A.I. Cannot Learn What 4-Year-Old Learns From Trial-And-Error Experiments

(p. C3) A few weeks ago a Google engineer got a lot of attention for a dramatic claim: He said that the company’s LaMDA system, an example of what’s known in artificial intelligence as a large language model, had become a sentient, intelligent being.

Large language models like LaMDA or San Francisco-based Open AI’s rival GPT-3 are remarkably good at generating coherent, convincing writing and conversations—convincing enough to fool the engineer. But they use a relatively simple technique to do it: The models see the first part of a text that someone has written and then try to predict which words are likely to come next. If a powerful computer does this billions of times with billions of texts generated by millions of people, the system can eventually produce a grammatical and plausible continuation to a new prompt or a question.

. . .

In what’s known as the classic “Turing test,” Alan Turing in 1950 suggested that if you couldn’t tell the difference in a typed conversation between a person and a computer, the computer might qualify as intelligent. Large language models are getting close. But Turing also proposed a more stringent test: For true intelligence, a computer should not only be able to talk about the world like a human adult—it should be able to learn about the world like a human child.

In my lab we created a new online environment to implement this second Turing test—an equal playing field for children and AI systems. We showed 4-year-olds on-screen machines that would light up when you put some combinations of virtual blocks on them but not others; different machines worked in different ways. The children had to figure out how the machines worked and say what to do to make them light up. The 4-year-olds experimented, and after a few trials they got the right answer. Then we gave state-of-the-art AI systems, including GPT-3 and other large language models, the same problem. The language models got a script that described each event the children saw and then we asked them to answer the same questions we asked the kids.

We thought the AI systems might be able to extract the right answer to this simple problem from all those billions of earlier words. But nobody in those giant text databases had seen our virtual colored-block machines before. In fact, GPT-3 bombed. Some other recent experiments had similar results. GPT-3, for all its articulate speech, can’t seem to solve cause-and-effect problems.

If you want to solve a new problem, googling it or going to the library may be a first step. But ultimately you have to experiment, the way the children did. GPT-3 can tell you what the most likely outcome of a story will be. But innovation, even for 4-year-olds, depends on the surprising and unexpected—on discovering unlikely outcomes, not predictable ones.

For the full commentary see:

Alison Gopnik. “What AI Still Doesn’t Know How To Do.” The Wall Street Journal (Saturday, July 16, 2022): C3.

(Note: ellipsis added.)

(Note: the online version of the commentary has the date July 15, 2022, and has the same title as the print version.)

Increasing Tax Rates Will Reduce Venture Funding for Cancer Research

(p. A17) In his last year as vice president, Joe Biden launched a “cancer moonshot” to accelerate cures for the disease. It was short-lived, but he did help negotiate an agreement in Congress easing regulation of breakthrough drugs and medical devices.

In February [2022], President Biden revived the initiative, setting a goal of reducing cancer death rates by at least 50% over the next 25 years. It’s ambitious but may be achievable given how rapidly scientific knowledge and treatments are advancing. Other Biden policies, however, are at odds with the goals of this one.

Two pharmaceutical breakthroughs were announced only last week that could save tens of thousands of lives each year and redefine cancer care. Yet the tax hikes and drug-price controls that the Biden administration is pitching would discourage the private investment that has delivered these potential cures.

. . .

Oncologists were blown away by the results reported last week in the New England Journal of Medicine: All 12 patients receiving the drug achieved complete remission after six months of treatment. None needed surgery, chemotherapy or radiation. Although some may relapse, the 100% success rate is unprecedented even for a small trial.

. . .

Last week AstraZeneca in partnership with Daiichi Sankyo reported that Enhertu reduced the risk of death by 36% in patients with metastatic breast cancer with low HER2 and by half for the subset who were hormone-receptor negative. These results blow the outcomes for other metastatic breast-cancer therapies out of the water.

. . .

These treatment breakthroughs aren’t happening because of government programs. They’re happening because pharmaceutical companies have invested decades and hundreds of billions of dollars in drug research and development. It typically takes 10.5 years and $1.3 billion to bring a new drug to market. About 95% of cancer drugs fail.

This is important to keep in mind as Mr. Biden and Democrats in Congress push for Medicare to “negotiate”—i.e., cap—drug prices and raise taxes on corporations and investors. The large profits that drugmakers notch from successful drugs are needed to reward shareholders for their investment risk and encourage future investment. Capital is mobile.

Mr. Biden’s proposal to increase the top marginal individual income-tax rates, including on capital gains, would punish venture capitalists who seed biotech startups, which do most early-stage research on cancer drugs and are often acquired by large drugmakers. At the same time, his proposed corporate global minimum tax would raise costs of intellectual property, which is often taxed at lower rates abroad.

There aren’t many things to celebrate nowadays, but biotech innovation is one. Let’s hope the president doesn’t kill his own cancer moonshot.

For the full commentary see:

Allysia Finley. “Biden May Stop His Cancer Moonshot’s Launch.” The Wall Street Journal (Thursday, June 16, 2022): A17.

(Note: ellipses, and bracketed year, added.)

(Note: the online version of the commentary has the date June 15, 2022, and has the same title as the print version.)

Feds Requiring EV Chargers in Desolate Parts of the West That Are Off the Electric Grid

(p. B1) The U.S. government wants fast EV-charging stations every 50 miles along major highways. Some Western states say the odds of making that work are as remote as their rugged landscapes.

States including Utah, Wyoming, Montana, New Mexico and Colorado are raising concerns about rules the Biden administration has proposed for receiving a share of the coming $5 billion in federal funding to help jump-start a national EV-charging network. The states say it will be difficult, if not impossible, to run EV chargers along desolate stretches of highway.

“There are plenty of places in Montana and other states here out West where it’s well more than 50 miles between gas stations,” said Rob Stapley, an official with the Montana Department of Transportation. “Even if there’s an exit, or a place for people to pull off, the other big question is: Is there anything on the electrical grid at a location or even anywhere close to make that viable?”

. . .

(p. B2) Some Western states are unhappy over the federal determination of which U.S. highways should have the chargers, which is a carry-over from 2015 legislation for alternative-fuels roadways.

Mr. De La Rosa of New Mexico said it could result in a disproportionate number of charging stations in the southeast part of the state, and none in the northwest. “It’s not apparent here in New Mexico how those decisions were made,” he said.

Utah’s population is largely clustered in cities along the Wasatch Front and Interstate-15 in the northern and southern parts of the state, and there are concerns that spending on remote locations could skip serving the routes most delivery drivers and residents use, said Kim Frost, executive director of the Utah Clean Air Partnership.

For the full story see:

Jennifer Hiller. “Plan for EV Chargers Meets Skepticism in West.” The Wall Street Journal (Tuesday, June 14, 2022): B1-B2.

(Note: ellipsis added.)

(Note: the online version of the story has the date June 13, 2022, and has the title “Biden Plan for EV Chargers Meets Skepticism in Rural West.”)

The “Intellect” and “Bravado” Behind the Success of Thiel, Musk, and the “PayPal Mafia”

(p. C7) Next week marks the 20th anniversary of PayPal becoming a publicly traded company. The IPO valued the online payments processor at nearly $1 billion—an eye-opening sum at the time. Back in the day, technology firms marked such occasions with glitzy celebrations. PayPal took a different path. Its youthful employees gathered in the parking lot of their Palo Alto, Calif., office building, where the company’s enigmatic chief executive, Peter Thiel, performed a keg stand and then played 10 simultaneous games of speed chess, winning nine of them.

Jimmy Soni tells that story and many others in “The Founders,” a gripping account of PayPal’s origins and a vivid portrait of the geeks and contrarians who made its meteoric rise possible. His richly reported narrative includes corporate intrigue, workplace hijinks, breakthrough innovation and first-class nerdiness.

. . .

Julie Anderson, one of X.com’s early employees, dropped the company’s California-based telephone customer-service provider and relaunched the service in Nebraska. Why there? Because many of her relatives lived there.

. . .

Confirming a cliché, staffers do spend all night at the office—sometimes sleeping under their desks, though not always. “There’s this massive value that you harness when you’re doing an all-nighter,” says Mr. Levchin, “when you’ve gone for presumably seven or eight hours of work, and you’re really getting up to a point when something’s about to be born—and then you go for eight more hours! And instead of stopping to go to sleep and letting these ideas dissipate, you actually focus on the findings you’ve made in the last few hours, and you just go crazy and do some more of that.”

. . .

Why did PayPal thrive when others—eMoneyMail, PayPlace, c2it—failed? One key was limiting the losses from fraud. If the company had taken a traditional approach, observes a member of the fraud-analytics team, it “would have hired people who had been building logistic regression models for banks for twenty years but never innovated.” Instead it turned to young, open-minded engineers who devised unorthodox methods.

. . .

. . . “The Founders” makes crystal-clear that PayPal’s human capital—a potent cocktail of intellect, bravado and competitiveness, complemented by the occasional keg stand—laid the foundation for success.

For the full review, see:

Matthew Rees. “Making the Future Click.” The Wall Street Journal (Saturday, Feb. 12, 2022): C7.

(Note: ellipses added.)

(Note: the online version of the review has the date February 11, 2022, and has the title “‘The Founders’ Review: Making the Future Click.”)

The book under review is:

Soni, Jimmy. The Founders: The Story of PayPal and the Entrepreneurs Who Shaped Silicon Valley. New York: Simon & Schuster, 2022.

A.I. Remains Useful Mainly for “Uncinematic Back-Office Logistics”

(p. B4) After years of companies emphasizing the potential of artificial intelligence, researchers say it is now time to reset expectations.

With recent leaps in the technology, companies have developed more systems that can produce seemingly humanlike conversation, poetry and images. Yet AI ethicists and researchers warn that some businesses are exaggerating the capabilities—hype that they say is brewing widespread misunderstanding and distorting policy makers’ views of the power and fallibility of such technology.

“We’re out of balance,” says Oren Etzioni, chief executive of the Allen Institute for Artificial Intelligence, a Seattle-based research nonprofit.

. . .

The belief that AI is becoming—or could ever become—conscious remains on the fringes in the broader scientific community, researchers say.

In reality, artificial intelligence encompasses a range of techniques that largely remain useful for a range of uncinematic back-office logistics like processing data from users to better target them with ads, content and product recommendations.

. . .

The gap between perception and reality isn’t new. Mr. Etzioni and others pointed to the marketing around Watson, the AI system from International Business Machines Corp. that became widely known after besting humans on the quiz show “Jeopardy.” After a decade and billions of dollars in investment, the company said last year it was exploring the sale of Watson Health, a unit whose marquee product was supposed to help doctors diagnose and cure cancer.

. . .

Elizabeth Kumar, a computer-science doctoral student at Brown University who studies AI policy, says the perception gap has crept into policy documents. Recent local, federal and international regulations and regulatory proposals have sought to address the potential of AI systems to discriminate, manipulate or otherwise cause harm in ways that assume a system is highly competent. They have largely left out the possibility of harm from such AI systems’ simply not working, which is more likely, she says.

For the full story see:

Karen Hao and Miles Kruppa. “AI Hype Doesn’t Match Reality.” The Wall Street Journal (Thursday, June 30, 2022): B4.

(Note: ellipses added.)

(Note: the online version of the story was updated July 5, 2022, and has the title “Tech Giants Pour Billions Into AI, but Hype Doesn’t Always Match Reality.”)

Brynjolfsson Made “Long Bet” with Gordon that A.I. Will Increase Productivity

(p. B1) For years, it has been an article of faith in corporate America that cloud computing and artificial intelligence will fuel a surge in wealth-generating productivity. That belief has inspired a flood of venture funding and company spending. And the payoff, proponents insist, will not be confined to a small group of tech giants but will spread across the economy.

It hasn’t happened yet.

Productivity, which is defined as the value of goods and services produced per hour of work, fell sharply in the first quarter this year, the government reported this month. The quarterly numbers are often volatile, but the report seemed to dash earlier hopes that a productivity revival was finally underway, helped by accelerated investment in digital technologies during the pandemic.

The growth in productivity since the pandemic hit now stands at about 1 percent annually, in line with the meager rate since 2010 — and far below the last stretch of robust improvement, from 1996 to 2004, when productivity grew more than 3 percent a year.

. . .

(p. B6) The current productivity puzzle is the subject of spirited debate among economists. Robert J. Gordon, an economist at Northwestern University, is the leading skeptic. Today’s artificial intelligence, he says, is mainly a technology of pattern recognition, poring through vast troves of words, images and numbers. Its feats, according to Mr. Gordon, are “impressive but not transformational” in the way that electricity and the internal combustion engine were.

Erik Brynjolfsson, director of Stanford University’s Digital Economy Lab, is the leader of the optimists’ camp. He confesses to being somewhat disappointed that the productivity pickup is not yet evident, but is convinced it is only a matter of time.

“Real change is happening — a tidal wave of transformation is underway,” Mr. Brynjolfsson said. “We’re seeing more and more facts on the ground.”

It will probably be years before there is a definitive answer to the productivity debate. Mr. Brynjolfsson and Mr. Gordon made a “long bet” last year, with the winner determined at the end of 2029.

For the full story see:

Steve Lohr. “Why Isn’t A.I. Increasing Productivity?” The New York Times (Wednesday, May 25, 2022): B1 & B6.

(Note: ellipsis added.)

(Note: the online version of the story was updated May 27, 2022, and has the title “Why Isn’t New Technology Making Us More Productive?”)

Log4j Open Source Bug Created “Endemic” Risk for “a Decade or Longer”

Continuing worries about the Log4j software bug are consistent with my skepticism of open source software, Openness to Creative Destruction. You can find a brief discussion in the chapter defending patents.

(p. A6) WASHINGTON—A major cybersecurity bug detected last year in a widely used piece of software is an “endemic vulnerability” that could persist for more than a decade as an avenue for hackers to infiltrate computer networks, a U.S. government review has concluded.

. . .

“The Log4j event is not over,” the report said. “The board assesses that Log4j is an ‘endemic vulnerability’ and that vulnerable instances of Log4j will remain in systems for many years to come, perhaps a decade or longer. Significant risk remains.”

. . .

Security researchers uncovered last December a major flaw in Log4j, an open-source software logging tool. It is a widely used piece of free code that logs activity in computer networks and applications.

For the full story, see:

Dustin Volz. “‘Endemic’ Risk Seen In Log4j Cyber Bug.” The Wall Street Journal (Friday, July 15, 2022): A6.

(Note: ellipses added.)

(Note: the online version of the story has the date July 14, 2022, and has the title “Major Cyber Bug in Log4j to Persist as ‘Endemic’ Risk for Years to Come, U.S. Board Finds.”)

My book, mentioned above, is:

Diamond, Arthur M., Jr. Openness to Creative Destruction: Sustaining Innovative Dynamism. New York: Oxford University Press, 2019.

Well-Financed Fusion Startup Claims to Be a Year Away From Energy Break-Even Point

(p. B4) Zap Energy, a fusion energy start-up working on a low-cost path to producing electricity commercially, said last week that it had taken an important step toward testing a system its researchers believe will eventually produce more electricity than it consumes.

. . .

While many competing efforts use powerful magnets or bursts of laser light to compress a plasma in order to initiate a fusion reaction, Zap is pursuing an approach pioneered by physicists at the University of Washington and Lawrence Livermore National Laboratory.

It relies on a shaped plasma gas — an energized cloud of particles that is often described as a fourth state of matter — that is compressed by a magnetic field generated by an electrical current as it flows through a two-meter vacuum tube. The technique is known as “sheared flow Z-pinch.”

. . .

Advances in stabilizing the magnetic field that is generated by the flowing plasma made by physicists at the University of Washington led the group to establish Zap Energy in 2017. The company has raised more than $200 million, including a series of investments from Chevron.

Recent technical advances in fusion fuels and in advanced magnets have led to a sharp increase in private investment, according to the Fusion Industry Association. There are 35 fusion companies globally, and private funding has risen above $4 billion, including from well-known technology investors like Sam Altman, Jeff Bezos, John Doerr, Bill Gates and Chris Sacca. Mr. Gates and Mr. Sacca invested in Zap’s most recent funding round.

. . .

The Zap Energy physicists and executives said in interviews last week that they believed they were within a year of proving that their approach was capable of reaching the long-sought-after energy break-even point.

If they do, they will have succeeded where an array of research efforts — going back to the middle of the last century — have failed.

The Zap Energy physicists said they had made the case for the “scaling” power of their approach to produce a steep increase in neutrons in a series of peer-reviewed technical papers that documented computer-generated simulations they would soon begin to test.

For the full story, see:

John Markoff. “A Seattle Start-Up Claims a Big Step For Fusion Energy.” The New York Times (Thursday, June 23, 2022): B4.

(Note: ellipses added.)

(Note: the online version of the story has the date June 22, 2022, and has the title “A Big Step Toward Fusion Energy Is Hailed by a Seattle Start-Up.”)

Union Blocks Automation That Would Make Ports More Resilient and Efficient

(p. B6) The companies that transport and handle the cargo say the automation is one solution to the congestion at ports, particularly the Los Angeles and Long Beach sites at the heart of America’s supply chain woes. The spare use of robotics at U.S. ports leaves them uncompetitive with big gateways in China and Europe that are packed with automation, they say.

Jeremy Nixon, chief executive of Singapore-based container line Ocean Network Express, told the TPM22 Conference produced by The Journal of Commerce in Long Beach earlier this year that European and Asian ports can clear backlogs quickly because they have automated cargo-handling equipment that operates around the clock. “Here, we just don’t have that resilience,” he said.

. . .

A port performance index created by the World Bank and S&P Global Market Intelligence ranked the Los Angeles and Long Beach port complex dead last in efficiency among the world’s ports last year, trailing Luanda, Angola, and the Port of Ngqura, South Africa. The world’s most efficient ports were in the Middle East and Asia.

For the full story, see:

Paul Berger. “Port Union Talks Center on Automation.” The Wall Street Journal (Friday, June 10, 2022): B6.

(Note: ellipsis added.)

(Note: the online version of the story has the date June 9, 2022, and has the title “A Deep Divide on Automation Hangs Over West Coast Port Labor Talks.”)

“For the Foreseeable Future We Cannot Feed the World Without Relying on Fossil Fuels”

(p. 16) The title’s pleonastic fourth word is the giveaway. It announces the tone of Vaclav Smil’s 49th book: vinegary scorn for the irresponsible declarations of self-proclaimed experts, particularly those guilty of innumeracy, ahistoricism and other forms of wishful thinking that Vaclav Smil would never, ever fall for. You’ve heard a lot of prognostications about the state of the world. They’re bunk. Here, at last, is how the world really works.

. . .

. . . every fundamental aspect of modern civilization rests overwhelmingly on fossil fuel combustion. Take our food system. Readers of Michael Pollan or Amanda Little understand that it’s morally indefensible to purchase Chilean blueberries or, God forbid, New Zealand lamb. But even a humble loaf of sourdough requires the equivalent of about 5.5 tablespoons of diesel fuel, and a supermarket tomato, which Smil describes as no more than “an appealingly shaped container of water” (apologies to Marcella Hazan), is the product of about six tablespoons of diesel. “How many vegans enjoying the salad,” he writes, “are aware of its substantial fossil fuel pedigree?”

It is best to eat local, but we do not have enough arable land to support our population, even in our vast continent, at least not without the application of obscene quantities of natural-gas-derived fertilizer. One must further account for the more than three billion people in the developing world who will need to double or triple their food production to approach a dignified standard of living. Then add the additional two billion who will soon join us. “For the foreseeable future,” writes Smil, “we cannot feed the world without relying on fossil fuels.” He performs similar calculations for the world’s production of energy, cement, ammonia, steel and plastic, always reaching the same result: “A mass-scale, rapid retreat from the current state is impossible.”

Smil’s impartial scientist persona slips with each sneer at the “proponents of a new green world” or “those who prefer mantras of green solutions to understanding how we have come to this point.” Still, his broader point holds: We are slaves to fossil fuels.

. . .

Smil’s book is at its essence a plea for agnosticism, and, believe it or not, humility — the rarest earth metal of all. His most valuable declarations concern the impossibility of acting with perfect foresight. Living with uncertainty, after all, “remains the essence of the human condition.” Even under the most optimistic scenario, the future will not resemble the past. We will have to navigate seemingly impossible conditions, relying on instinct and imperfect assumptions and our old familiar flaws (chiefly “our never-failing propensity to discount the future”). This may not be a particularly galvanizing conclusion, but it is, yes, how the world works.

For the full review, see:

Nathaniel Rich. “The Theory of Nothing.” The New York Times Book Review (Sunday, May 29, 2022): 16.

(Note: ellipses added; italics in original.)

(Note: the online version of the review has the date May 11, 2022, and has the title “Everything You Thought You Knew, and Why You’re Wrong.”)

The book under review is:

Smil, Vaclav. How the World Really Works: The Science Behind How We Got Here and Where We’re Going. New York: Viking, 2022.

Truckers Hurt If Union Dock Workers Strike to Add to Their Six Figure Pay, and to Block Efficient Technology

(p. B1) LOS ANGELES — David Alvarado barreled south along the highway, staring through the windshield of his semi truck toward the towering cranes along the coastline.

He had made the same 30-minute trek to the Port of Los Angeles twice that day; if things went well, he would make it twice more. Averaging four pickups and deliveries a day, Mr. Alvarado has learned, is what it takes to give his wife and three children a comfortable life.

“This has been my life — it’s helped me support a family,” said Mr. Alvarado, who for 17 years has hauled cargo between warehouses across Southern California and the twin ports of Los Angeles and Long Beach, a global hub that handles 40 percent of the nation’s seaborne imports.

He weathered the blow to his paycheck early in the pandemic when he was idling for six hours a day, waiting for cargo to be loaded off ships and onto his truck. Now the ports are bustling again, but there is a new source of anxiety: the imminent expiration of the union contract for dockworkers (p. B5) along the West Coast.

If negotiations fail to head off a slowdown, a strike or a lockout, he said, “it will crush me financially.”

The outcome will be crucial not only for the union dockworkers and port operators, but also for the ecosystem of workers surrounding the ports like Mr. Alvarado, and for a global supply chain reeling from coronavirus lockdowns and Russia’s invasion of Ukraine. Inflation’s surge to the highest rate in more than four decades is due, in part, to supply chain complications.

The contract between the International Longshore and Warehouse Union, which represents 22,000 workers at 29 ports from San Diego to Seattle, and the Pacific Maritime Association, representing the shipping terminals, is set to expire on Friday. The union members primarily operate machinery like cranes and forklifts that move cargo containers on and off ships.

. . .

The negotiations have centered largely on whether to increase wages for the unionized workers, whose average salaries are in the low six figures, and expanding automation, such as using robots to move cargo containers, to speed up production, a priority for shipping companies.

“Automation allows greater densification at existing port terminals, enabling greater cargo throughput and continued cargo growth over time,” Jim McKenna, the chief executive of the Pacific Maritime Association, said in a recent video statement on the negotiations.

. . .

As he drove past the ports, Mr. Alvarado turned his truck into a warehouse parking lot, where the multicolored containers lined the asphalt like a row of neatly arranged Lego blocks.

It was his third load of the day, and for this round, he didn’t have to wait on the longshoremen to load the carrier onto his truck. Instead, he backed his semi up to a chassis, and the blue container snapped into place.

He pulled up Google Maps on his iPhone and looked at the distance to the drop-off in Fontana, Calif.: 67 miles, an hour and half.

It might, Mr. Alvarado said, end up being a four-load day after all.

For the full story see:

Kurtis Lee. “As Dockworkers Near Contract’s End, The U.S. Has a Stake.” The New York Times (Thursday, June 30, 2022): B1 & B5.

(Note: ellipses added.)

(Note: the online version of the story has the same date as the print version, and has the title “As Dockworkers Near Contract’s End, Many Others Have a Stake.”)