a court to dismiss green party candidate jill stein's request for a recount. mr. trump's transition team has released a list of world leaders who spoke to the president-elect today. singapore's prime minister called trump to give his congratulations. the philippine president also called. the president of taiwan and afghanistan are also said to have spoken to trump today. global news, 24 hours a day, in more than 120 countries. this is bloomberg. "bloomberg technology" is next. >> i'm emily chang. this is "bloomberg technology." coming up, u.s. unemployment hits a nine-year low. but jobs are still under threat from the rise of a.i. and automation will be a deep dive, on what kind and how many. plus, news breaking of another high-profile attack in saudi arabia. will the incoming trump administration be able to effectively fight cyber warfare? and twitter hiring yet another head of product, we'll recap the top stories that caught our eye this week. first, a mixed picture in the u.s. jobs report. employers added more workers to their payrolls and the unemployment rate tumbled to a nine-year low, 4.6%. 4,000 manufacturing jobs were also lost. earnings fell a tenth of a percent, and the participation rate continues to hover near the lowest level since 1978. it's a kind of weakness that frustrated the middle class and that president-elect capitalized on throughout the campaign. >> we're gonna bring back our jobs to pennsylvania. [cheering] >> we're gonna bring back our jobs to the united states. your car industry is being sucked away from michigan. it's happening. if i'm elected, you won't lose one plant. >> i will be the greatest jobs president that god ever created! >> but while trump blames trade, others blame robots and say the rise of automation is really what's causing the decline in manufacturing jobs. so we want to know, how big a bite is automation taking out of the u.s. workforce and what do we do about it? joining us now for two visions of the future, tom, author of the book "only humans need apply" and martin ford, author of the book "rise of the robots." gentlemen, thank you for joining us. this is not a new concern. human jobs have survived multiple technological revolutions. martin, i'll start with you. what makes this one any different? >> well, i think the biggest thing that's different is the robots, sort of machines, the algorithms are, in a limited sense, beginning to think. they're taking on brainpower, cognitive capabilities. so it's not just about muscle power or manipulative type jobs anymore. it's becoming intellectual work as well. that's going to have a much more broad-based impact, going to scale across not just manufacturing but a lot of white collar jobs. a lot of jobs in the service sector. >> now, tom, you have a more positive view in that humans plus machines equals the best case scenario. but what incentive is there for a company like ford or carrier, the air conditioning company that has been such a hot button issue, what is the incentive for them to add automation at this point rather than keeping the jobs they have? >> well, you know, pure automation is basically a pain for us in many ways. we often try to escape it whenever we can. we get an interactive voice response system and we yell, agent! and press zero as quickly as we can. so i think most organizations will benefit more from an overall strategy of augmentation, you know, smart humans working alongside smart machines. i don't deny that there will probably be some job loss on the margins. but i'm not quite as pessimistic as martin is about how many and how quickly. >> so, martin, let's talk about how many and what kind of jobs you're seeing disappear and when. >> well, the basic rule is that any job that is on some level routine and predictable -- if you're coming to work, doing the same kinds of things over and over again, facing the same kinds of challenges, if another person could study a record of everything you've done in the past and based on that, figure out how to do that job, then that job is going to be susceptible to machine learning, artificial intelligence, robotics. no one knows for sure when this is going to be a big impact but i would estimate within the next 10, 20 years, this is going to be perhaps quite disruptive. i think there are other people who have looked at this and come to a similar kind of conclusion. there's a very famous study done by researchers at oxford that came to the conclusion that about half the jobs in the u.s. could potentially be automated within about 20 years. that's just a very rough estimate but it gives you an idea of the magnitude of this. >> so, tom, when you look at some of the statistics, it costs much less than a robot to do the same job as a human. you can get the same amount of manufacturing output for far fewer jobs today than you could a couple of decades ago. what makes you so optimistic? manufacturing jobs have been in decline now for decades. >> they have. i think it's likely that there will be some return of those manufacturing businesses to the u.s. not a huge amount of jobs, i agree. but for centuries, you know, when we automated farms and factories, producing textiles in the 19th century, there were always jobs for people who understood how the machines work, how do you configure them, how do you fix them, improve them, and i think that will continue to be the case. we don't know exactly how many jobs will go away when, as martin suggests, but if you look at the number of bank tellers, there are just as many bank tellers now as we had in 1980, despite a.t.m.'s and despite online banking. we still have the same number roughly. so this is a slow process. we humans often find other things to do. >> what kind of manufacturing jobs do you think could actually come back to the united states? we know that a deal has been done with carrier to keep 1,000 or so jobs in the united states. but it seems like these situations are going to be more one-offs. and you have folks out there saying, manufacturing jobs are never coming back to the u.s. anytime soon. apple is never gonna manufacture their phones in the united states. and even if they did, the process would be highly automated. >> well, it would be highly automated. but there will be jobs, working on those robots, repairing them, configuring them in the first place to do the work. so it's not going to occupy 300 million people in the united states. but if you're assiduous about learning about these technologies and how you can add value to them, i think you'll be fine. >> so, martin, you think that a full-on worker revolt is on the horizon? i wonder, are some of the frustrations we saw that trump tapped into, the angst of the middle class, is that a sign that what you believe will happen is in the process of happening? >> yeah, absolutely. i believe that it's maybe kind of the leading edge of the disruption that's coming. i think that the people that voted for trump and were enthusiastic about that, they would be much more likely to vote to global trade or immigration. they may not understand the technology is already playing a huge role in the situation they're in. but really, technology has been the primary culprit in destroying good, solid middle class jobs chg and instead, what we're seeing is the generation of fast-food jobs and jobs at walmart, things like that. technology is one of the leading forces causing that to happen. it's going to accelerate, become a much bigger issue in the future. i think it will lead to absolutely -- to political, maybe even social upheaval, if we don't figure out a way to adapt to that. >> here's a question i'd like to ask both of you. tom, i'll start with you. if you're in high school today, what do you tell this high schooler to study to pursue? is it computer science or bust? tom? >> well, i think everybody in high school and college should be making a choice between one of two basic directions. one, do you want to work with computers all day? you know, work alongside them as a colleague basically? or do you not want to work with technology at all? i think there will be jobs for people who want to kind of step aside from these technologies and do work that's highly creative and empathetic and totally unstructured. but most of the jobs in our society, i think, will involve working closely with technology. so that's probably the better bet, if you can tolerate working that closely with smart machines. >> so, martin, what would you tell a high school senior right now? >> one of the paradoxes of this is that people always think, if you work with computers or you're working with information, that that's going to make you safer. actually, the reverse can be true, because a lot of those white collar jobs, information based jobs, are easier to automate. that will, at one point, include computer programming. the safer areas are going to be skilled trades jobs, electricians, plumbers. it's still science fiction to be able to build a robot that can do what an electrician, an auto mechanic, a nurse, for example. those jobs require a lot of mobility, dexterity, problem solving, interaction with people. then on the more skilled education-driven side, you really want to be doing something creative, building something new, as opposed to doing something routine or you want to have that deep kind of interaction with other people, maybe with a patient in health care or maybe with a business-type relationship, you know, if you're in the commercial sphere. but you need something that's not routine and predictable and repetitive. >> interesting. all right, martin ford, tom davenport, author of "only humans need apply." this is going to be a great debate over the years. another story, the state-sponsored hackers who unleashed a digital bomb over the last two weeks have damaged computer systems at the saudi central bank. the attack targeted at least six government entities with malware linked to iran. hackers have stolen more than $30 million from accounts there and other russian banks. russia is accusing foreign spy agencies of trying to undermine its banking system. coming up, what will president-elect trump's pick for defense secretary bring to the table on cyber security? ♪ >> let's turn to politics now. president-elect donald trump announcing that he's picked retired marine corps general james mattis. mattis has extensive military experience. what does trump's choice mean for the many cyber security threats around the globe? kevin joins us by phone. starts start with general mattis's reputation, when it comes to issues like security and cyber security in particular. what do we know about some of his views on these issues? >> well, he is someone who has spoken about these issues for quite some time, even during his tenure in the obama administration. he is someone who has raised the issue of cyber threats, as far back as 2009, publicly, and perhaps further. but cyber security is something that president-elect trump has outlined to be one of his top priorities within the first 100 days in his administration. so this is something i would expect both of them to work on in the new administration. >> he was very recently in active duty, unusual nor a defense secretary. normally there's a desire to have someone who has spent more time in civilian life at the top, so there can be a balance of power between them and the military. how do you think this will impact his view on warfare and cyber warfare, technology on the ground, given that he's experienced this so recently? >> the sources that i speak with inside of the trump transition team tell me that they viewed his recent military experience as an asset, and part of the reason why president-elect chose him for this position, they think that his frequency with the latest national security risks, including cyber security, are part of the reason that they wanted to choose him. so they view that as an asset. but you are right. it is a bit rare. >> now, state-sponsored hackers have conducted a series of attacks on saudi arabia over the last couple of weeks. is this something we can expect president-elect trump or mattis himself to comment on? >> we haven't seen much of the transition office weighing in on issues of the day. we did just -- we hear that president-elect trump did reach out to the taiwan government, which is incredibly rare. we haven't heard much from them. but i would expect them to weigh in on those types offishes after inauguration -- types of issues after inauguration. >> what are we expecting through the weekend and into monday when it comes to additional cabinet appointments? >> well, of course the big meeting for bloomberg's audience is of course the goldman executive, gary cohn, he's going to be meeting with trump this weekend. the next big post is secretary of state. obviously lots of rumors, everyone from mitt romney to senator bob corker, the republican from tennessee. he'll continue on his thank you tour. yesterday we were with him in cincinnati. he's headed to north carolina on tuesday. >> all right. kevin, our bloomberg politics reporter. thanks so much for that update. we'll check in with you again on monday. pandora and sirius xm. pandora shares surged on reports of a potential acquisition by the satellite radio provider. sirius chairman approached pandora's board to express renewed interest in taking over the company. sirius's latest approach didn't include an offer price, but sirius did offer pandora. pandora is said not to have responded to sirius's latest offer yet. this weekend, a russian billionaire joins bloomberg for the award ceremony in silicon valley. we will bring you that interview, sunday evening in new york, 9:45 a.m. monday morning in hong kong. ♪ >> russian intelligence officials did more than just hack and leak documents during the u.s. presidential election. they also played an active role on social media to influence perceptions about the race. so says the cyber security firearm fire eye. the company says materials stolen by russian intelligence were promoted by fake online accounts and personas. joining us is the director of threat intelligence. laura, what exactly did you learn about the social media propaganda part of this operation and how it worked? >> yes. thanks. so the social media aspect that we've seen over the summer in particular is just one of the multi-pronged approaches that we've seen russia engage in over time in what they would call information warfare. what we've seen, like this group, is that these personas are adopted and appropriated from real-life type of groups. then the message they spread is much aligned to what russia looks to do in their foreign policy. >> so were they trying to convince people to change their votes, or just reinforce anti-clinton views? >> so this is far more indirect. a lot of what we see is the types of personas, and a lot of this happens on twitter, that engage in this to and fro with journalists, is about spreading a particular message. for instance, information about the syria conflict, nato-ukraine topic, the u.s. presidential elections, particular angles of a tweet will be sent to key influencers. then the message will get amplified by the network of how many different users that individual or group is connected to. what happens is the message, and in this case over the summer, one that promoted a lot of the trump discussion or promoted the actual e-mails, and the d.n.c. hack, that would be the core piece that these groups would be pushing in the way that they spread their message out to key influencers. >> now, your chairman talked about this as a sort of dawning of russia as a cyber power, unlike anything we've seen before. russia, of course, has completely denied connection to any of this. how confident are you or how were you able to prove that russian intelligence is indeed behind this? >> well, so this is a sustained campaign that we've seen for years. what's really different about this summer is the groups that we've long tracked, the russian government or believe to be sponsored by the russian government, exhibit a couple different qualities. one is that the tools they use have been written in the time zone, written in russian. they have the evidence of tools that are built to last. malware that gets in the system, that can be changed over time, someone who is really practiced and sophisticated behind the build on these. add a couple other key elements, like the types of targets these groups go after and we start to see a pattern emerge, over seven, eight, nine, ten years for how these groups have perpetrated activity aligned to russia. this summer is different, because we're now seeing activity directed to the u.s. in this case, directed specifically at, how do you get at questioning one of the core u.s. institutions, voting? and that your vote matters? that's been very much the focus from the groups we've tracked over time. >> now, there's also been allegations within the united states from computer scientists that the election itself, the results show the potential that they may have been hacked. they don't necessarily believe they were, but that at least they should be verified. have you found any evidence that the election results themselves were hacked? >> we don't have instances where we've seen that. that i'll leave to the election officials and also to others who have direct evidence. that's really what's key here. we need to see direct evidence of that, through a network investigation or through the people looking at that network. from our side, we haven't seen evidence of widespread tampering or hacking of the election. what we have seen is this influence campaign over time that we think is the work of groups that would be working on behalf of the russian government. >> now, with russia taking this to a new level, using new tactics, what does this mean for the future of cyber warfare and how the united states might respond or retaliation? >> information warfare, this concept that states can engage in the way that minds are melded, in the way that you create a perception around policy or around a particular regime, this isn't something that the u.s. has long seen as a russian concept or one that they would rather not adopt in terms of regulating around it or creating any sort of ban. take, in the u.n., for the last 20 years or so russia's long push in an information weapons ban. the use of information to change a specific outcome. the u.s. has long seen that as the potential to bridge unfree speech and first amendment rights. so how do we start to deal with the reality that information can be a weapon, that information in this domain in particular, cyber space, can be used in a variety of different ways, more than just hacking? but this is about minds and how do we think about that. and take appropriate steps to have stability in the relationships between different countries. >> all right. fascinating stuff. laura, director of threat intelligence. thank you. much more ahead. a reminder, "bloomberg technology" is moving to a new time. starting monday, we'll be live at 2 p.m. pacific. 6 a.m. in hong kong. this is bloomberg. ♪ generosity is its own form of power. you can handle being a mom for half an hour. i'm in all the way. is that understood? i don't know what she's up to, but it's not good. can't the world be my noodles and butter? get your mind out of the gutter. mornings are for coffee and contemplation. that was a really profound observation. you got a mean case of the detox blues. don't start a war you know you're going to lose. finally you can now find all of netflix in the same place as all your other entertainment. on xfinity x1. >> i'm nina. you're watching "bloomberg technology." let's begin with your first word news. jurors are deadlocked in the trial of former south carolina white police officer charged with killing a black motorist during a traffic stop. the judge has asked them to continue deliberations. cell phone video shows michael slager shooting 50-year-old walter scott several times in the back, after scott got out of his car and tried to run away. the remains of several brazilians who died in a plane crash in colombia are on their way home. brazilian and colombian soldiers loaded their caskets into cargo planes this evening. the bodies will be transported to the brazilian city where the soccer team that had been traveling is based. 19 members were a part of the club. 71 people in total died. ireland's prime minister says the u.k.'s decision to leave the european union is in stark contrast in its history as a forward-looking player on the world stage. >> the different countries -- britain was always a really important member of the european union and was a voice for change and was a voice for a vision for the future. obviously the decision in brexit came as a shock, as something i didn't want to see, something that i didn't want. but i have to respect it, because it's a democratic decision, so we get on with it. >> kenny also said the u.k. won't be allowed to pick and choose, as it prepares to leave the bloc. the u.s. has hit north korea with a fresh batch of sanctions for what it calls continued provocative behavior. it will freeze assets of some entities and people with suspected ties to the kim jong-un regime. north korea is promising to retaliate. russian emergency crews are combing the mountains near the border with mongolia for the debris of a cargo spaceship that crashed minutes after launch. they are using drones to search for fragments. the crash happened seven minutes after it blasted off from the space complex. russian president vladimir putin says the attack at charlie hebdo's office last year is justification on the kremlin's crackdown on art and free speak. putin spoke on the council on culture today. he said officials should take action on images they deem controversial to avoid a similar attack. today marks one year since the terror attack in san bernardino, colorado. employees there observed a moment of silence at the moment the attacks began. community members also gathered in memory of the 14 people killed and 22 wounded. cyclists also embarked on a ride through the city, marking one mile for each victim. ♪ >> this is "bloomberg technology." i'm emily chang. from go pro slashing its workforce to twitter having yet ahead of products, there's been no shortage of tech news this week. joining us now, tom giles. thank you for stopping by. even into the holidays. i want to start with twitter. twitter has hired a new head of product. keith coleman. he worked at google for like a decade, oversaw products at g-mail. elevated him into this position. he's one of many, many people in this job. >> a small number of years. it's like a resolving door, except they never come back. >> why is this guy gonna be the secret sauce? >> so he came from google. so you're going to sprinkle some of that google dust on things. >> the last one came from google as well. >> he oversaw g-mail, seen as a pretty successful product, in a very short amount of time. everybody switched. not everybody but almost earn switched. in some ways, he's got that. he's got some wind at his back. this is a very big hurdle to overcome at twitter. that question of, what is the twitter product and will twitter be able to make this appealing to a bigger user base? it's a very big, tall order. >> so there was sort of an outcry on twitter, this guy has only tweeted 150 times ever, you know. he maybe isn't as passionate about the product as one would like. megan quinn of spark capital tweeted, i was horrified by the twitterverse reaction to keith coleman accepting the v.p. of product job today. pessimistic, rude and embarrassing. >> but maybe it's the best thing, if you think about it. twitter needs to appeal to a broader audience. who is it used by? politicians, donald trump, celebrities, a lot of journalists. we're such snobs about it. oh, she doesn't tweet that much! he doesn't know how to tweet! right? here's a guy who doesn't use it a lot. twitter needs to appeal to that kind of an audience. >> to tom's point, this is arguably the hardest position to fill at twitter. an outsider might bring much needed perspective. and it could have interesting features integrated into twitter, bringing friends together, quickly getting a mass of people together to talk about a subject. those are all things twitter wants to achieve. >> i'm thinking of daniel graph who also, i remember, when he got the job, he tweeted like nine times. didn't work out. i think he was there for less than a year. >> no! ha ha! you're absolutely right. it's hard to argue with the uphill challenge that anybody has right now at twitter. there's a lot of change right now. they've got a c.e.o. who is dividing his time. they just elevated anthony noddo, making a big push into video, which is in some ways -- we're starting to see results of that. thursday night football, a lot of people still tuning in to that. it's, again, it's widening the appeal. what kind of product -- what does he do to make it appeal to a much bigger audience? no one thinks these guys are going to become facebook. it's never going to become that useful. but it's got to appeal to a broader audience and widen the appeal for advertisers. >> let's go on to news that hasn't actually happened yet. reports that fitbit might by pebble, the smartwatch maker. what is the latest? >> reports are saying that the deal will be between $34 million to $40 million, which lower than apparently they had received offers from before, from citizen, for reportedly $750 million and then the c.e.o. of pebble rebuffed that. this is just another story that shows that it's really hard to be a hardware start-up, a hardware company. pebble was the darling at kickstarter. so many enthusiasts. now they're struggling, in debt. >> well, apple came out with a watch in between. >> apple came out with a watch in between. they have some good assets. that's why they're looking towards pebble. they can't go off and -- they're also going to get the operating system and some of their i.p. >> let's talk about some of these device makers and what we're expecting over the holiday season. not only are we seeing this with pebble. go pro has cut 15% of jobs. there's a lot of questions about how well the new cameras are going to actually sell. is this part of a broader trend? >> yes, it is going to be a very ugly holiday season for fitbit and go pro, is what the most recent earnings calls showed. the renaissance may be coming to an end at this point. i mean, if you look at go pro, they had a bunch of production problems. they missed karma. they delayed shipping, had to recall drones. >> they're falling out of the sky. >> and i think people were shocked. they were like, wait, you only shipped that many? that was surprising. and if we look at fitbit, they also had production problems too. and these companies are blaming it on, you know, we have to deal with global manufacturers. it's a very complex process. but, you know, it just shows that these are not companies that are going to achieve sky high evaluations that they once had. >> i think anything that competes with the smartphone is in rough territory this holiday season. i have a camera here, everything that i need for many of these tasks, right here. what you do want to look at -- i'm not bearish on all hardware. look at amazon starting to have success with -- >> google home as well. i know some folks who are getting that for gifts for the holidays. >> vr. i think people are increasingly becoming comfortable with it. it is compatible with the known. i think samsung has done some smart things there. don't rule out all hardware at the holiday season. just very selective. >> thoughts on samsung, another huge device maker, also in the midst of a corporate governance nightmare. they've expressed willingness to break the company up. this is what investors want. what is the latest and what is likely? >> so elliott is pushing for a lot of changes. activist investor, tried to block a merger last year. didn't go through. wanted more. he kicked them when they were down. at that time, he came in, asked for a lot of money. samsung gave him a third of what he asked for, a third of the amount, return to shareholders, and one out of three board seats. they also said we will consider a split-up. breaking up is very complicated, into an operating company and a holding company. so they're going to take six months or so to think about it. the sense we have is that it's likely to happen. elliott wants more transparency. he wants shareholders to be able to understand, what is samsung, how does it work, what are these different companies? that supposedly is going to bring more visibility. >> there are two months on from this massive recall. they've got smartwatches. how are they going to do over the holidays? >> nobody has yet come out with a wow product, a must-need product. they're all nice to have products. i don't think that samsung's otherring gadgets are going to be any different than fitbit or a gopro. >> thank you so much. thank you for stopping by. drone makers, coming up. they are working on ways to fly free, without the need of a pilot to watch their every move. we'll focus on qualcomm's latest project, next. this is bloomberg. ♪ >> the maker of snapchat looking to claim more users globally. as the company prepares to go public, it is hiring more staff in london. they recently released a four-story office space and opened a paris office in october. snapchat's 150 million daily active users are predominantly statewide but it's gaining popularity globally. a spokesperson for snap said it has 50 million daily active users in europe. innovations in drone technology. one of the main hurdles is the current rule that operators need to keep them in their line of sight. qualcomm may have a solution, as our bloomberg tech reporter ann king reports. >> i'm here at qualcomm, the largest maker of cell phone chips, taking a tour of their gadget lab. growth in the smartphone market slows. >> when you look at the cellular network, they're handing off to different cell towers and maintaining that communications link. >> in simple terms then, that drone is basically a smartphone. >> qualcomm's idea is that they connect to cell phone towers in the same way your cell phone does. they want drones to be able to fly miles away. the problem with letting drones off the leash is that the f.a.a. has certain rules which means a human has to be in control and able to see them at all times. >> see it go? >> drones using cell technology could be a real game changer. the research is done on the gadget level. they are fine-tuning drones so that accidents don't happen. >> this allows the drone to fly safely in very confined spaces. >> as i keep exploring the environment, the map grows bigger. preventing me from going any farther. >> it's making a decision, there's a barrier there, i'm not going to do that? >> even though you're commanding me to do that, i'm saying no way. >> not gonna do that. >> the f.a.a. has given qualcomm permission to test their cell phone connected drones on the roof of its san diego headquarters. >> i'm not controlling it at this time. it's totally hands off, automated flight. >> if you look around this whole area, we have a mix of the commercial buildings, we have residential. we have a rural environment. power lines, you name it, that the drone is going to have to navigate. >> qualcomm says it's done more than 500 flights so far without any incident. if they can persuade the f.a.a. that these drones are safe to be out on their own, we could be seeing these flying cell phones everywhere. >> that was our bloomberg tech reporter. president barack obama has blocked a chinese company from buying semiconductor equipment supplier aixtron in germany. aixtron has a subsidiary in california and generates about 20% of its sales domestically. it marks the third time in 20 years that the white house has rejected a sale because of a potential security risk. coming up, imagine a smartphone app that lets anyone take a picture of anyone and find that person on social networks. we will bring you the full story, next. and this weekend on bloomberg television, we'll bring you our best interviews from the week, including our exclusive with mexico's richest man. he explains why at&t's aggressive pricing strategies in mexico are costing the company to, quote, lose a lot of money. tune in this saturday for the best of bloomberg tech. this is bloomberg. ♪ >> turning to the comings and goings in silicon valley, bloomberg's news reports, one of the top executives in the apple health division, has left the company. he previously worked at after fa -- at alphabet. the team has grown significantly since it introduced the apple watch in 2014. they are working to expand the health tracking software into a diagnostic tool. hello world goes inside russia, were over the past few years, a wealth of entrepreneurs has yielded a new generation of world-class tech companies. among them, a next-level facial recognition app called "find face." we took the app for a spin in moscow. >> this year, russia has built an app that rewires our social fabric. for all of human history, when you stepped into a park like this, strolling around, you've been in public but unknown. lost in the stream of friendly faces. until now. ♪ >> hi! would you mind if i take a photo of your face? >> trying to do a little bit of an experiment. >> can i take a photo of your face? >> can i just take a photo of you, and then we see if it can find your profile? >> okay. >> it doesn't work on facebook, because they don't let you search the database. >> find faces, it lets you take a picture of a new friend or a complete stranger. in a few seconds, it scans all 250 million photos from vk, the russian facebook knockoff, then finds a match. >> all right. let's see what happens. ♪ >> oh! it's me! definitely! >> it's me! >> yes, it's me. >> and your hair is so different in the photo. ha ha ha! >> definitely finds me. so it works. >> yes. yes. >> it's really cool! >> do you think it's strange? >> it's strange, but cool! >> you'll take a photo so you can find -- >> you guys like it? >> i almost don't like it! >> ha ha! >> so if i forgot if this is my son or not, i can check it with my phone. >> find it. find it. >> this year, find face took its algorithm to america. through something called the mega-face challenge. there would be google and a lot of other face-spotting soft ware. to find out how they did it -- >> nice to meet you. >> i went to meet the algorithm's creator at the office of his company. >> do you mind showing me how the technology works a little bit? >> yes. >> can we try me? so these are my russian brethren, my cousins. >> ha ha ha! >> is it ranked in order by who they think looks the most like me? >> yes. >> this is like a 60-year-old with a machine gun. another guy with a gun. >> i want to show you something else. >> why am i a bear? >> these are things that there are some... >> sometimes it's difficult to say why they came up, but... >> he programmed a network that approaches face-finding differently than others. he fed it thousands of image matches. after about six months of training, voila! it learned to read faces. >> are we creeped out yet? maybe we should be. they have already signed a contract with the moscow city police. though he won't talk about it. he says they already have agreements with other law enforcement agencies, both inside and outside russia. it's easy to imagine what the f.b.i. or its russian counterpart, the fsb, could do with this kind of technology. >> so it's a little bit controversial, right, because anyone can identify you now? >> yeah. >> in a crowd. >> i would say that the implications of this are very scary. >> you have to be careful if you go in the streets or on facebook or any other social network. you're open to being recognized. >> this idea that you're not anonymous when you walk the street anymore, somebody can just snap your photo and identify who you are, you must have thought about that when you were developing the technology. emily: you can catch more of hello world this weekend on bloomberg television. that does it for this edition of "bloomberg technology." this weekend, we'll be live from the breakthrough prize award ceremony with tech's biggest executives, including mark zuckerberg and sergei bren. we will sit down with yuri milner. and a reminder, "bloomberg tech" is moving to a new time. starting monday, we'll be 2 p.m. pacific, 6 a.m. in hancock. -- 6:00 a.m. in hong kong. that's all for now in san francisco! this is bloomberg. ♪ >> the following is a paid advertisement for time life. >> who are you? >> world's people doing in my living room? [laughter] >> he was america's clown prince. >> i don't take any lip. ♪ his heart was pure gold. >> if i knew any better, i would give you a real big kiss. >> and george. i am

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