🚀 Issue 109 of . Exponential View Sign-up to receive it each week. 21st century economics to ditch physics; Amazon’s leadership. Cambridge Analytica; Algorithmic management and the failure of decency; AVs and the insurance dilemma; Uber losses; Power market turned upside-down; Human heart grows on spinach leaves; Water solidified at boiling point. Dept of the near future 💭 Jeff Bezos’s “Day 2 is stasis. Followed by irrelevance. Followed by excruciating, painful decline. Followed by death. And that is why it is always Day 1.” letter to Amazon shareholders. COMPELLING 🔫 , argues Brian Bergstein. (See also: “ ” argue Shakya & Christakis in HBR.) We need alternatives to Facebook THOUGHTFUL the use of Facebook [is] negatively associated with overall well-being Traditional economics is based on a fallacy, the most pernicious legacy of this fake physics. Instead, we need dynamic, systems approaches. (See also EV#19 on .) 🍩 Kate Raworth on doughnut economics. EXCELLENT biologically-inspired economics 📣 EV reader, Fred Wilson: We need more decentralised, self-organizing systems. “[P]eople have an aversion toward unfairness [which often] leads them to favour unequal distributions. [We should] focus not on whether the [distribution of wealth] is viewed as fair.” (Long-ish academic paper.) 🖇️ Why people may prefer unequal societies. INTERESTING 🚨 Mercedes but who will carry the insurance for ? Tesla in the purchase price of cars. promises self-driving taxis autonomous vehicles already offers insurance as an option 🗳️ Paul-Olivier Dehaye’s is a . presentation on Cambridge Analytica, personal data and electioneering MUST READ Dept of algorithmic management One element of the United Airlines story intrigues me: how firms start to rely on process so heavily that it becomes an excuse for eliminating employee discretion, common sense or kindness. We know that in the recent case, United didn’t follow its processes exactly but the incident demonstrates the fundamental issue of processes debilitating decency. It’s a small example of the risks of algorithmic management. essay: John Robb sums it up in this EXCELLENT The entire process was inevitable. It’s also not a unique situation. We’re going to see much more of this in the as algorithms and authoritarianism grow future To which I’ll add that while the passenger’s treatment resonates viscerally, we are all, as consumers and citizens, at the mercy of black-box processes (aka algorithms). When we engage with business and and are fed through a decision tree. When an insurance claim is processed. When we are triaged by a telenurse. When we make a complaint. These are often rigid black-box systems. government The humans operating these processes in many cases have limited discretion. This discretion has been whittled away over years in the name of optimisation or standardisation. And in many cases, that process has led to efficiency, fewer errors and higher quality for us. But in some instances (especially with quasi-monopolists) a black-box culture that is irredeemably inflexible and opaque. In many industries, the human is already out-of-the-loop, simply following a script. We’ve all heard an agent say “the system doesn’t allow me to do that.” Will automated systems make this more or less common? The silver lining is that they could be less brittle than current processes. A machine learning system could learn rapidly from experience, ultimately optimising more efficiently and with greater efficacy that an ‘architect-once, implement forever’ process manual. Human overseers could have the power to override such genuinely automated systems if the machines suggest macabre outcomes. The risk is the opposite will happen because firms will expediently implement poorly designed ones with little consumer redress or business impact. Dan Hon has an . amusing tweetstorm that plays out this management calamity I’d be happy to hear your thoughts on this ( .) via Twitter. Use the hashtag #ev109 Elsewhere: : The future is what it is: the continuing development of ever-better technologies able to help people work with them. Enrique Dans who spent the summer making iPhones in a Chinese factory. (The division of labour seems to be perfected. #evilcackle.) Interview with a US grad student FASCINATING. The . robot wars in American factories We need . (Although the author refers to the success of econometrics in this piece, which complexity economists and systems thinkers might challenge. See the doughnut economics at the top of this newsletter.) new economic tools to measure the impacts of automation in the economy Dept of artificial intelligence Have fun playing with autocomplete for drawing . (See also using machine learning.) Google Autodraw Miles Brundage on facial image completion Will Knight on the . challenges of making artificial intelligence explainable and the progress we are making to do so EXCELLENT READ Nice, non-technical introduction. Neural networks made easy. Accessible & fun history of . dueling neural nets Nate Soares on . (Long read.) ensuring smarter-than-human intelligence has a positive outcome We’ve highlighted this risk many times in EV. Read the . AI learns gender biases from text. original research here Mammoth . overview of AI accelerator and incubator programmes Small morsels to appear smart at dinner parties ⛑ Uber: (Airbnb .) Losses of $2.8bn on $20bn of sales, accounting challenges remain. has reached tax agreements with 250 US jurisdictions How . Apple and Google are taking aim at diabetes and cancer . (Thanks to my son for finding this.) Human heart grown on spinach leaves 🗑 Are you a fan of Trump board game, Coca-Cola BlāK or Peek? . They’re displayed in the Museum of Failure Neuroscientists are . rethinking the rules of memory of university graduate facial hair styles. 👨🎓 Beards, ahoy. 108 years 🌞 Solar and wind now . the cheapest power globally as they interrupt each other. Male justices interrupt female justices 3x as often 🍼 Infants . show racial biases even at six months made more people vote Trump. Fear of diversity Index funds beat active managers 92% of the time. . 💧🔥 Scientists solidify water at boiling point 🚀 Issue 109 of . Exponential View Sign-up to receive it each week.
