rethink everything

    Will Artificial Intelligence pave the way for a new creative renaissance?

    RE2017-Human_AdPages.jpg

    By Henrietta Thompson

    A dystopian world where science fiction has turned into fact, or a new renaissance era worth looking forward to?

    While many fear the rise of a robot population that is inherently smarter than us, artificial intelligence could be the most liberating technology humans have ever devised. Perhaps we just need to prepare for it.

    Early in 1943, in a canteen at AT&T's Bell Labs (AT&T) in New York, the maverick codebreaker and inventor of digital computing, Alan Turing, was confidently holding court*, explaining just how smart he expected thinking machines, or electronic brains as he called them, would one day become.

    "I’m not interested in developing a powerful brain," he joked. "All I’m after is just a mediocre brain, something like the president of AT&T."

    Well Turing's heirs have rather bettered that: today's artificial intelligence (AI) systems could scarcely be described as mediocre. In March 2016, an AI system called AlphaGo, developed by Google-owned firm DeepMind, famously beat the world Go champion by four games to one. This victory of machine over human minds matters because Go is a devilishly difficult game of strategy that has billions of possible moves – more than there are atoms in the universe in fact – that people take decades to master it. And even then, given the number of possible moves, they can only really play by intuition and feel.

    An insult to humanity and its intellect, it’s perhaps no surprise that AlphaGo's win has sparked a backlash. Based on a spectacular advance in deep machine learning, it has led to some dubbing AI as a negative development. Economists at august bodies – from the World Economic Forum to the Bank of England – have been seemingly competing to predict which professions will disappear as the AI juggernaut sweeps humans aside.

    Are they right to be cautious, or is it simply a fear of change that’s driving the headlines?

    Over the long haul, technology is a job creator, merely changing people's roles rather than eliminating them from work entirely.

    In 2015, to see if technology breeds more work, the consultancy Deloitte in the UK analysed employment patterns from 1871 onwards. It found that, overall, technological change created more jobs than it destroyed. Losses in "dirty, dangerous and dull" jobs in agriculture and manufacturing were offset by job growth in the technology, creative, caring and services jobs, for instance.

    Given the power and applicability of AI and machine learning to just about every industrial sector, investment markets are expected to be busy with AI dealmaking in the coming years.

    Market researcher Tractica expects the global AI market to grow from $644 million in 2016 to nearly $10 billion by 2021 – and over $36 billion in 2025. That the AI market is indeed buoyant and buzzing is clear from the mergers and acquisition activity: tech majors Microsoft, Facebook, Google and Apple are all shopping for the most innovative AT&T startups – and are finding many of them in Europe.

    Google's DeepMind, for instance, has placed an AI app called Streams in London's Royal Free Hospital where it monitors vital signs of patients at risk of blood poisoning (sepsis) and kidney infections and predicts long before life-threatening problems strike when they need treatment. Just months after it was switched on, this brooding, background intelligence is predicting problems so well that it is saving each nurse two hours per day - time they can now spend face-to-face with patients.

    This chimes well with the findings of a UK government science and technology committee that looked into how we can prepare the education system for the AI revolution. It concluded in part that schools should "focus on things that machines will be less good at" for future employment - such as developing the creative expertise to look after the technology, troubleshoot it and improve it. After all, driverless cars will still need mechanics, and pilotless airliners - scary sounding for sure but they are being researched - will need air traffic controllers who look after swarms of such aircraft safely, for instance.

    MMI904_Nakedonthepiano_rethinkingAI_New Illustration_Final.jpg

    As another example of this, imagine how AI will impact the work of a portfolio or hedge fund manager. They may well find the raw mathematical part of their work can be reliably performed by a variety of algorithms, each operating on their own market analytics to predict the best trades automatically. But the numbers alone do not live in a vacuum and it is up to the manager to ascertain the degree of risk they are suggesting clients take with the financial instruments they've picked. The human factor will always be to the fore.

    Grappling with the AI revolution will certainly involve a sea change for education systems, however. First, for competitiveness sake, it will be vital to ensure people have the computing skills to further develop AI, ensure it learns how to improve itself and keep it operating efficiently and safely. But also, in the expectation that AI will be assuming certain types of role, educators will have to ensure that people grasp the importance of problem solving and creativity, too. We may well reach a time when the role of work is less important than other sources of purpose. "In a post-work society people might spend more time caring for their families and neighbours; pride could come from our relationships rather than from our careers," says labour historian and thinker Ben Hunnicutt at the University of Iowa.

    But even with intelligent machines doing much of the work, it does not necessarily follow that the hours we will have to work will utterly dominate our lives as they do now. And that raises another question: who will pay people enough in a world where, say, we only need perform two hours of creative/caring/problem solving tasks each day, rather than nine hours at the office coal face? "We ought to think about ways to make it easier and better not to be employed," urges Peter Frase, a leading "post-workist" thinker and author.

    One of those ways, suggests Microsoft's effervescent founder Bill Gates, might be simply to tax the robots. While that is an entertaining notion, it is too simplistic - punishing successful firms whose success may not actually be robot related - and will only deter companies from investing in AI, slowing the revolution. Another way, and one that is actually being trialled, is the notion of a universal basic income in which nation states funnel tax dollars back to households in a low-work economy.

    To many on the left this will sound like socialism's due dividend, a lifelong payout to compensate for evil old technology's two centuries of job theft. To the right, it will seem like a major league, undeserved welfare handout. Whatever you call it, hats off to Finland for being brave enough to test it. The diminutive nation is giving 2000 unemployed people €560 per month for two years to see how such a scheme fares - and they will still get it even if they find work. Initial reports suggest it is popular with some people - giving the entrepreneurially-minded  a safety net while they dabble with getting creative businesses like video making and web design off the ground.

    Machines that perform the amazing feat of mimicking human brains are going to need equally amazing social innovation like Finland's if we are to learn to cope with it. It is worth the candle because far from being the amusingly mediocre construct Turing initially envisioned, AI will relieve us of so much drudge work.

    As this renaissance dawns, we would do well to plan for a future in which people do what they are best at, being creative, compulsive communicators.

    The opportunities of AI – the result of human ingenuity, remember ­– are just too exciting and profound to do otherwise.

    * As related in Andrew Hodges illuminating biography: Alan Turing - The Enigma (Random House)

    Henrietta Thompson is contributing editor for Lombard Odier’s Rethink Everything. Editor-at-large at Wallpaper magazine, co-founder of Furthermore Media, and a commentator and curator on future trends, design and business, Henrietta writes columns for the Telegraph’s Luxury supplement and British Airways’ Business Life magazine and regularly contributes to a variety of other publications including the Guardian, Mr Porter, and Viewpoint. Henrietta is the author of five books and has curated exhibitions at the V&A in London, the GREAT Festival in Shanghai and Everything Forever Now, a touring exhibition for the British Council.

    1www.theguardian.com
    2www.royalfree.nhs.uk
    3www.theguardian.com
    4www.theguardian.com

    IMPORTANT INFORMATION – GENERAL MARKETING
    This is a marketing communication issued by Bank Lombard Odier & Co Ltd or an entity of the Group (hereinafter "Lombard Odier"). It is not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful, nor is it aimed at any person or entity to whom it would be unlawful to address such a document. This marketing communication is provided for information purposes only. It does not constitute an offer or a recommendation to subscribe, to purchase, sell or hold any security or financial instrument. It contains the opinions of Lombard Odier, as at the date of issue. These opinions and the information herein contained do not take into account an individual’s specific circumstances, objectives, or needs. No representation is made that any investment or strategy is suitable or appropriate to individual circumstances or that any investment or strategy constitutes a personal recommendation to any investor. Tax treatment depends on the individual circumstances of each client and may be subject to change in the future. Lombard Odier does not provide tax advice. Therefore you must verify the above and all other information provided in the marketing communication or otherwise review it with your external tax advisors.
    Some investment products and services, including custody may be subject to legal restrictions or may not be available worldwide on an unrestricted basis.
    Investments are subject to a variety of risks. Before entering into any transaction, an investor should consult his/her investment advisor and, where necessary, obtain independent professional advice in respect of risks, as well as any legal, regulatory, credit, tax, and accounting consequences. The information and analysis contained herein are based on sources considered to be reliable. However, Lombard Odier does not guarantee the timeliness, accuracy, or completeness of the information contained in this document, nor does it accept any liability for any loss or damage resulting from its use. All information and opinions as well as the prices, market valuations and calculations indicated herein may change without notice.
    Past performance is no guarantee of current or future returns, and the investor may receive back less than he invested. The value of any investment in a currency other than the base currency of a portfolio is subject to foreign exchange rate risk. These rates may fluctuate and adversely affect the value of the investment when it is realized and converted back into the investor’s base currency. The liquidity of an investment is subject to supply and demand. Some products may not have a well-established secondary market or in extreme market conditions may be difficult to value, resulting in price volatility and making it difficult to obtain a price to dispose of the asset.
    European Union Members: This marketing communication has been approved for issue by Lombard Odier (Europe) S.A., a credit institution authorised and regulated by the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg and by each of its branches operating in the following territories: France: Lombard Odier (Europe) S.A.• Succursale en France, a credit institution and regulated in France by the Autorité de contrôle prudentiel et de résolution (ACPR) and by the Autorité des marchés financiers (AMF) in respect of its investment services activities. United Kingdom: Lombard Odier (Europe) S.A. • UK Branch, a credit institution regulated in the UK by the Prudential Regulation Authority (PRA) and subject to limited regulation by the Financial Conduct Authority (‘FCA’) and the Prudential Regulation Authority (‘PRA’). Details of the extent of our authorisation and regulation by the PRA and regulation by the FCA are available from us on request. UK regulation for the protection of retail clients in the UK and the compensation available under the UK Financial Services Compensation Scheme does not apply in respect of any investment or services provided by an overseas person.
    Switzerland: This marketing communication has been approved for issue by Bank Lombard Odier & Co Ltd, a bank and securities dealer authorised and regulated by the Swiss Financial Market Supervisory Authority (FINMA).
    United States: Neither this document nor any copy thereof may be sent, taken into, or distributed in the United States of America, any of its territories or possessions or areas subject to its jurisdiction, or to or for the benefit of a United States Person. For this purpose, the term "United States Person" shall mean any citizen, national or resident of the United States of America, partnership organized or existing in any state, territory or possession of the United States of America, a corporation organized under the laws of the United States or of any state, territory or possession thereof, or any estate or trust that is subject to United States Federal income tax regardless of the source of its income.
    This marketing communication may not be reproduced (in whole or in part), transmitted, modified, or used for any public or commercial purpose without the prior written permission of Lombard Odier.
    © 2016 Bank Lombard Odier & Co Ltd – all rights reserved

    let's talk.
    share.
    newsletter.