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December 9, 2015

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John Miley

Greetings:

This week: The next step in computerized assistants. Top cybersecurity risks for the year ahead. Additional Internet options for consumers. And more.

Computers That Sense Emotion

On the way: Computers that perceive your mood and respond accordingly through the use of cameras and artificial intelligence (AI). Microsoft and others are developing software that aims to make computers more humanlike and responsive than today's facial recognition software, which mainly detects faces from a database. If you're unhappy, for instance, a fun picture will display or a favorite song will play. Eric Horvitz, director of the Microsoft Research lab, already has a working system, with an AI human helper on a video screen outside his office door.

Products with this capability are expected to be on the market within five years. The new push will make the products widely available, and not just in research settings. Businesses that employ robotic concierges—hotels, offices and hospitals—are sure to benefit. If a customer looks confused, for instance, lifelike on-screen helpers will be able to detect it and respond by dispensing clearer information. Mobile robots and gesture computing will become common. Advertisers are especially interested in consumer reactions to online ads. Affectiva, for instance, offers software that uses AI to gauge the emotional impact of digital media.

Also standing to benefit in coming years: Computer assistants, such as Microsoft's Cortana and Apple's Siri, which already work through voice recognition. Eventually the digital personal assistants will be able to harness a camera in a smart phone, tablet or computer to analyze a user's expression. Tied to other information, such as voice and heart rate, the assistants will be more responsive.

Security Threats in 2016

Cloud computing and wearable gadgets top the list of cybersecurity risks heading into 2016. One threat likely to get worse over the next five years is getting malware by using nonsecure Wi-Fi networks on company cloud software, such as Microsoft Office 365. Also, hackers are increasingly eyeing popular smart home gizmos that lack strong security—for example, attacks on fitness trackers' Bluetooth or Wi-Fi to steal personal health information. “Every new product that connects to the Internet faces the full force of today's threats," security researchers at McAfee Labs wrote in a recent report. (Continued below.)


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One of the biggest cyberthreats: Stealth operations that go undetected. Hackers will get better at breaching networks quietly and stealing data for months. Or they'll launch an attack to create a diversion in one place, then go after another location. There will also be a bigger push to steal usernames and passwords to breach company networks. Business and government data will be sought in these attacks.

There will be a bigger effort by other countries to attack physical targets, such as critical infrastructure and the growing number of connected cars and drones. They pose risks because they use wireless tech that can be hacked and can inflict physical damage on people and things.

But there are positives developments to note in the cybersecurity landscape. Online security is advancing quickly. Automated software can run in the background, tracking computer behavior that may indicate a hacker. More-powerful computer chips make strong security possible on hardware itself. The sharing of threat info by Uncle Sam and private companies is getting better. And security researchers are getting faster at spotting bugs that threaten networks.

New Internet Options

Expect a flood of new mobile Internet plans to hit the market over the next 12 months. Internet providers will roll out options such as unlimited video, faster apps and cheaper plans for light data users. Consumers and businesses will have more choices, especially when it comes to mobile broadband. T-Mobile, for instance, has rolled out unlimited video for many of its subscribers, and Verizon has launched its own video service, go90. With more offerings exempting mobile video from data caps and extra fees, video viewing on smart phones will surge. It will also push some folks in areas with strong cell coverage to ditch at-home wired Internet.

Behind the plans is upgraded technology to send data over networks. Telecom firms aim to boost profits while reducing congestion, especially for video. The push is sure to be a race to deliver better experiences on smart phones. Others are following T-Mobile's move and finding ways to better stream mobile data, using networks' advanced routers, small antennas and new video compression technology. While the goal is to lure subscribers with unlimited video data, cellular firms think they can boost profits with the cost-saving technologies. “This is actually incredibly good for investors," said John Legere, CEO of T-Mobile, during the company's announcement.

But regulators may swoop in and halt some of the services. The Federal Communications Commission oversees mobile and wired broadband and is watching for practices that violate net neutrality rules. Which ones do? Regulators don't know yet, so there's plenty of uncertainty ahead for telecom companies.

Mobile broadband may come out a big winner as the FCC defends its Internet rules in court. The three judges in the case, which got under way last Friday, seem suspect of the FCC applying utility-style regulations to wireless Internet. Scrapping utility regulations from wireless providers, while keeping them on wired services, would have a dramatic impact on competition in the years ahead. Cellular Internet providers, such as AT&T, Verizon and T-Mobile, would greatly benefit from a court ruling that excused them from a patchwork of red tape. But wired Internet providers, including cable companies such as Comcast, would take a hit.

Tech Tidbits

Virtual reality is poised to explode into a multibillion-dollar business. One forecast calls for the nascent market to grow to $70 billion by 2020. Another forecast says that hardware sales alone will sail past $60 billion by 2025. It's clear that the market will be big for VR hardware, including goggles, gloves and related devices, as well as software, such as videos, games and apps. Leading uses of VR include movies, sports, health care, gaming and education. Some big winners from the coming VR boom include Facebook, Google and Apple. Potential losers? Makers of TVs and PCs plus the travel industry.

Computer automation adds jobs, according to a new report. The report looks at jobs since 1980 and concludes that industries that adopted computer automation added more workers. That goes against the view that automation leads to fewer workers. However, the jobs using computers require new skills and can increase inequality among workers. Looking ahead, the challenge facing American workers is not unemployment caused by digital automation, but learning tech skills that will be in demand, according to the study.

Live video streaming of life's moments will go mainstream with a new Facebook feature. Facebook is rolling out technology that lets folks broadcast live video streams online. It's not the first to launch the mobile feature—Meerkat and Twitter's Periscope are others—but Facebook has the reach to make it popular. The tool lets friends and family experience vacations and other events as they happen, and it's sure to become a big hit. Expect live streaming tools to play a bigger role with business users, too, to broadcast information from work sites, show videoconferences or advertise products.

Sincerely,
John Miley signature
John Miley
jmiley@kiplinger.com
@johntmiley

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