in this video you'll learn all about big
data how companies and the government
are collecting information about you and
what they're doing with it not just
demographic data but bioinformatics as
well and how this helps you but also
what it means for your personal privacy
so let's get started let's talk now
about big data every day
in 2015 we sent 205 billion emails were
sending more today than we were in 2015
every day in 2015 we ran three and a
half billion google searches we tweeted
500 million times we downloaded 200
million apps you want to watch every
video that YouTube uploaded yesterday
it'll take you 49 years to view them all
in the last two years we created 90% of
all the world's data that's 9 times more
than in all of human history and we
create two and a half quintillion more
bytes of data every single day by 2020
we'll have created 42 Zeta bytes of data
that's 42 followed by 2100 bytes it's
hard to comprehend that number let me
put it to you this way every weekend
during football season football fans
upload twice as much data to the
Internet as exists in the entire Library
of Congress that's a lot of data this is
even more the Scott telescope this is a
very big deal telescopic array that's
currently under construction when it's
finished in the 2020s it's going to
produce as much data every week as
humanity produced since the dawn of time
just that one telescope system by itself
there's only one word for all this help
what do you do with all the data okay
we're creating massive amounts of data
what do you do with it
how do you access it how do you
interpret it how do you make it useful
the key is to store the data and to
analyze the data so let's talk about
that they've now figured out how to
build a hard drive that has six
terabytes it has the capacity to store
all the music ever recorded oh by the
way it costs $230 yeah we're doing a
really good job at figuring out how to
store data it's extraordinarily
inexpensive a single gram of DNA this is
research that's going on separately by
scientists at the University of
Washington the University of Illinois
and the European bioinformatics
Institute they've all shown that a
single gram of DNA I want to make sure I
get the statistic right it can hold as
much data as 1 million compact discs 6
bottles of wine filled with DNA could
hold all the data that exists in the
entire world
just six wine bottles now what do you do
with all that data you create algorithms
that's the whole point of computer
technology through artificial
intelligence machine learning and deep
learning we can build computer
algorithms let me give you an
illustration of what computers are
capable of doing with their incredibly
fast speed how they can take massive
amounts of data and do something useful
with it let's use the illustration of
UPS UPS has 55,000 trucks in its
American fleet they deliver 16 million
boxes every day the average UPS driver
has 120 stops per day so UPS has one
question that
must answer how do you get the drivers
to drive most efficiently that gets them
from point A to point B the fastest but
easiest with the least amount of gas
used well this requires a computer to
figure it out because what UPS has
realized with all of those 55,000
drivers out there with all those routes
this number I don't even know how to
tell you what that number is
but that number is how many options
there are for ups to figure this out no
way a human can do this it requires a
computer algorithm and when ups applied
computer technology to this question
their algorithm cut 85 million miles a
year saving ups two and a half billion
dollars in fuel costs that's the power
of technology Facebook has a program
called deep face it can recognize faces
97% of the time that's the same ability
as humans can do it
so already technology is as good as
humans in that area you see this dog is
there a difference between that dog and
this dog there is but do you know the
difference one of them is a Cardigan
Welsh Corgi the other one is a Pembroke
Welsh Corgi which is which I don't know
but computers do computers now have the
ability to distinguish between those two
breeds of dogs and then there's quill
this is software that writes news
articles already we have The Associated
Press Forbes magazine a whole bunch of
the financial services industry using
quill to write articles research reports
and investor communications let me give
you till illustrations here's the first
one I want you to tell me who wrote this
a computer or a human despite an upper
single digits ales kegger through 2025
limited margin leveraged mutes earnings
momentum intuitive has the highest high
OM/GM ratio and device
even following recent softer top-line
growth pressuring operating margins
through 2015
who wrote that a computer or a human
here's your second example things look
bleak for the Angels when they trailed
by two runs in the ninth inning but Los
Angeles recovered thanks to a key single
from Vladimir Guerrero to pull out a 7/6
victory over the Boston Red Sox at
Fenway Park on Sunday
who wrote that a computer or a human you
choose was the first one written by a
computer or human was the second one
written by a computer or a human here's
the answer
the first one a was written by a human
the second one about the Angels was
written by a computer if you can't tell
the difference how do you know that any
newspaper you read is being written by a
human as opposed to a machine the
research continues at the filing
Research Institute they've engaged in
something called the jamya project
people who exercise eat well and consume
very little alcohol are more likely to
pay their bills on time and invest money
think about this how do they know that
they poured through massive amounts of
data looking at the patterns of behavior
of people and how they engage on a daily
basis and they found correlations people
who eat well and consume very little
exercise while exercising is a lot as
well they tend to be more responsible
financially they also discover that
runners are six times more likely to pay
their bills on time drinkers are five
times more likely to go bankrupt if you
input your health behavior into their
program you could end up getting a
better interest rate because lenders
does Han decide whether to give you a
loan and what to charge you for that
loan based on the likelihood you're
going to pay them back so the more data
the lender has the more likely they can
accurately handle your loan application
on Wall Street they're using algorithms
to make buy and sell decisions
algorithms as I mentioned are helping
lenders calculate
credit scores and determine whether
you're worthy for a loan in the
insurance industry they're using this to
determine whether or not you should be
qualified to buy insurance and if so
what rates should you pay based on your
driving habits and even habits unrelated
to driving such as who are your friends
on Facebook that can influence your
insurance rates law enforcement in New
York they're using algorithms to help
them track criminals who are the buyers
of this data bank's Internet Service
Providers credit bureaus pharmacies
grocers credit card companies phone
companies even DMV collects this data
buys this data sells the data in order
to improve their operations as a result
of the computer technology of being able
to know who's doing what where and when
if you go to Craigslist and post a
dresser drawer for sale they're able to
tell users where it's located even if
you didn't input the address Allstate is
now developing technology to assess your
driving habits they're able to examine
exactly how much to charge you based on
the way you drive your car what kind of
data is being collected your birth date
occupation education level marital
status race gender height weight health
status your right or left handedness
phone number address the size of your
house your cars make model and year how
many kids have you got how many people
live with you how many pets are in your
home and what is their breed all of that
though is pretty standard demographic
data would it freak you out to know that
these data brokers also know how much
money you have saved in your investments
what recent purchases you've made what
your religious views are and how you
feel about politics all of that data is
equally available through data brokerage
oh and that's not all
now we're moving into the aspect of
something called bioinformatics this is
the collection and use of biological
data do you want to Fitbit if so you're
collecting your own bioinformatics data
upload
to your smartphone and possibly to your
doctor as well in real-time it could
also be getting uploaded to the company
that manufactures Fitbit and what are
they doing with the data chances are
they're selling it
we have biometric sensors that you can
insert into your contact lens this is
fabulous for those with diabetes because
it can determine your blood sugar level
at all times uploading that data in real
time to your physician we already have
300,000 patients a year getting Wireless
implantable medical devices into their
bodies
think heart pacemakers for example in
India they're engaged in the largest
biometric identity database in the world
they are fingerprinting they are
photographing and they are scanning the
irises of
every resident every citizen of India
1.2 billion people and oh by the way
they're halfway done face first let's
retailer scan the faces of customers you
walk into the store they recognize you
it helps them identify if you're a known
shoplifter or one of their favorite
customers Hilton Hotels uses this
technology so their employees can greet
you by name when you arrive at the front
desk to check in there's technology
being used to determine who you are by
the way you walk yeah your physical gait
how you walk down the street is an
identifier so you just walk in through
an airport they're gonna know exactly
who you are even though you're not
walking up to any particular device
remember Watson Watson won the Jeopardy
championship in 2011 defeated the
two-time best champion the one who won
the most events and the one who made the
most money
Watson handily defeated the Jeopardy
champions that was in 2011 Watson
understands context slang metaphors and
puns how algorithms Watson has full
access to Wikipedia 200 million pages of
data that Watson can access in
milliseconds it enabled Watson to answer
this question correctly in
Jeopardy Tournament a long tiresome
speech delivered by a pie filling what
is a meringue harangue Watson got it
right
did you Watson of course is no longer
playing games on TV
Watson is now at sloan-kettering where
it has obtained a medical degree in
oncology Watson is now using its
abilities to help doctors diagnose
cancer patients to determine the best
treatment by pouring through millions of
pages of medical data around the world
to say this patient's symptoms are most
like these others and here's the
treatment plan most likely to be
successful for the patient something
that human doctors would never be able
to do in a reasonable amount of time
Watson can do it in seconds we're also
finding air traffic controllers and
military operators using this type of
sophisticated technology to improve
safety of our borders as well as improve
on-time arrivals in air traffic control
automobile mechanics are using this kind
of technology to diagnose what's wrong
with your car 81% of divorce attorneys
search social media Facebook is
mentioned in one out of three divorce
filings think about that if you're
suspicious of your spouse 70% of HR
professionals say they have rejected job
candidates because of information they
have found during online searches if
there's a red cup in your hand and that
photograph is on the internet you can
forget about getting hired oh I know
you're not drinking wine and beer or
something more powerful out of a red cup
but maybe your kids and grandkids are HR
professionals are scouring the internet
looking for those photographs a company
called in for is a software company it
assesses 1 million job candidates a
month that's 11% of the workforce they
measure 39 behavioral cognitive and
cultural traits and they compare them to
an employer's top employees to help the
employer figure out is this the kind of
employee that would or candidate that
would be a good success here in our firm
39 different traits using this on a
million job candidates a month there's a
really famous story that occurred a few
years ago a gentleman opened his mail at
home and he found a an envelope from
Target addressed to his teenage daughter
this mailing to her was advertising
products that are of interest to
pregnant women he was infuriated his
daughter was 15 years old he traipsed on
down to the Target store walked up to
the manager and said how dare you how
dare you send this kind of an
advertisement specifically naming my
daughter in the mailing it wasn't to the
resident of the home this was my
daughter's name was on this envelope
sent to our house she's 15 years old and
you've sent her something that is only
something that would be of interest to
pregnant women two weeks later he found
out his daughter was pregnant
Target knew it first
how did Target know this because it
tracked the purchases she was making and
apparently women who were pregnant by
certain kinds of products often with the
advice of their physician and when
Target realized through its algorithm
database collected all the data built
the algorithm to say people who buy
these kinds of products are people who
typically like to buy those kinds of
products and sent her a sales
solicitation her dad found out she was
pregnant because target told on her
privacy issues
being raised aren't there so you've got
to be careful who your friend anon
Facebook because your creditworthiness
can fall depending on who your friends
are
that's what lendo does when it
determines whether or not to loan people
money so what are the personal finance
implications of all of this well number
one the days of anonymity are over I
know you want your life to be private I
know you don't like Big Brother poking
in and you don't like the idea of other
folks knowing what you're up to
the war for privacy is
/ and privacy has lost you need to
recognize that fact there are things
that we can do to protect ourselves in
my book the truth about your future I
list a wide variety of strategies I'm
not mentioning them to you here because
they can become out-of-date pretty quick
and so on our website at Rick Adelman
com
we offer a more current list of
information available to you to help you
protect your personal privacy but face
it the days of anonymity are over the
internet knows who you are what you're
doing what you're thinking and who
you're doing all that with it means that
data brokerage is really big business
now it means there are huge investment
opportunities along with privacy risks
and so it's really important that you
learn how to use big data to improve
your investment decisions if you don't
know how to do that make sure you're
working with a financial adviser who
does because that is the truth about
your future that's it for this video
in our next video you'll learn about
robotics industrial robots military BOTS
spots in healthcare even personal robots
will look at drones self-driving and
self flying cars and you'll see why
robotics is the fastest growing industry
in the world this series is based on my
New York Times bestseller The Truth
About Your Future the money guide you
need now later and much later if at any
point you have any questions you can
send them to me by visiting
TheTruthAboutYourFuture.com
thanks for watching