Wednesday, February 28, 2018
Drivers facing a freezing night in their vehicles after chaos on snowbound motorway
March 01, 2018 at 02:22AM
Spotify Files to Go Public on the New York Stock Exchange
February 28, 2018 at 11:32PM
Instead of a traditional public offering, the streaming music service will pursue a direct listing of its shares, which will be traded under the ticker symbol SPOT.
Facebook’s “Cat and Mouse Game”
February 28, 2018 at 11:22PM
Facebook C.T.O. Mike Schroepfer, speaking at The New York Times’s New Work Summit, explained how artificial intelligence helps the social media giant tackle the constantly evolving threat of dangerous and offensive content.
Richard Yu on Huawei Phone Restrictions
February 26, 2018 at 07:41PM
Huawei C.E.O. Consumer Business Group Richard Yu spoke about challenges of expanding his product into the U.S. market at The New York Times’s 2018 New Work Summit.
Tech We’re Using: Mexico Has Its Spyware. A Reporter Has a Few Phones to Juggle.
February 28, 2018 at 10:41PM
Our Mexico bureau chief, Azam Ahmed, uses various strategies to keep communications safe while reporting, including the low-tech tactic of in-person meetings.
Paul Allen Wants to Teach Machines Common Sense
February 28, 2018 at 10:33PM
The Microsoft co-founder will give $125 million to his nonprofit research lab to help develop technology that adds common sense to artificial intelligence.
Tech Fix: Should You Get a Cheaper Phone? Be Sure to Look Into the Camera
February 28, 2018 at 05:40PM
The most popular smartphones can cost $700 or more. But for roughly $200, you can have a model that isn’t cutting edge but is plenty capable.
Tech Tip: You Dumped Facebook. So Why Does It Keep Sending You Emails?
February 28, 2018 at 05:00PM
If you’re still receiving “Welcome back to Facebook” messages, you may not have fully closed your account on the social network.
Why can’t we work out a technological solution for music distribution?
February 28, 2018 at 01:13PM
In February 1983 Iegor Reznikoff and Michel Dauvois, the Parisian archaeologists surveying the renowned cave pantings of the Pyrenéan Ariège, faced a conundrum. Some of the famous artworks appeared in otherwise insignificant side passages — surely our ancestors would want to decorate the larger, grander spaces?
As they surveyed the site, Reznikoff would hum to himself out of habit and, he later claimed, to ‘feel’ how each chamber sounded. In one cave in particular (Le Portel), his humming echoed noticeably, leading him to propose an experiment. The pair whistled and sang their way through the cave systems, building a ‘resonance map’ as they went. To their amazement most cave paintings were very close — to within a metre — of the most sonorous zones of the caves. Indeed, some ‘paintings’ were little more than markers, red dots indicating resonant areas of the cave system. More profoundly, some spaces only worked with singing, or with higher or deeper instruments.
In other words, our forebears of 14,000 years ago chose particular spaces for particular types of music-led ritual. “For the first time, it has been possible to penetrate into the musical world of Palaeolithic populations,” the pair surmised. Wrote Professor Steven Errede at the University of Illinois, “Perhaps these occasions were the world’s first ‘rock’ concerts – singing and playing musical instruments inside of a gigantic, complex, multiply-connected organ pipe, exciting complex resonances and echoes as they sang and played!” The capability to create music, to sing, to dance is part of what it means to be human — Darwin himself suggested our musical abilities, shared with animals and birds, emerged before our use of language. Like birds, our abilities to create and to perform music are inherent to our very existence. About 500 years ago however, something changed.
At roughly the same time as Gutenberg was designing his printing press, in the late 1600s luthier Antonio Stradivari worked out techniques to apply varnish to wood, enabling it to hold a note better, and Bach experimented with the ‘well-tempered’ clavier, tuned such that a majority of notes were mathematically aligned (meaning most scales could be played without any ‘off’ notes). Coupled with the reproduction of musical notation (thank you Gutenberg), the notion of distribution was introduced into the arts. Suddenly it became possible for one person to write a piece of music, which someone else could then print, and a third could perform without the whole thing needing to be written out by hand.
Not coincidentally, it was only shortly after, in 1709 that the Statute of Anne first enshrined the notion of copyright into law. A hundred years later, in the post-Napoleonic, heady musical times of Chopin, Liszt and Paganini, book and music publishing was already big business (as was illegal copying of scores). Only a matter of decades passed before sound recording devices, the first (from the fantastically named Frenchman Edouard-Leon Scott de Martinville) captured a garbled version of Claire De La Lune. Another Frenchman, Louis Le Prince made the world’s first film in October 1888, sixty-odd years after his compatriot Joseph Nicéphore Niépce took the world’s first photograph. Quite why the French had such deep involvement in such world-changing technological creations is unclear; but in doing so they spawned a global empire of industries based on the business of making art and then getting paid for it.
The irony was (and remains) that across the ages, only the luckier performers have become rich on their creations. In days of yore, if you had not achieved notoriety for your works you looked for a rich patron who would support you, or for the state to support you. The advent of technology (in the form of pressing discs) did not change things much: according to a study from the National Endowment for the Arts, median earnings in the for US musicians were a paltry $2,958 in 1969, rising to $5,561 in 1979 and $9,900 in 1989. A 1980 artists employment survey found that, “of those with second jobs in 1980… over a fourth of musicians were in sales, clerical or service jobs — jobs with a history of low pay and benefits.”
The desire to break out of this beatnik existence was, and is still, compelling for artists, but also focused the minds of the industry. “The earnings of the highest paid members of the professions, perhaps ‘superstars,’ increased faster than earnings of the profession as a whole,” continues the report, illustrating a mathematical reality: that a very small number of artists earned the lion’s share of the reward. Given the fact that music sales were stagnating (wrote Pekka Gronow in 1983, “Perhaps records, as a mass medium, have now reached the saturation point.”), catalysed by the rise of home taping, each label felt it had little choice than to remove all but the most profitable bands and musicians from the rosters. Not-successful-enough bands such as Pure Reason Revolution, culled by Sony/BMG in 2006, were simply removed from the rosters.
These two factors — that humanity has been compelled since the year dot (and before) to make music, and that its mathematical profitability is highly skewed towards the few — have laid the foundations for what appears, on the surface, to be an industry in crisis. In 2010 for example, total album sales had dropped steadily from 1999’s figure of 940 million to only 360 million; by 2014 US recorded music revenues were down by almost two thirds since their height at the turn of the millennium, to $21.50 per capita. To continue a decades-old theme, the fault has been squarely placed at the door of technology, first with home taping, then CD ripping (though at least CDs offered a temporary injection of cash into the system), then file sharing and torrenting, and most recently streaming, which remains the bogeyman of the industry.
Add to this, the alleged daylight robbery from streaming services like Youtube, Spotify and Apple Music. YouTube’s journey has not been a bed of roses: in 2006, even as Google paid 1.6 billion for the site, news sites suggested that it was losing 500,000 per month. Two years later Eric Schmidt, then-Google CEO, remarked, “I don’t think we’ve quite figured out the perfect solution of how to make money, and we’re working on that.” Nobody doubts YouTube’s dominance today: billions of videos are watched daily, a third of which are music related. Meanwhile, Spotify now has 50 million paying subscribers and many millions more who use the advertising-supported version of the site, Apple first launched iCloud with its built-in “piracy amnesty” for music, then its fully fledged Apple Music service; and Google and Amazon have launched their own music offerings. Each is seen as working with, or conspiring against the music industry or individual artists, depending on who you ask.
Thus we have the pervading narrative of today’s music industry: corporations in crisis, streaming services the culprit, musicians carrying the can. Behind the lines though we have a fundamental factor and a cause for optimism, reflected in artist royalties. Despite taking a recession-based hit, royalty payments from US rights organisation Broadcast Music, Inc (BMI, representing 600,000 members) have been increasing year on year since 2000. In 2016, the organisation some distributed over a billion dollars to its rights holders, as did the American Society of Composers, Authors and Publishers (ASCAP, 460,000 members). UK licensing revenues are also up year on year, and have been for almost a decade.
The ensemble of ‘rights holders’ — people who licence their songs or recordings — have never been as well off as today, so where is the problem? The answer, simply, is that there is a lot more of them than ever before. Remarks acid house DJ and polymath Andrew Weatherall, “Here we are at the apex of the punk-rock dream, the democratisation of art, anyone can do it, and what a double-edged sword that’s turned out to be.” It is difficult to know whether one is listening to a professional musician recording a song in an expensive studio, or some troubled kid making a song in their apartment — if, indeed, it matters. A positive consequence is massive diversification, driving a positive explosion of culture, with artists as diverse Korea’s Psy and Morocco’s Hala Turk from Morocco gaining almost-overnight international attention when their compositions went viral. The downside is a massive increase in supply: the total number of musicians in the US was 189,510, clearly the rate of growth of ‘rights holders’ far surpasses that of ‘professional’ musicians.
What does all of this mean? Within the backs and forths, the amount being spent on music, and the sums arriving at its creators, are increasing. Whether the revenues are distributed fairly is a hot question: the answer is a probable no, itself unchanged since third parties inserted themselves in the pathway of musical distribution. The second, hot question is whether we, the punters are paying enough for the music we consume. While the prevailing answer (largely from the industry, but see question 1) is a resounding no, the reality is more nuanced. Musical purchases come from that economic category of “discretionary spend”, a variable pool of funds allocated according to desire, diligence and, frankly, what can be got away with. A few quid saved on a free listen to a new album via Spotify could equate to a trip to the cinema or a new t-shirt.
This is no glib comparison, as it shines a spotlight on the importance of good marketing for musicians. If marketing is about getting a signal to cut through the noise, in this case “the noise” equates to every other product and service vying for a slice of the discretionary pie. If, as we have already seen, industry players are going to focus on the few to the detriment of the many (and rightly so, mathematically — they’d be out of business otherwise), those outside of the high-street-shop-window inner circle are missing a trick if they are not creating “a signal” of their own.
Of course, many if not most independent artists are already following the lead of pioneers such as Marillion, Radiohead, Nine Inch Nails and a host of others. Services such as Bandcamp (offering direct sales of music and merchandise) have become a go-to platforms, reflecting an increasingly empowered relationship between ‘content creators’ and ‘content consumers’; and nobody blinks at the idea of crowdfunding today. More importantly, artists with active relationships with their listeners appear more sanguine than industry representatives about the horrors of streaming revenues. Commented musician Zoe Keating in 2015, “The dominant story in the press on artist earnings did not reflect my reality, nor that of musical friends I talked to. None of us were concerned about file sharing/piracy, we seemed to sell plenty of music directly to listeners via pay-what-you-want services while at the same time earn very little from streaming.”
With all this in mind, it’s not hard to see just why sections of the musical community set so much store on technology as a disintermediating force within the industry, as illustrated by ongoing dialogues around Ethereum. Even as the chicken lickins of the music industry scream about the sky falling in, a number of certainties remain: that we will continue to listen to music, and, despite what some may say, we are prepared to pay increasing amounts to do so, even as we default to simpler and cheaper before more complicated and more expensive (through simple human weakness). The trick is to create a platform which is artist-controlled, which costs only as much as the processing required to deliver it and which is accepted as a place to go for the listener: a musical RSS feed with a straightforward front end, artist search and micro-payments built in. A cigarette packet calculation suggests that one could listen to 2,000-5,000 songs a month: if these cost an acceptable ha’penny a time with 20% (say) going to the platform provider, the debate would be in a very different place to now.
While the challenge is clearly more complicated than music revenues (who pays for studio time, or indeed artwork, what about live performances, advertising revenues, and so on and so on), the bottom line is, nothing technological is getting in the way of giving artists a fair deal vis-a-vis the music listener. If this means the problem lies elsewhere, for example in convoluted music licensing, poorly written contracts, business models which continue to put artists last and so on, then we have two directions. One, optimistically, is that producer-consumer axis will find an acceptable technological solution: numerous precedents exist for this in other industries, but we are not there yet despite the best efforts of many — the latest, Choon, is to be applauded. The second option is that musicians and punters will continue to rely on big business to control the flows of musical content, putting themselves in thrall of a small number of organizations whose profitability obligations lie with stockholders.
The choice, ultimately, is ours.
Pictures of the Day: 28 February 2018
February 28, 2018 at 10:03AM
Tuesday, February 27, 2018
Amazon Buys Ring, Maker of Smart Home Products
February 28, 2018 at 12:46AM
Amazon has made home automation a major focus because of the success of its Echo family of products.
Matt cartoons, February 2018
February 27, 2018 at 08:30PM
State of the Art: The Sublime and Scary Future of Cameras With A.I. Brains
February 27, 2018 at 08:00PM
A new generation of cameras like Google’s new Clips device can understand what they see, creating intriguing and sometimes eerie possibilities.
In Picasso’s Blue Period, Scanners Find Secrets He Painted Over
February 22, 2018 at 02:19AM
Scientists used a variety of tools originally developed for medicine, manufacturing and geology to discover hidden details in the artist’s paintings and sculptures.
Good News: A.I. Is Getting Cheaper. That’s Also Bad News.
February 21, 2018 at 03:51AM
The building blocks of artificial intelligence are becoming more affordable and easier to work with. A new report explains why that opens the door to additional risks.
Sponsored post: The Next Stage Of The Crypto-Boom
February 27, 2018 at 07:06PM
Cryptocurrencies have officially returned to a full-blown-frenzy.
Everyone is trying to get a piece of the crypto-pie. Corporate coins, government coins, and even commodity coins are flooding the market on every level, and investors are scrambling to sift through the madness.
But not all coins are created equal. Knowing which cryptocurrency is worth the investment can be tricky.
Adding to the confusion are companies making big promises to investors with no more than a whitepaper and a dream.
Assets are important in this race. It doesn’t matter if a company is planning to build a billion-dollar crypto-mine or wants to build a portfolio of hundreds of cryptocurrencies – if they have nothing, there’s no reason to invest.
Savvy investors are looking to companies with skin in the game, companies like HashChain Technologies (TSX:KASH.V, OTCMKTS:HSSHF).
Not only does HashChain already have mining rigs, they’re building up an array of assets within the space, beginning with the acquisition of Node40 which is poised to revolutionize the sector.
And the best part? Investors can gain exposure to HashChain’s stunning array of assets with a single call to their stock broker.
But HashChain’s promise doesn’t stop there…
Here are 5 reasons HashChain Technologies (TSX:KASH.V, OTCMKTS:HSSHF) is poised to take over the crypto-world.
#1 – Cryptos Have Huge Upside Potential
Over the past year, cryptocurrencies have seen incredible gains, with the sector averaging 20,000 percent price increases.
The mind-blowing growth of the crypto-sector has minted its share of millionaires, even leading Forbes to publish the very first “Crypto-Rich List.”
Despite media claims suggesting that the bubble has burst, cryptocurrencies still have tremendous upside potential, and HashChain (TSX:KASH.V, OTCMKTS:HSSHF knows it.
Cryptographically secure, transparent, and globally available, cryptocurrencies are poised to give cash a run for its money.
Even governments are racing to get in on the action. Arizona is already preparing to accept tax payments in bitcoin, and other states are sure to follow suit.
But right now, there are so many cryptocurrencies drowning the market, it is difficult for investors to gain their bearings. It’s true – the cryptocurrency does matter. Each coin serves its own purpose, runs on its own technology, and ultimately, these factors will determine a coin’s value and impact on markets.
That’s where HashChain (TSX:KASH.V, OTCMKTS:HSSHF) comes in.
In addition to mining DASH, bitcoin and bitcoin cash, three of the markets’ most innovative and top performing coins, HashChain is carefully considering other coins to pursue in the future. And with the mind-blowing gains seen in 2017, investors can expect the potential exposure to these expertly chosen cryptos to pay off.
#2 – Mining that Matters
2017 was certainly a good year to be a cryptocurrency miner. Profits hit the $2-billion mark for bitcoin miners at beginning of 2017, but by the end of the year, during the surge in prices across the board, total profits generated soared to $50-billion. That’s a 2500 percent increase in profitability is just one year.
Investing in a crypto-miner is a lot like investing in traditional miners, except crypto-miners have a much larger profit potential.
Gold mining, for example, only returns an average 11 percent, while cryptocurrencies are seeing huge returns, averaging 20,000 percent.
Currently, HashChain (TSX:KASH.V, OTCMKTS:HSSHF) is operating 100 dash mining rigs in their Vancouver location, which enjoys cheap and environmentally sustainable electricity from nearby hydropower dams, and another 770-brand new bitcoin mining rigs are being set up at this very moment.
But HashChain’s ambitions don’t stop there.
Using cash on hand and profits generated from mining, HashChain is planning an aggressive expansion strategy, aiming to grow into a 40MW operation, consisting of approximately 26,500 mining rigs by the end of the first quarter 2019. And, in the process, begin mining other hand-selected cryptocurrencies, as well.
What’s the point of mining other currencies if Dash and bitcoin are performing so strongly, you might ask?
Over time, mining difficulty increases, leading to smaller profits and less return on investments.
HashChain is looking towards the future. Understanding that both the popularity of coins and the profitability of coins could change at any time, they are looking to avoid the inevitable before it becomes necessary. Not only do they aim to dodge the bitcoin bullet but capitalize on the potential growth of up and coming cryptos.
This could make HashChain one of the largest and most diverse crypto-miners on the planet.
HashChain Technologies, according to CEO Patrick Gray, gives investors the opportunity to profit from a volatile market, “that they can’t take advantage of themselves.”
In addition to HashChain’s huge mining operation, they will be running a Dash masternode. These masternodes are essential in the Dash ecosystem. They perform specialized transactions like InstantSend and PrivateSend, which set Dash aside from other cryptocurrencies.
Most importantly, the masternodes earn 45 percent of each block reward split between all nodes, providing the owner of the masternode a 7 percent yearly return on investment – a steady source of income for the owner.
#3 – Wall Street Exposure
As the cryptocurrency craze reaches a full-blown frenzy, Wall Street has definitely taken notice. Institutional investors, however, have favored more traditional platforms over investing directly in cryptocurrencies.
Blockchain pivots and cryptocurrency adoption by listed companies have proven to be huge investor magnets, with some companies surging by nearly 400 percent after adding “blockchain” to their name.
And these aren’t all small companies.
Retail giant Overstock.com saw a 30 percent boost in share prices after announcing an ICO for one of its blockchain subsidiaries, and Kodak, a household name in the United States, saw its share price nearly triple after announcing the KodakCoin.
The most surprising, and maybe even humorous pivot, however, was Long Island Iced Tea’s name change. After renaming itself to Long Blockchain and announcing the potential acquisition of new blockchain projects, its share prices soared by 183 percent.
New crypto and blockchain companies are exploding onto the market, as well. OTC listed First Bitcoin Capital saw an insane increase of 6000 percent YTD before trading was temporarily suspended by the SEC.
It’s clear that investors have been infected by the Fear Of Missing Out – but they’re still not quite sold on the loosely regulated nature of cryptocurrencies.
That’s why HashChain (TSX:KASH.V, OTCMKTS:HSSHF) is poised to garner a lot of attention in the coming months.
With plans to build a diverse mining ecosystem, HashChain will allow investors to gain exposure to the growing crypto-space without getting burned if one currency takes a nosedive.
#4 – Bringing Order to the Crypto-Space
In a recent report, it was revealed that almost no one is paying taxes on cryptocurrency earnings.
It’s estimated that over 7 percent of the population in the United States has made taxable gains on their cryptocurrency holdings, yet only 0.04 percent of U.S. tax filers actually reported any earnings or losses to the Internal Revenue Service. And it’s almost understandable.
The process to calculate cryptocurrency earnings is beyond difficult. With cryptos reaching all-time-highs in late 2017, followed almost immediately by 50-80 percent losses the very next month, would-be taxpayers simply do not know what they owe.
Even tax professionals are struggling to keep up.
But, HashChain (TSX:KASH.V, OTCMKTS:HSSHF) is already looking toward the future.
With its recent acquisition of the assets of Node40, a blockchain solutions company, HashChain is at a particular advantage in the space. Node40 offers the most sophisticated crypto-tax software on the market.
In such a complicated sector, it can be hard for investors to track their gains and losses, but with Node40’s software, users simply enter their blockchain addresses and the program does the work for them.
The software tracks, adds value to, and totals each cryptocurrency transaction on a user’s blockchain, which will dramatically simplify the entire process.
With this revolutionary software, HashChain has a leg up on its competition.
This acquisition not only puts HashChain ahead of the pack, it brings regulation into the hands of the crypto marketplace rather than from pressure from governments.
#5 – The Crypto Dream Team
HashChain Technologies (TSX:KASH.V, OTCMKTS:HSSHF) is special. They have some of the brightest minds in the game, and with years of experience in the sector and hundreds of millions of dollars’ worth of deals under their belt, it is fair to say that the team is battle tested.
Patrick Gray, the CEO of HashChain, is a computer whiz who has mastered the art of the deal. Primarily involved in the tech industry, Gray knows the space through and through.
Patrick’s very first startup successfully sold for over $200-million, and that was just the beginning. Since then, he has been involved in a number of high-profile deals, and with his extensive tech know-how, investors would follow him to the end of the earth.
Sean Ryan is another expert in the field. As CTO of both HashChain and Node40, he is widely regarded as an industry leader in the development of blockchain infrastructure services and cryptocurrency accounting. Under Ryan’s technical guidance, HashChain is prepared to scale significantly to meet the demands of the growing blockchain industry.
HashChain’s Chief Strategy Officer, Perry Woodin is a cryptocurrency guru. As a Dash board member, one of the top cryptocurrencies in the market, Woodin is as connected as they come.
Not only that, he has changed the way people invest in and profit from blockchain-based networks.
As the founder of Node40, Woodin created an entirely new way to incentivize network participation that is set to revolutionize the entire sector. His experience in data management, and his app development expertise makes him a prized asset in HashChain’s already stacked arsenal.
With this tech dream team, the possibilities are endless.
**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**
Forward-Looking Information
Certain disclosure in this release, including statements regarding the performance of the Company’s current and ordered Rigs, and expectations regarding future operations may constitute forward-looking statements. These include that KASH will dramatically increase operations, that the 5,000 Rigs will be successfully ordered and delivered, the 5,000 Rigs will perform as expected by management and the timing, installation and performance of KASH’s current and ordered Rigs will be consistent with management’s expectations; that mining capacity will increase to 8.7 MW; that KASH will utilize its committed Montana facility space and increase capacity to mine 20 MW; that KASH will hold a diverse portfolio of cryptocurrencies through mining and otherwise; and that KASH’s software can become part of a regulatory push for regulation of cryptocurrencies. The forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such risk factors may include, among others, the risk that the 5,000 Rigs will not be successfully ordered or delivered from the manufacturer or, if delivered, not when expected by management, and the risk that the Company’s current and ordered Rigs will not perform as expected by management or that expected capacity is not achieved; that KASH may not earn cryptocurrencies through mining and may not be able to purchase them; risks related to changes in cryptocurrency prices, and the profitability of mining them; that cryptocurrencies will not increase in use as expected; the under-estimation of personnel and operating costs; that KASH will not receive required regulatory approvals for building new facilities, using power, or other aspects of its business; that cryptocurrency regulators don’t accept KASH’s accounting and other solutions; the availability of necessary financing; permitting of businesses that KASH intends to invest in; general global markets and economic conditions; uninsurable risks; risks associated with currency and cryptocurrency fluctuations; risks associated with competition offering better or cheaper solutions, attracting away employees or using tactics to drive out competition; risks associated with changes in the financial auditing and corporate governance standards applicable to cryptocurrencies; risks related to potential conflicts of interest; the reliance on key personnel; capitalization and liquidity risks including the risk that the financings necessary to fund continued development of KASH’s business plan may not be available on satisfactory terms, or at all; the risk of dilution through the issuance of additional common shares of KASH; the risk of litigation; the risk that KASH’s management and advisors may not contribute as much as expected to the company’s success; the risk and the risk that cyber-crime may severely damage the value of any or all of KASH’s investments. There may be many other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information.
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Tech Tip: How to Monitor Cellular Data Use for Apps
February 27, 2018 at 05:44PM
To see which apps are grabbing the most data, peek into your device’s settings or fire up a software meter.
Deadly brown snake found in school lunchbox
February 27, 2018 at 02:38PM
On Technology: How Tiny Red Dots Took Over Your Life
February 27, 2018 at 01:01PM
Technologists are starting to fret that their creations are too addictive. They could start by doing something about the dots.
Pictures of the Day: 27 February 2018
February 27, 2018 at 10:03AM
Monday, February 26, 2018
Op-Ed Contributor: Can the United States Search Data Overseas?
February 27, 2018 at 02:55AM
A Supreme Court case asks where the government’s right to examine digital evidence ends.
Kratsios: Let's Not Rest on Our Laurels
February 26, 2018 at 08:36PM
Speaking at The New York Times’s New Work Summit, Deputy U.S. Chief Technology Officer Michael Kratsios said the U.S. is still leading China in artificial intelligence, but needs to keep pushing ahead.
Tech Tip: Wireless (or Wired) Chromebook Printing
February 26, 2018 at 06:29PM
Those lightweight laptops running Google’s Chrome OS operating system can work with certain types of printer models.
Drama-Free Artificial Intelligence
February 26, 2018 at 04:00PM
Depending on who’s listening, the current discussion involving the growing role of Artificial Intelligence in business inspires a range of dramatically divergent emotions. There’s often fear, because of what some believe to be AI’s vaguely sci-fi vibe and dystopian possibilities. Among business people, there is also confusion, on account of the inability of most laypeople to separate AI hype from AI fact. Apprehension also looms large, usually from managers who sense that a great wave of technology disruption is about to hit them, but who feel utterly unprepared for it.
But from our experience with Fortune 500 companies, we’ve come to believe that the proper response by business leaders to AI should be more benign: appreciation. Whatever anxieties it might produce, the fact is that AI is ready today to bring a trio of new efficiencies to the enterprise. Specifically, scores of companies have learned how AI technologies can transform how they process transactions, how they deal with data and how they interact with customers.
Better still, they have been able to take advantage of this AI triad without turning themselves into an Internet Giant and hiring huge new teams of hard-to-find, and not to mention expensive, data scientists. AI products are available now in nearly turnkey form from a growing list of enterprise vendors. True, you and your IT staff will need to do a certain amount of homework to be able to evaluate vendors, and to make sure product implementations map on to your precise business needs. But doing so isn’t a heavy lift, and the effort will likely be rewarded by the new efficiencies AI makes possible.
Companies are benefiting from AI right now, in ways that are making a difference on both the top and bottom line.
“Robotic and Cognitive Automation” is the name we at Deloitte give to AI’s ability to automate a huge swath of work that formerly required hands-on attention from human beings. The most popular form of R&CA involves gathering data from disparate sources and bringing them together in a single document. An invoice, for example, usually cites a number of sources, each of which stores relevant information in slightly different formats. An R&CA system has the intelligence necessary to transcend the usual literal-mindedness of computer systems, and process the information it needs despite the fact that it might have different representations in different places.
As AI techniques have become more robust in recent years, so too have the capabilities of R&CA packages. Now, instead of simply pulling spreadsheet-type data from sundry sources, they can process whole passages of text. Not as well as a human being can, for sure, but enough to get a general sense of the topics that are being covered. As a result, there are now R&CA systems that can “read” through emails and flag those that might be relevant to a particular issue. Such systems are now commonly found, for example, at large law practices, which use them to search through huge email libraries to discover which materials might need to be produced in connection with a particular bit of litigation. This is the sort of routine work that previously required paralegals.
Another cluster of AI applications involves the ability to make better use of a company’s data; these go by the name of “Cognitive Insights.” These tools allow companies to manage the flood of information they collect every day, from business reporting tools to social media accounts. More importantly, it gives businesses the ability to use that information to generate real-time insights and actions.
Consider just one area in which these new AI capabilities can be useful: digital marketing. Staffers running email campaigns can now improve click-through rates by using their AI-acquired knowledge of each customer’s personality to determine which words or phrases in the subject line might be more likely to get the person to read the email. Small changes can make a big difference; reports of double-digit increases in opened emails are common with AI.
Finally, AI is fundamentally changing the way companies work with their customers. This is occurring everywhere, but is most common with interactions with millennials. This cohort grew up with texting on their mobile phones, and is often more comfortable interacting with an app than with a human being.
As a result, millennials are extremely receptive to a new breed of automated customer service applications that AI is making possible. (These are vastly superior to the rudimentary “chatbots” that some companies used in the early days of the Web.) With advances in the AI field known as Natural Language Processing, computers are now able to deal with the sorts of real-world questions that customers are likely to ask, such as “Why is this charge on my credit card statement?” Deploying computers for these types of routine inquiries allow companies to deliver a uniform, high-quality customer experience while simultaneously improving the value of your brand.
You’ve probably noticed that while AI is often described as the equivalent of “thinking machines,” all of the tasks described above are relatively discrete and well-defined. That’s because for all the progress that’s been made in AI, the technology that still doesn’t come close to being able to match human intelligence. AI products perform specific tasks just fine, but don’t expect them (yet) to handle everyday human skills like professional judgment and common sense.
What’s more, AI can’t be used to paper over inefficiencies in a business, whether they be strategic or operational. If the processes you’re using AI for aren’t fundamentally sound to begin with, the new technology won’t be of any help, and may exacerbate problems by hiding them behind added layers of software. You’ll need to use some old-fashioned intelligence to take a good, hard look at your organization before trying to take advantage of the new, artificial variety. It will, though, be well worth the effort.
Jeff Loucks is the executive director of the Deloitte Center for Technology, Media and Telecommunications. In his role, he conducts research and writes on topics that help companies capitalize on technological change. An award-winning thought leader in digital business model transformation, Jeff is especially interested in the strategies organizations use to adapt to accelerating change. Jeff’s academic background complements his technology expertise. Jeff has a Bachelor of Arts in political science from The Ohio State University, and a Master of Arts and PhD in political science from the University of Toronto.
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Mic Locker is a director with Deloitte Consulting LLP and leader of its Enterprise Model Design practice. With more than 15 years of consulting experience, and more than three years of operations experience, she specializes in leading organizations through transformational changes ranging from business model redesign and capability alignment, process reinvention, operational cost reduction, and new business/product launches.
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