#RSAC PGR-R01. Rise of the Machines. John ELLIS. Co-Founder/Principal Consultant

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1 SESSION ID: PGR-R01 Rise of the Machines John ELLIS Co-Founder/Principal Consultant

2 [~]$ whoami New Zealander (aka kiwi) Started my career in the military 23 years working in information cyber security Worked in banks, telco and hi-tech firms Have been living in Singapore for 11 years Completing my masters in cybersecurity, strategy and diplomacy at the Australian Defence Force Academy (ADFA) Nickname: 北极熊 (Polar Bear) 2

3 "The development of full artificial intelligence could spell the end of the human race. - Stephen Hawking, theoretical physicist, cosmologist, author I don t understand why some people are not concerned Bill Gates, co-founder of Microsoft

4 Artificial Intelligence Robotic Process Automation Machine Learning Algorithms

5 Fourth Industrial Revolution Ai is contributing to a the transformation of society at a rate that is ten times faster and at 300 times the scale, with an estimated impact that is 3000 times of the 1 st Industrial Revolution. - McKinsey Global Institute 5

6 What the analyst say Machine Learning 2-5 years Smart Robots 5-10 years Natural Language 2-5 years Brain Computer Interface 10 years +

7 Applications of Artificial Intelligence Healthcare Accounting & Law Cyber Security Military 8 Finance

8 Wearable monitoring device fast diagnostics improved accuracy Fully automated checkout 30% 70% Labour Substitution Performance Gain Source: McKinsey Autonomous tugs Algorithms recommend diagnosis AI diagnoses

9 Automation, Employment and Productivity 10

10 Ethics of Artificial Intelligence

11 Robots classified as Electronic Persons The move by the EU to classify robots as Electronic persons is a watershed moment and paves the way for new laws and new regulations

12 Areas that can be automated Percentage of time spent on activities that can be automated by adapting currently demonstrated technology SOURCE: US Bureau of Labor Statistics; McKinsey Global Institute analysis 13

13 Will a robot take my job?

14 SOURCE: Oxford Economic Forecasts; Emsi database; US Bureau of Labor Statistics; McKinsey Global Institute analysis Global Impact of Job Automation Employee weighted overall % of activities that can be automated by adapting currently demonstrated technologies

15 Fighting an existential threat?

16 Looking into the heart of Ai s dark secret What s inside the box? Self modifying algorithms who to interrogate? Are we willing to let machines make decisions we don t understand? Algorithmic regulation where and how? 17

17 Kalashnikovs of tomorrow

18 Military Spend in Asia Pacific

19 Three Laws of Robotics 1. A robot may not injure a human being or, through inaction, allow a human being to come to harm 2. A robot must obey the orders given it by human beings except where such orders would conflict with the First Law 3. A robot must protect its own existence as long as such protection does not conflict with the First or Second Laws 1942 Isaac Asimov, Handbook of Robotics, 56th Edition, 2058 AD. 21

20 Machine vs Machine AI Arms Race

21

22 AI fighting Cybercrime

23 Turing test

24 Man vs machine machine wins?

25 What are the threats and trends? Threats Cross-platform autonomous malware (CPAM) AI goal hacking Inference hacking Accurately mimicking user behavior SAI failure yes, this is Skynet! Lines of enquiry, approaches, trends Intent-Based Network Security (IBNS) Empathy neural networks and algorithms Self-defending systems Automation of traditional security operations 27

26 Using AI to get through the data IBM has taught Watson to read through vast quantities of security research. Some 60,000 security-related blog posts are published every month and 10,000 reports come out every year, IBM estimates. The juicy information is in human-readable form, not machine data, Caleb Barlow, vice-president of threat intelligence for IBM Security

27 Where to next? Removing our limits? Source: WEF, BCG analysis 29

28 Preparing for Disruption Automation will enable new forms of competitive advantage Policy makers can accelerate early development and adoption of automation technologies Addressing wages, skills gaps, and labor market mismatches Governance, Risk Management and Compliance of Ai & RPA Law of War implications for Ai & RPA

29 Upgrading your skills 31

30 Recapping our journey Touched on the possibilities and applications of AI, RPA, and ML Outlined some of the benefits and challenges for society will a robot take my job? Surveillance state, Super-intelligent AI (SAI) AI, RPA hacks, and the new era of an AI arms race How we can prepare for this disruption, be a part of it, thrive and succeed in this new era of AI and RPA that is defining our new world 32

31 Thank

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