#creating a high tech robot is more expensive than hiring a human = well in the future it won’t be
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people obsessed with the idea of AI “taking over every field of work”, leading to creating some kind of dystopian future where “humans are made redundant” have as much faith in infinite shrinkflation and jevon’s paradox as any delusional ceo
#creating a high tech robot is more expensive than hiring a human = well in the future it won’t be#why would a market exist if there was no consumers = we will have digital serf dictators and the rest will be an#underclass living on benefits#that sounds even stupider than the system we have now = it will happen trust me bro#it also doesn’t sound like it would really benefit anyone = the robots will have sentience and they personally want this
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Why do America’s generations keep getting dumber?
America is the global symbol of individual liberty and opportunity. Defined by capitalism and democracy, the very concepts that have made the U.S. the hallmark in innovative thinking and societal development. With arguably the best ‘system’ in the world able to work at great scale, American renegades have been the frontrunners in many aspects of society many countries wish they could compete with. Walt Disney, Bill Gates, Steve Jobs, Mark Zuckerberg, all American icons for creative thinking and execution. Creative, intelligent men that any company would love to have on their team if they could convince them to come. They’ve accomplished things that some would believe to be impossible, and not only that, they all dropped out of college. The education system failed them.
The current American educational system was first introduced in the 1910′s during the industrial era to create a scaled up version of a youth knowledge assembly line. Children are crammed into large classrooms and are taught general knowledge to enter the next level of education. The strict regimen of be quiet, listen, and regurgitate what you have heard onto a standardized exam to get a letter grade has been used for over a century. This practice is nowhere near teaching a child to think and solve problems. Tests do not work. They do not represent any more than words on a paper. Example, the Chinese Box Experiment. In short, a Chinese professor inserts a test of different Mandarin characters that a robot on the other side of the door must answer. The robot identified every character correctly and returned the paper. The Professor says “Wow, this pupil understands Mandarin very well!”. She is unaware the answers came from a machine programmed by humans. The robot does not actually understand what is going on, it is simply responding with what it’s been told to do. Understanding is using memory to create predictions. However, this is exactly how school teaches children in America. They program children to respond to an input with a correct output, and those that compute such information correctly, are deemed the brightest. If we are programming children to act as robots, robots will win every time, bar none. The only way to fundamentally beat a robot is to be more human. Humans have creativity, emotional intelligence, morals, historical and societal awareness. Schools are essentially building kids like robots in an assembly line. They are writing code in our brains on how to think, act, and behave in many situations. The smartest natural child can be nurtured in such an environment to become average.
The most beautiful aspect of a child is its sense of curiosity and creativity. Left to its own, many will fantasize about spaceships and rockets and trains. They will dance on couches, spill their parent’s coffee on the rug, They ask naive questions about complex issues. I was lucky enough as a child as my father would make me understand how any toy or tool worked when I used it. I was made to inquire about the world around me. How does a car engine work? What could make it better? Why do planes not fall from the sky? I was then sent to day school and would be told to shut up and listen to the teacher, because he is smarter than you. What does it mean to be smart then? To know more information and algorithms downloaded into the hippocampus? Memory is not intelligence. Intelligence and consciousness are manifested in the neocortex. The part of the brain that operates high level thought. Children in American society are suppressed and told to remember things to graduate. After a certain point of indoctrinated thinking, children lose their sense of curiosity and are more focused on execution then the process of learning and solving the problem itself. The most commonly asked question in American schools is “Will this be on the test next week?”.
So how can we make this better? This epidemic starts on the very system of education itself. The end goal of school is to obtain a degree, a rough representation of what college taught you, or maybe you were just wily enough to cheat (which is highly incentivized in the ends justify the means environment.). School’s are not obligated to innovate. Colleges are businesses. They force 18 year old children to take on 200 thousand dollar debt decisions. They don't need all that money. The books that cost hundreds of dollars for students, cost 6$ to make. NO INDUSTRY IN THE WORLD HAS A MONOPOLY THAT BOASTS SUCH GREAT PROFIT MARGINS. Colleges have young generations on a string with the rhetoric that a degree is worth such money. Millions of kids cry joyfully over getting into a school, just to give them money that is taken from loans to enslave them once they get out with a degree. College is enslavement. It is a monopolistic business. It is a shame to see such an important factor to human development being exploited for profit. They pay zero taxes on the profits they make. They teach general knowledge in a lecture style. Is that worth it? Why do kids want this? Why do parents make them do this? Because they did it when they were kids? We are in a new age.
Fast forward over a century later, the digital age. Children have smartphones, smartphones with all the information they need. Why sit in a room listening to someone lecture when you can just look something up? Children are put in classrooms that are part of a school, that are part of a district, that is part of a school board. These scaled up versions of education pump out millions of children with a broad range of general knowledge, or at least that is the intent. Now most of these kids go to college, work a 9-5 job, and start a family and the cycle goes on with their children. That is not fulfillment, that is not happiness for most. The average school tuition has increased by more than 200% while the average salary of college graduates has plateaued since the start of mass schooling. We live in an era of economies of “unscale”. With artificial intelligence and cloud computing, vertically integrated corporations with huge factories and inventory cannot compete with lean, agile startups that rent cloud storage on Amazon Web Services, outsource manufacturing to Chinese factories, and utilize open source Machine Learning algorithms instead of spending great capital to build it all individually. This gives power to creative, niche startups that can effectively run a business from their basement. Think back to the 1990′s. The internet had just gone mainstream, thousands of employees quit their jobs to create internet companies during the Dot-Com Boom before it crashed. They would plan their IPO before even incorporating, this new technology was a home run in their eyes. How does this relate to education? The rapid evolution of technology can be attributed to new platforms. Telecommunications created a global platform for information to be spread from Boston to Australia in an instant, the internet has revolutionized virtually every industry. My generation is growing up in the advent of the AI and cloud computing platform. Essentially, the innovation of big tech platforms should equate to radically different education. However, because school systems have no incentive to change and make less profit, they are still preparing kids for an industrial era to be interchangeable pieces working for large corporations rather than agile startups and small to medium companies.
Artificial Intelligence will radically change education. Harvard, Stanford, and a few other large brand schools have noticed this trend and created online courses already that use machine learning engines to tailor a course to a students understanding. AI can use big data to understand how a pupil learns, what he/she is struggling in, and create a report on their level of thought that is a perfect representation on what they can do, rather than a vague degree. Many companies such as Microsoft and Google are receptive to this and an increasing number of developers enter the software field with no degrees. Because there is no system that could exemplify a student’s intelligence in the past, an expensive degree was the next best thing and college became a booming business but quite an enslaving process for the children utilizing it. AI can guide a student while virtual classrooms and teachers can connect to children across the globe for real organic conversation. Now, the physical classroom is very important for social development and should still be used to an extent. Perhaps we Americans should look towards Finland, the country with the best ranked educational system in the world. Their primary and secondary schools are incredibly different. School days are 3 hours long, there is no homework, and there are no private schools. The philosophy is that kids should be emancipated from the institutions and be left to be kids and develop intuitiveness organically through real world social experiences. There are no private schools so that rich families send their kids to public schools and those parents make sure the school is up to par with what they can afford.This forces schools nationwide to keep a standard that is universal, much unlike the U.S. with many inner city public schools without internet while capitalistic private and public district schools spend money on football field renovations.
To create a more productive generation of students, we must “unscale” education, remove private schools, reduce length of school hours, ban or at least regulate student loan firms, set a price ceiling on all college tuitions and utilize the platform of Artificial Intelligence to create a market of one for all students starting from Kindergarten to beyond college. Hiring more teachers and building would effectively make the problem worse. Teachers can be the greatest minds on the planet, but under such a restrictive there is little hope to save a whole generation. Khan Academy has implemented an unscaled online system, leading the way for more personalized education programs. There is little chance this can happen unless this is derived from the Federal Government, which is famously bureaucratic and slow to act especially with education. Changes are needed. This will make children more excited to learn, ask questions and solve the great global issues that are long overdue to be solved. Kids will strengthen critical thinking skills and experience freedom of thought that will create a wave of further technological development and accelerate American education to new heights.
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Scry Capers hashtag fictionblast
In the far future, more than half of humanity lives on the Moon. There are also a few populations on in-system space stations, the Mars Colony, and the Fleet Crews that live on the enormous ships that travel between them all. The last of the earthlings inhabit a dead and deadly Earth, ruined by humanity’s failure to properly steward our planet and ravaged by terrible wars. Vast abandoned mega-cities return to nature and yet become home to the unnatural: altered animals/people that are either cybernetically Upgraded or biologically Enhanced beings. Scavengers and Privateers make illegal loot runs to Dead Earth for anything of value to smuggle into space colony black markets. The situation for the few million people still living on Earth is growing worse and a final chance of rescue off-planet is taking place, a cooperative mission organized by the governments of the Moon, overseen by the newly formed and nefarious Planetary Evacuation and Transfer Agency, who takes violent measures to protect against “infiltration” of the Moon by any who are not “pure” humans. This is not a welcome policy for the various UpGraded and Enhanced people who have become a part of Dead Earth society - lifelong lovers, leaders, parents and friends in the communities left to fend for themselves for so many generations. Into this hotbed of unrest and wreckage sails the crew of one small smuggling ship. Come explore this future with them. Basically it’s about a space smuggling ship of rag-tag adventurers who raid the surface of Dead Earth and sell goods on the Lunar black market. They wind up chasing down a series of ancient sites that answer questions about the deep origins of humanity.
In addition to the Martian and Lunar Colonies, there are the Space Stations, and The Fleet. Originally, the Fleet was the Station Supply Fleet, created to service the seven space stations humans had built. Life on these stations was secretive, and their smaller populations tended toward high I.Q.s in the top of their various fields of study, who then raised several generations of children who were certainly very, very smart, even if thus far unproven to be genetically enhanced to be extra intelligent, as several stations were rumored to do. Stations were little worlds unto themselves, and along with developing various needed commodities in their areas of specialty (such as nano-tech, medical research, the production and improvement of various foods and technologies) they also developed their own ways of life. Likewise, the Service Fleet, many ships crewed by up to two hundred men and women on between-station journeys that could take three years or more, acquired their own culture. The stations began to have differing opinions about what the law should be on-station.Those opinions disagreed with the opinions of Earth and the Lunar colonies, and when one of those disagreements came to a head on Station Delta, Space Command found out very quickly that one of the things all the stations had in common was an opinion that attempts at military boarding and take-over of a station would not be tolerated. Initial reports by surviving members of the Lunar Military incursion team were to the effect that yes, the extremely intelligent people of Station Delta had, in fact, thought to engineer quite efficiently against armed intrusion. Planetary authorities were further caught with their pants down when the seven stations of Sol System immediately unionized, announcing themselves an alliance of self-governing bodies. The Sol Union then gave the fleet that serviced them (and relied largely on the stations for refuel and supply) an offer: “join us.” On each ship of the Fleet, decisions were made. On some ships, there were votes. On other ships arguments were more pointed. Explosive, even. Two ships were lost entirely. In the end, the Council of Captains was formed (some of whom were very new to their captaincy indeed) who defined each ship as an autonomous entity within the Captain’s Council, and unanimously offered an alliance with the Sol System Union, simultaneously offering Earth and the Lunar Colonies a peace-treaty with trade agreements. Once the Sol Union signed allegiance with the Council of Captains, there wasn't really any choice for Terran government; the station labs produced a lot of the best goods and technology: medical equipment and vaccines, personal electronics, as well as widely enjoyed arts and entertainment- that last bit was particularly tricky for Space Command to get around. It was extremely difficult to garner the support of the citizenry when the 'enemy' was so damned popular. And the ships of the Fleet were almost all of the serious space-craft humanity had made; there was no space navy, or any kind of second fleet to provide shipping. In effect, the rebel space stations, while refusing to trade any of those things with Earth or the Moon, had agreed to sell to the Fleet. And the Fleet was offering to sell those things to the Earth and Moon. And buy goods from them to sell to Sol Union, of course. Terra couldn't afford to refuse, and indeed, the Delta Solar Treaty worked well for all concerned. ______________________________________________________________________ The ship is a Sprite Class escort ship repurposed for surface raids and smuggling. The crew is 12 strong 1 AL Short. Buff. Mechanic. Loves vehicles. Missing two fingers. Weapons of choice: sawed off shotgun, hammer, and explosives. Seems fierce but is a big softie. Loves sandwiches and beer. Very seriously insists that he is not of the magic race of dwarves. Always winks afterward. Pet/companion: robot badger. 2 PAIGE Navigation officer. Bookkeeper. Researcher. Woman of Persian heritage. Smart, plays chess, loves books. Grew up half her time on a Space Fleet ship half at a space station. Excellent cook. Weapons of choice: tranq gun full of customized doses and a poisoned dagger. Pet/companion: cat. 3 FEY the captain’s left hand. Loyal to a fault. Black-haired lady of Irish decent. Deadly with several weapons, as well as hand to hand, for some reason, likes the compound bow. Pet/companion: a raven. 4 Q (sometimes Quade or Quin) Tech savant. Computer engineer, code monkey, inventor, robotics tech. Ship pilot. Genius. Always listening to weird music. Androgynous ace black person. Pet/companion: probably-sapient robot built by Q. Resembles a spider the size of a chihuahua 5 DOGWOOD (or maybe Jinx) Being of mystery. So many tattoos. Unrecognizable ethnicity. Witch, probably. Constantly picking pockets and pulling little cons. Tarot cards for poker, winners hands come true. Weapons of choice: hands, random items, the surrounding environment, and pure luck. Flirts with 100% of everyone. Pet/companion something that is probably a coyote but might be a fox? some kind of jackal? Smarter than it should be. 6 . SIX Six is trouble. Don’t bother Six. Six is emotionally fragile and also might rend you limb from limb. Let’s just, let’s just leave Six alone. Pet/companion: the beast within 7 LIEUTENANT WOLFE (usually just called Lieutenant) the captain’s right hand. Weapons of choice, rifle, axe. Russian and Scandinavian ancestry. Companion/pet, clearly, a grey wolf, grey, named Shadow (follows him everywhere.) 8 EIGHT-BALL. Rogue. Gambler. Half-Japanese black trans woman. Loves pool and casinos. Loves cash, jewels, and reeeeaaalllyyyy expensive whiskey. Quickdraw artist with a pistol. Personal pool cue houses a sword cane blade. Laughs easy, holds grudges. Pet/companion: raccoon. 9 THE CAPTAIN. Also referred to as Boss. Trying to navigate the group to success. Slow to give up personal information. The crew are all family the captain would die for. Non binary person with ancestry in mongolia as well as various east asian populations. Pet/companion: Siberian Husky. 10. DOC. Not actually a doctor, more like a paramedic, field surgeon. Sort of a vet for humans. A mostly Tibetan person. Might be 40 years old, might be 90 years old. Pet/companion: saker falcon. 11. SU. Sometimes Suke. Assassin. Bodyguard. Not a talker. Japanese. Highly specialized weapons. Pet/companion: venomous cyborg snake. 12. The Client / possible new adoptee, a well-off lad from the lunar colonies, disowned for his stance against the political status quo, with powerful political enemies. He has hired the crew to help uncover proof of a big secret he is trying to bring to light, and he has his own secret from the crew. Meanwhile, he does his best to unlearn some of his lunar colony privilege and preconceptions, out where population gene pools aren’t screened for designer mutations and cybernetic upgrades don’t define you as less than human. Companion/pet: cyber-ferret. _____________________________________________________________________ Here is some background and world building, and please, I know it says prologue, but it’s really just, like, rough world building notes
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If you’ve been using the same accounting processes for over a decade, chances are that it might be time to evolve. The accounting industry has become exponentially more high-tech over the past few years, with new advancements emerging every day. To get a feel for the trends that is likely to be most relevant to your small business in 2020 (and beyond), check out these five areas of importance.
1. Cloud-Based Solutions
Maintaining your accounting data on just one person’s office PC is not going to work for the vast majority of today’s businesses. Accounting information must be accessible to multiple stakeholders, and the best way to do that is to keep the data in the cloud. The importance of this was emphasized during the COVID-19 pandemic when companies were completely shut out of their offices but still needed to access important accounting information.
Cloud-based software providers have made these solutions inexpensive, easy to use, and customizable so every business has a way to use them in the most efficient way possible. Also, companies have implemented safeguards to ensure that cloud-based data is accessible to all who need it but impossible to access for those who don’t. Cybersecurity measures ensure that cloud-based data is private, secure, and well protected.
2. Artificial Intelligence and RPA
The use of AI in the accounting world goes far beyond the ability to offer chat bots on your customer service and home pages. AI is used in concert with tools like block chain and big data to ensure safe, fast, and transparent transactions that are secure and well protected. Also, AI can be used to notify you if bills are overdue, payments are late or the numbers aren’t reconciling.
You can also use robot process automation (RPA) to handle simple tasks like automatically generating month-end accounting reports and producing compliance documents regularly. This cuts the need for human involvement in your accounting process, freeing up your financial professionals to do more thought-intensive work.
3. Blockchain
You’ve likely heard the term “blockchain,” but you may not be familiar with its utility in the accounting sector. Its uses in the accounting realm are widespread, but one way you can use it is in maintaining a digital ledger that records all of your accounting transactions and traces them from conception through the final step of the payment process.
The block chain process ensures that every step is time stamped and that entries cannot be deleted or changed, allowing for complete transparency in the entire accounting life cycle. Any auditor (internal or external) can then trust the data within the block chain system since it’s completely digital and transparent.
4. Outsourcing
With all of the technology being employed across the accounting sector, it can be challenging for a small business to keep up with it. Investing in high-tech solutions (and hiring staff to manage them) is time-consuming and costly for any business to undertake, let alone a small or new firm. That’s why many business owners are turning to outsourcing as the solution to maintain optimal financial processes without breaking the bank.
By using an outsourced firm, a business can be sure that its financial processes are being handled professionally and accurately. They can avoid investing in the office space, employees, and technology necessary for maintaining a strong accounting process because the outsourced firm handles that for them. This allows the business to only pay for the specific accounting services it needs rather than pouring money into the entire process. Ultimately, outsourcing is less expensive and more efficient for the business versus handling the accounting operation internally.
5. Use of Big Data
Finance professionals are increasingly using big data as an integral part of the accounting process. This information can be translated into a multitude of formats to allow businesses to better make predictions for the future, benchmark against goals, and flag areas of opportunity.
Here’s how it works: The accounting and IT teams will work together to extract key insights from data sets. The analyses that result will allow you to plan better and ensure that your accounting department is operating proactively rather than on a reactive basis. This saves time for everyone involved in the process and also gives you the peace of mind that you’re making data-backed decisions rather than using subjective drivers to create your accounting strategy.
Reference Link @ https://www.businessmagazine.org/5-small-business-accounting-trends-to-follow-in-2020-5161/
#accounting services#small business accounting services#outsourced accounting#outsource accounting#Accounting outsourcing#Business Accounting Trends#Accounting Trends#Accounting Trends 2020
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Backed by SoftBank, Herman Narula’s Improbable is struggling to revolutionize gaming industry
New Post has been published on https://apzweb.com/backed-by-softbank-herman-narulas-improbable-is-struggling-to-revolutionize-gaming-industry/
Backed by SoftBank, Herman Narula’s Improbable is struggling to revolutionize gaming industry
By Amy Thomson
Worlds Adrift was supposed to be a multiplayer game like no other: think Minecraft meets Second Life. Released to some users in 2018, the virtual world promised to take immersive gaming to another level by using a new technology from SoftBank-backed wunderkind, Improbable Worlds Ltd. Players would build ships to explore a universe of floating islands created by other participants. Then last May its creator, Bossa Studios, said it was pulling the plug.
“We fell way short of what the game’s original vision was,” Bossa co-founder Henrique Olifiers explained in a YouTube video. “What we have live today is probably perhaps 20% of the game that we wanted to launch, and it shows.”
Worlds Adrift is one of at least three games using Improbable technology that were pulled last year—a setback for Improbable, which promised to revolutionize gaming by helping developers create complex worlds that rival the real one. There are many reasons games can fail, but two people familiar with the situation say Improbable is struggling in part because it surprised developers with frequent updates that forced game studios to spend more time fixing code than perfecting their products.
Founded about seven years ago by Cambridge University students, Improbable is unprofitable and has only one game running on its platform. Since 2018, the company has lost its chief financial officer, chief legal officer, vice president of people operations and chief creative officer, according to their LinkedIn profiles. One high-level person who left said co-founder and Chief Executive Officer Herman Narula didn’t give executives autonomy to make their own decisions, from hiring to choosing which projects to pursue. Several people who worked with Improbable and requested anonymity to avoid hurting their careers in the insular gaming industry, also said Narula alienated game developers with his temper—shouting orders and complaints on the phone and in meetings.
Improbable has since lured a former Disney executive to become the new CFO, is working with several other studios and is starting to develop its own games. Company spokesman Daniel Griffiths said that it’s not unusual for game developers to decide against a commercial launch after a trial period. Additionally, he said, studios could decide when to implement updates and were allowed to use an older version of the platform for a period of time. The company offered assistance and kept developers updated of changes in its forums and through emails, Griffiths said. He called accusations of shouting and micromanaging “hearsay” and pointed to Narula’s approval rating on the Glassdoor job review site, which was at about 83% when this article was published, and said most reviewers on the site would recommend working at Improbable to a friend.
As for employee attrition, Griffiths said that the company’s voluntary turnover rate is in line with the tech industry, which is high. A report from LinkedIn put employee churn for tech at 13.2%, the highest of all the industries it surveyed. Improbable has an internal tool that lets employees offer anonymous feedback as part of efforts to manage its culture, he said.
The London-based startup’s travails are just the latest setback for SoftBank Group Corp.’s Vision Fund, which in 2017 led an investing group that plowed $502 million into Improbable. Along with Narula, SoftBank is one of two Improbable shareholders that have significant control, with a stake of 25% to 50%, according to Companies House, the U.K. registrar of companies. While some of SoftBank’s bets have paid off, such as its 2018 sale of a majority stake in Flipkart Online Services Pvt Ltd. to Walmart Inc. for $16 billion, several of the Japanese investor’s companies have run into difficulties recently. WeWork pulled its initial public offering, robot pizza maker Zume Pizza Inc. announced it was cutting hundreds of jobs in January, and Indian lodging startup Oyo Hotels is eliminating thousands of employees and losing money after an aggressive expansion. SoftBank didn’t provide a comment.
Pic: Improbable
Narula, the son of Indian construction magnate Harpinder Singh Narula, founded Improbable in 2012 with Rob Whitehead, a fellow graduate student at Cambridge who’s now chief product officer. The men originally worked out of a barn next to Hyver Hall, the Narula family’s mansion, before moving to an office in central London two years later. They’d met in the university’s computer science department where they bonded over a shared passion for games, dreaming of creating huge, detailed virtual worlds where lots of people could play together.
SpatialOS was going to be the tool that made those dreams a reality. It helps developers create complex, simulated environments. Plants and animals continue to grow and reproduce even when nobody’s playing; it can enable programs that mimic how electrical grids, transportation networks and traffic work together. It promised to create elaborate, persistent worlds unlike anything that had been built before.
“We’re in a place today where it is actually possible to create artificial realities,” Narula said in a 2017 interview with Wired. “Basically, we want to build the Matrix,” he joked. SoftBank’s investment that year was one of the biggest in a U.K. startup, on par with Google’s 400 million pound ($511 million) acquisition of artificial intelligence firm DeepMind. Before that, Improbable got early funding from Andreessen Horowitz, which put in about $20 million in 2015, as well as billionaire Li Ka-shing’s Horizons Ventures and Singapore’s state investor Temasek Holdings Pte, which were part of a group that invested $30 million later that year. All told, the company’s attracted more than $600 million in investment.
Even after SoftBank’s investment, Narula retained control of his company, keeping 75% of the voting rights, according to regulatory filings.
People who know Narula describe the 31-year-old executive as unusually charismatic and persuasive, drawing people into his “reality distortion field,” a characteristic famously attributed to Apple Inc. co-founder Steve Jobs. During a Ted talk last year, Narula said the types of games his creation enables will reshape human relationships and identity as people spend more time together in huge, collaborative worlds.
“If we could co-inhabit, co-experience things together, undiminished by physical frailty or by lack of context, create opportunities together—that changes things,” Narula said in the talk. “That bonds people.”
Bossa Studios was Improbable’s first big gaming customer to use its technology platform. The two companies began discussions about what they could build together in 2014, giving some users early access to Worlds Adrift in 2018. It was a major departure for a gamemaker that previously specialized in simpler, social titles, such as I Am Bread, “a beautiful story of one slice of bread’s epic and emotional journey as it embarks upon a quest to become toasted.”
Following Bossa’s vote of confidence, Spilt Milk Studios decided to give Improbable a try with a game called Lazarus. Described as a sci-fi twist on Groundhog Day, the game let thousands of players fight over technology and territories in a world that reset weekly. After about three years letting players test the game, Spilt Milk shut it down in September, saying the game was too expensive to continue and cited the costs of maintaining, running and updating the game as it became more feature-packed.
On its website, Improbable says it costs “slightly more” to use SpatialOS than traditional cloud-hosted, dedicated game servers. Improbable estimates that for the smallest “templates,” hosted in the U.S., developers are paying 8% to 35% more per hour.
Bossa declined to comment and Spilt Milk didn’t reply to requests for comment. Both are focusing on other games.
The biggest failure so far has been Automaton, a SpatialOS game developer which last year went into administration, the British version of bankruptcy. Its Mavericks: Proving Grounds game was going to be a 1,000-player “battle royale” shooter with users ducking in and out of abandoned buildings and running across landscapes to be the last one standing. The game had weather systems, and players left footprints and shell casings behind that let others track them. Mavericks was going to be vastly bigger than similar games, like Fortnite, which typically host a maximum of 100 people at once.
Big, complicated games like Mavericks are expensive to develop, and Improbable offered studios financing ranging from thousands to millions of pounds, the people said. Studios in return agreed to give Narula control over aspects of their business including communications and financials, depending on the deal, people familiar with the arrangements said. Game makers also agreed not to make disparaging comments about Improbable, they said.
Last year, Improbable provided Automaton a credit line of about 5 million pounds that could be converted into equity, according to the administrators’ report. The deal gave Improbable some control over Automaton’s finances. But Improbable became so involved in the game’s development that Automaton felt more like a subsidiary than an independent studio, and employees complained that they didn’t know who was making decisions, people familiar with the episode said.
Then last summer, Improbable told Automaton, which had drawn down less than a third of its credit line, that it would be withdrawing further funding, according to the administrators’ report. No other benefactors materialized, and the firm, which had been profitable through the fiscal year ending in May 2018, entered administration with just 30% of Mavericks development completed. As part of discussions about the company’s insolvency, Improbable said it would be willing to take on about 20 staff who’d been working on the project. The company had 40 employees at the time. Automaton’s founder, James Thompson, now works at Improbable as head of product research. He didn’t respond to requests for comment.
The Improbable loan was meant to be a bridge while Automaton looked for other investors, Griffiths said. The loan was to be used specifically for Mavericks, and did give Improbable some oversight over how the money was spent, but was never meant to fund the game’s entire development, he said. Improbable decided not to extend the loan further after Automaton notified them that it hadn’t secured any additional money, though the company did contribute to a fund for Automaton’s employees who were affected by the administration, he said.
Improbable, which is private, reported that sales rose to 1.22 million pounds for the year ended in May 2019, double the revenue from a year earlier, but less than the 7.8 million pounds in fiscal 2017. Its net loss narrowed to 39.2 million pounds from a 50.4 million loss in 2018 as the company invested in its technology and expanded, adding employees.
In the absence of significant game traffic on its platform, Improbable has said its main revenue source has come from defense industry projects.
The company’s next move is to develop its own games. Improbable has set up studios and bought Midwinter Entertainment, a Washington state-based SpatialOS developer, in September. No games are ready for commercial release, though Midwinter has been play-testing one title, called Scavengers, where opposing players must decide whether to join forces to defeat monsters and survive in the wilderness. The company also acquired game development consultancy the Multiplayer Guys in September and hosting firm Zeuz in February.
There are also a number of other SpatialOS games in development including Seed, a multiplayer game by Klang, and Wizard’s Wrath, a fantasy first-person-shooter from DragonfiAR.
Improbable has also recently attracted a new CFO, Dan Odell, who spent 15 years at Walt Disney Co. where he was finance chief of Maker Studios and Disney Mobile and Social Games, the company said.
But so far, the only game for sale is from NetEase Inc., a Chinese gamemaker that invested more than $50 million in Improbable in 2018. Called Nostos, the multiplayer survival title launched as an early release in December.
“It’s a great team with solid technology, and Herman Narula is a visionary CEO,” NetEase said in an emailed statement. “We chose to work with Improbable for their advanced technical capability and the increasing usability of their technology further confirmed our choice.”
Nostos got three out of five stars on game-distribution platform Steam, with reviewers hailing its promise and beautiful graphics, but complaining that the game is unpolished and buggy. NetEase developers posted in January that they realized there were some problems and had been working on improving performance issues.
“I really want to like the game, I really do but there isn’t much game here,” the top reviewer, the self-styled Trashgoblin, wrote in December.
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Autonomous delivery van drives at Goodwood Festival of Speed
On the opening day of the Goodwood Festival of Speed, a new company called Kar-go gave the first public demonstration of what is believed to be Europe’s first roadworthy autonomous delivery vehicle . Unveiled at the Future Lab exhibition at Goodwood, Kar-go aims to provide a solution for retailers that need to compete with Amazon’s free deliveries. According to the company’s founder, William Sachiti, the most expensive part of delivering items to people’s homes is the so-called last mile – the final part of their journey to the customer. The Kar-go autonomous vehicle uses an Nvidia Drive PX graphics processing unit (GPU) system to run real-time image detection for autonomous driving. It also includes a robot picker, which is used at the delivery destination to grab the package ready for the customer. Kar-go uses a combination of continuous-time recurrent neural networks (CTRNNs) with convolutional neural networks (CNNs) and long short-term memory (LSTM), which Sachiti said creates a highly evolved top-level controller system that can “learn” from the past, “perceive” its environment and make any necessary corrections. Unlike autonomous cars, which are being designed to drive on any road, Kar-go will have defined local driving routes, which Sachiti said means it can learn normal activities and objects that appear on its driving routes. As is the case with military drone pilots, when being driven in the real world, Kar-go will also have a remote human operator on hand to step in if there are unforeseen events. However, in the event of any emergencies, he said Kar-go would slow down and stop automatically. Cliff Saran/Computer Weekly Kar-go autonomous delivery vehicle Sachiti expects to have one Kar-go vehicle piloting autonomous deliveries within three months and anticipates that autonomous deliveries via Kar-go will roll out in 2020. The company has raised over £300,000 through Crowdcube and has hired a team of artificial intelligence (AI) experts, as well as a chief designer from the McLaren Racing team, to develop software and hardware. Kar-go has launched the next funding round to scale-up production and testing. When asked about potential competition such as Amazon’s drone deliveries, Sachiti said he was confident that local authorities and the public would not tolerate the level of noise that drones generate. And while other autonomous delivery robots do exist, he said these have largely been restricted to use on the pavement, rather than on the road. Read more about autonomous vehicles Autonomous vehicle data from AI, car cognition, smart mobility and V2X can lead to new business models that can manage digital disruption on industries. Level 5 fully autonomous vehicles are a decade away. By then, the tech will be so expensive that it will only be available on high-end vehicles. Source: www.computerweekly.com Read the full article
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A Tech Guru Captivated Canada. Then He Fled to China.
VANCOUVER — Sun Yian was living the Canadian dream.
The Chinese immigrant found fortune harnessing Canadian talent to develop cutting-edge technology, everything from semiconductors to facial recognition, to take back to China. His company grew to more than 1,500 employees across China and North America, and was lauded by Canadian officials as a model for unlocking the Chinese market to create homegrown prosperity.
Then Mr. Sun stopped paying his Canadian workers and fled to China. Left behind are lawsuits from angry investors and Canadian employees who are wondering whether their work could be used to help China’s growing domestic surveillance state.
Canada has long benefited from close business ties to China, and lawmakers have courted the country as a new market for Canadian companies as well as a source of investment. Now, Mr. Sun’s story is fueling calls for heightened skepticism of Chinese money.
“Canadian officials have to some degree been blinded by China’s incredible economic growth and waves of capital spreading worldwide,” said Michael Byers, a professor of global politics and international law at the University of British Columbia in Vancouver. “They’re certainly naïve to China’s approach to acquiring high tech from other countries, and they haven’t pushed hard on getting answers before allowing deals to go through.”
In March 2017, the government of Prime Minister Justin Trudeau approved the sale of a Montreal laser company to a firm partly owned by the Chinese government, despite objections from security officials in the previous Canadian government. In June 2017, Canada waived a security review for a Chinese takeover of Norsat International, a Vancouver high-tech company that provided satellite technology to the United States military.
Mr. Sun’s company, Istuary Innovation Group, initially appeared to represent the positives of Chinese investment. His company brought jobs and high-tech business to Vancouver. But a review of the company’s finances and interviews with former employees reveal a murky web of financial and previously undisclosed ties to the Chinese government.
Mr. Sun, 45, who goes by the name Ethan, founded Istuary in 2013 in a Vancouver Starbucks, just as the Canadian government was welcoming greater Chinese investment. At its peak, the technology incubator and venture fund occupied two floors of a downtown Vancouver office building, where engineers toiled on semiconductors, robotics, big data analytics and facial recognition. By 2017, Istuary had 24 offices around the world, including in Beijing, Shanghai, Los Angeles and Toronto.
The company’s growth helped give Mr. Sun access to Canada’s political elite, relationships that were nurtured through political donations and corporate sponsorships. Photos he posted online show him smiling with Prime Minister Justin Trudeau during a trade mission in China. Government officials in British Columbia praised Mr. Sun for creating Canadian jobs.
A Vancouver government agency signed a contract with Chinese industrial parks to expand Istuary’s operations. Istuary joined publicly funded Canadian organizations to do research. Canada’s immigration ministry approved the company for a federal startup visa program that lets foreign entrepreneurs obtain permanent residency.
“The government gave us really good support,” Mr. Sun told a Canadian business summit in 2015, according to a video of his speech posted online.
Yet some of Istuary’s work provoked concern among employees.
Eric Hsu, 39, an American data scientist hired by Istuary’s Vancouver office in 2016, said he worked on artificial intelligence capable of recognizing a person’s face across multiple surveillance feeds or detecting specific human behavior, like fighting. “A lot of these security applications were both humanitarian and ethically troubling,” he said in an interview. “Chinese clients had lots of ideas for ways they would use our applications. Some of those raised red flags.”
An Istuary customer presentation reviewed by The New York Times highlighted the services its technology could offer in Chinese cities. They included the ability to recognize faces through security cameras and run them through databases, as well as track people’s personal relationships. It also highlighted other services, like tracking crowds and land records.
Mr. Hsu said he attended trade shows in China where Mr. Sun pitched Istuary’s artificial intelligence technology to potential customers interested in products designed to prevent prisoner suicides or for detecting criminal activity.
Human rights groups say Chinese authorities have been zealously using big data collection, A.I. and facial-recognition technology to upgrade Beijing’s mass surveillance efforts.
Mr. Sun enjoyed ties to the Chinese government that his Canadian workers and investors say he did not disclose.
Kuang’en Network Technologies, a cybersecurity company he founded in Beijing in 2014, specialized in industrial control systems for some of China’s biggest state-owned enterprises.
State Grid, China’s national power distributor, said it banned Kuang’en, among other companies, in 2016 from bidding on public contracts because of collusion, without offering details. But that year, Kuang’en formed a joint venture with another cybersecurity firm, BeijingVRV, whose powerful Chinese government clients include the National People’s Congress, the finance and foreign ministries, military contractors and public security agencies.
According to corporate documents and Mr. Sun’s employees in China, Istuary and Kuang’en shared funding, workers, technology, office space and shareholders, including Mr. Sun’s wife, Hu Yulan.
Former Istuary employees in Vancouver said the company’s collapse began last spring with a series of missed payrolls and final paychecks in May 2017. Many stayed at their jobs anyway.
“Sun kept giving us false hopes,” said Manivannan Gajendran, who led an Istuary quality testing team in Vancouver. He said he took out a $15,000 line of credit to cover his daily expenses while he waited for money that never came.
By then, Mr. Sun had gone back to China. In August, Istuary investors in British Columbia sued Mr. Sun and his wife, accusing the couple of illegally using funds to purchase two multimillion-dollar homes in Vancouver.
Canada’s immigration ministry suspended Istuary from the startup visa program after learning of the allegations. In an email, a ministry spokeswoman said it had gathered information on Istuary after the company was recommended by an industry association, and “found no reason to reject the designation recommendation at that time.”
Mr. Sun did not respond to interview requests made through his Vancouver lawyer. But he denied the allegations in a letter posted on Istuary’s now-defunct website in October. “We are NOT a Ponzi scheme,” he wrote.
A British Columbia provincial employment department has since ordered Istuary to pay around $2.2 million in unpaid wages to more than 150 employees and has begun collection proceedings in order to seize Mr. Sun’s residential properties, a spokeswoman from the province’s labor ministry said in an email.
The fallout, and Mr. Sun’s broken promises, soon reached the company’s operations in China. According to Laura Fan, an Istuary employee in Guangdong Province, Mr. Sun claimed the company’s cash crunch was because of poor management and Chinese regulatory changes. He also blamed Chinese investors and their “political mission” for pressuring him into striking deals with American chip companies, she said.
In December, Istuary and Kuang’en’s offices began closing across China, without employees being paid for months of work. “These people never got any of their salaries,” Ms. Fan said.
Just before Christmas, former employees said, two people from a Chinese technology firm that had invested in Kuang’en camped out in the Beijing office, hoping to catch Mr. Sun. A few weeks later, debt collectors locked the doors with a heavy chain. On a recent visit to the shuttered office, trash covered a rickety cot and chairs visible in the entryway.
Someone had scrawled a large handwritten message across the glass doors: “The fraudster network fakes bankruptcy, maliciously owes salaries and cons its employees.”
Underneath was an ultimatum: “Pay us the money and we’ll unlock the place.”
Dan Levin reported from Vancouver. Juecheng Zhao contributed research from Beijing, and Cao Li contributed research from Hong Kong.
The post A Tech Guru Captivated Canada. Then He Fled to China. appeared first on World The News.
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A Tech Guru Captivated Canada. Then He Fled to China.
VANCOUVER — Sun Yian was living the Canadian dream.
The Chinese immigrant found fortune harnessing Canadian talent to develop cutting-edge technology, everything from semiconductors to facial recognition, to take back to China. His company grew to more than 1,500 employees across China and North America, and was lauded by Canadian officials as a model for unlocking the Chinese market to create homegrown prosperity.
Then Mr. Sun stopped paying his Canadian workers and fled to China. Left behind are lawsuits from angry investors and Canadian employees who are wondering whether their work could be used to help China’s growing domestic surveillance state.
Canada has long benefited from close business ties to China, and lawmakers have courted the country as a new market for Canadian companies as well as a source of investment. Now, Mr. Sun’s story is fueling calls for heightened skepticism of Chinese money.
“Canadian officials have to some degree been blinded by China’s incredible economic growth and waves of capital spreading worldwide,” said Michael Byers, a professor of global politics and international law at the University of British Columbia in Vancouver. “They’re certainly naïve to China’s approach to acquiring high tech from other countries, and they haven’t pushed hard on getting answers before allowing deals to go through.”
In March 2017, the government of Prime Minister Justin Trudeau approved the sale of a Montreal laser company to a firm partly owned by the Chinese government, despite objections from security officials in the previous Canadian government. In June 2017, Canada waived a security review for a Chinese takeover of Norsat International, a Vancouver high-tech company that provided satellite technology to the United States military.
Mr. Sun’s company, Istuary Innovation Group, initially appeared to represent the positives of Chinese investment. His company brought jobs and high-tech business to Vancouver. But a review of the company’s finances and interviews with former employees reveal a murky web of financial and previously undisclosed ties to the Chinese government.
Mr. Sun, 45, who goes by the name Ethan, founded Istuary in 2013 in a Vancouver Starbucks, just as the Canadian government was welcoming greater Chinese investment. At its peak, the technology incubator and venture fund occupied two floors of a downtown Vancouver office building, where engineers toiled on semiconductors, robotics, big data analytics and facial recognition. By 2017, Istuary had 24 offices around the world, including in Beijing, Shanghai, Los Angeles and Toronto.
The company’s growth helped give Mr. Sun access to Canada’s political elite, relationships that were nurtured through political donations and corporate sponsorships. Photos he posted online show him smiling with Prime Minister Justin Trudeau during a trade mission in China. Government officials in British Columbia praised Mr. Sun for creating Canadian jobs.
A Vancouver government agency signed a contract with Chinese industrial parks to expand Istuary’s operations. Istuary joined publicly funded Canadian organizations to do research. Canada’s immigration ministry approved the company for a federal startup visa program that lets foreign entrepreneurs obtain permanent residency.
“The government gave us really good support,” Mr. Sun told a Canadian business summit in 2015, according to a video of his speech posted online.
Yet some of Istuary’s work provoked concern among employees.
Eric Hsu, 39, an American data scientist hired by Istuary’s Vancouver office in 2016, said he worked on artificial intelligence capable of recognizing a person’s face across multiple surveillance feeds or detecting specific human behavior, like fighting. “A lot of these security applications were both humanitarian and ethically troubling,” he said in an interview. “Chinese clients had lots of ideas for ways they would use our applications. Some of those raised red flags.”
An Istuary customer presentation reviewed by The New York Times highlighted the services its technology could offer in Chinese cities. They included the ability to recognize faces through security cameras and run them through databases, as well as track people’s personal relationships. It also highlighted other services, like tracking crowds and land records.
Mr. Hsu said he attended trade shows in China where Mr. Sun pitched Istuary’s artificial intelligence technology to potential customers interested in products designed to prevent prisoner suicides or for detecting criminal activity.
Human rights groups say Chinese authorities have been zealously using big data collection, A.I. and facial-recognition technology to upgrade Beijing’s mass surveillance efforts.
Mr. Sun enjoyed ties to the Chinese government that his Canadian workers and investors say he did not disclose.
Kuang’en Network Technologies, a cybersecurity company he founded in Beijing in 2014, specialized in industrial control systems for some of China’s biggest state-owned enterprises.
State Grid, China’s national power distributor, said it banned Kuang’en, among other companies, in 2016 from bidding on public contracts because of collusion, without offering details. But that year, Kuang’en formed a joint venture with another cybersecurity firm, BeijingVRV, whose powerful Chinese government clients include the National People’s Congress, the finance and foreign ministries, military contractors and public security agencies.
According to corporate documents and Mr. Sun’s employees in China, Istuary and Kuang’en shared funding, workers, technology, office space and shareholders, including Mr. Sun’s wife, Hu Yulan.
Former Istuary employees in Vancouver said the company’s collapse began last spring with a series of missed payrolls and final paychecks in May 2017. Many stayed at their jobs anyway.
“Sun kept giving us false hopes,” said Manivannan Gajendran, who led an Istuary quality testing team in Vancouver. He said he took out a $15,000 line of credit to cover his daily expenses while he waited for money that never came.
By then, Mr. Sun had gone back to China. In August, Istuary investors in British Columbia sued Mr. Sun and his wife, accusing the couple of illegally using funds to purchase two multimillion-dollar homes in Vancouver.
Canada’s immigration ministry suspended Istuary from the startup visa program after learning of the allegations. In an email, a ministry spokeswoman said it had gathered information on Istuary after the company was recommended by an industry association, and “found no reason to reject the designation recommendation at that time.”
Mr. Sun did not respond to interview requests made through his Vancouver lawyer. But he denied the allegations in a letter posted on Istuary’s now-defunct website in October. “We are NOT a Ponzi scheme,” he wrote.
A British Columbia provincial employment department has since ordered Istuary to pay around $2.2 million in unpaid wages to more than 150 employees and has begun collection proceedings in order to seize Mr. Sun’s residential properties, a spokeswoman from the province’s labor ministry said in an email.
The fallout, and Mr. Sun’s broken promises, soon reached the company’s operations in China. According to Laura Fan, an Istuary employee in Guangdong Province, Mr. Sun claimed the company’s cash crunch was because of poor management and Chinese regulatory changes. He also blamed Chinese investors and their “political mission” for pressuring him into striking deals with American chip companies, she said.
In December, Istuary and Kuang’en’s offices began closing across China, without employees being paid for months of work. “These people never got any of their salaries,” Ms. Fan said.
Just before Christmas, former employees said, two people from a Chinese technology firm that had invested in Kuang’en camped out in the Beijing office, hoping to catch Mr. Sun. A few weeks later, debt collectors locked the doors with a heavy chain. On a recent visit to the shuttered office, trash covered a rickety cot and chairs visible in the entryway.
Someone had scrawled a large handwritten message across the glass doors: “The fraudster network fakes bankruptcy, maliciously owes salaries and cons its employees.”
Underneath was an ultimatum: “Pay us the money and we’ll unlock the place.”
Dan Levin reported from Vancouver. Juecheng Zhao contributed research from Beijing, and Cao Li contributed research from Hong Kong.
The post A Tech Guru Captivated Canada. Then He Fled to China. appeared first on World The News.
from World The News https://ift.tt/2m66e2Q via Everyday News
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Text
A Tech Guru Captivated Canada. Then He Fled to China.
VANCOUVER — Sun Yian was living the Canadian dream.
The Chinese immigrant found fortune harnessing Canadian talent to develop cutting-edge technology, everything from semiconductors to facial recognition, to take back to China. His company grew to more than 1,500 employees across China and North America, and was lauded by Canadian officials as a model for unlocking the Chinese market to create homegrown prosperity.
Then Mr. Sun stopped paying his Canadian workers and fled to China. Left behind are lawsuits from angry investors and Canadian employees who are wondering whether their work could be used to help China’s growing domestic surveillance state.
Canada has long benefited from close business ties to China, and lawmakers have courted the country as a new market for Canadian companies as well as a source of investment. Now, Mr. Sun’s story is fueling calls for heightened skepticism of Chinese money.
“Canadian officials have to some degree been blinded by China’s incredible economic growth and waves of capital spreading worldwide,” said Michael Byers, a professor of global politics and international law at the University of British Columbia in Vancouver. “They’re certainly naïve to China’s approach to acquiring high tech from other countries, and they haven’t pushed hard on getting answers before allowing deals to go through.”
In March 2017, the government of Prime Minister Justin Trudeau approved the sale of a Montreal laser company to a firm partly owned by the Chinese government, despite objections from security officials in the previous Canadian government. In June 2017, Canada waived a security review for a Chinese takeover of Norsat International, a Vancouver high-tech company that provided satellite technology to the United States military.
Mr. Sun’s company, Istuary Innovation Group, initially appeared to represent the positives of Chinese investment. His company brought jobs and high-tech business to Vancouver. But a review of the company’s finances and interviews with former employees reveal a murky web of financial and previously undisclosed ties to the Chinese government.
Mr. Sun, 45, who goes by the name Ethan, founded Istuary in 2013 in a Vancouver Starbucks, just as the Canadian government was welcoming greater Chinese investment. At its peak, the technology incubator and venture fund occupied two floors of a downtown Vancouver office building, where engineers toiled on semiconductors, robotics, big data analytics and facial recognition. By 2017, Istuary had 24 offices around the world, including in Beijing, Shanghai, Los Angeles and Toronto.
The company’s growth helped give Mr. Sun access to Canada’s political elite, relationships that were nurtured through political donations and corporate sponsorships. Photos he posted online show him smiling with Prime Minister Justin Trudeau during a trade mission in China. Government officials in British Columbia praised Mr. Sun for creating Canadian jobs.
A Vancouver government agency signed a contract with Chinese industrial parks to expand Istuary’s operations. Istuary joined publicly funded Canadian organizations to do research. Canada’s immigration ministry approved the company for a federal startup visa program that lets foreign entrepreneurs obtain permanent residency.
“The government gave us really good support,” Mr. Sun told a Canadian business summit in 2015, according to a video of his speech posted online.
Yet some of Istuary’s work provoked concern among employees.
Eric Hsu, 39, an American data scientist hired by Istuary’s Vancouver office in 2016, said he worked on artificial intelligence capable of recognizing a person’s face across multiple surveillance feeds or detecting specific human behavior, like fighting. “A lot of these security applications were both humanitarian and ethically troubling,” he said in an interview. “Chinese clients had lots of ideas for ways they would use our applications. Some of those raised red flags.”
An Istuary customer presentation reviewed by The New York Times highlighted the services its technology could offer in Chinese cities. They included the ability to recognize faces through security cameras and run them through databases, as well as track people’s personal relationships. It also highlighted other services, like tracking crowds and land records.
Mr. Hsu said he attended trade shows in China where Mr. Sun pitched Istuary’s artificial intelligence technology to potential customers interested in products designed to prevent prisoner suicides or for detecting criminal activity.
Human rights groups say Chinese authorities have been zealously using big data collection, A.I. and facial-recognition technology to upgrade Beijing’s mass surveillance efforts.
Mr. Sun enjoyed ties to the Chinese government that his Canadian workers and investors say he did not disclose.
Kuang’en Network Technologies, a cybersecurity company he founded in Beijing in 2014, specialized in industrial control systems for some of China’s biggest state-owned enterprises.
State Grid, China’s national power distributor, said it banned Kuang’en, among other companies, in 2016 from bidding on public contracts because of collusion, without offering details. But that year, Kuang’en formed a joint venture with another cybersecurity firm, BeijingVRV, whose powerful Chinese government clients include the National People’s Congress, the finance and foreign ministries, military contractors and public security agencies.
According to corporate documents and Mr. Sun’s employees in China, Istuary and Kuang’en shared funding, workers, technology, office space and shareholders, including Mr. Sun’s wife, Hu Yulan.
Former Istuary employees in Vancouver said the company’s collapse began last spring with a series of missed payrolls and final paychecks in May 2017. Many stayed at their jobs anyway.
“Sun kept giving us false hopes,” said Manivannan Gajendran, who led an Istuary quality testing team in Vancouver. He said he took out a $15,000 line of credit to cover his daily expenses while he waited for money that never came.
By then, Mr. Sun had gone back to China. In August, Istuary investors in British Columbia sued Mr. Sun and his wife, accusing the couple of illegally using funds to purchase two multimillion-dollar homes in Vancouver.
Canada’s immigration ministry suspended Istuary from the startup visa program after learning of the allegations. In an email, a ministry spokeswoman said it had gathered information on Istuary after the company was recommended by an industry association, and “found no reason to reject the designation recommendation at that time.”
Mr. Sun did not respond to interview requests made through his Vancouver lawyer. But he denied the allegations in a letter posted on Istuary’s now-defunct website in October. “We are NOT a Ponzi scheme,” he wrote.
A British Columbia provincial employment department has since ordered Istuary to pay around $2.2 million in unpaid wages to more than 150 employees and has begun collection proceedings in order to seize Mr. Sun’s residential properties, a spokeswoman from the province’s labor ministry said in an email.
The fallout, and Mr. Sun’s broken promises, soon reached the company’s operations in China. According to Laura Fan, an Istuary employee in Guangdong Province, Mr. Sun claimed the company’s cash crunch was because of poor management and Chinese regulatory changes. He also blamed Chinese investors and their “political mission” for pressuring him into striking deals with American chip companies, she said.
In December, Istuary and Kuang’en’s offices began closing across China, without employees being paid for months of work. “These people never got any of their salaries,” Ms. Fan said.
Just before Christmas, former employees said, two people from a Chinese technology firm that had invested in Kuang’en camped out in the Beijing office, hoping to catch Mr. Sun. A few weeks later, debt collectors locked the doors with a heavy chain. On a recent visit to the shuttered office, trash covered a rickety cot and chairs visible in the entryway.
Someone had scrawled a large handwritten message across the glass doors: “The fraudster network fakes bankruptcy, maliciously owes salaries and cons its employees.”
Underneath was an ultimatum: “Pay us the money and we’ll unlock the place.”
Dan Levin reported from Vancouver. Juecheng Zhao contributed research from Beijing, and Cao Li contributed research from Hong Kong.
The post A Tech Guru Captivated Canada. Then He Fled to China. appeared first on World The News.
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AI Looms Over the City: the Kaiju Approach
I began tapping, it grew louder, then I thumped the lectern, then again (louder). That woke them up. I always enjoy seeing the mixture of shock, awe, gasps, disbelief, puzzlement and smiles as I speak about the New Fund Order: where Technology meets Finance meets Philosophy, meets Science Fiction.
Armed with my walking stick to accentuate points with dramatic gesturing motions, I would tell them that in a New Fund Order, Artificial Intelligence (AI) looms over all of us like a kaiju*, a giant 200 foot Godzilla. Bluntly put, Finance needs to find new solutions through Technology or become obsoleted by it.
*Kaiju (怪獣 kaijū) is a Japanese word that means “strange creature,” often translated as “monster” or “giant monster”
Today the looming threat of AI seems obvious and very real. Why then did Finance so badly underestimate the threat for 20 years? There was certainly a sense of complacent containment. To some extent the City of London had assumed it had controlled Technology after it moved to electronic trading in the 1986 ‘Big Bang’. The de-regulation and computerisation of the City.
Be it London or New York, Tokyo or Geneva the City, in its broadest catholic sense, had after all funded the automation of blue collar roles over 40 years, without fuss, without remorse, without resistance give or take the odd union strike. Indeed the systematic breakdown of worker unions and labour was key to reducing man hours, reduce workforces, to lower operating costs and allow companies to deploy CapEx into machines. There was a sense then that Finance held sway over the purse strings of Technology, the capitalisation of Silicon Valley and the Internet through the 1990s and 2000s. And that was true, then.
However since the Dotcom crash Technology had kept accelerating. A series of market crashes opened the way for Tech Disrupters. Those crashes combined with a collapse in trust in big finance and disintermediation of balance sheets of large pension schemes and banks. To now curb those ‘bankers’, the industry moved from self regulation back to statutory regulation. Investors began to put faith in technology over Finance. Assets also started to flow through index baskets, the influence of Finance was on the wane. I have seen that change coming, having worked through 3 major market crashes in 1997, 2001 and 2008. Throughout I have worked for a long time as an educator, writing Finance textbooks and working towards better professionalism therein. My industry work now takes me into broader areas such as technology, costs, transparency, Environmental Social Governance (ESG), industry consolidation, product innovation, Investment Governance and supporting the growth of Fintech in my sector. Using my observations I was motivated in 2015 to write ‘New Fund Order’, discussing “digital death” for my profession and the underlying reasons.
It is somewhat fitting to note that, as a born Scotsman and where I am still based today, Scotland was the birthplace of analogue Finance and therefore apt to consider how might Scotland’s Finance Industry adapt to AI. Ground zero.
Finance 2.0 has been coming heavily from the US. Indeed halo US companies like Google (Alphabet), Microsoft, Facebook were not only changing Finance externally but also becoming the largest capitalised stocks within it. Asia Technology joined the party through Samsung, TenCent and Alibaba. This has created a huge feedback and validation of Technology as both a source of economic growth and social advancement on a global scale.
Consequently investors became more familiar with Technology in their own lives then they were becoming more attune to Technology managing their Finances. The desire for faster information, what we call the latency effect saw a rapid shift to individuals away from intermediaries. Now the public could ask information previously privileged to the few and without an information or technology advantage the role of Finance has become exposed. A simple fact utterly underestimated by the industry.
Over time Finance had been built on rules, laws and regulations, these were considered sacrosanct and unassailable; with a generous sprinkling of subjective bias and judgement. The industry had developed technology previously to be subservient and most importantly out of reach of clients. The number of times I heard about an actuarial consultant ‘turning the wheel’ on a long-standing model, all the time charging clients a quantum for the privilege. Frankly this is absurd industry complacency. It simply couldn’t hold up to inevitable transparent scrutiny. The likes of writer Martin Ford and MIT have noted the unrelenting substitution for white collar roles in other sectors, so too is change coming to Finance professions.
“the hurdle machines have to cross to out-perform humans with college degrees isn’t that high.” Martin Ford, Author ‘The Rise of the Robots’.
“The end game scenarios seem kind of severe. From here on in, it’s really, really, really going to change and it’s going to change faster than we can handle.” Matt Beane, MIT.
Yet the acceleration of technology alone could not not have unseated the rocksteady position of Finance so readily; it also took the latent issues within the establishment to bring about its own demise. Our own Monsters!
Why can’t we rely on the human condition alone to deliver effective Finance? Why does it break down or resist automation? Well, we assume only humans are capable of empathy, trust, making good decisions but consider. Alas the human condition is not itself constructive;
Karl Marx wrote “the more the division of labour and application of machinery extend, the more does competition extend among the worker”
While George Orwell wrote “on the whole humans want to be good but not that good and not all the time” Lastly JP Morgan, forefather of modern Investment Banking said ‘someone does a thing for two reasons, a good reason and the real reason.”
Thus it is no surprise then that Finance has achieved both amazing things but also much to be criticised for. Our industry is a litany of poor practice, high fees, big bonuses, fraud, bubbles, manipulation, market crashes, Ponzi schemes. Unsurprising when the populous loses trust in the appointed class then it opens the door to monsters. Thus technology was no longer benign for its Finance masters.
Meanwhile you need only take a trip to the airport, open a newspaper or get into a taxi to see the marketing power of Finance. Since the 1980s Finance had become big business, deeply human intensive and highly compensated. That introduced strong economic incentives to resist change. When we talk about behaviours, the human condition is susceptible to many, driven by a desire to succeed, to make profit, fear, greed. Since the Great Financial Crisis, Asset Management had grown as capital moved from bank balance sheets and defined benefit pension schemes through to individual retirement accounts and into mutual funds. We called this disintermediation. It moved the capital at risk from employers to workers. Now workers were paying Finance directly, a form of taxation that helped the division of wealth as companies were released to focus on shareholder returns.
In response to the influx of assets, asset managers have increased their portfolio desks, salaries and bonuses swelled, fuelled by an endless supply of graduates, CFAs, MBAs and economic migrants, from investment banking, hedge funds and sell side research. More people lead to higher operating costs, complexities and inefficiencies to manage investor money. The Old Fund Order can be typified as;
• Human Intensive • Human-Human • Complex Value Chains • High Salaries and Fees • Information Advantage • Fraud and Ponzi schemes
Where Finance has then become tested in recent years somewhat ironically is justifying its own economic value. So what is Optimum Economic Value (OEV)? In its purest form, we recognise the Finance value chain is itself an alignment between a customer and a financial outcome.Think of it as a piece of rope. How long and how straight is it, is it loose or is there a clear tension (a directness and transparency) between the two points?
Finance is defined by lots of parties involved in the front, middle and back office, it is people intensive. Think of a traditional portfolio of active managed funds sold by a distributor on the advice of a financial adviser, bundled into a retirement product, regulated, consulted, traded, operated, audited. Lots of pound signs. Having largely operated unfettered for 20 years, what exposed these value chains were two-fold; The immutable growth of computing power known as Moore’s Law, the doubling of computing power at least every 2 years. Secondly Parkinson’s Law, a 1958 paper that observed that organisations became less efficient the more people you hire. We also call Parkinson’s Law ‘Coefficients of Inefficiency’ and historical examples have included; the Roman Empire, Greater London Council, the Civil Service, The Department of Defence, IBM, British car industry and Banks. Likewise Finance was quickly finding itself both outdated, inefficient and expensive.
Despite this, Finance for over a decade tried to box, restrict and otherwise compartmentalise ROBO, portraying it as a dim-witted ‘Robbie the Robot’ from 1956 Forbidden Planet. Big mistake! CitiGroup believed RoboAdvisors will hit $5 trillion AUM in the next decade. A more recent study by Deloitte estimated that “assets under automated management” (including hybrid offerings) in the U.S. will grow to U.S. $7 trillion by the year 2025 from about U.S.$300 billion today. More alarming (if you are a financial adviser) is that consultants A.T. Kearney predicts that assets under “robo-management” will total $2.2 trillion by 2021. Another view of Fintech is that of the 1933 classic ‘KING KONG’. A loud chest-beater. All noise, but no bananas? Certainly this was the crux of the audience questions. Firstly there is a lot of noise, mostly from consultants and big business but change is happening and at an accelerating rate. Simply note how the make-up of Finsbury Square is changing and innovation is spilling out of Old Street into Threadneedle, into EC2. The very heart of the City.
No longer just noise then, what is being systematically removed is human intensity to be replaced by deep learning and AI. Until the late 1970s hundreds of clerks updated futures prices on chalkboards and recorded them on Polaroid film. Thousands of traders walked the pits, hundreds of thousands accountants, Actuaries, typing pools, administrators and computers processed, calculated, deliberated and predicted.. all gone! The first major electronic platform was Instinet, that could bypass the trading floor. Superseded in the 80s by Bloomberg and Archipelago, which began to replace floor traders. In 2000 there was over 150,000 involved in securities and commodities contracts in New York alone. In 2016 there were less than 100,000 yet the asset market has grown five fold since 2000.
Alternatively take Actuaries: In 2009, 110 students qualified to become Associates of the Faculty or the Institute of Actuaries, 335 qualifying as Fellows of the Faculty or the Institute of Actuaries. In 2016 the Institute and Faculty of Actuaries reported 29,000 members (December 2016), 52% of whom were students, 73% of members were 40 years old or under. With older actuaries retiring; what is the future for the next generation given traditional actuary roles are in demise? Martina King writing for the Actuarial Post. “In the Insurance sector, reducing the number of highly skilled, highly paid actuaries by replacing them with technology is attractive. It’s a potentially scary prospect for actuarial careers.. there are few open positions for individuals with predictive analytical skills. In other sectors too, organisations are slotting into job ads the request for experience in machine learning. It’s worth the investment in gaining these skills to get ahead.” We are seeing record numbers of CFAs, MBAs but a reduction in number of roles to fill, as incumbents work longer into life. Any role that is based mostly on rules rather than creative critical thinking are obviously at risk but ultimately all roles are in danger. Regulation key help preserve for a time driven by our desire for human accountability but this will ebb. Roles that will survive longer-term will adapt to work with AI. My own profession is not immune to this threat. The Fund Selection community is quickly waking up to the threat and something we are actively discussing at the Association of Professional Investors (APFI). We are now seeing a new wave of fund analysis, selection tools and digital fund warehousing, which is making fund selection more accessible and transparent. The information advantage is closing. AI will change how mutual funds are analysed and selected in future.
With the closing information gap, the challenges for Fund analysts can then be summarised as growing transparency, the lack of performance persistency from active fund managers, which has a knock-on effect onto Fund Selectors. Also the decomposition of activeness itself, into factors but also luck and risk-taking. Consider the following studies;
• Past Performance Persistency: Mark M. Carhart. Journal of Finance 1997, Blake and Timmermann 2003, SJ Brown 2006, Luckoff 2011, Barclays Capital 2012 • The effect of Marketing and Commission on Broker-sold funds: Del Guercio and Jonathan Reuter, University of Oregon, 2012, 2015 • Herustics and Behavioural Finance: Khaneman and Tversky, 1974, 2007, 2015, • Active Share: Cremmer, Patijesto, 2010, 2013,
After all if Fund managers cannot add value then what value do the people who select them offer? Other issues include inducements, marketing, survivorship bias and behavioural biases. Obvious symptoms if this shift include the large shift towards index investing and Exchange Traded Funds (ETFs). What we are now moving towards is greater mass objectivity away from individual subjectivity. Performance and quant based analysis is rapidly becoming codified and automated. Meanwhile qualitative Fund analysis, which is itself judgemental based, too is undergoing change. Originating from the Harvard Marketing Mix and later management consulting like Booms & Bitner and Russell. Profile + Process + Portfolio + People + Price… + Pi? Such approaches are coming under scrutiny, as investors get better direct access to fund information. The very value of such analysis is now in doubt. What is now changing is the disruption from crowd research platforms that reduces the information advantage and thus premium of traditional analysts.
So if the value of human Intelligence is left in question, what then for Artificial Intelligence? AI has entered the daily narrative, the term “artificial intelligence” is applied when a machine mimics “cognitive” functions such as “learning” and “problem solving”. Today is hard to fathom just what the limitations are for AI. It certainly offers advantages both in the rapid assimilation of Big data, learning from changes in data and predictive modelling. This takes us back to our friend Robbie the Robot. Consider first that AI algorithms fall into many classes and have already permeated various corners of society;
• Search and optimisation: program synthesis • Logic and information consciousness • Probabilistic methods for uncertain reasoning • Classifiers and statistical learning methods • Neural: feed forward, recurrent, differentiable • Control theory • Languages and translation • Evaluating progress and self-learning • Complex Adaptive Systems
For example a simple model was already proposed by Ludwig and Pivioso in their 2005 machine-learning paper. They also considered what sort of Algo should a Fund Selection Robo adopt from 3 choices: Decision-Tree, Neural Network or a Naive Bayes approach. Ludwig and Pivioso concluded that all three approaches outperformed simple scoring models typically employed by human Fund Selectors. What is frightening was that this was achieved with only a simple array of data inputs. Let’s remind ourselves what these approaches do, Ludwig and Pivioso described them as;
“Decision-tree algorithms construct a flowchart-like structure where each node of the tree specifies a test of an attribute, each branch corresponds to an outcome of the test, and each leaf node represents a classification prediction.
Neural networks are represented by set of interconnected units, each unit has multiple inputs and produces a single output. The signals are weighted, transforming the incoming signals, weighted and passed to the output units.
Bayes – The classifier learns the conditional probability of each attribute value from the training data given the classification of each instance. To classify an unknown instance, Bayes’ theorem is applied to compute the probability of a particular class value given the attributes of the new instance.” Now consider the technology advancement and complexity of data available 13 years on since that paper. AI can now begin to replicate judgemental nudges and biases based on common material changes like price, attribution data, manager experience, tenure, benchmark, fund changes, moving firm, news flow and so on. I began to imagine if fund selection can be derived from AI: to screen thousands of funds and make judgements, shortlist recommendations, assess suitability and compatibility against a mandate or investor needs and monitor the outcome of those decisions. This is especially so when we consider key advances in Differentiable Neural Computing (DNC). What DNC does is create digital memory, DNC can literally read and rewrite memory, it becomes iterative. It was used to enable AlphaGo to beat the best Go player in the world across 250 to the power 150 possible moves. Secondly add program synthesis, a program like DeepCoder can literally data-mine and piggy-back other algorithms to solve any problem in seconds and there is around 30,000 GB of new data on the Internet every second for these programs to access.
This takes us the toughest question. Can the human condition still infect AI? It is the question that wrangles the industry today. Can ROBO act in a Fiduciary way, to put the interests of the client ahead of others? This is clearly a concern for regulators not only in terms of the original coding but also subsequent changes as a consequence of self- learning. Such protections could become hardwired, needs monitored and programmers regulated. Firstly AI can follow the Three Laws of Robotics by the science fiction author Isaac Asimov.
1. A robot may not injure a human being or, through inaction, allow a human being to come to harm. 2. A robot must obey the orders given to it by human beings except where such orders would conflict with the First Law. 3. A robot must protect its own existence so long as such protection does not conflict with the First or Second Laws.
One of the key problems today in big firms is that Finance staff do not sufficiently understand code and coders do not understand Finance. Regulators often understand neither. This will require tomorrow’s coders to have both technical knowledge of Finance and programming expertise to satisfy a Fiduciary Test. This is where small Fintech start- ups can exploit this void, in the detail between Technology and Finance. Consider that if AI can be programmed to remove human error then what role is left for regulators? It will change. In response the Financial Conduct Authority proposed a new Certified regime (CP17-25) for anyone with responsibility for:
• approving the deployment of a trading algorithm or a material part of one • approving the deployment of a material amendment to a trading algorithm or a material part of one, or the combination of trading algorithms • monitoring or deciding whether or not the use or deployment of a trading algorithm is or remains compliant with the firm’s obligations
Ultimately the fiduciary duty falls initially to the programmer of the algorithm that instructs the programme to make decisions. Ultimately a regulated person has to be accountable for the programmer, the program and the outcomes. Taking these laws it is not unfathomable that computers can be programmed to put the interest of the client first and foremost to;
1. Uphold a fiduciary standard and all conflicts of interest must be disclosed. A computer has no conflicts unless they are first programmed. Like a driverless car its’ function is to serve the purpose without question. 2. A fiduciary has a “duty to care” and must continually monitor not only a client’s investments, but also their changing financial situation. A computer can monitor 24/7 continuously and is not restricted by fatigue or the adviser/fund selector’s diary. A sequence can be included if the client does not supply an update within x days or could be linked to the client’s accounts, email, diary and so on. 3. Understand changes to a client’s risk tolerance, perhaps after a painful bear market. Perhaps there was a family change. Under the suitability standard, the financial planning process could begin and end in a single meeting. For fiduciaries, that first client meeting marks only the beginning of the legal obligation. We have seen the term ‘orphan clients’, and humans have a great track record of dropping less profitable clients (value pools). 4. Monitor, adapt, assess fund changes. The reality is that many fund investors do not monitor their decisions often enough or with objectivity. They are susceptible to heuristic biases. Yet a computer can continuously monitor cost, turnover, risk, changes and performance. It can monitor twitter feeds, performance, fund manager commentary, portfolio positions, information supplied by the client, instructions, deal flow, thousands if not millions of data points analysed through neural networks.
Adding in Asimov rules into the AI subroutines become the safety net to ensure the program operates efficiently and investor aims are managed. AI can even offer the Robo Fund Selector a framework to set ESG criteria and identify better solutions to improve ethical and sustainable investing. It can employ new metrics to help investors understand their impact on Green House Gas emission, the economy and environment. According to the New Fund Order, Finance structures will continue to change over the next two decades and beyond, an unrelenting digitalisation of the value chain. As mutual funds in turn become managed by AI then so too will humans become more challenged to understand, select and manage them. They need AI to solve the equation. How then to survive the kaiju, how to survive digital death? Be prepared, my lecture on AI Robo Fund Selection is available at FintechCircle Institute. https://institute.fintechcircle.com/courses/ course-v1:Beckett+C1+Programming_AI_Robo_Fund_Selection/about
I finished by saying ‘if this sounds all too monstrous then you’re probably right. Godzilla approaches.’ Cue nervous clap, more stunned disbelief and many interesting questions. A day later I was contacted by one of the students who had attended to say she would change the focus of her dissertation. Hope then.
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Will Designers Be Replaced by Robots?
Adrian Shaughnessy, writer at the Creative Bloq, discusses how automated processes could threaten the role of the designer.
"During my time as a graphic designer, I've experienced nearly everything – short of physical violence – that working life can throw at you: recessions, legal disputes, defaulting clients, and of course, the thrill that comes with completing a successful project.
But two events – both of which turned the practice of graphic design on its head – stand out as life changing. The first was the arrival of the Macintosh computer. For all practising designers at the time, computerisation necessitated an extensive rethink of the craft: no more mechanical artwork, no more paste-up, no more typesetters, no more expensive retouchers. Many of the tasks previously done by repro houses were taken over by designers sitting in front of computer screens. It was the beginning of a new age of digital self-reliance and a period of massive reorientation.
The second event was the arrival of the internet. Here was a new way of thinking about, and making design. Suddenly, designers no longer had complete control over how their work was received. The inability to control browser use, screen ratios and fonts had a decisive impact and old rules such as the number of characters per line length rule became redundant. Even the users themselves could mess with the appearance in ways unthinkable to designers trained in print design, where layouts were fixed once they left the designer's hand.
Is VR the future of design?
These two events threatened to shrink the role of the designer, but the opposite happened. There are now more graphic designers and students than ever before. Design is a global industry embedded in, and inseparable from, business and culture. For many, graphic design is as much a lifestyle choice as a career choice. We do it because we love it.
The rise of automation
If design and designers can be said to have benefited from these two shocks in the long run, there are concerns that the craft and the profession might not survive quite so well. Is design about to meet its Uber moment? Is AI about to take on the role of the designer? Is the surge towards a fully automated world about to engulf design?
It might seem that automating the design process is impossible. You might assume that the creative imagination is the least likely arena to be taken over by machines, that bots are for routine production, not conceptual thinking. In reality, the process is already underway.
"It might seem that automating the design process is impossible... In reality, the process is already underway"
Social media has usurped many of the roles previously done by designers. You can start a business with a Facebook page (or as one expert calls them "Facebook pages … the new small-business homepage"). For many, access to a Twitter or Instagram account is all the design they need.
The automation of countless realms of everyday life is already at an advanced level: entire factories are operated by robots; legal contracts and stock market trading are routinely done by bots; automated warehouses, ATMs, and user operated supermarket tills mean fewer jobs in industries once regarded as high volume employers; driverless vehicles signal the end for the millions of people who drive for a living. Why should design be any different?
In the book, Inventing the Future, Nick Srnicek and Alex Williams state that: "anything from 47 to 80 per cent of jobs are likely to be automatable in the next two decades." They also note that the "roboticisation of services is now gathering steam, with over 150,000 professional service robots sold in the past 15 years. Under particular threat have been routine jobs – jobs that can be codified into a series of steps."
The demise of web design
Surely this lets design off the hook? We can't expect machines to make the irrational, gravity-defying leaps of imagination that designers make, can we? What about the designer's ability to capitalise on accidents and unforeseen coincidences? Surely this sort of cognition is beyond the bot?
Not so. We live under the dictum that anything that can be automated will be automated. And nowhere in the design world is this idea more advanced than in web design. In a post titled Why Web Design is Dead, on the website UX Magazine, designer Sergio Nouvel notes: "Most of the content you see on the web today is run by some framework or service – WordPress, Blogger, Drupal, you name it. Frameworks provide you a foundation and shortcuts so you spend less time struggling with the creation of a website, and more time creating content. As a consequence of the ubiquity of these frameworks, a world of free and paid templates lets you start with a professional-looking design in minutes. Why hire a web designer if you can achieve a fairly acceptable design for a fraction of the cost using a template?"
The Grid, a San Francisco and Berlin-based startup, was the first to announce that it has created a website builder that uses artificial intelligence. It enables users to upload images and text or make use of its library of colour combinations and images, and then, using AI, it performs all the key design functions: positioning of images, placement of text, selecting colours and sculpting a unique, customised website. The Grid says it doesn't use templates, but 'layout systems', which it claims offers greater flexibility.
With The Grid, if you don't like what you see, you hit the Redesign button and in seconds a different layout appears. The Grid's promotional video gives the impression of effortless, nearly instant success. It's a seductive pitch. But not everyone is impressed.
Various webinars offer a less convincing glimpse into The Grid's AI approach to web design. Watching these critical takedowns, I was reminded of the early days of DTP design – gap-toothed typography and bitmapped images. But the painful DTP birthing phase didn't last long. Designers mastered the software, the software improved, and so did computing power. You wouldn't lose money betting on AI websites becoming much better in the future.
A grit-free process
It's easy to see why clients would be attracted to this grit-free process. There's no more time spent listening to pesky designers defending their design decisions, no more waiting around for new designs to arrive. And here's the clincher: no more redesign fees. Instead, clients inhabit a fragrant world of endless iteration and seemingly limitless choice.
The Grid is not alone in its quest. In September 2016, the website Tech Crunch reported that Canva, a design platform for web and mobile, had announced a new infusion of $15 million in funding and a doubling of its valuation in 12 months. This added capital was reported to have brought Canva's valuation up to a whopping $345 million.
What makes Canva so attractive to the guys with the money is the fact that it can be used by non-designers. Canva claims it only takes 23 seconds to become a proficient user of its software. 10 million people are allegedly using it to design business cards, posters, presentations, and graphics for social media.
Looking at the formulaic design featured on the site, it's hard to take seriously claims that 'anyone can become a designer' with Canva. It's easy to laugh at some of the work these sites post as examples – most of it looks as if it has been designed by someone on autopilot. But will we be mocking in five years' time? When we look at what is happening in AI, it seems foolish to dismiss attempts to automate design.
AI-driven design
When I talk to designers about the likelihood of AI taking over the tasks of designers, I'm met with scepticism. But this strikes me as short-sighted. In a detailed account of Google's work in AI, published in the New York Times Magazine, the journalist Gideon Lewis-Kraus writes about the company's use of artificial intelligence to transform Google Translate. Anyone who has used the translation service will know that its results are hit and miss, always require correction, and are rarely idiomatically correct.
All that is changing. In its new AI-driven version, Google Translate is producing astonishing results. Developed by the Google Brain team, 'artificial neural networks' (much like those in our skulls) are offering an alternative to traditional computer programming and represent a move towards self-learning machines. Using these networks, robots can then acquaint themselves with the world via trial and error in the same way that children do, giving machines "something like human flexibility."
Lewis-Kraus reminds us of Alan Turing's famous test for an artificial general intelligence: "A computer that could, over the course of five minutes of text exchange, successfully deceive a real human interlocutor. Once a machine can translate fluently between two natural languages, the foundation has been laid for a machine that might one day 'understand' human language well enough to engage in plausible conversation."
If Google's new translation service is close to fulfilling Turing's criterion, then it's not much of a stretch to imagine AI tackling more sophisticated design problems than shifting elements around on a webpage. Most of the everyday design we encounter can be broken down into a simple set of principles that can be codified, and it seems highly probable that a machine can learn the rules of typography, the golden ratio and the rule of three. And it's no gamble to assume that cost-culling businesses will latch onto the money saving benefits of AI design.
Adapt to survive
What should designers do? AI-driven design already has the potential to remove some, or most of the production based tasks that designers do. Need 100 web banners for a global ad campaign, all with different information and numerous different languages? No problem. Robots capable of handling such routine tasks will result in fewer design production people.
But will the sharp end of design be affected? Eventually, yes, and just as human beings have learned to do since the introduction of industrialisation, we must adapt. It's my belief that designers are well equipped to do this. Teaching flexibility and a willingness to learn may be the biggest challenge facing the world's design schools.
In the information age, we may be looking at a world without paid work
Of course, this doesn't only apply to design. In the information age, we may be looking at a world without paid work. This takes us into the political realm, and subjects that governments are avoiding. It poses questions such as adopting a basic income, and the relearning that will be needed when the post-industrial world is replaced by one of unlimited leisure. These topics are discussed in academia and future-gazing think tanks, but we all need to be thinking about them sooner rather than later.
Halfway through writing this, I had a sudden, sobering glimpse into a machine-driven world. My five-year-old iMac died. The screen went black, none of the usual remedies helped and it was Christmas, so there was no chance of emergency repairs. It was a personal mini-disaster. But this is what happens to machines: they break. Perhaps their fallibility is the only thing between us and an AI future.
This article originally appeared in Computer Arts issue 263; buy it here!
Source URL: Creative Bloq
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