Welcome to the exponential age!
In 1998, Kodak had 170,000 employees and sold 85% of all photo paper worldwide.
Within just a few years, their business model disappeared and they went bankrupt.
What happened to Kodak will happen in a lot of industries in the next 10 years – and most people don’t see it coming. Did you think in 1998 that 3 years later you would never take pictures on paper film again?
Yet, digital cameras were invented in 1975. The first ones only had 10,000 pixels, but followed Moore’s Law. So, as with all exponential technologies, they were a disappointment for a while, before they became superior and mainstream in only a few short years. This will now happen with Artificial Intelligence, health, autonomous and electric cars, education, 3D printing, agriculture and jobs. Welcome to the 4th Industrial Revolution.
Software will disrupt most traditional industries in the next 5-10 years.
Uber is just a software tool, they don’t own any cars, and are now the biggest taxi company in the world. Airbnb is now the biggest hotel company in the world, although they don’t own any properties.
Artificial Intelligence: Computers become exponentially better in understanding the world. This year, a computer beat the best Go player in the world, 10 years earlier than expected. In the US, young lawyers already don’t get jobs. Because of IBM Watson, you can get legal advice (so far for more or less basic stuff) within seconds, with 90% accuracy compared with 70% accuracy when done by humans. So, if you study law, stop immediately. There will be 90% less lawyers in the future, only specialists will remain.
Watson already helps nurses diagnosing cancer, 4 time more accurate than human nurses. Facebook now has a pattern recognition software that can recognize faces better than humans. In 2030, computers will become more intelligent than humans.
Autonomous cars: In 2018 the first self-driving cars will appear for the public. Around 2020, the complete industry will start to be disrupted. You won’t want to own a car anymore. You will call a car with your phone, it will show up at your location and drive you to your destination. You will not need to park it, you only pay for the driven distance and you can be productive while driving. Our kids will never get a driver’s license and will never own a car. It will change the cities, because we will need 90-95% less cars. We can transform former parking space into parks. 1.2 million people die each year in car accidents worldwide. We now have one accident every 100,000 km; with autonomous driving that will drop to one accident in 10 million km. That will save a million lives each year.
Most car companies might become bankrupt. Traditional car companies try the evolutionary approach and just build a better car, while tech companies (Tesla, Apple, Google) will do the revolutionary approach and build a computer on wheels. I spoke to a lot of engineers from Volkswagen and Audi; they are completely terrified of Tesla.
Insurance companies will have massive trouble because without accidents, the insurance will become 100x cheaper. Their car insurance business model will disappear.
Real estate will change. Because if you can work while you commute, people will move further away to live in more beautiful areas.
Electric cars will become more mainstream after 2020. Cities will be less noisy because all cars will be electric. Electricity will become incredibly cheap and clean: Solar production has been on an exponential curve for 30 years, but you can only now see the impact. Last year, more solar energy was installed worldwide than fossil. The price for solar will drop so much that all coal companies will be out of business by 2025.
With cheap electricity comes cheap and abundant water. Desalination now only needs 2kWh per cubic meter. We don’t have scarce water in most places, we only have scarce drinking water. Imagine what will be possible if we can have as much clean water as we want, for very low cost.
Health: The Tricorder X price will be announced this year. There will be companies who will build a medical device (called the “Tricorder” from Star Trek) that works with your phone, which takes your retina scan, your blood sample and your breath into it. It then analyses 54 bio-markers that will identify nearly any disease. It will be cheap, so in a few years everyone on this planet will have access to world-class, inexpensive medical care.
3-D printing: The price of the cheapest 3-D printer came down from $18,000 to $400 within 10 years. In the same time, they became 100 times faster. All major shoe companies have begun 3-D printing shoes. Spare airplane parts are already 3-D printed in remote airports. The space station now has a printer that eliminates the need for the large amount of spare parts they used to have in the past.
At the end of this year, new smartphones will have 3-D scanning possibilities. You can then 3-D scan your feet and print your perfect shoe at home. In China, they have already 3-D printed a complete 6-story office building. By 2027, 10% of everything that’s being produced will be 3-D printed.
Business opportunities: If you think of a niche you want to go in, ask yourself: “in the future, do you think we will have that?” and if the answer is yes, how can you make that happen sooner? If it doesn’t work with your phone, forget the idea. And any idea designed for success in the 20th century is doomed to failure in the 21st century.
Work: 70-80% of jobs will disappear in the next 20 years. There will be a lot of new jobs, but it is not clear if there will be enough new jobs in such a small time.
Agriculture: There will be a $100 agricultural robot in the future. Farmers in 3rd world countries can then become managers of their fields instead of working all days in their fields. Aeroponics will need much less water. Petri-dish-produced veal is now available and will be cheaper than cow-produced veal in 2018. Right now, 30% of all agricultural surfaces are used for cattle. Imagine if we don’t need that space anymore. There are several startups who will bring insect protein to the market shortly. It contains more protein than meat. It will be labeled as “alternative protein source” (because most people still reject the idea of eating insects).
There is an app called “moodies” which can already tell in which mood you are. By 2020 there will be apps that can tell by your facial expressions if you are lying. Imagine a political debate where it’s being displayed when they are telling the truth and when not.
Bitcoin will become mainstream this year and might even become the default reserve currency.
Longevity: Right now, the average life span increases by 3 months per year. Four years ago, the life span was 79 years, now it’s 80 years. The increase itself is increasing and by 2036, there will be more than one year increase per year. So, we all might live for a long, long time, probably way more than 100.
The world has always had an overpopulation problem within recent history, and this will make it worse. Technology may grow by leaps and bounds, but human enculturation will not. We will have the same political greed for power and control, others kicking back, and wars will continue. The new technology will be evident in the tools of war, and the death rate could be staggering. Continued overpopulation will make cemeteries unpopular and there will be a push to replace them with something that does not take up space.
Education: The cheapest smartphones are already at $10 in Africa and Asia. By 2020, 70% of all humans will own a smartphone. That means everyone has access to world class education. Every child can use Khan academy for everything a child learns at school in First World countries. They have already released their software in Indonesia and will release it in Arabic, Swahili and Chinese this summer, because they see an enormous potential. They will give the English app for free, so that children in Africa can become fluent in English within half a year.
HOW ABOUT THAT?!