Background and Introduction:
Dr. Zhang Hongjiang, a renowned scholar, introduces Allen Kay, a computer scientist and visionary, during a BAAI 2020 conference. Allen Kay, born in 1940, grew up in an environment where science and art coexisted, shaping his unique perspective. Kay’s accomplishments include developing computer graphics interfaces and face-to-face programming, earning him the 2003 Turing Prize.

The Big How: Tackling Large Challenges:
Kay emphasizes the importance of addressing large challenges, drawing insights from historical efforts. He presents a white paper examining maximum efforts on intense, critical challenges in the past, aiming to learn from them and educate policymakers.

Contextual Factors Influencing Problem-Solving:
Kay highlights the need to consider the larger culture and context when tackling problems. He emphasizes duties to society, bringing up the next generation, understanding worldviews, and expanding our emotional connections. He stresses the importance of understanding basic needs and the role of richness in expanding our emotional connections.

12 Critical Issues Facing Humanity:
Kay identifies 12 critical issues that require attention, including health, the planet’s well-being, and climate change. He highlights the need to focus on all 12 issues and avoid distractions from any one issue. He emphasizes the urgency of addressing these issues, considering the impact on future generations.

Imagination and Thinking Beyond Conventional Norms:
Kay emphasizes the need for imagination and thinking beyond conventional norms to solve complex problems. He quotes Einstein’s famous line: “We cannot solve our problems with the same levels of thinking that we use to create them.” He encourages embracing creativity and learning to think skillfully to address challenges effectively.

The Role of Crazy Ideas and Embracing Creativity:
Kay stresses the importance of embracing ideas that are considered “crazy” or outside of societal norms. He highlights the need to learn how to think skillfully and creatively to generate innovative solutions. Kay emphasizes the importance of fostering an environment that encourages creative thinking and experimentation.

The Current State of Human Perception:
Most people think of the world as a memory from childhood, which is outdated and inaccurate. We wear “glasses” that prevent us from seeing the world as it is now. We need to imagine the future based on the current state of things, considering potential threats like pandemics and climate change.

Science as an Imagination Amplifier:
Science expands our imagination, but most people, including politicians, are not scientists. They dislike thinking outside their normal patterns. When a threat is recognized by the public and politicians, there is usually a significant response.

Historical Examples of Big Projects Driven by Threats:
Empire State Building: Completed in less than a year during the Great Depression to boost morale and demonstrate building capabilities. World War II and Cold War Projects: Atomic Energy, Bletchley Park, and radar development were all funded due to threats posed by these conflicts. ARPA: Established in 1957 with Cold War funding, ARPA later funded the internet.

The Current Threat of Climate Change:
Climate change is a significant threat that requires urgent action. We need to use our imagination and scientific knowledge to address this threat and envision a better future.

Key Points:
Xerox PARC was one of the research groups funded by Xerox to conduct non-structured research, combining scientific research with practical engineering. The success of research in the field of computers in the U.S. came from the process of combining research and engineering learned from the Cold War. The unrestricted spending without top-down supervision generated immense wealth, far more than the outlay, although it was spent to prepare for a war. Most industries and technologies prominent today originated from World War II. The internet and many technologies at PARC were results of prior ARPA research. Eight and a half inventions from PARC, including the internet, were created by just 25 researchers at a cost of $15 million per year, generating a return of over $40 trillion. Crazy funding of research that nobody believes in can lead to enormous returns, both monetarily and for society. Xerox made billions from the laser printer, recouping the cost of PARC many times over. The goodness of the research results correlates most strongly with the goodness of the funders, not in terms of money but in terms of their willingness to support unrestricted research.

Background:
Traditional funding approaches focus on top-down goals, with making money as the primary objective. Goodness of funders lies in their understanding of the process of generating novel and transformative ideas.

Visionary Funding:
J.C.R. Licklider, the founder of ARPA IPTO, had a vision for computers as interactive intellectual amplifiers, universally networked worldwide. He emphasized visions over specific goals, providing researchers with a sense of direction without constraining their creativity.

Magnetic Field Analogy:
Visions act like magnetic fields that attract researchers towards a common goal. Researchers can sense these magnetic fields and align their work accordingly, leading to diverse approaches and solutions.

Retreating from Goals to Visions:
When facing challenges, it’s essential to step back from specific goals and problems. Visions provide a broader perspective, allowing for wider thinking and the invention of new contexts for solutions.

Historical Context:
The Cold War and the Sputnik crisis led to the establishment of ARPA in 1957. ARPA directors were scientists, not bureaucrats, ensuring a focus on scientific advancement rather than political agendas.

Scientific Statesmen:
ARPA directors stood up to Congress, advocating for the broader societal and cultural benefits of research rather than immediate relevance to the Department of Defense. They prioritized scientific progress and service to the country over personal job security.

Trust-Based Funding:
Bob Taylor, a researcher at ARPA, secured funding for the internet without a formal proposal. This demonstrates the power of trust between funders and researchers, enabling the pursuit of ambitious and transformative ideas.

Xerox PARC:
Bob Taylor moved from ARPA to Xerox PARC, bringing the vision-driven funding approach to the industrial research lab. This led to the hiring of talented researchers and the development of groundbreaking technologies, including the graphical user interface and the mouse.

Responsibility in Funding:
Being responsible as a funder does not mean controlling the research process. Funders should recognize their limitations in understanding the intricacies of research and trust the expertise of researchers. Top-down approaches stifle creativity and prevent groundbreaking discoveries.

Supporting Great People:
Great people come up with great goals. The role of funders is to support these individuals and manage the resources necessary to bring their visions to fruition.

Unusual Research Funding:
Top-down control kills unusual research. Usual research funding sources, like NSF and Bell Labs, are not effective for funding unusual research. Unusual funders are needed to support unusual research.

Unusual Research Management:
Unusual research managers are needed to oversee unusual research projects. Unusual research managers should be able to identify and support talented researchers. Examples of unusual research managers include Licklider, Sutherland, and Taylor.

Unusual Researchers:
Unusual researchers are easier to find than unusual funders and managers. Unusual researchers are one in a hundred thousand, one in a million, or one in 10 million. Unusual researchers can come from various backgrounds, including top scientists, engineers, and artists.

Merging Different Kinds of Thinking:
The real process of innovation is to fluidly merge all the different kinds of thinking. This includes merging right-brain and left-brain thinking, as well as aesthetic and logical thinking.

Growing the Next Generation of Researchers:
ARPA invested in growing the next generation of researchers. This was seen as a key research result, even though it took 10-20 years to see the benefits. Xerox PARC was largely staffed by researchers who had been supported by ARPA.

Mad Money:
Mad money is money that can be spent on a whim, without a specific purpose. Mad money is essential for supporting unusual research. Organizations that are too focused on planning and budgeting will not have mad money.

Funding for Research and Development (R&D):
R&D in companies typically represents 5% to 15% of revenues, with most allocated to product development. “Mad money” refers to a small portion of R&D funding set aside for unconventional and high-risk projects without immediate return on investment. This “mad money” typically ranges from 1% to 5% of the total R&D budget.

The Potential of Mad Money for Countries:
For large countries like Japan, Germany, China, and the US, R&D spending can range from $100 billion to $500 billion annually. Applying the same 1% to 5% “mad money” ratio, these countries could allocate $1 billion to $5 billion per year for unconventional R&D projects. This level of funding could support 66 to 1600 Xerox PARC-like research centers, which have historically driven significant technological advancements.

The Problem of Insanity:
Albert Einstein’s quote, “Insanity is doing the same thing over and over and expecting different results,” highlights the need for unconventional approaches to address pressing global challenges. The traditional approach to R&D has not yielded sufficient results in addressing critical issues.

Barriers to Following Good R&D Advice:
Despite compelling evidence, many individuals and organizations struggle to implement effective R&D strategies. The “six core biases” or “ostrich paradox” refers to psychological barriers that prevent people from taking action. Confirmation bias, the tendency to favor evidence that supports existing beliefs, is one example of these biases. The ostrich syndrome, the tendency to ignore or downplay threats, is another example.

Fight or Flight Response:
The fight-or-flight response, a natural instinct in mammals, influences human behavior in dealing with challenges. This response can lead to avoidance or denial of threats, hindering proactive action.

Threats and Actions:
The Cold War and the perceived threat of the Soviet Union drove action and progress in certain areas, such as radar development. The current pandemic has caused significant economic and personal distress, but it remains to be seen if it will serve as a catalyst for positive change and action. Government responses to threats and crises can vary widely, as seen in the differing approaches of New Zealand and the United States to the pandemic.

Historical Perspective on AI Development:
The addition of the “D” to ARPA (Advanced Research Projects Agency) changed its processes and shifted its focus towards securing funding from companies, leading to the creation of Xerox PARC. The removal and subsequent reinstatement of the “D” in the 1990s highlights the changing priorities and funding mechanisms in the field.

Critique of AI Research:
Alan Kay criticizes the current state of AI research, arguing that it has focused on narrow subsets of the field and neglected the pursuit of true general AI. He emphasizes the importance of understanding the cognitive aspects of intelligence and the need for a user interface that aligns with human understanding and common sense.

Recommendations for AI Researchers:
Kay urges young researchers to take the term “intelligence” seriously and set high thresholds for what it means in the context of AI. He encourages them to avoid writing papers on uninteresting topics and to focus on breakthroughs that challenge the orthodoxy of the field. He warns against the potential disaster of funders omitting funding for those who can make breakthroughs due to the narrow focus of current research.

Personal Experience at Xerox PARC:
Kay reflects on his time at Xerox PARC, where he worked on the graphic user interface. He highlights the challenge of convincing his superiors of the value of this work, which lacked mathematical rigor but ultimately revolutionized the way humans interact with computers.

PARC’s Unique Research Environment:
At Xerox PARC, researchers had the freedom to follow their instincts and pursue their ideas without interference from management. Alan Kay’s boss, Taylor, never directed researchers on specific projects, allowing them to explore their interests and make groundbreaking discoveries.

Acceptance of New Ideas:
Many of Alan Kay’s ideas, such as object-oriented programming and the graphical user interface, were not initially accepted by the community. People often adapted these ideas into subsets, resulting in less powerful and less user-friendly versions of the original concepts.

The Impact of Xerox PARC Technologies:
Technologies developed at PARC that had no direct competitors, such as the laser printer and the Ethernet, were readily adopted and became widely successful. However, technologies that challenged established paradigms, like object-oriented programming and the graphical user interface, faced resistance and were not fully appreciated.

The Importance of Aesthetic Connection:
The researchers at PARC shared a deep emotional connection to J.C.R. Licklider’s vision of a symbiotic relationship between humans and computers. This aesthetic connection motivated them to create technologies that were not only functional but also beautiful and inspiring.

The Role of Artists in Technological Innovation:
Alan Kay believes that artists have a vital role in technological innovation. Artists bring a unique perspective and sensibility that can lead to groundbreaking ideas and creative solutions.

The Difference Between Wants and Needs:
Alan Kay distinguishes between wants and needs, emphasizing the importance of focusing on fulfilling human needs rather than merely satisfying wants. Wants are often driven by biological desires and can be easily exploited for commercial gain. Needs, on the other hand, are essential for human well-being and require more effort to address.

The Need for Mad Money:
Alan Kay advocates for the allocation of “mad money” to support research and exploration that may not have immediate commercial applications. This type of funding allows researchers to pursue high-risk, high-reward projects that can lead to transformative innovations.

Croquet: A Promising New Technology:
Alan Kay highlights Croquet, a massive online platform that leverages pseudotime computations, as one of the most exciting technological developments in recent years. He believes that Croquet has the potential to revolutionize the way we interact with computers and each other.

The Importance of Free Exploration:
Alan Kay emphasizes the importance of allowing researchers to engage in free exploration and experimentation without the pressure to deliver immediate results. This freedom allows for serendipitous discoveries and breakthroughs that would not be possible within a strictly regimented research environment.

Funding Research:
NSF funding for computing research often emphasizes proposals that explain how to solve a problem, limiting creativity and exploration. ARPA funding, in contrast, encouraged researchers to propose ideas without rigid requirements, fostering a more open and innovative environment.

Bureaucracy in Research:
Large bureaucracies tend to hire people from the middle of the bell curve, leading to a need for management and layers of accountability. This can stifle creativity and innovation, as researchers may be more focused on meeting bureaucratic requirements than pursuing groundbreaking ideas.

Funding Artists:
The American MacArthur Foundation’s Genius Grants provide five years of support to artists without specific goals or deliverables. This approach recognizes that artists have an innate drive to create and that their art should not be constrained by external expectations.

Managing Innovation:
Alan Kay’s 19 rules for managing a great lab emphasize autonomy, lack of control, and funding people rather than projects. This approach encourages researchers to follow their passions and explore new ideas without micromanagement or rigid oversight.

The Importance of Autonomy and Creativity:
Innovation often requires freedom from constraints and the ability to pursue ideas that may seem unconventional or risky. Bureaucratic structures and excessive control can stifle creativity and prevent groundbreaking discoveries.

The Role of AI in Shaping the Future:
AI has the potential to create immense social and industrial value, but it is important to use it responsibly and ethically. Researchers and innovators have a responsibility to harness AI’s power for the betterment of society.