. >> guest: a.i. is in early stages. frankly, it's kind of like what think about one of our main goals is freedom to innovate. so when we think about ai, it's important that wet get our arms around and it learn more. what educating members of congress at the federal level, state and local level so they have an understanding and get to see how a.i. can make a difference. >> host: recently net neutrality has been in the news. what's microsoft's position? >> guest: we like what is taking displays where the laws are as a result of what took place with the -- under chairman wheeler at the fcc. we're pro and for net neutrality. >> host: it's going away as title 2 function. >> guest: yes, and we have concerns as well as many other in the industry you'll see a lot of different associations that tech companies are part of to focus on that area. we plan to educate as well. >> host: privacy issues are in the news. where is microsoft at. >> guest: striking the right balance. in some cases we look at lawful access issues, making sure

a.i., that is artificial intelligence that shows something like the whole range of the abilities of the human mind. increasingly, these expert systems dial a eyes aree developed through programming techniques that allow them any fact to teach himself, which may suggest the possibility of developing a far more wide-ranging intellectual ability at some point in the future and i think not a very distant point. in short, given the rapid rates of technological development in the longer-term it may as well be that an effort to create an artificial humanlike mind is not a fools errand and already it could be matched with a virtual body, and on-screen body that under limited circumstances might be mistaken for human and an onscreen encounter. in the not distant future, i'm confident that these avatars will become yet more convincingo so talking to one of them will be like talking to someone you are scraping with. real embodiment i think it's further off than many of those working on the field seem

it's an a.i. that is taking orders for your phone pharmacy, providing customer service, correcting your spelling, finding restaurants restaurantse times. a.i. is already legion and looks to be growing more sew. the big tech companies are busy gobbling up smaller promising a.i. develops companies. i'm told that some of these successes have been won by abandoning the turing behavioral definition of discuresive and conversational artificial intelligence, and yet there is a notorious problem in this field, nicely summarized in an interview with yale ethicist wendall wallace. i'm quoting hum now. it is now become a bit more confusing what the term "a.i." actually does and doesn't mean. largely because every time a goal is reached, such as beating a human at chess, the bar gets raised. somebody says, well, that wasn't really artificial intelligence. in the way that it it beat the human at test, in this case, gary kasparov because it didn't really play the way a human chess player would play. insure thei

the good news, it is becoming a.i. is a great help to scientists, we're seeing that system that can kind of learn about the structure of molecules and ones.te new i read about research last year where scientist could go to a program and say, i want that is halfway would usepirin and it chemistry to say, we could try this. t will accelerate development of new medicines. the value is that -- it is not news, it is reality that i assume that e can everyone is going to agree with what these systems come up with. so, just because i create a piece of software that analyzes of information and says, look, this is the way we should nterpret it, you know, human nature being what it is, i'm sure that will be plenty of so, you sagree and know, ending debate about that is on us, not the computer, see what i mean? host: ringwood, new jersey, watching on the line for republicans, you're on the air. caller: yes, thank you for my call. i'm an accounting instructor, lso cpa, i've been in accounting instructor for 20 years at a state univ

because it was composed entirely using a.i. or artificial intelligence. created lyrics, but she also has certain specifications that she let a.i. run with to come up with the composition for this song. we were all a little fascinated by it, right? >> very much so. >> so unique. to tell us more about this song, the entire album being produced with a.i. she's with us via skype. are people surprised when you tell them? >> the main feedback is they couldn't believe an algorithm could create music. >> could you describe for the layperson how artificial intelligence created this music? >> sure. so with amper, the human puts in certain inputs like bpm, instrumentation you want to be included, the mood, the genre. it's actually pretty simple. you can change the key. you can change the instrumentation. >> how does that make you feel? the way technology moves. we could have a.i. that writes songs and sings them too. >> very conflicted. on one side i get excited about the new tools to play with. on the other hand, it is threatening. the creative vision of a human, w

a look at where a.i. stands now. >> and this is as close as you'll ever want to get to being inside the mouth of a shark. at at&t, we believe in access. the opportunity for everyone to explore a digital world. connecting with the things that matter most. and because nothing keeps us more connected than the internet, we've created access from at&t. california households with at least one resident who receives snap or ssi benefits may qualify for home internet at a discounted rate of $10 a month. no commitment, deposit, or installation fee. visit att.com/accessnow to learn more. starting the month with a record high.. as it closes in on the 22 thousand mark. the dow closed up about 73 points. the nasdaq up nearly >>> the dow starting the month with a record high as it closes into the 22 south and mark. the dow closed up 37 points. the nasdaq got nearly 15 and the s&p raised 6. while fans may be waiting for the release of the iphone 8, they are still hitting those stores. apple sold 41 million iphones during

what about a.i. in the workplace , and as you were talking, showing our viewers an image of a robot making pizza. i mean, how do we know what jobs will be replaced by artificial intelligence? what are the numbers saying? tom: great to bring up the numbers. right now, the numbers are not suggesting the machines taking jobs away from people. this is actually a point of argument, among economists and business people who think about this. we are here -- we are seeing the technology get more powerful and you can certainly make the argument that that means we can replace people with machines. on the other hand, if that was starting to happen, you would expect businesses to be becoming more productive, because they could do more with technology, and the economic figures really do not show that. if you look to the past, there are examples where bringing in machines to directly replace people, does not actually reduce employment and a good example here is the atm. as atm directly replace people sitting behind

a.i. and machine learning can be scary at the same time. it's going to take a generation of responsible thinking youth to move this in the right direction. that being said, stem now becomes imperative in a background and absolutely up to k-12. you need that foundational understanding to be able to take these fields into wherever they're going to go, which i don't think we can even imagine what that looks like today. >> i find the question interesting, because when you talk about how we're advancing technology, all i see is opportunity. so i think for cybersecurity field, security is ever and increasingly more important and innovative ways to do so. the way we have done security the last 20, 30 years likely is not the way we need to do security into the future. so let's figure that out and let's be a part of that and ride along with this change. >> one of the things taking forward is cybersecurity as an opportunity within that context for some jobs disappear, the potential to build new careers in this space. and that -- one of the real oppor

a.i. is a prediction. and it takes data and makes good conclusions.ees millions pictures of benign or malignant tumors but doesn't have the ability to distinctish but just processing data. scarlett: that was the c.e.o. of roboglobal. what you need to know for next week. this is bloomberg. ♪ julie: don't miss this, july meeting on wednesday. >> and nafta renegotiations starting on wednesday. wal-mart reports second-quarter earnings on wednesday. have a great evening and great weekend. this is bloomberg. ♪ got you outnumbered. the dinosaurs' extinction... don't listen to them. not appropriate. now i'm mashing these potatoes with my stick of butter... why don't you sit over here. find your awesome with the xfinity stream app. included with xfinity tv. more to stream to every screen. alisa: i am alisa parenti in washington and you are watching "bloomberg technology." is not backing down in the world words with north korea. the double down on his warning to kim jong-un in new jersey northsaying the new korean leader will regret it if he moves on guam or an

it's the only button that works anyway. >> they can override the a.i. >> you didn't watch "24" did yous football about to become a dying sport in america? that's a leading question. not as many kids are playing it anymore. that's next on "the five." david. what's going on? oh hey! ♪ that's it? yeah. ♪ everybody two seconds! ♪ "dear sebastian, after careful consideration of your application, it is with great pleasure that we offer our congratulations on your acceptance..." through the tuition assistance program, every day mcdonald's helps more people go to college. it's part of our commitment to being america's best first job. ♪ can make anyone slow downt and pull up a seat to the table. that's why she takes the time to season her turkey to perfection, and make stuffing from scratch. so that you can spend time on what really matters. marie callender's. it's time to savor. ♪ >> to the delight of football fans everywhere, football season is days away but a surprising stat shows the popularity may be in decline. according to the sports and fitness industry association, youth participation

elon musk hasn't been shy about his own a.i.isruption. robots will be able to do everything better than us. >> reporter: now, musk and ceo mike zuckerberg are in a public debate. >> i'm optimistic. those naysayers trying to drum up doomsday scenarios, i don't understand it. >> reporter: a.i. has shown promise. british researchers saying it can predict hart attacks better than doctors. >> there's a question whether a.i. will replace humans or improve humans. >> reporter: did you catch that, by the way? people are more concerned about a.i. than zombies. facebook, declining to comment. but this brave, new world of artificial intelligence is becoming a reality. >> c3po, thanks so much. >> this creeps me out. >> that's a fascinating event, between elon musk, who says it's the apocalypse. mark zuckerberg who says pump the breaks. >> what were they talking about? >> we'll put you in the elon musk camp. >> thank you. >>> coming up, something that will start a debate at your dinner table. is there a right and a wrong way to build a chees

it's, recently i just had a speech in amsterdam about ten days ago for a bunch of a.i. experts, and i wanted to come up with something that's a vivid example. . >> >> and tune make that precise calculation. the machines will never give you the right advice. and then to make the most efficient decision. and beyond that extreme situation and if you want to buy something but with a budget that is too expensive. and then you can add this little thing. and then to combine them with a decision end of that 20 or 25 years ago i am sure the grandchildren will think they were driving cars? the greatest cause of death. is now that i think about it will happen. >> it is happening. >> we have to know what we want to do. and it's about saving jobs for our because that flows down the cycle. because before any technology would create jobs you will start a new cycle also with new sustainable jobs. we have to take care of our people especially my age or older to find out if there is enough opportunities and then try a to slow this down >> you are listening to the commonwealth club we hav

aur customers to do machine learning and deep learning using einstein and einstein is sales force's a.iform that is the jet stream -- the next generation of products it makes them have the ability to make much starter decisions about their business each day, and you can see that with the customer that you mentioned, airbus, where we signed a very large agreement this quart tore help them to take all the customer and machine data that they have and make much smarter decisions with it. >> what was the largest order you nailed down this quarter >> well, jim, that company and that customer has asked us not to name them, hike many of our customers. i can tell you it was one of the largest automobile manufacturers in the world, signed a wall-to-wall agreement with us, in sales and services and marketing and commerce very, very exciting. another great company that i'm super excited about is louis vitton we've been talking about the great services we've been doing for them for automating their retail stores and helping them to get connected with their customers. now you probably saw they launch

absolutely being able to understand the math and science behind what makes machine learning and a.i.ove. this is higher-level thinking that will be necessary to steer this in a good direction, right? if we're cyber professionals in this room, we sort of think about the risks involved in some of this, and a.i. and machine learning can be scary at the same time. so it's going to take a generation of responsible thinking youth to move this in the right direction. but that being said, s.t.e.m. now becomes imperative in a background and absolutely at the k-12, right? you need that foundational understanding to be able to take these fields into wherever they're going to go which i don't think we can even imagine what that looks like today. >> anyone else? >> i just, i find the question interesting, because when you talk about, you know, how we're advancing technology, all i see is opportunity. so i think for a cybersecurity field, security is ever and increasingly more important in innovative ways to do so. so the way we have done security the last 20, 30 years, may not and likely is not t

. ♪ i wish i could see beyond what i can see ♪ >> this is a song collaboration between taryn and a.i.> you mean artificial intelligence versus somebody's stage name. >> yes i mean artificial intelligence. ♪ i wish i could imagine >> she provided parameters for the song's tempo, the rhythm, instrumentation. then the wrote the vocal melodies for. >> if you want a rock tune on the album, you change the parameters and it spits out a song. >> yep. >> i don't know how i feel about all this. >> producers and engineers are at home like huh-uh. >> now everybody can just have an app. >> i disagree. i think it's just a neat demonstration she's showing off. >> she says this allows her to focus on her creative process without having to worry about all the other elements that she's not necessarily good at. but it allows her to focus on her art. ♪ more to who we are ♪ there's more to what we could be ♪ >> it's great she could go ahead and take care of it herself. but there's this process that happens with writers and producers and sound engengineer. you get this beautiful music of people coming toge

ten years from now, i would trust an a.i. doctor over a human doctor any day, because the a.i. doctor will be looking at all of my data. >> reporter: and it isn't just happening at wadhwa's house, but also nearby, where facebook was built. >> mark zuckerberg stayed here his first summer in palo alto. >> reporter: stanford university computer science undergrad josh browder, working to fulfill a shakespearean ambition: kill all the lawyers. >> i'm trying to replace the $200 billion legal industry with artificial intelligence. >> reporter: browder's created do not pay, an app he built to fight parking tickets in the u.k., where he'd amassed dozens, and couldn't afford the tab. >> and so i had to figure out other ways to get the tickets dismissed-- if the signage is not up to code, or if the parking bay is illegally too small. there are these letters where if you cite the code, cite how your case applies to it, you can get out of the ticket. there's nothing the government can do. >> reporter: browder claims a 60% success rate, and has expanded do not pay to the u.s., and to other l

a.i., finance, so watch those areas. >> kristen lang, the ceo of trade shift. thanks for being with us. >>> i used to think the toughest start up is an airline. i've had a lot of experts agree. we will examine that when "press:here" continues. >>> welcome back to "press:here." it's possible you used to be a fan of the san francisco demons. or the san francisco bowls. or the san jose scout. or the san jose frogs. you know the frogs. or the california sun birds or the cyber rays. it's also equally possible you've never heard of any of those teams. they all either folded or moved away. i bring that up because you have to understand the head winds that are facing the san francisco deltas. they are a soccer team in the north american soccer league playing the carolina rail hawks in a home game in san francisco's stadium this weekend. but if you build a team, will fans come? recently the team ceo posted a plea to the internet titled, only you can fix this in which he says, i believe professional soccer can work in s.f., i really do. however, we have a problem. the sa

in fact, a recent article in defense one highlights russia's ambition to deploy a.i.directed weapons capable of identifying and engaging targets and even suggesting that russian weapon makers see robotics and a.i. as a key for their future sales for adversaries of ours around the world. so given that dod directive is due to expire later this year, can you provide us some update on the process to update and review the process and your thoughts regarding what seems to be russian developments in a.i. targeting? >> yes, sir, i will. first of all, there will be a raucous debate in the department about whether or not we take humans out of the decision to take lethal action. i will tell you in this forum that i am an advocate for keeping that restriction. that because we take our values to war and because many of the things that we must do in war are governed by the laws of war, which say we must take proportional and discriminate action against an enemy to achieve our objectives, i don't think it's reasonable for us to put robots in charge of whether or not we take a human

kid that -- we're going to turn it from citing to citing can teach you to write we're going to use a.id computer learning to teach you to write 30% of students take remedial writing counter. hegg is doing that there's 36 millions students in the u.s., 22 million people who have some credits, but not all of them. so it's just going to get bigger we think the world is moving from learning to earning >> it's a big story. i know you'll be bad. >> thanks for the chance to talk about it >>> thank you, you guys. >> great to be here. >>> north korea considering a missile strike against guam, as rhetoric continues to escalate we'll bring you the latest. >>> but first a quick check on the markets. dow has been in a pretty tight range, but down about 100 points as we are ckba below 22k back in a moment for years, centurylink has been promising fast internet to small businesses. but for many businesses, it's out of reach. why promise something you can't deliver? comcast business is different. ♪ ♪ we deliver super-fast internet with speeds of 250 megabits per second across our entire network, to mo

computing platform and we're passionate about the fact in the long term you have to have a new paradigm for a.i. computing to really make this world of i.o.t. easier for you. how will you interact with 100 different devices that are data enabled. emily: and what about this idea one of the essential tenants of essential is we won't have to check our phone every 10 minutes. how will it do that? niccolo: it's a computing and sensing challenge and we outlined that in a fair amount of detail. we think the phone's important because as i like to say, as long as humans are in charge, i think we have at least 10 years where we're still in charge, screens are important. you sleep probably a couple feet away from this screen. all the other screens in your life, including the one we put on our home product, are also part how you have your environment and ecosystem and ambient will learn about you. the 360 camera, for example, will be able to collect data which will learn about your patterns of behavior and preferences. t will also be like our home product -- this magnetic accessory port will be used on the

unlike other forms of a.i., autonomous weapons are close to being developed.n countries including the u.s., china, israel, south korea, russia, and britain are currently working on autonomous weapons. artificial intelligence weaponized. wow. >> he's the only one really sounding this alarm. >> he's talking about getting the u.n. and getting global organizations to start to talk about a framework for this kind of stuff. you know, he's right in there and says it's happening quickly. >> let's get him on cnn, talk about it. >>> "early start" continues right now with the latest out of singapore. >>> breaking news, ten sailors missing after a u.s. navy destroyer collides with a merchant ship near singapore. the latest on the search. >>> plus, president trump will outline the path forward for the u.s. and afghanistan tonight in primetime. what it means for america's longest war. >>> and a total eclipse of the sun. it will sweep from coast to coast, what you can expect from this once-in-a-lifetime event. no pressure, but what are you doing this afternoon? >>> good morn

the jobs picture will look like when you take into consideration the acceleration in technology and a.i. there are many questions being asked by investors and central bankers alike about wages. why in some places wages haven't kept pace with strong economic growth that is the question i put to peter diamond, a nobel laureate, who has spent a great deal of his career looking at labor economics and particular frictions when it comes to labor searches take a listen to what he had to say about the question around wages specifically >> a big driver of wages is people moving up to higher paying jobs. that's not happening the total number of quits in the u.s. economy is about the same place it was before the crisis i have be given how much employment has grown, you can see the quick rate is way below what it was before if a lot of wage increases come when you shift jobs, that's not happening. that's an important part of what's going on. >> peter diamond, nobel laureate weighing in on the fact that the quit factor is just one component of sluggish growth he weighed in on the fiscal policy sayin

." >> she's like, "dad, he's a.i., he's perfect for me."ike old man weinberg. my grandma is more scared of technology than me. like she's scared of email. like when she sends -- she clicks send, and she's like, "where did it go?" [ light laughter ] she doesn't understand email. she doesn't understand it. which is crazy, 'cause i understand email, 'cause i grew up with it. you know what i don't get is the regular mail. [ laughter ] the regular mail is crazy. every time i put a letter in a mailbox, my first thought is there's no way that works. [ laughter ] how do we trust that box next to the trash can? every time? i am scared of apps. i think they replace things in our lives. like tinder has replaced my heart. uber has replaced ambulances. yeah if you're in trouble, uber's way cheaper, just so you know. [ laughter ] but seriously, like there could be an app soon that replaces the cops. that will be the next big app. it will be called "help." just spelled with a "y" somehow. [ laughter ] your house is getting robbed, you're like, "let's try

customers, about communication with customers, looking at data, that mission of really using data in a.i., and getting the productivity of all those workers up because they see more information, microsoft is the leader in that. and it's a well niche. you know, it's a multihundred-billion-dollar niche that they're strong in. they will be innovating along that line more in the next few years than ever in our history. >> rose: you have a passion for artificial intelligence, you do. >> yeah. it's the ultimate dream when you start working on software is the kind of deep understanding and intelligence that humans have. so it's been the holy grail when can the computer learn to play games? when can the computer learn to read? when can it understand speech? and things like speech and vision have made such progress in recent years. i mean, you know, you have been tracking this and exposing your viewers to some of it, because i can't over-state even for people in the field, it's a pretty magical time. >> rose: and its potential is to do what, change everything? >> well, to-- in the first instance,

so they are hiring a.i. enabled developers to develop tools that give him legal services and this is a trend starting to take off the ground. so, here's a picture of what is happening in law practice today. you can see the three trendlines in the show's 1997 benchmark the first year with the north american industrial classification. i can go forward or not they find in the the employed lawyers. in law firms sector, government sector in the in-house sector. the big-league firmness grew from about 34,000 in 1997 to over 157. there's as many lawyers in-house that are employed domestically. it is pretty staggering and hiring rate is about 7.5 times more lawyers being hired by being hired into the law firms are. even there, that should surprise folks if we ignore the top line and look at the bottom two lines. governments are at almost twice as many lawyers in the air. at least in 2006. i don't think the government feels it's been on a hiring boom and all. something big and structural is taking place in law practi

if you go to one of these a.i. conferences, they were talking about -- the title how to instill moral behavior in the machines. what a complicate way of saying can we pull the plug if it's necessary, right? [laughter] if anybody has ever heard of isaac asimov, he wrote a lot of science fiction and popular science quite a while ago now, but he had three rules of robotics, right? the robots, i mean, this was for fiction, but he said the robots have to obey their master, they can't hurt humans and all this kind of stuff. which is all completely nonsense, because if you look at the kind of robots designed today, they're mostly for things like warfare. so they're not going to listen to that. you might think the first generation of thinking machines you building will listen to you. you created them, and they will be programmed, because they were programmed by humans. they will be programmed to not hurt you, you know, not take over the house, right? not rearrange the furniture, anything like that. leave the cat alone, wha

you can't argue that, and they have some wonderful a.i.me of their products, and -- but i'm not sure that i would be a buyer at these levels i think that i would wait for -- for a pullback i mean, you can't argue it's a wonderful company though. >> still dropping now, down about 4% michael? >> obviously the stock was even up more than a buck today. i will say you cannot really rationalized it on a pe basis. it's been expensive since day one. guess what it's compounded at 27% a year since its ipo, so i do think that also benioff is a good talker, and i think during the call it's one of those stocks that declines in the immediate reflex move. don't necessarily lasts. that being said, trade at 30 times something free cash flow and that's their measure of free cash flow. it's one of those names where you have to believe in the top line momentum and say it's in the right place for the big trends it trades in the same space as adobe and facebook in terms of free cash for multiple. >> free cash flow they talk about is fake. they burn over $1 bill

we're talking driverless cars at some point and you look at the new technology, a.i., what models doke that? inga: anything we don't have data for is difficult to insure because we don't know what we're going to charge. we've been doing this hundreds of years. we're not the first satellite that went up in space and insured it we didn't have data to go on, we had no experience. this is what we're faced with, all these new risks. and cyberis just one of those. we're trying to get as much data as we can, we've heard about recent attacks and we have instances where we know, and one company came out and has given a number, $700 million, about what they've lost out of a cyberattack. the more data we gather the more we understand the impact and the best we can assess exposures and get the pricing right. it's a tough business when you don't have the historical data. david: we talked about the cyberattack one company faced. do you sense more companies are willing to share data with one another, more willing to talk about the attacks they face and are the attacks becoming more devastating or j

quick -- >> amazon tried coming out with their phone to combat and failed now leading in with echo, a.i michael do you have any sense what this new iphone will officer? >> yes, two of you, a few changes for iphone people are expecting is something called display a screen, a phone entire screen get rid of the home button, another is face scanning technology inning whether than fingerprint might use face, and also, august ament reality apple will add features possibly better camara to enable you to overlay digits on to real world sounds crazy you hold phone see things in real world not flel could be robot could be you know. >> buy the phone when first hits 2 market or should we wait to see if any you know -- things that they need to fix. >> i think the -- >> people are expecting iphone 8 to be a significant you know one milestone products for apple. >> in september. >> comes out in september i thinkall 26 or sorry first week of september is the -- >> tesla company reporting earnings after the bell stock is down nearly 10% just in last month, on tesla, the company rolling out model , what

smartphones nothing in comparison to apple and google phones in terms of success in demand so focusing on a.ispite all the uncertainty around the world, the markets shopping incredible resiliency the futures, today host of "varney & company", stewart stuart are you surprised or not? yes, i am surprised actually, yes, i am, as of right now, the dow jones industrial average average, 222 points away from all-time record high, that is it. 220 points away within o one good rally you've got another new all-time high, despite harvey, the worst natural disaster in american history enormous price tag to it despite north korea, launching missiles despite legislative agenda just jam-packed to the point of bursting, a gop divided a democratic party urging obstructionism at all costs all of that you still got dow industrials 222 points away from all-time high, i guess must be strong profits growth worldwide, 3% growth in america, and record consumer confidence i guess the latter outweigh former positives outweigh negatives, 21.9 how about that. >> you do have talk about the divided congress the do nothing