Five Top Tech Takeaways: AI to Reshape 92% of IT Jobs, Canadian AI Startup Raises $19M, GenAI's Teaching Dilemma, and More!

CheatGPT: The Teacher's Dilemaa

AI's Impact on IT: 92% of Jobs to Evolve

Artificial intelligence is set to significantly transform the IT job market, with a staggering 92% of IT roles expected to undergo high or moderate changes. The AI-Enabled ICT Workforce Consortium's recent report highlights that mid- and entry-level positions will be most affected, as AI reshapes the relevance of various skills. The report underscores the need for critical skills such as AI literacy, data analytics, and rapid engineering. Major tech companies, including Cisco, IBM, Intel, and Microsoft, are committing to extensive training programs to reskill and upskill millions of workers globally, ensuring an inclusive workforce for the AI era.

• Widespread Impact on IT Jobs: The report predicts that 92% of IT jobs will experience significant changes due to AI, especially in mid- and entry-level positions.
• Shifting Skillsets: Skills such as AI ethics, responsible AI, and AI literacy are becoming increasingly important, while traditional skills like basic programming and content creation are losing relevance.
• Industry Training Initiatives: Companies like Cisco, IBM, and Microsoft are launching large-scale training programs aimed at reskilling millions of workers to thrive in the AI-driven job market.

Source: CIO

Universities Debate the Role of AI in Classrooms

As universities across the U.S. navigate the new academic year, many are incorporating AI policies into their syllabi, addressing how tools like OpenAI’s ChatGPT should be used in coursework. Some institutions, such as Cornell and Columbia, leave the decision to individual professors, while others, like Arizona State University, actively integrate AI into the curriculum. Despite the growing use of AI, challenges remain, particularly in detecting AI-generated content. Universities are exploring various approaches, from strict bans to encouraging creative AI use, all while grappling with the evolving role of AI in education.

• Diverse AI Policies: Universities like Cornell and Columbia allow professors to decide AI's role in coursework, while others, like Arizona State University, embrace AI tools for educational purposes.
• Challenges in Detection: There is currently no reliable tool to detect AI-generated content, complicating efforts to enforce AI policies in academic settings.
• AI in Education: Some universities are rethinking assessments and encouraging the creative use of AI, viewing it as a tool to enhance learning rather than just a potential source of academic dishonesty.

Source: WSJ

Canada's Viggle AI Raises $19M to Revolutionize Animation with AI

Viggle AI, a Canadian startup specializing in AI-driven character animation, has secured $19 million in Series A funding led by Andreessen Horowitz, with additional investment from Two Small Fish. The funding will help Viggle AI scale its operations, accelerate product development, and expand its team. The company’s proprietary JST-1 technology enables realistic character movements through simple text-to-video or image-to-video prompts, capturing the attention of animators and content creators worldwide. Viggle AI aims to revolutionize the animation industry by making high-quality, AI-generated animations accessible to both professionals and hobbyists.

• Major Funding Secured: Viggle AI raised $19 million in Series A funding, led by Andreessen Horowitz, to scale its AI-driven animation platform.
• Innovative Technology: The company’s JST-1 technology allows users to create lifelike animations with simple prompts, positioning Viggle AI as a leader in AI-powered content creation.
• Growing Community and Influence: Viggle AI has attracted a vibrant community of over four million users on Discord, with its tools being widely adopted by both professional animators and casual content creators.

Source: Financial Post

OpenAI Supports AI Content Labeling Bill in California

OpenAI is backing California's AB 3211, a bill that mandates tech companies to label AI-generated content to prevent the spread of misinformation, particularly in political contexts. This move is in contrast to the company's opposition to another AI-related bill, SB 1047, which requires safety testing for AI models. AB 3211 has gained traction, passing the state Assembly and advancing through the Senate. With many elections worldwide this year, transparency in AI-generated content is crucial to avoid confusion and misinformation, a concern highlighted by OpenAI as it supports this legislation.

• OpenAI Supports AI Content Labeling: OpenAI backs California’s AB 3211, a bill that requires AI-generated content to be clearly labeled, particularly to prevent misinformation in elections.
• Contrast with Other AI Legislation: While supporting AB 3211, OpenAI opposes SB 1047, another California bill focused on mandatory safety testing for AI models.
• Legislative Progress: AB 3211 has successfully passed the state Assembly and Senate appropriations committee and is set for a full Senate vote before potentially being signed by Governor Gavin Newsom.

Source: Yahoo Finance

Nvidia-Backed SMC Reduces AI Data Center Energy by 50%

Sustainable Metal Cloud (SMC), a data center company specializing in energy-efficient AI solutions, is gaining attention for its innovative HyperCubes, which use Nvidia processors submerged in a synthetic oil for cooling. This immersion cooling technology reduces energy consumption by up to 50% compared to traditional air cooling, offering a cheaper and more efficient alternative. As AI demands increase, SMC is expanding its sustainable data center solutions to new markets like Thailand and India. Backed by major partners like Nvidia and Deloitte, SMC is leading the charge toward greener, more efficient data centers.

• Innovative Cooling Technology: SMC's HyperCubes utilize Nvidia processors submerged in synthetic oil, reducing energy consumption by up to 50% compared to traditional air cooling.
• Expansion and Partnerships: SMC is expanding into new markets and has secured partnerships with Nvidia and Deloitte, positioning itself as a leader in sustainable AI data centers.
• Sustainable Data Centers: With growing AI demands, SMC’s energy-efficient solutions are gaining traction, supported by significant funding and interest from major enterprises and governments.

Source: CNBC

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.

A Black Friday Reflection: The Art of Want and Apple's Marketing Mastery

A Hungry Apple

Today, there’s probably one thought on people’s minds: will I get the best bargain ever? Yes, it’s Black Friday, and many have a shopping list ready to scoop up on those deals. As we scan those websites to see what’s on sale, it is an excellent time to reflect on how the Master of Marketing gets into our minds and makes us buy. Who would that be? It is Apple, of course.

Earlier this year, we looked at the chasm between the company's ESG aspirations and the resource-intensive nature of its operations. Today, we explore Apple’s uncanny ability to cultivate an obsessively loyal following, some of which deify the company.

Deify? Yes, deify.   According to a BBC documentary:

“The neuroscientists ran a magnetic resonance imaging (MRI) test on an Apple fanatic and discovered that images of the technology company's gadgets lit up the same parts of the brain as images of a deity do for religious people, the report says.”

The documentary also explained that a gadget from a competitor did not elicit the same brain activity.

Psychological Obsolescence: Will You Buy the Best iPhone Ever?

When examining the amount of money Apple spends advertising its iPhone, the figure falls within the $1 billion to $2 billion range. For the 2022 fiscal year, the figure is buried in the $25 billion categorized as "Selling, General, and Administration" expenses. [1] We can’t be sure as to how much Apple spends, as the Company inexplicably stopped publishing this figure in their financials back in 2016. [2] For 2015, the total advertising expenditure came in at $1.8 billion. [3] Assuming that advertising spending is proportional to revenue generated by their different product lines, we can estimate that Apple spends approximately $1.2 billion on advertising the iPhone.

However, focusing solely on the numbers would not do justice to Apple's advertising expertise. Annually, Apple fans must face the fear of missing out. Year after year, Apple enthusiasts are enticed onto a never-ending treadmill of upgrades, each promising the 'best iPhone ever.' Here, we can see the Siren calls in succession: [4]

"Today, Apple is going to REINVENT the phone"

 (Original iPhone, 2007)

"It's REALLY, REALLY GREAT and it feels even BETTER IN YOUR HAND if you can believe it"

 (iPhone 3G, 2008)

"This is the MOST POWERFUL, FASTEST iPhone we've ever made"

 (iPhone 3GS, 2009)

"One of the MOST BEAUTIFUL things we've ever made"

 (iPhone 4, 2010)

"Has an INCREDIBLE STAINLESS STEEL BAND around it making it the THINNEST SMARTPHONE"

 (iPhone 4S, 2011)

"It is an ABSOLUTE JEWEL; it is the MOST BEAUTIFUL product we have ever made, BAR NONE"

 (iPhone 5, 2012)

"The MOST BEAUTIFUL phone ever made"

 (iPhone 5S, 2013)

"They are WITHOUT A DOUBT the BEST IPHONES we've ever done"

 (iPhone 6, 2014)

"MOST ADVANCED SMARTPHONES"

 (iPhone 6S, 2015)

"It's the BEST IPHONE that we have ever created"

 (iPhone 7, 2016)

"MOST POWERFUL and SMARTEST CHIP ever"

 (iPhone 8, 2017)

"It is the BIGGEST LEAP FORWARD since the original iPhone. This REALLY IS THE FUTURE"

 (iPhone X, 2017)

"MOST ADVANCED iPhone we've ever created"

 (iPhone XS, 2018)

"Most ADVANCED IPHONE that we have ever built"

 (iPhone 11, 2019)

"In iPhone 12 Pro Max, we've been able to create our BEST CAMERA EVER."[5]

 (iPhone 12, 2020)

"And we're NOT DONE YET... Let's take a look at our MOST PRO IPHONE EVER"[6]

 (iPhone 13, 2021)

“iPhone 14 Pro and iPhone 14 Pro Max: the BEST IPHONES we've EVER CREATED”[7] 

(iPhone 14, 2022)

Apple is not the first to use this strategy. Employing this approach of psychological obsolescence goes back to the 1920s as one of the strategies to deal with the spectre of overproduction. Silver manufacturers, for example, used advertising campaigns to "shame the prospect into buying the latest model of a venerably old product." They targeted newlyweds who valued heirloom silverware, making them feel outdated and encouraging them to purchase newer models by ridiculing the past from which their old sets originated. Similarly, Elgin's wristwatch advertisements sought to make owners of older models self-conscious, nudging them to upgrade. Both campaigns harnessed the power of social shame to drive new purchases, tackling the business dilemma of durable products that don't require frequent replacement. [8]

 General Motors was another company that embraced the concept of psychological obsolescence in the 1920s. Executives who transitioned from DuPont to General Motors imported marketing strategies directly from the nascent fashion industry. They introduced the concept of styling in their 1923 Chevrolet models, realizing that consumers were willing to upgrade for aesthetic appeal rather than just technological advancements. [9] Harley Earl, a GM executive, summed it up by stating that hastening obsolescence was the company's "big job." He highlighted that the average car ownership span had dropped from five years in 1934 to just two years by 1955, to reduce it to one year for a "perfect score." [10]

 

Apple’s Secret Sauce: Secrecy & Scarcity

The key to making the Apple iPhone launch events successful in extracting the maximum fear of missing out is secrecy. Apple's ability to rapidly assemble new devices gives it an operational edge, allowing it to match production to consumer demand closely. This quick turnaround minimizes excess inventory and creates a sense of scarcity, further fueling consumer anticipation. Critically, the swifter a device moves through the production process, the fewer the chances for information leaks, reinforcing the shroud of secrecy that is absolutely vital for building unparalleled hype and FOMO around each new iPhone release. [11]  

 Steve Jobs was the one who pioneered the idea of using secrecy as a critical marketing strategy for the launch of the inaugural iPhone.The iPhone began as a secret project code-named “Purple”. In the “Purple Dorm,” management had posted the sign “Fight Club” to remind people about the movie's first rule, “that they do not talk about Fight Club.” It's a bit of an irony that a film denouncing materialism was used to usher in an age of unprecedented consumerism. When working with suppliers, Apple would give “false schematics” to give the false impression they were working on the iPod. Also, employees would pretend to be representing “other companies when meeting with vendors to avoid starting rumors.” [12]

The secrecy created a strenuous work environment. Employees found it divisive and an obstacle to collaboration. For example, the User Interface (UI) was kept so secret that it made it difficult for employees to finish their work. Tony Fadell, the “father of the iPod”[13], showed exasperation when discussing the intensely political environment he had to operate in. He was the only hardware team member who could see the UI. He notes that “it was [so] super-secretive…[that you] … had to ask permission for everything, and it really built a huge rift between the two teams.” Andy Grignon, a senior engineer at Apple, described lunch as a “Mexican standoff” requiring code names. He described the environment as “passive aggressive.” [14]

 So why did Jobs want all this secrecy? One ex-Apple executive suggested “that keeping the first iPhone secret “was worth hundreds of millions of dollars.” The secrecy simultaneously generates free press coverage and instigates that desire in the masses. [15]

A closely related element to secrecy is the artificial scarcity that Apple creates around its iPhones. According to a paper entitled “It's a secret: Marketing value and the denial of availability,” Apple purposefully “keeps supplies immediately post-launch artificially low.” [16] Such a strategy is focused on provoking FOMO within us.   

What about Planned Obsolescence?

While Apple's mastery of psychological obsolescence is second to none, the company has also faced scrutiny for planned obsolescence. This controversial practice has led to legal challenges and public outcry. In 2005, Apple settled out of court over customer complaints “alleging that the iPod did not have the battery life Apple represented...and that the battery’s capacity to hold a charge diminished substantially over time".[17] The article also noted that customers “who bought a first or second-generation iPod who experienced a battery failure within two years of purchase,” which of course would force them to buy a new one. [18]  

The issue also surfaced in 2018, when Apple confirmed that it purposefully slowed down its older model. As noted in the Guardian: “The feature was recently highlighted by users on Reddit, who noticed that their processors were running slowly in iPhones with older batteries, but that when they replaced the batteries the speed of the phone returned to normal…Analysis of data by benchmarking firm Primate Labs collected from thousands of iPhones appeared to confirm the theory, showing multiple performance peaks for phones of different ages, slowing down from their maximum speed.”[19]

Consumerism or Technology: What Matters More?

Apple’s products are often first to mind when thinking about modernity. The iPhone, specifically, is seen as a fruition of sci-fi-inspired gadgets like Star Trek’s Tricorder. Stepping back, however, we see that science and technology are not the prime movers of success regarding Apple. Its ability to tell a better story and convince people to buy its products has distinguished the company. This reveals that success is not raw science or technology. Instead, it’s about the art and science of persuasion. In this ESG-conscious era, understanding the drivers of our consumer decisions is critical to mitigating the environmental and social fallout of rampant consumerism. This reflection is essential in steering us towards a more sustainable future.

 1] https://www.sec.gov/ix?doc=/Archives/edgar/data/320193/000032019322000108/aapl-20220924.htm  

[2] https://www.businessinsider.com/apple-stopped-disclosing-ad-spend-2016-11  

[3] https://www.sec.gov/Archives/edgar/data/320193/000119312515356351/d17062d10k.htm   

[4] Taken from CNET’s compilation for iPhone events from 2007 till 2019; https://www.youtube.com/watch?v=5WcjWxW2W2Y  

[5] https://www.youtube.com/watch?v=KR0g-1hnQPA

[6] Taken from the 2021 Apple Event; https://www.youtube.com/watch?v=EvGOlAkLSLw 

[7] https://www.youtube.com/watch?v=ux6zXguiqxM

[8] Giles Slade. Made to Break: Technology and Obsolescence in America (Kindle Locations 498-504). Harvard University Press, 2006. Kindle Edtion..

[9] Giles Slade. Made to Break: Technology and Obsolescence in America (Kindle Locations 42-48). Harvard University Press, 2006. Kindle Edtion..

[10] Giles Slade. Made to Break: Technology and Obsolescence in America (Kindle Locations 419-421). Harvard University Press, 2006. Kindle Edtion.

[11] Merchant, Brian. The One Device (pp. 284-285). Little, Brown and Company, 2017. Kindle Edition.

[12] Merchant, Brian. The One Device: The Secret History of the iPhone (p. 349). Little, Brown and Company. Kindle Edition.”

[13] https://appleinsider.com/articles/17/05/11/ipod-father-tony-fadell-speaks-at-computer-history-museums-iphone-360

[14] Merchant, Brian. The One Device (pp. 350-351). Little, Brown and Company, 2017. Kindle Edition.

[15] Merchant, Brian. The One Device (pp. 300-301). Little, Brown and Company, 2017. Kindle Edition.

[16] Merchant, Brian. The One Device (pp. 300-301). Little, Brown and Company, 2017. Kindle Edition.

[17] https://www.macworld.com/article/1045105/ipodsuit.html  

[18] https://www.macworld.com/article/1045105/ipodsuit.html  

[19] https://www.theguardian.com/technology/2017/dec/21/apple-admits-slowing-older-iphones-because-of-flagging-batteries 

 

Five Top Tech Takeaways: Writer's Get Concessions on AI, FTX's Auditor Sued by the SEC, Windows 11 goes AI, and Dalhousie's Battery Discovery

The Pen Is Mightier than the Robot

The Pen is Mightier Than the Robot? Writers Draw the Line with AI

Hollywood writers, after one of the longest labor strikes in history, have secured a significant victory over the implementation of artificial intelligence (AI) in the film and television industry. The Writers Guild of America (WGA) managed to strike a deal with the Alliance of Motion Picture and Television Producers, establishing strict guidelines on how AI can be used in the industry. The contract doesn't ban AI but imposes limitations to ensure that the technology remains under the control of the workers and doesn’t replace them.

The deal prohibits studios from using AI to write or edit scripts and from treating AI-generated content as "source material" that could be assigned to screenwriters for adaptation at lower fees and lesser credit. The contract allows AI to be used as a tool but ensures it doesn’t undermine writers' roles or reduce their wages. It maintains that AI is complementary to humans and should be under the control of the writers, not the studios. If writers adapt output from AI models, it will still be considered an original screenplay. Studios are also required to disclose any use of AI in providing material to the writers. While writers can choose to use AI as a research tool, they cannot be forced to use it. (Source: Guardian)

FTX Auditor Under Fire: SEC Sues Prager Metis for Independence Violations

The U.S. Securities and Exchange Commission (SEC) has initiated a lawsuit against accounting firm Prager Metis for purported violations pertaining to auditor independence, citing the incorporation of indemnification provisions in engagement letters during December 2017 to October 2020. Prager Metis is contending the allegations, asserting that the contested provisions never influenced the quality of their audits nor were enforced. The firm was associated as an auditor for the FTX Group; however, the SEC clarifies that the accusations are not related to any FTX matters. The SEC aims to secure an injunction and penalties against Prager Metis, with the investigation currently in progress. (Source: Reuters)

Blockchain Meets AI-enabled Entertainment: A New Era of Content Creation with Story Protocol

Story Protocol, developed by entrepreneur Seung Yoon Lee, is a groundbreaking blockchain-based platform aspiring to reconfigure the $2.3 trillion entertainment and media industry. The integration of artificial intelligence in content creation acts as a catalyst for this initiative, allowing exponential growth in fan-generated content and posing challenges to traditional copyright frameworks, thereby making a system like Story Protocol essential. The platform allows creators to manage, collaborate, and set terms of licensing and remuneration through Ethereum-based smart contracts, optimizing interactions and transactions between creators and fans, and enabling fans to influence and monetize their contributions. With substantial backing, including a $54 million investment led by Andreessen Horowitz, Story Protocol heralds a shift in intellectual property management and content production in an era dominated by AI innovations and fan-driven content. (Source: Forbes)

A Leap in Battery Efficiency: Dalhousie University's Tape Discovery.

Researchers at Dalhousie University have discovered a new way to extend the battery life of most laptops and cellphones by identifying a power-drainage flaw. The standard lithium-ion batteries use polyethylene terephthalate (PET) tape to hold its components together, which can dissolve due to a chemical reaction in the battery, causing charge depletion without sending out an electrical current—a phenomenon called self-discharge. The researchers have found that replacing PET tape with chemically stable polypropylene (PP) tape can decrease self-discharge by up to 70% and increase battery life by up to 10%. Polypropylene tape, having stronger chemical bonds, is more stable and costs about the same as PET tape, offering a simple and cost-effective solution for manufacturers. (Source: CBC)

Windows 11 Update: Microsoft Goes Big on AI
Microsoft’s latest update to Windows 11 brings a suite of AI-powered enhancements and features aimed at creating a more intuitive and versatile user experience. Here's a condensed overview:

• Windows Copilot: Acts as an AI-powered digital assistant, integrating many parts of Windows, controlling settings, launching apps, and answering queries.
• AI-Enhanced Paint: Equipped with Photoshop-like features, it supports transparency, layers, and an AI image generator called “Paint Cocreator,” which creates images based on text prompts and selected styles.
• Upgraded Snipping Tool: AI allows for text extraction and redaction from images and sharing in other apps, with automatic redaction for sensitive information.
• AI-Powered Photos App: Offers a background blur option that auto-identifies the background, enabling customization of blur intensity and areas to be blurred.
• Improved Windows Backup App: Facilitates seamless migration to new devices by backing up existing settings to the cloud
• Windows 365 Integration: Incorporates Windows 365 Cloud PCs, enabling direct boot and switch between local desktop and Cloud PC within Windows 11.
• Dev Home for Developers: Offers an efficient setup for Windows dev machines, utilizing Windows Package Manager to install necessary tools and apps and configuring coding environments in the cloud.

These features are rolling out progressively, with availability to all users anticipated in the coming months, and further advancements are expected in the Windows 11 2023 update. (Source: TheVerge)

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: Apple's Carbon Neutrality Questioned, Fairphone 5 Launches, Binance US's CEO Leaves and a Privacy Nightmare on Wheels

E-Waste: A Smoldering Problem (Pic Link) (Article Link)

"Carbon Neutral" Apple Watch: What Does It Really Mean?

Apple's recent launch of its "carbon neutral" 9th-generation Apple Watch has stirred both interest and skepticism in the tech community. While Apple has certainly made strides in cleaning up its supply chain and investing in renewable energy, experts like climate scientist David Ho question whether any product can genuinely be carbon neutral. The phrase "carbon neutral" is seen by some as misleading when companies use carbon credits to offset their emissions, a practice that has drawn scrutiny from regulators. Apple's "carbon neutral" watch relies heavily on these credits, which are tied to nature-based offset projects that are themselves subject to criticism. As noted in the article:

"Part of the problem is the slipperiness of attempting to tie a carbon credit—an abstract financial instrument—to any particular product in Apple’s armada of product offerings or the wider global economy. The Watch doesn’t have any role in creating those credits. They’re only brought together by an accountant’s sleight of hand."

The company's ambitious goal to have its entire product lineup carbon neutral by 2030 might sound good on paper, but given the complexity of global supply chains and the limitations of current carbon offset systems, it raises the question: how 'neutral' can a consumer product really be? (Source: Wired)

iPhone 15 Launch: Analyzing Apple’s Eco-Friendly Claims Amid New Product Launches

In case you missed it, we examined Apple's annual iPhone launch last week. Amid the spectacle of technology and innovation, Apple's environmental initiatives were in the spotlight. The tech giant unveiled four new iPhone models and two Apple Watches, all with improved features and performance. At the same time, Apple made significant claims about their Environmental, Social, and Governance (ESG) efforts, such as a 95% reduction in transportation emissions and a carbon-neutral Series 9 Apple Watch—a claim that has been questioned, as noted in a previous Wired article. Check out our post where we assess Apple's eco-claims in the context of their past green initiatives. (Source: UWCISA)

Fairphone 5: A More Sustainable and Repairable Smartphone?

The Fairphone 5, released by Dutch smartphone company Fairphone, aims to be a game-changer in the smartphone industry by offering up to 10 years of software support, a first in the industry. It also has built-in eco-sustainability, unlike the competition. The previous model, the Fairphone 4, got an industry-leading iFixit Score of 10 out 10 for its repairability. Designed with longevity, repairability, and eco-human-friendly-sourcing in mind, the phone retails at £619 (€699). It features a 6.46-inch QHD+ OLED screen, a Qualcomm QCM6490 processor, and an array of recycled and sustainable materials. While it may not lead in performance, it offers other unique benefits such as a removable battery, a five-year warranty, and modular spare parts for easy repairs. Fairphone is setting new standards for manufacturing and tech waste reduction, although compromises include a less impressive camera and mid-range performance. (Source: The Guardian, Fairphone)

Driving into the Privacy Abyss: The Dark Side of Modern Cars

Modern cars are becoming more like computers on wheels, boasting advanced tech features that unfortunately come with a price—your privacy. An exhaustive research study into 25 car brands revealed that every brand collects more personal data than necessary, and 84% admit to sharing or selling your data to third parties. Only two brands, available only in Europe, give drivers the right to have their personal data deleted. Surprisingly, car manufacturers perform worse in terms of security and privacy practices compared to other tech products like dating apps or mental health apps. The study also exposes how these companies manipulate "consent," forcing drivers and even passengers to give away their privacy. Given that every brand reviewed was flagged for privacy issues, the situation paints a grim picture for consumer choice and control over personal data. (Source: Mozilla)

Turmoil in Crypto Continues: Binance.US CEO's Departure and the SEC Crackdown

Brian Shroder, CEO of Binance's U.S. arm, has stepped down and will be temporarily succeeded by the firm's Chief Legal Officer, Norman Reed. Amid regulatory scrutiny, the company is also reducing its workforce by approximately one-third. This move follows allegations from the SEC that Binance.US has been operating an illegal trading platform. These organizational changes are part of a larger trend affecting the crypto industry, as U.S. regulatory bodies ramp up enforcement measures. (Source: WSJ)

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.

From iPhone Chargers to Carbon Footprints: Apple's ESG Messaging Unpacked

Apple & ESG: Dreams versus Reality

Yesterday, Apple had its annual iPhone launch event, announcing its latest gadgets for sale. The company unveiled four new iPhone models: iPhone 15, iPhone 15 Plus, iPhone 15 Pro, and iPhone 15 Pro Max. These models feature Super Retina XDR displays and are powered by the A16 Bionic chip. Consumers can also buy these items in 5 different colours. The camera system in these phones has received updates, now including 48-megapixel resolution, an auto portrait mode, and 4K recording capabilities. Additional features like voice isolation, roadside assistance, and an emergency SOS were also introduced.

In the wearables category, Apple launched two new Apple Watches: the Series 9 and the Ultra 2. The Series 9 features a new S9 chip, claimed to be 60% faster than its predecessor. This watch introduces a double-tap control feature and has the ability to locate your iPhone. The Ultra 2 model offers a modular, ultra-customizable watch face and specialized power zones for exercise data collection. It also boasts the capability to log water dives. For more, see here, here, here, and here.

Apple's ESG Messaging Unpacked: Have We Been Here Before?

In addition to product announcements, Apple provided updates on its environmental initiatives.

Material Sourcing: Apple reported its plans to eliminate all plastic from its packaging by the end of the next fiscal year. It also claims to use 100% recycled aluminum in its MacBooks, Apple TVs, and Apple Watches. Leather is being phased out in iPhone cases.

Energy Usage: The company asserts that all Apple operational facilities, including offices, retail stores, and data centers, run on 100% clean electricity. They also claimed that over 300 suppliers have committed to using renewable energy.

Transportation: Apple disclosed a shift in its logistics strategy, prioritizing ocean shipping over air transport, allegedly resulting in a 95% reduction in transportation emissions.

Global Environmental Projects: Apple has invested in environmental initiatives such as forestation in Paraguay and Brazil, mangrove restoration in Colombia, and grassland conservation in Kenya.

Water Usage: A reduction of 63 billion gallons in water consumption was reported.

Long-Term Objectives: Apple aims for net-zero climate impact by 2030. They claimed that the Series 9 Apple Watch was carbon-neutral product.

Apple: Are They Really Green This Time?

Looking at these claims, it's important to consider Apple’s past track record when it comes to raising the green flag.  In 2020, Apple released the iPhone 12. However, they no longer included a charger, justifying this as an eco-friendly decision:

 “Apple is also removing the power adapter and EarPods from iPhone packaging, further reducing carbon emissions and avoiding the mining and use of precious materials, which enables smaller and lighter packaging, and allows for 70 percent more boxes to be shipped on a pallet. Taken altogether, these changes will cut over 2 million metric tons of carbon emissions annually, equivalent to removing nearly 450,000 cars from the road per year.”

One of the features of the iPhone 12 was fast charging. However, this capability would not work on old iPhone chargers. Instead, consumers needed to buy the new 20W charger – sold separately. Enticing people to buy an extra charger, predictably, would be a net boom for investors. Analysts from Deutsche Bank, cited by CNBC, observed that while "Apple claims that they are not shipping earphones and a charging cube with the iPhone to save the environment (they are including a charging cord), the reality is that such a decision could drive a financial benefit for the company as well."

 The same article was a bit skeptical of how truly environmental this initiative really was. They also saw dollar signs with the move, stating, “Despite Apple’s claim that the absence of the plug was a pro-environment move, it’s on track to see an uptick in its hardware accessories and wearables category thanks to the sale of the plugs and the new ecosystem it’s building around the iPhone 12′s MagSafe charging system. That category, which includes products such as the Apple Watch, AirPods, chargers and other accessories, has already shown promising growth. Sales jumped nearly 17% to $6.45 billion in Apple’s fiscal third quarter.”

For sales to jump in this category by the billions means more of the earth will need to be mined and fashioned into Apple products. That means Apple’s environmental footprint will increase, not decrease.

The bigger question, however, is why do we need these new iPhones in the first place? 

We’ll explore this question in future posts, exploring the right-to-repair, planned obsolescence, and modular phones.

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