Artificial Intelligence has the potential to change human work and productivity at a magnitude comparable to the industrialisation. This change is incremental rather than revolutionary.

1. REAKTOR
www.reaktor.com
Opportunities in
Artificial Intelligence
Finland's Sustainable Investment Forum
Annual Seminar, October 2016
Olof Hoverfält, Reaktor

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REAKTOR
OCTOBER 2016 — OLOF HOVERFÄLT
EXPONENTIAL TECHNOLOGY ADVANCEMENT
Root driver: exponential technology advancement
Exponential improvement
Linear improvement
Disruption
Time
Performance

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Innovation across industries can be profoundly disruptive
REAKTOR
OCTOBER 2016 — OLOF HOVERFÄLT
EXPONENTIAL TECHNOLOGY ADVANCEMENT

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Innovation across industries can be profoundly disruptive
REAKTOR
OCTOBER 2016 — OLOF HOVERFÄLT
Tesla Model X drivetrain Audi Q5 hybrid quattro drivetrain
EXPONENTIAL TECHNOLOGY ADVANCEMENT

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Artificial Intelligence types
REAKTOR
OCTOBER 2016 — OLOF HOVERFÄLT
Strong AI Weak AI
“Artificial general intelligence (AGI) is
the intelligence of a (hypothetical)
machine that could successfully
perform any intellectual task that a
human being can.”
“Weak AI is non-sentient artificial
intelligence that is focused on one
narrow task”
ARTIFICIAL INTELLIGENCE
vs

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OCTOBER 2016 — OLOF HOVERFÄLT
Strong AI

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OCTOBER 2016 — OLOF HOVERFÄLT
ARTIFICIAL INTELLIGENCE
Artificial superintelligence and technological singularity

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OCTOBER 2016 — OLOF HOVERFÄLT
Weak AI

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What colour is next?
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OCTOBER 2016 — OLOF HOVERFÄLT
ARTIFICIAL INTELLIGENCE
?

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What time is James likely to return from work on Friday?
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OCTOBER 2016 — OLOF HOVERFÄLT
ARTIFICIAL INTELLIGENCE
?

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Which person do you think might like the red bag?
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OCTOBER 2016 — OLOF HOVERFÄLT
ARTIFICIAL INTELLIGENCE
?
A
B

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What connects these images?
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OCTOBER 2016 — OLOF HOVERFÄLT
ARTIFICIAL INTELLIGENCE

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The human brain is a master of pattern recognition
REAKTOR
OCTOBER 2016 — OLOF HOVERFÄLT
ARTIFICIAL INTELLIGENCE

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Pattern recognition is one central problem in AI
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OCTOBER 2016 — OLOF HOVERFÄLT
ARTIFICIAL INTELLIGENCE

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OCTOBER 2016 — OLOF HOVERFÄLT
Machine learning

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Machine learning
REAKTOR
OCTOBER 2016 — OLOF HOVERFÄLT
ARTIFICIAL INTELLIGENCE
Adil Moujahid, June 2016: http://adilmoujahid.com/posts/2016/06/introduction-deep-learning-python-caffe/

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Machine learning
REAKTOR
OCTOBER 2016 — OLOF HOVERFÄLT
ARTIFICIAL INTELLIGENCE
Adil Moujahid, June 2016: http://adilmoujahid.com/posts/2016/06/introduction-deep-learning-python-caffe/

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Neural networks and Deep learning
REAKTOR
OCTOBER 2016 — OLOF HOVERFÄLT
ARTIFICIAL INTELLIGENCE
Adil Moujahid, June 2016: http://adilmoujahid.com/posts/2016/06/introduction-deep-learning-python-caffe/

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Neural networks and Deep learning
REAKTOR
OCTOBER 2016 — OLOF HOVERFÄLT
ARTIFICIAL INTELLIGENCE

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Neural networks and Deep learning
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OCTOBER 2016 — OLOF HOVERFÄLT
ARTIFICIAL INTELLIGENCE

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ARTIFICIAL INTELLIGENCE
Natural language processing

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OCTOBER 2016 — OLOF HOVERFÄLT
ARTIFICIAL INTELLIGENCE
Natural language processing

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OCTOBER 2016 — OLOF HOVERFÄLT
ARTIFICIAL INTELLIGENCE
Computer vision and visual recognition

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ARTIFICIAL INTELLIGENCE
Complex combinations

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IMPLICATIONS OF AI
+
The first major improvement in work productivity
was adding power to existing tools

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OCTOBER 2016 — OLOF HOVERFÄLT
Initially, power had to be produced centrally
IMPLICATIONS OF AI

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Commoditised energy democratised production
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OCTOBER 2016 — OLOF HOVERFÄLT
Human power
Distributed but inefficient
Central power source
Efficient but centralised
Commoditised power
Distributed and efficient
IMPLICATIONS OF AI

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Today, power is ubiquitous
REAKTOR
OCTOBER 2016 — OLOF HOVERFÄLT
IMPLICATIONS OF AI

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Enabling easily adding power to any tool imaginable
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IMPLICATIONS OF AI

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+
The next major improvement in work productivity
is adding intelligence to existing tools
IMPLICATIONS OF AI

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Initially, intelligence had to be produced centrally
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OCTOBER 2016 — OLOF HOVERFÄLT
IMPLICATIONS OF AI

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Commoditised AI is democratising innovation
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OCTOBER 2016 — OLOF HOVERFÄLT
Human intelligence Centralised AI Distributed AI
IMPLICATIONS OF AI

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Today, AI is becoming ubiquitous
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OCTOBER 2016 — OLOF HOVERFÄLT
IMPLICATIONS OF AI
Intelligence

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Enabling any tool to be connected to intelligence
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OCTOBER 2016 — OLOF HOVERFÄLT
Intelligence
IMPLICATIONS OF AI

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OCTOBER 2016 — OLOF HOVERFÄLT
Artificial intelligence is doing to
cognitive operation
what electricity did to physical labor
IMPLICATIONS OF AI

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OCTOBER 2016 — OLOF HOVERFÄLT
As a result, less human intervention is needed in execution
IMPLICATIONS OF AI

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OCTOBER 2016 — OLOF HOVERFÄLT
This pushes us to
rise to higher
levels of human
contribution
IMPLICATIONS OF AI

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OCTOBER 2016 — OLOF HOVERFÄLT
To understand the potential long-term impact of AI,
we should look beyond its current applications and
focus on what the underlying advancing technology
fundamentally enables.
SUMMARY

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REAKTOR
OCTOBER 2016 — OLOF HOVERFÄLT
In evaluating the sustainability of a business,
it may be wise to look at wether the company
accelerates this development or tries to delay it.
SUMMARY

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REAKTOR
OCTOBER 2016 — OLOF HOVERFÄLT
@Hoverfalt
LET’S CHAT!

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