Rebane's Ruminations
February 2019
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George Rebane

[This is the addended transcript of my regular KVMR commentary broadcast on 13 February 2019.]

The entire field of artificial or machine intelligence (AI) seems to be more misunderstood by the day, and not only on Main Street, but also in the highest levels of government.  President Trump recently signed an executive order to launch the American AI Initiative.  The purpose of this whatever it is, is to “focus federal government resources to develop AI” in order to “increase our prosperity, enhance our national and economic security, and improve quality of life for the American people.”


Now AI has been in steady development and use across the land for at least 30 years.  Launching AI is not the same as launching a rocket to the moon when no one had done it before.  The launch of AI decades ago was the same as the launch of, say, relational databases, spreadsheets, the microcomputer (we don’t call them that anymore), browsers, cell phones, and, of course the World Wide Web.  All of these things started off bit by piece, then gained momentum in the market place as people saw new uses for them, and finally took off and became established in our businesses and private lives. AI has been no different, save in new areas such as the much ballyhooed, super-human game players, self-driving cars, and automation from factory floors to offices all over the world.

The main difference about AI is that it has the ability to become the greatest job killer, money maker, and inequality promoter in human history.  Why?  Because no one sees any limits to the intelligence of these machines combined with the agility, speed, and power of their robotic versions.  It’s not clear that the federal government even knows what this AI Initiative is actually supposed to do.  The PR copy states that “federal agencies will increase access to their resources to drive AI research by identifying high-priority federal data and models, improving public access to and the quality of federal AI data, and allocating high-performance and cloud computing resources to AI-related applications and R&D.”  But industry, academe, and entrepreneurs are already doing all that at a tremendous pace and on their own, thank you very much.

The feds claim that with their “proper leadership, AI can empower American workers by liberating them from mundane tasks.”  What this initiative doesn’t seem to understand is that such workers will also be liberated from their jobs, simply because they cannot be trained to do the more mentally demanding work.  There is a reason why most of them now have mundane jobs, along with the over 7M job openings today that require skills unavailable and, sadly, unachievable by most of the unemployed.  As more workers are replaced and become unemployable, systemic unemployment will grow – meaning there will be more unskilled humans than human jobs, at least the kind that pay enough to maintain an acceptable quality of life.

This AI initiative seems not to have been well thought out, and promises to add more bureaucracy and burdensome regulations to hinder new and innovative applications of AI.  The main author of this initiative is the Deputy Assistant to the President for Technology Policy, Michael Kratsios, who is not a scientist or engineer, and seems to have a very incomplete understanding of AI, its development, and how such technologies arise and merge into markets.  His training is in political science with a certificate in Hellenic studies.  His recent article in Wired magazine titled ‘Why the US needs a strategy for AI’ clearly shows that he is navigating in waters new and strange to him.  Of course, such forays into the unknown by government bureaucrats is nothing new.  Mr Kratsios really thinks it will be the federal government that will “craft guidance for AI technologies that will promote innovation while respecting privacy, civil liberties, and American values.”  And it gets better – the authors of the American AI Initiative actually believe in something called “the race for AI”, one that “we will win” under the shrewd guidance of the feds.  And this victory will be ours “without compromising our American values.”  Oh my.

Anybody who has participated in the development of leading-edge technologies, or at least is familiar with the history of such developments, knows that government regulators will not be able to control and/or guide innovation in the field of AI – that cat is long out of the bag.  From here the government will do well just to keep up and understand what AI is being invented and applied, so that they can fund and acquire the proper technologies in a timely manner to fulfill their national security mandate.

My name is Rebane, and I also expand on this and related themes on Rebane’s Ruminations where the addended transcript of this commentary is posted with relevant links, and where such issues are debated extensively.  However, my views are not necessarily shared by KVMR.  Thank you for listening.

[Addendum]  Some more links for the American AI Initiative.  Forbes’ critique of the initiative come in the ‘what could possibly go wrong’ and ‘where’s the funding’ versions.  Vox continues their broad-brush, general purpose TDS coverage, and also notes Kratsios’ lack of science training (here).  Mr Kratsios background is expanded here.

To mention some specific job categories that will be toast in the near future, consider professional transport drivers on our streets and highways.  Today, there are over 3M long-haul truck drivers employed to keep the wheels of commerce turning.  And for some more white-collar oriented redundancies, consider the several hundred thousand portfolio managers along with more thousands of stock bonus program administrators who will be replaced by much smarter and cheaper software.  The takeaway here is that a broad swath of middle skill-level jobs will fall to intelligent systems.  No one has yet come up with a viable Plan B for these folks.

Ethics and political correctness in AI implementation is something that a lot of the Left is getting worked up about – specifically, we mention the entire notion of ‘AI bias’ (see the Forbes piece for an expansion).  Since humans are NOT created equal along any of our defining attributes, deep learning AI programs will find such discriminating patterns in the mounds of ‘biased data’ that will be used to train them into final algorithmic forms for fielded systems in commerce and government.  And bureaucrats (in the AI initiative?) will demand to have additional work to do adjudicating such systems for their bias before they are allowed to be deployed and used in the worldwide fields of administration.  Detecting bias is hard, but easier than proving that any given algorithm (that’s what computer programs are) is NOT biased.

So let’s consider a specific case where a given healthcare algorithm, say, Algo33, trained on mountains of clinical data, turns out to diagnose the presence of Dreaded Disease #7 more reliably in white folk than in black folk.  DD7 is a killer if not detected early, and in practice Algo33 saves thousands of lives each year, but proportionately fewer African-American lives.  Algo33 is definitely biased.  Should we then take Algo33 offline until it can be ‘repaired’ (not an easy task)?  Or should we empanel a death committee to oversee Algo33’s race-based diagnoses, and adjust the white notification numbers so that they are equally deficient as the algo’s black notification numbers?  Or come up with some other ‘compensatory approach’ that passes political muster?  In such approaches we would be implementing regulatory policies based on the existential practice that ‘the perfect is the enemy of the good’.

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15 responses to “The American AI Initiative & herding cats”

  1. scenes Avatar
    scenes

    So far as I can tell, the main problem with AI aimed at social issues is that it’s not biased. Everyone seem to demand a knob you can turn so that the desired results pour forth.
    Next thing you know, they’ll notice that most crimes are committed by young males.

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  2. Russ Avatar
    Russ

    The impact of AI has intrigued me for some years, starting with a project I proposed to Air Force Research and Development to use AI in the analysis of communication jamming signals. The project was funded; unfortunately, I did not get to participate in the execution. However, the assigned engineering got a perfect 10/10 score, the highest rating for that year — ten for the idea and ten for performance.
    My interest continues, focusing now the long term impact on education and employment. My most recent reading:
    AI Superpowers: China, Silicon Valley, and the New World Order
    Dr. Kai-Fu Lee—one of the world’s most respected experts on AI and China—reveals that China has suddenly caught up to the US at an astonishingly rapid and unexpected pace.
    Prediction Machines: The Simple Economics of Artificial Intelligence
    In Prediction Machines, three eminent economists recast the rise of AI as a drop in the cost of prediction. With this single, masterful stroke, they lift the curtain on the AI-is-magic hype and show how necessary tools from economics provide clarity about the AI revolution and a basis for action by CEOs, managers, policymakers, investors, and entrepreneurs.
    Artificial Intelligence: A Roadmap for California
    Artificial Intelligence: A Roadmap for California is not merely a [Little Hoover] Commission report—it is a call for action. Other states, cities, and countries are surging forward with strategic plans to harness the power of artificial intelligence in ways that will improve their economy, public health, and safety, jobs and environment. The race to develop and use AI for good is more akin to a marathon than a sprint. It is fast paced and highly competitive, and one that California should be leading but is not.
    https://lhc.ca.gov/report/artificial-intelligence-roadmap-california
    My conclusion is that commercial AI development is evolving faster than the policymakers and government bureaucrats can comprehend. The Little Hoover Commission agrees. AI is becoming an everyday part of our lives, yet they are invisible to the user. Examples include document retrieval, text classification, fraud detection, recommendation systems, personalized search, social network analysis, planning, diagnostics, and testing — advances that have powered Google, Netflix, Facebook, and Amazon. Machine learning an AI subset is having significant success in computer vision, speech recognition, game-playing, and robotics.
    AI is here, and it is happening. The best role of government is to get out of the way and not create stupid rules to control imagined bias, lack of diversity and demand unrealistic transparency that slows down the development progress. China is not worrying about those social constructs.

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  3. Russ Avatar
    Russ

    Sutter Health adopts AI platform for symptom checking
    Those early stages of onset are some of the most critical in setting the stage for care, which is why Sutter Health says it’s adding a new artificial intelligence-driven symptom checker. The Sacramento-based health system is partnering with application developer Ada Health to build a symptom check platform into Sutter Health’s website by the end of February.
    London-based Ada Health has been making global strides with its health app since its founding in 2011. The company boasts about 5 million users and has partnerships with Amazon, Germany’s largest health insurer and the Bill and Melinda Gates Foundation.
    The app leads users through questions about their medical history and the severity of their symptoms, and then uses AI to present potential causes and next steps for care, which can span from a home remedy or a trip to the emergency room.
    https://www.bizjournals.com/sacramento/news/2019/02/13/sutter-health-adopts-ai-platform-for-symptom.html

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  4. Bocephus Avatar
    Bocephus

    ,,,people have already been boycotting the self checkout lanes at the markets and stores saying that those machines are killing jobs. ATMs are convenient but it can be annoying to go into a bank with fewer tellers…and these first world issues don’t even scratch the surface of the A.I dilemna

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  5. George Rebane Avatar

    Bocephus 740am – … and your point??

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  6. Bocephus Avatar
    Bocephus

    ,,,just adding to the conversation,,,shades of the coming anti -A.I. revolt???

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  7. George Rebane Avatar

    Bocephus 902am – OK. However, compared to the larger scope of AI’s advent into our lives and commerce, such ‘boycotts’ are truly negligible. The Rebanes, no shrinking violets where new technologies are concerned, avoid the self-checkouts only because their design and function is still clutsy. But that will improve in due course, and it will replace a lot of the workforce in retail stores. And the speed of adoption will be a function of how well union-lobbied govts mandate ever higher wages for humans who deliver no more productivity – in fact, providing the same service for more cost actually serves to lower productivity, thereby raising prices for customers.
    The systemic unemployment problem should not be folded into or hidden under other social problems – it should stand alone and be addressed head-on after a considerable national debate that must start sooner than later. RR has covered it for over a decade, and I have discussed it with our politicians. No one wants to touch it (yet). We should not wait for blood in the streets and imitate the proto-communist histories of eventual tyrannies.

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  8. Bocephus Avatar
    Bocephus

    ,,,it has always been about corporate greed and stiffing the worker,,,hence the off-shoring of our manufacuring, layoffs, etc.

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  9. George Rebane Avatar

    Bocephus 1048am – How do you respond to the seminal premise of capitalism that the capitalist undertakes the risk of losing his investment in order to make a profit, and, of course, as much profit as possible. In the Revenues – Costs = Profit, it is clear how minimizing costs increases the expected profits and therefore helps justify the risk taken. Then when owners of an enterprise reduce costs by minimizing the cost of labor, do you then consider that action is the result of character deficiencies such as ‘greed’? This has been the message of socialists and communists since the days of Marx; do your sentiments align with those ideologies?

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  10. Russ Avatar
    Russ

    AI is here and it may be dangerous!
    The creators of a revolutionary AI system that can write news stories and works of fiction – dubbed “deepfakes for text” – have taken the unusual step of not releasing their research publicly, for fear of potential misuse.
    OpenAI, an nonprofit research company backed by Elon Musk, says its new AI model, called GPT2 is so good and the risk of malicious use so high that it is breaking from its normal practice of releasing the full research to the public in order to allow more time to discuss the ramifications of the technological breakthrough.
    At its core, GPT2 is a text generator. The AI system is fed text, anything from a few words to a whole page, and asked to write the next few sentences based on its predictions of what should come next. The system is pushing the boundaries of what was thought possible, both in terms of the quality of the output, and the wide variety of potential uses.

    https://www.theguardian.com/technology/2019/feb/14/elon-musk-backed-ai-writes-convincing-news-fiction
    Media just laid off 2,000 reporter and editors since the first of the year, with this machine they can lay off even more and still generate high-quality fake news. OMG do I love technology?

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  11. Russ Avatar
    Russ

    MIT Technology Review has a gloomy review of the impact AI will have on many medium to small companies, most lack the needed financial and human resources.
    A.I. might eventually transform the economy — by making new products and new business models possible, by predicting things humans couldn’t have foreseen, and by relieving employees of drudgery. But that could take longer than hoped or feared, depending on where you sit. Most companies aren’t generating substantially more output from the hours their employees are putting in. Such productivity gains are largest at the biggest and richest companies, which can afford to spend heavily on the talent and technology infrastructure necessary to make A.I. work well.
    This doesn’t necessarily mean that A.I. is overhyped. It’s just that when it comes to reshaping how business gets done, pattern-recognition algorithms are a small part of what matters. Far more important are organizational elements that ripple from the IT department all the way to the front lines of a business. Pretty much everyone has to be attuned to how A.I. works and where its blind spots are, especially the people who will be expected to trust its judgments. All this requires not just money but also patience, meticulousness, and other quintessentially human skills that too often are in short supply.

    The full article is on Medium–https://medium.com/mit-technology-review/this-is-why-a-i-has-yet-to-reshape-most-businesses-2f029d83b8d5

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  12. Russ Avatar
    Russ

    The true cost of AI: think Thailand, not truck drivers
    Consider, for instance, framing the question of artificial intelligence in the context of inter-country inequality. There are a variety of reasons why developing countries are likely to struggle rather than thrive as the AI Revolution gets properly underway. The first is the rapid erosion of the developing world’s traditional labour cost advantage. Notwithstanding just how low the cost of labour is in many developing countries, AI-powered robots and machinery are already at the tipping point of cost efficiency compared to human workers. As technology continues to improve, the sheer economics of AI will see a whole swathe of companies replace their factories and operations in the developing world with new AI-powered facilities staffed with robots. This wave of ‘reshoring’ (the rolling back of ‘offshored’ work) has been flagged even by the World Bank in their 2019 World Development Report.
    This decimation of manufacturing jobs in the developing world will be particularly harsh for states reliant on ongoing investment from foreign corporates in manufacturing, like Vietnam and Thailand. Not only do those countries rely more heavily on sectors like manufacturing that are most prone to automation and disruption, but job losses within those sectors are disproportionately felt by developing countries. When Nike eventually decides to automate its manufacturing processes, heads are hardly likely to roll in its plush headquarters in Washington County. Rather, the hundred thousand men and women working in Nike factories in Indonesia will be left with bereft prospects.
    Neither is the damage likely to stop at manufacturing. Cheap, ubiquitous robots combined with intelligent AI systems will disrupt industries of all kinds, but particularly those reliant on manual labour or repetitive work like agriculture and energy. Again, developing economies are disproportionately reliant on those industries at the most immediate risk of large-scale redundancies brought about by automation.

    Read the rest HERE:
    https://medium.com/@mattjbartlett/the-true-cost-of-ai-think-thailand-not-truck-drivers-7fd7062277fe
    Conclusion: At this stage, however, these dark scenarios remain hypothetical. The histories of our time have not been written yet. But what seems plausible, if not downright likely, is that developing countries will soon face one of the most difficult economic challenges imaginable. How will states react if 10, 20, 50% of their working population become redundant over a decade? What happens to the relative stability of the global order? We had better start thinking about answers, and quickly.

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  13. George Rebane Avatar

    Russ 809am – Yes, no one has denied that the systemic unemployment problem is restricted to the US. However, we have to take care of it first here, or we will be in no position to even consider, let alone impact, the labor problems that will occur in less-developed countries. The near term solution is to remain sufficiently wealthy and militarily strong enough to protect our citizens and sovereignty.
    Since we have not given much thought to systemic unemployment within our borders, now is NOT the time to start using our limited political bandwidth and worry about Thailand, but focus on our truck drivers.

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  14. Russ Steele Avatar
    Russ Steele

    George, Agree USA first

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