let me take you back to 1960 Mattel has just launched Barbie the madmen are
just launched Barbie the madmen are
just launched Barbie the madmen are revolutionising car advertising and you
revolutionising car advertising and you
revolutionising car advertising and you can still smoke in your office if you
can still smoke in your office if you
can still smoke in your office if you work at a brand in 1960 and you’re
work at a brand in 1960 and you’re
work at a brand in 1960 and you’re trying to create the next greatest
trying to create the next greatest
trying to create the next greatest product and you’ve got to be able to
product and you’ve got to be able to
product and you’ve got to be able to predict where your customers want so you
predict where your customers want so you
predict where your customers want so you go out and talk to them you stand in a
go out and talk to them you stand in a
go out and talk to them you stand in a mall and hand out questionnaires you run
mall and hand out questionnaires you run
mall and hand out questionnaires you run a focus group you do market research
a focus group you do market research
a focus group you do market research fast-forward 60 years later to today and
fast-forward 60 years later to today and
fast-forward 60 years later to today and companies still need to talk to their
companies still need to talk to their
companies still need to talk to their customers and they still do it in
customers and they still do it in
customers and they still do it in exactly the same way so think of the
exactly the same way so think of the
exactly the same way so think of the things that you bought this week I got
things that you bought this week I got
things that you bought this week I got some new clothes pair of headphones a
some new clothes pair of headphones a
some new clothes pair of headphones a can of coke almost all the things that
can of coke almost all the things that
can of coke almost all the things that you bought would have been created out
you bought would have been created out
you bought would have been created out of our discussion with small groups of
of our discussion with small groups of
of our discussion with small groups of people using pretty much the same
people using pretty much the same
people using pretty much the same techniques as 60 years ago and that
techniques as 60 years ago and that
techniques as 60 years ago and that isn’t because they work they frequently
isn’t because they work they frequently
isn’t because they work they frequently don’t the reality is the vast majority
don’t the reality is the vast majority
don’t the reality is the vast majority of new products fail the wrong things
of new products fail the wrong things
of new products fail the wrong things just get built and so we live in a world
just get built and so we live in a world
just get built and so we live in a world that is biased away from innovation
that is biased away from innovation
that is biased away from innovation towards promotion last year we spent
towards promotion last year we spent
towards promotion last year we spent five hundred billion dollars on
five hundred billion dollars on
five hundred billion dollars on advertising and that’s money that is
advertising and that’s money that is
advertising and that’s money that is being used to convince us what to buy
being used to convince us what to buy
being used to convince us what to buy but that does next to nothing to
but that does next to nothing to
but that does next to nothing to actually improve the product and
companies are constantly spamming us
companies are constantly spamming us telling us what we want and it works
telling us what we want and it works
telling us what we want and it works you’re actually looking at a man who now
you’re actually looking at a man who now
you’re actually looking at a man who now buys more expensive shampoo than he did
buys more expensive shampoo than he did
buys more expensive shampoo than he did when he had a full head of hair
when he had a full head of hair
when he had a full head of hair that is a true story so what if the
that is a true story so what if the
that is a true story so what if the world was less wasteful what if we could
world was less wasteful what if we could
world was less wasteful what if we could create a future where all the energy
create a future where all the energy
create a future where all the energy that we currently spend on advertising
that we currently spend on advertising
that we currently spend on advertising was instead spent on making a better
was instead spent on making a better
was instead spent on making a better product a future where companies were so
product a future where companies were so
product a future where companies were so good at listening to us that their
good at listening to us that their
good at listening to us that their innovation replace the need for
innovation replace the need for
innovation replace the need for advertising altogether in that future
advertising altogether in that future
advertising altogether in that future marketing isn’t about pushing and
marketing isn’t about pushing and
marketing isn’t about pushing and promotion it’s about managing the flow
promotion it’s about managing the flow
promotion it’s about managing the flow of information between those that make
of information between those that make
of information between those that make products and those that consume products
products and those that consume products
products and those that consume products now I believe that this feature is
now I believe that this feature is
now I believe that this feature is possible and the key is our relationship
possible and the key is our relationship
possible and the key is our relationship with artificial intelligence at the very
with artificial intelligence at the very
with artificial intelligence at the very core of AI we’re trying to create
core of AI we’re trying to create
core of AI we’re trying to create machines that learn machines that learn
machines that learn machines that learn
machines that learn machines that learn in many ways like you and I do and in
in many ways like you and I do and in
in many ways like you and I do and in fact one of the main things that these
fact one of the main things that these
fact one of the main things that these machines that need to learn about is us
machines that need to learn about is us
machines that need to learn about is us but whilst you and I are pretty limited
but whilst you and I are pretty limited
but whilst you and I are pretty limited on the number of people that we can
on the number of people that we can
on the number of people that we can learn about at the same time the
learn about at the same time the
learn about at the same time the machines that we’re designing can
machines that we’re designing can
machines that we’re designing can observe and interact with millions of
observe and interact with millions of
observe and interact with millions of people simultaneously they can combine
people simultaneously they can combine
people simultaneously they can combine that knowledge and form very accurate
that knowledge and form very accurate
that knowledge and form very accurate models about how each of us behaves and
models about how each of us behaves and
models about how each of us behaves and there are plenty of these machines
there are plenty of these machines
there are plenty of these machines already on the internet constantly
already on the internet constantly
already on the internet constantly learning about us watching what we click
learning about us watching what we click
learning about us watching what we click on what we buy who we connect with and
on what we buy who we connect with and
on what we buy who we connect with and the longer they watch the better they
the longer they watch the better they
the longer they watch the better they get at predicting where we might click
get at predicting where we might click
get at predicting where we might click next what we might like to buy who our
next what we might like to buy who our
next what we might like to buy who our friends might be we’re used to this
friends might be we’re used to this
friends might be we’re used to this whole idea of what we’ve now become has
whole idea of what we’ve now become has
whole idea of what we’ve now become has become known as personalization highly
become known as personalization highly
become known as personalization highly tuned adverse chases around the internet
tuned adverse chases around the internet
tuned adverse chases around the internet however the products they are selling
however the products they are selling
however the products they are selling don’t get better and so we’re back to
don’t get better and so we’re back to
don’t get better and so we’re back to where we were in 1960 sure we’re far
where we were in 1960 sure we’re far
where we were in 1960 sure we’re far more connected now but our personal data
more connected now but our personal data
more connected now but our personal data is being used in a way that we can’t
is being used in a way that we can’t
is being used in a way that we can’t readily track to form incredibly
readily track to form incredibly
readily track to form incredibly sophisticated models of our purchasing
sophisticated models of our purchasing
sophisticated models of our purchasing behavior and those models are then used
behavior and those models are then used
behavior and those models are then used to convince us to buy more things and
to convince us to buy more things and
to convince us to buy more things and they still do not improve the products
they still do not improve the products
they still do not improve the products that which one are creates creates a lot
that which one are creates creates a lot
that which one are creates creates a lot of value for businesses but nowhere near
of value for businesses but nowhere near
of value for businesses but nowhere near enough value for us consumers
enough value for us consumers
enough value for us consumers so last year we said about trying to
so last year we said about trying to
so last year we said about trying to rethink this we wanted to see if in the
rethink this we wanted to see if in the
rethink this we wanted to see if in the future the most effective brands are the
future the most effective brands are the
future the most effective brands are the ones that talk to their customers not to
ones that talk to their customers not to
ones that talk to their customers not to make better advertising but to share
make better advertising but to share
make better advertising but to share ideas we thought that they’d use
ideas we thought that they’d use
ideas we thought that they’d use artificial intelligence to help real
artificial intelligence to help real
artificial intelligence to help real people and brands talk to each other and
people and brands talk to each other and
people and brands talk to each other and we wanted to prove this in an industry
we wanted to prove this in an industry
we wanted to prove this in an industry which people have very strong views on
which people have very strong views on
which people have very strong views on and that which we had a pretty
and that which we had a pretty
and that which we had a pretty significant interest in as well
significant interest in as well
significant interest in as well beer so we created intelligent X the
beer so we created intelligent X the
beer so we created intelligent X the world’s first beer brewed by AI by
world’s first beer brewed by AI by
world’s first beer brewed by AI by incorporating AI into the brewing
incorporating AI into the brewing
incorporating AI into the brewing process we have created a product that
process we have created a product that
process we have created a product that automatically changes its recipe based
automatically changes its recipe based
automatically changes its recipe based on the needs of the consumers a beer
on the needs of the consumers a beer
on the needs of the consumers a beer that continually adapts to the changing
that continually adapts to the changing
that continually adapts to the changing tastes of the people drinking it now
tastes of the people drinking it now
tastes of the people drinking it now that is what I call personalization and
that is what I call personalization and
that is what I call personalization and it works very simply on one side
it works very simply on one side
it works very simply on one side algorithms are deciding which
algorithms are deciding which
algorithms are deciding which ingredients to use how long’s to cook
ingredients to use how long’s to cook
ingredients to use how long’s to cook things for and on the other they’re
things for and on the other they’re
things for and on the other they’re asking questions for the people actually
asking questions for the people actually
asking questions for the people actually drinking the beer questions about the
drinking the beer questions about the
drinking the beer questions about the taste questions about what things they’d
taste questions about what things they’d
taste questions about what things they’d like to change gathering feedback and
like to change gathering feedback and
like to change gathering feedback and all the person drinking the beer has to
all the person drinking the beer has to
all the person drinking the beer has to do is follow a link printed on the
do is follow a link printed on the
do is follow a link printed on the bottle and the algorithms start talking
bottle and the algorithms start talking
bottle and the algorithms start talking for them so by combining these two sides
for them so by combining these two sides
for them so by combining these two sides product and consumer if you like left
product and consumer if you like left
product and consumer if you like left brain and right brain what we have
brain and right brain what we have
brain and right brain what we have created are algorithms that learn which
created are algorithms that learn which
created are algorithms that learn which recipes work on which time they learn
recipes work on which time they learn
recipes work on which time they learn which ideas to try in the future on
which ideas to try in the future on
which ideas to try in the future on which to retire
which to retire
which to retire they learn what to make for individuals
they learn what to make for individuals
they learn what to make for individuals and they learn what to make for groups
and they learn what to make for groups
and they learn what to make for groups now I think the real beauty in this
now I think the real beauty in this
now I think the real beauty in this whole thing is that we’ve taken
whole thing is that we’ve taken
whole thing is that we’ve taken something inherently artificial and
something inherently artificial and
something inherently artificial and complex and we’ve brought the whole
complex and we’ve brought the whole
complex and we’ve brought the whole process of creation and mass consumption
process of creation and mass consumption
process of creation and mass consumption back to its core human components there
back to its core human components there
back to its core human components there is a direct visceral connection between
is a direct visceral connection between
is a direct visceral connection between the craftsman and the consumer almost as
the craftsman and the consumer almost as
the craftsman and the consumer almost as if they were in the same room now whilst
if they were in the same room now whilst
if they were in the same room now whilst we want to take and exploit the wisdom
we want to take and exploit the wisdom
we want to take and exploit the wisdom of the crowd it isn’t as simple as
of the crowd it isn’t as simple as
of the crowd it isn’t as simple as averaging and in fact the key complexity
averaging and in fact the key complexity
averaging and in fact the key complexity is being able to interpret what each
is being able to interpret what each
is being able to interpret what each individual says unfortunately we’re not
individual says unfortunately we’re not
individual says unfortunately we’re not all as wise as each other and so we have
all as wise as each other and so we have
all as wise as each other and so we have to be careful whose opinion we take and
to be careful whose opinion we take and
to be careful whose opinion we take and whose we don’t but that’s where AI
whose we don’t but that’s where AI
whose we don’t but that’s where AI really comes in because it learns which
really comes in because it learns which
really comes in because it learns which questions to ask to which people and it
questions to ask to which people and it
questions to ask to which people and it learns how to understand the answers so
learns how to understand the answers so
learns how to understand the answers so when after one of our early beers we the
when after one of our early beers we the
when after one of our early beers we the algorithms ask people whether they like
algorithms ask people whether they like
algorithms ask people whether they like more or less alcohol in the recipe the
more or less alcohol in the recipe the
more or less alcohol in the recipe the vast majority of people said they wanted
vast majority of people said they wanted
vast majority of people said they wanted a stronger beer so we made a stronger
a stronger beer so we made a stronger
a stronger beer so we made a stronger beer and what happens people actually
beer and what happens people actually
beer and what happens people actually liked it less so the algorithms learn an
liked it less so the algorithms learn an
liked it less so the algorithms learn an important lesson
important lesson
important lesson well they learnt there we’re a nation of
well they learnt there we’re a nation of
well they learnt there we’re a nation of alcoholics of course right but by making
alcoholics of course right but by making
alcoholics of course right but by making a mistake and seeing what happens they
a mistake and seeing what happens they
a mistake and seeing what happens they learnt to better interpret people in the
learnt to better interpret people in the
learnt to better interpret people in the future the algorithms aren’t perfect
future the algorithms aren’t perfect
future the algorithms aren’t perfect they do make mistakes but by exploring
they do make mistakes but by exploring
they do make mistakes but by exploring and gathering feedback they learn not to
and gathering feedback they learn not to
and gathering feedback they learn not to make them again they learn by doing they
make them again they learn by doing they
make them again they learn by doing they learn by trying things over and over
learn by trying things over and over
learn by trying things over and over again iterating and changing I believe
again iterating and changing I believe
again iterating and changing I believe that it is in creating a constantly
that it is in creating a constantly
that it is in creating a constantly changing product that the solutions are
changing product that the solutions are
changing product that the solutions are all these problems lie
without change there are no mistakes for
without change there are no mistakes for Rai to learn from no mistakes for us to
Rai to learn from no mistakes for us to
Rai to learn from no mistakes for us to learn from without change
learn from without change
learn from without change we can’t explore the whole universe of
we can’t explore the whole universe of
we can’t explore the whole universe of product possibilities we can’t make
product possibilities we can’t make
product possibilities we can’t make things better and without change we are
things better and without change we are
things better and without change we are not selling the same thing again and
not selling the same thing again and
not selling the same thing again and again and again and actually all sorts
again and again and actually all sorts
again and again and actually all sorts come down to you we go back to
come down to you we go back to
come down to you we go back to advertising instead of innovating so the
advertising instead of innovating so the
advertising instead of innovating so the beer is always changing
beer is always changing
beer is always changing we started with one beer which became
we started with one beer which became
we started with one beer which became four beers and those four beers spawned
four beers and those four beers spawned
four beers and those four beers spawned a further 18 different age iterations
a further 18 different age iterations
a further 18 different age iterations all of them different I was talking to
all of them different I was talking to
all of them different I was talking to some of the other day and I was
some of the other day and I was
some of the other day and I was explaining that we never make the same
explaining that we never make the same
explaining that we never make the same batch twice but if you’d loved one of
batch twice but if you’d loved one of
batch twice but if you’d loved one of these beers then you’re gonna have to go
these beers then you’re gonna have to go
these beers then you’re gonna have to go home and make it yourself and he looked
home and make it yourself and he looked
home and make it yourself and he looked at me like it was crazy
at me like it was crazy
at me like it was crazy what if you through all that discovered
what if you through all that discovered
what if you through all that discovered that there was a perfect bit you
that there was a perfect bit you
that there was a perfect bit you discovered the perfect beer and the
discovered the perfect beer and the
discovered the perfect beer and the answer is simple I don’t believe that we
answer is simple I don’t believe that we
answer is simple I don’t believe that we can make a perfect beer that isn’t to
can make a perfect beer that isn’t to
can make a perfect beer that isn’t to say that we can’t make a perfect beer I
say that we can’t make a perfect beer I
say that we can’t make a perfect beer I don’t believe it exists and that comes
don’t believe it exists and that comes
don’t believe it exists and that comes down to people people want to try new
down to people people want to try new
down to people people want to try new things they’re obsessed with the idea
things they’re obsessed with the idea
things they’re obsessed with the idea that there’s something better out there
that there’s something better out there
that there’s something better out there that I haven’t yet had above all they
that I haven’t yet had above all they
that I haven’t yet had above all they want new experiences so we have to keep
want new experiences so we have to keep
want new experiences so we have to keep on creating it’s all about people and
on creating it’s all about people and
on creating it’s all about people and really all this is about people I
really all this is about people I
really all this is about people I started working in AI because I was
started working in AI because I was
started working in AI because I was interested in people I was interested in
interested in people I was interested in
interested in people I was interested in the way the human brain works how we
the way the human brain works how we
the way the human brain works how we interact with each other I am interested
interact with each other I am interested
interact with each other I am interested in AI not because it can replace us
in AI not because it can replace us
in AI not because it can replace us but because it can bring us closer
but because it can bring us closer
but because it can bring us closer together human creativity is still very
together human creativity is still very
together human creativity is still very much at the heart of this process but
much at the heart of this process but
much at the heart of this process but the crucial difference now is when the
the crucial difference now is when the
the crucial difference now is when the brewer says I have an idea an AI
brewer says I have an idea an AI
brewer says I have an idea an AI responds and says well let’s go and
responds and says well let’s go and
responds and says well let’s go and check it out if it’s a good one and
check it out if it’s a good one and
check it out if it’s a good one and replace brewing with any type of product
replace brewing with any type of product
replace brewing with any type of product innovation you care to imagine by using
innovation you care to imagine by using
innovation you care to imagine by using artificial intelligence we can eradicate
artificial intelligence we can eradicate
artificial intelligence we can eradicate the deep inefficiencies of today
the deep inefficiencies of today
the deep inefficiencies of today this is a road to a future full of new
this is a road to a future full of new
this is a road to a future full of new experiences not just tastes and smells
experiences not just tastes and smells
experiences not just tastes and smells and whilst a few of us may end up
and whilst a few of us may end up
and whilst a few of us may end up getting run over by self-driving cars it
getting run over by self-driving cars it
getting run over by self-driving cars it will be AI that gets us there the Mad
will be AI that gets us there the Mad
will be AI that gets us there the Mad Men can finally be disrupted because we
Men can finally be disrupted because we
Men can finally be disrupted because we have a choice we all know that
have a choice we all know that
have a choice we all know that artificial intelligence is gonna change
artificial intelligence is gonna change
artificial intelligence is gonna change our lives but what is clear now is in
our lives but what is clear now is in
our lives but what is clear now is in terms of the how and the when of change
terms of the how and the when of change
terms of the how and the when of change it will be up to the people to decide
it will be up to the people to decide
it will be up to the people to decide thank you very much
thank you very much
thank you very much [Applause]
”
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