The Shift from a Thinking to Feeling Economy

A summary of the main point from the book "The Feeling Economy" by Roland T. Rust and Ming-Hui Yuang, which is that we’ve gone from a Physical Economy (manufacturing) to a Thinking Economy (information) and are now entering a Feeling Economy (empathy).

Your career and future employability will depend on how you add value in a world where AI (artificial intelligence) + HI (human intelligence) are converging. Reading faces (facial coding), voices (e.g., Apple’s Siri) and bodies (via Fitbit) fit a world in which your emotional intelligence skills will be vital.

Here are some signposts of the basic socio-economic change underway from a thinking to feeling model:

1987: FCC repeals Fairness Doctrine, opening the way for Rush LimbaughFox News will launch in 1996

1995: Daniel Goleman publishes Emotional Intelligence

1997: Big Blue (IBM) defeats world chess champion Garry Kasparov; emojisfirst appear in Japanese mobile phones

1998: launch of Google & also Sensory Logic (my company, using facial coding to capture/quantify emotions)

2001: release of Stephen Spielberg movie AI Artificial Intelligence

2004: Facebook launches

2005: Malcolm Gladwell publishes Blink (which highlights facial coding)

2007: Fitbit launches; I release my book Emotionomics

2009: Lie to Me TV series based on facial coding launches on Fox (#29 most-viewed show that season); Affectiva and Realeyes switch to applying (automated) facial coding to business in imitation of Sensory Logic

2011: launch of the 1st digital assistant, Apple’s Siri

2014: SoftBank Robotic’s Pepperis 1st social humanoid robot

2016: Apple buys Emotient, the original facial coding automation company

2017: Female robot Sophia named an AI citizen in Saudi Arabia

Released today: episode #44 of “Dan Hill’s EQ Spotlight,” featuring Ming-Hui Huang, the co-author of The Feeling Economy: How Artificial Intelligence Is Creating the Era of Empathy. Listen to the clip below and click on the image to get to the new episode.

Image of Author Ming-Hui Huang and her book "The Feeling Economy" for episode 44 of Dan Hill's EQ Spotlight, titled When A.I. Thinks, Humans Feel. Click on the image to get to podcast link.

Huang Ming-Hui Huang holds a number of posts. She’s a Distinguished Professor at National Taiwan University; a fellow of the European Marketing Academy (EMAC); an International Research Fellow of the Centre for Corporate Reputation, University of Oxford, UK; and a Distinguished Research Fellow of the Center for Excellence in Service, University of Maryland, USA. She is also the incoming Editor-in-Chief of the Journal of Service Research.

Dan Hill, PhD, is the president of Sensory Logic, Inc.

Three Reasons Why We Care

Evolutionary psychology suggests that being kind-hearted to those we don’t know isn’t a natural instinct. Quote by Author Michael McCullough

What’s our kindness to strangers rooted in? Look to these three R’s:

  1. Reciprocity – a social instinct to help others in hopes of receiving help in return.
  2. Reputation – a social instinct to help others though ultimately in pursuit of self-glory, i.e., appearing virtuous.
  3. Reasoning – an intellectual determination that there are beneficial incentives for doing so.

What’s the difference between the first two R’s and the last one? Reciprocity and Reputation go strictly back to “me”: either wanting to attract allies so we can be safer and happier (Reciprocity), or wanting to feel better about ourselves (Reputation). The third R, Reasoning, offers plenty of overlap with the first two R’s, but ultimately comes down to a hard-edged cost/benefit analysis, stripped of emotion. You’re after prosperity, and the more resources you have the lower will be the relative cost of helping others.

For instance, you might aid trading partners down on their luck, figuring they will then be in a position to buy more from you later on if revitalized. The bottom line, McCullough argues, is that human beings aren’t readily given to helping strangers. It often takes the addition of the harsher 3rd R to push us toward being “kind.”

The world’s great religions–and the Golden Rule–were born as the volume of people our ancestors were interacting with was growing rapidly. Today, international trade is helping to drive the value of being seen as trustworthy even higher.

The Historical Progression of Empathy

Released today: episode #25 of “Dan Hill’s EQ Spotlight,” featuring Michael McCullough, the author of The Kindness of Strangers: How a Selfish Ape Invented a New Moral Code. Listen to the clip below and click on the image to get to the new episode.

Michael McCullough is a professor of psychology at the University of California San Diego. He’s a fellow of both the American Psychological Association as well as the Society for Personality and Social Psychology. This episode first covers why people practice empathy and compassion, followed by seven stages of history whereby compassion became more generally practiced, and why.

Dan Hill, Ph.D, is the president of Sensory Logic, Inc.