The AI job losses begin

Global AI rules are unlikely to be in place before a major AI-related catastrophe occurs, according to a news story in AXIOS.

For corporate affairs managers this, and similar predictions, should be the canary in the coal mine that alerts them to the importance of protecting their reputation by ensuring AI safeguards are in place.

The CSIRO and Alphinity Investment Management are already investigating ESG issues that they say many investors are concerned about. However, in true free market style, organisations that are likely to reduce the size of their workforces have seen a spike in their share prices since the introduction of ChatGPT. All this as unemployment statistics in the US officially start to recognise unemployment due to the introduction of AI. For 3,900 American families, the reality of AI is already starting to hit home.

Read more about these issues and more, in this edition of Reputation Week.?

Copyright: Japan relaxes copyright rules for AI datasets

Anime and graphic art creators in Japan are concerned that AI could lower the value of their work, following a decision by the Japanese government to exclude copyright rules from AI training datasets.?

Technomancers blog reports that Japan’s government reaffirmed its stance, saying AI developers can use material “regardless of whether it is for non-profit or commercial purposes, whether it is an act other than reproduction, or whether it is content obtained from illegal sites or otherwise.”

With instability in Taiwan, Japan appears to be aggressively positioning itself as a more reliable technology and chip manufacturing base.

Biometrics: Korea tightens biometric laws?

Amid concerns about the increasing use of biometric data by organisations using generative AI, South Korea’s Personal Information Protection Commission has launched action to strengthen biometric laws.

“Unfettered use of such technologies could pose a threat to individual privacy rights, as well as freedom of assembly and association,” reports the US? National Law Review, noting that Singapore is also considering similar action.?

Law: Court fiasco as lawyer uses ChatGPT to write his brief

A lawyer with more than 30 years’ experience is facing possible sanctions after he used ChatGPT to write a 10-page brief. Suspicions were raised when neither the opposing lawyers nor the judge could find the decisions summarised in the brief.

According to the New York Times, that lawyer said he “greatly regrets” relying on ChatGPT “and will never do so in the future without absolute verification of its authenticity.”

Technology: Apple’s AI strategy will soon be a virtual reality

Whilst all eyes are on Apple’s rumoured announcement of a VR headset (probably later today), investors are already asking questions about the company’s AI strategy. According to one analyst, TF Securities’ Ming-Chi Kuo, success of the headset could “immensely impact 3D interaction design and 3D computer graphics”. Investors are more interested in when Apple will release ChatGPT-like services.?

He does note that this technology will require upgraded hardware by consumers - no doubt putting a smile on the face of investors.?

Workforce: First signs of the AI generating job losses

For the first time, the Challenger jobs report in the US has clearly shown that some jobs are being lost to AI.?

Bloomberg Law reports that for the month of May, the Challenger Job Cut Announcement Report” showed that 3,900 jobs in the US were cut because of “Artificial Intelligence”.?

Workforce: Chat GPT’s release sparks share price rise in companies hit hardest?

A study of organisational value has found that organisations with workforces that have higher exposure to generative AI and related Large Language Models (LLMs) benefited from the arrival of ChatGPT. Put simply, share prices of companies in which workers were likely to lose their jobs, went up.?

The research, published by the Centre for Economic Policy Research (CEPR), includes a footnote that IBM “will halt hiring of 7,800 jobs that could be replaced by AI”.?

Productivity: AI increases productivity, but who pays?

Australia’s ABC has highlighted the productivity issues of AI, with one employer publicly stating that her team has saved 2,700 working hours in the past six months - that’s about 100 hours per week.?

Mundane and routine tasks have been minimised. One example given was preparation of quarterly reports for clients.?

"Previously, that was prepared over two weeks, every quarter, by three or four staff members, that now gets run overnight, so in less than a day,” said a partner at an accounting firm.?

What the story doesn’t make clear is if clients are made aware of the AI automation, and if they are charged differently because of the significant reduction in staff time needed.?

ESG: CSIRO and fund manager will help investors identify “responsible AI”

Increased interest by investors keen to understand how AI impacts on environmental, social and governance (ESG) issues has resulted in the CSIRO and Alphinity Investment Management joining forces for a year-long research program.?

The Sydney Morning Herald reports that Alphinity’s head of ESG and sustainability, Jessica Cairns, said discussions about AI and its ethical implications started long before ChatGPT’s launch earlier this year.

She emphasised the importance of considering AI implementation in relation to ESG issues.

“I think it’s important that we get ahead of the potential issues and really understand how the application of AI should be considered in line with our ESG framework,” she said.

Trust: More than one third of US trusts AI companies

Tech Brew reports that Americans are split on their trust of AI companies.

A survey conducted in April 2023 suggested that whilst 38% of those surveyed trusted AI companies, 26% were unsure, and 36% said they didn’t trust the sector.?

The survey found that 43% of respondents agreed the sector should be more tightly regulated, with 10% saying it should be less regulated.

The results are in contrast to another survey by Morning Consult Research that suggests 52% of Americans trust household tech names to “do what is right”. Trust, however, fell more than 6% on the previous year.?

Hybrid AI workshop

IABC NSW is hosting a (hybrid) AI panel event on Thursday 8 June. Speakers include:

• Elizabeth Greene, Head of Communications at Microsoft ANZ
• Lee Hickin, Chief Technology Officer at Microsoft ANZ
• Alex Manchester, Co-Founder and Chief Product Officer, Traffyk.ai

The event is free for IABC members, and just $50 for non-members.

Register at: https://www.eventbrite.com.au/e/leveraging-ai-in-communications-tickets-636107563847?

In Brief

• Turnitin, the plagiarism and AI detection service used by many schools and universities has a higher false positive rate than the company originally asserted according to Inside Higher Ed. “We understand that as an education community, we are in uncharted territory,” a representative said.
• US politician Ritchie Torres plans to introduce a bill that would require content produced by generative AI to include a disclaimer noting the content’s source.
• AI CEOs and lobbyists are recycling claims made to support light regulation of social media and crypto currencies, according to an opinion piece in the Financial Times. Keep tech CEOs away from AI regulation, says Marietje Schaake.

Reputation Week provides general advice only and should not be used as a basis for making decisions about your particular circumstances.