AI Partnership – Fluff and stuff

Reply to this post

RFM AvatarSmall

 

 

 

 

 

How society will benefit is very unclear.   

  • The ecosystem leaders have announced an artificial intelligence (AI) partnership aimed at benefiting society but the fact these players are also fierce competitors will ensure that real trust and co-operation will be difficult to achieve.
  • Google, Facebook, Amazon, Microsoft and IBM have jointly formed the Partnership on Artificial Intelligence to Benefit People and Society which aims to use AI to improve the quality of life in society.
  • Apple, Baidu and Yandex are all notable omissions from this list but the partnership has made it clear that the door is open for anyone who wants to join and contribute.
  • It looks very unlikely that the partnership will be sharing any actual algorithms but will work together to figure out best practice for developing AI as well as ensuring that a dystopian, man vs. machine world remains firmly in the realm of fiction.
  • Aside from this, the partnership is extremely vague on what the practicalities will be and how these companies will be working together for the benefit of all.
  • I suspect that this will be much harder to achieve than it sounds as these companies are all fierce competitors whose long term differentiation will, at least in part, hinge on their ability to make their machines better than the others.
  • A good example of this is dieting.
  • The biggest problem with dieting apps is telling the app what it is that you have eaten.
  • This process can be so tedious that many users simply give up after a short period.
  • However, this could be vastly improved with AI which could allow a device to use the camera to look at a plate and understand exactly what is there.
  • I think that this would have such a huge impact on the user experience such that engagement with the service would improve substantially.
  • Food app Lose It is already trying this but I think it remains very far away from something that would really satisfy RFM’s 7 Laws of Robotics and result in real adoption.
  • Consequently, whoever it is that cracks the problem through AI is not about to donate this to the partnership to help everyone weight.
  • Instead the algorithm will be used to create exclusive engagement that the app or ecosystem owner will be able to monetise with one of the three standard methods (see here).
  • Furthermore, the creator of this algorithm will have a fiduciary duty to deliver a return on the money invested by its stakeholders before allowing it to be freely used for the greater good.
  • Dieting is just one example but there are hundreds of others as AI looks certain to be one of the biggest differentiators in the ecosystem over the next 5-10 years.
  • Hence, AI algorithms are likely to become the most valuable asset that any ecosystem has as they will be the foundation upon which profitable businesses are built and sustained.
  • This is why I suspect that any AI the partnership offers to benefit society will not be particularly beneficial but if there can be agreements in other areas then there could be some benefit.
  • The net result is that the announcement is full of great intentions but until there is some substance around the fluff, it will be very difficult to tell whether society will benefit at all.

RICHARD WINDSOR

Richard is founder, owner of research company, Radio Free Mobile. He has 16 years of experience working in sell side equity research. During his 11 year tenure at Nomura Securities, he focused on the equity coverage of the Global Technology sector.