Whilst doing some client research, I came across a rather intriguing 
article which discusses the 4 waves of AI 
<https://techsauce.co/en/tech-and-biz/four-waves-of-ai-investment-thesis/>... 
(though I'd call them orthogonal directions since not building on each 
other).

   1. Internet - Domain = real-time user digital shadows - UseCase = 
   contextual search
   2. Business - Domain = internal data silos - UseCase = operational 
   efficiencies
   3. Perception - Domain = webcam + datahose (sensors) - UseCase = identity
   4. Automation - Domain = self-contained feedback - UseCase = Robots

The author also briefly discusses the state of US-China frontier in AI 
research and deployment. The point is where can Australia make an impact 
... some thoughts

   - Kaggle - home grown data "gamification" or more precisely 
   crowd-sourcing ... basically takes problems and poses them in a vendor 
   neutral and anonymous fashion for bounties ... whilst the idea and 
   management are local, their customers and users are not so hard to claim 
   it's a pure Aussie play. I wish I could point to more examples of narrow AI 
   breaking out into broader international success ... some I know are 
   embedded into specific machines/sensors so hard to come up with popular 
   examples (Daisee too early to say)
   - AAII & DSTC - whilst attempting to popularise agent based systems, I'd 
   say that it hasn't made a deep consumer impression ... the problem is the 
   chicken-egg situation where you need the underlying system before agents 
   can be designed ... perhaps blockchain and distributed apps might change 
   the current story but too late for DSTC. As usual, the govt has belatedly 
   jumped onto the bandwagon in its Australia 2030 innovation roadmap (and how 
   many of those have been repeated between administrations)
   - autonomous underwater vehicles ... I know WA is working hard but news 
   is quiet ... perhaps someone from Perth can give a better picture
   
In short ... AI has the biggest potential to solve the underpopulation 
problem of Australia (and chatbots can only improve rather pathetic 
customer service) but it requires companies to start investing, if not into 
R&D at least in understanding the potential to reduce the tedious parts of 
life (eg long-distance trucking) and putting in place the datahoses 
(sensors, etc) that enable machine2machine dataflows. As part of digital 
transformation, perhaps govt agencies might make certain data available 
(with removal of identifying features) like traffic cams for AI enabled 
testbeds or geological surveys for smarter cluster analysis for mining. It 
may not have the actual data-scientists but using its existing data silos 
to attract overseas talent to bring about operational efficiencies is only 
a win-win situation.

If SBer have other knowledge of AI-driven startups, perhaps they can show 
kaggle is not just a one-shot wonder.

Lawrence
http://www.linkedin.com/in/drllau

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