 Yes, good morning. It's a great pleasure to be here. What an amazing venue. I Went back to the beach last night and I had a hard time leaving But my voice doesn't sound like that because of that because I've been a little bit having a cold for a few days So so it's been a nice evening and thanks very much for having me here You know as I was listening to the introduction. I've been thinking about what the future holds and And in the last 10 years I've given I don't know almost 1,000 speeches or something In the last five years I keep getting this question when I speak to people about what is happening with people with humanity What's gonna happen with us? Because today it seems like everything is about technology. In fact, you could say technology is a driving force of society And 10 years ago when I 15 years ago when I was an internet entrepreneur in the US, you know We were always talking about if we can do something. I Started a company like Spotify, you know music service in 1998 for the iPhone before 4G I was a stupid idea, of course that didn't work I was way too early and we were always asking the question if this works, you know, how would we Do this and today, you know the question that people ask is not if it works because you can say that pretty much anything is going to work Human engineering of human genomes editing people language translation Robots that fly flying taxis self-flying planes Now you can say okay, maybe 10 years 15 years 20 years, but So if it all goes if it's all possible, what's gonna happen to us because you know, we are not Limitless, you know, we have limits. We're human. So I wrote this book last year technology versus humanity And I think some of you have gotten a copy. I do have one free copy afterwards if you if you want it then let me know Okay, so we're gonna have a discussion later and I would really like to hear what you think about this I think we have this huge opportunity to make the best of the future. We are actually at a very interesting place right now With the takeoff point of all these possibilities We have come to a point where we can safely say that in the next 20 years, we may see more changes in the previous 300 years That includes for example energy We're at the end of the oil and gas period. I Mean if you live in the Middle East This is a daily discussion. It's obvious. We're heading towards a point to where solar renewable energy can cover a hundred percent of our needs 15 years 20 years 25 years not 200 years We're also getting to the point where machines computers are learning What's called cognitive computing And we're heading to the point roughly in five seven eight years where the first machine will have the capacity of the human brain Well, some people would argue that's already here kind of and it's just five hundred million dollar machine With quantum computing and then my colleague Ray Kurzweil who's with other futurist says in 2050 we're going to have one machine that has the capacity of all human brains Of course, that doesn't mean that it's gonna feel or have emotions or understand anything. It's just computation but still If we have machines that are this powerful How are we going to control them? Will they actually be our servants or will there be our terrible masters? I have a pretty optimistic view of the future I think we are at the point to where we can still determine what that means where we're going with this and what it does Last night. I took some pictures It came to me that really what we are all about is going to be very difficult to digitize But yes, you can take pictures you can create a virtual room but two seconds here With each other provides more information than than two years in the virtuality room And why is that? That is because the way that we're set up as humans We communicate on thousands of different channels Marvin Minsky who was the founder of artificial intelligence really he'd like to say that humans exist in the ecosystem of minds For example, when we meet and we talk There's more information being conveyed in what you don't say than what you say Now try to get a computer to understand that Your computer says you said the following that means the following is just there wasn't one that's binary, right? computers don't exist So They can do lots of things for example IBM Watson can read 1.2 million books per minute That's quite impressive, you know But is that the same the knowledge? There's a certain kind of knowledge Is IBM Watson going to tell me whether I should have this child or not if there's a genetic defect for example because it read Wikipedia So basically there's a huge thing coming up where we have to think about this Convergence of man and machine So I've been doing this you know since roughly 15 years and and a new topic has emerged in this conversation because you know Of course, I do a lot of work in technology And many of us if you from the tech business, you know, we're extremely excited about technology And I'm also very excited. I try everything, you know But now we're also Looking at this topic of saying well, you know, how can we maintain what we are as humans because as humans We are not really technology. This is a kind of a Paradigm question. Do you believe that humans are technology? If you go to Silicon Valley, the answer is often yes We're just fancy software Or bad wet wear what's called wet wear, right, you know blood flesh and blood, right? We need upgrades Maybe that's true. I don't know Are we enough or we're not I mean basically I my book I call this two different universe of thinking one is about Algorithms and the other one is about and row rhythms, which is a word I made up in the book because I couldn't find a good word for this And row rhythms are really all the things that make us and rose, you know, and Roy. It's not and rose Feelings emotion imagination intuition ethics values beliefs You know, if you make a list of this I did that when I was writing the book It's approximately a thousand different words That are human only very hard to explain In fact that the main paradox about computing is that there's so many things that we don't know that we know That all exist and we don't really know what is if you if you observe a child that's trying to ride a bicycle I mean you could explain to the child you get on like this You put your foot like you can do all that but basically the child would figure out how to ride their bicycle for one reason or the other without explanation So this is a really important distinction And I would submit to you that the future of us is not to become Algorithms because there would be a reduction of what we are we're much more than that And I'll tell you in a minute why that is and you know why I put all that stuff into a book But it's important to realize that today because technology is changing our lives increasingly fast And I would say to 95% positive and I'll tell you why that is The future is now a mindset not a time frame If you don't have a future mindset, it would be very difficult for us to be successful And I find makes no difference if you're 15 or 25 or 65 to understand the future and Make time for the future So I get this a lot the last six months have been terrible as far as the future is concerned, right? I mean Donald Trump hasn't exactly brought up the safety level in the world He just fires everybody who was in his way So Regardless of Donald Trump or Erdogan The future is better than we think A lot of people I speak to they're saying oh god, you know terrorism and Biowarfare and surveillance and you know, what have you and x-machine and robots killing us and The first thing you want to do when it's about the future is completely ignore what comes out of Hollywood, right? I mean, it's entertaining to watch all those movies But it's primarily based on fear You do not want to go into the future based on fear That would be a very bad idea We have to find a nice mix of the two things if we look at those facts they have one thing in common Everything is actually better than we thought that decline of poverty huge Education increasing literacy increasing child mortality declining vaccination democracy with a few exemptions like turkey So now when a situation would say well, you know, if that's the future. What is the next thing where we're going for this? solar energy We've talked about this for 50 years Finally, we are at the point where if you invest in oil and gas today like running a pipeline from Alaska to Mexico It is a very bad idea By the time it's done you won't need it We're always gonna have oil and gas But today, you know, 84% of energy is all in gas and coal In the future is gonna be a hundred percent renewable in the not too far away future 20 years. I Mean the progress on battery technology is mind-boggling If you take a look at the startup list of who gets funded, I looked at it again last night 2,740 companies are funded to revolutionize batteries I mean, you know, it's it's the scientific breakthroughs are mind-boggling and the other one genetic engineering Used to cause millions of dollars to get your DNA analyzed in roughly a few years will be cheaper to make a phone call I mean to do the DNA than to make a phone call I Know what that means if all our DNA is analyzed and scanned we can compare We can possibly and cancer I mean today, there's like 20 30 million people with their DNA analyzed because it's expensive, you know the thousand dollars So we're heading into a future where basically what's happening is that we're at the beginning at the takeoff point of an exponential curve It's very important to remember this when I started first on the Internet and doing tech stuff, you know, we were in the beginning of the curve So then you would double zero upon zero one and would double that to zero point zero two is still nothing Today Moore's law Metcalf's law Moore's law was kind of ending when it's about chips But being replaced by quantum 3d computing So you go from four to eight to sixteen in a very short time Depending how you look at it off to 18 months seven years to 128 30 times up the curve one billion I mean our world will be so dramatically different. It's hard to imagine The kids of my kids will never know how to drive a car Because they won't have to they can just speak to the car will just go off, right? They won't they won't definitely they will not know what a CD or DVD is And there'll be a hundred years old on average and we're talking about changes that are huge Fundamental changes of how humans relate to technology and here's the big difference, you know in the industrial evolution of the Internet Technology was outside of us. So we have a steam engine. We can go quicker. We have the Internet. We can browse Yeah, but today technology is going inside of us genetic engineering now in the Bolton our bloodstream connecting our brain to the Internet Sounds like science fiction is not Hold it from ballgame. So basically what's happening here is that this is a very important thing today technology is 95% positive Yeah, we have some issues, you know privacy surveillance abuse Facebook A minor issue, you know, but most people don't really think about that. I mean, that's be honest Most people say our technology is great. Let's use it, right? So so that exists today and we have some minor issues, you know, we're look at this but as technology advances exponentially What would happen with this? Right with those issues also advanced exponentially Like, you know in the US now there's discussion about requiring people from the shingon countries or from Europe and others To actually divulge the password to their social media when they enter the US. I Would say that that qualifiers as they as the devil It's like, okay technology makes it possible, but is there a good idea? probably not so Now we're in the age of ethics and I don't mean ethics like religion or any of that stuff. I mean just bottom line things and Here's the difference between ethics and say Sustainability or CSR, you know nice to have parenthesis We talked about this for a long time. It is not an Opponent and an opportunity is not a something that we can just talk about that. We are humans We are humans, right? We are humanity is not something that's up for discussion Environmentalism is maybe if you're so inclined Sustainability is a discussion item, but humanity is not that's just about us So it's about the bottom line of who we are So a great quote from from Potter Stewart saying ethics is knowing the difference Between what you have the right or the power to do and what is the right thing to do? So since most of you are technology companies in this room You are getting tremendous power every day more power Because the world runs in technology If we have the Internet of Things connecting as Cisco says Roughly 600 billion devices in seven years Who's responsible will technology be like the gun lobby that says oh, you know, it's not the guns that kill people It's people that kill people That's quite cheap That will not work here. We're building these things that changing society that changing politics that changing culture And we are responsible for what we built And once we connect our health records our digital money our shopping our cars our homes Our education our into our brain to our to the Internet I mean, we're gonna have to be a little bit careful about what is going on with those connections Not just a security issue, but also a human issue So as technology is proceeding, you know in the years of Steve Jobs There was one keyword that he was always using And I had the fortune to meet him once or twice, you know for about two seconds until he told me to get lost But but basically in this order, you know magic was the keyword for technology for a long time magic technology and We still feel like it's magic You can be on the beach in Sant Rapé and what's up your kids in South Africa That's magic and you can do your you know, you can sell stocks while you're surfing on the beach if so inclined But so magic and then many kinds It becomes manic to where we we wake up at 3 a.m. And we have to do a Facebook update Or we feel naked without the mobile phone. It's kind of a funny thing You know, it's like these days sometimes when we go out now we we say okay We leave the mobile because that's like going back to nature You feel about that but so and and sometimes in Asia when you have dinner somewhere, right? I mean, I am the only person that's actually talking to to anybody Everybody else working on two tablets at the same time chatting with some Pokemon in the sky So in that case I would say that's clearly toxic I Mean if we're gonna build more relationships with with with the screen than we do with people that is a toxic undertaking, right? That can't be good for us Steve Jobs Refused to give his kids the iPad. I Don't know if you know this He said it was too good Too addictive He would not want to live without it And lots of tech people actually do that So our gay from Google his kids go to a Waldorf school, you know enter anthroposophical school where it's not allowed to use screens That's kind of an interesting thing. So, you know, as long as it's like this No big deal We get used to that we can deal with that But imagine if the future holds this Because it's exponential, you know if we're going to be in an augmented reality room You know Facebook just presented the new augmented reality tools and you could say if this works You would never want to leave it. It's just so much more exciting. It's like the best drug ever invented Because you know the the internet in many ways is the next cigarette already. It's like what we're kind of glued on to this But so that's something we don't want not personally or privately Let's say you're going to use HR analytics software human resources, right? Lots of companies use that now Analyzing what people do and how much they are worth Okay, and then when it's time to say well, we have to lose five people Let's have the software say who's the most useless person in the company You know how the software does it social media numbers of emails when you show up how often you interact Da-da-da, you know superficial stuff tripadvisor I Mean if you only eat what tripadvisor tells you you are in deep trouble Nevertheless, it's a fantastic tool. I Just wouldn't let it run my life So that's two different things and we have to be careful about that because I think ultimately we have to find a mix because Technology can always be abused So that's not a reason why we shouldn't have it obviously So in this world now, we're looking at the convergence of manned machine new relationships, you know these kind of Apps are everywhere now. We can speak to our computers Apple Siri Cortana Amazon Echo Google Home dozens And within just a few years, we're going to stop typing or downloading apps. We'll just talk And this is just around the corner because of course voice recognition is almost there So in the future if you have the list a little logistics manager, you just say hey You know, I've got the following problem needs to be there figure it out And then the bot goes out and talks to another bot and figures out what to do at no web interfaces no drop-down menus intelligent clouds and Of course, we're going to see robots everywhere. I Mean robots will be like what's up? I'm gonna be infinitely cheaper than they are now We're gonna have robots driving us robots flying us airbus is looking at the possibility of the first airplane That's without a person without a pilot. I Would hope it's only for freight, you know for that for the time being But maybe a night could could use that, you know, then you'd have a beating machine, you know And of course now we have robots giving out advice, you know, there's hundreds of companies You know these kind of companies that make robots that suggest you what what is in the food When you should take your pill and so on and so on right? So it's it's pretty mind-blowing now that that the headline of these companies reads all the same thing It always says this is not a robot. It's a friend I was kind of interesting, you know, if I look at the machine as a friend, you know, what is the next step? Maybe I can get married to one, you know virtuality and Robots trying to look like humans So that's really changing our lives and now natural language processing is the biggest point where that is happening It's getting close to perfection Again, this is something we've looked at either of 50 years But now it's almost there I'll show this example of because this machine can make a copy of myself It can actually learn who I am for my speech and everything you say to serial Cortana is saved in the cloud The machine can actually learn how to speak like you So if you die, you know, your wife can still have conversations with you. They're extremely useful But listen to this example Hey, now, have you heard about this new technology? Are you speaking about this new algorithm to copy voices? Yes, it is developed by a startup called Lyreburg. This is huge They can make us say anything now really anything the good news is that they will offer the technology to anyone This is huge. How does their technology work? Hey guys? I think that they use deep learning and artificial neural networks. Hillary is right And I can tell you that their team is great. I wish them good luck Well, you can tell it's not Obama and Trump and Hillary it's pretty close So not only can machines understand this they can also be like us Again extremely useful not mean this ironically right it's It's useful, but eventually what happens with us that brings up a key question What do you think we are How much do you believe in technology like do you believe that technology has the answer for everything? I mean, it's funny. You know when I speak to my friends in California. I lived there for 17 years Now I live in Switzerland where we don't really believe in technology But well to some degree, but when I speak to my friends in California, it's like, you know Yeah, do you have an issue it says well we can build something for that, right? I mean the reality is of course, you know, there is no app for happiness There is no tech that fights terrorism. I mean, there's gonna be a few things that we have to do ourselves And there is no no sense in Facebook becoming our government, which is what they want to be. I Mean that is some crazy idea. That's just mind-blowing. How much do you believe in that? How computable are we This is a key question because if we're not computable then you would leave certain things not to be computed So this really makes a difference in our businesses also because we should not automate certain things while we should definitely automate others. I Mean somebody making a flight reservation or changing a reservation in the call center. That's 20 million people work in call centers, right? People don't have to do that And there's not much intrinsic value in changing reservation You know, you don't have to be compassionate for the most time, you know to do that machines can do that So you're gonna look at roughly 90% of those people will be out of a job Because machines are learning how to do this They're not just learning the language, but they also learn to understand us you know to actually make sense out of our lives So that's a key question. You know, who do we want to be in the future? Do we want to be smarter faster more like a machine? Do we want to be more human or both? Can we be both? I Was like to say no for I aspire personally for my future not for me to be smarter and quicker I think I have achieved some of that just kidding, but to be more human That's actually much harder and if you have kids you on understand there's no point in trying to do this Because every single computer is gearing up to do away with you if you become like them Today most computers are stupid. I mean, let's face it They still can do very limited things are getting very smart But they're not at all like us in five to seven years game over Phantom computing million times the computing power There's just no way you're gonna compete with a machine that can calculate the entire traffic pattern of the world for the last 34 years I mean our brain doesn't work that way So if you're in technology your position on this topic defines your organization's future value Because now it's about finding a balance and you see the big technology companies like Microsoft and others Already doing things like the partnership on AI To figure out how to create human value from technology Until now it didn't matter because we didn't have enough value in technology to really perfectly do all these things But in five to seventy years technology can do anything and then the big question is not how or if but why and who Well who the right now the answer is Silicon Valley, right? I'm not saying that badly. It's just because they were the best at are the best at doing what they were doing But here's the key question. It is out of me. How far would you go? And it's about this interface of man and machine Where would you personally cut the line? If there was a machine Well a software that would allow your neocortex to connect to the internet Would you use it and the answer I get from lots of people is of course, you know, I would be super human But it would have a few side effects is like, you know, you can say that you want to try this drug You know, you're gonna have some pretty amazing experiences It's still not the same as me and of course it has certain dangers as we know. So, you know wearable computing the quantified self Prothesis I mean think about this for a second If you had a traffic accident traffic accident you lose both legs Now you can get a prosthesis that will be better than your legs Literally, it's very expensive still, but if you're into climbing This prosthesis will actually make your master mountain climber It won't do much else, but it will do that and now it's the first people who want to have their legs removed to get the prosthesis Now that is a bizarre twist of course the same technology. How far would we take this? We have machine therapists I mean, this is not far-fetched because now in the US is the first couple trials for judges that put people on back on the street on probation based on algorithms The machine says this person should go free now because I don't know maybe they're twittered a lot I don't know what whatever, you know, or they eat their food burn nicely every day. I don't know But and of course now we can change our age Big theme in Silicon Valley the end of dying lots and lots of startups Looking at improving our age, which I think to a certain degree, of course will be a good idea But forever turning us into gods You know, I'm not religious but I mean this is a significant challenge, you know Can everybody be God if there is a God, you know, can we be like God all of us? Can we program ourselves to be different? Should we do that? And if we did that who was in charge? So those are some minor issues, you know and leave you for the rest of the day to struggle with this But as technology now is moving forward into what I call the mega shifts This is a big part of my book It's not just digitization. I mean that would be easy We're going to a world that is subject to those ten trends Datafication turning things into data Cocknification We'll distribute the slides later by the way if you want to download the details But I mean there's so many things happening and again, I would say that's for us in this room 95% powerful and positive because not only do we have entirely new businesses coming We can also solve really very large global problems Datafication coctification augmentation if you're a doctor Making the rounds in the hospital if you can wear augmented reality glasses you become a super doctor basically But does it mean you would wear the same glasses to have dinner with your wife? Probably not because it would not be human in that sense I they would be kind of augmented like a like a viagra for the head, you know So maybe not such a good idea So the smart city is such a thing, you know the smart city global revenues expected from this whole smart city ideas Roughly 14 trillion per year and the smart city is obviously beyond all reproach something that we would really want for lots of reason So these trends are all impacting this kind of possibilities That brings me to my key point here one of my key points today is we're looking at a future where All of a sudden we have two realities This is our current reality 84% of the world energy oil coal gas Nuclear and that's ending because now we're inventing rapidly inventing things and the solar industry has been through it So several waves of ups and downs as I'm sure you know But now it's clear panels are 98% cheaper than before Battery technology exists. We're building the intergrid What's called the intergrid of of energy? result the emir of Dubai Sheikh Mohammed said last November is That the goal is to celebrate the last oil barrel we export And this is from a country that is probably 150% reliant on oil. I Mean imagine this reality warped and this is everybody's challenge today. We have existing business and Then we have new business So if you're in banking, you know You're like an oil company here, you know, the future isn't going to be people paying ten dollars to send the hundred dollars to America That's just not gonna happen So now we have a challenge of living in two worlds as I like to say business as usual is dead Because of technology It just takes longer, you know, so if you're in the banking business, you're regulated First the media companies e-commerce mobile phones calling And now things like insurans and financial industries and printing So I would say it's no longer business as usual. It's pretty much business as unusual That's why I have the two worlds here, right? So all of a sudden we're facing new possibilities Tesla said, okay If we want to be successful, we're going to publish our patents This is the reverse of every other company in the world pretty much like the farmer industry Tesla said take 2.7 billion dollars of our patents and everybody else can use them to develop batteries So General Motors and Toyota is now using the the patents trademarks from from Tesla for free Amazon Prime Amazon launches videos, but instead like every other company in the world It does not come to me and says, you know, we've got videos now you can push here to pay, right? It says hey, we got videos now. They're free All right, I mean this is So this is one thing to think about for the future be unusual and this is a key success factor Do the reverse In business as unusual as a key for us in the future because now we have this wave of change You know, if you if you're in this sector here Education banking the military energy government food You're still on the beach of change, you know the wave of change is coming and I was part of that first wave you know the media companies and telecoms and the e-commerce and all these things and that wave is rapidly going to sweep over all those industries I Think if we observe what happened in the past then we can be quicker and responding and thinking about what that means Here's a quick example of a company that is trying to actually do that in the medical field Well, you get the point right if this works 90% less doctor and hospital visits Remote diagnosis just like 20 companies doing this one couple of them in the expires in the US It's not easy to do but this company is promising that if it works and that they're rolling out later this year in China It will do and remote diagnosis better than a team of 10 doctors and For 98% less money So this is really how we are changing the world in a really fast way And I think we can safely say that as far as people are concerned Anything that can be digitized or automated will be That's the law of digital Darwinism basically, I Think that's a good thing because there's many things that happen when this happens. The reverse is also true Anything that cannot be automated or digitized or virtualized becomes much more valuable Let's think about that for a second. What are our lives about what we do? I mean 98% of what we do is very hard to digitize relationships trust understanding Purpose so the thing is that if you work like a robot You will be disintermediated In America, they like to say if you can describe your job a robot will take it so our future is to design jobs that are Put the human inside right that are human only if you have kids you have to think about that Don't let your kids learn anything that is a routine Bookkeeping financial advice driving fast food, of course, you don't have to learn fast food You just do it. I suppose But these are jobs that are going away like 50 60% of all jobs and The good news is because of all this we can move up the food chain and create new jobs and also think about the new definition of work That won't be easy because in the meantime, what do we do with people that don't have a job? That's a challenge But having said that I think it's much more positive than it looks And you know the debate in the last couple of weeks and months about globalization, right? I mean In the US are not even looking at this as saying globalization is an issue. It's not it's over Automation is the issue In computers that get smart can automate pretty much anything literally anything including being a scientist. I Don't know if you had ever heard about cloud biology in the pharma business rather than having a lab doing the experiments in the lab Which is costly takes a long time you program it in virtual reality in the cloud and You can run the hundred trillion if you want in four weeks. Just have to have a big computer. So Really what's happening here is that we're moving into the world into a world where data is true to the new oil And I've been saying this for 15 years in 2016. It's finally true that data economy made 7.8 Yeah, 7.8 trillion dollars and the gas and oil economy was roughly six trillion dollars Data economy means, you know social media networking advertising search cloud computing So data is a new oil and artificial intelligence is the new electricity electricity means Most of the data that we're using is uses we can't do anything with it It's too big. It's unstructured 95% of data is not actually being used like logistics at how much data you have But then exactly how would you go about that? I mean the data stream of shipping for example, I don't know. It's probably something like like 500 billion sets per day Put that all together and then artificial intelligence can look at this and run simulations now the most powerful companies in the world They're no longer on this side of the equation All in banks, they're still there obviously They're all in technology Many of you are here Consider yourself lucky because basically this is the old pair and this is the new paradigm And this list goes on forever. Most of those other companies down here are starting to be Asian and Chinese It's a very very powerful situation, but I tell you this Really what's gonna happen here is, you know, you know how regulated oil and gas has been well after a while It didn't really work for a long time, but all the banking business Regulation and understanding of how things should be is coming to the sector also It comes with the power Much better for technology companies to self-regulate Now Facebook said they're going to hire 3,000 people to fight fake news Let's see what that does not convince on this we have to do something to make that work and Added to this is this new two new things artificial intelligence and machine learning a quick definition because most people don't really understand The terms are very confusing Machine learning is the science of giving the computers the ability to learn and find insights Machines that are not programmed Last year we had Google DeepMind won against the world champion and go That goes in a Chinese Korean game 3.5 trillion possible moves. It's not logic. It's strategy It was unthinkable a computer could learn how to play go But what did it do it observed hundreds of millions of games and played simulations and then move 37 against the world champion and go Lee said all the machine made a move that no human would have ever considered an utterly stupid move and Won all of the games after that Because the computer figured out that there is another way to win which a human couldn't have because of the brain capacity And artificial intelligence is the art of emulating humans those two things will have huge impact on logistics mobility and transport Among many other things, of course, we're going to see a 3d printing of pretty much anything in 10 years Does that mean we're gonna have less shipping maybe a little bit when I ship the printers instead maybe But of course everything is going virtual everything is going Digital so you've seen the movie X machine. So I'm gonna quickly talk about thinking machines Man a lot of people are worried about thinking machines Because it kind of seems like when IBM and other companies are talking about cognitive computing and you know computers that can think We thought of ourselves as being intelligent at times at least right teenagers exempt but with we thought of ourselves as being Thinkers, but here's the reality of that right basically the way it's shaping up. There's four different kinds of intelligence Okay, there's three human intelligence in that is intellectual social and emotional Much of this we don't really understand This is just something that we do that we don't and then there's machine intelligence, which is based on zeros and ones You know trillions of them So it's really important to understand that the machine intelligent is a separate intelligence from us That comes on top or underneath hopefully of us. That's why we shouldn't fear machines that can think We should only fear the people that use them wrong For nefarious purposes. So this is really important to realize I think ultimately that our future problem Is not going to be that machines will kill us or that robots will take over the world when but that we enable the wrong People with this technology just like any other technology So There's a comparison I sometimes use when I talk about artificial intelligence and that is the 3d printing You know, this is a 3d printed flower And some people would think it's pretty. I think it's you know, it's alright, but you know bottom line is Artificial thinking is kind of like an artificial flower It is not bad it has its purpose, but it's definitely not a flower. I Mean you wouldn't believe how many artificial flowers are being not printed, but used it's huge business They handmade, you know with the textiles and stuff not printed Not yet and they have a huge market. I don't know how many billions, but it's huge But they're not real flowers So machines that can think are not real flowers, you know, they're not real thinkers like we do but nevertheless extremely powerful That we need to use them and put them in the right place put them right context I think this is really going to be important for our future to realize because this is where we are going If you can print tonight print this out put it up over your bed It is a computers that can think artificial intelligence connected to the Internet of Things That will change every single business in a very very fast time And there's Tremendous potential for us to do new things that were unheard of if you are Netflix user in the on-demand video service from Amazon or from Netflix or Amazon for that matter if you use that then Netflix knows everything about your viewing habits So if you forward what time you're watching if you jump around back and forth and it uses that intelligence to make new TV shows And to to basically say this is a good thing a bad thing and it uses that intelligence basically the Connectivity that we put in it. So this is what's happening. I think if you're a tech business in a nutshell We used to have different Sectors of technology that artificial intelligence your robotics and now the future really is that it's all converging That's based on quantum computing So basically now we're looking at business models that will be combined entities of all of these Now you can imagine the tremendous power that you can have if you get this right And that's what all big companies like Google and Amazon and and and Cisco and of course the Chinese companies by do Alibaba are aspiring to So this is something that we have to keep in mind, you know, basically it's a 25 trillion dollar opportunity to make everything smart Connect everything make it intelligent make it efficient and the Internet of Things is a promise of a new nervous system Essentially When we connect everything then it becomes like a human nervous system and new things become possible It's a possibility of creating new business models based on things. So sometimes I call this a new meta intelligence. I mean you can imagine the possibilities here Thinking cars parenthesis thinking elevators airplanes environmental system I mean the potential is mind-boggling and we can solve very very large problems pollution energy. I Mean imagine a world where we have abundant energy solar energy So energy becomes as cheap as Spotify for music and We are able to connect all the information and create new business models and we can solve very large global issues water logistics all that stuff but of course here there is a Challenge you know just the fact that we're connecting everything and optimizing everything That doesn't mean we we should be required to stop being human Because humans are actually not good at constantly connecting We can't do that when we're not we can't even multitask. I mean maybe our 15 year old kids can right, but We need to be able to be inefficient To make up stories to lie to make mistakes. I Mean if you went as far as saying okay The computer is much better at determining for example who should go out of jail or not on probation. That may be true But what if you take it further? Then you end up in a world that says well, you know the humans are always doing the wrong They're always killing each other or they're always making you know, they're not doing the right things. Let let the computers run politics Maybe Trump is already an AI. I don't know when I Mean how do we work on this way? We have to have the ability to just be human and that means for example to say you know what? I just can't do anything about this right now or I want to be inefficient by design and That is a clash with technology. So technology should not try You know as as the the old story in the Greek myth mythical world goes on King Midas You know the story of King Midas who is a very powerful king and then he gets a wish and his wish is that everything that he touches turns into gold So he gets his wish and then he can't eat he can't drink because everything is gold He dies If we wish to connect everything Let's be careful what we wish for Because when we connect everything is there any room for us for to disconnect and If we are always connected we're gonna die. I Mean there's been lots of research on Facebook rightly It's really interesting that the most depressed people in the world are the power users of Facebook I mean it's interesting. I would say there's nothing wrong with using Facebook But of course when it's an overuse then it's quite clear what would happen So in this world that we're heading into the world of the global brain Many of you in this room your companies are building that global brain Information sensors networks intelligence robotics AI We can do amazing things there, but clearly this is hell that you know, it's hell in heaven at the same time It can do amazing things or it can do really terrible things and It does require leadership and stewardship to figure out where we're going with this So on this chart you can see the possibilities of technology the benefits are this way and the dangers are this way It's from the world economic forum It's quite clear. There's two things that are the most powerful the most beneficial and the most dangerous That's the Internet of things sensor networks and machines that can think in other words. This is not really new You know technology is neutral until we use it We can use nuclear energy to make power Allegedly, oh, we can make bombs In fact the technology is almost the same So we can use technology to improve human beings, you know to fight cancer or We can make super soldiers Program our kids So I think there's an ethical imperative now This is not like the CSR imperative right this is a human imperative There's no discussion that we all want to be human some less than others maybe but There's an ethical imperative that everything we do with technology has to have a sort of collective use of mankind Right, it has to lead to a positive result If we don't do that, we're gonna be an arms race An arms race of artificial intelligence robotics geo engineering and Human genome editing My view is that we're still them very much the beginning of this and Bruce Schneer Who's a security expert he says if we don't do this one day there will be a possibility of just clicking somewhere and killing everyone I don't think that we're gonna head in this world. I think we're you know, we need to ask this question You know, who's mission control right now mission control is Silicon Valley. I'm not saying this badly. This is a fact, right? Technology comes from there and now increasingly from China Now we have to figure out you know, how can we make this work for us your Microsoft For example is working on the European cloud, you know, keep the data in Europe How exactly would we do this and how we're gonna control it and the other thing is if we have exponential technology and progress Will this lead to a larger divide? What so far it has yeah Technology has not been the level playing field that we thought it would be but inequality increasing the number one reason for terrorism inequality How do we do that? Well, we'll have to distribute the benefits of technology If the Internet of Things becomes a reality, should it just be Korea, Denmark and Switzerland and the US where this becomes a benefit? We can't do that We're gonna have to give it to those other places How do we do that? That's not capitalism. That's socialism. So a big discussion on this But if data is the new oil Do we need similar environmental protection laws? The answer is clearly yes Nobody wants regulation, right? I'd be the last person to propose regulation on this because we want innovation We want transformation want to go forward Well, we need a framework of a sort. I mean imagine if we hadn't regulated the oil companies So self-regulation isn't obviously a pretty good discussion The European Commission is working on this because the world's most valuable asset the economist last week you may have read it is data And we're going to see wars on data not an oil all the wars are over So in this world that's sort of our game I Mean we have the same cards we've always had all that murky stuff believes in the ephemeral things It's very hard to actually pinpoint. We don't even know what that is I mean if I asked you to describe your ethics to me wouldn't be an easy answer Like It's funny the other day I asked a question on the audience and somebody from the audience said is we want to maximize our profit Say that is not an ethic. I'm sorry So Will we need some sort of an EPA for humanity a protection agency for humanity? Very likely we need that need somebody that says, you know, this is possible We shouldn't be doing it and this is I think also up for technology companies is to invent this and where it's going because you know This is the bottom line. This is not miss obvious, right machines don't have ethics How would a machine know what I'm not saying? How would a machine understand my values my concerns my inefficiencies my feelings? I think a machine can understand my feelings by monitoring my face So I would say all Gert his 62 facial muscles express the following Gert seems to be angry, right? machine can do that But can a machine be angry? Well, it doesn't exist There's no existence. You know without existence. You can't be anything you can just simulate things. So this is really important Machines don't have ethics, but we must have ethics if we don't have ethics We die every human society without ethics has died or with the wrong ethics for that matter The other thing is that of course What is important to us is not about code What is important to us is stuff that's between us, you know, the the biggest killer in society today It's not certain habits of food or so. It's loneliness It is not connecting with others That's the number one killer in society today So what what is important to us is not binary is not code and we are experts in inefficiency How do we combine that with the business need for efficiency? Well, the answer is Every part should get its worth right find its right place Should you keep some people that work inefficiently? Absolutely. I Mean artists buying for example by enlarge have not known to be efficient But they're major driver of society Should we keep politicians some of them? They're utterly inefficient. What should we replace them with machines? I think that would be the wrong approach Because technology is more in neutral until we apply it and We are going to apply technology everywhere absolutely everywhere So this is important conversation that we have to have about what that means Noah Harari in his new book homodeos that some of you may know Talks about how there's significant danger that we become useless In the sense of economically useless Because the machines do all the work And I think that's not the case I think ultimately we're we're going to find a way to rise above this and I show you in a second what that means But we have those kind of ethical threats, you know, of course elections have been rigged by all kinds of social media working We don't really know how that works. We just know it's done with algorithms My hunch is that Trump is this is Trump's biggest chance of impeachment Comes from that corner if you can say such a thing even and We're living in kind of a bubble of media. I mean the most the biggest media company in the world Facebook Keeps on saying that they're not a media company I mean 2.1 billion people are on Facebook and 40% of them get their news on Facebook And still they hope they have 10 journalists That's pathetic. I mean at least you could take responsibility Having said so I understand of course why that is right, but you know, this is a significant issue We have to put that resource back in so part of that Environmental change now is happening because very soon we're going to start speaking to machines and This is a huge shift forward because speaking to machines is something that 85 of your person can do That I could do in several languages. I don't have to use my fingers Imagine what that would do for logistics for supply chain for procurement. You just say to the Google Home or Amazon echo said I need to figure out how to get this box to come to And it goes off and checks a hundred million data feeds and talks to other bots and comes back four seconds later And has a ticket printed out That's kind of what we can do today. It's just too expensive Good morning guys Okay, Google tell me about my day. Good morning, Alex traffic to work is heavy. It is 45 minutes by car Hey, Google tell me about my day. Good morning Ross, but 10 a.m. You have your first meeting great I'll take the kids All right guys grab your bags. Let's go It's funny, you know every time I hear that jingle jangle googly music When Google's one of my clients, but I say it anyway I always feel like there's something really wrong with it because the music is so weird, right? It's like there there must be some Stuff creeping in from the back one day we're gonna wake up and say Google Can't be a new life. What is the purpose of life and Google will say well, you know, it's to use Google, but so You know this guy's already very happy with with his use of Amazon Echo, but so this is what's happening This is our inevitable future. We're gonna move to a future where everything that we do can be aided But some smart machine in the cloud whether it's driving or flying or logistics or procurement or travel organization That's already happening. This is what every tech company is building and that's not necessarily a bad thing is however You know, it's kind of we have to figure out is it convenient. Is it cool? Is it creepy? I could be both obviously I mean Google Maps is convenient, right? But imagine an app that says I'm gonna go through all your email and the meaningless people are killed and put in the Drunk box, right? I Could be very convenient because there's a lot of those I could also be quite misleading I Mean imagine if we get a personal email from your son saying that you know his his girlfriend had a heart attack or something And then the bot would say thanks for your message and at this point. I'm not available and you know, we'll just automate that Big chance for that happening We may move to a world. We're all praying to the altar of technology If we go in this direction, especially if we can speak to them then of course it becomes even more tempting So We already live in a world where technology is pretty much omnipresent especially for our kids Where we are kind of growing up with technology in such a way, you know, where we Where technology kind of takes over every piece of our conversation if you see in the movies the TV show black mirror It kind of shows the next step which is to rate everyone to constantly be rated To connect all the time everywhere to see the data superimposed over people And that is exactly what Facebook has been proposing. Maybe they've watched the TV show and came up with a new business model So there's significant challenges here really what needs to be happening here is that Our future will depend on a wisdom of technology and humanity Technology is not our enemy. It's not our saver It's just a tool The worst thing that can happen to us if we take technology and make it the purpose of our lives And even though of course, that's not the design of technology, but it does look feasible So rather than going, you know Bothering with traditional dating and talking to people I just swipe on Tinder boom. I'm done I get to the result very quickly And that's not the bad thing, but if that becomes the new normal, what do we have right then it's basically a simulation So there's something we have to think about here's a great example The recent United Airlines incident you heard about this I will not repeat much of it right but in a nutshell Four people had to be removed for the staff to get on the fly on the plane Nobody wanted to leave the computer said will make a lottery to decide who leaves Three people left one guy didn't And of course, this is what happened right the guy was forcefully removed from the plane He was beaten he lost two teeth Now now United is under a major investigation lost 7% of markets of stock value over the incident You know this whole thing happened because of algorithms Happened because of technology The people at the gate were told four people have to go and so they made an announcement say hey $800 for people who want to go on the next flight Nobody volunteered What would you have done at the gate? If you had authority you would say oh, let's make it $2,000 if it's such a big deal And they couldn't because the database would say no no no no can't do that So then the computer in the wisdom said who is the most useless person aboard? and Not people like me right First-class premium whatever worldwide mileage whatever they call that stuff right and of course they know my social media profile Every airline does that now So they figured out if you're worthless based on that stuff and the most worthless guy was this guy Vietnamese doctor I mean worth is in the sense of data So they said let's take those four people they have to go three went he didn't and then when he was resisting the system said Oh, we have resistance. We have we have a weird guy. We have an incident not saying why or anything calling security automatically And they came and they didn't know the context they just beat him Because it was just another sort of half terrorist basically not knowing the context Complete mismanagement now one single person at the gate with authority could have said now This is this is gonna really be bad for us, right? Let's not go down this route instead. We have this right board as a pay as a doctor leave as a patient and So this is algorithmic management You do not want to manage your company just by algorithms You want to manage it with great powerful algorithms and then use human judgment on top and then be allowed to use your human judgment But it's the whole point of it What is the most important thing for people is other people? So yes, that's I mean airline systems are notoriously bad, right? I mean The worst IT in the world and always finding excuses for things not to work, right? So, I mean I could tell long stories, but I will not so the bottom line really is the biggest challenge for us Is not that machines will take over I? Think that is far-fetched Because machines are so far away from understanding how all that stuff works and maybe a hundred years or 200 years We can worry about that is that we become like them. I call that machine thinking If you think that your business is a machine, you are in deep trouble I mean, this is a whole discussion about efficiency and all these things I mean the bottom line is efficiency is not the final destination of a business You wouldn't believe how many companies I work for they say, okay digital transformation Let me figure out how to be more efficient in the company and optimize everything That's all they want to do the CFO loves it higher margin I Would tell you efficiency is for robots That's what machines do That's not the final destination happiness is the final destination Customer happiness is not achieved just with efficiency. Have you heard a customer that says to you know I really love your company because you're so efficient What's the point of that? I mean, why would they love your company because of relationships trust brand purpose meaning, you know Combination of a hundred things Efficiency is just one of those don't be mistaken digital transformation does not mean we're going to be ultra efficient And that's the end of the story, right? When you ultra efficient you become a machine when you're a machine you're worthless As a human Your commodity like like a cellular network, so that's our final destination is martin zealikman the psychologist What matters most for us and this is really important for business What matters most to people? positivity engagement relationships meaning accomplishments called perma and in positive sex psychology And that's really how we build new relationships also in the future. I think that's really what it comes down to what we have to keep in mind So in this future, what are we searching for when we use technology? Are we searching for this? Yeah, we're searching for that. We're searching for intelligence, you know for efficiency We're really searching for this. We're searching for relationships in the bottom line is technology is not what we seek But how we seek now that we have to keep that in mind. What do we see? I mean, of course technology cannot tell us what the purpose of life is But at the same time, I think this is a very big distinction Very important for us to keep that in mind when we think about how we're gonna Talk about the future mark and reason one of the most famous people in silicon valley said this in 2011 software is eating the world And it's so true right everything has become software music films television books cars transportation banking is becoming software and When things become software they get to be ultra ridiculously cheap So when 3d printing comes and we can print engine parts, you think they're gonna cost the same than before unlikely So the bottom line is however Culture still eats technology for breakfast So we have we're living in a dualistic world, right? We have to take care of of this because that is really ultimately what drives revenues and efficiency and possibilities And then we have to realize that everything else we do is actually not that The reason that you have great customers. They love you is because of culture because of relationships So basically if we look at that future, you can safely say that humanity and technology is our future humanity on top of technology and For that we're going to have to spend similar amount of time and investment on humanity then we spend on technology So the next few years you'll you'll see things like a global digital ethics council a non-proliferation agreement on artificial intelligence And we have those things already It's going to be very hard to figure out how not to inhibit technology, but to make it useful And to set the right priorities So in this world, you know just talking briefly about your own future Very important to keep in mind What is our own future as people were quite clearly in the world of pepper and cohorts, you know, that is only the total Peak of this is only five to seven years away Well, it's all going to be done by either cloud or by machines some machines. So this is our the emotional quotient That's our future. That's what machines will never know about Emotional intelligence if you look at the world economic forum priorities for the next couple years in terms of skills critical thinking Well, that's why you're here, right? Creativity and of course emotional intelligence that wasn't even on the chart five years ago in other words ten years ago We were asked to work like robots Because that's what you know robots were bad Ten years from now. We're going to be more human. Otherwise, we won't be there And our futures become more human not less in the world of technology Because this is how humans work Daniel Kahneman the Nobel Prize-winning winning psychologist He said that we don't actually think with the brain we think with the body If you see in the movie her some of you may have seen the movie her You know where you fall in love with the operating system The problem was that she didn't have a body And there was a tiny problem for the guy right in the end because it turns out that she was having a sex with 304,000 3400 other people at the same time because you didn't have a body, you know So it was kind of doable. So more of edge said Whatever is simple for a human is hard for computer and the other way around Let's keep that in mind when we think about how we're going to use technology Let's give the computers this the jobs that are simple for them because we can never beat them We will never ever beat a computer at data, but let's not give them the jobs that are simple for us Which is to decide things you understand so so our technology is forcing us to merge our business models into this As I was saying in the beginning this is the hotspot in business to take a holistic view Which means sometimes you it will cost more Because it is you know people are expensive if you just go for the lowest common denominator You will not have a single person working for you. So this is ultimately where we go and taking a holistic view to include the externalities This is a big deal in environmental control In our business model to include what is outside of our current affairs and create a holistic model And it requires leadership, you know right now we're at 90% heaven Most of technology is so positive that we're really excited about this We don't want to be in 10 years at 5050 and how would that happen? Well, we have to collaborate to figure out how we create leadership there And how to keep human things human so Steve Jobs I end with this And he said something very important. He said this I think 15 years ago technology alone is not enough It's technology married with liberal arts married with the humanities that makes the results. I Think this is crucial for us to remember This is table stakes. This is not something we can say. Let's let's have dinner first and then we'll talk about ethics, right? As Bartol Brecht once said I take what Steve Jobs said one of his speeches I'm gonna convert a little bit when he said stay hungry stay foolish and I'm gonna say stay hungry stay human And I think that would be a very good summary of our conversations and finally You know in this old start-track scenario, we have technology and we have humanity So my wish for you is to embrace technology, but don't become it. I Think that is where the future can go. Thanks for your time and live long and prosper