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AI could win the next Cold War

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  • Recently, Russian President Vladimir Putin suggested that artificial intelligence may be the way Russia can rebalance the power shift created by the US.
  • This indicates that AI could be the deciding factor in the next cold war, if there is one.
  • While wide use of AI-powered cyberattacks may still be some time away, countries are starting to recognize the important of AI cyber technology.


It is easy to confuse the current geopolitical situation with that of the 1980s. The United States and Russia each accuse the other of interfering in domestic affairs. Russia has annexed territory over U.S. objections, raising concerns about military conflict.

As during the Cold War after World War II, nations are developing and building weapons based on advanced technology. During the Cold War, the weapon of choice was nuclear missiles; today it’s software, whether its used for attacking computer systems or targets in the real world.

Russian rhetoric about the importance of artificial intelligence is picking up – and with good reason: As artificial intelligence software develops, it will be able to make decisions based on more data, and more quickly, than humans can handle. As someone who researches the use of AI for applications as diverse as drones, self-driving vehicles and cybersecurity, I worry that the world may be entering – or perhaps already in – another cold war, fueled by AI. And I’m not alone.

Modern cold war

Just like the the Cold War in the 1940s and 1950s, each side has reason to fear its opponent gaining a technological upper hand. In a recent meeting at the Strategic Missile Academy near Moscow, Russian President Vladmir Putin suggested that AI may be the way Russia can rebalance the power shift created by the U.S. outspending Russia nearly 10-to-1 on defense each year. Russia’s state-sponsored RT media reported AI was “key to Russia beating [the] U.S. in defense.”

It sounds remarkably like the rhetoric of the Cold War, where the United States and the Soviets each built up enough nuclear weapons to kill everyone on Earth many times over. This arms race led to the concept of mutual assured destruction: Neither side could risk engaging in open war without risking its own ruin. Instead, both sides stockpiled weapons and dueled indirectly via smaller armed conflicts and political disputes.

Now, more than 30 years after the end of the Cold War, the U.S. and Russia have decommissioned tens of thousands of nuclear weapons. However, tensions are growing. Any modern-day cold war would include cyberattacks and nuclear powers’ involvement in allies’ conflicts. It’s already happening.

Both countries have expelled the other’s diplomats. Russia has annexed part of Crimea. The Turkey-Syria border war has even been called a “proxy war” between the U.S. and Russia.

Both countries – and many others too – still have nuclear weapons, but their use by a major power is still unthinkable to most. However, recent reports show increased public concern that countries might use them.

A world of cyberconflict

putin russiaCyberweapons, however, particularly those powered by AI, are still considered fair game by both sides.

Russia and Russian-supporting hackers have spied electronically, launched cyberattacksagainst power plants, banks, hospitals and transportation systems – and against U.S. elections. Russian cyberattackers have targeted the Ukraine and U.S. allies Britain and Germany.

The U.S. is certainly capable of responding and may have done so.

Putin has said he views artificial intelligence as “the future, not only for Russia, but for all humankind.” In September 2017, he told students that the nation that “becomes the leader in this sphere will become the ruler of the world.” Putin isn’t saying he’ll hand over the nuclear launch codes to a computer, though science fiction has portrayed computers launching missiles. He is talking about many other uses for AI.

Use of AI for nuclear weapons control

Threats posed by surprise attacks from ship- and submarine-based nuclear weapons and weapons placed near a country’s borders may lead some nations to entrust self-defense tactics – including launching counterattacks – to the rapid decision-making capabilities of an AI system.

In case of an attack, the AI could act more quickly and without the potential hesitation or dissent of a human operator.

A fast, automated response capability could help ensure potential adversaries know a nation is ready and willing to launch, the key to mutual assured destruction‘s effectiveness as a deterrent.

AI control of non-nuclear weapons

pakistan nuclear weaponsAI can also be used to control non-nuclear weapons including unmanned vehicles like drones and cyberweapons. Unmanned vehicles must be able to operate while their communications are impaired – which requires onboard AI control. AI control also prevents a group that’s being targeted from stopping or preventing a drone attack by destroying its control facility, because control is distributed, both physically and electronically.

Cyberweapons may, similarly, need to operate beyond the range of communications. And reacting to them may require such rapid response that the responses would be best launched and controlled by AI systems.

AI-coordinated attacks can launch cyber or real-world weapons almost instantly, making the decision to attack before a human even notices a reason to. AI systems can change targets and techniques faster than humans can comprehend, much less analyze. For instance, an AI system might launch a drone to attack a factory, observe drones responding to defend, and launch a cyberattack on those drones, with no noticeable pause.

The importance of AI development

A country that thinks its adversaries have or will get AI weapons will want to get them too. Wide use of AI-powered cyberattacks may still be some time away.

Countries might agree to a proposed Digital Geneva Convention to limit AI conflict. But that won’t stop AI attacks by independent nationalist groups, militias, criminal organizations, terrorists and others – and countries can back out of treaties. It’s almost certain, therefore, that someone will turn AI into a weapon – and that everyone else will do so too, even if only out of a desire to be prepared to defend themselves.

With Russia embracing AI, other nations that don’t or those that restrict AI development risk becoming unable to compete – economically or militarily – with countries wielding developed AIs. Advanced AIs can create advantage for a nation’s businesses, not just its military, and those without AI may be severely disadvantaged. Perhaps most importantly, though, having sophisticated AIs in many countries could provide a deterrent against attacks, as happened with nuclear weapons during the Cold War.

This article was originally published on The Conversation. Read the original article.

SEE ALSO: Here are the most common uses of AI on your smartphone today

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17 of the coolest things your Google Home can do (GOOG, GOOGL)

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google home

Since last October, many millions of people have purchased a Google Home device. 

Google sells three Home devices right now: The $50 Google Home Mini, the $130 Google Home, and the $400 Google Home Max, all of which have Google's artificially-intelligent Assistant built in. 

Last month, Google revealed that it had sold more than one Home smart speaker device every second since October. According to our own calculations, that means Google sold at least 6.8 million Home devices during the holiday season.

Now that millions of people own Google Home devices for the first time, it helps to know what you can actually do with them. Some features are obvious — like asking for the weather — but others aren't so obvious.

Here are 17 of the best Google Home features: 

SEE ALSO: Your Amazon Echo can now send text messages for you — here's how to do it

1. Play white noise while you fall asleep.

I prefer rain sounds to standard white noise, so I usually say "Hey Google, play the sound of rain." The device obliges with a steady downpour. 

The sound usually lasts until I fall asleep, but if you want to be sure it turns off at a certain point, you can also set a sleep timer. 



2. Broadcast something to every Google Home device in your house.

If you have more than one Google Home device in your home, you can broadcast to every single one simultaneously, sort of like an intercom. 

If you say, "OK Google, broadcast that it's dinner time," each device will ring a dinner bell. You can also say, "OK Google, broadcast that it's time for school."

The broadcast feature even works when you're not in the house. Saying, "OK Google, broadcast I'm on my way home" will trigger the devices inside your house.



3. Control your smart home.

At this point, Google Assistant can control more than 1,000 smart-home products from more than 100 brands like LG, Whirlpool, GE, and Nest. You can ask your Google Home to dim the lights, change the temperature, turn on a kettle or microwave, or even start your Roomba. 

You can check out a full list of compatible products over on Google's blog.



See the rest of the story at Business Insider

Alphabet and Amazon continue to bet on the cloud and AI (GOOGL, AMZN)

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Alphabet and Amazon continued to lean on cloud computing and artificial intelligence (AI) as the chief drivers of revenue growth in Q4 2017.

While Alphabet's revenue grew 24% YoY to reach $32.3 billion in the quarter, $4.7 billion of that came from the segment that houses its cloud business, which was up 38% YoY. 

Amazon’s revenue reached $60.5 billion in Q4, with $5.1 billion, or over 9%, coming from its AWS cloud segment.

Both Alphabet and Amazon continued to center in on their cloud platforms in Q4:

  • The Google Cloud, which includes the Google Cloud Platform and G Suite, remains one of the fastest-growing businesses across Alphabet, and will remain a key strategic focus for the company moving forward. Google is the fastest growing major public cloud provider in the world, according to CEO Sundar Pichai, who said the Google Cloud platform became a $1 billion per quarter business in Q4.
  • Meanwhile, the AWS segment generated $5.1 billion in the quarter, with sales surging 45% YoY. AWS had a $20 billion run rate in revenue in Q4, up from $14 billion in the year-ago quarter, according to CFO Brian Olsavsky. Across the 2017 year, about 10% of Amazon’s revenue came from AWS, and in Q4, AWS operating income accounted for over 60% of Amazon’s overall operating income.

And voice assistants and visual search technology are at the core of both companies' strategic offerings:

  • Google put AI at the center of its new hardware line, and in the coming years, the company hopes to pivot to become an AI-first company, according to Pichai. For instance, the Pixel 2, which is infused with the Google Lens, leverages machine learning to help make it the leader in video rankings by industry standards. And Google Assistant is available on over 400 million devices, such as Android smartphones, iPhones, smart speakers, headphones and TVs.
  • Amazon is positioning Alexa at the heart of the company, as the voice assistant can now control over 4,000 smart devices and be used to make online purchases. Developers are flocking to the Alexa platform — there are now 30,000 skills in the Alexa Skills store. This is likely due to a suite of new tools and developers kits, including the Alexa Mobile Accessory Kit and Alexa Premium Far-Field Voice Development Kit, that Amazon launched to make it easier to build more Alexa-enabled devices.

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THE AI DISRUPTION BUNDLE: The guide to understanding how artificial intelligence is impacting the world (AMZN, AAPL, GOOGL)

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This is a preview of a research report bundle from BI Intelligence, Business Insider's premium research service. To learn more about BI Intelligence, click here.

Artificial intelligence (AI) isn't a part of the future of technology. AI is the future of technology.

Elon Musk and Mark Zuckerberg have even publicly debated whether or not that will turn out to be a good thing.

Voice assistants like Apple's Siri and Amazon's Alexa have become more and more prominent in our lives, and that will only increase as they learn more skills.

These voice assistants are set to explode as more devices powered by AI enter the market. Most of the major technology players have some sort of smart home hub, usually in the form of a smart speaker. These speakers, like the Amazon Echo or Apple HomePod, are capable of communicating with a majority of WiFi-enabled devices throughout the home.

While AI is having an enormous impact on individuals and the smart home, perhaps its largest impact can be felt in the e-commerce space. In the increasingly cluttered e-commerce space, personalization is one of the key differentiators retailers can turn towards to stand out to consumers. In fact, retailers that have implemented personalization strategies see sales gains of 6-10%, at a rate two to three times faster than other retailers, according to a report by Boston Consulting Group.

This can be accomplished by leveraging machine learning technology to sift through customer data to present the relevant information in front of that consumer as soon as they hit the page.

With hundreds of hours of research condensed into three in-depth reports, BI Intelligence is here to help get you caught up on what you need to know on how AI is disrupting your business or your life.

Below you can find more details on the three reports that make up the AI Disruption Bundle, including proprietary insights from the 16,000-member BI Insiders Panel:

AI in E-Commerce Report

ai ecommerce

One of retailers' top priorities is to figure out how to gain an edge over Amazon. To do this, many retailers are attempting to differentiate themselves by creating highly curated experiences that combine the personal feel of in-store shopping with the convenience of online portals.

These personalized online experiences are powered by artificial intelligence (AI). This is the technology that enables e-commerce websites to recommend products uniquely suited to shoppers, and enables people to search for products using conversational language, or just images, as though they were interacting with a person.

Using AI to personalize the customer journey could be a huge value-add to retailers. Retailers that have implemented personalization strategies see sales gains of 6-10%, a rate two to three times faster than other retailers, according to a report by Boston Consulting Group (BCG). It could also boost profitability rates 59% in the wholesale and retail industries by 2035, according to Accenture.

This report illustrates the various applications of AI in retail and use case studies to show how this technology has benefited retailers. It assesses the challenges that retailers may face as they implement AI, specifically focusing on technical and organizational challenges. Finally, the report weighs the pros and cons of strategies retailers can take to successfully execute AI technologies in their organization.

The Smart Speaker Report

smart speaker report

Smart speakers — Amazon's Echo, for example — are the latest device category poised to take a chunk of our increasingly digital lives. These devices are made primarily for the home and execute a user's voice commands via an integrated digital assistant. These digital assistants can play music, answer questions, and control other devices within a user's home, among other things.

The central question for this new product category is not when they will take off, but which devices will rise to the top. To answer this question, BI Intelligence surveyed our leading-edge consumer panel, gathering exclusive data on Amazon's recently released Echo Show and Echo Look, as well as Apple's HomePod.

This report, which leverages BI Intelligence's proprietary data, analyzes the market potential of the Echo Look, Echo Show, and HomePod. Using exclusive survey data, we evaluate each device's potential for adoption based on four criteria: awareness, excitement, usefulness, and purchase intent. And we draw some inferences from our data about the direction the smart speaker market could take from here.

The Voice Assistant Landscape Report

Voice assistant landscapeAdvancements in a bevy of industries are helping intelligent digital voice assistants like Apple's Siri and Amazon's Alexa become more sophisticated and useful pieces of technology.

Advances in artificial intelligence (AI) are allowing them to accurately understand more information, while upgrades to mobile networks are facilitating quick transfers of data to robust clouds, enabling fast response times. In addition, the swell of internet connected devices like smart thermostats and speakers is giving voice assistants more utility in a connected consumer's life.

Increasingly sophisticated voice assistants and the growing potential use cases they can assist in are driving consumers to adopt them in greater droves — 65% of US smartphone owners were employing voice assistants in 2015, up significantly from 30% just two years prior. Consumers are also eagerly adopting speaker-based voice assistants, with shipments of Google Home and Amazon Echo speakers expected to climb more than threefold to 24.5 million in 2017, according to a report from VoiceLabs.

However, there are still numerous barriers that need to be overcome before this product platform will see mass adoption, as both technological challenges and societal hurdles persist.

This report explains what's driving the recent upsurge in adoption of digital voice assistants. It explores the recent technology advancements that have catalyzed this growth, while presenting the technological shortcomings preventing voice assistants from hitting their true potential. This report also examines the voice assistant landscape, and discusses the leading voice assistants and the devices through which consumers interact with them. Finally, it identifies the major barriers to mass adoption, and the impact voice assistants could have in numerous industries once they cross that threshold.

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Twitter and PornHub are banning pornographic photos and videos made with artificial intelligence (TWTR)

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Daisy Ridley

  • Some people are taking advantage of artificial intelligence-powered software to superimpose celebrities' faces on top of porn stars to create fake pornographic materials.
  • The AI-generated clips have been called "deepfakes," and they use machine learning to mimic facial expressions and make videos look real.
  • Major online sharing platforms like Twitter and PornHub are identifying, removing, and banning the content, while Reddit is currently holding out.


"Deepfakes," the latest trend in online pornography is about to take a major hit as Twitter and PornHub are banning its distribution on their platforms from today.

For those out of the loop, deepfakes are porn video clips which feature animated faces of celebrities superimposed on performers’ heads with the magic of artificial intelligence (AI): creators train a software system by feeding it footage of a Hollywood actor or other prominent figure, and the app spits out a video that appears to depict celebrities in a porn production.

PornHub told Motherboard on Tuesday that it’s banning deepfakes as it considers them to be nonconsensual and won’t allow such videos on its site:

"We do not tolerate any nonconsensual content on the site and we remove all said content as soon as we are made aware of it. Nonconsensual content directly violates our TOS [terms of service] and consists of content such as revenge porn, deepfakes or anything published without a person’s consent or permission."

Twitter's also blowing the whistle on deepfakes: It said it will suspend accounts that are identified as the original poster of such content, as well as accounts dedicated to distributing deepfakes.

Chat service Discord and GIF hosting platform Gfycat are also banning these AI-generated clips.

One of the largest sites holding out is Reddit, which is where the trend seems to have taken root last December. The r/deepfakes subreddit is still going strong, with more than 90,000 subscribers at the time of writing.

The community’s rules dissuade people from swapping faces of minors and non-celebrities with those of porn performers in their submissions, and also includes a post linking to a desktop tool for creating deepfakes. It also hosts this thought-provoking discussion:

deepfakes conversation

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AI IN BANKING AND PAYMENTS: How artificial intelligence is cutting costs, building loyalty, and enhancing security across financial services

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This is a preview of a research report from BI Intelligence, Business Insider's premium research service. To learn more about BI Intelligence, click here

Artificial intelligence (AI) is one of the most commonly referenced terms by financial institutions (FIs) and payments firms when describing their vision for the future of financial services. 

AI can be applied in almost every area of financial services, but the combination of its potential and complexity has made AI a buzzword, and led to its inclusion in many descriptions of new software, solutions, and systems.

This report from BI Intelligence, Business Insider's premium research service, cuts through the hype to offer an overview of different types of AI, and where they have potential applications within banking and payments. It also emphasizes which applications are most mature, provides recommendations of how FIs should approach using the technology, and offers examples of where FIs and payments firms are already leveraging AI. The report draws on executive interviews BI Intelligence conducted with leading financial services providers, such as Bank of America, Capital One, and Mastercard, as well as top AI vendors like Feedzai, Expert System, and Kasisto.

Here are some of the key takeaways:

  • AI, or technologies that simulate human intelligence, is a trending topic in banking and payments circles. It comes in many different forms, and is lauded by many CEOs, CTOs, and strategy teams as their saving grace in a rapidly changing financial ecosystem.
  • Banks are using AI on the front end to secure customer identities, mimic bank employees, deepen digital interactions, and engage customers across channels.
  • Banks are also using AI on the back end to aid employees, automate processes, and preempt problems.
  • In payments, AI is being used in fraud prevention and detection, anti-money laundering (AML), and to grow conversational payments volume.

 In full, the report:

  • Offers an overview of different types of AI and their applications in payments and banking. 
  • Highlights which of these applications are most mature.
  • Offers examples where FIs and payments firms are already using the technology. 
  • Provides descriptions of vendors of different AI-based solutions that FIs may want to consider using.
  • Gives recommendations of how FIs and payments firms should approach using the technology.

Interested in getting the full report? Here are two ways to access it:

  1. Subscribe to an All-Access pass to BI Intelligence and gain immediate access to this report and over 100 other expertly researched reports. As an added bonus, you'll also gain access to all future reports and daily newsletters to ensure you stay ahead of the curve and benefit personally and professionally. >> Learn More Now
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How a startup with no VC funding landed $140 million in Chinese deals and partnered with Tencent

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Dan Vahdat CEO Medopad

  • British healthcare startup Medopad has done something that's notoriously difficult for a foreign startup and struck $140 million in deals with China and a partnership with local giant Tencent.
  • The company tracks patients with long-term illnesses to help them manage their conditions.
  • It has deals with London hospitals including the Royal Free, Guy's and St. Thomas', and St. Bartholomew's.
  • CEO Dan Vahdat explained to Business Insider how a small startup without venture capital backing tackled China.


It isn't easy for foreign tech firms to establish themselves in China. Uber didn't manage to do it successfully, while Google and eBay have both struggled to expand into the market. The reasons vary from local competition, to cultural missteps, to having to deal with a pro-censorship government.

British startup Medopad has not only been striking deals in China for the last four years, it's just bagged a partnership deal with local internet giant Tencent, and $28 million (£20.2 million) in Series A funding from Hong Kong-listed NWS Holdings. It plans to raise $120 million (£86.4 million) in total for the round this year. A normal Series A cheque in the UK generally maxes out at £10 million.

How did the firm do it?

Medopad is a healthcare startup that tracks patients with complex diseases

Medopad works with hospitals and pharmaceutical firms, using mobile software to track patients afflicted with long-term diseases, such as cancer, or pulmonary hypertension. Such a patient isn't in hospital permanently, but might be in and out for tests every six months, even if they aren't showing any symptoms.

Patients feed data into Medopad's software about their symptoms, and the app feeds that information back to the patient's care team, who might advise skipping the next checkup if they seem well enough for the time being. The software also can tell patients when to take their medication. CEO and cofounder Dan Vahdat described the service as a "satnav" for chronic illnesses.

Another aspect of Medopad's business, since it tracks large "cohorts" of patients suffering the same disease, is tracking and analytics, with patient consent.

The next phase of the company, Vahdat said, would involve using machine learning to try and predict some aspects of a patient's condition, such as when they may deteriorate. "When you get patients who have complications, that's already expensive. But if you can avoid those [complications], that's good news," he said.

Medopad's business might sound similar to Google-owned DeepMind, whose healthcare arm processes huge amounts of hospital data to train its artificial intelligence software to recognise diseases. But Vahdat said Medopad doesn't ever touch hospital data, but focuses on "real-time data, generated by the patient." The patient also gives their direct consent, he said.

Medopad struck into China early

Vahdat and his team expanded into China only two years after founding Medopad. It struck early partnerships with London hospitals the Royal Free and St Bartholomew's. Going through the NHS procurement process, he said, had made his company more competitive internationally.

"We are aiming for scale rather than making a big amount of money from few clients," he said. "We are lucky to be part of the NHS ecosystem. We had to be very flexible, in terms of [the illnesses we tracked], but also conscious of cost because it was the NHS. That gave us lots of leverage internationally, and put us in a unique position to be competitive."

Medopad has no venture capital funding. Its recent Series A round was led by NWS Holdings, a construction group and part of property giant New World Development. Earlier backing came from pharmaceutical firm Bayer, UBS and Intel, according to Bloomberg.

"That's intentional," said Vahdat. "We wanted to be very committed and build a patient-centric company. If we worked with VCs — though they are amazing — they have targets for returns to make to their LPs, they have five year or 10 year maximum. We didn't want to bound to doing an exit, we wanted to be more relaxed."

While the US was the obvious international market to target, with its cultural similarities to the UK, Vahdat and his team decided instead to explore China. "We thought the sooner we go there, the more mistakes we'll make, and the faster we will learn," he said. "If you want to be the major player in the world, you can't ignore China."

Medopad had lots of early help from the government's trade department, with officials brokering connections and partnerships. But the startup's early days in China were characterised by "a bunch of mistakes," Vahdat said. "A bunch of it was cultural stuff we didn't understand."

One example was getting used to offering freebies. "In one deal we signed, we ended up doing a demo account for the department of a hospital," he said. "We weren't getting paid. This isn't the normal way we would have operated, but if you don't do that, you don't get to the next phase. We were initially hesitant of being open — we had no commitment from them."

The freebie allowed the hospital to fully explore Medopad's technology, he added. "There were a couple of times we had the opportunity to do the same thing, and we didn't. That was a mistake."

Another lesson was avoiding sketchy partners. In one instance, Medopad almost signed a deal through a local middleman where again it would be offering its services for free. Unbeknownst to Medopad, the middleman got paid, even though the deal was never finalised. "They told us it was a free thing! And then they got paid," he said. "I lost half my hair in China."

The early lessons culminated in Medopad accompanying Theresa May to China — and landing a deal with Tencent

Vahdat accompanied UK Prime Minister Theresa May on her trade trip to China at the end of January, alongside big firms such as HSBC and BT.

Dan Vahdat Theresa May

At the end of the trip, Medopad announced it had $140 million in deals in China, and a partnership with Tencent.

The deals comprise hospital partnerships, and a project with Johnson & Johnson China. After meeting investors from NWS Holdings at a conference, the company also secured the first tranche of its Series A round, which will initially be used for new hires. The full round of $120 million (£86.4 million) will go towards international expansion and, potentially, acquisitions.

Vahdat said the firm's continued push in China meant Medopad had been talking to Tencent for "a long time."

"Tencent is a quiet company, they like to make less fuss before they have something solid. Culturally we are quite a good fit," he said.

Neither firm is going into exact details of the partnership. But Vahdat said the Tencent partnership can help the firm lobby in China. Tencent also has a medical arm, and it sounds like Medopad will begin tracking Chinese patients for a chronic disease.

"As soon as you announce you're working on some disease, you create expectations," Vahdat said. "We've decided to stay quiet on the details of what we're doing together, because we feel responsible. The idea is that we're....detecting things earlier, helping conditions, and helping care team providers to come up with a better diagnosis."

Artificial intelligence will form a major part of the venture too, Vahdat said.

Asked how Vahdat felt about the ethics of using artificial intelligence to track Chinese patients, given the possibilities of spying and surveillance, he said patients would still have to give their permission.

"We treat patients globally to the same standard, with the same consent," he said. "We want solutions that work everywhere."

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The UK's Financial Conduct Authority doubles down on algorithmic trading

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The UK's Financial Conduct Authority (FCA) on Monday published its report on the supervision of algorithmic trading, which is intended to illustrate best practices and give guidance to firms considering implementing AI to automate trading operations.

The report is meant to help trading firms comply with the Second Markets in Financial Instruments Directive (MiFID II), an expansive EU directive implemented last month that introduces stringent new rules for capital markets participants, including around the use of algorithmic, also known as high-speed, trading. MiFID II defines algorithmic trading as a computer algorithm making decisions on when to initiate orders, and where there is little or no human intervention.

The focus areas of the report hint at concerns the FCA harbors about AI use in capital markets. The regulator placed particular emphasis on humans being able to intervene in an algorithm if something goes wrong, and ensuring the technology doesn’t start behaving in a way unintended by its creators. Additionally, it stressed the importance of senior management fully understanding the technology their firm is using, and being involved at every stage of its development and deployment.

The last point is likely tied to the FCA's senior management review of 2017, which concluded, among other things, that senior managers cannot use ignorance of the technology their firms leverage to claim immunity if a problem occurs. As ever-more use cases for algorithms and AI emerge in capital markets, regulators — while recognizing the benefits such automation can bring — also appear anxious about the technology evolving beyond its creators’ control and understanding.

Algorithmic trading isn't new, but it's now raising novel challenges for firms and regulators alike. High-speed trading has been a feature of capital markets for several decades, but the fact remains that AI, the technology that usually underpins such software, is now becoming rapidly more sophisticated and capable of making more nuanced decisions.

Lately, there have been several cases in which the algorithms implemented by trading companies seemed to start acting in ways unforeseen by their developers, leading to mishaps and flash crashes, notably the pound's flash crash following the Brexit referendum in 2016. As such, as the technology itself threatens ot take on a life of its own, in conjunction with many firms' lack of technical knowledge and proliferating use cases, regulators are right to want to keep an eye on such markets to mitigate risks.

BI Intelligence, Business Insider's premium research service, has written a detailed report on AI in banking and payments that cuts through the hype to offer an overview of different types of AI, and where they have potential applications within the finance industry. In full, this report:

  • Offers an overview of different types of AI and their applications in payments and banking. 
  • Highlights which of these applications are most mature.
  • Offers examples where FIs and payments firms are already using the technology. 
  • Provides descriptions of vendors of different AI-based solutions that FIs may want to consider using.
  • Gives recommendations of how FIs and payments firms should approach using the technology.

Interested in getting the full report? Here are two ways to access it:

  1. Subscribe to an All-Access pass to BI Intelligence and gain immediate access to this report and over 100 other expertly researched reports. As an added bonus, you'll also gain access to all future reports and daily newsletters to ensure you stay ahead of the curve and benefit personally and professionally. >> Learn More Now
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I've owned an Amazon Echo for over two years now — here are my 19 favorite features (AMZN)

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amazon echoI activated my Amazon Echo for the first time over two years ago, in December 2015. It's since become one of my favorite tech gadgets ever.

Amazon's family of Echo speakers are some of the most popular gifts right now, so many people are activating their Echo units for the first time.

Here's what you need to know: These speakers, which can respond to either "Alexa,""Amazon," or even "Computer" (for those "Star Trek" fans out there), are extremely quick to respond, and understand your commands far better than any other device I've used.

Thanks to its excellent audio system, with seven microphones for listening and a 360º omni-directional audio grille for speaking, Amazon Echo works exceedingly well wherever I am in my home. I can hear it — and it can hear me — almost perfectly.

Amazon Echo has completely transformed the way I live in my apartment. There's just so much you can do with Echo. Here's a look at my favorite features:

SEE ALSO: Apple's 2016 report card: Grading all the new hardware Apple released this year

"Alexa, what time is it?"

Honestly, the best use cases for Amazon Echo are the simplest ones. With the Echo, I don't need to bother searching for my phone just to get the time — you can ask for the time from anywhere in your house and get the answer immediately. It's a small thing, but it totally makes a difference when you're rushing in the morning.



"Alexa, how's the weather outside today?"

Again, it's a simple task, but it's way quicker and better than pulling out your phone and opening your favorite weather app. Amazon Echo will not only tell you the current temperature, but also the expected high and low temperatures throughout the day, and other conditions such as clouds and rain.



"Alexa, set a timer for 10 minutes."

Amazon Echo is the perfect cooking or baking companion because it's totally hands-free. When the timer's up, a radar-like ping will sound until you say "Alexa, stop."



See the rest of the story at Business Insider

BlackRock is using robots to better predict the future of the economy

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robot artificial intelligence AI

  • BlackRock's Macro GPS tool is designed as an improvement to traditional economic indicators, and is intended to give investors a more forward-looking outlook.
  • The firm is using the big data quantitative insights provided by its Systematic Active Equity team to further hone the GPS indicator.


Economic data can be a double-edged sword for investors.

Sure, it serves an valuable input for traders deciding where to put their money, but it's also largely backwards-looking. So while it's undoubtedly useful, it's often up to investors to calibrate their own economic outlook.

BlackRock realizes this, and is here to help.

The $6.3 trillion investment behemoth is offering a proprietary indicator called the BlackRock Macro GPS, which is designed to swing economic forecasts forward and provide more actionable information for investors. Officially, the tool's purpose is to "show where 12-month forward consensus gross domestic product (GDP) forecasts may stand in three months’ time."

In other words, it's trying to give investors a heads up about any potential economic shift.

And it's an improvement on the old model in multiple ways, including the number of data sources from which it pulls. BlackRock specifically looks at indicators like realized activity, employment, sentiment, and survey data, among others. In the end, the GPS is looking to build on models developed by academics, central banks, and other financial institutions.

However, perhaps the most novel attribute of the GPS is how it factors in so-called "big data" findings. Calling on its Systematic Active Equity team — which uses quantitative techniques to process massive amounts of data — the GPS squad is able to overlay hugely valuable analysis on top of its core economic findings.

"We often found that we were getting conflicting signals,"Jean Boivin, PhD, head of economic and markets research at the BlackRock Investment Institute, told Business Insider by phone. "It wasn’t clear how much weight we should’ve been assigning to the more traditional sell-side indicators, relative to our own proprietary big data signals. That led us to try a more systematic way of marrying these inputs into one indicator."

So what kind of big data capabilities does BlackRock's Macro GPS have? For one, it mines the transcripts of corporate manager conference calls to assess the tense being used. Boivin notes that they like to look at the ratio of future tense to past in order to predict what kind of investing companies will do in the future.

The GPS also factors in elements like satellite images and traffic patterns. For example, Boivin says the Systematic Active Equity team is currently working to use shadow measurements for buildings to analyze the speed and progress of construction activity in China. While not officially part of the GPS yet, the initiative shows the ambition and scope of what the team is doing.

"It's something that's getting more and more traction," Boivin said of the GPS. "We’re not aware of anything that marries all of this data in the way we are."

As of right now, BlackRock offers the GPS for the US, UK, Germany, France, Italy, Spain, Japan, and Australia. But it doesn't plan to stop there. The firm wants to eventually enter emerging markets like China — perhaps using the shadow-measuring technique. It's all part of the firm's plan to give traders better and more actionable economic data.

"We have our sights set on the EM bloc, which is the next step," said Boivin. "But our primary focus right now is becoming an even more innovative source of data."

SEE ALSO: Morgan Stanley's US equity chief explains why the recent meltdown signaled the 'final stage' of the bull market

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NOW WATCH: Microsoft President Brad Smith says the US shouldn't get 'too isolationist'

AI IN BANKING AND PAYMENTS: How artificial intelligence is cutting costs, building loyalty, and enhancing security across financial services

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maturity of AI solutions

This is a preview of a research report from BI Intelligence, Business Insider's premium research service. To learn more about BI Intelligence, click here

Artificial intelligence (AI) is one of the most commonly referenced terms by financial institutions (FIs) and payments firms when describing their vision for the future of financial services. 

AI can be applied in almost every area of financial services, but the combination of its potential and complexity has made AI a buzzword, and led to its inclusion in many descriptions of new software, solutions, and systems.

This report from BI Intelligence, Business Insider's premium research service, cuts through the hype to offer an overview of different types of AI, and where they have potential applications within banking and payments. It also emphasizes which applications are most mature, provides recommendations of how FIs should approach using the technology, and offers examples of where FIs and payments firms are already leveraging AI. The report draws on executive interviews BI Intelligence conducted with leading financial services providers, such as Bank of America, Capital One, and Mastercard, as well as top AI vendors like Feedzai, Expert System, and Kasisto.

Here are some of the key takeaways:

  • AI, or technologies that simulate human intelligence, is a trending topic in banking and payments circles. It comes in many different forms, and is lauded by many CEOs, CTOs, and strategy teams as their saving grace in a rapidly changing financial ecosystem.
  • Banks are using AI on the front end to secure customer identities, mimic bank employees, deepen digital interactions, and engage customers across channels.
  • Banks are also using AI on the back end to aid employees, automate processes, and preempt problems.
  • In payments, AI is being used in fraud prevention and detection, anti-money laundering (AML), and to grow conversational payments volume.

 In full, the report:

  • Offers an overview of different types of AI and their applications in payments and banking. 
  • Highlights which of these applications are most mature.
  • Offers examples where FIs and payments firms are already using the technology. 
  • Provides descriptions of vendors of different AI-based solutions that FIs may want to consider using.
  • Gives recommendations of how FIs and payments firms should approach using the technology.

Interested in getting the full report? Here are two ways to access it:

  1. Subscribe to an All-Access pass to BI Intelligence and gain immediate access to this report and over 100 other expertly researched reports. As an added bonus, you'll also gain access to all future reports and daily newsletters to ensure you stay ahead of the curve and benefit personally and professionally. >> Learn More Now
  2. Purchase & download the full report from our research store. >> Purchase & Download Now

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Google has developed a way to predict your risk of a heart attack just by scanning your eye

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eye close up

  • A new system created by Verily and Google AI researchers can use photographs of the retina to predict risk factors for cardiovascular disease.
  • The system works about as well as presently used predictive methods and is far less invasive.
  • In a recent study, researchers could see what the artificial intelligence software was paying attention to as it studied the eye.


Your eyes might be the perfect windows into your heart.

At least, they're windows that Google-created artificial intelligence software can use to calculate your risk factors for heart disease.

According to a study recently published in the Nature Biomedical Engineering journal, an AI algorithm created by Google AI and Verily Life Sciences (an Alphabet subsidiary that spun off from Google) can predict whether a patient is likely to suffer a major cardiovascular event like a heart attack or stroke within five years, based on a photo of their retina.

So far, the predictions work about as well as presently accepted methods that are more invasive, according to the study.

Learning to predict heart disease

The fact that disease can be spotted in the retina isn't a surprise. Doctors often spot medical conditions including diabetes, extreme high blood pressure, high cholesterol, and some cancers during eye exams.

To mimic that ability, the Verily and Google researchers trained AI software to identify cardiovascular risks by having the system analyze retina photos and health data from 284,335 patients. Specifically, it looked at retinal fundus images — photos that show blood vessels in the eye.

retina cardiovascular disease ai prediction

Known risk factors for cardiovascular disease include age, blood pressure, and gender, among other things. Based on an eye scan, the algorithm was able to predict a person's age to within 3.26 years, smoking status with 71% accuracy, and blood pressure within 11 units of the upper number reported in their measurement.

Because the algorithm was so effective at assessing these factors, the researchers decided to see how well it could predict actual strokes and heart attacks.

They used data from a set of 150 patients that had suffered major cardiovascular events within five years of their eye scan. (That data set included 12,026 people, but only several hundred experienced a major cardiac health event, with clinical data available for 150 of those patients.) When the researchers presented the algorithm with two retina images and asked it to predict which one would suffer a major cardiac event or stroke, it predicted the correct scan 70% of the time.

By comparison, the European SCORE risk calculator, which requires a blood test, is currently used to predict risk for cardiovascular disease. That calculator predicted the correct scan in 72% of the cases from the same dataset, which is not much better than the AI performance — and the AI did just as well when it had access to demographic information like age, gender, and BMI.

A powerful demonstration

Vessels

Cardiovascular disease is the leading cause of death in the world. Because of that, the idea that a routine retina scan could provide an early warning of heightened risk — hopefully in time to change behavior — is exciting.

The new study suggests there is more information available in the retina than scientists previously realized. The AI system is particularly exciting because it takes medical images that might already exist and gets new and potentially important data from them. And that information can be gathered and used without invasive tests.

Researchers involved in the study were also able to track which factors the algorithm was relying on to make its predictions, since the system created heat-maps of areas it focused on. In this case, the researchers know the system was paying particular attention to blood vessels to calculate blood pressure, for example.

Such information isn't always available in machine learning processes. But in this case, it can help scientists better understand the wealth of data that's available in retina images in the first place.

Overall, this new study highlights the ways that deep learning is transforming how scientists study the body. Machine learning can even take scans that we already have and use them to generate a far more complete picture of human health.

Still, as promising as these results seem, they are preliminary, according to a blog post by Dr. Michael McConnell, the Head of Cardiovascular Health Innovations at Verily.

"[M]ore work must be done to develop and validate these findings on larger patient cohorts before this can arrive in a clinical setting," McConnell wrote.

SEE ALSO: A woman found 14 worms hiding in her eye after it got red and scratchy — showing that a new species is capable of infecting humans

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NOW WATCH: Why dog breeds look so different but cats don't

BlackRock further strengthens its AI efforts

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Estimated AI Revenue

This story was delivered to BI Intelligence "Fintech Briefing" subscribers. To learn more and subscribe, please click here.

AI is drumming up a lot of interest in the wealth management industry, as it promises to transform business models to make them more efficient.

In the latest evidence of this, BlackRock, the world’s largest asset manager, is setting up a new AI lab, dubbed BlackRock Lab for Artificial Intelligence, and an internal Data Science Core unit, as part of the company’s Tech 2020 plan, according to an internal memo seen by the Financial Times.

Every part of BlackRock's business is already augmented by AI, and the lab will aim to strengthen its efforts to bring the benefits of AI to its clients, according to Rob Goldstein, BlackRock’s chief operating officer.

Here is why BlackRock's AI lab will likely be good for the company:

  • BlackRock has a demonstrated track record of leveraging AI. BlackRock uses AI to get more insight into the growth of target companies, which likely makes it easier to pick suitable firms for a portfolio. For instance, it uses text analysis to go through transcripts of earning calls, helping it to gauge how a management team feels about the growth prospects of the company. Additionally, it looks at geolocation data from smartphones to get more insight on which retailers are popular.
  • The new AI lab will help BlackRock to further adopt the technology in its business. The lab will allow BlackRock to evaluate and explore new use cases of AI throughout its business, helping it to become more cost- and time-efficient. This is especially true in light of the company's already extensive experience with the technology. In the future, and with more insight into the technology, AI could potentially be used to augment the work of human employees throughout the business.

While BlackRock has been a forerunner in adopting AI, other legacy players are lagging behind.BlackRock is known for its proactive approach in implementing new technologies, including AI. This strategy allows it to make its operational processes more efficient and thereby more successful. Other incumbents would be wise to follow suit and further explore the use AI for their businesses, as this can potentially cut costs or open new streams of revenue for a company. With increasing competition from digital wealth manager startups, it seems likely that more legacy players will start to look into the technology to avoid falling behind.

BI Intelligence, Business Insider's premium research service, has written a detailed report on AI in banking and payments that cuts through the hype to offer an overview of different types of AI, and where they have potential applications within the finance industry. In full, this report:

  • Offers an overview of different types of AI and their applications in payments and banking. 
  • Highlights which of these applications are most mature.
  • Offers examples where FIs and payments firms are already using the technology. 
  • Provides descriptions of vendors of different AI-based solutions that FIs may want to consider using.
  • Gives recommendations of how FIs and payments firms should approach using the technology.

Interested in getting the full report? Here are two ways to access it:

  1. Subscribe to an All-Access pass to BI Intelligence and gain immediate access to this report and over 100 other expertly researched reports. As an added bonus, you'll also gain access to all future reports and daily newsletters to ensure you stay ahead of the curve and benefit personally and professionally. >> Learn More Now
  2. Purchase & download the full report from our research store. >> Purchase & Download Now

Join the conversation about this story »

DIGITAL HEALTH BRIEFING: Google AI can predict heart attacks from eye scans — Lyft, Hitch Health partner for medical transport — Nokia executive sees no path for Digital Health

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Welcome to Digital Health Briefing, a new email providing the latest news, data, and insight on how digital technology is disrupting the healthcare ecosystem, produced by Business Insider Intelligence.

Sign up and receive Digital Health Briefing free to your inbox.

Have feedback? We'd like to hear from you. Write me at: lbeaver@businessinsider.com 


GOOGLE'S AI HELPS TO PREDICT CARDIOVASCULAR CONDITIONS BY ANALYZING EYE SCANS: Google and Verily — Google-parent Alphabet's life sciences unit — are exploring new ways that artificial intelligence (AI) can be used to identify patients' risk of suffering from a cardiovascular event, such as a heart attack or stroke, according to a newly published study by the two Alphabet subsidiaries. The report describes how Google's AI analyzes noninvasive retinal fundus scans — scans of the back of the eye — to deduce the individual's age, sex, blood pressure, and whether they're a smoker. That data can then be used to predict that individual's risk of suffering a cardiovascular event with comparable accuracy to current leading methods.

Why is this important?

The technology could potentially make it faster, cheaper, and simpler for healthcare providers to accurately predict a patient’s cardiovascular risk, which could save millions of lives and billions of dollars. Google’s algorithm showed it could identify the likelihood that a patient would suffer from a cardiovascular event in the next five years with 70% accuracy. This was only slightly lower than the 72% accuracy seen in commonly-used, more invasive, methods, such as SCORE, which requires a blood test to be taken and analyzed. With Google planning to further develop and test its algorithm on larger and more comprehensive datasets, it's reasonable to assume that the accuracy of this test will improve over time. Eventually, the technology could help providers identify more individuals who are at risk of developing cardiovascular conditions — cardiovascular disease not only affects over 100 million people in the US, it is also the costliest disease in the nation, with associated costs reaching $555 billion in 2016, according to American Heart Association. 

How does this impact the healthcare industry?

Google's study shows how AI-technology can be used to create new diagnostic tests to predict medical conditions by using data from existing tools. For example, Google's technology can be used to show what parts of the retinal fundus image actually lead to the most successful predictions, essentially giving researchers new information into what causes cardiovascular disease. This information could lead to significant advances in how doctors determine who may be at risk of a cardiovascular condition and how to best treat them to lower their risk just by analyzing their history. As more companies prove how AI can be used to transform how the healthcare industry diagnoses and treats major conditions the technology will only further move towards becoming a part of a new standard of care for patients.

HITCH HEALTH AND LYFT PARTNER TO HELP GET PATIENTS TO THEIR APPOINTMENTS: Hitch Health, the Minnesota-based healthcare technology company, announced the launch of its partnership with ridesharing company Lyft to give patients non-emergency medical transportation, according to HIT Consultant. Hitch Health's proprietary technology securely connects to a healthcare provider's electronic health record (EHR) to identify the patients who would be most likely to benefit from a ride to and from a clinic, hospital, or doctor's office. These patients are then sent an SMS text with a free ride offer via Lyft for their next visit. If the patient accepts the offer, Hitch Health will send another notification the morning of their appointment. Patients aren't required to have a smartphone, an app, or a credit card, which can be barriers in underserved populations. Partnerships between ridesharing services and healthcare systems are becoming increasingly popular, as healthcare systems realize the benefits of offering non-emergency medical transportation to patients to reduce the number of missed appointments. About 3.6 million patients miss medical appointments each year because of transportation barriers, according to the National Academy of Sciences. These missed appointments can lead to poor health outcomes, increased emergency department visits and hospitalizations, and lost revenue for health systems — as much as $150 billion in the US every year, according to Health Management Technology. 

NOKIA EXECUTIVE CONFIRMS COMPANYS DIGITAL HEALTH WOES: Nokia chief strategy officer Kathrin Buvac sees no path forward for its digital health business after the segment “struggled to scale and meet its growth expectations,“ according to an internal memo sent by Buvac to Nokia employees that was seen by The Verge. The memo was sent the same day the company announced a strategic review of its digital health business alongside preparations to lay off as many as 425 employees in Finland. The email sheds further light on the dire state of Nokia’s Digital Health business — a part of Nokia Technologies — that includes its line of wearables and connected thermometers and scales, and its health app.

The memo doesn’t necessarily mean Nokia will remove itself from the digital health market. The company’s foray into healthcare wearables opened the door to multiple relationships with healthcare companies, and provided Nokia with a “new perspective” on the healthcare space, Buvac said. As we reported last week, if Nokia stays in health care, it’s likely that the company's way forward will be as a business-to-business and licensing company, something it’s found massive success within the telecom and mobile tech market — the company reported around $28 billion in revenue in 2017. This could include offering healthcare-focused IoT and wireless solutions for hospitals and healthcare systems.

bii nokia digital health quarterly revenue

INFLUENZA OUTBREAK DRIVES UPTICK IN US TELEMEDICINE VISITS: Healthcare systems are showing an increasing reliance on telemedicine providers to alleviate emergency rooms during illness outbreaks, according to virtual care delivery service Teladoc. The company announced Tuesday that it has provided more than 300,000 virtual patient visits since mid-January, a record for the company. The spike in patient volume was likely due to a combination of an overburdened health care system further taxed by the start of the flu season, and shows how telehealth solutions can help address staff and bedding shortages in hospitals. Telemedicine services, such as Teladoc, can streamline the treatment process because it connects patients remotely to certified physicians around the US, via phone, video-conferencing, and online, rather than relying on local access to physicians. This allows the company to treat far more patients — the company says it often treats more than 1,000 patients suffering from the flu each day and reported that influenza cases represented nearly one in five visits in January, compared to the 1 in 15 in-person visits reported for the US by Modern Healthcare.

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The top 10 breakthrough technologies and the key players leading the charge, according to MIT Technology Review

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future city Ian Pearson

Every fall, MIT Technology Review's editors get together to begin the months-long process of reviewing their coverage. The goal? To create a list of the top ten technological advances from the last year that will have the greatest longterm global impact on consumers.

While the editors do give key players a shout-out — Google, for example, dominates the list — the purpose of the annual compilation goes further than giving credit to innovating companies.

"This is our attempt to alert our readers: These are the technologies that you really need to or should pay attention to next year, and also going into the next few years," MIT Tech Review's editor David Rotman told Business Insider.

The timeline to commercial use can vary — this year's picks, for example, range from technologies that are currently on the market to ones that are still in the lab and just barely making headlines— but two things have to be certain: The technology must be "fundamentally new," and it needs to make a huge difference in the way we live for years to come. 

Here's the final list of the technologies and the key players making it happen:

SEE ALSO: The life and rise of billionaire investor Peter Thiel, Trump’s biggest Silicon Valley supporter — who might be moving to Los Angeles

3D Metal Printing: New machines are making 3D printing of metal parts practical for the first time.

Key players:Markforged | Desktop Metal | GE

Breakthrough: Now printers can make metal objects quickly and cheaply.

Why it matters: The ability to make large and complex metal objects on demand could transform manufacturing.



Artificial Embryos: Scientists have begun to forge embryos out of stem cells.

Key players: University of Cambridge | University of Michigan | Rockefeller University

Breakthrough: Without using eggs or sperm cells, researchers have made embryo-like structures from stem cells alone, providing a whole new route to creating life.

Why it matters: Artificial embryos will make it easier for researchers to study the mysterious beginnings of a human life, but they’re stoking new bioethical debates.



Sensing City: Alphabet’s Sidewalk Labs plans to create a high-tech district to rethink how we build and run cities.

Key players: Sidewalk Labs | Waterfront Toronto

Breakthrough: A Toronto neighborhood aims to be the first place to successfully integrate cutting-edge urban design with state-of-the-art digital technology.

Why it matters: Smart cities could make urban areas more affordable, livable, and environmentally Friendly.



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Elon Musk is stepping down from the $1 billion AI organization he helped found (TSLA)

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  • Elon Musk is leaving the board of the non-profit organization OpenAI.
  • Musk helped found the group, which examines the safety and societal issues of artificial intelligence technology, and he contributed towards its $1 billion in funding.
  • The entrepreneur, who is outspoken about the potential dangers of AI, is leaving to avoid conflicts of interest with his work at Tesla.


Elon Musk is stepping down from the board of a $1 billion AI organisation he helped create.

On Tuesday, OpenAI announced that the billionaire entrepreneur is exiting his role at the company to avoid potential conflicts of interest with his work at Tesla.

Founded in 2015 with $1 billion in funding, OpenAI is a non-profit organisation focused on research about artificial intelligence technology and on examining its potential social implications and safety risks. It has developed AI capable of playing video games like "Dota 2," and earlier this week co-authored a report looking at how artificial intelligence technology could be abused for malicious purposes, from drone attacks to fraudulent videos.

In a blog post published Tuesday, OpenAI said Musk was leaving its board, but will continue to provide funding and advice. "As Tesla continues to become more focused on AI, this will eliminate a potential future conflict for Elon," the post said. Musk's electric car company is investing in AI technology as it pushes to develop self-driving car technology.

Elon Musk has previously been outspoken about the potential dangers of AI, claiming it presents "vastly more risk than North Korea."

SEE ALSO: These are the sneaky ways apps like Instagram, Facebook, Tinder lure you in and get you 'addicted'

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NOW WATCH: What it's actually like to hear voices in your head

This beautiful $300 security camera can recognize faces and keep track of your kids — and it's backed by some of the biggest names in tech

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Lighthouse camera

Lighthouse had a straightforward goal with its first-ever product: Make a home security camera that's smarter than anything else on the market.  

The result is the Lighthouse camera, which costs $300 and is available to buy starting Thursday. It's an artificially intelligent, internet-connected security camera. It can identify you and your family members, alert you when there are intruders in your home, and understand commands like, "Did the dog walker come today?"

Lighthouse is entering an already-crowded field of smart security cameras. But its built-in AI, along with the backing of prominent tech execs like Andy Rubin and Sebastian Thrun, make the Lighthouse camera an exciting entry. 

Here's how it works:

SEE ALSO: A complete guide to the Amazon Echo family, the smart speakers that will change your home forever

Lighthouse was founded in 2014 by Hendrik Dahlkamp and Alex Teichman, who met while working in Udacity founder Sebastian Thrun's lab at Stanford University. Lighthouse later joined Playground Global, an incubator run by Android creator Andy Rubin.



The Lighthouse camera is the startup's first product. When building it, Lighthouse wanted to "take a traditional camera and give it the eyes of a self-driving car, and give it the natural language understanding of a Google Assistant," Teichman told Business Insider.



Teichman described traditional security cameras versus the Lighthouse camera as "going from VCR to TiVo."



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This lifelike robotic arm gets smarter over time

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Easton LaChappelle, CEO of advanced prosthetics company Unlimited Tomorrow, talks about the updates to the company's prosthetic arm that utilizes artificial intelligence. Following is a transcript of the video.

Steve Kovach: Luke Skywalker gets his arm cut off and he, you don't even notice it's a fake hand.

Easton LaChappelle: Yeah, absolutely.

Steve Kovach: Is that gonna happen ever?

Easton LaChappelle: We are very close, actually.

Kovach: I'm Steve Kovach with Business Insider, here with Easton LaChappelle, the CEO of advanced prosthetics company, Unlimited Tomorrow. The last time I saw your prototype, it looked kind of like this Terminator thing. What has changed in the last year or so?

LaChappelle: There have been so many advances in 3D printing, electronics, and even software. It just helped really form this really intuitive, natural product for us. You can do a lot of different movements with this and this is designed for a child. There's a very fine line to balance between giving them full control and having everything attached to motors or having something that is manually actuated, such as the thumb. So you can click that into place. We have sensors that actually monitor the position of that. We've also found that this is more intuitive and easier to learn.

Kovach: So how does the wearer control it?

LaChappelle: We've developed new advanced muscle sensors. And so we collect a tremendous amount of data. And that's really where artificial intelligence, machine learning, neural networks, come into play, where we can take all this raw data, which, to a human, would be extremely hard to filter and look at it and translate that into something meaningful. With AI, we can do that automatically. We actually track the amount of force that the hand is exerting on an object and we relay that and communicate that through haptics over vibrations.

Kovach: So the wearer is feeling something happening?

LaChappelle: Yeah, and by doing that we create feedback loops to the mind. And that allows easier use and it starts becoming second nature, actually. And we can turn something that would take months to learn down into a couple minutes or hours.

Kovach: And how's that compare to sensors, or prosthetics today? So I know if someone wants a prosthetic today, they have to go in, they have to get measured. It seems like you guys have kind of cut that out, right?

LaChappelle: Yeah, and that was a big part. You know, again, our goal is to get this to as many people as possible. And we see a lot of resistance with this current kind of business model and process, where prosthetic manufacturers up charge and sell to these prosthetic offices and there's a tremendous amount of custom work. So it's all, you know, taking plaster molds and casts and it can take months to make the socket. So we're using new digital and software means to be able to automate that and make it really fast down into a couple days, versus a couple months. What's really special about Unlimited Tomorrow is we created a scalable processes with this. So we deploy 3D scanners, which are low cost, to amputees. So say if they're missing their right arm, we actually scan both the right arm and the left arm. And we use this data to create a mirror image, a proportional custom device for each person. We can go from raw 3D scan to customized proportional device instantly, which is huge.

Kovach: How far away are we from a future where these are almost indistinguishable from regular human limbs? Or like, you know, Luke Skywalker gets his arm cut off and he, you don't even notice it's a fake hand.

LaChappelle: We are very close, actually. We can actually build up skin that mimics the human body. The scan data that we get from a person is essentially a 3D image of their arm and their hand. And so we can print, you know, certain blemishes and freckles and hairs and pretty much take this image and print it over this.

Kovach: Your business model is very different than a typical startup. I imagine you could go knock on VC stores and get gazillions of dollars in funding right away if you wanted to. You're doing something different, you're crowdfunding and giving people who help crowdfund equity. Talk a little bit about that.

LaChappelle: Today we're doing this, we're raising money in a, kind of this new model, which is equity crowdfunding. We turn to the people. So essentially, unaccredited investors and accredited investors can now invest into Unlimited Tomorrow. Already, within a couple weeks, we've raised about $350,000 and it's growing very fast.

Kovach: And then what's next? Where are we gonna be a year from now?

LaChappelle: About seven months ago, Unlimited Tomorrow hit a huge milestone, which is putting this on a 10-year-old girl named Momo. And that was with the help of Microsoft. Now we're looking at the next 100, and thousands, and, you know, really scaling this all over the world. And so we're starting to partner with some very large companies around the world to help us, both the technology side and the business side, to be able to accommodate that. Later this year we're launching the Indiegogo campaign to help raise more funds to be able to really push these first units out into the world and really start creating change.

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Microsoft is rising after announcing that it's partnering with Xiaomi to make AI and cloud computing devices (MSFT)

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Microsoft stock price

  • Shares of Microsoft jumped 2.39% after announcing that the Washington-based company has joined forces with Chinese tech giant Xiaomi in a close collaboration on cloud computing, artificial intelligence, and hardware.
  • The two companies signed a memorandum of understanding under which Microsoft will allow Xiaomi to leverage Microsoft's cloud computing products, including Azure, for Xiaomi's phones, laptops, and smart devices. The partnership will give Microsoft more access to the Chinese market.
  • There are also discussions about a possible integration between Microsoft Cortana, the company's artificial intelligence assistant, and Xiaomi's Mi AI speaker.
  • The pair have also talked about integration of Microsoft's conversational AI and speech software for services like Bing, Edge, and Skype.
  • The memorandum is not legally binding, according to The Verge. 
  • Microsoft was trading at $93.87 per share, and was up 9.28% for the year.
  • Follow Microsoft's stock price live here.

Read more about how Microsoft is trailing behind Amazon for the first time.

SEE ALSO: Amazon is bigger than Microsoft for the first time

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Astronauts on the space station are getting a new friend: A floating, talking robotic head that follows them around

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cimon international space station alexander gerst ibm watson.JPG

  • An 11-pound, artificially intelligent orb is launching to the International Space Station.
  • The robot, called the Crew Interactive Mobile Companion (CIMON), will have an animated face, talk, and fly around.
  • CIMON will use IBM Watson software to interact with astronauts.


When German astronaut and scientist Alexander Gerst rockets to the International Space Station in June, he'll bring along an unusual friend: a flying, talking, intelligent robot.

Called the Crew Interactive Mobile Companion, or CIMON, the orb-shaped device weighs about 11 pounds and displays an expressive digital face. Its "brain" is powered in part by IBM Watson — the artificial intelligence software that defeated Jeopardy! champions Ken Jennings and Brad Rutter in 2011 and won $1 million. Aircraft manufacturer Airbus helped develop the robot as well.

"In short, CIMON will be the first [artificial intelligence]-based mission and flight assistance system," Manfred Jaumann, a payload engineer at Airbus, said in a press release. He added that CIMON will be a "a free flyer, a kind of flying brain" that will interact with, aid, and learn from astronauts.

CIMON is a far cry from the HAL 9000 supercomputer from the classic sci-fi book and movie "2001: A Space Odyssey," and it isn't the only flying robot headed to the ISS. But CIMON's capabilities are nonetheless impressive.

Training a floating head to be a friend

illustration cimon ibm watson international space station airbus

The robot was created primarily by the German Aerospace Center (DLR), which worked in collaboration with IBM, the European Space Agency, and other partners.

CIMON's team trained the robot on Earth to recognize Gerst's voice via microphones and his face using cameras. The machine follows him around using an air-propulsion system. (Its mobility will be tested during several parabolic flights inside an airplane in March, Airbus said.)

This story was originally published

The robot will have a stand-alone version of Watson AI in its memory banks. That means no internet connection — a tricky problem in space — will be required for CIMON to interpret data, respond to commands, solve problems, and generally be a useful little robot.

"It can also serve as an early warning system for technical problems," Airbus said.

Gerst will unbox CIMON in June and use the flying robot through October. During that time, it will help Gerst solve basic problems and check off tasks like a digital assistant. But CIMON's prime mission is to complete three goals: experiment with crystal growth in space, solve a Rubik's cube, and "perform a complex medical experiment using CIMON as an 'intelligent' flying camera," according to Airbus.

"Experiments sometimes consist of more than 100 different steps, CIMON knows them all," Matthias Biniok, the lead Watson architect in Germany, said in an IBM blog post.

cimon ibm watson international space station airbusCIMON will use a neural network to interact with and learn from Gerst, at least at first.

Ultimately, CIMON will spy on space station astronauts to help assess their emotional states and psychological "group effects," Biniok said — a feature that could help better engineer months- or years-long journeys to the moon or Mars.

"Social interaction between people and machines, between astronauts and assistance systems equipped with emotional intelligence, could play an important role in the success of long-term missions," Airbus said.

"We predict that assistance systems of this kind also have a bright future right here on earth, such as in hospitals or to support nursing care," Biniok said.

In case you were wondering how close we're getting to "2001: A Space Odyssey," there are no astronauts named "Dave" scheduled to fly to the space station anytime soon, according to NASA.

This story was originally published at 2:15 p.m. ET on Feb. 27, 2018, and updated with new information.

SEE ALSO: SpaceX's biggest rival has a 'genius' plan to cut its rocket-launch costs by more than 70%

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