The Golden Age of AI

Dr. Kai-Fu Lee Chairman & CEO

China’s Innovation Works June 15, 2016

We are at the Cusp of the Greatest Tech Revolution

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100In 00’M

1975 2010 2015 2020

Mobile

internet

PC 0

50

100

150

200

250

300

350

400

AI

Robotics

AR/VR

In 00’M

1975

Mobile

internet

PC 2010 2015 2020

Dramatic advances in AI exceeding human performance

70%

75%

80%

85%

90%

95%

100%

2011 2012 2013 2014 2015 2016

Human

AI Deep Learning

Medical DNA-based diagnosis, big-data driven

cancer treatments, auto-radiologist

Education Foreign language learning, targeted drills,

edu-tainment robot

Banking & insurance Fraud detection, credit risk analysis

based on multiple data streams, intelligent targeting, auto-telesales

Recognition Speech, faces, images, video

Securities / Trading Multi-input robo-trading, event-driven auto-traiding, intelligent & customized

asset allocation, intelligent arbitrage

BI & Internet Data Search, ads, prospecting, customer

targeting / conversion, product recommendation, pricing optimization

AI will create unimaginable economic value

Within 15 years, AI will replace 50% of our workforce:

A driver who learns from a billion hours of driving? A policeman who instantly recognizes all the wanted criminals? A journalist who composes a news article in 0.01 second? A security guard who works 24x7 with no fatigue or complaint?

Translators Journalists Assistants Security Drivers

Salesmen Customer support

Traders Accountants Nannies

AI will not just assist humans, but will exceed humans:

Limited Assisted Driving

Speech Face

Gesture

Industrial Robots

Popular Home Robots

Roadmap of AI, Robotics, and AR/VR

Big Data Perception Decision Robotics

To

day

3 – 5 Y

rs 5 -10 Y

rs >

10 Yrs

Internet apps, ads

Fully Autonomous

Driving

Human+ Machine Driving AR/VR

Com-mercial Robots

Cross-domain Natural

Intelligent Assistant

Nearly Autonomous

Driving

Investment, insurance, banking health, education,

drug/material discovery

Anything w/big data Platform for AI

BI、 business process

Sensors: infrared,

depth sensor, radar,

lidar

Common Sense? True understanding?

Replication? Creativity?

Self-Awareness?

Natural language + action

China is poised to rapidly catch up in AI

40% of Chinese international students in the US are studying STEM (Science, Technology, Engineering and Math).

China has the most engineering graduates per year.

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200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

Top 10 countries with the most

engineering graduates in 2015

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50,000

100,000

150,000

200,000

250,000

300,000

350,000

International students studying in the

US

in 2015, by country/region

Examples of our portfolio companies in AI

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How The Digital

Revolution

Will Redefine

Business