Is AI art A-OK?

Hey there, I'm Marty McCarthy — LinkedIn News Australia's tech and innovation news editor — bringing you another edition of Tech Wrap-Up Australia.

Firstly, thanks for the HUGE response to the first edition. We have racked up 51,000 followers already!

In this edition, the collapse of US-based Sillicon Valley Bank has rocked the local tech startup scene. We'll explore how Aussie founders are faring.

Also in this edition, how can creative professionals embrace the new era of generative artificial intelligence platforms? The founder of an Australian AI art studio shares his thoughts.

Throughout this newsletter you'll see plenty of content and commentary from professionals on LinkedIn. If you want your insights to be featured, use the hashtag #TechWrapUpAU, or you can send me your posts over InMail.

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Meet the people behind Australia’s most innovative tech companies.

In January, a Sydney art studio won a photography competition for a 'drone photo' depicting two surfers, a breaking wave and a glowing sunrise. But there was a catch ... the image was made using AI. Meet the man behind that picture — Jamie van Leeuwen , the founder of Absolutely Ai — who challenges people to think: who is the better artist, man or machine?

Jamie, what does Absolutely Ai do?

"Absolutely Ai is a creative agency specialising in AI-generated?content. That includes imagery, graphic and logo design, and videos. Essentially, anything that a business wants to?bring to life in an engaging visual way, we can help. We have clients based all over the world from India to Africa.

Our most recent client was a musician from Cameroon who hired us to create art for an album cover. We worked with the NFL to promote the Super Bowl through social media content and have also worked with AFL clubs to create marketing assets. Every job is different!"

Is AI-made art still art?

"It depends how you define?art. Can we create incredible imagery in the same style of the Master Painters? Absolutely. We have used this approach to create a series that features?the Sydney Opera House as painted by Vincent van Gogh or Salvador Dali. This 'artwork' is entirely unique and visually engaging.

In that sense, AI can definitely create art. However, while there's no denying that the final output is incredible, machine-generated 'art' lacks the intensive?process that is usually associated with an artwork. It took Leonardo da Vinci four years to paint the Mona Lisa, while we can create dozens of incredible images in a single day. To that end, it's like skipping the journey and arriving at the final output. That should be taken into account in this discussion and everyone will have a different opinion if AI-generated imagery is art or not."

Absolutely Ai made global headlines earlier this year for winning a photography competition with an image made using AI. What message were you trying to send?

"We're at a turning point where AI can generate imagery that is as convincing and visually engaging as humans can. We wanted to prove this point by fooling (for want of a better word) photography judges and experts in their field. Our image of two surfers at sunrise won the competition and we immediately came clean with our experiment and returned the cash prize. Since then, we have received backlash and support. I think the backlash has come from people who are scared about this new technology."

Thanks largely to ChatGPT, 2023 has become the year of generative AI. Have you been surprised that AI now seems to be everywhere?

"I am not surprised by how quickly AI has exploded over the last few months. The reason is because once you use this technology, it's undeniable to see how powerful it really is. All you have to do is use ChatGPT or an image generator to have your mind blown. ChatGPT is the fastest growing app in history, which in itself proves how disruptive this technology will be from now on and I believe that almost every industry will begin to move towards some level of automation."

You’ve used AI in some cool ways, for example to help redesign Melbourne’s iconic MCG. What’s some other cool stuff you’ve done?

"Heaps! We recently released an image book called Unreal Worlds that imagines new animals, aliens and futuristic environments. One of the fun (and surprising) ones has been designing tattoos for people from all over the world.?We are always looking to push the boundaries and we're in talks with a number of companies to create some world-first products. Watch this space."

Who should get the credit for AI art? The AI developer, the artists whose work it was trained on, or the person who wrote the prompt?

"It's an interesting question. Who gets the credit for traditional art; the company who invented or sold the painting tools, the beautiful landscape for providing the inspiration or the painter who pulls it altogether?"

Gartner predicts that by 2025, 30% of marketing content will be generated by AI, and that by the end of this decade a major blockbuster film will be released in which 90% of it was generated by text-to-video AI. Do you think generative AI poses a threat to creative jobs, such as artists, writers, communications and advertising/ marketing professionals?

"Yes, it would be naive to think it doesn't pose a real threat to traditional jobs. It's terrifying and incredibly exciting technology. We always thought that the creative industries would be a safe haven from automation because we believed that only humans could convey emotion through art. This is clearly not the case anymore. That's a confronting idea to get your head around at first. However, there's been a long history of backlash to new technologies. When the early movies started to introduce sound, people asked 'but what will happen to the orchestra?' That was a valid concern, however within time this new technology significantly grew the movie industry as a whole and created new jobs like a sound engineer. Artificial intelligence will open up a new world of career opportunities too."

What new roles or industries can AI help to create? Or how can it make existing tasks easier?

"There is certainly a talent in using AI to generate artworks, it comes down to how well you can articulate your idea to these apps to bring them to life. Companies are already looking to recruit 'prompt engineers' to fill this need. Outside of that — doctors, lawyers and teachers can be helped to do these jobs more efficiently by leaning into this technology."

Australia doesn’t have any generative AI startups. Have we missed the boat on being a part of this industry?

"No. The AI tidal wave is just taking off and there will undoubtedly be plenty of opportunities for Australians to get involved. What I would like to see is supporting initiatives from the government to make the most of this opportunity."

There's plenty of AI art haters out there. What do you say to them?

"We had an aspiring Melbourne photographer, James, reach out to us recently. James suffers from a disability?which makes it difficult for him to leave his house to photograph. After being introduced to AI-image generators, he's been able to tap into his creative side from within his own home. There is plenty of doom and gloom about what AI will mean for the creative industries. The flip side of the conversation is that the barrier to entry has now been significantly lowered and we will start to see more people creating than ever before. From the?standpoint of inclusivity, the industry certainly stands to benefit."?

If you were forced to pick a side, what do you think is better?—?AI art or traditional art?

"Team traditional art. I am a photographer and filmmaker?first and foremost and there's certainly beauty in the process of struggling for your art — to get the perfect shot or filming the perfect sequence. When it comes to AI, I?have spent many, many hours generating incredible AI imagery however I don't feel the same pride or satisfaction. It's an interesting conundrum for a creative person."

?? Want to learn more about generative AI and AI art? Follow Jamie van Leeuwen from Absolutely Ai .

Also, here's a few more local generative AI startups to check out:

• Sydney simulation and training startup SimConverse , where users can act as a health professional or patient to assist in their medical training.
• Atlanta-Sydney Medtech startup Omniscient Neurotechnology (o8t) , which generates personalised digital maps of the brain.
• Brisbane startup Splash , which develops AI-powered video games that enable users to create and perform music to live audiences inside virtual venues.

Catch up on the most-discussed tech stories on LinkedIn and see what professionals are saying.

Silicon Valley Bank collapse

Australian startups have spoken out in support of failed Silicon Valley Bank, as concern grows that the bank's hardship could set back funding for climate tech. Canva co-founder Cliff Obrecht said on LinkedIn it will be "100% supporting SVB if they are acquired and continue operating". Canva was one of many Australian technology companies which were caught up in the SVB fallout which collapsed last week. Here's how other Australian tech founders have responded:

• Andrew Job , founder and CEO at Plotlogic , told the AFR: “It’s a relief that decisive action was taken so quickly ... When things open in the US it should just be like a normal transaction to get the money out.” Arun Nair , chief executive at cybersecurity company Zertid , whose company's funds are spread across a big four bank in Australia and SVB: “It was a wake-up call that we should be a bit more mindful about spreading the risk, rather than keeping all our funds in just one bank.” Read the story here. Ben Sand , founder of AI training startup Strong Compute told The Sydney Morning Herald that he immediately boarded a plane to California and went to the headquarters of SVB to transfer his company's money to another bank: “It’s one thing to be online. It’s another to pick up the phone, it’s another thing to be there in person, and we want to act to protect the money that our investors put into us and that is used to pay our team and financial hardware for our projects.” Read the story here.VC firm Airtree said in a post on LinkedIn that 28% of its portfolio companies have a SVB account although it noted it had no exposure to SVB at a fund level. "If we had to describe the response we’ve seen from founders in a few words, they would be calm, measured and collaborative," the AirTree team said. Tech strategist Francesco Solfrini says there are plenty of learning opportunities from the SVB drama, especially for startups and VCs. Read his analysis of long and short term impacts here, and how founders can take from it.

Beyond the initial shocks, there's growing concern the SVB collapse may significantly impact climate-related startup funding. The 40-year-old US lender was a popular choice for firms requiring specialised support within sustainability and had committed US$5 billion in loans, investment, and other financing by 2027. Read the concerns of some climate tech experts on LinkedIn here.

• John Davis from the University of Oregon : "SVB's collapse will hamper startups in climate tech and sustainability, at least in the short term. The bank had 1,550 such startups and while most had their money restored following the interventions, entrepreneurs are understandably nervous about the funding environment right now."

Meanwhile, as a result of SVB’s collapse, some tech founders are turning against venture debt and ‘predatory’ exclusivity deals, writes Tanya Dua , my tech editor counterpart at LinkedIn News US.

• Ksenia Yudina, CFA founder and CEO of? UNest , whose operating accounts and payroll system were both set up at SVB due to a venture debt financing deal with the bank: “Right now, we are working?on what we can control?– but once the dust settles, the industry needs to rethink venture debt financing ... Venture debt requires you to move all your money to one bank, and that needs to change. It’s on top of everyone’s mind.”

Latitude Financial data breach

Last week's data breach for retail finance lender Latitude Financial could grow, with at least 330,000 customers affected after drivers' licences, passports and Medicare numbers were stolen. Read what IT experts are saying about it here.

Luke Raven , Senior AML Complian Manager at Cabital : "Latitude is the first?financial services?business in the recent spate of Australian breaches, so... they should also expect to face some tough enquiries from regulators like?ASIC?and?AUSTRAC?as to their third party due diligence procedures."Mark H, Head of IT & Systems, Kinela: "Data security should be at the forefront of any organisation's technology priorities ... After the Medibank and Optus incidents of recent times, organisations don't seem to be learning, with a "this can't happen to us" mentality."

Ashley Jones , Cybersecurity Executive at Razilio : "The Privacy Commissioner has significantly greater powers to seek information from an organisation in regards to a data breach. This could allow it to conduct deeper dive assessments as well as gain a better understanding of data exposed. Both IPH and Latitude could expect potentially a lot more questions from the OAIC in regards to what happened, what was impacted and what has been done about it." Check out more of Jones' analysis about how changes made to Australia's privacy laws in December last year could impact Latitude here.

Mass layoffs continue at big tech companies

Facebook's parent company Meta Platforms will lay off roughly 10,000 employees over the next couple of months and close off a further 5,000 open jobs, the company announced in a blog post, in addition to the 11,000 workers it cut in November (13% of its staff). Amazon has also flagged 9,000 jobs cuts. Meanwhile, Apple is delaying bonuses for some employees and limiting hiring as part of a cost-cutting drive, Bloomberg reports, citing anonymous sources.

Before we move on, for the WFH lovers out there, Zuck might have dealt you a blow. Check out this comment in his blog post:

“Our early analysis of performance data suggests that engineers who either joined Meta in-person and then transferred to remote or remained in-person performed better on average than people who joined remotely. This analysis also shows that engineers earlier in their career perform better on average when they work in-person with teammates at least three days a week.”

Is the writing on the wall for WFH?

Men dominate AI jobs in Australia

New LinkedIn data has revealed women are underrepresented in artificial intelligence roles in Australia, with only 31% of local AI talent being female. If the disparity is not addressed, experts are concerned the rapidly developing technology could contain bias against women.

Amanda Johnstone , Founding CEO at Transhuman : "Kicking off in AI can be daunting at the start — but the data doesn't lie. The intersection of human empathy (customer service) and scale / artificial Intelligence is an excellent space for consumer-facing businesses and services (and hopefully one we can collectively solve in the mental ill health sector over time)." Stela SOLAR , Director of the? National AI Centre at the? CSIRO : "If girls are not participating in AI and STEM education, it means they may become more vulnerable in our increasingly technological world."

AI's boost for business

Australian companies are earning an average of $500,000 in revenue from customer support chatbots powered by AI, according to 200 businesses surveyed by the?CSIRO.

Kale Temple , Partner, Data & AI at 德勤 : "What I have seen in practice is that as long as businesses are aligning AI with their value chain, and focusing on strategic imperatives (with business support) they can easily realise benefits of over $1,000,000, and these use cases have not been chatbots or worker productivity initiatives."

Hey Siri, how are you using my data?

Australia's consumer watchdog the ACCC has launched a review into how major US tech companies are using data collected smart devices, and if this is hurting competition.

Francesco Solfrini , technology strategiest: "We all know 'we are the product'. The question is: when are we going to change our status from 'product' to 'asset'? Will we ever be able to move to a stage where companies pay us to use our data? And what would it take to get there?"

Here’s what tech professionals on LinkedIn have been writing about.

?? Francesco Solfrini , Tech Strategiest

?? David Cyrus , Co-Founder of EduLink AI

?? Amanda Johnstone , CEO at Transhuman

?? George Hedon , Startup Brand Specialist

?? Roger Christie , Founder of Government Digital Leaders Network

?? Clive Mayhew , Founder of Play Today.

?? Michael Plis , Founder at Cyberkite

?? Trent Clews-de Castella , Founder of PHORIA

?? Angus Stevens , Founder of Angus Stevens

Thank you to this edition's creators. If you would like to get featued, please send me your LinkedIn content over InMail.

Meet some of Australia's top investors who are backing the next generation of tech startups.

???? Welcome to Venture Chats. This week, we talk to Michael Tolo — General Partner at Blackbird Ventures — who specialises in emerging tech like quantum computing and syntethic biology. Read on for more. ????

?: What can Australian startups learn from the SVB collapse?

??: While there will be some lasting impact in how Australasian founders approach their corporate treasury, the SVB collapse appears to be an isolated incident (an operational liquidity mismatch) rather than a systematic issue. Venture debt is still a marginal source of funding for startups. Substantially all startup funding comes from venture capital (ie. equity funding). What happened at SVB will not reduce the availability of venture capital, nor does it signal the retreat of support for venture capital from institutional allocators.

?: What's your biggest professional mistake and what did you learn from it?

??: I regret the risk not taken: the unfashionable investment or uncomfortable conversation avoided … but, above all, allowing a friend to talk me out of an investment in Afterpay at $1.00 per share.

Click the link below for more VC insights from Tolo.

Final thoughts before I say goodbye.

Can ChatGPT make you rich?

LinkedIn member Jazz Fall , a creative expert and designer from Oklahoma City, gave the AI chatbot a budget of $100 and tasked it with making "as much money as possible in the shortest time possible".

Jackson said he will follow all the advice GPT-4 gives him (excluding anything illegal). So far he's hired a web designer who will work for equity, on the chatbot's suggestion.?

Follow Jackson to see how his journey unfolds.

Goodbyte for now.

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