the golden age of ai

The Golden Age of AIOpportunities and Challenges

Chris EvdemonPartner

Sinovation Ventures

November 2016

10 years from now, Artificial Intelligence will replace 90% of the world’s ...

• Can you play a million Chess games a day, while learning like AlphaGo？

• Absorb the cumulative daily experience of Tesla from a million vehicles?• Instantly compare all of the world’s airport cameras against all wanted

criminals’ faces?

Translation Reporters Assistants Security Taxis

Sales Services Traders Accounting Maids

Artificial Intelligence is not just an "imitation of the human", but it usually goes "far beyond human” abilities …

AI will be the greatest value creation engine

70%

75%

80%

85%

90%

95%

100%

2011 2012 2013 2014 2015 2016

Human eyeDeep learning

Medical Sciences Automated and auxiliary diagnosis,

personalized diagnosis, gene sequencing.Education

Foreign languages, personalized adaptive learning.

Banking and InsuranceTargeted marketing, loan approval,

credit card fraud prevention

RecognitionVoice, face, video content applications

for security, customer service, etc.

Investments AI + high frequency trading, prediction

engines, etc.

Internet Analytics Purchase conversion, recommendation,

pricing, targeting, SNS marketing.

Business Intelligence and Process Automation

Deep Learning revolution

Deep LearningLearning frommassive data

Reinforcement LearningAuto-learning

Transfer LearningSolve sparse-data problem

Today Future

Beyond Deep Learning

Why AI works now?

5Condition

s of AI

Clear Boundarie

s

Auto-Collected Feedback

Loop

Computing

Resources

Big Data(ideally closed-loop)

Top Data Scientists

Prof. Yang Qiang, HKUST

1 2

3 4

Own end-to-end data

Hire best scientists

Buy hardware optimized for AI

$100,000,000 $400,000,000

Train young people in “AI alchemy”

The right AI approach

1 2

3 4

Assist and not replace people

“Trick”users to provide data

“Error-tolerant”user interface

Constrained application scenarios

“ 无人驾驶”

Navigating for the short-term

L1:(AI as input to

humans)

VisionVoice

LanguageGesture

Industrial and

Commercial

Robots

HomeRobots

Big Data Perception Robotics Autonomous

Driving

Stage3 – 5

yr5 – 10

yr10 yr+

Internet Analytic

s

All-terrain fully autonomous

driving

L2-3:(AI assisting

human driver)AR/VR and

new natural interface

Cross-domain and general natural language

understanding

L4(Human

assisting AI)

InvestmentsInsuranceBanking

HealthcareEducation and

any industry with big data

Artificial intelligence + computing architecture + algorithm framework + sensing platform

Business Intelligenc

e and process

automation

Mass produced sensors

Understanding

Sensors: infrared,

depth camera,

gyroscope,Lidar, etc.

AI roadmap

Typical Duration of an Early Stage VC

Fund

PC era Internet era Mobile Internet era AI era

YOU

Bill GatesBorn in 1955

Steve JobsBorn in 1955

Jeff BezosBorn in 1964

Jerry YangBorn in 1968

Kevin Systrom

Born in 1983Evan Spiegel Born in 1990

The AI era is YOURS!

Internet era App era O2O era AI era

Returnees

Product manager

On-the-ground Sales

+Back-end

Technologist

AI Scientists+

Enterprise Sales Leader

YOU

The AI era needs a different type of founders

Research

Start-Up Local start-up Local start-up Chinese start-up (U.S. team) U.S. start-up (China team) Own start-up Own start-up

YOUR CAREER CHOICES

Industry Local company Local company Chinese company (U.S. ops) U.S. company (China ops)

Increasing risk and return

Overflow of capital.

Staging deliverables.

Limited talent pool.

Big corporates’ muscle.

One-dimensional team.

Building a business.

Building for the long-term.

Challenges for AI start-up projects

$7/hour$15/hour

From creating additional revenue for millions of people around the world to … eliminating it!

Partial vs. complete substitution of human labour

Social implications of AI

The U.S. – China relationship: “it’s complicated” …

Attract top AI talent

Collecting industry big

data

Build up a platform and

clusters

Top engineers

Collaborating with industry

leaders

Researching the best AI

opportunities

AI Institute - Incubation

Sinovation Ventures AI strategy

Series A + B

Start-UpLocal company Local companyChinese company U.S. companyOwn start-up Own start-up

300+ 创业公司天使投资人

政府机构

国内外企业金融网

络第三方服务机构

行业专家

产业协会

大学 / 科研机构

导师13,000+ 创业者孵化器联盟

投资机构

Team, offices, and partnerships with leading corporations in the three largest economic regions in China.

A complete cross-border business services ecosystem

Presence, resources and investment activity in Silicon Valley.

ActionDecision

Perception

Sinovation Ventures AI portfolio

Join the 工场 family!

Thank you.chris@sinovationventures.c

omricky@sinovationventures.c

om@SinovationVC