Nov 15 2016
In 1998, Kodak had 170,000 employees and sold 85% of all photo paper worldwide. Within just a few years after that, their business model all but 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 ever think in 1998 that 3 years later you would never take pictures on paper film again?
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, it was a disappointment for a long time before it improved, became way superior to traditional formats, was finally cheaper to produce and got mainstream — in only a few short years. It will now happen with Artificial Intelligence, health care, automatic/electric cars, education, 3D printing, agriculture and many other jobs.
Welcome to the 4th Industrial Revolution and welcome to the Exponential Age. Software alone will dramatically disrupt most traditional industries as we know them today in just the next 5-10 years.
Mind you, Uber is no more than just a software (app) tool. They don’t own any cars, but 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 — just software.
Artificial Intelligence: Computers have 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 doctors and lawyers already have fewer jobs. You can get legal and medical advice (more or less basic stuff) from IBM Watson within seconds, with 90% accuracy compared with 70% accuracy when out is provided by humans.
Watson already helps doctors and nurses diagnose cancer, and being 4 times more accurate and faster than human doctors and nurses. Facebook now has a pattern recognition software that can recognize faces better than humans. By 2030, computers will become far more intelligent than humans, and with unlimited memory.
Automatic cars: In 2018 the first self driving cars will appear for the public. Around 2020, the complete automobile industry will start to be disrupted. You don’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 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% fewer cars for that. We can transform former parking spaces into parks. 1.2 million people die each year in car accidents worldwide. We now have one accident every 100,000 km, with autopilot 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 try the revolutionary approach and build a computer on wheels.
We 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 business is bound to change. Because if you can work while you commute, people will move further away to live in a more beautiful neighborhood.
Electric cars will become mainstream by 2020. Cities will be less noisy because all cars will run on electricity, which 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 stations were installed worldwide than fossil. The price for solar energy will drop so much that all coal companies will be defunct 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 anyone can have as much clean water as he wants, for nearly no cost.
Health: The Tricorder X price will be announced this year. There are pharma companies building 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 analyzes 54 biomarkers 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 medicine, nearly for free.
3D printing: The price of the cheapest 3D printer came down from $18,000 to $400 within 10 years.. In the same time, it became 100 times faster. All major shoe companies started 3D printing shoes. Spare airplane parts are already 3D printed in remote airports. The space station now has a 3D 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 3D scanning possibilities. You can then 3D scan your feet and print your perfect shoe at home. In China, they already 3D printed a complete 6-story office building. By 2027, 10% of everything that’s being produced will be 3D 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? 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 for failure in the 21st century.
Work: several traditional 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 frame.
Agriculture: There will be a $100 agricultural robot in the future. Farmers in 3rd world countries can then become managers of their field instead of working all day on their fields.
Aeroponics will need much less water. The first petri dish-produced veal is now available and will be cheaper than cow-produced veal in 2018.
Right now, 30% of all agricultural surface is used for cows. 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’ (as 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, if they are speaking the truth or not.
Education: The cheapest smart phone is already at $10 in Africa and Asia. By 2020, most humans will own a smartphone or a device that has access to world class education/information. Every child can use Khans Academy and other tools for learning art, engineering, design, languages, science, music, mathematics, etc.
Longevity: Right now, the average life span increases by 3 months per year. Four years ago, the life span used to be 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.
And this is just what we know of today’s science and technology.