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The Astounding Resurrection of AI A Primer On Artificial Intelligence March 27, 2015 Matt Turck, FirstMark Capital

The Astonishing Resurrection of AI (A Primer on Artificial Intelligence)

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Page 1: The Astonishing Resurrection of AI (A Primer on Artificial Intelligence)

The Astounding Resurrection of AIA Primer On Artificial Intelligence

March 27, 2015

Matt Turck, FirstMarkCapital

Page 2: The Astonishing Resurrection of AI (A Primer on Artificial Intelligence)

© 2015 FirstMark Capital, All rights reserved. Proprietary and Confidential.

About FirstMark

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FirstMark

Early-stage VC (Seed & Series A)

Established in 2008

$800m under management

Consumer and Enterprise: Pinterest,

Shopify, Knewton, Lumosity, Tapad,

NewsCred, Riot Games

100+ events per year

www.firstmarkcap.com

Matt Turck

Partner

www.mattturck.com

www.twitter.com/mattturck

Last updated 3/30/15

Monthly Events

Data Driven NYC

8,000 members

http://datadrivennyc.com/

Hardwired NYC

3,200 members

http://hardwirednyc.com/

Design Driven NYC

2,250 members

http://designdrivennyc.com/

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© 2015 FirstMark Capital, All rights reserved. Proprietary and Confidential. 3

AI in Hollywood

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© 2015 FirstMark Capital, All rights reserved. Proprietary and Confidential.

AI in the 60’s: “It’s going to be huge”

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“Machines will be capable, within twenty years, of doing any work a man can

do.”

- H. A. Simon, The Shape of Automation for Men and Management,

1965

“In three to eight years we will have a machine with the general intelligence of

an average human being.”

- Marvin Minsky, Life Magazine, 1970

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© 2015 FirstMark Capital, All rights reserved. Proprietary and Confidential.

Broken Promises

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© 2015 FirstMark Capital, All rights reserved. Proprietary and Confidential.

The AI Spring

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© 2015 FirstMark Capital, All rights reserved. Proprietary and Confidential. 7

Money is Pouring In

After Google’s acquisition of

DeepMind ($400M-$650M),

AI startups see a 302%

funding jump in 2014.

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© 2015 FirstMark Capital, All rights reserved. Proprietary and Confidential.

Rapidly Accelerating Startup Activity

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Page 9: The Astonishing Resurrection of AI (A Primer on Artificial Intelligence)

© 2015 FirstMark Capital, All rights reserved. Proprietary and Confidential. 9

The New Rockstars

Yann Lecun Geoff Hinton Andrew Ng

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© 2015 FirstMark Capital, All rights reserved. Proprietary and Confidential.

What’s Different This Time?

“AI [has] now embraced a statistical, brute force approach based on analyzing

vast amounts of information with powerful computers and sophisticated

algorithms.”

- Irving Wladawksy-Berer, Wall Street Journal, Nov 21, 2014

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Cheap Parallel

Computing

Massive amounts

of data

Better Algorithms

, Deep Learning

A

I

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© 2015 FirstMark Capital, All rights reserved. Proprietary and Confidential.

Horizontal AI?

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A

I

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© 2015 FirstMark Capital, All rights reserved. Proprietary and Confidential.

Or Vertical AI?

“Most of the commercial work completed by AI will be done by special-purpose,

narrowly focused software brains that can, for example, translate any language

into any other language, but do little else. Drive a car, but not converse. Or

recall every pixel of every video on YouTube but not anticipate your work

routines. In the next 10 years, 99 percent of the artificial intelligence that

you will interact with, directly or indirectly, will be nerdily autistic,

supersmart specialists.”

– Kevin Kelly, Wired, Oct 27, 2014

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Page 13: The Astonishing Resurrection of AI (A Primer on Artificial Intelligence)

© 2015 FirstMark Capital, All rights reserved. Proprietary and Confidential.

Automating Mind Numbing Tasks

“People in occupations that span the skill spectrum devote large amounts of time to ridiculous little tasks that are trivially easy for people but nonetheless time consuming. Think paralegals or lawyers sifting through boxes full of documents or researchers fixing all the little irregularities in a dataset. Maybe the end of that sort of thing, and the beginning of a new round of faster productivity growth, is in sight.”

“Signs of things to come”, The Economist, July 23rd, 2014

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© 2015 FirstMark Capital, All rights reserved. Proprietary and Confidential. 14

x.ai

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© 2015 FirstMark Capital, All rights reserved. Proprietary and Confidential.

How x.ai Works

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© 2015 FirstMark Capital, All rights reserved. Proprietary and Confidential.

x.ai Making Friends

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© 2015 FirstMark Capital, All rights reserved. Proprietary and Confidential.

The Perils of AI

“If we build these devices to

take care of everything for us,

eventually they'll think faster

than us and they'll get rid of

the slow humans to run

companies more efficiently.”

– Steve Wozniak

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“With artificial intelligence we

are summoning the demon. In

all those stories where there’s

the guy with the pentagram and

the holy water, it’s like yeah

he’s sure he can control the

demon. Didn't work out.”

– Elon Musk

“First the machines will do a lot

of jobs for us and not be super

intelligent. That should be

positive if we manage it well. A

few decades after that though

the intelligence is strong

enough to be a concern.”

– Bill Gates

Page 18: The Astonishing Resurrection of AI (A Primer on Artificial Intelligence)

© 2015 FirstMark Capital, All rights reserved. Proprietary and Confidential.

Living with AI

“At x.ai, we see users responding to Amy as if she is indeed

human. Phrases like ‘You’re amazing’, ‘thank you so much’,

‘would you be so kind’ and other notions of kindness arrive as

replies.”

“Intellectually, we know that a robot doesn’t need to be shown

such level of gratitude but we do. Humans treating an AI like

another human is exactly what we aim to achieve. We love

it!”

– x.ai

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