Fear of the Robot Economy….

A couple of articles I came across recently made for quite depressing reading about the future of the economy. The first was an opinion piece by Greg Jericho for The Guardian on an IMF Report about the economic impact of robots. The second was the AFR’s annual Rich List. Read together, they don’t inspire me with confidence that we are really embracing the economic opportunity that innovation brings.

In the first article, the conclusion seemed to be predicated on the idea that robots will destroy more “jobs” (that archaic unit of economic output/activity against which we continue to measure all human, social and political achievement) than they will enable us to create in terms of our advancement. Ergo robots bad, jobs good.

While the second report painted a depressing picture of where most economic wealth continues to be created. Of the 200 Wealthiest People in Australia, around 25% made/make their money in property, with another 10% coming from retail. Add in resources and “investment” (a somewhat opaque category), and these sectors probably account for about two-thirds of the total. Agriculture, manufacturing, entertainment and financial services also feature. However, only the founders of Atlassian, and a few other entrepreneurs come from the technology sector. Which should make us wonder where the innovation is coming from that will propel our economy post-mining boom.

As I have commented before, the public debate on innovation (let alone public engagement) is not happening in any meaningful way. As one senior executive at a large financial services company told a while back, “any internal discussion around technology, automation and digital solutions gets shut down for fear of provoking the spectre of job losses”. All the while, large organisations like banks are hiring hundreds of consultants and change managers to help them innovate and restructure (i.e., de-layer their staff), rather than trying to innovate from within.

With my home State of Victoria heading for the polls later this year, and the growing sense that we are already in Federal election campaign mode for 2019 (or earlier…), we will see an even greater emphasis on public funding for traditional infrastructure rather than investing in new technologies or innovation.

Finally, at the risk of stirring up the ongoing corporate tax debate even further, I took part in a discussion last week with various members of the FinTech and Venture Capital community, to discuss Treasury policy on Blockchain, cryptocurrency and ICOs. There was an acknowledgement that while Australia could be a leader in this new technology sector, a lack of regulatory certainty and non-conducive tax treatment towards this new funding model means that there will be a brain drain as talent relocates overseas to more amenable jurisdictions.

Next week: The new productivity tools

When robots say “Humans do not compute…”

There’s a memorable scene in John Carpenter‘s 1970’s sci-fi classic, “Dark Star” where an astronaut tries to use Cartesian Logic to defuse a nuclear bomb. The bomb is equipped with artificial intelligence and is programmed to detonate via a timer once its circuits have been activated. Due to a circuit malfunction, the bomb believes it has been triggered, even though it is still attached to the spaceship, and cannot be mechanically released. Refuting the arguments against its existence, the bomb responds in kind, and simply states: “I think, therefore I am.”

Dark Star’s Bomb 20: “I think, therefore I am…”

Dark Star’s Bomb 20: “I think, therefore I am…”

The notion of artificial intelligence both thrills us, and fills us with dread: on the one hand, AI can help us (by doing a lot of routine thinking and mundane processing); on the other, it can make us the subjects of its own ill-will (think of HAL 9000 in “2001: A Space Odyssey”, or “Robocop”, or “Terminator” or any similar dystopian sci-fi story).

The current trend for smarter data processing, fuelled by AI tools such as machine learning, semantic search, sentiment analysis and social graph models, is making a world of driverless cars, robo-advice, the Internet of Things and behaviour prediction a reality. But there are concerns that we will abnegate our decision-making (and ultimately, our individual moral responsibility) to computers; that more and more jobs will be lost to robots; and we will end up being dehumanized if we no longer have to think for ourselves. Worse still, if our human behaviours cease making sense to those very same computers that we have programmed to learn how to think for us, then our demise is pre-determined.

The irony is, that if AI becomes as smart as we might imagine, then we will impart to the robots a very human fallibility: namely, the tendency to over-analyse the data (rather than examine the actual evidence before us). As Brian Aldiss wrote in his 1960 short story, “The Sterile Millennia”, when robots get together:

“…they suffer from a trouble which sometimes afflicts human gatherings: a tendency to show off their logic at the expense of the object of the meeting.”

Long live logic, but longer still live common sense!

Next week: 101 #Startup Pitches – What have we learned?