a line go up and down. It’s not ‘Here are our Q3 financial results,’ it’s ‘Here’s where we missed our targets.’”

Managers who want to get better at making charts often start by learning rules. To start with chart-making rules is to forgo strategy for execution; it’s to pack for a trip without knowing where you’re going. Your visual communication will prove far more successful if you begin by acknowledging that it is not a lone action but, rather, several activities, each of which requires distinct types of planning, resources, and skills.

The typology described in this article is simple. By answering just two questions, you can set yourself up to succeed. To start thinking visually, consider the nature and purpose of your visualization:

Is the information conceptual or data-driven?

CONCEPTUAL
FOCUS: Ideas
GOALS: Simplify, teach (“Here’s how our organization is structured.”)

DATA-DRIVEN
FOCUS: Statistics
GOALS: Inform, enlighten (“Here are our revenues for the past two years.”)

Am I declaring something or exploring something?

DECLARATIVE
FOCUS: Documenting, designing
GOALS: Affirm (“Here is our budget by department.”)

EXPLORATORY
FOCUS: Prototyping, iterating, interacting, automating
GOALS: Confirm (“Let’s see if marketing investments contributed to rising profits.”) and discover (“What would we see if we visualized customer purchases by gender, location, and purchase amount in real time?”)

The first question is the simpler of the two, and the answer is usually obvious. Either you’re visualizing qualitative information or you’re plotting quantitative information: ideas or statistics. If the first question identifies what you have, the second elicits what you’re doing: either communicating information (declarative) or trying to figure something out (exploratory).

The Four Types
The nature and purpose questions combine in a classic 2×2 to define four types of visual communication: idea illustration, idea generation, visual discovery, and everyday dataviz.

                    Inline image
Idea Illustration. We might call this quadrant the “consultants’ corner.” Consultants can’t resist process diagrams, cycle diagrams, and the like. At their best, idea illustrations clarify complex ideas by drawing on our ability to understand metaphors (trees, bridges) and simple design conventions (circles, hierarchies). Org charts and decision trees are classic examples of idea illustration.

Idea Generation. Like idea illustration, idea generation relies on conceptual metaphors, but it takes place in more-informal settings, such as off-sites, strategy sessions, and early-phase innovation projects. It’s used to find new ways of seeing how the business works and to answer complex managerial challenges: restructuring an organization, coming up with a new business process, codifying a system for making decisions.

Visual Discovery. This is the most complicated quadrant, because in truth it holds two categories. Recall that we originally separated exploratory purposes into two kinds: testing a hypothesis and mining for patterns, trends, and anomalies. The former is focused, whereas the latter is more flexible. The bigger and more complex the data, and the less you know going in, the more open-ended the work.

Everyday Dataviz. Whereas data scientists do most of the work on visual exploration, managers do most of the work on everyday visualizations. This quadrant comprises the basic charts and graphs you normally paste from a spreadsheet into a presentation. They are usually simple—line charts, bar charts, pies, and scatter plots.

Visualization is merely a process. What we actually do when we make a good chart is get at some truth and move people to feel it—to see what couldn’t be seen before. To change minds. To cause action.

Some basic common grammar will improve our ability to communicate visually. But good outcomes require a broader understanding and a strategic approach—which the typology described here is meant to help you develop.



It’s clear the world is continuing to change and, along with it, so are jobs and the criteria that determine the ideal candidate. What will the world look like in the future and what sort of employee it will demand?

Sense-making: Essentially defined as “the ability to determine the deeper meaning behind something given,” sense-making is a necessary skill if we are to keep the shades of gray that define us.

Cross Cultural Competency: It’s already becoming clear that people who speak multiple languages are more likely to occupy an important position. Moreover, plenty of companies are now going global, extending all over the world. As a result, their ideal employees need to be able to adapt to different cultures.

Cognitive Load Management: It’s no secret we live in an era where we are bombarded by information. The difference in functionality is how we adapt to it, how we filter it, and how we manage to correctly prioritize it. Possess this skill and you may also find it a lot easier to filter through job applications and understand which one is most suitable.

Novel and Adaptive Thinking: Employers look less in the direction of people who wholly abide by conventions and more toward people with the ability to bring innovations and solutions no one else would have thought of.

Social Intelligence: Social intelligence refers to the capacity to understand that others don’t share the same goals and motivations as we do and the key to all is asking the right questions and getting their own goals to align with our own.

These will be the keys to being the ideal employee in a few decades. Are you ready for the future?

Friday, August 5, 2016

Paul's Update Special 8/5




Joel Peterson could have written his first book on any number of topics. As treasurer, CFO, and then CEO of Trammell Crow Co., the world’s largest private real estate development firm, he helped craft countless deals. As the founder of Peterson Partners and JCP Capital, he has become a savvy judge of companies and entrepreneurs. And as chairman of the board of JetBlue and a director at dozens of other companies over the past 35 years, he is an expert on corporate management and governance.

Yet Peterson, the Robert L. Joss Consulting Professor of Management at Stanford Graduate School of Business, chose to write about trust.

Peterson defines trust as a giving up of control, at some level, to another person. His book, The 10 Laws of Trust, which he wrote with David Kaplan, explores the mechanisms of trust creation in organizations. “You have to be intentional about building a high-trust environment. It doesn’t just happen,” he says. “It’s just like diet or exercise.” The steps of trust include:

  • Start with integrity
  • Invest in respect
  • Empower everyone
  • Require accountability
  • Create a winning vision
  • Keep everyone informed
  • Budget in line with expectations
  • Embrace conflict
  • Forget “you” to become an effective leader

Peterson provides three tests for deciding who to trust. The first is character. “We can’t trust a leader without integrity, who we can’t count on to do what he or she says,” he explains. Next is competence. You trust your mom, for example, but would you trust her to fly a 747 to London? The third, he says, is authority to deliver. There’s no point in trusting a pilot to fly to London if she doesn’t have permission to take off.

“Trust and betrayal are two sides of the same coin,” Peterson notes, “and you need to start out understanding that there is a risk of betrayal. But I make the argument that it is worth the risk and that there are ways to limit it.”

What should you do when trust is betrayed? “You have to fix it,” he says. “You need to apologize. If it’s early on in the game, you can correct things. You can provide direct feedback.” On the other hand, there are certain betrayals that are so serious that you’re really better off parting ways. It may not be worth fixing if the value differences are too great, the priorities are too different, or the betrayal is too profound.

“In all betrayals of trust, however, there’s a healing process that you have to go through,” Peterson says. “The most important thing to do is forgive. Forget it and start thinking about the future.”

Creating and building trust requires a consistent effort, but Peterson is convinced that it is worthy work for leaders. “You have to be rigorous about following the laws of trust. But it’s a better way. It’s a more excellent way of living a life.”



Ever since we started as Google[x] in 2010, X has had a single mission: to invent and launch “moonshot” technologies that we hope could someday make the world a radically better place. At X, we’re trying to do much more than just research dazzling new tools and scientific approaches. We’re trying to create the processes and culture that will help us systematize innovation. We hope to find repeatable methods for delivering real impact to the world, by developing technology products that provide the foundations of large, sustainable new businesses.

  • Responsibly irresponsible
    We embrace failure as a powerful tool for learning and, counter-intuitively, making progress; this is one of our most important values. To make progress toward any audacious idea, you have to make mistakes — you have to seek out frequent, messy, instructive failure that shows you what to do (or not do) next. We couple radical, 10x thinking that throws previous conventions to the wind with the discipline to identify risks early, learn cheaply and quickly what’s wrong with our ideas, and face brutal honesty about where we’re succeeding and where we’re not.
  • Finding people who fall in love with problems We want to fall in love with a problem, and aim to understand it so deeply that it becomes easier to find fresh new approaches. We seek people who are “T-shaped”: they have enormous intellectual flexibility with deep expertise in a particular field, and they can also collaborate easily across diverse domains. While each moonshot has a core team, we try to keep that team as small as possible, and supplement them with people from a permanent roster of in-house experts.
  • Thinking about X as a portfolioBeing a “corporate lab” is a difficult balancing act: place big bets on the future, but don’t spook the people giving you the money. We look for opportunities to balance X’s overall portfolio sensibly, and aim for diversity.
  • Moving through the factoryWe now have a clear process for how ideas move through the factory. They start with our Rapid Evaluation team, where we investigate the seedlings of technology and science breakthroughs that might offer the core ingredients and inspiration for a moonshot. There are two stages of Rapid Eval investigations. In the first stage, investigators get a few weeks and a few thousand dollars to try to understand a nascent moonshot’s biggest risks; this kills many dozens of ideas quickly. The second stage is “Extended Investigations.” A couple of team members are given a few months and a bit more money to build prototypes, running at the hardest and riskiest parts of the technology to deeply understand the problem they’re trying to solve. Then   we have the X Foundry. We developed Foundry because an idea that’s only a few months old may still carry a lot of risk, including risks that we don’t fully understand yet. So we wanted to create a special environment that lasts about a year or so where we could keep teams small and nimble (usually with less than 10 people, and often fewer than five) and focused on the riskiest elements. In this stage we want to learn that an idea can eventually be turned into a product and business, or that it can’t. We expect Foundry to have a handful of projects at any one time. We generally expect that half of the projects will be killed, and half will survive.
  • Actively killing our ideasOne of our most valuable cultural habits is our willingness to kill our ideas. Our teams start each day assuming failure is the norm, and we manage moonshots-in-progress on that basis. Kill signals are another one of our important tools. These are metrics that a team agrees on when the project starts, which, if you reach them (or in many cases, fail to reach them in a certain timeframe), indicate that, “We should walk away from this project now.
  • Graduating moonshots from the factoryX is designed to be a protected space for long-term thinking, prototyping, and de-risking. Our strength is building the bridge from idea to proven concept. We’ve gotten good at pushing forward things people think are crazy to the point of feasible product prototype. Once a team is ready to polish products or scale operations, they’re ready to graduate from X. All of our life sciences projects became Alphabet company Verily in 2015. The Genie team, which developed smart software for designing green buildings, blazed a graduation path to the outside world: they’re now the independent venture-funded startup Flux.io. We also graduate early-stage teams as we see that they can bring a lot of value to another part of Alphabet. That’s why Tango, Insight, GCam, Watch, Glass, and Google Brain, among others, graduated to Google.
  • The world needs more moonshotsWe’re by no means done with our factory, but we think it’s working pretty well so far. I believe it’s possible to manage long-term bets responsibly by creating a culture where people cheerfully run at the hardest things first, kill their work, and head back to the drawing board to find the next great idea. From climate change to transportation, from protecting our oceans and forests to improving access to food and water, there’s no shortage of problems in the world: what we need is more moonshots.



People are concerned about how AI and robotics are taking jobs, destroying livelihoods, reducing our earning capacity, and subsequently destroying the economy.

In anticipation, countries like Canada, India and Finland are running experiments to pilot the idea of "universal basic income" — the unconditional provision of a regular sum of money from the government to support livelihood independent of employment.

But what people aren't talking about, and what's getting my attention, is a forthcoming rapid demonetization of the cost of living. Meaning — it's getting cheaper and cheaper to meet our basic needs.

Powered by developments in exponential technologies, the cost of housing, transportation, food, health care, entertainment, clothing, education and so on will fall, eventually approaching, believe it or not, zero.

The majority of expenditures are in these top 7 categories:

  • Transportation
  • Food
  • Healthcare
  • Housing
  • Energy
  • Education
  • Entertainment

Now, imagine what would happen if the cost of these items plummeted. Here's how…

Rapid Demonetization — What It Means

To me, "demonetization" means the ability of technology to take a product or service that was previously expensive and make it substantially cheaper or potentially free.

Consider Photography: Today, during the megapixel era, the camera in your phone is free — no film, no developing. Completely demonetized.

Consider Information/Research: Today, during the Google era, it's free and the quality is 1000x better. Access to information, data, and research is fully demonetized.

Consider live video or phone calls: Demonetized by Skype, Google Hangouts, the list goes on:

  • Craigslist demonetized classifieds
  • iTunes demonetized the music industry
  • Uber demonetized transportation
  • Airbnb demonetized hotels
  • Amazon demonetized bookstores

Let's look at the top seven areas mentioned above where people globally are spending their cash today and how these things are likely to demonetize over the next decade or two.

(1) Transportation

The automotive market (a trillion dollars) is being demonetized by startups like Uber. But this is just the beginning. When Uber rolls out fully autonomous services, your cost of transportation will plummet. Think about all of the related costs that disappear: auto insurance, auto repairs, parking, fuel, parking tickets. Your overall cost of "getting around" will be 5 to 10 times cheaper when compared to owning a car.

(2) Food

As I noted in Abundance, the cost of food has dropped thirteenfold over the past century. That reduction will continue. Additional gains will be made as we learn to efficiently produce foods locally through vertical farming (note that 70% of food's final retail price comes from transportation, storage and handling).

(3) Healthcare

Healthcare can be roughly split into four major categories: (i) diagnostics, (ii) intervention/surgery, (iii) chronic care, and (iv) medicines.

(i) Diagnostics: AI has already demonstrated the ability to diagnose cancer patients better than the best doctors, image and diagnose pathology, look at genomics data and draw conclusions, and/or sort through gigabytes of phenotypic data… all for the cost of electricity.
(ii) Intervention/Surgery: In the near future, the best surgeons in the world will be robots, and they'll be able to move with precision and image a surgical field in high magnification. Each robotic surgeon can call upon the data from millions of previous robotic surgeries, outperforming the most experienced human counterpart. Again, with the cost asymptotically approaching zero.
(iii) Chronic/Eldercare: Taking care of the aging and the chronically ill will again be done most efficiently through robots.
(iv) Medicines: Medicines will be discovered and manufactured more efficiently by AIs and, perhaps in the near future, be compounded at home with the aid of a 3D printing machine that assembles your perfect medicines based on the needs and blood chemistries in that very moment.

(4) Housing

Think about what drives high housing costs. Why does a single-family apartment in Manhattan cost $10 million, while the same square footage on the outskirts of St. Louis can be purchased for $100,000? Location. Location. Location. People flock to high-density, desired areas near the jobs and the entertainment. This market demand drives up the price. Housing will demonetize for two reasons: The first reason is because of two key technologies which make the proximity of your home to your job irrelevant, meaning you can live anywhere (specifically, where the real estate is cheap): (1) Autonomous Cars: If your commute time can become time to read, relax, sleep, watch a movie, have a meeting — does it matter if your commute is 90 minutes? (2) Virtual Reality: What happens when your workplace is actually a virtual office where your co-workers are avatars? When you no longer need to commute at all. You wake up, plug into your virtual workspace, and telecommute from the farm or from the island of Lesvos.

The second technology drivers are robotics and 3D printing, which will demonetize the cost of building structures. A number of startups are now exploring how 3D printed structures and buildings can dramatically reduce the cost of construction and the amount of time it takes to build a building.

(5) Energy

Five thousand times more energy hits the surface of the Earth from the Sun in an hour than all humanity uses in a year. Solar is abundant worldwide. Better yet, the poorest countries on Earth are the sunniest.

(6) Education

Education has already been demonetized in many respects, as most of the information you'd learn in school is available online for free. Coursera, Khan Academy, and schools like Harvard, MIT and Stanford have thousands of hours of high-quality instruction online, available to anyone on the planet with an Internet connection.

But this is just the beginning. Soon the best professors in the world will be AIs able to know the exact abilities, needs, desires and knowledge of a student and teach them exactly what they need in the best fashion at the perfect rate. Accordingly, the child of a billionaire or the child of a pauper will have access to the same (best) education delivered by such an AI, effectively for free.

(7) Entertainment

Entertainment (video and gaming) historically required significant purchases of equipment and services. Today, with the advent of music streaming services, YouTube, Netflix and the iPhone App Store, we're seeing an explosion of available selections at the same time that the universe of options rapidly demonetizes. YouTube has over a billion users — almost one-third of all people on the Internet — and every day, people watch hundreds of millions of hours on YouTube and generate billions of views.

The University of Chicago Press
Two hundred and four years ago this month, Captain Nathan Heald undertook a hurried evacuation of ninety-four people from the isolated outpost of Fort Dearborn—near where the Chicago River meets Lake Michigan—to Fort Wayne, hundreds of miles away. Barely started on the journey, the party was attacked by five hundred Potawatomi warriors. The battle became a foundational moment in the creation of the city of Chicago. Our free e-book for August, Rising Up from Indian Country: The Battle of Fort Dearborn and the Birth of Chicago by Ann Durkin Keating, relates the history of this crucial period.
“Keating’s well-researched book rights some misconceptions about the old conflicts, the strategies of the whites and Indians to keep their land, and how early Chicago came to exist.”—Publishers Weekly
We have many more books about Chicago—its history, architecture, arts, and literature. Get 20% off any of these books or e-books when you use promo codeUCPCHI.
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