strength of the society can come out and people had not allowed to use cell phones at all. and they had had their first cell phones. and after we were there they lowered the price from $5000 to $5. >> if i didn't chime in on the military side of it, we would interview a group that had been on the process of researching this book and we don't need a

new technology developed but for the cycles to change that we can bring this to keep track of where colleagues are they had this tablet attached and this lasted an hour and a half in the second issue is we talk about the military-industrial complex and we have a real challenge in the sense that cybersecurity is not achieved without agility.

what are we going to get to a point when providing cyberassistance to countries that are being attacked by countries that are not just a physical neighbors but advocates, this is critical. >> so what should we do about upcoming? >> they are trying to organize against western targets. is there a military strategy there, i don't know, but that needs to be in the conversation. >> is interesting is what the russians you have this one fighter problem and 15,000 that are coming in the civil war in syria in one side or the other. in the third upcoming from this as well. so it really is a global problem and they are sending this and

sending software engineers to come fight on behalf of ovitz. electronic army. sometimes they are fighting from this as well. >> presumably from iran? >> just. >> so kudos to the economy. one of the things that happens with the advent of this technology and efficiency is a real crisis over the world particularly for the youth. and we want to have that and i know you travel probably about the impact and technology has on jobs and we are speaking for the

last decade or so and it's that are documented and mainly they are done in this area. and it turned out to be such a category. they are actually investing in the head of hiring. the people who win tend to beat the incumbent in the middle aged and they tend to be the elites.

if you model about going for coming have a significant problem and there are economists to believe that we don't have a jobless problem. but it's a transfer of middle-class high-paying jobs to service jobs. when we think of this as the uber driver and a talented person that is working a normal job and now they have contingent employment which is a service job in plenty of examples of that. most economic thought says that jobs will be less predictable especially for young people in more contingent in this way. there's a separate set of public policy issues around not and we have effectively wars and in

talking this is something i have been working on it is the to fighting problem and it's our problem too. you have to fix this but you have to have more educated workforce and we gave a very similar speech. i know that mark agrees with me on these things. especially focusing on immigration because we try to replace this bid because they tend to form companies to allow

immigration and another one is connectivity to build global brands. we are incumbent can't block new entrants. especially where the regulators won't kill him. so was not kind of obvious? most industries are highly regulated without passing judgment and a lot of these regulations tend to favor the incumbents or the structural incumbents. you have to fix that. i'm sure that elicited his debut is part of it. >> i think that there is no doubt.

and so here you are and imagine that we are the equivalent and having a conversation about china and 20 her spirit looking at this, and we look at the automation trends and we realize that a couple hundred million people's jobs are in these manufacturing sites are going to be replaced i robot. >> there also benefits and i am going to read one of my favorite passages. there will be no alarm clock in your wake-up routine, not in the traditional sense. instead, listen to this. we will be roused by the aroma of freshly brewed coffee with light entering your room's curtains open automatically. it's my favorite part. and by a gentle back massage and

inside your mattress there is a sensor that monitors your weeping rhythms, determining precisely part of this. so your apartment is an electronic orchestra and you are the conductor. and et cetera. so i need this. all of this.

and i feel quite confident. >> so is google working on this? it seems like we will have several together. >> her daughter said that we intend to that scenario. >> it's available in every form of analysis today. you can have a cycle of sleep, the book goes on to describe talking to the equivalent of the law and it does not come you don't.

the reason is with your permission and has been figured out that your bosses would begin, no one is going to call you, will use that service. yes, you bet. >> all those years i worked for you, someone could have told me. so how realistic are some of these changes in a. >> certainly the physical things. the timing and so forth are real. and i'm happy to say that i think facebook is working on similar areas and google is getting to work very well. and it says things like how long it will take you to get to work and how is the traffic going.

and so this is also part of. >> another example and we have this is the optimal traffic routing. it's example after temple of human intelligence crowds were as applied to some kind of physical map or infrastructure that helps to make your life better. the kinds of things will seem pretty straightforward in one form or another. and toured was one month ago,

three weeks ago. little bit more than a month. and you both say that parents are going to have the privacy and security talked even before the lexmark talk with their kids. >> yes, i'm going to. >> okay, you are going to. and obviously this is further in your path. >> he hasn't quite filtered out who runs the household. but the key question is, are you the kind of parent we want your baby to really stand out in the book we talk about this. so here she shows up for the search results. [laughter] >> if you're one of the people to get along, you're given the generic

name. so if you know if you're going to be a standout or not. >> is up on the couch that night. >> but why don't you like this? >> it's a top result. [laughter] >> at the german name. >> [inaudible] >> at the dealbreaker name. >> she is slowly coming around. spirit she is not at all. she's being nice. so let me give you an example of this. and let me also give a more serious threat to this.

what are the things as we are going to create an e-mail address for our daughter. and hand over her password. >> she's behind, before she starts. >> she's ambitious, she will catch up. so there is a sort of interesting and more serious aspect to this. >> i think he's very serious. >> i also had the idea that i don't really want unsupervised parties at our apartment.

and eric told me that i will be like the losing father of the year. >> they are not going to come to your house. >> no, they are not. but there is a serious aspect it's about your child posing things that could hurt your chance of getting a job. saudi arabia is out. you talk to the appearance and their nightmare scenario is their daughter is 10 years old was chatting with someone of the opposite sentencing things that maybe she should not create the because she's tender soul, it's not an issue. but what happens when the exit she said which live in data permanents follow her around like a digital scarlet letter till someone chooses to take it upon this what the contents.

there's a concern with data permanents that reputational damage might be the virtual version of this. >> on identity, on your reputation. >> we argue that it will become the all important and that people will obsess about these kinds of questions. and here it likes to say that it never quite catches with physical maturity which is never quite as good as a mature adult as teenagers and we all understand that. so imagine a 16 or 17-year-old antics in the same person is looking for a job and is it being used against the candidates are not absolute. so does that seem right to you? it doesn't seem right to me and

in our system for hundreds of years it has been true that if you are below 18 and you commit a crime that is within some balance you can actually go to a judge and have the record be removed from the court until you were never convicted of a crime and it is obviously impossible today given the online world. is that fair? i'm not so sure. >> the last question i will ask, and an important one to me. another we will take questions from audiences. it is on women. obviously something that i am deeply compassionate about. i think the benefits of technology don't equally encourage men and women today. women are nearly 25% less likely to be online and part of that is due to not having the capital that men have to buy technology

and part of it is due to the education. women are much more likely to be illiterate because periods are putting their boys in schools and less able to use technology. a report was put out, if reasons were given for 6 million women, it will not have is the same rate as men, the gdp would raise i 13 or 18 million. we know that investments pay off for the economy and we know that it is for the children and their help in their own education. so it's a very good cycle. but we are caught in a non-virtuous cycle and always, including technology. so how do you think this changes and how do we make sure people understand that this technology has to equally be in the hands of women.

>> civic activism come you can talk about any issue in the entire world. it's a women's issue by virtue and what i would say is that i think that can make this in a way that stronger and so there is an observation that i have made and many of my friends i've made which is when women in the middle east could chance of school they outperform the men accidentally.

a friend of mine told me something very interesting and may or may not be true. she's of the problem we have in way right now is we need more women's empowerment. if we gain this out now that women are going to school, 80% of the men. >> about 10 years ago you talked about micro-lending. >> it's not too hard to see. if you just figure out a way and by the way the prices on the low price on an android phone in

china is about $100 or these are powerful smartphones and these are more or less correlated. so you can imagine is within three to five years which are price points within the situation people can use of smart phones. imagine that it's loaded with information and in a small number of years by giving you this, solving the educational problem with childhood iq and so forth. talking to women about taking care of their kids, helping them do all of that. you can have a huge change. including hundreds of millions of people that are empowered. and i just can't imagine.

>> so connecting. if we have the best achievement and so forth. we've visited one of these individuals. >> there's a story that i can't resist telling and we met a group of women who have been attacked by the taliban. without being ridiculed and etc. we are talking and asking them how we were able to be optimistic. one of them smiles and they all live in this house together and they are training in various technical skills and learning how to do this online.

one woman said to us that she loves the internet because online her scars are invisible to the so the internet is giving her a second chance at life or if you think that's amazing, this woman then midiman online for she started chatting with will eventually she met with real-life and now they are married. and i can't think of a group of women who are more disenfranchised and deleted in vietnam than victims. >> we are we're going to now take questions. yes? >> okay, how will issues related to net neutrality affect easy and quick access? what are some proposed solutions? >> in the developing world, most

of the telecoms are still near monopoly providers. you're not going to get really good access until you have competition in those things and it costs more than it does in the united states and if you divide that by the gdp. >> yes. >> the bigger problem, i think that we can solve the small farm problem because it is a consumer product and an even bigger problem is going to be given the quality bandwidth of these countries. >> you do not have common carrier laws apply. a combination of public dresher said the internet is not used to favor a content. and it remains the same if you

only have one provider and you don't have another choice, that would be an example of not having announced competition. >> can you comment on digital currencies and the effect on economies. >> he was just about to buy some. >> the big defenders are saying if one bank that holds dollars goes out of business, it's not the dollars but the one bank might call the federal reserve. >> i am well aware of that. >> 6%.

>> so i think the questions revolve around if it is here to stay. -stay.econd question is howhow and the second question is how long will unregulated currencies last. >> she actually works and is the expert on this. >> when is the u.s. going to step in and regulate this? >> i don't know. there is a good article and i forget who wrote it. and they explained bitcoins as apple's preview gimme whatever for the apple and now i own the apple and the story was written before this weekend last weekend >> i think you study the depression and it's incredibly

useful for many applications. >> there is a question of how secure this crypto currency is. but it's the digital wallets that support this system and it's a whole other problem. and the canadians tried their hand at something called this which was pegged at to this. and that ultimately shut it down because these are part of it. if they aren't secure to support this currency ecosystem, we are

just missing this challenge. and i was shocked at the number -- the kinds of attacks that they faced. especially from a lot of non-us countries. there's an awful lot of people trying to break into them and i think that that will be permanent no matter what. >> how do you see human interaction involving a world that is increasingly automated. it seems the more connected we become the more distantly become living in the physical world. it's interesting because this is something you wrote about in your book. in your book you wrote that there are two worlds at once. a virtual world where we experience a connectivity and a physical world are we still have to contend with geography and the good and bad sides of human nature and the book explores the way of the virtual world and the physical world interacting. what you said in this questioning is how do you see

one impact or the other. >> i'm working on turning off my phone during dinner. >> hours are going? >> you're never going to do it. what percentage are you doing? >> after five minutes of not having devices, i thought i saw this bug is starting to twitch and this is a medical problem. >> the good news is that we have the amazing interactive law.

and so it is important to know where the off button is and know how to turn it off or even working on dinner. and i think the deeper part is what is it doing. >> especially with the your daughter. >> yes, especially with her. >> because traditional record will be enough. >> she will be 10,000 e-mails behind. >> sometimes he'd decided it's not okay to post sonograms before birth. >> a birth, he laughed, a smile. but the point is what this means is we will hold up, saying can i

post this picture of io. >> she might say yes. >> good luck. >> parenting is quite different than what you think it will be and there's nothing better than talking to someone who doesn't have kids yet. this is how it's all going to work or it smacked his first response was resist the urge to think they do the first-person on earth, don't think you're the first one are to have a child. and so we will be better known than people interacting with us and what it means is the implications of what we do online are probably a greater consequence in determining our identity. >> the way i think about this as you start off and you have complete control of your

identity and as you age the percentage decreases. so by the time your daughter, think about the percentage and so forth in the description of her and all the things that would have been compared to who she really is. and we haven't figured this out yet. >> it's not just what we say, it's what others say and post about us. so we basically are one unit in an entourage of people who shaping who we are. >> is interesting. and that brings up another thing i know that we are all working on, which is how we think about the responsibilities that companies have for privacy and security for the google and facebook and everything we do and also the increasingly american element. and you know this better than anyone where the countries are increasingly having voice or data localization for what has been a global system for the

control of data, which i think ties to the identity of their citizens. it tries to some of the identity you have in the book. >> we have $12 on amazon. >> easily. multiple times. each carry around. >> thank you. >> notice the cover that i had done.

>> the revelation that a number our relations with a bunch of countries. >> yes, they did. >> cheryl and i have spent lots of time dealing with the consequences and the perception of nsa activities and so forth. so this is a good example of what will happen in the future. no one knows how to solve this problem and an example is a couple of weeks ago. angela merkel indicated she would be in favor of having data localization within germany, which sounds like a great political thing but it breaks the internet and is a very bad idea for the german citizens and we are facing similar situations around the world in brazil for both companies and so forth. i don't think we have figured out all of the consequences of that in the government cents.

>> there is a lack of the women being situated in computer science. in the 1980s when we were getting 30% to 35% of the american computer science degrees, were down to 13%. we believe that this is important, if you understand that technology jobs are important to future employment and they are better paid, you have to worry about polity and there's lots worry about with women not being in computer science. google to eric's credit and others credit.

absolutely forerunner of this. refocus on women in computer science and routing. when we have 13%, it's very hard to get women through it. so how do you think about this for google and in terms of encouragement over the world? >> you can understand it is an escalation that people follow. that women get off that escalator at various points and we need to address that. this is a real national crisis for america. and there are plenty of fields where we have figured this out. includes biology where the majority of scientists are limited. so it's possible to do this.

>> two years ago in silicone valley. you don't notice it always, but eric does. you're pretty much deciding what your kids are doing for the summer. and it is encouragement that we

have to be part of. it's the impact of the future they can't really be part of this. how are you going to keep up for your daughter? >> well, -- >> four weeks from now when you have a daughter. >> my view is to start early. you hear about goldilocks and others that people are working to try to figure out how are there ways to create opportunities for young girls to get excited and there's clearly not enough examples of this and you can't wait until your child gets to college and is deciding this. if you don't start earlier than lose that investment. >> there may be a solution knocker argot work, but as we accept the stereotype. the opportunities for the kinds

of things that it appears that women care a lot about to build massive new companies that are clearly going to be there. so it's possible that we will solve this problem by just moving up. when i started there were no petitions at all and nothing was visual and there was no interaction and it was very dirty, speaking as a local nerd. >> other women with other technical skills as well.

one of the google idea of goals, it was to end censorship. we are going to end censorship. ..

>> and the second has to do with trust you don't know the origin of a particular proxy or tool. so we decided to leverage the engineers inside and outside the company are there tools we can build to help address critical problems? and other means to the filtering challenge of the repressive regime and we are well underway. >> it is fair to say the life of autocratic dictators will get worse because of the apartment. >> it is great but sloping down. >> and what's good while you

had it. >> we always had geopolitical problems the empowerment of the individual was a new problem for them. they cannot shut the internet down. we talk about this. that the citizens would be empowered. the china, as you know, has been dusted one form or another over a long time. there are new services in china with the two most popular examples of a link schaede with a series of messages but it could be very large. by the way you could do pictures and so forth it is heavily censored. so what happens when you have a clever idea and every person in this room since it

to all the friends and 10 million people think this is a great idea? even with the repressive regime you have got to fear the results of the power of your citizens. >> there is time for one last question. >> what are you most pessimistic and what makes you the most optimistic? in terms of the future? >> the thing that i am most pessimistic about what we've talked about before, we like to think technology is a silver bullet but there are still mass killings in huge porsche's living in abject poverty and i wish the technology could visibly solve those challenges with

more connectivity does not solve the problems that there are limits. >> in some respects it could exacerbate but the thing that i am most optimistic about is basically we will experience the mobile psittacine even thinking about china as the most populous repressive society 1 billion people will come on line one time in one country and will never happen again. imagine how to know that ability to know what is happening in this city to have access to the world's information with the opportunity to make decisions is game changing. there are challenges but the notion they will be more empowered with choices and options at any other time in history has to be a good benefit.

>> wed restarted the book we did not know how we would use the developing world's having worked on this three years we're optimistic about the overall benefits especially the developing world. there are two areas i am worried about. the first it is a race to we demilitarized there are a number of possible scenarios. and it we don't understand we have to think about that. the second one steve jobs

question in the race between computers and humans. [laughter] the cubans have to win. [laughter] -- the schuman's. [laughter] >> the reason the humans have to win is they have too shy and in the human system has to be updated. this is not happening fast enough. the second one half arguing how we would politically and culturally solve this. please join me to think these great minds the underwriters.

[applause] >> thank you so much. >> this has been the best venue in various formats it is such a great institution the legacy will last far longer. [applause] >> i appreciate that. thank you so much. cynic at eric schmidt and jared cohen has been interviewed many times but i think we had a great moderator today. i hope you enjoyed. [applause] the book goes on sale

paperback tomorrow with a completely different after word does he think about these issues provide holders take advantage of that.

from the stevens institute of technology in hoboken new jersey, this is an hour. [applause] >> thank you. i want to thank the deans of stevens to helping to host this and to john in particular for both organizing it and the kind introduction. so i am old enough that i

remember the very first time i ever saw and then used a computer. my dad took me to a science center in north carolina at the age of seven where he learned how to program this amazing device to design a smiley face out of a series of letter m's and then i printed out on one of those old-school principles with the perforated paper on the side that was my first experience with computers. since then the centrality of computers to my life but all our lives is it's almost impossible without them. for example we live in a world where every year over 40 trillion e-mails are sent. fi the fi the fi thfi in 1991. there is now more than 30 trillion individual webpages out there.

moreover, the internet is no longer about compiling and sharing information. it's also emerging to have an impact on the world beyond the on line through the so-called internet of things. for example cisco estimates that over the next five re will be more than 40 billion internet-enabled devices coming on line, everything from refrigerators to cars to thermostats. google just paid a couple million dollars to the smart thermostat is not too smart power grids all living together. what that means is that domains ranged from communication, commerce to critical infrastructure to conflicts. 98% of the u.s. mattel incorporated military to medications run over the civilian owned and operated internet. all of these domains are increasingly cyberdependent if we live in the digital age.

with this relatively short history of computers in the network's that they are linked into i think we have reached a turning point or at least a defining point. just as our dependence on this as growing the risk side is to man. you can see this in a lot of different ways. one would be the astounding numbers. for example every single second nine new pieces of malware, software designed to cause computer problems are discovered every second. nine every second. 97% of fortune 500 companies know that they have been hacked and the other 3% are willing to admit it to themselves. on the military side over 100 different nations have created some kind of cybermilitary command, a unit designed to fight wars in the space and beyond. indeed the very first pew poll of 2014 took a survey of americans about what they have

feared most and it found that they feared cyberattacks more than iranian nuclear weapons, north korea and nuclear weapons, the rise of china, russia or climate change. what this means is the spheres of coalesced into a booming industry. one of the fastest growing bureaucracies where they were talking about the national level, the state level or the local level is constantly seen growth in the cybersecurity bureaucracies. they also mean for all the hope and promise of the digital age we also have to admit we are living through an air of what i would call cyber insecurity. it's at this point of the talk i try to do something conference today that maybe it will help us make that point. the challenge kindly introduced before of how do you write on the seemingly technical topic and make it accessible and interesting? you also do the same when you're

giving a speech. what kinds of visuals can you do when you're talking about the space of zeros and ones of software so what i have done is put together what i believe is a fundamental collection that helps make the point. it's my choices for the best and worst examples of cyberwar art. so it's going to play for you and the point -- i'm not going to speak directly. is going to play behind me. one is to visually tried home that story of cyber insecurity that's out there. another is the fact that there have been studies that have found people are 60% more likely to retain what you are saying in a speech if they are looking at something at the same time. it acts he doesn't have to link to what the person is saying. it's one of those weird ways that are human brain works. we need to recognize the human side of this and all the strange foibles that we bring to this so

hopefully the technology will work for us and we haven't been hacked in the interim. here we go. to move on why a book about cybersecurity and cyberwar and why now? for me, it's best encapsulated by two quotes. the first is from president obama. he declared that cybersecurity risks posed quote a most serious economic and national security challenges of the 21st century the second quote is from a former cia director who said quote rarely has something been so important and so talked about with less and less clarity and less apparent understanding. so that cross between something that is in front of me and important but less and less understanding again you can see it in all sorts of different ways and all sorts of different fields. for example 70% of business executives, and not 70% of cto

circe s. oz but executives in general have made some kind of cybersecurity decision for their company despite the fact that no major business management program teaches it as part of the normal responsibilities. that same gap happens at the schools we teach our journalists, are lawyers, our diplomats and even folks in the military. the book is also filled with all sorts of strange funny but in a certain way kind of sad anecdotes that carry this home particularly in the senior leadership. for example the former secretary of homeland security, the civilian agency and the u.s. in charge of cybersecurity. she talked to us about how she hadn't used e-mail and in fact had and used media for over a decade not because she didn't think it was secure but because she just didn't think it was useful.

for this supreme court justice who talked about how they hadn't gotten around to e-mail. that was a quote. they will will eventually but now again in the upcoming year they will decide cases that will lead to everything from net neutrality to the constitutionality of some of the nsa activities but in their own world they just haven't got around to it. this is an just an american problem. we saw the same thing in meetings with officials with china great written france uae. for example the lead civilian official of the cybersecurity czar in australia had never even heard of a critical technology in the space. the point is you have this gap among people with great responsibility. the result is that cybersecurity is an issue that is as crucial at a personal level to areas

that you care about from your bank account to your personal privacy to its shaping the future of world politics itself and in turn issues in world politics are connecting back to the personal level when you look at questions of privacy like the snowden affair. but it's been treated as a domain only for what i generally called it crowd, the i.t. folks. the problem, the challenge is that the technical community understands the workings of the hardware and the software but it doesn't deal well with the human side, all the ways that it ripples out dionne. often these issues are looked after a specific lens and fail to appreciate some of the ripple effects of the other worlds. so the dangers of this stovepipe in this disconnect are diverse. each of us in whatever role we play in life again whether in our professional role our

business or organization our role as citizens in what we think about political topics to how to protect ourselves and our family on line, we all make decisions, cybersecurity decisions that shaped the future of the on line world but also the real world. but we often do so without proper tools. basic terms and essential concepts that define both what is possible but even more so what is probable, what is right and wrong that are being missed or even worse, distorted. the past myth and future hi bob and weave together obscure and what actually happened with where we are right now in reality with where we are headed to next. so you have some threats that are overblown that we have over overreacted to and other real threats that are ignored. for example i'm someone who loves history and it absolutely

pains me when i hear, and this has been done by everything from senators to white house officials to generals to news columnist saying things like cyber weapons are just like the wmd and this is just like a cold war. this is a cybercold war. you see the terminology all the time. if you know both your history and your cyber side you quickly realize that the parallel is not the one they think they are making. there is any parallel to the cold war period it's early days when we did well understand the technology itself but even more so the political dynamics that it was driving in that period of history woman took the real world versions of.or strangelove seriously. that is parallel to today. what are some of the manifestations that have come out of this? one is that we too often lumped together unlike things simply because they involve zeros and

ones, because they involve the internet. for example the u.s. general who is in command of the military cybercommand and simultaneously wearing the hat as director of the nsa which we would not see happen in other fields but we think it's okay here, he testified to congress quote every day america's armed forces face millions of cyberattacks and quote. but to get those numbers he was combining everything from unmotivated probes and scans that never tried to internet works to tip attempts to carry out pranks and attempts to carry out clinical protest to attempts to carry out economic espionage ,-com,-com ma diplomatic espionage, national security espionage altogether but none of those millions of attacks for were what his audience in that

congressional briefing room in the wider bullard -- body politic thought when he said attempts at a digital pearl harbor or cyber 9/11. for example digital pearl harbor and cyber 9/11 have not been used in a series of government speeches that have been reported in the media over a half million times. essentially what happens when people are talking about cyberattacks as they are bundling together these various things simply because they involve the internet. and its related technology. the parallel with a lot like say a group of teenagers with firecrackers political protesters in the street with the smoke bomb,