Page 192 - Artificial Intelligence for the Internet of Everything

178 Artificial Intelligence for the Internet of Everything

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ubiquitous networking. A frictionless economy, as well presented by the neo-
7
classical economy, will then be just around the corner.
To elaborate on the above point, we first recognize that various intelli-
gence tools (robots, software agents) have been extensively applied to
“learn” and to “know” humans using the big data collected from IoE. These
intelligent artificial agents can discover the repertoire of each decision maker
in terms of preferences, moral judgments, beliefs, risk preferences, and rou-
tines or habitual behavior; hence, not only can IoE predict what individuals
will choose, but, moreover, in their best interests, what they ought to choose;
furthermore, if authorized, they will execute the choices for them as their
incarnations. Since machines have little difficulty in exercising self-control,
they can execute the choice with little hesitation. 8
If these artificial agents are further applied to automate human decisions
to a rather extensive extent, instead of merely driving an automobile, they
can “routinize” many nontrivial decisions for humans. In this way, through
IoE, networks of human agents are essentially mapped to networks of their
cyborg equivalents. The entire (dual) economy is then run with enhanced
rationality and coordination; the coordination scale is much more extensive
than the idea of a city having only driverless cars or programmed drivers
(Sasaki & Flann, 2005). In this manner, humans through their incarnations
will behave as if they are homo economicus. This in turn helps with the for-
mation of a frictionless economy.
Now, let us leave the unmanned vehicles behind, and focus on
unmanned markets. With the information availability supported by IoE,
the market mechanism as manifested by its automated matching mechanism
can match couples or crowds to form partners, teams, firms, or various orga-
nizations. Matching per se is a highly complex issue, but good matches can

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One may use the term dense everywhere from topology to think of ubiquitous networking. In the vein of
topology, if we take the closure of each individual or entity, their union should be the entire universe.
Here, closure means the space reachable through networkings.
7
The frictionless economy can be considered as an economic Utopia. It reflects a highly smooth
operation of the economy, specifically, where information required for decisions is easily available, or,
alternatively put, search is not costly. In this economy, prices of the homogeneous good are identical,
the so-called law of one price. The degree of information asymmetry is low, and the distinction between
informed traders and uninformed traders is negligible. Also see Hamel (2000).
8
From behavioral economics, we know that agents may act according to a will that is not their own.
Sometimes people get swept up and do what they would not otherwise do and what they may wonder
about later. Self-control, as analyzed by behavioral economists, is treated as an exhaustible human
resource (Muraven & Baumeister, 2000); when it is depleted, a human may lose his/her persistence in
resisting temptation. This economic analysis of self-control has many policy implications (Shafir, 2013).