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The Hype of 2015 
© Immo Salo
What will we call them? 
● Smart machines, Intelligent machines, 
Brilliant machines, Clever machines or what 
www.smartmachines.fi ?
Google Trends on Sep 2014
Smart Machines is winning? 
Placing the bets, the usual suspects: 
● Hype Cycle of Smart Machines released 
Gartner, Jul 2014 
● McKinsey writes about Smart Machines 
McKinsey Quarterly, Sep 2014 
● Economist writes about Smart Machines 
“The Age of Smart Machines”, May 2014 
www.smartmachines.fi
New technologies are enablers 
● The idea of Smart 
Machines is not new, 
but now the time is 
right 
→ Perfect storm 
www.smartmachines.fi
Innovations are the key 
● Most important innovations will be 
combinatory innovations* 
● Creative destruction will face those not 
willing or able to take action 
www.smartmachines.fi * The Second Machine Age, Brynjolfsson & McAfee
Phases of competition 
1. Wondering 
○ These machines are amazing! 
2. Innovations, phase 1 
○ Changing the way business is done within existing industries 
(transport, retail sales, warehouses, production) 
3. Innovations, phase 2 
○ Creating new industries 
4. The Age of Ecosystems 
○ High-technologization of industries, ecosystem-level competition 
www.smartmachines.fi
Timing and technology 
● Smart Machines is built on top of existing 
technologies and innovations 
○ Cloud computing 
○ Big data 
○ Internet of Everything 
○ Robotics 
www.smartmachines.fi
Categories 
Cloud computing 
● IaaS 
● PaaS 
● SaaS 
XaaS 
Big Data 
● Volume 
● Variety 
● Velocity 
multiple other V’s 
Internet of Everything 
● People 
● Things 
● Places 
● Information 
Robotics 
● Industrial 
● Service 
● Consumer 
Smart Machines is a combination of existing technologies and concepts 
www.smartmachines.fi
www.smartmachines.fi
Smart machines - The Hype of 2015
The Role of Cloud Computing 
● Cloud Computing is an enabler of Smart Machines 
“Imagine a robot that finds an object that it's never seen or used 
before—say, a plastic cup. The robot could simply send an 
image of the cup to the cloud and receive back the object’s 
name, a 3-D model, and instructions on how to use it” 
J. Kuffner, Google 
www.smartmachines.fi IEEE: Jan 2011, http://spectrum.ieee.org/automaton/robotics/robotics-software/cloud-robotics
www.smartmachines.fi
Smart machines - The Hype of 2015
The Role of Big Data 
● Analytical capabilities provided by cloud services are 
evolving fast 
“Dremel can scan 35 billion rows without an index in tens of 
seconds. Dremel, the cloud-powered massively parallel query 
service, shares Google’s infrastructure, so it can parallelize each 
query and run it on tens of thousands of servers simultaneously. 
You can see the economies of scale inherent in Dremel. 
An Inside Look at Google BigQuery 
www.smartmachines.fi https://cloud.google.com/files/BigQueryTechnicalWP.pdf
The Role of Big Data 
● Advaced Analytics helps to model and predict the 
future 
“Machine learning–mining historical data with computer systems 
to predict future trends or behavior–touches more and more lives 
every day. Search engines, online recommendations, ad 
targeting, virtual assistants, demand forecasting, fraud detection, 
spam filters–machine learning powers all these modern services. 
But these uses barely scratch the surface of what's possible. 
Microsoft Azure Machine Learning 
www.smartmachines.fi http://azure.microsoft.com/en-us/services/machine-learning/
Smart machines - The Hype of 2015
Sales of Industrial Robots 
Record high sales of industrial 
robots in 2013 
Worldrobotics.org: http://www.worldrobotics.org/uploads/tx_zeifr/June_04__2014_PI_IFR_World_Robot_Market.pdf 
www.smartmachines.fi
Drones - soon flying everywhere 
No piloting skills required 
The eBee takes off, flies and lands 
autonomously. 
The artificial intelligence incorporated in the 
senseFly autopilot continuously analyzes data 
from the Inertial Measurement Unit and the 
onboard GPS and takes care of all aspects of 
the flight mission. 
https://www.sensefly.com/drones/ebee.html 
www.smartmachines.fi
Consumer robotics 
Jibo 
kickstarter project, shipping 2015 
What is Jibo? It’s a little pod with a motorized 
swivel, equipped with cameras, microphones 
and a display. It recognizes faces and voices, 
and can act as a personal assistant by setting 
reminders, delivering messages and offering to 
take group photos. It also serves as a 
telepresence robot for video chat. 
Time.com 
https://www.indiegogo.com/projects/jibo-the-world-s-first-family-robot 
www.smartmachines.fi
IBM SyNAPSE chip 
● Computer chip imitating the 
brain (introduced in Aug 2014) 
The architecture can solve a wide class of problems 
from vision, audition, and multi-sensory fusion, and has 
the potential to revolutionize the computer industry by 
integrating brain-like capability into devices where 
computation is constrained by power and speed. 
IBM: http://www.research.ibm.com/cognitive-computing/neurosynaptic-chips.shtml 
www.smartmachines.fi
IDC, General Electric
Intel Edison 
● Remember Raspberry Pi? 
● Intel Edison takes tiny 
computers to the next level 
● It can be the brains of almost 
any device (width is only 35 mm) 
The Intel® Edison development platform is the first 
in a series of low-cost, product-ready, general 
purpose compute platforms that help lower the 
barriers to entry for entrepreneurs in the Internet of 
Things (IoT). 
Intel: http://www.intel.com/content/www/us/en/do-it-yourself/edison.html 
www.smartmachines.fi 
3,5 cm
Spark 
● Spark is a Wi-Fi development 
kit for connecting devices aka 
“things” to internet 
The Spark Core is our tiny Wi-Fi development kit 
that helps you build a connected product in hours, 
not weeks. The Spark Core is hooked to the Cloud 
out of the box, and the entire design is open 
source. 
Spark: https://www.spark.io/ 
www.smartmachines.fi
Gartner Oct 2013
Categories of Smart Machines 
● Movers 
○ Example: Google “Self-Driving car” 
● Doers 
○ Example: Rething Robotics “Baxter” 
● Sages 
○ Example: IBM “Watson” 
www.smartmachines.fi IBM: Oct 2013, http://www.ibmbigdatahub.com/blog/rise-smart-machines-nothing-fear-now-austin
Movers 
Google Driverless Car 
www.smartmachines.fi Google Self-Driving Car: http://en.wikipedia.org/wiki/Google_driverless_car
Doers 
Baxter 
www.smartmachines.fi Rething robotics: http://www.rethinkrobotics.com/baxter/
Sages 
IBM Watson beating top human players in Jeopardy 2011 
www.smartmachines.fi IBM: http://www.ibm.com/smarterplanet/us/en/ibmwatson/what-is-watson.html
Google Brain 
● Artificial Intelligence (AI) is gaining a lot of 
attention 
Building High-level Features 
Using Large Scale Unsupervised Learning 
Our high-level detectors also outperform standard baselines in terms 
of recognition rates, achieving 74.8% and 76.7% on cat and human 
body respectively. In comparison, best linear filters (sampled from 
the training set) only achieve 67.2% and 68.1% respectively. 
Stanford & Google -paper Jul 2012 
Cat face drawn by computer base on 
looking at cat images from Youtube. 
www.smartmachines.fi http://arxiv.org/pdf/1112.6209v5.pdf
Wearables 
“Clothing and accessories incorporating computer and advanced 
electronic technologies” 
Wikipedia, Sep 2014 
Google Glass 
www.smartmachines.fi 
Apple Watch
Wearables, categories 
1. Lifestyle 
○ enhancing and simplifying everyday tasks and activities 
2. Entertainment 
○ providing enjoyment and entertainment to the user 
3. Health & Fitness 
○ giving insight to the user by showing personal body data 
Global market of wearable to reach £30B by 2018 
www.smartmachines.fi http://wearableworldnews.com/2014/05/06/wearable-world-taxonomy
Role of Smart Machines 
● Assist people 
● Advise people 
● Observe and help people 
● Extend people 
... 
● Replace people? 
www.smartmachines.fi IBM: Oct 2013, http://www.ibmbigdatahub.com/blog/rise-smart-machines-nothing-fear-now-austin
Smart machines - The Hype of 2015
The Future of Employment 
“According to our estimate, 47 percent of total US 
employment is in the high risk category, 
meaning that associated occupations are 
potentially automatable over some unspecified 
number of years, perhaps a decade or two“ 
The future of employment: how suspectible are jobs to computerisation? 
Frey & Osborne, Oxford Martin School 
Oxford Martin School: Sep 2013, http://www.oxfordmartin.ox.ac.uk/downloads/academic/The_Future_of_Employment.pdf 
www.smartmachines.fi
What next? 
● Innovations 
● Investments 
● Creative destruction 
● New skills needed 
www.smartmachines.fi twitter.com/immon

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Smart machines - The Hype of 2015

  • 1. The Hype of 2015 © Immo Salo
  • 2. What will we call them? ● Smart machines, Intelligent machines, Brilliant machines, Clever machines or what www.smartmachines.fi ?
  • 3. Google Trends on Sep 2014
  • 4. Smart Machines is winning? Placing the bets, the usual suspects: ● Hype Cycle of Smart Machines released Gartner, Jul 2014 ● McKinsey writes about Smart Machines McKinsey Quarterly, Sep 2014 ● Economist writes about Smart Machines “The Age of Smart Machines”, May 2014 www.smartmachines.fi
  • 5. New technologies are enablers ● The idea of Smart Machines is not new, but now the time is right → Perfect storm www.smartmachines.fi
  • 6. Innovations are the key ● Most important innovations will be combinatory innovations* ● Creative destruction will face those not willing or able to take action www.smartmachines.fi * The Second Machine Age, Brynjolfsson & McAfee
  • 7. Phases of competition 1. Wondering ○ These machines are amazing! 2. Innovations, phase 1 ○ Changing the way business is done within existing industries (transport, retail sales, warehouses, production) 3. Innovations, phase 2 ○ Creating new industries 4. The Age of Ecosystems ○ High-technologization of industries, ecosystem-level competition www.smartmachines.fi
  • 8. Timing and technology ● Smart Machines is built on top of existing technologies and innovations ○ Cloud computing ○ Big data ○ Internet of Everything ○ Robotics www.smartmachines.fi
  • 9. Categories Cloud computing ● IaaS ● PaaS ● SaaS XaaS Big Data ● Volume ● Variety ● Velocity multiple other V’s Internet of Everything ● People ● Things ● Places ● Information Robotics ● Industrial ● Service ● Consumer Smart Machines is a combination of existing technologies and concepts www.smartmachines.fi
  • 12. The Role of Cloud Computing ● Cloud Computing is an enabler of Smart Machines “Imagine a robot that finds an object that it's never seen or used before—say, a plastic cup. The robot could simply send an image of the cup to the cloud and receive back the object’s name, a 3-D model, and instructions on how to use it” J. Kuffner, Google www.smartmachines.fi IEEE: Jan 2011, http://spectrum.ieee.org/automaton/robotics/robotics-software/cloud-robotics
  • 15. The Role of Big Data ● Analytical capabilities provided by cloud services are evolving fast “Dremel can scan 35 billion rows without an index in tens of seconds. Dremel, the cloud-powered massively parallel query service, shares Google’s infrastructure, so it can parallelize each query and run it on tens of thousands of servers simultaneously. You can see the economies of scale inherent in Dremel. An Inside Look at Google BigQuery www.smartmachines.fi https://cloud.google.com/files/BigQueryTechnicalWP.pdf
  • 16. The Role of Big Data ● Advaced Analytics helps to model and predict the future “Machine learning–mining historical data with computer systems to predict future trends or behavior–touches more and more lives every day. Search engines, online recommendations, ad targeting, virtual assistants, demand forecasting, fraud detection, spam filters–machine learning powers all these modern services. But these uses barely scratch the surface of what's possible. Microsoft Azure Machine Learning www.smartmachines.fi http://azure.microsoft.com/en-us/services/machine-learning/
  • 18. Sales of Industrial Robots Record high sales of industrial robots in 2013 Worldrobotics.org: http://www.worldrobotics.org/uploads/tx_zeifr/June_04__2014_PI_IFR_World_Robot_Market.pdf www.smartmachines.fi
  • 19. Drones - soon flying everywhere No piloting skills required The eBee takes off, flies and lands autonomously. The artificial intelligence incorporated in the senseFly autopilot continuously analyzes data from the Inertial Measurement Unit and the onboard GPS and takes care of all aspects of the flight mission. https://www.sensefly.com/drones/ebee.html www.smartmachines.fi
  • 20. Consumer robotics Jibo kickstarter project, shipping 2015 What is Jibo? It’s a little pod with a motorized swivel, equipped with cameras, microphones and a display. It recognizes faces and voices, and can act as a personal assistant by setting reminders, delivering messages and offering to take group photos. It also serves as a telepresence robot for video chat. Time.com https://www.indiegogo.com/projects/jibo-the-world-s-first-family-robot www.smartmachines.fi
  • 21. IBM SyNAPSE chip ● Computer chip imitating the brain (introduced in Aug 2014) The architecture can solve a wide class of problems from vision, audition, and multi-sensory fusion, and has the potential to revolutionize the computer industry by integrating brain-like capability into devices where computation is constrained by power and speed. IBM: http://www.research.ibm.com/cognitive-computing/neurosynaptic-chips.shtml www.smartmachines.fi
  • 23. Intel Edison ● Remember Raspberry Pi? ● Intel Edison takes tiny computers to the next level ● It can be the brains of almost any device (width is only 35 mm) The Intel® Edison development platform is the first in a series of low-cost, product-ready, general purpose compute platforms that help lower the barriers to entry for entrepreneurs in the Internet of Things (IoT). Intel: http://www.intel.com/content/www/us/en/do-it-yourself/edison.html www.smartmachines.fi 3,5 cm
  • 24. Spark ● Spark is a Wi-Fi development kit for connecting devices aka “things” to internet The Spark Core is our tiny Wi-Fi development kit that helps you build a connected product in hours, not weeks. The Spark Core is hooked to the Cloud out of the box, and the entire design is open source. Spark: https://www.spark.io/ www.smartmachines.fi
  • 26. Categories of Smart Machines ● Movers ○ Example: Google “Self-Driving car” ● Doers ○ Example: Rething Robotics “Baxter” ● Sages ○ Example: IBM “Watson” www.smartmachines.fi IBM: Oct 2013, http://www.ibmbigdatahub.com/blog/rise-smart-machines-nothing-fear-now-austin
  • 27. Movers Google Driverless Car www.smartmachines.fi Google Self-Driving Car: http://en.wikipedia.org/wiki/Google_driverless_car
  • 28. Doers Baxter www.smartmachines.fi Rething robotics: http://www.rethinkrobotics.com/baxter/
  • 29. Sages IBM Watson beating top human players in Jeopardy 2011 www.smartmachines.fi IBM: http://www.ibm.com/smarterplanet/us/en/ibmwatson/what-is-watson.html
  • 30. Google Brain ● Artificial Intelligence (AI) is gaining a lot of attention Building High-level Features Using Large Scale Unsupervised Learning Our high-level detectors also outperform standard baselines in terms of recognition rates, achieving 74.8% and 76.7% on cat and human body respectively. In comparison, best linear filters (sampled from the training set) only achieve 67.2% and 68.1% respectively. Stanford & Google -paper Jul 2012 Cat face drawn by computer base on looking at cat images from Youtube. www.smartmachines.fi http://arxiv.org/pdf/1112.6209v5.pdf
  • 31. Wearables “Clothing and accessories incorporating computer and advanced electronic technologies” Wikipedia, Sep 2014 Google Glass www.smartmachines.fi Apple Watch
  • 32. Wearables, categories 1. Lifestyle ○ enhancing and simplifying everyday tasks and activities 2. Entertainment ○ providing enjoyment and entertainment to the user 3. Health & Fitness ○ giving insight to the user by showing personal body data Global market of wearable to reach £30B by 2018 www.smartmachines.fi http://wearableworldnews.com/2014/05/06/wearable-world-taxonomy
  • 33. Role of Smart Machines ● Assist people ● Advise people ● Observe and help people ● Extend people ... ● Replace people? www.smartmachines.fi IBM: Oct 2013, http://www.ibmbigdatahub.com/blog/rise-smart-machines-nothing-fear-now-austin
  • 35. The Future of Employment “According to our estimate, 47 percent of total US employment is in the high risk category, meaning that associated occupations are potentially automatable over some unspecified number of years, perhaps a decade or two“ The future of employment: how suspectible are jobs to computerisation? Frey & Osborne, Oxford Martin School Oxford Martin School: Sep 2013, http://www.oxfordmartin.ox.ac.uk/downloads/academic/The_Future_of_Employment.pdf www.smartmachines.fi
  • 36. What next? ● Innovations ● Investments ● Creative destruction ● New skills needed www.smartmachines.fi twitter.com/immon