Five Top Tech Takeaways: Claude3 is Live in Canada, Elon Sues OpenAI, OpenAI Responds, NVIDIA hits $2 Trillion & IEEE on Prompt Engineering

The End of Prompt Engineering? How AI Is Outsmarting Humans in Optimization

A Self-Prompting Robot

Prompt engineering, once a burgeoning field following ChatGPT's launch, is undergoing a transformative shift. New research suggests the task of optimizing prompts for large language models (LLMs) and AI art or video generators might be better performed by the models themselves, rather than human engineers. This development is spurred by findings from Rick Battle and Teja Gollapudi at VMware, who, after testing various prompt engineering strategies, concluded that there's a notable inconsistency in their effectiveness across different models and datasets. Instead, autotuning prompts using the model to generate optimal prompts based on specified success metrics has shown to significantly outperform manual optimization efforts, often generating surprisingly effective yet unconventional prompts. Similar advancements are seen in image generation, where Intel Labs' Vasudev Lal's team developed NeuroPrompts, automating the enhancement of prompts for image models to produce more aesthetically pleasing outputs. Despite these technological advancements suggesting a diminished role for human-led prompt engineering, the need for human oversight in deploying AI in industry contexts—emphasized by emerging roles such as Large Language Model Operations (LLMOps)—remains crucial. This signifies not the end, but the evolution of prompt engineering, with its practices likely integrating into broader AI model management and deployment roles.

Key Takeaways:

• Research indicates that the practice of manually optimizing prompts for LLMs may be obsolete, with models capable of generating more effective prompts autonomously.
• Innovations like autotuned prompts and NeuroPrompts demonstrate that AI can surpass human capabilities in optimizing inputs for both language and image generation tasks.
• Despite the potential decline of traditional prompt engineering, the demand for human expertise in integrating and managing AI technologies in commercial applications continues, likely evolving into roles like LLMOps.

(Source: IEEE Spectrum)

Elon Musk Sues OpenAI: Alleges Company Abandoned its Mission

Elon Musk has filed a lawsuit against OpenAI and its CEO, Sam Altman, in California Superior Court, alleging they diverged from the organization's original non-profit, open-source mission to develop artificial intelligence for humanity's benefit, not for profit. Musk, a co-founder of OpenAI, accuses the company of breaching their founding agreement by prioritizing financial gains, particularly through its partnership with Microsoft and the release of GPT-4. He seeks a court ruling to make OpenAI's research public and restrict its use for Microsoft or individual profit, particularly concerning technologies GPT-4 and the newly mentioned Q*. OpenAI executives have dismissed Musk's claims, emphasizing resilience against such attacks. This legal action underscores Musk's ongoing concerns with AI development's direction and OpenAI's partnership dynamics, especially as he ventures into AI with his startup, xAI, aiming to create a "maximum truth-seeking AI". 

Key Takeaways:

• Elon Musk sues OpenAI for deviating from its foundational mission, emphasizing the conflict over the commercialization of AI technologies.
• Musk demands OpenAI's AI advancements, including GPT-4 and Q*, be made publicly accessible and not used for Microsoft's or anyone's financial benefit.
• The lawsuit highlights Musk's broader AI concerns and efforts to influence the field through his own AI startup, xAI, amidst regulatory scrutiny of OpenAI's actions.

(Source: Reuters)

OpenAI Responds to Elon's Lawsuit: 'Here's Our Side of the Story'

Key Quote: "We're sad that it's come to this with someone whom we’ve deeply admired—someone who inspired us to aim higher, then told us we would fail, started a competitor, and then sued us when we started making meaningful progress towards OpenAI’s mission without him."

OpenAI discusses its mission to ensure that artificial general intelligence (AGI) benefits all of humanity, addressing its funding journey, relationship with Elon Musk, and its commitment to creating beneficial AGI. Initially envisioning a substantial need for resources, OpenAI faced challenges in securing enough funding, leading to considerations of a for-profit structure. Elon Musk, an early supporter and potential major donor, proposed different pathways for OpenAI, ultimately leaving to pursue his own AGI project. Despite these challenges, OpenAI emphasizes its progress in making AI technology broadly available and beneficial, from improving agricultural practices in Kenya and India to preserving the Icelandic language with GPT-4. The organization underscores its dedication to advancing its mission without compromising its ethos of broad benefit, even as it navigates complex relationships and the immense resource requirements of AGI development. 

Key Takeaways:

• OpenAI acknowledges the immense resources needed for AGI development, leading to explorations of a for-profit model to support its mission.
• Elon Musk's departure from OpenAI highlighted differing visions for the organization's structure and approach to AGI, with Musk pursuing a separate AGI project within Tesla.
• Despite funding and structural challenges, OpenAI remains committed to creating AI tools that benefit humanity broadly, showcasing impactful applications worldwide.

(Source: OpenAI)

Meet Claude 3: Anthropic's Latest Leap in Generative AI Technology

Anthropic introduces the Claude 3 model family, comprising three advanced models: Claude 3 Haiku, Claude 3 Sonnet, and Claude 3 Opus, each offering escalating levels of intelligence, speed, and cost-efficiency tailored to diverse applications. The models, which are now accessible via claude.ai and the Claude API in 159 countries, mark significant advancements in AI capabilities, including enhanced analysis, forecasting, content creation, and multilingual conversation abilities. Claude 3 Opus, the most sophisticated of the trio, excels in complex cognitive tasks, showcasing near-human comprehension and fluency. The Claude 3 series also features rapid response times, superior vision capabilities, reduced refusal rates, increased accuracy, extended context understanding, and near-perfect recall abilities. Furthermore, Anthropic emphasizes the responsible design of these models, focusing on safety, bias mitigation, and transparency. The introduction of the Claude 3 family signifies a substantial leap in generative AI technology, promising to redefine industry standards for intelligence, application flexibility, and user trust.

Key Takeaways:

• Anthropic unveils the Claude 3 model family, enhancing the AI landscape with Claude 3 Haiku, Sonnet, and Opus, each designed for specific performance and cost requirements.
• The models demonstrate unprecedented capabilities in analysis, content creation, multilingual communication, and possess advanced vision and recall functionalities.
• Anthropic prioritizes responsible AI development, emphasizing safety, bias reduction, and transparency across the Claude 3 series, maintaining a commitment to societal benefits.

Author's note: Claude is now available in Canada! 

(Source: Anthropic).

Nvidia at $2 Trillion: Leading the Charge in the AI Chip Race

Nvidia has reached a monumental $2 trillion valuation, showcasing its pivotal role in the artificial intelligence (AI) revolution, driven by an insatiable demand for its graphics processing units (GPUs). This surge in valuation makes Nvidia one of the most valuable U.S. companies, only trailing behind tech giants Microsoft and Apple. Nvidia's dominance in the GPU market, with over 80% market share, has made its chips a critical asset for developing new AI systems, highlighting the chips' importance in accelerating AI advancements. Despite facing production constraints, Nvidia continues to report impressive sales figures, with its quarterly sales hitting $22.1 billion and forecasting $24 billion for the upcoming quarter. The company's strategic pivot to AI early on has fueled its rapid growth, with its GPUs becoming essential for training large language models like OpenAI's ChatGPT. Nvidia's journey from a focus on PC gaming graphics to leading the AI chip market underlines the transformative power of AI technology and Nvidia's central role in this evolution.

Key Takeaways:

• Nvidia's valuation has soared to $2 trillion, emphasizing its critical role in the AI industry and making it one of America's most valuable companies.
• The company's GPUs, essential for AI development, are in high demand, with Nvidia holding over 80% of the market share.
• Despite production challenges, Nvidia's sales and forecasts significantly exceed expectations, driven by its strategic focus on AI technologies.

(Source: The Wall Street Journal)

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: Gemini Lands in Canada, Waymo Set on Fire, Slack integrates AI, and ChatGPT intros Memory and OpenAI Wants in on Search

Robot Taxi Driver: What did I do?

Gemini has Landed: Canadians Finally Get to Access Google’s Generative AI

Google has officially launched Gemini (formerly Bard) in Canada, making it accessible in English, French, and 40 other languages. Gemini offers innovative AI collaboration tools, including features for job interview preparation, code debugging, and business idea brainstorming. Additionally, Gemini Advanced introduces the Ultra 1.0 AI model for complex tasks, available through the Google One AI Premium Plan. An Economic Impact Report highlights the potential $210 billion boost to Canada's economy from generative AI, emphasizing Google's commitment to responsible AI development and its potential to address societal challenges.

Key takeaways:

• Gemini is now available in Canada, supporting English, French, and 40 other languages for diverse AI collaboration.
• The introduction of Gemini Advanced with Ultra 1.0 AI model offers advanced capabilities for complex tasks through a premium subscription.
• Generative AI is poised to significantly impact Canada's economy, with a focus on responsible development and addressing societal challenges.

(Source: Google Blog)

Autonomous Waymo Vehicle Torched by Mob in San Francisco

During the Chinese New Year celebrations in San Francisco's Chinatown, a Waymo autonomous vehicle was destroyed by vandals. Amidst the festivities, which typically include fireworks, an unruly mob targeted the Waymo car. The vehicle, attempting to navigate a busy street, was stopped by a crowd, vandalized with graffiti, and had its windows smashed. The situation escalated when a lit firework was thrown into the car, causing it to catch fire and burn down completely, despite the car's attempts to signal distress through its hazard lights. The fire department managed to extinguish the blaze without it spreading further. Waymo confirmed that no passengers were in the car at the time and there were no injuries. The incident, captured extensively on social media and likely by the car's own cameras, is under investigation by the San Francisco Police Department. Waymo has not yet indicated whether it will press charges.

Key takeaways:

• A Waymo autonomous car was vandalized and set ablaze by a mob during Chinese New Year celebrations in San Francisco.
• The incident caused significant damage to the vehicle but did not result in any injuries, as the car was not carrying passengers.
• The attack is under investigation, with potential evidence from social media and the vehicle's cameras possibly aiding in identifying the perpetrators.

OpenAI Sets Sights on Google Search's Dominance

OpenAI is reportedly working on a search app that could directly challenge Google Search, potentially integrating with ChatGPT or launching as a separate application. This move is seen as a significant threat to Google, leveraging Microsoft Bing's infrastructure. The AI search engine aims to deliver fast, concise summaries with powerful capabilities, posing a challenge to Google's two-decade dominance in internet search. The initiative reflects a broader shift towards AI-driven search solutions, with OpenAI's user base and Microsoft's technology posing a formidable challenge to Google's market position. This development is part of the ongoing evolution in how information is retrieved online, highlighting the competitive dynamics between leading tech companies and the transformative potential of AI in search technologies 

Key takeaways:

• OpenAI is developing an AI search engine that could compete with Google Search, possibly incorporating or operating alongside ChatGPT.
• This initiative, supported by Microsoft Bing, represents a significant threat to Google's longstanding dominance in internet search.
• The move underscores a shift towards AI in search, challenging traditional search engines with faster, AI-powered information retrieval.

(Source: Gizmodo)

A Closer Look at ChatGPT's Memory: Control, Privacy, and Benefits

OpenAI has introduced a memory feature for ChatGPT, enabling it to recall details from past conversations, thus enhancing user experience by eliminating the need to repeat information. This feature is under testing with a limited number of ChatGPT free and Plus users, with plans for a broader rollout announced soon. Users have complete control over this memory function, including the ability to turn it off, manage what ChatGPT remembers, and delete memories. Additionally, OpenAI has introduced temporary chats for conversations users prefer not to be remembered and continues to prioritize privacy and safety standards. This update also benefits Enterprise and Team users by allowing ChatGPT to remember user preferences and styles for more efficient and relevant interactions. Furthermore, GPTs will have their distinct memory capabilities, promising a more personalized interaction across various applications.

Key Takeaways:

• ChatGPT now features a memory capability, improving conversations by recalling user-shared information.
• Users maintain full control over ChatGPT's memory, with options to manage, delete, or disable it entirely.
• The update benefits Enterprise and Team users by tailoring interactions based on remembered preferences, and GPTs will also have distinct memory functionalities for enhanced personalization.

How Slack AI Keeps You Informed: Summaries, Recaps, and Q&As

Slack is enhancing its platform with AI-driven features to streamline workplace communication for Enterprise users. The new suite includes summarizing threads, providing channel recaps, and answering questions based on workplace conversations. Slack AI, now a paid add-on, aims to keep users informed and updated by summarizing unread messages or those within a specific timeframe, interpreting workplace policies, and integrating with other apps like Notion and Box for content summaries. Additionally, Slack is developing more tools for information summarization and prioritization, including a digest feature for channel highlights, and emphasizes privacy with hosted LLMs ensuring customer data remains isolated. 

Note: This feature is only available in the US and UK, not Canada.

Key Takeaways:

• Slack AI introduces a suite of features for summarizing conversations, recapping channels, and answering work-related questions, enhancing workplace efficiency.
• The AI tool integrates with external apps for content summaries and is part of Slack's broader effort to prioritize and summarize information, including an upcoming digest feature.
• Slack emphasizes customer data privacy, with LLMs hosted within the platform, ensuring data isolation and no use in training LLMs for other clients.

(Source: The Verge)

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.

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.

China’s Bitcoin Ban: A boon for Canada or are we waiting for the bubble to burst?

China’s continued clampdown on bitcoin has provided an impetus for miners to relocate to USA and Canada. In this article, Forbes noted that China’s, National Development Reform Commission (NRDC) might identify bitcoin mining as an activity that is causing harm to the environment. The article also cited that problem of the ability for the rich to evade the country’s capital controls, which I raised in this post. The NRDC has put May 7th as the deadline when it will ban bitcoin. As a result, Bitmain Technologies is looking to relocate in Canada (and the US) and BTC.Top is “opening facilities in Canada.”

Will this relocation to Canada prove to be a boon or is it a prelude to the inevitable bursting of the Bitcoin bubble?

The valuation for cryptocurrencies and crypto-assets ultimately depends on the underlying asset that backs the digital token held by management. That is, certain crypto-assets represent a service or delivery of future assets. For example, State of Wyoming has “ cleared a bill that would exempt certain types of crypto assets from securities laws…so-called “utility tokens” that are “exchangeable for goods and services.” For such tokens, valuations specialists would be needed to understand the underlying value of the service or goods to assess the value.

Cryptocurrencies, on the other hand, are highly volatile. Some companies use the spot price to determine their value and report it on their financial statements. Hive Blockchain notes on financial statements that:

“Digital currencies consist of cryptocurrency denominated assets (Note 8) and are included in current assets. Digital currencies are carried at their fair value determined by the spot rate based on the hourly volume weighted average from www.cryptocompare.com. The digital currency market is still a new market and is highly volatile; historical prices are not necessarily indicative of future value; a significant change in the market prices for digital currencies would have a significant impact on the Company’s earnings and financial position”.

With that in mind, it is essential to remember that the onset of any innovation is accompanied with an investment bubble and cryptocurrencies are no exception. For example, during the DotCom Bubble, 457 companies had an initial public opinion in the final year of the boom. According to Wired, “[m]any of the most promising companies filed for bankruptcy including Pets.com, WorldCom and FreeInternet.com.” This is the reality of how investment has worked within Capitalist economics. We see a similar pattern in the British Railway Mania of the 1840s, where “[p]rices of railway shares rose by an average of 106% between 1843 and 1845, but the market then crashed, and during a prolonged decline, railway shares fell back below their original value”. With the Dot Com Bubble, Wired article notes that:

“While this boom and crash was unfortunate for investors, it actually produced some of the most innovative ideas that were simply just ahead of their time. Concepts developed by many companies that went under, including VoIP, eCommerce, big data and the web experience, still live on today, in many cases as the fundamental concepts driving success in large corporations.”

The railway investment mania led to the development of railways in the UK. The other innovation? Accounting. According to an academic paper published by Professor Andrew M. Odlyzko:

“The 1840s were a period of dramatic growth and change for British accountants. Many of today’s big accounting firms trace some of their roots to that period. As just one example, the accounting firms around the world that use the name “Deloitte” derive it from William Welch Deloitte, who set up his own practice in London in 1845. There is rare unanimity among experts on this period in attributing the growth in the ranks and prosperity of accountants to the rising demand for accounting services from the railway industry.”

When applying these lesson to crypto-currencies (that use the proof-of-work algorithm), the reality is that there is no underlying asset or service – other than a digital token that cannot be double spent. Therefore, unlike the Dot Com companies – who could at least feign a business model – cryptocurrencies have no mechanism of delivering value to its holders or purchasers. Consequently, the best way to mitigate against valuation shocks is to avoid investing in such speculative investments.

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.

Did artificial intelligence kill the BlackBerry? It did for me.

Recently, Globe and Mail noted in their political briefing newsletter that Samsung's Knox software is deemed to be as secure as the traditional BlackBerry:

"Shared Services Canada, the department in charge of overseeing IT for the federal government, is set to offer alternatives to bureaucrats over the next 18 months as part of “a new approach to mobile service to better serve its clients, use new technology and adapt to changes in the marketplace.” Samsung and its line of Android-powered smartphones was the first to be approved by Shared Services, but only after two years and several tests showed that Samsung’s phones passed military-grade requirements."

In this blog, we've covered Blackberry's steady fall into oblivion. For me, BlackBerry was my first smartphone. I even got excited about the Torch, thinking it was the perfect compromise between the touch screen and the classic keyboard. However, that feeling faded quite quickly after using the device. It was so underpowered and underwhelming compared to the competition.

When looking at the Porter 5 forces that surrounded this once mighty Canadian tech giant, we could say that both Apple's iOS and Android offer better substitute's: better devices, more power, better apps, etc. Essentially, these devices has evolved so much that they bring the power of the PC into the palm of one's head (Samsung's Note 8 is expected to have 6GB of RAM!).   This alone doesn't explain why BlackBerry was ultimately displaced from corporate IT - well before Samsung's Knox became equal-to-BlackBerry in terms of security.

I think there were two key developments that enabled BlackBerry's decline.

The more well known one is the "consumerization of IT" phenomenon: users wanted to use their latest iPhone or Android device instead of the BlackBerry in the corporate environment. Going back to Porter 5 forces this speaks to "bargaining power of buyers": the people no longer wanted to be limited to the "one trick pony" of email and BB Messenger. And they were willing to lobby their corporate IT departments to bring on the Android and Apple devices.

This leads to the second less well known factor.

What allowed consumerization to take place was that Microsoft took an open approach to licensing it Exchange Active Sync. This move paved the way for iPhone and Android to connect their devices to the corporate email server. Microsoft open attitude essentially transferred the power from BlackBerry to the consumer.

But for me it was a little different. Of course I like the apps and GPS that my Android and iPhone bring to me: the ability to read the Kindle, listen to audio books and podcasts without having to carry multiple devices is definitely a productivity. But really it was one particular app that made me able to switch: SwiftKey.

And that's where we get to the artificial intelligence.

I was a big fan of the Blackberry,  primarily because I thought I couldn't live without the physical QWERTY keyboard. But friends who were encouraging me to switch mentioned that Android sported the SwiftKey keyboard which is powered by artificial intelligence. This keyboard is much better for me in terms of learning the words I use when I type than the predictive text feature in its iOS counterpart (which I use for work).


A little while ago, I tried a colleague's BlackBerry and the irony is that my hands hurt. And that's probably because I type a lot less specifically because of the AI approach taken by SwiftKey. As per the native analytics tracker (see graphic below) in my app I have been saved myself over 350,000 taps and am 28% more efficient. 

Today, over a quarter billion people use SwiftKey on their mobile devices. Although a little hidden from the view of analysts and academics, advances in artificial intelligence enabled SwiftKey (now owned by Microsoft) to offer a substitute for the once dominant BlackBerry physical keyboard. And for me personally it was this little piece of exponential technology (along with the relatively giant landscape of the Samsung Note 1) that convinced me it was time to switch.

And like I said, I can never go back.

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

Amazon & Drones: Role of "Regulation" in technology disruption

A number of news outlets reported Amazon's testing of drones up here in Canada. According to the Globe & Mail:

"U.S. companies like the online shopping juggernaut Amazon are increasingly choosing Canadian airspace to test new drones after being hamstrung by restrictive laws in their own country that could take up to two years to change, experts say"

Amazon showcased its vision for using drones to deliver light packages in late 2013 (see video below). However, they have been vocal about their frustration with the US regulator to test their innovation. 

The US regulators seems to have buckled under the pressure that the e-commerce giant put on them. According to Gizmodo:

"The Federal Aviation Administration has just given Amazon clearance to begin flight-testing the drones in the United States. Again. For real this time...This is the second time in as many months that the online retail giant has received a drone testing certificate from the FAA. Last time around, however, the certificate only applied to an already-obsolete prototype. Frustrated by the Feds’ inertia, Amazon recently began testing its delivery drones at a “top secret” location in Canada, just 2,000 feet from the US border."

We could explore this from a point of view of how we actually live in corporatocracy - where corporations with millions in the bank drive governmental policy instead of the average citizen. But let's not do that. Instead let's focus on how "regulation" itself can impact technological innovation.

I don't mean regulation just in the narrow sense of the "big bad government" passing this law or that statute. But a much broader concept of how societal conventions and how economic powerhouses in the Capitalist society actually determine the course of technological development.

Take for example the rise of the iPhone in the corporate environment. What allowed consumerization to take place (i.e. allowing users to connect their favourite smartphone devices to the network instead of the corporate devices) was that Microsoft took an open approach to licensing it Exchange Active Sync. They could have created a walled garden that allowed Windows Phone only to connect to their email server, however, they paved the way for iPhone and  Android to connect their devices to the corporate email server. Microsoft as the "regulator" of which mobile device can connect to its mail server - if you will - essentially enabled the iPhone and Android to displace our beloved BlackBerries from the corporate environment (for more on this see this post). Had Microsoft saw more profit in walling off the market for its own devices the ability for Apple iDevice to disrupt corporate IT would have been stifled if not suffocated.

Think this is an isolated incident? Unfortunately, that's what the hype wants you to believe

For example, David Sarnoff of RCA squashed FM radio in order to protect his AM Radio technology and pave the way for television. The inventor, Edwin Armstrong, who initially was Sarnoff's friend, had foolishly shared his technological innovations with him only to be betrayed by him. FM Radio technology had the potential to share data, such as faxes - back in the 1930s. Can you imagine the state of the wireless technology had this technology been allowed to flourish? Well that's the point. Sarnoff - as a regulator of radio technology - saw fit to erase it out of existence.

AT&T is another case in point. It ironically attempted to slay the then maverick David Sarnoff's  nascent radio technology. However, Sarnoff was able to work with the FCC and others to defend his fledgling start up, RCA, and beat the odds (unlike his "friend" Armstrong who ended up taking his life unable to achieve the same victory against Sarnoff). In 1934 AT&T blocked the answering machine for fear that it would undermine their business because "ability to record voice would cause business people to shun the telephone for fear of having their conversations recorded". So although much good came out of AT&T's Bell labs, the point is that it was effectively the one acting as which innovation saw the light of day and which did not.

What this illustrates is that the mythical innovator whose technological rises to the top through some kind meritocratic process is just that - a myth. Rather innovation is much more about how society appoints through or market mechanisms those that will ultimately sanction technology or kill it. We have the Internet because the inventors were part of a governmental DARPA project. If Bell labs had invented the TCP/IP protocol would they have taken the same route or would have it gone the way 1934 AT&T answering machine? To answer that would be pure speculation, but it is entire possible I wouldn't be writing this blog post if some "regulator" had decided otherwise.  

Amazon to Canadian Customers: These features are for US Only

Over the break, I decided to abandon my Samsung S4 and move to the Note 4. I made the mistake of buying the first cell at an independent cell shop thinking that I would get ahead on contracts. But it had chronic issues with getting the IMEI to work and then the speaker didn't work either. Never had these problems before when buying on contract. So back on contract I go.

Device is beautiful:


I had the first iteration of the device, the Note 1. This is much better and the pen seems to be much improved in terms being able to write by hand. Much crisper screen as well. Anyways, I digress.

Given the decent size of the device, I figured this would be the perfect opportunity to try out the immersion reading feature. Immersion reading enables you to hear and read the book at the same time, giving you the benefits of both the audio learning and the visualizing the text.

Much to my dismay I figured out after hours of trying to make this work that it didn't. Why? Because I am in Canada.

However, it was only after confirming my suspicions with this post that I realized the truth: Canadians are locked out of yet another one of Amazon's services. Now the real issue is why doesn't Amazon openly say this on the amazon.ca website? In fact, I even corresponded with the help and assumed that they would warn me that this feature does not work. As you read the posts, I was not the only one that was frustrated by this state of things

The incident reveals a couple of things. Firstly, Amazon is a US focused company, it does not serve Canada well. For example, it's prime video service is only in the US. This is just another example. I wonder why Chapters has not exploited this?

Secondly, it exposes the weakness with mass service model used by Amazon as well as cloud computing companies, it can serve the masses but not the unique needs of particular clientele.

Mobile Access: Canada falling behind India and China

According to a survey from Randstad found that Canadian workers are less connected then counterparts in India and China. According to the article, 76% of Canadians were connected. Although this is the majority, it is materially lower than the level of "connectedness" with counterparts in India and China where 93% of workers were connected. The article lays blame on the exorbitant fees paid by Canadians for the Internet in contrast to other countries (e.g. see this post which compares to the US. Besides the stats, US providers give 2-year contracts instead of 3 year contracts) . One of the factors that contributed to the adoption of the internet was the availability of unlimited dial-up access: users did not have to worry about rates, so they were more willing to adopt the new technology (e.g. users had to pay $20/month for unlimited internet in 1997). So price does matter when increasing the adoption of technologies. With the growth of mobile commerce in places like the UK, Canada could fall behind not just in mobile commerce but the overall development of local apps and mobile services.