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This is the point where it is entirely appropriate to be skeptical. For almost 60 years, AI researchers have predicted that AI is right around the corner, yet until a few years ago it seemed as stuck in the future as ever. There was even a term coined to describe this era of meager results and even more meager research funding: the AI winter. Has anything really changed?

Yes. Three recent breakthroughs have unleashed the long-awaited arrival of artificial intelligence:

1. Cheap Parallel Computation

Thinking is an inherently parallel process. Billions of neurons in our brain fire simultaneously to create synchronous waves of computation. To build a neural network—the primary architecture of AI software—also requires many different processes to take place simultaneously. Each node of a neural network loosely imitates a neuron in the brain—mutually interacting with its neighbors to make sense of the signals it receives. To recognize a spoken word, a program must be able to hear all the phonemes in relation to one another; to identify an image, it needs to see every pixel in the context of the pixels around it—both deeply parallel tasks. But until recently, the typical computer processor could ping only one thing at a time.

That began to change more than a decade ago, when a new kind of chip, called a graphics processing unit, or GPU, was devised for the intensely visual—and parallel—demands of video games, in which millions of pixels in an image had to be recalculated many times a second. That required a specialized parallel computing chip, which was added as a supplement to the PC motherboard. The parallel graphics chips worked fantastically, and gaming soared in popularity. By 2005, GPUs were being produced in such quantities that they became so cheap they were basically a commodity. In 2009, Andrew Ng and a team at Stanford realized that GPU chips could run neural networks in parallel.

That discovery unlocked new possibilities for neural networks, which can include hundreds of millions of connections between their nodes. Traditional processors required several weeks to calculate all the cascading possibilities in a neural net with 100 million parameters. Ng found that a cluster of GPUs could accomplish the same thing in a day. Today neural nets running on GPUs are routinely used by cloud-enabled companies such as Facebook to identify your friends in photos or for Netflix to make reliable recommendations for its more than 50 million subscribers.

2. Big Data

Every intelligence has to be taught. A human brain, which is genetically primed to categorize things, still needs to see a dozen examples as a child before it can distinguish between cats and dogs. That’s even more true for artificial minds. Even the best-programmed computer has to play at least a thousand games of chess before it gets good. Part of the AI breakthrough lies in the incredible avalanche of collected data about our world, which provides the schooling that AIs need. Massive databases, self-tracking, web cookies, online footprints, terabytes of storage, decades of search results, Wikipedia, and the entire digital universe became the teachers making AI smart. Andrew Ng explains it this way: “AI is akin to building a rocket ship. You need a huge engine and a lot of fuel. The rocket engine is the learning algorithms but the fuel is the huge amounts of data we can feed to these algorithms.”

3. Better Algorithms

Digital neural nets were invented in the 1950s, but it took decades for computer scientists to learn how to tame the astronomically huge combinatorial relationships between a million—or a hundred million—neurons. The key was to organize neural nets into stacked layers. Take the relatively simple task of recognizing that a face is a face. When a group of bits in a neural net is found to trigger a pattern—the image of an eye, for instance—that result (“It’s an eye!”) is moved up to another level in the neural net for further parsing. The next level might group two eyes together and pass that meaningful chunk on to another level of hierarchical structure that associates it with the pattern of a nose. It can take many millions of these nodes (each one producing a calculation feeding others around it), stacked up to 15 levels high, to recognize a human face. In 2006, Geoff Hinton, then at the University of Toronto, made a key tweak to this method, which he dubbed “deep learning.” He was able to mathematically optimize results from each layer so that the learning accumulated faster as it proceeded up the stack of layers. Deep-learning algorithms accelerated enormously a few years later when they were ported to GPUs. The code of deep learning alone is insufficient to generate complex logical thinking, but it is an essential component of all current AIs, including IBM’s Watson; DeepMind, Google’s search engine; and Facebook’s algorithms.

This perfect storm of cheap parallel computation, bigger data, and deeper algorithms generated the 60-years-in-the-making overnight success of AI. And this convergence suggests that as long as these technological trends continue—and there’s no reason to think they won’t—AI will keep improving.

As it does, this cloud-based AI will become an increasingly ingrained part of our everyday life. But it will come at a price. Cloud computing empowers the law of increasing returns, sometimes called the network effect, which holds that the value of a network increases much faster as it grows bigger. The bigger the network, the more attractive it is to new users, which makes it even bigger and thus more attractive, and so on. A cloud that serves AI will obey the same law. The more people who use an AI, the smarter it gets. The smarter it gets, the more people who use it. The more people who use it, the smarter it gets. And so on. Once a company enters this virtuous cycle, it tends to grow so big so fast that it overwhelms any upstart competitors. As a result, our AI future is likely to be ruled by an oligarchy of two or three large, general-purpose cloud-based commercial intelligences.

In 1997, Watson’s precursor, IBM’s Deep Blue, beat the reigning chess grand master Garry Kasparov in a famous man-versus-machine match. After machines repeated their victories in a few more matches, humans largely lost interest in such contests. You might think that was the end of the story (if not the end of human history), but Kasparov realized that he could have performed better against Deep Blue if he’d had the same instant access to a massive database of all previous chess moves that Deep Blue had. If this database tool was fair for an AI, why not for a human? Let the human mastermind be augmented by a database just as Deep Blue’s was. To pursue this idea, Kasparov pioneered the concept of man-plus-machine matches, in which AI augments human chess players rather than competes against them.

Now called freestyle chess matches, these are like mixed martial arts fights, where players use whatever combat techniques they want. You can play as your unassisted human self, or you can act as the hand for your supersmart chess computer, merely moving its board pieces, or you can play as a “centaur,” which is the human/AI cyborg that Kasparov advocated. A centaur player will listen to the moves suggested by the AI but will occasionally override them—much the way we use the GPS navigation intelligence in our cars. In the championship Freestyle Battle 2014, open to all modes of players, pure chess AI engines won 42 games, but centaurs won 53 games. Today the best chess player alive is a centaur. It goes by the name of Intagrand, a team of several humans and several different chess programs.