Five Top Tech Takeaways: Canada's $2.4B AI bet, Adobe Goes Open, Training Data Shortage, Cdn SMBs Go Big on AI and Turnitin's Take on AI & Plagiarism

Canada Invests $2.4 Billion in AI

$2.4 Billion Infusion: Canada's Move to Spearhead AI Innovation and Safety

Canada is advancing its position in the global AI sector, as detailed by the Canadian government's announcement of a $2.4 billion investment package from Budget 2024 aimed at enhancing Canada's AI capabilities. This investment is intended to catalyze job growth, improve productivity, and ensure responsible development and use of AI technologies across various industries. The funds are allocated towards enhancing computing capabilities, boosting AI startups, supporting small to medium businesses with AI adoption, and establishing new institutes and programs for AI safety and workforce transition. These efforts underscore the Canadian government's commitment to maintaining Canada's leadership in AI innovation and providing high-quality job opportunities in the sector.

Key Takeaways:

• The Canadian government has announced a $2.4 billion investment to strengthen the nation's AI sector, aimed at boosting job creation and productivity.
• Investments include significant funds for computing infrastructure, support for AI startups, and programs to aid businesses and workers in adopting AI technologies.
• The establishment of a new Canadian AI Safety Institute and the strengthening of AI legislation highlight Canada's focus on the responsible and secure advancement of AI technology.
  

(Source: PM Canada)

Adobe Opts For Open: Embracing OpenAI's Tools in Premiere Pro

Adobe is exploring a partnership with OpenAI and other companies as it integrates third-party generative AI tools into its Premiere Pro video editing software. This initiative aims to enhance the software's capabilities by allowing adding AI-generated objects or removing distractions with minimal manual effort. Adobe is leveraging its proprietary AI model, Firefly while considering how to incorporate external AI technologies like OpenAI's Sora. Despite the ongoing development and lack of a set release timeline, Adobe's strategy reflects its efforts to innovate amidst a competitive landscape and a significant drop in stock value this year.

Comment:  Adobe's strategic decision to make Premiere Pro open to third-party AI video makers has enabled it to avoid the pitfalls that Apple initially faced with its closed ecosystem approach to the Macintosh. Adobe has "future proofed"Premiere Pro by allowing access to third-party AI video makers. This approach contrasts sharply with Apple's early strategy with the Mac and nearly repeated with the iPhone, which restricted third-party access, limiting system functionality and user choice. By embracing openness, Adobe has enhanced its offering to video creators who want to leverage AI-generated content. 

Here, Igor Pogany walks us through the demo that Adobe has released:

Key Takeaways:

• Adobe is integrating third-party AI tools into its Premiere Pro software, potentially enhancing video editing capabilities. This includes OpenAI, Runway ML, and PikaLabs. 
• The company continues to use its AI model, Firefly while exploring collaborations with OpenAI and other AI developers.
• Despite the potential of these AI tools, Adobe faces market pressures, with its stock declining by about 20% this year.

(Source: Reuters)

Turnitin Tackles AI: Insights from 200 Million Paper Reviews

In the past year, over 22 million student papers suspected of utilizing generative AI were submitted for review, according to the latest data from Turnitin, a prominent plagiarism detection company. This development follows the integration of an AI writing detection tool by Turnitin, designed to identify AI-generated content within student work. Despite the challenges of distinguishing AI-authored content from human writing, the tool has evaluated over 200 million papers, flagging 11% as containing significant AI-generated content. This surge in AI use among students underscores the evolving landscape of academic integrity and the need for sophisticated detection tools that balance effectiveness with fairness, particularly in avoiding bias against non-native English speakers.

Key Takeaways:

• Turnitin's AI detection tool has reviewed over 200 million papers, identifying a notable percentage with significant AI-generated content.
• The tool's development highlights the growing concern over academic integrity in the era of AI, prompting the need for reliable detection methods.
• Issues of bias and the complexity of AI detection in academic settings remain significant, influencing institutions like Montclair State University to reassess their use of such technologies.

(Source: Wired)

AI Adoption Soars Among Canadian SMBs: A Look at the Numbers

A recent report by Float reveals a significant increase in artificial intelligence adoption among Canada's small to medium-sized businesses (SMBs), with 32% now subscribing to ChatGPT, up from just 14% a year earlier. This surge reflects a broader trend of integrating AI to enhance efficiency and productivity across various sectors, not only in mundane tasks but throughout entire organizations. According to Rob Khazzam, CEO of Float, this growth is not just a technological shift but a necessary evolution to extend operational budgets further. Despite general economic caution, with most companies maintaining flat spending levels, advertising expenses have notably doubled, indicating a readiness for growth. The report, which analyzed credit card transactions across 1,000 companies, also highlights a robust increase in spending among larger firms, signaling potential economic rebound.

Key Takeaways:

• AI adoption among Canadian SMBs has more than doubled in a year, with 32% now using ChatGPT.
• Businesses are applying AI broadly across functions, aiming to maximize efficiency and extend financial resources.
• Despite cautious spending in general areas, advertising expenditures have doubled, suggesting a move towards aggressive growth strategies.

(Source: BNN Bloomberg)

The Data Dilemma: AI Giants Grapple with Training Material Shortages

OpenAI has developed its Whisper audio transcription model to transcribe over a million hours of YouTube videos for training its GPT-4 model, as reported by The New York Times. Despite legal ambiguities, OpenAI pursued this method under the belief it constituted fair use. The company is exploring the creation of synthetic data to diversify its training resources further. Meanwhile, Google and Meta are also navigating the constraints of training data availability, with Google adjusting policies to expand permissible data use and Meta considering acquisitions to secure more content. These strategies highlight the intense demand for high-quality data as AI companies strive to enhance their models' capabilities amidst growing legal and ethical scrutiny.

Key Takeaways:

• OpenAI utilized a large volume of YouTube video transcripts, believing it to be fair use, to train its GPT-4 model.
• The AI industry faces a critical shortage of high-quality training data, pushing companies like Google and Meta to seek creative solutions.
• Legal and ethical challenges continue to complicate the sourcing of training data for AI models.

(Source: The Verge)

Author: Malik Datardina, CPA, CA, CISA. Malik works at Auvenir as a GRC Strategist who is working to transform the engagement experience for accounting firms and their clients. The opinions expressed here do not necessarily represent UWCISA, UW, Auvenir (or its affiliates), CPA Canada or anyone else. This post was written with the assistance of an AI language model. The model provided suggestions and completions to help me write, but the final content and opinions are my own.

Five Top Tech Takeaways: Lawyer/GenAI Trouble (Again), FTX Insider on the Stand, Coffee Badging Explored, Adobe Strikes Back, and Quantum Computing in Canada

Robot Lawyer Getting Grilled

Generative AI on the Stand (Again): Legal Outcomes Questioned in High-Profile Case

Prakazrel “Pras” Michel, a member of the Fugees, has challenged his conviction, citing his defense's reliance on generative AI for closing arguments as a critical failure. This unprecedented use of AI, touted as a game-changer for complex litigation, backfired, with attorney David Kenner allegedly confusing case details and misquoting lyrics. While the tool's developer, EyeLevel.AI, defends its application, emphasizing its role in enhancing legal procedures rather than replacing human input, critics argue the technology's infancy and propensity for generating “hallucinations” or misleading information. The situation underscores the legal industry's rapid and potentially precarious engagement with AI, as experts warn of the need for meticulous review standards. As law firms increasingly adopt AI, this case serves as a cautionary tale, highlighting the technology's potential and pitfalls in critical legal scenarios. (Source: Yahoo Finance)

The incident serves as a good example of "abdication" when using generative AI. Professionals should instead focus on use cases that look at amplifying one's effort instead. For more, check out my post on Medium, which also includes links to previous mishaps involving lawyers, fake cases, and ChatGPT. 

From AI to Quantum: Canadian Tech Takes a Giant Leap

Bromont, Quebec, hosts one of the world's few quantum computers, specifically the IBM Quantum System One, marking a monumental stride in both scientific and commercial sectors. This exclusive installation, the only one in Canada, underscores the location's rich talent pool and expertise, particularly in artificial intelligence and quantum computing convergence. The groundbreaking technology promises to revolutionize computations, tackling more complex, multi-variable calculations unreachable by current standards, primarily benefiting logistics, sustainable development, and potentially the financial sector. While still in the exploratory phase with certain operational challenges, quantum computing is poised for substantial evolution, anticipating growth from its current 127 qubits to over a thousand, significantly minimizing error rates and enhancing computational longevity and complexity. This advancement not only cements Canada's position on the global tech stage but also beckons foreign enterprises, asserting its status as an emerging, influential hub in technology and innovation. (Source: CTV News)

FTX Unraveled: Singh’s Testimony Highlights Billion-Dollar Discrepancies

In a recent development that has rocked the financial and tech sectors, Nishad Singh, a former executive and close associate of Sam Bankman-Fried (SBF), founder of FTX, has made serious allegations in court, suggesting high-level financial misconduct within the company. Detailing his interactions with Bankman-Fried, Singh's testimony provides an insider's view of a series of alleged fraudulent activities and fiscal mismanagement that led to significant financial discrepancies within the firm.

Specific allegations by Singh include:

• Misappropriation of FTX customer funds by Alameda, another company under Bankman-Fried.
• A staggering $13 billion debt from Alameda to FTX, with an inability to repay $8 billion of this amount.
• Alameda was operating with insufficient collateral, often falling short by as much as $10 billion.
• Unchecked excessive spending by Bankman-Fried, including lavish investments and endorsement deals totaling over $1 billion.
• Investments into ventures perceived as non-beneficial and toxic to FTX and Alameda's culture.
• Manipulation of financial data, such as creating back-dated transactions to falsify FTX's revenue figures.
• Use of a code feature, “allow_negative,” for inappropriate internal transactions.
• Singh's involvement in shady transactions at Bankman-Fried's behest, including transfers to obscure accounts and back-dating token transfers to deceive regulatory bodies.
• Political donations made from Singh's accounts without his direct consent, highlighting a lack of financial control among company executives.
• Emotional and mental duress leading to suicidal ideation for Singh during the company’s collapse.
• Singh’s candid courtroom revelations depict a scenario of betrayal, intimidation, and a flagrant abuse of power and trust within the upper echelons of FTX, raising grave concerns about corporate governance in rapidly growing tech companies.

 As noted in The Verge's original piece, Singh was one of many to turn on SBF: "On November 20th, 2022, Singh had his first meeting with prosecutors. Of the inner circle, Wang cooperated first. Singh was second. Ellison was third." Source: The Verge)

"Coffee Badging": A Clever Hack or a Career Hazard?

"Coffee badging" is a term that has gained traction in the corporate world, referring to the practice of employees briefly appearing at the office, only to leave shortly after. As companies increasingly require employees to return to the office, some workers, rather than defying these mandates, have chosen to abide by them in the most minimal way possible. They may appear on days when few colleagues are around, leave early, or barely show up at all. This is akin to students signing attendance sheets and then skipping lectures. While it may seem like a clever hack to the return-to-office system, there are potential pitfalls. Keith Styrcula, CEO of Glasstower Digital, notes that face-to-face time and office politics can be as crucial as merit in the corporate world. A recent survey by KPMG revealed that nearly two-thirds of U.S. CEOs expect employees to work full-time in offices within three years, and 90% would reward those who frequent the office with favorable assignments and promotions.

Key Takeaways:

• "Coffee badging" refers to the act of briefly showing up at the office and leaving soon after.
• While it may seem advantageous in the short term, long-term consequences could include missed opportunities and promotions.
• A KPMG survey found "almost two-thirds said they envision employees working in offices full-time three years from now, and 90% said they’ll reward office goers with favorable assignments, raises and promotions. ".

Source: The Wall Street Journal

AI-Powered Video Editing: Adobe Strikes Back

Adobe recently showcased its innovative generative fill feature named "Project Fast Fill" at the MAX conference. This feature, powered by artificial intelligence, can effortlessly add or remove objects in videos. It offers capabilities like changing clothing accessories on moving people or erasing tourists from video landscapes. This new feature operates similarly to Google’s Magic Editor but is designed for videos instead of still images. With the advancement of Adobe’s updated Firefly AI models, Project Fast Fill can also modify colors in still photos by merely inputting a text prompt. Although currently experimental, past trends indicate that such features eventually become available to Creative Cloud users.

Key Takeaways:

• Adobe's "Project Fast Fill" allows users to add or remove objects in videos using AI.
• Adobe is striking back at its competition: the feature works similarly to Google's Magic Editor but is designed for video content.
• Adobe is expanding its AI editing technology to other areas like video, audio, and 3D design, introducing features like voice translation and 3D object posing

(Source: The Verge)

Author: Malik Datardina, CPA, CA, CISA. Malik works at Auvenir as a GRC Strategist who is working to transform the engagement experience for accounting firms and their clients. The opinions expressed here do not necessarily represent UWCISA, UW, Auvenir (or its affiliates), CPA Canada or anyone else. This post was written with the assistance of an AI language model. The model provided suggestions and completions to help me write, but the final content and opinions are my own.

The Furious Five (June 27):Adobe/Meta AI Moves, Netflix's Anti-Sharing Economy, and the Titan Tragedy

Adobe Dominates (link)

Adobe's Financial Triumph Fueled by AI Innovation

Adobe's focus on AI has been credited for the company's recent financial successes. For example, the company is leveraging AI innovations across its product suite, notably Firefly, an AI tool for generating images. This focus on AI has contributed to Adobe's robust financial performance, with the company surpassing Wall Street expectations for the quarter ended June 2, posting revenues of $4.82 billion and adjusted profits of $3.91 per share. Adobe's shares rose over 5% in aftermarket trading following the announcement. This bullish outlook extends to future performance, with Adobe forecasting its current-quarter revenue to be in the range of $4.83 to $4.87 billion, and raising its FY 2023 revenue forecast to between $19.25 billion and $19.35 billion. The company's stock has seen a significant 40% increase since May, driven in part by investor optimism around Adobe's AI strategy. However, some analysts warn of potential overvaluation due to the hype around AI. Despite this, Adobe's management remains optimistic about the future of AI in enhancing their product accessibility and customer productivity. (Source: Reuters, Seeking Alpha)

Outmaneuvering the Competition: Meta’s Open-Source AI Gambit

Tech giant Meta is reportedly planning to offer a commercial license for its forthcoming open-source large language model (LLM), according to an exclusive from The Information. If true, this marks a major shift in approach, as most currently commercially used language models, such as Google's Bard and OpenAI's ChatGPT, are closed-source. This innovative move could potentially lead to broader adoption by companies seeking a more flexible and cost-effective AI solution. However, it's worth noting that this development hasn't been widely reported or confirmed by Meta, so caution is advised until further information is available. (Source: Artisana)

Trustworthy AI: NAIAC's Strategy for Harnessing AI Benefits and Mitigating Risks + NIST AI Risk Framework

The National Artificial Intelligence Advisory Committee (NAIAC) has submitted its inaugural report to the President, outlining strategies for the U.S. government to harness the benefits of AI technology while mitigating its potential risks. The report emphasizes the need for trustworthy AI, new R&D initiatives, international collaboration, and workforce support. Future focus areas for NAIAC include rapidly evolving AI sectors like generative AI. The committee is also set to reassess its working groups to more effectively study the influence of AI on various societal facets such as workforce, equity, and societal norms. Deputy Secretary of Commerce Don Graves highlighted the critical juncture the country is at regarding AI development and the necessity of balancing innovation with risk management. The Biden-Harris administration has emphasized responsible American innovation in AI to safeguard people's rights and safety. The committee's future endeavors will consider mechanisms to keep pace with the swift development and deployment of AI technology. The report also references this AI-Risk framework published by NIST. (Source: NIST)

Netflix Gains On its Anti-Sharing Strategy

Netflix's is benefitting remarkably from the shift towards an 'anti-sharing' economy. During a recent period, the streaming giant experienced a significant surge in new sign-ups, averaging 73,000 daily—a 102 percent increase compared to their previous 60-day average. Remarkably, Netflix added 100,000 subscribers each on May 26th and May 27th. At the same time, Netflix's recent policy change limiting password sharing outside individual households is significantly altering dynamics among families and friends who previously relied on shared subscriptions. While this strategy has boosted the company's sign-ups and revenues, it raises questions about the social and relationship impacts of such business decisions. This shift towards an 'anti-sharing' economy is causing what some users describe as 'breakup talks', disrupting established patterns of digital sharing and challenging relational norms. Although this move is aligned with Netflix's commercial goals, it sparks a discussion about the role companies should play in shaping societal behaviors and norms, highlighting the need for an ESG (Environmental, Social, and Governance) perspective in policy decisions. As we see companies making choices that prioritize economic gain over social dynamics, it's essential to consider the broader implications and the role business should play in fostering or disrupting social connections. (Source: TheVerge, WSJ)

Titan Disaster: A Governance, Risk, Compliance Tragedy

OceanGate's Titan submersible incident has starkly underscored the importance of rigorous internal controls, adherence to governance risk, and compliance for businesses. Despite the repeated warnings about Titan's safety by a prominent deep sea exploration expert, the company's CEO, Stockton Rush, overlooked these critical insights in his pursuit of innovation and market dominance. The tragic consequences were not only fatal to him and four other passengers but also posed severe risks to the broader industry. Critics argue that these calamities were preventable had OceanGate prioritized safety certification and independent validation before operating commercially. Rush's dismissal of such safety precautions—viewing them as barriers to innovation—reflects a dangerous misapprehension that can jeopardize both human life and the reputation of an industry. In the wake of this tragedy, the importance of sound internal controls, risk management, and compliance with accepted standards is clearer than ever. (source: BBC)

Author: Malik Datardina, CPA, CA, CISA. Malik works at Auvenir as a GRC Strategist that is working to transform the engagement experience for accounting firms and their clients. The opinions expressed here do not necessarily represent UWCISA, UW, Auvenir (or its affiliates), CPA Canada or anyone else. This post was written with the assistance of an AI language model. The model provided suggestions and completions to help me write, but the final content and opinions are my own.