Curious AI Newsletter #16

29 February? 2024 - It’s a leap year! With or without AI.

Welcome to the sixteenth issue of the Curious AI Newsletter, curated by cyber futurist and former Gartner Research Director Oliver Rochford, and synthesized by AI.?

Key Themes in this issue:

The expectation levels just get so high that they cannot be met

Catherine Wood , CEO and CIO of ARK Invest (source)

• AI and Bias: Reports came in over the week of Google’s Gemini AI Chatbot and the controversial choices it makes to try and avoid bias or enforce ethical use. One highly cited example showed an image generated using Gemini portraying German WW2 soldiers as ethnically diverse , another showed the Chatbot equating Elon Musk with Hitler. Markets acted fast to punish Google, and commentators were quick to accuse Google of political bias. Aside from being funny, the episode shows again that bias is a thorny dilemma. The discussion isn’t really about unbiased AI. The argument revolves around whose biases should be encoded. Most people don’t want unbiased information. They want their biases reflected. AI is already another front in the culture war.?
• Business Adaptation to AI: Reports on Air Canada having to honor a commitment their AI Chatbot made on their behalf demonstrates the teething challenges businesses are encountering integrating AI into their operations.?Amazon warning employees about using 3rd party AI highlights that most organizations have work to do before they are ready to work with generative AI. Klarna reports that their use of AI already does the equivalent work of 700 full-time agents. The news triggered a drop in the value of call center shares.
• AI's Influence on Markets: Based on the news above and the swift and brutal market reaction to Google's Gemini AI mishaps, the biggest disruption from AI so far has been in investing. Concerns about overvaluation and sustainable growth are starting to be voiced by some investors.

AI and Geopolitics

The Age of Sovereign AI

VentureBeat | https://venturebeat.com/ai/get-ready-for-the-age-of-sovereign-ai-jensen-huang-interview/

Jensen Huang, in an interview with VentureBeat, discusses the emerging concept of 'Sovereign AI'. He foresees a transformative era where AI becomes integral to national strategies and operations. This shift towards Sovereign AI signifies the growing importance of AI in geopolitical and economic contexts, highlighting its potential to reshape global dynamics. The article delves into the implications of AI's rise as a strategic asset for nations and its impact on international relations and technological development.

Sentiment: Neutral to Positive | Time to Impact: Mid-term

AI and Business

Are you ready to back up your AI chatbot's promises? You'd better be

The Register | https://www.theregister.com/2024/02/23/opinion_column/

The article discusses the challenges businesses face when replacing human employees with AI chatbots. It highlights a case where Air Canada's AI chatbot made a customer commitment that the company had to honor, leading to legal implications. The article emphasizes the importance of accuracy and reliability in AI technologies and warns against over-reliance on them in customer service and other business operations.

Sentiment: Concerned | Time to Impact: Immediate

Klarna's AI Assistant Outperforms Human Customer Service

Inc | https://www.inc.com/ben-sherry/klarna-says-its-new-ai-assistant-is-outperforming-customer-service-representatives.html

Klarna reports its new AI assistant is outperforming human customer service representatives in efficiency and effectiveness, claiming it does the equivalent work of 700 full-time human agents. This marks a significant shift in customer service dynamics, with AI increasingly taking the lead in consumer interactions. The development reflects growing confidence in AI capabilities and suggests a potential trend towards automation in customer service roles across industries.

Sentiment: Positive | Time to Impact: Immediate

Teleperformance's Stock Decline Amid AI Adoption in Customer Service

Bloomberg | https://www.bloomberg.com/news/articles/2024-02-28/teleperformance-sinks-as-klarna-fuels-worries-over-impact-of-ai

Teleperformance's stock value decreased due to AI's growing role in customer service, as highlighted by fintech company Klarna's switch to AI-based solutions. This trend reflects AI's disruptive impact on traditional business models, especially in customer relations sectors, and emphasizes the urgency for companies to integrate AI to remain competitive in the evolving market landscape.

Sentiment: Concerned | Time to Impact: Immediate

Your Organization Isn’t Designed to Work with GenAI

Harvard Business Review | https://hbr.org/2024/02/your-organization-isnt-designed-to-work-with-genai

Organizations must adapt their structures to effectively incorporate Generative AI (GenAI). The article emphasizes that traditional organizational designs are not optimized for the unique challenges and opportunities presented by GenAI. It suggests rethinking roles, processes, and strategies to leverage GenAI's capabilities fully. The integration of GenAI necessitates a shift in how tasks are assigned and managed, highlighting the need for a more dynamic and flexible approach to organizational design.

Sentiment: Neutral | Time to Impact: Immediate to Short-term

Google's Gemini Headaches Cause $90 Billion Sell-Off

Forbes | https://www.forbes.com/sites/dereksaul/2024/02/26/googles-gemini-headaches-spur-90-billion-selloff/

Google's AI chatbot Gemini, facing backlash for generating historically inaccurate images, caused a $90 billion sell-off in the company's market value. This controversy highlights the challenges in deploying AI technologies responsibly, particularly in sensitive areas like historical representation. The incident underscores the need for more robust AI systems that avoid misinformation while maintaining public trust in emerging technologies.

Sentiment: Negative | Time to Impact: Immediate

As Nvidia hits $2 trillion, billionaire Marc Rowan’s asset manager Apollo calls AI a ‘bubble’ worse than even the dotcom era

Fortune | https://fortune.com/2024/02/26/nvidia-ai-bubble-apollo-asset-manager-dotcom-artificial-intelligence/

A senior asset manager from Apollo compares the current AI industry surge to the dot-com bubble, focusing on Nvidia's central role. They argue that while Nvidia's stock and influence in AI have grown, the industry's rapid expansion may not be sustainable. This perspective raises concerns about potential market corrections similar to the dot-com crash, suggesting investors should be cautious about the AI sector's hype and future stability.

Sentiment: Concerned | Time to Impact: Short to Mid-term

Amazon Warns Employees Not to Use GenAI for Work

Business Insider | https://www.businessinsider.com/leaked-amazon-documents-warn-employees-not-use-genai-for-work-2024-2

Leaked documents reveal Amazon cautioning its employees against using generative AI (GenAI) tools for work-related purposes. This warning reflects concerns over the reliability and potential risks associated with AI-generated content. Amazon's stance highlights the growing need for clear guidelines and ethical considerations in the corporate use of AI technologies, particularly in sensitive areas like decision-making and communication.

Sentiment: Cautious | Time to Impact: Immediate

AI Supply chain

Buyers of Nvidia's highest-end H100 AI GPU are reportedly reselling them as supply issues ease

Tom's Hardware | https://www.tomshardware.com/tech-industry/artificial-intelligence/nvidia-h100-buyers-are-reportedly-reselling-their-h100s-as-supply-issues-ease

Buyers of Nvidia's H100, a high-demand AI GPU, are reportedly reselling their units as supply constraints ease. Initially scarce due to high demand in AI applications, the H100's increased availability has led to a secondary market. This trend reflects the intense interest and investment in AI hardware, highlighting Nvidia's significant role in the AI and technology sectors. The resale of H100s indicates a shift in the AI hardware market dynamics, adapting to changing supply and demand factors.

Sentiment: Neutral | Time to Impact: Immediate

AI surge boosts the ambitions of a nuclear startup

Axios | https://www.axios.com/2024/02/27/artificial-intelligence-nuclear-smr

Artificial Intelligence is playing a key role in advancing Small Modular Reactor (SMR) technology in the nuclear industry. AI's capabilities in data analysis and predictive modeling are enhancing the development of these reactors, making them more efficient and safer. The use of AI in SMR development signifies a significant shift in nuclear technology, merging advanced computing with energy innovation. This development could lead to a more sustainable and secure energy future, emphasizing AI's growing influence in critical industries.

Sentiment: Positive | Time to Impact: Mid-term

Surveillance AI

AI Monitoring Employee Communications

9to5Mac | https://9to5mac.com/2024/02/12/ai-monitoring-employee-comms/

A growing trend sees companies using AI to monitor employee communications for efficiency and compliance. This practice, while raising productivity, is also causing concerns about privacy and the potential for misuse. The article examines this trend, discussing its implications for workplace privacy and the balance between organizational oversight and employee rights.

Sentiment: Neutral to Concerned | Time to Impact: Immediate

UK:? AI Motoring Cameras Are Trialed to Police Phone and Seatbelt Use

BBC News | [link](https://www.bbc.co.uk/news/uk-england-sussex-68402912.amp)

Police in the UK is trialing AI-equipped safety cameras to detect drivers using phones or not wearing seatbelts. Mounted on vehicles or trailers, these cameras process footage for police review. Criticisms include potential privacy issues and replacing traditional policing. The trial, part of a larger 10-force initiative, aims to enhance road safety. Concerns about effectiveness and potential legal disputes are discussed, emphasizing the importance of human intervention in monitoring driving standards.

Sentiment: Neutral | Time to Impact: Short-term

AI and Work

AI and the Productivity Paradox

LiveMint | https://www.livemint.com/opinion/online-views/thank-the-productivity-paradox-ai-isn-t-the-job-killer-it-s-feared-to-be-11708526529556.html

The article discusses the productivity paradox surrounding AI and job displacement fears. Contrary to widespread concern, AI hasn't resulted in significant job losses, thanks to the productivity paradox. This phenomenon occurs when technological advancements don't immediately translate into productivity gains due to adaptation and integration challenges. The article suggests that AI, rather than being a job killer, may actually offer a balanced impact on the workforce, requiring time for its full potential to be realized and integrated into various sectors.

Sentiment: Neutral | Time to Impact: Mid-term

Generative AI and the Future of Work

Insurance Insider | https://www.insuranceinsider.com/article/2cvmhhs94cvxxulc7o0lc/reinsurers-section/generative-ai-will-fundamentally-change-the-world-of-work-swiss-res-tech-chief

Swiss Re's tech chief predicts a fundamental transformation in the workplace due to generative AI. This technology, which can create new content, is seen as a game-changer for various industries, including insurance. It's expected to significantly alter work processes, requiring adaptation in skills and approaches. The emphasis is on the impact of AI on efficiency and innovation, rather than job displacement, signaling a shift towards more tech-driven work environments.

Sentiment: Neutral | Time to Impact: Mid-term

Generative AI's Next Phase: Autonomous Agents

Axios | https://www.axios.com/2024/02/26/generative-ai-next-act-autonomous-agents

Axios reports on the evolving landscape of generative AI, highlighting its transition towards creating autonomous agents. These agents are expected to operate with greater autonomy and intelligence, potentially transforming various sectors by handling more complex tasks. This development signifies a significant shift in AI capabilities, pointing to a future where AI plays a more active and integrated role in decision-making and operational processes across industries.

Sentiment: Positive | Time to Impact: Mid-term

AI and Trust, Risk, and Security Management

Google Chatbot’s A.I. Images Put People of Color in Nazi-Era Uniforms

The New York Times | https://www.nytimes.com/2024/02/22/technology/google-gemini-german-uniforms.html

Google's AI chatbot Gemini generated historically inaccurate images of people of color in WWII German uniforms, raising concerns about AI's role in spreading misinformation. Google has temporarily halted Gemini's ability to create human images to address these issues. This incident underscores the challenges in AI's racial sensitivity and historical accuracy. Google's efforts to balance diversity and precision in AI imagery are ongoing, reflecting broader concerns about AI-generated content's potential impact.

Sentiment: Concerned | Time to Impact: Immediate

AI in the Legal profession

[We shared several good articles in issue #14 on AI and the legal profession]

Judge slaps down law firm using ChatGPT to justify six-figure trial fee

The Register | https://www.theregister.com/2024/02/24/chatgpt_cuddy_legal_fees/

A New York law firm faced criticism from a federal district judge for using ChatGPT to justify legal fees in a trial. The firm, Cuddy Law, submitted a billing request supported by ChatGPT’s feedback, which the judge found unpersuasive. The judge's disapproval highlights the potential pitfalls and limitations of relying on AI for professional legal assessments. This incident underscores the need for careful consideration when integrating AI into legal practices.

Sentiment: Concerned | Time to Impact: Immediate

AI and Journalism

How AI Is Already Transforming the News Business

Politico | https://www.politico.com/news/magazine/2024/02/27/artificial-intelligence-media-00143508/

Politico explores how artificial intelligence is reshaping the media landscape. AI technologies, particularly generative models, are transforming content creation, distribution, and consumption. The article examines the implications for journalism and the media industry, including the challenges of ensuring the accuracy and ethical use of AI-generated content. It highlights the potential for AI to both innovate and disrupt traditional media practices, emphasizing the need for careful navigation of AI's evolving role in the media sector.

Sentiment: Neutral | Time to Impact: Immediate to Short-term

AI and Robotics

Big Tech's Investment in Humanoid Robots

Livemint | https://www.livemint.com/ai/artificial-intelligence/big-tech-bets-big-on-humanoid-robots-bezos-nvidia-microsoft-join-675-million-figure-ai-funding-round-11708737467750.html

Big Tech companies, including Amazon's Jeff Bezos, Nvidia, and Microsoft, are investing heavily in humanoid robotics, contributing to a $675 million funding round for Figure AI. This investment underscores the growing interest in developing advanced humanoid robots. These robots, driven by significant technological advancements, have potential applications across various sectors. The involvement of major tech players signals a strong belief in the transformative potential of humanoid robotics in the near future.

Sentiment: Positive | Time to Impact: Mid-term

Researchers Caution Against Running AI on Robots Without Safety Measures

The Register | https://www.theregister.com/2024/02/27/boffins_caution_against_running_robots/

Scientists warn against integrating AI into robots without adequate safety measures. The concern arises from potential risks if AI-driven robots act unpredictably or harmfully. Experts emphasize the importance of robust testing and ethical considerations. This caution reflects a growing awareness of AI's impact on robotics, underscoring the need for responsible development in this rapidly evolving field.

Sentiment: Cautious | Time to Impact: Immediate

About the Curious AI Newsletter

AI is hype. AI is a utopia. AI is a dystopia.

These are the narratives currently being told about AI. There are mixed signals for each scenario. The truth will lie somewhere in between. This newsletter provides a curated overview of positive and negative data points to support decision planners and makers in forecasts and horizon scanning. The selection of news items is intended to provide a cross-section of articles from across the spectrum of AI optimists, AI realists, and AI pessimists and showcase the impact of AI across different domains and fields.

The news is curated by Oliver Rochford, Technologist, and former Gartner Research Director. AI (ChatGPT) is used in analysis and for summaries.

Want to summarize your news articles using ChatGPT? Here's the latest iteration of the prompt. The Curious AI Newsletter is brought to you by the Cyber Futurists.