Ransome

The alarming ease of launching ransomware attacks like WannaCry

Ransomware is malicious software deployed by hackers to take over computer systems and then demand ransom in exchange for relinquishing control of victims’ computers. The WannaCry attack in May was a large-scale example of this type of attack, in which 230,000 computers in 150 countries were infected by hackers demanding payment in Bitcoin. Damages were estimated to be as high as $4 billion.

What’s particularly alarming is that it’s neither expensive nor technically complex to launch a ransomware attack. Hackers can purchase the software they need from websites on the Dark Web, where do-it-yourself ransomware kits range in price from $0.50 to $3,000—with the median price at just $10.50. Which means that for the price of a really good sandwich, a hacker can wreak billions of dollars in damage to vulnerable computer systems.

The next time you get annoyed at yet another “update your software” notification, remember that keeping your devices patched and up-to-date is one of the best ways to protect yourself from cyber attackers.

Entefy’s enFacts are illuminating nuggets of information about the intersection of communications, artificial intelligence, security and cyber privacy, and the Internet of Things. Have an idea for an enFact? We would love to hear from you. 

Hand

What happens when art and technology collide? Even-more-modern art.

Creativity is often considered central to what makes humans unique among living creatures. So as artificial intelligence scientists continue to push the envelope on the capabilities of intelligent systems, machine-made creativity is an active area of research. Entefy looked at the nature of creativity and the state of AI-generated art in a previous article. We thought it would be interesting to revisit the topic and explore how not just AI but other digital technologies are impacting the world of art. What we found was example after example of surprising innovation. And some startlingly realistic computer-generated artwork.

The list below covers the broad impact of digital technology on the arts, including everything from 3D virtual environments to painting and music, and even technology that helps museums deal with overcrowding by selfie-crazed visitors.

Here are 8 ways technology is transforming the arts:

  1. Blurring the line between “art” and “digital art.” Digital art goes back at least as far as the Bell Labs-sponsored Experiments in Art and Technology (EAT) in the 1960’s. Today, however, a new generation of digitally native artists, dubbed the 89plus generation after the birth of the World Wide Web in 1989, make use of the Internet and digital creation tools to create innovative works of art that are no longer considered part of a “digital” niche.
  2. Art is experienced in new ways in virtual and augmented realities. Theoverlap of art and technology was clear at a major art show during New York Art Week. The event featured art created using a long list of technologies: 3D imaging, green screen filming, and animated GIFs. Beyond the creation of artwork was its experience by viewers wearing VR and AR headsets that enabled them to move through digital artwork.
  3. Digital art reflects the world we live in today. An art exhibit at the University of California, Irvine used the term “expanded media arts” to encompass the new possibilities that digital techniques bring to traditional art. The show featured artwork created using 3D printers, digital cameras, and even video game consoles. Its co-curator commented, ‘You can contemplate a painting, but our world is no longer static. This art form reflects the complexity of the world we live in.’
  4. Artificial intelligence is solving overcrowding at museums. The Van Gogh museum in Amsterdam received 2.1 million visitors in 2015, 20x more than it was designed to admit. Major museums around the world are struggling to manage surging crowds who want to witness masterpieces firsthand (and perhaps take a selfie or two along the way). Researchers at Erasmus University in the Netherlands have developed an AI algorithm to predict when visitors will visit, allowing museums to design incentives like discounted tickets to smooth out peak periods and admit more visitors.
  5. Digital art asks us to examine our views about technology itself. It’s notexactly news at this point that digital technology is a part of almost every aspect of life. But you needn’t look much farther than the backlash against social media’s mixed record to see people seeking to find the right balance between the real and the digital. Artists, too, are using audio, visual, and even dance with a robot to explore issues like humanizing technology and how much of our lives should be automated.
  6. Deep learning and robotics combine for AI creativity. A project called CloudPainter by the artist Pindar Van Arman hints at the future of artwork created by intelligent machines. The artist created AI-powered software that uses human-created art as an input source to output ‘imagined’ paintings generated by the software and created by a robotic arm designed to paint on canvas.
  7. Innovation extends to new forms of musical instruments. Combining engineering and music, one Georgia Tech-based avant-garde artist designed an entirely new type of musical instrument: “the 3D-printed alien contraption is capable of producing sounds like guttural whale bellows, the echoing of water dripping from stalactites, and the clacking of scuttling crab legs. As more notes are struck, the solenoids in the interior of the device begin generating a tune of their own in unpredictable fashion.” The artist described the experience of using the device like co-performing with the instrument itself.
  8. A proposal for a new approach to AI-generated art. A group of scientists and artists at the Art & AI Laboratory at Rutgers University published a paper describing a new approach to the use of Generative Adversarial Networks (GAN), a set of AI algorithms based on unsupervised deep learning. The researchers trained their system using 81,449 paintings from 1,119 different artists. They then conducted experiments using human subjects who were asked to identify whether artworks were created by humans or their AI system; 53% of respondents thought the AI-generated creations were human-made.

Curious whether you can spot the difference between AI-generated art and good old-fashioned human creativity? Start with these two paintings.

Aviation

114 years of aviation innovation summed up in one tweet: Inspiration from Chuck Yeager

Around here at Entefy, we’re great fans of courageous innovation and the boundary-busting minds behind great invention. A tweet from aviation pioneer Chuck Yeager caught our eyes because in just 156 characters it tells an amazing story of the pace of technological advancement in the 20th and 21st centuries.

Chuck Yeager was the daredevil test pilot who flew the first aircraft to break the sound barrier in 1947. At 94 years old, he is today an active commenter on social media where he tweeted about a conversation he had with Orville Wright in 1948:

Dec 17, 1903. It’s been 114 years since Wright Brothers 1st powered flight. I met Orville – he was impressed we broke the sound barrier just 44 yrs later.

Along with his brother Wilbur, Orville Wright was a pioneer of powered flight. Born in 1871, he piloted the Flyer 1 aircraft at Kitty Hawk in 1903, and passed away in 1948 at age 76. Wright witnessed the entirety of early aviation, from the first manned flights to the breaking of the sound barrier. During Yeager’s lifetime, he has witnessed aerospace breakthroughs like the moon landing, the Voyager 1 spacecraft leaving the edges of our solar system in 2013, and Space Race 2.0 milestones like SpaceX reusable rocket boosters.

Yeager was 25 at the time of his conversation with Orville Wright. Today the average 25-year-old male has a life expectancy of 87.8 years. What technological marvels lie ahead in the 21st century as courageous innovation thrives around the globe?

Brienne

Entefy Co-Founder Brienne Ghafourifar explores the value of time at the SJSU Silicon Valley Leaders Symposium

What is the most precious thing in the world? A range of answers come to mind. Family. Adventure. Health. Money. Yet one answer links all possible answers: Time. As in having the time to do anything and everything we want to accomplish in our lives. Time was the central theme of Entefy Co-Founder Brienne Ghafourifar’s presentation at the Silicon Valley Leaders Symposium at San Jose State University’s Davidson College of Engineering.

The Symposium connects Davidson faculty and engineering students with prominent tech industry leaders to explore key trends impacting the technology market and the world at large. Brienne used her theme of the value of time to discuss her accelerated education and entrepreneurial journey as a Co-Founder of Entefy. She explained how the company is on a quest to achieve something monumental in the realm of human productivity: saving people time so they can live and work better. A perpetual optimization challenge common to all domains of engineering and business.

As you’d expect from an audience of industrial, mechanical, and software engineers, the question-and-answer portion of the event was lively and wide-ranging. To a question about the lessons Brienne has learned as an entrepreneur, she shared not only her experience but also her mantra: “Never stop learning. You have to earn your seat every day.” One student raised the topic of the AI “singularity,” the shorthand phrase for an AI system that achieves and quickly surpasses human intelligence across multiple dimensions. Brienne reiterated Entefy’s viewpoint that the promise of AI is found in how well it augments human capabilities, allowing more people to do more things in less time. After nearly a half hour of Q&A time, the event concluded with a lively sidebar of friendly conversation amongst the attendees.

Entefy welcomes opportunities like the Silicon Valley Leaders Symposium to connect with like-minded engineers and entrepreneurs who are looking to leverage new technologies to make the world a better place.

Woman

Dressed to the nines: 9 ways technology is transforming fashion and retail

With a customer base including just about everyone, it’s no wonder that the fashion industry is a global powerhouse. In fact, a $2.4 trillion per year powerhouse. If it were a country, it would be the world’s 7th largest economy, on par with the total economic output of France or India. And like practically every other industry—and country—the fashion sector relies on making use of new technologies to support growth.

What’s perhaps surprising is how ahead-of-the-curve many fashion brands and retailers are when it comes to implementing advanced technologies. Below we’ve rounded up 9 examples of fashion brands using advanced tech like artificial intelligence, virtual reality, and blockchain to attract customers, grow sales, and develop entirely new product categories.

Here are 9 ways advanced technologies are transforming fashion and retail:

  1. Artificial intelligence for designing fashion. Fashionmay be ruled by trends, but a person’s style can be said to be as unique as a fingerprint. Enter artificial intelligence, the cluster of intelligent technologies allowing the fashion industry to shape the future of fashion using algorithms that learn from images to generate new styles on their own.
  2. The new reality of VR and AR. The use of virtual and augmented-reality tools is increasing in the fashion world. While early experiments were largely promotional, investment is being made by fashion brands and retailers to create digital environments that not only showcase styles but become an entirely new sales channel. The Chinese e-commerce company Alibaba built a virtual store stocked with goods and made purchase and payment by customers as easy as nodding their heads.
  3. Mobile sales via AI-powered messaging bots.As fashion retail has moved online and gone mobile, the industry is attempting to replicate the role of the floor salesperson using AI-powered messaging bots. The fashion brand Burberry, for instance, launched a chatbot in conjunction with London Fashion Week that let users preview new styles and make an immediate purchase.
  4. Blockchain will become part of business vernacular. Despite all the attention cryptocurrencies like Bitcoin receive in the press, practically every industry is exploring how to make use of blockchain, the foundational technology that enables Bitcoin. Fashion entrepreneurs are designing wearables intended to tap into the mainstreaming of blockchain and cryptocurrencies. Among the offerings are biometric rings that use blockchain to secure a person’s passwords and wearable payment devices for making payments using the Dash cryptocurrency.
  5. Shopping assistants go mobile.The retailer Macy’s is building an AI-powered app to assistant shoppers while they’re in the company’s stores. Macy’s On Call uses AI technologies like natural language processing to understand customer questions and provide answers and recommendations. The app is expected to appeal to Millennial shoppers who in many cases prefer to consult their smartphones rather than a floor salesperson.
  6. Advances in new materials and wearables. Another new development in fashion is the use of highly advanced materials that give clothes entirely new functionality. Making use of nanotechnology to produce smart fibers and conductive yarns, these fabrics can be used in everything from apparel to furniture covering to bedding. Denim company Levi’s produced an early example of this in the form of a commuter jacket that connected with smartphones; the jacket’s sleeve was designed to accept touch commands. 
  7. Talent-spotting using social media. The transformative use of social media in fashion goes well beyond its use as a promotional tool. Social media users who amass large followings on Instagram, Facebook, and other platforms earn the attention of fashion brands in the form of sponsorship deals. But social’s influence goes further, to include talent-spotting for roles like fashion photographers, runway models, and back-stage makeup artists, stylists, and producers.
  8. Fashion tech accelerators. Taking a page from Silicon Valley and the Fortune 500, the fashion and retail industries have launched innovation labs designed to foster entrepreneurship and technological development. The New York Fashion Tech Lab, for example, is a nonprofit with a mission to support women-led fashion companies. Retailer Neiman Marcus launched its innovation lab in 2012, launching projects like voice-activated sales associate bots and connected fitting room technology.
  9. Digital transformation using smart beacons. The retail industry is using “smart beacons” to boost sales and generate new streams of customer data. The systems connect with customers’ devices using Bluetooth and enable functionality like location-based promotions. Beyond the sales aspect, smart beacons provide valuable data that supports internal marketing analysis as well as customer personalization.

Entefy shared insights into the impact of artificial intelligence, automation, and other disruptive technologies most recently in this snapshot covering 27 different industries

AI

Artificial intelligence quickly becoming business’ new best friend

When most people think about AI, they envision self-driving cars and autonomous robots. But not all AI innovations are quite that sexy. In fact, many current AI applications are rather inconspicuous. But not at all inconsequential.

In this article, we’ll dive into AI’s role in improving four areas: sales & marketing, manufacturing, customer service, and business operations.

The perfect sales & marketing team

Every company wants to increase sales. Some ramp up their marketing, some slash prices to attract more consumers, and some leverage artificial intelligence. AI platforms can analyze marketing and sales performance across search, mobile, social media, email campaigns, and other channels. These smart systems track key metrics, allowing human staff to revise their messaging based on real-time customer feedback.

But AI isn’t just a reporter for creative and business teams. It’s also capable of autonomously adjusting ad spend based on campaign performance, and the rapidly advancing technology has even outperformed human-led agency teams.  

The telecommunications company CenturyLink uses an AI assistant to vet sales leads – essentially evaluating which prospects are most likely to buy and therefore deserve the attention of a salesperson. CenturyLink’s AI platform, which relies on a virtual assistant named Angie, has generated $20 in new contracts for every $1 invested in the system. Angie not only sends 30,000 emails a month, the program analyzes prospect communications to identify promising leads and automatically schedules appointments for them with the relevant sales associate.

Given that most employees spend more than half their workdays on email and other non-urgent tasks, Angie’s administrative abilities alone save the company both time and money. But the analytical side of the AI allows the sales team to direct its resources into the prospects who are most likely to become customers, leading to better returns and higher profits across the board. 

The benefits AI offers to sales teams are many. In addition to time-saving perks, such as automated scheduling, AI can also monitor customer calls to spot problematic patterns. For instance, a salesperson may often talk over clients without realizing it. When the AI points this out, he’s more vigilant about his communication style, and he sees a boost in sales.

A manufacturing ninja

When Airbus, the European aircraft manufacturer, wanted to increase production of its A350 model, it used artificial intelligence as the cornerstone of its efforts. The company needed to anticipate and reduce disruptions in its production process, so it deployed a self-learning AI platform that analyzed both new inputs and historical production data.

The AI system learned to match current problems with solutions that worked on similar issues in the past. When a worker encountered an obstacle, the system would recommend a strategy for addressing it. As the company’s vice president of digital transformation explained it, “The problem might be new to them, but in fact, we’ve seen something very similar in the production line the weekend before, or on a different shift, or on a different section of the line. This has allowed us to shorten the amount of time it takes us to deal with disruptions by more than a third.”

Charming customers one AI-assisted agent at a time

Chatbots are becoming the darlings of enterprise customer service programs, for good reason. AI-powered bots enable companies to respond to customer inquiries quickly and accurately while freeing human agents to focus on complex issues and requests. China Merchant Bank recently began using a messenger bot to field basic questions from up to two million customers. The majority are seeking information about credit card balances and other easily accessible data, so it makes sense to offload those questions to a computer. A single bot can do the work of thousands of customer service employees who can now focus on higher-priority tasks.

AI-assisted customer service enables companies to respond faster because they can anticipate the questions and deliver immediate answers to simple queries. Rather than having workers sit through every introductory chat or call and decide which ones warrant more in-depth attention, the AI can make those judgements instantly and then answer questions themselves or pass the messages on to human representatives. Such speed and responsiveness lead to improved customer relationships, which ultimately leads to greater sales and profits.

New insights transforming business operations

Data is a business’ most important asset. Which products are most popular, how many recurring customers you have, which processes eat up most of the budget, which are most inefficient – these are powerful numbers that can help you run a smarter, more profitable company.

GE Power expects to save $66 billion over the next 15 years using sensor-based systems to transform data into insights that help optimize operations. The company collects a terabyte of data each day from sensors attached to 1,700 turbines, and it combines that information with 100 million hours of data about its operational procedures and maintenance records. The insights gleaned from those sources allow the company to make better operational decisions and improve its overall processes.

Data collection and analysis can produce groundbreaking insights for companies in all industries. AI can help your business predict market conditions that will affect your sales a few years down the road, along with anticipating potential supply chain disruptions or a shift in demand among your core audience. Instead of being reactionary or relying on past data to make predictions, AI allows you to look into the future and make decisions based on a long-term view of where your company and market are headed.

The potential for AI to transform business operations exists in every industry. Consider the energy sector. The ability to detect and react to potential problems before they become crises is invaluable, both within companies and within the energy industry supply chain. It’s no secret that the power grids in the U.S. are outdated, overworked, and ill-equipped to manage a diverse array of energy sources. Smart grid initiatives will rely on deep learning and other AI techniques to monitor energy usage and direct resources where they’re needed most, which can help reduce blackouts and outages, and in turn reduce business interruptions.

Artificial intelligence includes a wide range of tools that can help your business grow sustainably and your employees work more effectively. By augmenting your team’s talents with AI, you empower them to deliver greater value and help you build a better company. 

Light bulb

Entefy’s newly issued patent heralds advances in people-centric messaging

Entefy patent takes communication across multiple formats and protocols to an entirely new level

PALO ALTO, Calif. February 7, 2018 — Entefy Inc. has been issued a new patent by the U.S. Patent and Trademark Office (USPTO). Patent No. 9,819,621 describes an “Apparatus and method for optimized multi-format communication delivery protocol prediction.” 

“The fragmentation in protocols and services over the years has made digital communication much harder than it needs to be for most people. This invention allows a people-centric approach to digital communication where users no longer need to worry about different apps, protocols, or formats just to send a message,” said Alston Ghafourifar, Entefy’s CEO.

Today’s news follows the recent announcement of Entefy filing 15 new patents in the areas of search, AI, blockchain, communication, data privacy, and IoT, bringing the company’s portfolio of filed and issued patents to 46.

In 2017, Entefy announced that it had completed its Series A financing round at a $150 million valuation, the filing of an additional 13 patents in AI, cybersecurity, and data privacy, the issuance of a patent for encrypted search, and the issuance of another patent covering context awareness in messages.

ABOUT ENTEFY

Entefy is building the first universal communicator—a smart platform that uses artificial intelligence to help you seamlessly interact with the people, services, and smart things in your life—all from a single application that runs beautifully on all your favorite devices. Our patented technology combines digital communication with advanced computer vision and natural language processing to create a lightning fast and secure digital experience for people everywhere.

Blockchain

5 Blockchain innovations that aren’t Bitcoin

Thanks to its ever-fluctuating valuation, Bitcoin dominates the headlines. Whether it’s a bubble or a world-changing currency is a topic of constant, heated debate. Until recently, speculation about Bitcoin’s legitimacy overshadowed discussions of blockchain, the technology on which Bitcoin and other cryptocurrencies are built. However, innovators in a broad range of industries have begun to see blockchain’s potential, and the technology is coming out of the cryptocurrency shadows once and for all.

Blockchain in action

Before we dive into some of the ways blockchain is being applied to data security, poverty reduction, smart energy, and other areas, let’s review what exactly it is. Blockchain is essentially a digital record of transactions that anyone can access. However, no one can easily alter past data entries and it’s very difficult to hack, hence its use in cybersecurity defenses. Additionally, new items only get recorded after all of the computers on the blockchain network verify their accuracy and authenticity, which is why the technology is useful for reducing fraud and corruption.

In short, blockchain holds widespread appeal because it is decentralized, encrypted, and auditable. These attributes make it extremely applicable to efforts to secure data, streamline information systems, and improve public and private services.

Let’s take a look at 5 examples of blockchain at work:

  1. Distributing diplomas. There’s something deeply satisfying about crossing a stage and receiving a physical diploma that you can hang on your office wall for years to come. However, paper diplomas fade and they’re susceptible to damage and deterioration. But diplomas issued via blockchain will survive virtually forever. Blockchain isn’t just useful for saving diplomas for posterity, however. By issuing virtual degrees, schools enable graduates to submit this information to employers who may want to verify their application information or delve into their academic histories. Through the use of private-public encryption keys, students would have full control over their data and would be able to decide which prospective employers should gain access.      
  2. Improving shipping logistics. Everyone knows the frustration of ordering the perfect birthday gift for someone and then not having it arrive on time – or at all. And if you’ve ever shipped a meticulously crafted care package across the country, you know that shipping costs can seem staggeringly high. Fortunately, such issues may become concerns of the past, thanks to blockchain. UPS and other members of the Blockchain in Trucking Alliance have indicated that blockchain, in combination with artificial intelligence and predictive analytics, will help shipping companies reduce costs and improve delivery times and methods. The transparent nature of blockchain infrastructures will streamline order fulfillment and help companies operate more efficiently. Using high-quality market data and blockchain-secured platforms, shipping businesses will be able to decrease errors and lower labor costs.
  3. Tracking farm-to-table food. Agricultural manufacturer Cargill served up a novel use of blockchain for Thanksgiving 2017. Its Honeysuckle White brand used the technology to document and record the journey of each of its family-farm-grown turkeys. Honeysuckle White catalogued the process so that customers could trace their birds directly to the farms on which they were raised. The pilot program provides a model for how other companies can deliver on growing demands for transparency, education, and ethics in how food is grown and distributed.
  4. Reducing voter fraud. Every election carries with it the risks of voter fraud and discrimination, and until recently, even the most well-intentioned attempts to alleviate these problems sometimes fell short. Requiring voters to show photo identification at polling stations helped reduce fraud, but it marginalized people who didn’t have qualifying IDs. Blockchain’s use to defend against voter fraud circumvents both problems by allowing voters to use data stored on their smartphones to verify their identities and vote privately and securely. Remember that encryption is a core feature of blockchain technology and that it’s very difficult to alter previously-recorded transactions. By allowing people to verify their identities through their smartphones, both by using personal encryption keys and through biometric measures such as facial recognition, governments could engage a greater number of voters and reduce the chances of fraud and ballot tampering.
  5. Securing medical records. There are few greater risks to your personal data security than having your medical records stolen. Yet most hospitals and medical providers are highly vulnerable to cyberattacks. Criminals who gain access to your medical data can sell it, use it to hack your bank accounts, or bill costly medical procedures to your insurance. Beyond security concerns, obtaining your medical records can be a cumbersome and irritating process, and the lack of centralized access can lead to gaps and inefficiencies in care. Fortunately, blockchain offers a better way. In addition to providing a much more secure alternative to standard electronic record databases, blockchain affords patients more control over their information. Instead of chasing your records from provider to provider, all of your information would be stored in one secure, up-to-date location and you would have full control over what to share with different doctors via public and private encryption keys.

These use cases are but a sampling of how blockchain is transforming industries. Although many companies are only just exploring the ways in which blockchain can help them innovate and deliver better products and services, we can expect to see the technology increasingly take center stage – and perhaps even eclipse Bitcoin in the public conversation. 

Lego brick

Do it yourself: Why we sometimes prefer the more difficult path

Effort plays an important role in the way we value what we do and what we create. It may take a lot of sweat and hard work to, say, build your children’s playhouse yourself, but in the end you’ll likely value what you’ve created far more once it’s completed.

Effort takes effort, and for the most part people and even most animals go out of their way to avoid it. Which is why we value things like computers, elevators, and washing machines because they make our mental and physical lives easier. Many of today’s indispensable technologies are aimed at saving people time and effort, to free us from tedious tasks. Automation technologies like self-driving cars, robots, and artificial intelligence systems represent the promise of a future in which effort becomes almost entirely optional.

Yet when we do invest a great deal of effort to accomplish something, we look back on it with pride, fondness, and a sense of achievement. These feelings have an interesting effect: our memory tends to favor the moments that demanded our effort. The psychology of effort is pretty interesting, and tells us a lot about just how far we want technology to take us towards an effortless future.

Do people prefer the path of least resistance?

Many of us spend a great deal of time trying to find the shortest and easiest path to achieve goals. Every time we get a new project, have to drive somewhere, or need to cook a meal, we examine the options and aim for the one that will get us what we need with the greatest efficiency.

In 1949, the linguist George Zipf wrote about the principle of least effort. He theorized that over time language grows simpler as people start using words more efficiently. He defined the concept as the attempt to ‘minimize the average rate of work-expenditure over time.’

Since then, Zipf’s principle has been used to explain many other activities by both people and animals. For practically any organism, effort is costly. It depletes finite reserves of energy that can be difficult to replenish. Wasted effort gets organisms into trouble, and so creatures have learned to use it sparingly.

Back to the feeling of value in humans. People enjoy and treasure endeavors that test our abilities and demand large investments of time and energy. We run marathons, strive to perfect a work of art, and spend years on hobbies with little practical worth. We try to use our resources efficiently, yet it also seems that the act of stretching those resources to their limits delivers a great deal of emotional satisfaction.

The psychologist Mihaly Csikszentmihalyi helped found the field of positive psychology with his research on the flow state, the times when people are totally absorbed in what they’re doing. Flow is often characterized as one of the more enjoyable, rewarding, and productive experiences available to us, despite being difficult to achieve.

One of the necessary ingredients for entering the flow state is a balance between difficulty and ability. We enter flow when a challenge is hard but just within our capabilities, ensuring that it requires all our effort and attention. If it’s too easy, we get bored. Too difficult, we fail. Right in the middle is where we rise to the challenge and perform at our best. It’s not surprising, then, that athletes, musicians, and programmers are professionals who often find themselves in a state of flow.

The IKEA effect and a Betty Crocker flop

People get attached to things, especially when we own them and even more so when we create them. A well-established bias in psychology is the endowment effect, which says something quite profound about how we value things: “The endowment effect is the tendency for people who own a good to value it more than people who do not. Its economic impact is consequential. It creates market inefficiencies and irregularities in valuation such as differences between buyers and sellers, reluctance to trade, and mere ownership effects. “

Research into the endowment effect led to another quirk of human psychology that gets us back to the curious ways people value things. It’s become known as the IKEA effect, expressed simply as “when labor leads to love.” Harvard researchers found that when people put something together themselves, they ascribe greater value to it than if the same good had been purchased.

In one of their experiments, participants valued pre-assembled IKEA boxes at $0.48, while they valued the same boxes after they assembled them at $0.78. They found that the same psychology applies to how we assign value to our cars, homes, and businesses when we fix, build, or improve them.

Interestingly, the IKEA effect occurs independent of whether the effort we expend leads to a poorly built (or fixed or improved) end result. So much so that the effect “is sufficient in magnitude that consumers believe that their self-made products rival those of experts.”

A story from business history shows how complicated it can be to properly value effort. In the 1950’s, General Mills released its Betty Crocker brand cake mixes. The original product required only the addition of water to prepare the mix for baking. But sales lagged. The company scrambled to explain what was wrong with the offering. They found that consumers experienced guilt over making great tasting cakes without expending any real effort. It was too easy. The solution was to make the product less convenient by requiring that the consumer add an egg to create an extra step. And it worked. Consumers felt that they had devoted effort, creating a sense of ownership.

Our automated future may require an asterisk

Today’s world is defined in large part by increasingly powerful technologies designed to make our lives easier. To do more by expending less effort. But the psychology of effort suggests that there may be a limit to just how automated we want our automation, at least in our day-to-day lives. It points to the need for businesses to be mindful of how they design their products. Fully automating our lives may be possible, but it also may not be the solution that brings us the most satisfaction.

As we saw with the data about the flow state, our lives and work are most enriching when we find a middle ground between ease and difficulty. We want technology to deliver convenience because the time we save allows us to direct our efforts to the other tasks and goals that require the best of our abilities. 

Binoculars

You may not be able to predict the future of work, but you can prepare for it

There’s a lot of discussion about the impact of AI and automation on jobs these days. But when you read past the headlines, what’s clear is that the topic has a lot of nuance and complexity. So let’s try to break that down a little.

On the one hand, emerging automation technologies—like robotics and artificial intelligence systems—undoubtedly represent the future for job types that feature a lot of repetitive work. Think data entry, tax preparation, and telemarketing. A Deloitte study of automation in the UK, for example, found that the implementation of automation technologies in that region led to nearly 800,000 job losses, primarily in low-skill roles. But at the same time, 3.5 million new jobs were created, these generally requiring technical skillsets and paying $13,000 more per year than the jobs that were lost.

That’s great news if you’re on the receiving end of a new job and a raise. Behind those numbers are, of course, real people who will struggle to find new roles in the rapidly evolving workplace. But the data certainly provides nuance to the discussion of the impact of AI and automation.

In the U.S., manufacturing jobs get a lot of attention in politics and the media, often through soundbites and slogans that greatly oversimplify the dynamics at work. Here again we see a similarly complicated picture. Data from the National Association of Manufacturers (NAM), an industry trade group, shows that American manufacturers have 3.5 million jobs that they are seeking to fill over the next decade. They describe the challenge as a ‘skills gap’ created by demand for workers with the needed skills to use and manage new automation technologies. NAM has launched a national PR campaign to persuade workers to reconsider careers in manufacturing.

Big-picture, three themes in particular touch on the issues we’ve discussed here, namely the technology-driven impact on work in practically every corner of the job market.

The emergence of a no-collar workforce. The “no-collar” workforce describes the new class of jobs that are neither blue-collar, the traditional term for labor-intensive work, nor white-collar, the traditional term for knowledge work. No-collar jobs are defined by a skills-based, value-driven job market whose workers in many cases don’t have (or need) secondary education. The trend towards companies hiring skilled computer programmers without requiring that they have a college degree falls into this category.

The rise of apprenticeships. Though common in Europe, and especially Germany, increased U.S. interest in apprenticeships is another response to the evolving jobs and skills picture. In June 2017, the U.S. government announced $200 million in new funding to support ‘earn and learn’ apprenticeships. It’s another sign of the widespread need to retrain workers with new skillsets in response to the adoption of automation technologies.

The birth of intrapreneurship. “Intrapreneurship” refers to innovation programs within existing companies. And here, again, we see workers and employers adapting to the impact of AI on their operations. Intrapreneurs are characterized by self-directed skills acquisition, teaching themselves to acquire the knowledge they need to thrive in an ever-changing workplace.

The big takeaway for employees is that—surprise!—technology is developing faster than ever, and workers everywhere face the potential for disruption. The best defense against these changes is to focus on developing the new skills that will be most in-demand in your field.