ARTIFICIAL INTELLIGENCE: Self-driving cars and self-speaking news anchors inch us closer to dystopia.

Financial services regulators have been so hard on crypto currencies, roboadvisors, digital lenders and payments companies. It's as if that money is a life or death situation! But getting a permit to drive a robot car on a public road without a human being holding the wheel -- not a problem in California. Waymo, which is the Google car spinout, has been given the green light to put 40 autonomous cars on the road. This is already happening in Arizona, with 400 users that can get into a robot car via an app around Phoenix.

3dc3f300-8696-4d51-ae39-a4581f08f17d[1].jpg

We don't want to be alarmist, of course. Statistically, these machines are likely much better than humans at driving -- they are just more likely to make mistakes that humans would think are preventable. The same process took place in regards to machine vision, with early prototypes making classification mistakes between cats and dogs; now, such algorithms can tell apart the difference between hundreds of breeds. So we hope to see similar progress as driving and visual data is incorporated into autonomous car systems. We'd be remiss not to mention our white paper on the topic, which models out how the insurance industry may lose its lunch when cars don't crash. On the other hand, we note that the DMV required a $5 million bond to put a self-driving car on the road, so the risk is still wildly unknown.

fd5430d6-f02d-4862-8d0e-321cf43a30af[1].png

In a more sinister move, China's state-owned news agency recently launched "composite anchors", which is a machine vision version of a news anchor that can be manipulated with text. Here's how it works. You shoot dozens of hours of video of a person speaking, and then spin up neural networks that can (1) manufacture sounds similar to the target's speech and (2) manufacture video resembling the human making that speech. Presto -- just type in whatever into a command box, and your generated anchor will say it, in any language you would like. Given the recent video editing experiments that the White House supported in relation to denouncing a journalist, we are acutely terrified of how this can impact the attention economy. Not to mention the implications for selling a human likeness for endless manipulation. 

ad628a3f-c9da-4f6b-8136-24ca748f5c44[1].png

Source: SF Chronical (Waymo), South China Morning Post (AI Anchor)