AI

The industrial data revolution: What founders got wrong

Comment

3D illustration Rendering of binary code pattern Abstract background.Futuristic Particles for business,Science and technology background
Image Credits: MR Cole Photographer (opens in a new window) / Getty Images

Joe Hellerstein

Contributor

Joe Hellerstein is co-founder and chief strategy officer of Trifacta and the Jim Gray Chair of Computer Science at UC Berkeley.

In February 2010, The Economist published a report called “Data, data everywhere.” Little did we know then just how simple the data landscape actually was. That is, comparatively speaking, when you consider the data realities we’re facing as we look to 2022.

In that Economist report, I spoke about society entering an “Industrial Revolution of Data,” which kicked off with the excitement around Big Data and continues into our current era of data-driven AI. Many in the field expected this revolution to bring standardization, with more signal and less noise. Instead, we have more noise, but a more powerful signal. That is to say, we have harder data problems with bigger potential business outcomes.

And, we’ve also seen big advances in artificial intelligence. What does that mean for our data world now? Let’s take a look back at where we were.

At the time of that Economist article, I was on leave from UC Berkeley to run a lab for Intel Research in collaboration with the campus. We were focused all the way back then on what we now call the Internet of Things (IoT).

At that time, we were talking about networks of tiny interconnected sensors being embedded in everything — buildings, nature, the paint in the walls. The vision was that we could measure the physical world and capture its reality as data, and we were exploring theories and building devices and systems toward that vision.

We were looking forward. But at that time, most of the popular excitement about data revolved around the rise of the web and search engines. Everybody was talking about the accessibility of masses of digital information in the form of “documents” — human-generated content intended for human consumption.

What we saw over the horizon was an even bigger wave of machine-generated data. That’s one aspect of what I meant by the “industrialization of data” — since data would be stamped out by machines, the volume would go up enormously. And that certainly happened.

The second aspect of the “Industrial Revolution of Data” that I expected was the emergence of standardization. Simply put, if machines are generating things, they’ll generate things in the same form every time, so we should have a much easier time understanding and combining data from myriad sources.

The precedents for standardization were in the classical Industrial Revolution, where there was an incentive for all parties to standardize on shared resources like transportation and shipping as well as on product specifications. It seemed like that should hold for the new Industrial Revolution of Data as well, and economics and other forces would drive standardization of data.

That did not happen at all.

In fact, the opposite happened. We got an enormous increase in “data exhaust” — byproducts of exponentially growing computation in the form of log files — but only a modest increase in standardized data.

And so, instead of having uniform, machine-oriented data, we got a massive increase in the variety of data and data types and a decrease in data governance.

In addition to data exhaust and machine-generated data, we started to have adversarial uses of data. This occurred because the people involved with data had many different incentives for its use.

Consider social media data and the recent conversations around “fake news.” The early 21st century has been a giant experiment in what makes digital information viral, not only for individuals but for brands or political interests looking to reach the masses.

Today, much of that content is in fact machine-generated, but it’s machine-generated for human consumption and human behavioral patterns. This is in contrast to the wide-eyed “by people, for people” web of years ago.

In short, today’s data production industry is incredibly high volume, but it is not tuned for standard data representations, not in the sense I expected at the time of those predictions over a decade ago.

The state of innovation: AI versus human input

One thing that has clearly advanced substantially in the past decade or so is artificial intelligence. This sheer volume of data we are able to access, process and feed into models has changed AI from science fiction into reality in a few short years.

But AI is not as helpful in the business data processing domain as we might expect — at least not yet. There is still a surprising disconnect between AI technology like natural language processing and structured data. Even though we’ve had some progress, for the most part, you can’t talk to your data and expect much back. There are some situations where you can Google for a quantitative question and get back a little table or chart, but that’s only if you ask just the right questions.

For the most part, AI advances are still pretty divorced from stuff like spreadsheets and log files and all these other more quantitative, structured data — including IoT data. It turns out the traditional kinds of data, the kinds of data we’ve always put in databases, has been much harder to crack with AI than consumer applications like image search or simple natural language question answering.

Case in point: I encourage you to try asking Alexa or Siri to clean your data! It’s funny, but not very helpful.

Popular applications of AI haven’t projected back yet to the traditional data industry, but it’s not for lack of trying. Lots of smart people at both universities and companies haven’t been able to crack the nut of traditional record-oriented data integration problems.

Yet, full automation evades the industry. Part of that is because it’s hard for humans to specify what they want out of data upfront. If you could actually say, “Here’s precisely what I’d like you to do with these 700 tables,” and follow up with clear goals, maybe an algorithm could do the task for you. But that’s not actually what happens. Instead, people see 700 tables, wonder what’s in there and start poking around. Only after a lot of poking do they have any clue what they might want to happen to those tables.

The poking around remains creative work because the space of ways to use the data is just so big and the metrics of what success looks like are so varied. You can’t just give the data to optimization algorithms to find the best choice of outcome.

Rather than waiting for full automation from AI, humans should get as much help as they can from AI, but actually retain some agency and identify what is or isn’t useful, then steer the next steps in a certain direction. That requires visualization and a bunch of feedback from the AI.

Understanding the impact of data and controlling data spread

One place AI has really shined, though, is in content recommendation. It turns out that computers are frighteningly effective at targeting and disseminating content. And oh boy, did we underestimate the incentives and impacts around that aspect of data and AI.

Back then, the ethical concerns we had around data and its uses in AI were mostly around privacy. I remember big debates about whether the public library should have digital records of the books you reserve. Similarly, there were controversies over grocery loyalty card programs. Shoppers didn’t want grocery chains to keep track of what food they bought when and target them for accompanying items.

That mentality has largely changed. Today, teenagers share more radically more personal information on social media than the brand of food they purchase.

While I wouldn’t say that digital privacy is in a good state, it is arguably not the worst of our data problems today. There are issues such as state-funded actors trying to introduce mayhem into our social discourse — using data. Twenty years ago, very few people saw this stuff coming our way. I don’t think there was a great sense of the ethical questions of what could go wrong.

This leads to what’s next, and even currently in process, in the evolution of our uses of data. What becomes the role of governments and of well-meaning legislation? Without predicting all the ways tools will be used, it’s hard to know how to govern and restrict them intelligently. Today, we are in a state where it seems like we need to figure out the controls or incentives around data and the way it is promulgated, but the tech is shifting faster than society is able to figure out risks and protections. It’s unsettling, to say the least.

So, were the predictions spot-on?

As a professor, I’d award it a passing grade, but not an A. There is substantially more data available to us with more uses than we probably ever could have imagined. That’s led to incredible advances in AI and machine learning along with analytics, but on many tasks, we’re still just scratching the surface, while on others we’re reaping the whirlwind. I am fascinated to see what the next 10 to 20 years will bring and look back on these issues again.

More TechCrunch

Instead of opening the user’s actual browser or a WebView, Custom Tabs let users remain in their app while browsing.

Google Chrome becomes a ‘picture-in-picture’ app

Sanil Chawla remembers the meetings he had with countless artists in college. Those creatives were looking for one thing: sustainable economic infrastructure that could help them scale rather than drown…

Creator fintech Slingshot raises $2.2 million

A startup called Firefly that’s tackling the thorny and growing issue of cloud asset management with an “infrastructure as code” solution has raised $23 million in funding. That comes on…

Firefly forges on after co-founder’s murder by Hamas

Mistral, the French AI startup backed by Microsoft and valued at $6 billion, has released its first generative AI model for coding, dubbed Codestral. Codestral, like other code-generating models, is…

Mistral releases Codestral, its first generative AI model for code

Pinterest announced today that it is evolving its Creator Inclusion Fund to now be called the Pinterest Inclusion Fund. Pinterest teamed up with Shopify’s Build Black & Native program to…

Pinterest expands its Creator Fund to allow founders

Cadillac may seem a bit too traditional to hang its driving cap on EVs. And yet, that hasn’t stopped the GM brand from rolling out — or at least showing…

Cadillac’s new Optiq EV is designed to hook young hipsters

Alex Taub, a longtime founder with multiple exits under his belt, believes it’s time to disrupt the meme industry. “I have this big thesis that memetech is going to be…

This founder says memetech is the next big thing

Lux, the startup behind popular pro photography app Halide and others, is venturing into video with its latest app launch. On Wednesday, the company announced Kino, a new video capture app…

Kino is a new iPhone app for videographers from the makers of Halide

DevOps startup Harness has shown itself to be an ambitious company, building a broad platform of services while also dabbling in M&A when it made sense to fill in functionality.…

Harness snags Split.io, as it goes all in on feature flags and experiments

U.S. Rep. Elissa Slotkin will introduce a bill to Congress that would limit or ban the introduction of connected vehicles built by Chinese companies if found to pose a threat…

House bill would ban Chinese connected vehicles over security concerns

Microsoft’s Copilot, a generative AI-powered tool that can generate text as well as answer specific questions, is now available as an in-app chatbot on Telegram, the instant messaging app.  Currently…

Microsoft’s Copilot is now on Telegram

HBO’s new documentary, “MoviePass, MovieCrash,” tells a story that many of us know about: how MoviePass, the subscription-based movie ticketing startup, was a catastrophic failure. After a series of mishaps…

MoviePass co-founders speak their truth in HBO’s new documentary 

The watch features a variety of different 3D games, unlocking more play time the more kids move.

Fitbit’s new kid smartwatch is a little Wiimote, a little Tamagotchi

In the video, a crowd is roaring at a packed summer music festival. As a beat starts playing over the speakers, the performer finally walks onstage: It’s the Joker. Clad…

Discord has become an unlikely center for the generative AI boom

After the Wirecard scandal, Germany’s financial regulator BaFin started to look more closely at young fintech startups that wanted to grow at a rapid pace — it’s better to be…

Germany’s financial regulator ends anti-money laundering cap on N26 signups after $10M fine

Among other things, this includes the ability to trace code from source to binary packages across both platforms, single sign-on support and unified project structures.

JFrog and GitHub team up to closely integrate their source code and binary platforms

The company’s public fund disbursement and e-commerce platform makes accepting school tuition and enabling educational enrichment more accessible. 

Tech startup Odyssey goes on journey to help states implement school choice programs

A new startup called Kinnect aims to help people privately save generational memories, traditions, recipes and more. The company’s app, launched this month, lets people create invite-only spaces where they…

Kinnect’s new app aims to help families record and store generational memories

Spotify has hiked its premium subscription in France by an eye-watering €0.13, in response to a new music-streaming tax.

Spotify hikes subscription price in France by 1.2% to match new music-streaming tax

The European Union has taken the wraps off the structure of the new AI Office, the ecosystem-building and oversight body that’s being established under the bloc’s AI Act. The risk-based…

With the EU AI Act incoming this summer, the bloc lays out its plan for AI governance

Solutions by Text, a company that gives people a way to pay their bills and apply for loans via text messaging, has secured $110 million in new growth funding. Edison…

Bootstrapped for over a decade, this Dallas company just secured $110M to help people pay bills by text

Owners of small- and medium-sized businesses check their bank balances daily to make financial decisions. But it’s entrepreneur Yoseph West’s assertion that there’s typically information and functions missing from bank…

Relay raises $32.2 million to help smaller businesses manage their cash flow

When other firms were investing and raising eye-popping sums, Clean Energy Ventures took a different approach. It appears to be paying off.

How Clean Energy Ventures avoided the pandemic bubble and raised a $305M fund

PwC, the management consulting giant, will become OpenAI’s biggest customer to date, covering 100,000 users.

OpenAI signs 100K PwC workers to ChatGPT’s enterprise tier as PwC becomes its first resale partner

Tech enthusiasts and entrepreneurs, the clock is ticking! With just 72 hours remaining until the early-bird ticket deadline for TechCrunch Disrupt 2024, now is the time to secure your spot…

72 hours left of the Disrupt early-bird sale

Avendus, the top investment bank for venture deals in India, confirmed on Wednesday it is looking to raise up to $350 million for its new private equity fund.  The new…

Avendus, India’s top venture advisor, confirms it’s looking to raise a $350M fund

China has closed a third state-backed investment fund to bolster its semiconductor industry and reduce reliance on other nations, both for using and manufacturing wafers — prioritizing what is called…

China’s $47B semiconductor fund puts chip sovereignty front and center

Apple’s annual list of what it considers the best and most innovative software available on its platform is turning its attention to the little guy.

Apple’s Design Awards nominees highlight indies and startups, largely ignore AI (except for Arc)

The spyware maker’s founder, Bryan Fleming, said pcTattletale is “out of business and completely done,” following a data breach.

Spyware maker pcTattletale says it’s ‘out of business’ and shuts down after data breach

AI models are always surprising us, not just in what they can do, but also in what they can’t, and why. An interesting new behavior is both superficial and revealing…

AI models have favorite numbers, because they think they’re people