Monday, September 27, 2021

Intangibles of Wealth

The central event of the twentieth century is the overthrow of matter. In technology, economics, and the politics of nations, wealth in the form of physical resources is steadily declining in value and significance. The powers of mind are everywhere ascendant over the brute force of things.............George Gilder

Our economies are getting richer despite using less physical material. Aluminium drinks cans, declined in weight six-fold between 1996 and 2011. A modern mobile phone is smaller lighter and more powerful than 1980s handset. The blockchain crypto currency is being adopted as a store of value over traditional Fiat money

In business, 2011 was the first time for decades that the world’s largest company was not an oil company. By 2016, six firms based on digital technologies – Apple, Tencent, Alphabet, Microsoft, Amazon and Facebook – were among the top ten largest on earth.

The breakthroughs in solar and wind power ridding us of the shackles of barrels of oil and tons of coal

Tesla, the electric car company managed to reduce the amount of cobalt, a distressing mineral to acquire, in its batteries by about 60% between 2012 and 2018.

Rather than building a new car, we build a digital model of a new car and run computational simulations of the new car through the power of AI. Less cost and less energy-intensive 

AI also enables researchers to expand quickly by analyzing vast data sources, many diseases and treatments in order to encompass the complexity of biology. One reason for the early vaccine breakthrough for Covid19

AI is not a single technology or product, but rather a set of techniques, mathematical models and algorithms with the ability to extract insights from large datasets, identify patterns and predict the probabilities of potential outcomes of complex, multivariate situations. 

AI is often confused with automation, but the two are distinct but related: automated systems perform repetitive tasks following a programmed set of rules, while AI identifies patterns and insights in data and “learns” to do this more accurately and effectively over time.

AI can also be classified by the forms of input data: audio, speech, images, videos, data gained from sensors, data collected manually or robotically.

In summation; the value of your product is not in its tangible heft, rather it is in the intangibles, the know-how, the design, the engineering, the specification and the brand.

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