Explain the different WAVE of AI with the help of diagram
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Answer:
1. The First Wave: Internet AI. In this first stage of The Four Waves of AI, the world is mostly dealing with recommendation engines. These are broadly defined as algorithmic systems that learn from masses of user data to curate online content personalized to each individual. One of the more interesting companies mentioned is Toutiao. The business started as a copycat of Buzzfeed and boasts almost 120 million daily active users through a viral content and recommendation engine AI. No humans. The business is worth $20B which is 10x the value of Buzzfeed. Currently, Kai-Fu Lee estimates that Chinese and American companies stand head-to-head when it comes to deployment of Internet AI. But given China’s data advantage, he predicts that Chinese tech giants will have a slight lead (60-40) over their U.S. counterparts in the next five years.
2. The Second Wave: Business AI. In this second stage of The Four Waves of AI, business AI uses the data that traditional companies have already labeled historically and creates enormous leverage for a modern corporation. Think banks issuing loans via AI, hospitals archiving diagnoses via AI, imaging data on your scans being read by AI, courts noting conviction history, recidivism, and flight via AI. The book profiles Smart Finance, a Chinese financial services company that built an AI-powered app for microfinance that depends almost exclusively on its algorithms to make millions of micro-loans. China’s mobile payment spending outnumbers that of Americans’ by a ratio of 50 to 1 so it is no surprise that this is another large business. In business AI the U.S. outperforms China by a great margin but Lee predicts that in the next five years China will make up some ground (30-70) with the U.S. still having a commanding lead.
3. The Third Wave: Perception AI. In this wave, AI will move into the sensor ecosystem, merging the digital world with our physical environments. As sensors and smart devices proliferate through our homes and cities, we are on the verge of entering a trillion-sensor economy. Imagine walking into a grocery store, scanning your face to pull up your most common purchases, and then picking up a virtual assistant shopping cart. Having pre-loaded your data, the cart adjusts your usual grocery list with voice input, reminds you to get your spouse’s favorite wine for an upcoming anniversary, and guides you through a personalized store route. One KFC restaurant in China has already teamed up with Alipay (Alibaba’s mobile payments platform) to pioneer a “pay-with-your-face” feature which is incredible. Given China’s hardware advantage, the country currently has a 60-40 edge over its American tech counterparts and that will only increase in the coming years to 80-20.
4. The Fourth Wave: Autonomous AI. Building off of the first three waves, the fourth wave will integrate everything and give machines the ability to sense and respond to the world around them, enabling AI to move and act productively. Think swarms of drones that can selectively spray and harvest entire farms with computer vision and remarkable dexterity, heat-resistant drones that can put out forest fires 100x more efficiently than a smokejumper, or Level 5 autonomous vehicles that navigate smart roads and traffic systems all on their own. We’ve heard about this future, but it will take time and effort to become a reality. Kai-Fu Lee currently puts America in a commanding lead (90-10) in autonomous AI but Chinese government efforts are quickly ramping up the competition where this will be a 50-50 split in the next five years.
