University of Rome La Sapienza

1. 2022 University of Rome, La Sapienza
AI and Silicon Valley:
A Service Science Perspective
Jim Spohrer
Retired Executive – IBM and Apple
UIDP Senior Fellow & Member ISSIP.org
Questions: spohrer@gmail.com
Twitter: @JimSpohrer
LinkedIn: https://www.linkedin.com/in/spohrer/
Slack: https://slack.lfai.foundation
Presentations online at: https://slideshare.net/spohrer
Thanks to Maria Colurcio and Cristina Mele for the invitation
to discuss Service Provision
Thursday October 27, 2022, 11:30-13:00 Naples Time
Highly recommend:
Humankind: A Hopeful History
By Dutch Historian, Rutger Bregman
<- Thanks
To Ray Fisk
For suggesting
this book, see
My summary here.

2. Jim Spohrer, Board of Directors, ISSIP.org
Jim Spohrer serves on the Board of Directors of the International Society of
Service Innovation Professionals, and as a contributor to the Linux Foundation
AI and Data Foundation. He is a retired IBM Executive since July 2021, and
previously directed IBM’s open-source Artificial Intelligence developer
ecosystem effort, was CTO IBM Venture Capital Group, co-founded IBM
Almaden Service Research, and led IBM Global University Programs. After his
MIT BS in Physics, he developed speech recognition systems at Verbex (Exxon)
before receiving his Yale PhD in Computer Science/AI. In the 1990’s, he attained
Apple Computers’ Distinguished Engineer Scientist and Technologist role for
next generation learning platforms. With over ninety publications and nine
patents, he received the Christopher Loverlock Career Contributions to the
Service Discipline award, Gummesson Service Research award, Vargo and Lusch
Service-Dominant Logic award, Daniel Berg Service Systems award, and a
PICMET Fellow for advancing service science. Jim was elected and previously
served as LF AI & Data Technical Advisory Board Chairperson and ONNX Steering
Committee Member (2020-2021), UIDP Senior Fellow for contributions to
industry-university collaborations.
2
From 2002 - 2009, Jim co-founded
IBM Almaden Service Research (ASR)
ASR mission - advance service science
and people-centered, data-driven
service innovation
Who I am

3. Who I am: Take 2
The Three Ages of Man (Giorgione)
Thanks to Alan Hartman for kind inspiration (slides) (recording)
Service is an actor applying resources (e.g., knowledge) to benefit another
Service system entities are responsible actors that give and get service
(e.g., people, businesses, universities, nations, etc.)
Service science studies service systems as an evolving ecology
of responsible actors that interact and change.
Service innovations improve win-win interaction and change
in business and society
Service systems are dynamic configurations of four types of resources

4. What I study
Service Science and Open Source AI – Trust is key to both
Service
Science
Artificial
Intelligence
Trust:
Value Co-Creation/Collaboration
Responsible Entities Learning to Invest
Transdisciplinary Community
Trust:
Secure, Fair, Explainable
Machine Collaborators
Open Source Communities

5. Two disciplines: Two approaches to the future
Artificial Intelligence is almost seventy-years-old discipline in computer
science that studies automation and builds more capable technological
systems. AI tries to understand the intelligent things that people can do
and then does those things with technology. (https://deepmind.com/about “...
we aim to build advanced AI - sometimes known as Artificial General Intelligence (AGI) - to
expand our knowledge and find new answers. By solving this, we believe we could help
people solve thousands of problems.”)
Service science is an emerging transdiscipline not yet twenty-years- old
that studies transformation and builds smarter and wiser socoi-
technical systems – families, businesses, nations, platforms and other
special types of responsible entities and their win-win interactions that
transform value co-creation and capability co-elevation mechanisms
that build more resilient future versions of themselves – what we call
service systems entities. Service science tries to understand the
evolving ecology of service system entities, their capabilities,
constraints, rights, and responsibilities, and then then seeks to improve
the quality of life of people (present/smarter and future/wiser) in those
service systems.
26-30 July 2015 3rd International Conference on The Human Side of Service Engineering
5
Artificial Intelligence
Automation
Generations of machines
Service Science
Transformation
Generations of people
(responsible entities)
Service systems are dynamic configurations of people,
technology, organizations, and information, connected
internally and externally by value propositions, to other
service system entities. (Maglio et al 2009)

6. 6
What is a Responsible Service System Entity?
… customers/practitioners just name <your favorite provider>
… learners just name <your favorite role model>
Economics, Law, & Public Policy
Social & Behavioral Sciences
Design/
Cognitive Science
Systems
Engineering &
Human Factors
Operations
Computer Science/
Artificial Intelligence
Marketing
“a service system is a human-made system
to improve value co-creation interactions;
a dynamic configuration of resources
interconnected by value propositions.”
“service science is
the transdisciplinary study of
the evolving ecology of
responsible service systems entities
& their value-cocreation and
capability co-elevation
interactions.”
What is Service Science?
…researchers just name <your favorite discipline>
…educators just name <your favorite aha moment>

7. Future of AI
• What is the timeline for solving AI and IA?
• TBD: When can a CEO/anyone buy AI capability <X> for price <Y>?
• Who are the leaders driving AI progress?
• What will the biggest benefits from AI be?
• What are the biggest risks associated with AI, and are they real?
• What other technologies may have a bigger impact than AI?
• What are the implications for stakeholders?
• How should we prepare to get the benefits and avoid the risks?
10/28/2022 (c) IBM 2020, Cognitive Opentech Group 7

8. Timeline: Every 20 years,
compute costs are down by 1000x
• Cost of Digital Workers
• Moore’s Law can be thought of as
lowering costs by a factor of a…
• Thousand times lower
in 20 years
• Million times lower
in 40 years
• Billion times lower
in 60 years
• Smarter Tools (Terascale)
• Terascale (2017) = $3K
• Terascale (2020) = ~$1K
• Narrow Worker (Petascale)
• Recognition (Fast)
• Petascale (2040) = ~$1K
• Broad Worker (Exascale)
• Reasoning (Slow)
• Exascale (2060) = ~$1K
8
10/28/2022 (c) IBM 2017, Cognitive Opentech Group
2080
2040
2000
1960
$1K
$1M
$1B
$1T
2060
2020
1980
+/- 10 years
$1
Person Average
Annual Salary
(Living Income)
Super Computer
Cost
Mainframe Cost
Smartphone Cost
T
P
E
T P E
AI Progress on Open Leaderboards
Benchmark Roadmap to solve AI/IA

9. Timeline: GDP/Employee
10/28/2022 (c) IBM 2017, Cognitive Opentech Group 9
(Source)
Lower compute costs translate into increasing productivity and GDP/employees for nations
Increasing productivity and GDP/employees should translate into wealthier citizens
AI Progress on Open Leaderboards
Benchmark Roadmap to solve AI/IA

10. Timeline: Leaderboards Framework
AI Progress on Open Leaderboards - Benchmark Roadmap
Perceive World Develop Cognition Build Relationships Fill Roles
Pattern
recognition
Video
understanding
Memory Reasoning Social
interactions
Fluent
conversation
Assistant &
Collaborator
Coach &
Mediator
Speech Actions Declarative Deduction Scripts Speech Acts Tasks Institutions
Chime Thumos SQuAD SAT ROC Story ConvAI
Images Context Episodic Induction Plans Intentions Summarization Values
ImageNet VQA DSTC RALI General-AI
Translation Narration Dynamic Abductive Goals Cultures Debate Negotiation
WMT DeepVideo Alexa Prize ICCMA AT
Learning from Labeled Training Data and Searching (Optimization)
Learning by Watching and Reading (Education)
Learning by Doing and being Responsible (Exploration)
2018 2021 2024 2027 2030 2033 2036 2039
10/28/2022 (c) IBM 2017, Cognitive Opentech Group 10
Which experts would be really surprised if it takes less time… and which experts really surprised if it takes longer?
Approx.
Year
Human
Level ->
+3
See: https://paperswithcode.com/sota

11. Who is winning
10/28/2022 (c) IBM 2017, Cognitive Opentech Group 11
https://www.technologyreview.com/s/608112/who-is-winning-the-ai-race/

12. Robots by Country
• Industrial robots per 10,000 people by country
10/28/2022 IBM #OpenTechAI 12
34

13. AI Benefits
• Access to expertise
• “Insanely great” labor productivity for trusted service providers
• Digital workers for healthcare, education, finance, etc.
• Better choices
• ”Insanely great” collaborations with others on what matters most
• AI for IA = Augmented Intelligence and higher value co-creation interactions
10/28/2022 (c) IBM 2017, Cognitive Opentech Group 13

14. AI Risks
• Job Loss
• Shorter term bigger risk
= de-skilling
• Super-intelligence
• Shorter term bigger risk
= bad actors
10/28/2022 (c) IBM 2017, Cognitive Opentech Group 14

15. Other Technologies: Bigger impact? Yes.
• Augmented Reality (AR)/
Virtual Reality (VR)
• Game worlds
grow-up
• Blockchain/
Security Systems
• Trust and security
immutable
• Advanced Materials/
Energy Systems
• Manufacturing as cheap,
local recycling service
(utility fog, artificial leaf, etc.)
10/28/2022 (c) IBM 2017, Cognitive Opentech Group 15

16. “The best way to predict the future is to inspire the
next generation of students to build it better”
Digital Natives Transportation Water Manufacturing
Energy Construction ICT Retail
Finance Healthcare Education Government

17. 10 million minutes of experience
10/28/2022 Understanding Cognitive Systems 17

18. 2 million minutes of experience
10/28/2022 Understanding Cognitive Systems 18

19. IA Progression – Tool, Assistant, Collaborator, Coach, Mediator
10/28/2022 (c) IBM MAP COG .| 19
Rouse & Spohrer (2018)
Siddike, Spohrer, Demirkan, Kodha (2018)
Araya (2018)
Spohrer& Siddike (2018)

20. Intelligence Augmentation (IA) =
Socio-Technical Extension Factor on Capabilities
• Engelbart (1962)
• Spohrer & Engelbart (2002)
10/28/2022 (c) IBM MAP COG .| 20
Dedicated to Douglas E. Engelbart, Inventor
The Mouse (Pointing Device)
The Mother of All Demos
Bootstrapping Practice/Augmentation Theory
Note: Bush (1945) and Licklider (1960) created funding programs that benefitted Engelbart in building working systems.

21. IA as Socio-Technical Extension Factor on Capabilities & Values
IA (human values) is not AI (technology capability)
Difference 1: IA leads to more capable people even when scaffold removed
Difference 2: IA leads to more responsible people to use wisely the capabilities
10/28/2022 (c) IBM MAP COG .| 21
Superminds
Malone (2018)
Things that Make
Us Smart
Norman (1994)
Worldboard
Augmented Perception
Spohrer (1999)
Bicycles for the Mind
Kay & Jobs (1984)
Techno-Extension Factor
Measurement
& Accelerating
Socio-Technical Design Loop
Kline (1996)

22. Today’s Talk

23. Better Models (Spohrer, Maglio, Vargo, Warg 2022)
• Increasing complex, interconnected world
• All models are wrong, some are useful
• Better models are needed
• of the world – both physical, social, virtual
(science)
• in people and win-win interactions (logics)
• of organization and win-win change (architecture)
• in technology (AI)
• Better models for better investing
• “We get the future we invest in, so responsible
actors must learn to invest wisely and
systematically in improved win-win interaction
and change.”
10/28/2022 Jim Spohrer (ISSIP.org) 23

24. From Human-Centered to Humanity-Centered Design (Norman 2023)
• Human-Centered Design
1. Solve the core, root issues, not just the
problem as presented (which is often the
symptom, not the cause).
2. Focus on the people.
3. Take a systems point of view, realizing
that most complications result from the
interdependencies of the multiple parts.
4. Continually test and refine the proposed
designs to ensure they truly meet the
concerns of the people for whom they
are intended.
10/28/2022 Jim Spohrer (ISSIP.org) 24
• Humanity-Centered Design
1. Solve the core, root issues, not just the
problem as presented (which is often the
symptom, not the cause).
2. Focus on the entire ecosystem of people, all
living things, and the physical environment.
3. Take a long-term, systems point of view,
realizing that most complications result from
the interdependencies of the multiple parts
and that many of the most damaging impacts
on society and the ecosystem reveal
themselves only years or even decades later.
4. Continually test and refine the proposed
designs to ensure they truly meet the concerns
of the people and ecosystem for whom they
are intended.
5. Design with the community and as much as
possible support designs by the community.
Professional designers should serve as
enablers, facilitators, and resources, aiding
community members to meet their concerns.

25. 10/28/2022 25
1955 1975 1995 2015 2035 2055
Better Building Blocks

26. Preamble: On Value
• Service Science
• S-D Logic (Vargo & Lusch 2016)
• Service is the application of resources (e.g.,
knowledge) for the benefit of another
• Value … uniquely … determined by beneficiary
• Improvement processes for service system
innovation and value cocreation
• Learning to invest systematically to…
• Improve win-win interaction
• Improve win-win change
• Businesses as service systems
• Technology platforms, energy, investing, healthcare
• Nations as service systems
• Investments in upskilling people
• Top ranked global universities
• Population (+ capital-technology-wealth)
• A Brief History of Value
• Family (GDP of tribes)
• Cities (GDP of cities)
• Nations (GDP of nations)
• Businesses (GDP of AI-powered platforms that help
people interact, upskill, upenergy, upwealth,
uphealth, etc.)
Value cocreation is accelerated when large numbers of highly skilled people with advanced technology have a safe, ethical, and sustainable environment for win-win interaction and change.
Jim Spohrer (ISSIP) 26
9/2/22

27. Why the complex unifiable systems (holistic) trend is important to future sustainability
Business and societal systems and supply chains are increasingly complex and interconnected.
Real-world problems do not respect discipline boundaries.
Scalable solutions require many schools of practice working together, and current solutions may have unintended
consequences, short-term or longer-term, especially if perspectives are not invited/considered.
Technological progress improved the scalability of agriculture and manufacturing, and next all types of service will be
made more scalable (and currently, energy intensive) by future AI capabilities and progress.
A small sampling of schools and disciplines below – more exist  - apologies for not adding yours to this summary.
School of practice for
Physical Sciences & Engineering
Technology
School of practice for
Behavioral $ Social Sciences,
Humanities & Arts
People
School of practice for
Managerial Sciences &
Entrepreneurship
Information & Organizations
Comp. Sci./AI
HCI/Robotics
Electrical &
Mech. Eng.
Systems
Engineering
Economics Public Policy
& Law
Design Information
Systems
Operations
Research
Marketing &
Strategy
Read enough of Kline (1995) to understand conceptual foundation of multidisciplinary thinking
and the techno-extension factor and the accelerating soci—technical system design loop concepts.
10/28/2022 National Academy - Service Systems and AI 27

28. Why upskilling with AI trend is important to systems thinking
Talent development is moving from I to T to X (eXtended with AI)
National Academy - Service Systems and AI 28
6 T-shape Skills
Knowledge Areas
To be eXtended
By AI tools:
1. Disciplines
2. Systems
3. Cultures
4. Technologies
5. Practices
6. Mindsets
10/28/2022

29. AI Tools to Experiment with Today
• #1 Magic Eraser
• #2 Craiyon
• #3 Rytr
• #4 Thing Translator
• #5 Autodraw
• #6 Fontjoy
• #7 Talk to Book
• #8 This Person Does Not Exist
• #9 Namelix
• #10 Let's Enhance
Thanks to @TessaRDavis
for compiling this list: “Service providers
will not be
replaced by AI,
but service providers
who do not use AI
will be replaced by
those who do.”
National Academy - Service Systems and AI 29
Try at least two
from the list
before Oct. 17.
What do you think?
And Stable Diffusion
Every person in a role in an organization is a service provider.
10/28/2022

30. Read Wakefield
(2020)
enough to
understand what a
”digital twin” of
you might be like in
the future decades
with very advanced
AI capabilities.
Also see Rouse
(2018; 2022) ”Life
with a Cognitive
Assistant.”
National Academy - Service Systems and AI 30
AI Tools
in coming
decades…
10/28/2022

31. Predict the Timeline: GDP/Employee
National Academy - Service Systems and AI 31
(Source)
Lower compute costs translate into increasing productivity and GDP/employees for nations
Increasing productivity and GDP/employees should translate into wealthier citizens
AI Progress on Open Leaderboards
Benchmark Roadmap to solve AI/IA
Alistair Nolan (OECD AI for Science Productivity): “It has been stated that the number of engineers proclaiming the end of Moore's Law doubles every two years.”
Rouse WB, Spohrer JC. (2018) Automating versus augmenting intelligence. Journal of Enterprise Transformation. 2018 Apr 3;8(1-2):1-21.
Read Rouse & Spohrer (2018)
enough to understand this slide
including what ”exascale” means
10/28/2022

32. Call to Action
• Responsible actors need to learn to invest wisely in
getting the future service innovations we want with AI
– guided by “Service Innovation Roadmaps (SIRs).”
National Academy - Service Systems and AI 32
Read enough of IfM and IBM (2008)
to understand what a “Service Innovation
Roadmap (SIR)” is – and who should be
creating them.
10/28/2022

33. Discussion
• Are you positive or negative about AI?
• If positive, are you using any specific AI tools today?
• See list of AI tools to try on a previous slide
• How are you investing in upskilling with AI?
• If negative, do you have a specific concern (“ditch to avoid”) – for example…?
• AI will take away my job
• AI will be used primarily by “bad actors” for mischief
• Or used by social media platforms to generate more clicks/attention thru angry
reactions
• AI will try to take over people and planet
• AI will deskill and weaken people over time
• … or other concerns about AI?
• Do you believe responsible actors (e.g., people, businesses,
universities, governments, etc.) are learning to to invest
systematically and wisely in getting the future we want? If not, why
not – what is needed?
• Join ISSIP.org (free for individuals) if you would like to continue the
conversation!
National Academy - Service Systems and AI 33
Read enough of pages 45-54 of Spohrer, Maglio, Vargo, Warg (2022) to formulate an
opinion on the topic of “investing wisely to get the future service systems we want.”
10/28/2022

34. References
• Araya D (2018) Augmented Intelligence: Smart Systems and the Future of Work and Learning. Peter Lang International Academic Publishers; 2018 Sep 28.
• Bush V (1945) As we may think. The Atlantic Monthly. 1945 Jul 1;176(1):101-8.
• Engelbart D (1962) Augmenting human intellect. Summary report AFOSR-3223 under Contract AF. 1962 Oct;49(638):1024.
• Gardner P, Maietta HN (2020) Advancing Talent Development: Steps Toward a T-Model Infused Undergraduate Education. Business Expert Press. URL:
https://www.amazon.com/Advancing-Talent-Development-Undergraduate-Education/dp/1951527062
• Kay A, Jobs S (1984) Wheels for the Mind. Apple Computer.
• Kline SJ (1995) Conceptual foundations for multidisciplinary thinking. Stanford University Press; 1995.
• Licklider JC (1960) . Man-computer symbiosis. IRE transactions on human factors in electronics. 1960 Mar(1):4-11.
• Malone TW (2018) Superminds: The surprising power of people and computers thinking together. Little, Brown Spark; 2018 May 15.
• Norman D (1994) Things that make us smart: Defending human attributes in the age of the machine. Diversion Books; 2014 Dec 2.
• Rouse WB, Spohrer JC (2018) Automating versus augmenting intelligence. Journal of Enterprise Transformation. 2018 Feb 7:1-21.
• Siddike MA, Spohrer J, Demirkan H, Kohda Y (2018) A Framework of Enhanced Performance: People's Interactions With Cognitive Assistants. International Journal
of Systems and Service-Oriented Engineering (IJSSOE). 2018 Jul 1;8(3):1-7.
• Spohrer JC (1998) Information in places. IBM Systems Journal. 1999;38(4):602-28.
• Spohrer JC, Engelbart DC (2004) Converging technologies for enhancing human performance: Science and business perspectives. Annals of the New York Academy
of Sciences. 2004 May;1013(1):50-82.
• Spohrer J, Siddike (2018) The Future of Digital Cognitive Systems: Tool, Assistant, Collaborator, Coach, Mediator. In Ed. Araya D. Augmented Intelligence: Smart
Systems and the Future of Work and Learning. Peter Lang International Academic Publishers; 2018 Sep 28.
• Spohrer J (2020) Online Platform Economy and Gig Workers: A USA Perspective. Presentation.
• Spohrer J & Maglio PP (2006) Service Science Management and Engineering (SSME): An Emerging Discipline. IBM Presentation.
10/28/2022 (c) IBM MAP COG .| 34

35. Additional Resources
• Arthur WB (2019) Foundations of Complexity Economics. Nature Review Physics.
• Dietrich BL, Plachy EC, Norton MF (2014) Analytics Across the Enterprise.
• Donofrio N, DeMarco M (2022) If Nothing Changes, Nothing Changes: The Nick Donofrio.
• Fleming M (2022) Breakthrough: The Growth Revolution (in an Era of Artificial Intelligence and Worker Engagement).
• IfM and IBM (2008) Succeeding through service innovation: A service perspective for education, research, business and government.
• Larson RC (2022) Model Thinking for Everyday Life Working Wonders with a Blank Sheet of Paper. (Coming Soon).
• Lebovitz S, Lifshitz-Assaf H, Levina N (2022) To Engage or Not to Engage with AI for Critical Judgments: How Professionals Deal with Opacity When Using AI for Medical Diagnosis. Organization Science.
• Madhavan G, Poste G, Rouse W (2020) Complex Unifiable System. Editors' Note: Systemic Vistas. Winter 2020. The Bridge.
• Maglio PP, Kieliszewki CA, Spohrer JC (2010) Handbook of Service Science
• Maglio PP, Kieliszewki CA, Spohrer JC, Lyons K, Patrício L, Sawatani Y (2019) Handbook of Service Science, Vol II
• McDermid JA (2022) Safe, Ethical & Sustainable: A Mantra for All Seasons?
• Munn L (2022) The uselessness of AI ethics.
• Norman D (2023) Design for a Better World: Meaningful, Sustainable, Humanity Centered
• Rouse WB (2018) Life with a cognitive assistant. (2022) Emily 2.0..
• Rouse WB, Spohrer JC (2018) Automating versus augmenting intelligence. Journal of Enterprise Transformation.
• Schneiderman (2022) Human-Centered AI.
• Spohrer J (2017) Imagination Challenge: Quantify and graph cost of digital workers and GDP per employee USA from 1960-2080.
• Spohrer J, Maglio, PP (2009) Service Science: Toward a Smarter Planet. In Service Engineering.
• Spohrer J, Maglio PP, Vargo SL, Warg M (2022) Service in the AI Era: Science, Logic, and Architecture Perspectives.
• US 110th Congress (2007) SEC. 1005. STUDY OF SERVICE SCIENCE.
• Vargo SL, Lusch RF (2016) Institutions and Axioms: An Extension and Update of Service-Dominant Logic. JAMS.
• Wakefield J (2022) Why you may have a thinking digital twin within a decade. BBC News Online.
• West S, Meierhofer J, Mangla U (2022) Smart Services Summit: Smart Services Supporting the New Normal.
• West S, Stoll O, Muller-Csernetzky P (2022) A Handbook for Smart Service Design - The design of Smart Services in a world of people, process and things.
• Wladalsky-Berger I (2016) The Continuing Evolution of Service Science. (2019) The Increasing Demand for Hybrid, “T-Shaped” Workers . (2021) The Supply Chain Economy - A New Categorization of the US Economy (2022) A New
Measurement Framework for the Digital Economy. (2022) Foundation Models: AI’s Exciting New Frontier.
Service Systems Engineering in the Human-Centered AI Era 35