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3/19/2019
1
Penguin Press, 2014
MIT Institute Data, Systems, SocietyMIT Media LaboratoryOxford, Beijing
UN Secretary General World Economic Forum
AT&T, Telefonica, Google
EU, Bejing, Colombia
Better Decisions with Data
Copyright alex pentland 2019, all rights reserved
framework for trusted data
MIT Trust Data Alliancedata insights across multiple private databases with minimum risk
“this will change everything” UN Secretary General’s Office
Copyright 2019 Alex Pentland
European Union Presidency Opening Keynote Speech
• federated data with distributed query• blockchain-based data control• analytics on encrypted data
Participants in trust.mit.edu alliance
3/19/2019
2
key insights:
share answers not data
log everything on blockchain
Copyright alex pentland 2019, all rights reserved
transparent, incorruptable
Output
Inputs
Blockchain
Sandbox
Computation
Verify Identities, Computation
Cer
tifi
ed a
nsw
ers
to v
erif
ied
en
titi
tes
Certified
Op
en A
lgorith
ms
On-chain
Off-chain
CoreID
Copyright alex pentland 2018
OPAL (Open Algorithms) private data for public good
3/19/2019
3
OPAL System: Open Algorithms for Safe, Easy Data Sharing
• Cross organization/ vertical
sharing
• Privacy, consent,
accountability
• Regulatory & compliance
• New incentive models
Open Data: safety vs usefulnessMIT-United Nations Study
exponential fit R2 = 0.93
Reid
en
tification
in
form
ation
ratio
M24
M12
Z12M1
M6
D24
D12
D6
Z24
Z6
D1
Z1
“census” dataresolution is
best!
INDIVIDUAL LEVEL DATAminute-by-minute
CITY LEVEL DATAone year average
Copyright alex pentland 2018
citizen understanding – data literacy
small data – don’t need AI
open data – public and private use
advantages of census level aggregation
obviously secure – trusted data
3/19/2019
4
other examples of data for good
poverty, inequality
transport
infrastructureinvestment
public health
Copyright alex pentland 2018 all rights reserved
work-home network
diversity predicts gdp growth
diverse connections improvepotential for growth
cap
ital
gro
wth
ind
icat
ors
Copyright alex pentland 2018 all rights reserved
3/19/2019
5
Copyright alex pentland 2018 all rights reserved Kai Chong , Mohsen Bahrami, alex pentland
diversity GDP growth
R^2 = 0.45 across three continentsreduction in diversity predicts neighborhood crime
neighborhood amenity investment
ability to evaluate economic impact on neighborhoods
transportation winners and losers
how can we ensure fairness?
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# #
fairness and correctness requirefull, continuous auditability
opalproject.org: national data systems for colombia, senegal
Copyright alex pentland 2019
0 1
Active Fairness
0 1
0 1
Less features
More features
Varying the group-level information budgets enables fair classification without randomization
0 1
0 1
Less info redgroupMore info bluegroup
better decisions and fake news
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7
a potential solution:diversity predicts on-line reputation
(data from Zhihu, similar to Quora)
on
-lin
e re
pu
tati
on
structural diversity increasing ->
incubator success
going to the next level
3/19/2019
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key insights:
share answers not data
log everything on blockchain
never decrypted data
computation on encrypted datatransparent, incorruptible, secure
Output
Inputs
Blockchain
Encrypted Data
Verify Identities, Computation
Cer
tifi
ed a
nsw
ers
to v
erif
ied
en
titi
tes
Certified
Op
en A
lgorith
ms
CoreID
Copyright alex pentland 2018
NO FIREWALL!!!
“This makes is possible to use and maintain data without holding it”
Lawrence Lessig (Harvard Law School Berkman Center) in WSJ
dramatically changes privacy, localization, ownership
3/19/2019
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4.53 4.54 4.55 4.56 4.57 4.58 4.59 4.6 4.61
x 105
4.53
4.54
4.55
4.56
4.57
4.58
4.59
4.6
4.61
x 105
nz = 11228155
Threshold =0.95
Real Time Community Analysis
• Blocks are sub-communities
• Some groups had NO internal direct money transfer!
• We detect the entire “hidden network” around a single fraudulent account
AI on encrypted data
example: bitcoin fraud
De-anonymization (“Identity merging”)Copyright alex pentland 2019, all rights reserved
RETAIL FINANCE INTELLIGENCE
``Endor takes it to a
completely new level’’
Dr. Alan Boehme, CTO
The Coca cola company
“Endor tripled our
loan sales within a
week of deployment”
Ohad Maimon, EVP
Business Strategy
``A revolutionary concept
and a true technological
breakthrough,unmatched by
any competing tool"
CIO, Israel
Intelligence corps
Copyright alex pentland 2019, all rights reserved
AI for Encrypted DataENDOR:
Alex Pentland [email protected]