Third Wave AI: Changing Industries, Changing the World

Computer-generated digital art of an artificial intelligence showing signs of happiness

With advanced machine learning techniques like deep learning and neural networks, Third Wave AI is focused on context, emotion recognition, and reasoning based on incomplete information. "We're entering a new era of artificial intelligence," says Kai-Fu Lee, AI researcher and Sinovation Ventures in his book AI Superpowers: China, Silicon Valley, and the New World Order, “one where machines can sense, understand, learn, and interact like humans. This Third Wave of AI will fundamentally change our world and lead to an explosion of innovation unlike anything we've seen before."

  • In manufacturing, Third Wave AI can use real-time data from social media or news sources – so-called OSINT – to adjust production and inventory levels on the fly, while Second Wave AI was used to predict demand based on historical sales data.

  • In logistics, Third Wave AI can use advanced robotics to automate sorting and packing tasks in warehouses, while Second Wave AI was used to optimize delivery routes based on traffic and weather.

  • In investment management, Third Wave AI can be used to analyze and fuse large volumes of data globally, such as news articles, earnings reports or videos from open or private sources to extract relevant information and identify and track trends to make tactical investment decisions for better performance, while Second Wave AI was used to detect patterns in financial mass data.

  • In defense, with Third Wave AI it is possible to create vehicles that can operate autonomously, without direct human input. Autonomous drones can use computer vision to identify and track targets, and then use machine learning to make decisions about how to engage those targets.

Overall, Third Wave AI represents a significant advancement in the capabilities of AI systems. But as we navigate this uncharted territory, we must also grapple with the ethical and social considerations that come with increasingly intelligent machines. In an op-ed for the New York Times, Kai-Fu Lee said: "AI will become the most important engine of innovation in human history. But we need to ensure that it is guided by our values and principles, and that it serves the greater good. This requires a global conversation and collaboration to develop ethical frameworks and best practices for the development and use of AI."

Governments, organizations, and industry groups are taking action to ensure that AI is developed and used in a responsible and ethical manner.
This includes:

  • introducing regulations to promote transparency and accountability in AI systems,
  • developing ethical guidelines for AI, and
  • working to develop international frameworks for the development and use of AI.

Standards organizations such as VDE in Germany and IEEE globally have published standards for the development and use of AI, while education and awareness initiatives are working to raise awareness about the ethical and legal implications of AI. However, the industry’s mindset only slowly changes, and ethical washings looms. Who would have thought that.