??Privacy vs. Profit, AI Reality Check, and Europe's Digital Dilemmas #7

Welcome all!

This week's newsletter dives deep into the ever-evolving world of technology. We explore the legal battles surrounding privacy and user data, the exciting (and sometimes concerning) advancements in Artificial Intelligence, and the challenges facing the Eurozone's productivity.

??Happy reading!?

??Chart of the week

Mert Damlapinar (link to post)

Key takeaways: In 2024, eCommerce remains a key driver of retail sales growth, expected to reach 33% of US sales by 2027. Retailers should focus on seamless omnichannel experiences and deals to boost consumer spending.?

??Expert insight of the week

Bernd Skiera (Link to post)

What can be learned from the charts? The EU's data protection board banned "Pay-or-Tracking Walls" used by some online platforms and news publishers. This means users can't be forced to accept tracking in exchange for free access.

The future of these walls is uncertain: they might be redesigned with specific rules, or disappear entirely.

If the walls are banned, news publishers might rely solely on subscriptions, potentially eliminating free content.

Studies show these walls were profitable for publishers, who saw a potential revenue increase of 16.4% by tracking users compared to a traditional cookie consent banner. However, most users still opted for tracking (avoiding paying) rather than the pay option.

? ?An espresso…

1. EDPB Says "Pay for Privacy" is Unfair: Platforms Must Offer Free, Privacy-Respecting Option
2. Free vs. Fee: Legal View on Paywalls and User Privacy in the EU
3. EU Navigates Digital Landscape: Six Challenges Demand Coordinated Response
4. AI Power Play: Businesses Optimize, Ethicize, and Hire for the Future (French Skepticism Lingers)
5. AI Use Cases Beyond the Hype - Specialized Tools, Not Superintelligence
6. 英伟达 's AI Powerhouse: Supercomputing Speed + Developer Friendly Tools = Market Domination
7. 谷歌 Sandbox Rollout Delayed Amid Uncertainty and Lack of Publisher Support
8. The Eurozone's Productivity Problem: Lagging Behind and How to Catch Up
9. Privacy Complaint Challenges ChatGPT 's Accuracy in EU
10. ICO Report Raises Concerns Over Google's Privacy Sandbox, Highlights Risks of Topics API

??More details??

?? ??Most relevant digital news and key takeaways

1.) The European Data Protection Board (EDPB) says online platforms shouldn't force users to give up data for free service or pay to protect it (paywalls). They want platforms to offer a free option without data tracking for behavioral advertising. The EDPB also says platforms need to get clear user consent and avoid creating situations where people feel pressured to give up their data. Such opinions by the EDPB under Article 64 GDPR are called "binding opinions". (Link to EDPB article)

Thank you, Romain Robert , for sharing.

2.) 霍金路伟 , a leading law firm, shares its view on paywalls: The advertising landscape is changing in Europe due to data protection regulations. Companies are exploring subscription models (paywalls) as an alternative to personalized advertising.

This shift raises concerns:

1. Balance: How to balance data protection with freedom of expression and a sustainable press industry (heavily reliant on advertising revenue).
2. User Choice: Are paywalls a genuine alternative to free, ad-supported services, or do they pressure users into giving up privacy?
3. Regulation: Should there be an outright ban on paywalls, or should a case-by-case approach be taken, considering factors like a fair alternative and user understanding?

Currently, EU regulations avoid a blanket ban, focusing on:

• User Consent: Users must freely choose between a paid, privacy-protected service and a free, ad-supported one.
• Transparency: Users need clear information about both options and their implications.

The upcoming decision by the EDPB on Meta 's paywall will be crucial.? A unified EU approach is needed to balance user privacy with a healthy press and media sector, considering data protection, competition, and consumer protection laws. (Link to article)

Thank you, David Pfau , for sharing.

3.) Johnny Ryan identifies six challenges arising from the digital age that require the European Union's attention. These challenges have significant implications for democracy, privacy, security, and the environment.

The Six Challenges:

1. Information Quality and Media Fragmentation: The dominance of advertising systems and algorithmic curation raise concerns about the quality and diversity of information available to users.
2. Data and Elections: The potential use of personal data to manipulate voters during elections necessitates robust safeguards.
3. Competition in the Digital Market: Concentration of data and its use across services raise questions about fair competition within the digital market.
4. Cybersecurity and Data Exposure: The widespread use of systems like Real-Time Bidding (RTB) may expose sensitive data, increasing vulnerability to cyberattacks.
5. Artificial Intelligence and the Future of Work: The growing role of AI in the workplace necessitates considerations for job displacement and the potential impact on workers.
6. Environmental Impact of Digital Technologies: The growing demand for computing power raises concerns about the carbon footprint of the digital infrastructure. (Link to article)

Thank you, Johnny Ryan , for bringing this up.

4.) AI trends according to industry experts:

• AI is becoming a major strategic issue for companies.
• Companies are increasingly using AI to optimize their supply chains. This includes using AI for predictive maintenance, anomaly detection, and generation of product catalogs.
• AI is being used to improve sales forecasting.
• Companies are concerned about the ethical implications of AI and are working to ensure that their AI applications are transparent and unbiased.
• There is a growing demand for talent with expertise in AI.

The industry experts also mention that AI is a divisive subject in France, with more than 50% of French people believing that it constitutes a significant risk to data security and intellectual property rights. However, the document also highlights that a growing number of French people believe that AI is essential and will fundamentally transform professions. (Link to the report)

5.) The potential and limitations of large language models (LLMs) like ChatGPT according to Benedict Evans .

Key points:

• LLMs are powerful tools but may not be user-friendly for everyone yet. They struggle with complex tasks requiring specific data or multi-step workflows.
• The real challenge is identifying use cases for LLMs. People need to understand how LLMs can be applied to their problems.
• Similar to the early days of 谷歌 Search, users need to learn how to interact with LLMs effectively to get the desired outcome.
• The success of LLMs may depend on building specialized applications around them, similar to how spreadsheets (Excel) leveraged the capabilities of personal computers.
• LLMs have the potential to automate many tasks currently done manually, but they may not be a general-purpose solution like some experts believe. (Link to the article)

6.) Why is 英伟达 's stock soaring? It boils down to two things: powerful AI supercomputers and user-friendly software.

• 英伟达 builds top-notch AI supercomputers with superior performance for training complex AI models.
• Their CUDA platform makes programming these machines easy, attracting developers and fueling the AI revolution.

This combo makes 英伟达 the go-to for AI development, leading to their current market dominance. (Link to article)

7.) The rollout of the 谷歌 sandbox will be postponed. This decision aligns with the current state of incomplete implementation and unresolved questions surrounding the sandbox. As of now, there is a lack of tracked key performance indicators (KPIs) from publishers that could provide a positive argument for the sandbox. The forthcoming report by the CMA/ 谷歌 will likely shed more light on this matter. (Link to article)

Thank you, Robert Blanck , for sharing this info.

8.) The eurozone is lagging behind in productivity due to slow tech adoption and a rigid business environment. This threatens growth, but reforms like increased competition, deeper integration, and investments in skills and green tech can close the gap. Using EU recovery funds effectively is key. The future of European prosperity depends on it. (Link to speech)

Thank you, Isabel Schnabel , for sharing your important insights.

9.) A privacy rights group ( noyb.eu ) in the EU filed a complaint against OpenAI regarding its AI chatbot, ChatGPT . The complaint alleges that ChatGPT generates inaccurate information about people and doesn't rectify it upon request. This practice conflicts with the General Data Protection Regulation (GDPR) which grants EU residents rights concerning the accuracy and accessibility of their personal information. This is not the first instance of a complaint against ChatGPT , with other EU nations investigating similar concerns. The resolution of these complaints could necessitate modifications to how ChatGPT functions within the EU. (Techcrunch )

Thank you, Luiza Jarovsky , for sharing this info.

10.) The Wall Street Journal recently reported concerns raised by the CMA and ICO regarding Google's Privacy Sandbox. The ICO's full report outlines extensive concerns covering numerous proposed APIs. Particularly, the Topics API is highlighted as posing significant risks for Google due to the scale of Chrome's operation, lack of monitoring/compliance, and partial dependency on website explanations for user consent. Despite Google's attempt to shift responsibility onto websites and partners, the report suggests this approach may not effectively address the identified risks. (Link to CMA report)

Thank you, Will Harmer, for sharing this info.

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