Five Top Tech Takeaways: UWCISA Launches Coffee Break PD, OpenAI Drama Continues, News from Google and DeFi gets Hacked!

Gulp and Grow: Introducing Coffee Break PD's Unique Professional Development Course

We are happy to introduce the launch of Coffee Break PD, where professional development (PD) takes on a caffeinated new form! Gone are the days of dedicating entire mornings or afternoons to lengthy PD courses. We're excited to introduce our innovative, "gulp-sized" approach to PD, designed to fit seamlessly into your busy schedule.

Efficient Learning in Gulp-Sized Chunks

Our course is uniquely structured into 15-minute segments, allowing you to engage in meaningful learning over a coffee break or a quick lunch. This format not only makes learning more manageable but also more enjoyable.  

The Crypto-Double Feature: Bitcoin and the FTX Saga

This introductory course offers a dual focus:

1. Bitcoin Basics and Beyond: Delve into the world of Bitcoin, exploring its mechanics, security issues, and transaction integrity. We take you through a detailed walkthrough of a Bitcoin transaction, from initiation to its addition to the blockchain.
2. The Rise and Fall of FTX: Featuring content from Cold Fusion, a popular YouTuber known for his engaging documentary style, this segment examines the dramatic story of Sam Bankman-Fried and FTX. It's a compelling narrative that offers invaluable governance insights.

Interactive and Immediate Assessment

Each 15-minute lesson is followed by a quick quiz, allowing you to immediately apply and assess your understanding of the material. This approach eliminates the stress of a final exam, making the learning process more effective and enjoyable.

Certification and Convenience

Upon completion, you'll receive a 2.5-hour CPD certificate from the UWCISA Center, affiliated with the University of Waterloo.  

Introductory Offer: Exceptional Value for Professionals

We're offering this comprehensive 2.5-hour course at an introductory price of just $49. This is part of our commitment to making high-quality PD accessible to as many business professionals as possible. We're eager for you to experience this novel approach to earning CPD credits and to hear your feedback on the documentary style of Cold Fusion versus traditional narrative formats.

Sign up now and transform the way you learn! 

For more, check out the course site here:

 

https://courses.coffeebreakpd.com/

 

Microsoft Gains Observer Seat on OpenAI's Board

The article from The Verge discusses significant changes at OpenAI, focusing on the reinstatement of Sam Altman as CEO, Microsoft's new role on the board, and the restructuring of the board itself. Here's a summary with key takeaways:

• Sam Altman Reinstated as CEO: Sam Altman has officially returned as the CEO of OpenAI. His comeback follows a turbulent period marked by his sudden firing, which was met with widespread surprise and concern within the AI community.
• Microsoft's Enhanced Role: Microsoft, a major investor in OpenAI, has been granted a non-voting observer seat on OpenAI's nonprofit board. This move increases Microsoft's visibility into OpenAI's operations, reflecting its significant stake and interest in the company's future.
• Board Restructuring: The OpenAI board has undergone a major restructuring. Two of the four members who initially decided to fire Altman are no longer on the board. This includes Tasha McCauley and Helen Toner, who were both part of the effective altruist movement. The movement fell into disrepute due to the actions of Sam Bankman-Fried at FTX. The new board comprises Bret Taylor (Chair), Larry Summers, and Adam D’Angelo, the latter being the only member from the previous board.

On a separate, but related note, the UK competition authority is now looking into OpenAI due to Microsoft's involvement on the board.

(Source: The Verge)

Gemini: Google's Vision for the Future of AI

Google has recently announced the launch of Gemini, a new multimodal AI model family designed to surpass the capabilities of OpenAI's GPT-4. Gemini, which is an advancement over Google's previous model, PaLM 2, has demonstrated superior performance in 30 out of 32 widely used academic benchmarks in large language model research. This AI model is capable of processing various types of input, including text, code, images, and audio, and aims to provide accurate problem-solving, advice, and answers across different fields. Google plans to integrate Gemini into its products, enhancing computing capabilities. Gemini will be available in three versions: Gemini Ultra for complex tasks, Gemini Pro for a wide range of tasks, and Gemini Nano for on-device tasks. Currently, only the mid-level Gemini Pro is accessible to the public through Google Bard, showing significant improvements over its predecessor.

Key Takeaways:

• Multimodal Capabilities: Gemini's ability to process multiple types of input, such as text, code, images, and audio, marks a significant advancement in AI technology.
• Three Versions for Different Needs: Gemini is tailored to various applications, with Gemini Ultra for complex tasks, Gemini Pro for general tasks, and Gemini Nano for local device applications.
• Integration into Google Products: Google's plan to incorporate Gemini into its product ecosystem signifies a major step towards more sophisticated and integrated AI solutions.

(Source: Ars Technica)

Google Strikes a $100 Million Deal with Canada on Online News Act

Google and the Canadian federal government have reached a significant agreement regarding the Online News Act. This deal will enable Google to continue sharing Canadian news online, in exchange for making annual payments to news companies, estimated to be around $100 million. This agreement, which addresses Google's concerns about the mandatory negotiation model and structural issues of the Act, allows Google to negotiate with a single group representing all media, reducing arbitration risks. The agreement is seen as a victory for Canadian media and may set a precedent for other countries. However, Meta (Facebook's parent company) has not resumed negotiations and has stopped distributing Canadian news on its platforms.

Key Takeaways:

• Annual Payments to News Companies: Google will make annual payments estimated at $100 million to Canadian news companies.
• Single Negotiation Group: The deal allows Google to negotiate with a single representative group for all media, simplifying the process and reducing risks.
• Precedent for Future Agreements: This agreement could serve as a model for other countries in their dealings with tech giants over news content distribution.

(Source: CBC)

The KyberSwap Saga: Hacker's Bold Power Play in Crypto Heist

The KyberSwap hack is a remarkable event in the cryptocurrency world, involving a sophisticated breach and a hacker with demands akin to a spy novel's plot. The heist, which occurred on November 22, 2023, resulted in the theft of approximately $48 million from KyberSwap's liquidity pools across multiple blockchains. The hacker, self-titled "Kyber Director," made outlandish demands, including complete executive control over KyberSwap, full authority over KyberDAO, and access to all company-related documents and assets. These demands, which were communicated on-chain, also promised a transformation of KyberSwap, including buyouts for executives, doubled salaries for employees, and rebates for liquidity providers, with a deadline set for December 10. The hacker's approach and the nature of the demands highlight the unique and sometimes surreal challenges faced in the realm of decentralized finance.

Key Takeaways:

• Massive Financial Impact: The hack led to a significant loss of $48 million, affecting multiple blockchains.
• Unprecedented Hacker Demands: The hacker's demands for complete control over KyberSwap and access to all company assets are unusually extreme and audacious.
• Potential Transformation of KyberSwap: The hacker's promises, if met, could lead to a complete overhaul of KyberSwap's operations and management.

(Source: Interchain Info)

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.

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: OpenAI's Sam Altman FIRED on Friday, hired at MICROSOFT on Monday + Hackers Take Advantage of SEC Rule + 3 other stories

Empty AI Throne

Drama in Silicon Valley: Sam Altman Fired from OpenAI, Hired at Microsoft

In a surprising turn of events that has sent ripples through the generative AI industry, Sam Altman, the CEO of OpenAI, was abruptly dismissed from his position. This news, which broke late last Friday, has sparked a flurry of speculation and discussion among industry experts and enthusiasts alike.

The Unfolding Drama at OpenAI

OpenAI, known for its groundbreaking work in the field of artificial intelligence, released a rather cryptic press statement regarding Altman's departure. The statement hinted at a lack of transparency with the board, leading to his termination. This board, a non-profit entity, oversees both the non-profit and commercial arms of OpenAI, indicating that Altman's dismissal wasn't just a mere managerial shuffle but a significant shift in the organization's direction.

Matt Wolfe of Future Tools provided an insightful breakdown of the speculative reasons behind Altman's firing. It appears that a fundamental conflict emerged between the commercial demands placed on OpenAI's applications and the non-profit trajectory envisioned by the board. This conflict, seemingly at the heart of Altman's dismissal, points to a deeper rift within the company regarding the future of generative AI and OpenAI's role in it. Here are some key quotes from his take:

• On Microsoft's Reaction to Altman's Ouster: "Microsoft claims that they were completely blindsided by the decision... Satya Nadella from Microsoft himself had a rather cold statement about the whole ordeal."
• Board Dynamics and Decision: "The board voted to boot out Sam Altman... the board is just six seats total... Greg Brockman and Sam Altman weren't in on this decision... much of the speculation leaning towards Ilia [Sutskever] sort of masterminding the push out of Sam."
• Altman's Contributions and Leadership: "Sam Altman almost singlehandedly brought this company to an 80 plus billion dollar valuation... it was under Sam's leadership that they managed to get this company to over a 100 million active users."
• Speculations on the Reasons for Altman's Departure: "These two philosophies were at odds with each other... Ilia and the more scientific academic side of the company weren't super excited about things like being able to build your own GPTs and then sell them in a GPT store."
• Safety vs. Rapid Growth: "People like Ilia... want to make sure that the security, the privacy, all of these implications... are really being thought through... where Sam Altman is on the side of let's get it out to the world, let's let the world use it, test it, move fast and break things."

Microsoft's Strategic Move

In a twist that added more intrigue to the situation, Microsoft, through a tweet from CEO Satya Nadella, announced hiring both Sam Altman and Greg Brockman into a new division within the tech giant. This move by Microsoft is not just a mere hiring of talent but a strategic acquisition of expertise in a field rapidly shaping technology's future. 

The Ripple Effect of Altman's Departure

Altman's firing and the subsequent hiring by Microsoft have had a noticeable impact on OpenAI. Several employees resigned in protest, underscoring the internal divisions and differing visions for the company's future. This situation highlights the ongoing tension between commercial aspirations and the ethical, non-profit motivations in the rapidly evolving AI industry. According to CNN, "Emmett Shear, the former CEO of Amazon’s streaming service Twitch, will join OpenAI as interim CEO. He replaces Mira Murati, who was named interim CEO when Altman was fired. She will return to her role as OpenAI’s chief technology officer."

Looking Ahead: The Future of AI Leadership

As we observe these developments, it's essential to ponder the broader implications for the AI industry. With Altman's expertise now under Microsoft's umbrella, how will this shift the dynamics of innovation and leadership in AI? Moreover, what does this mean for OpenAI's future and its commitment to balancing commercial success with ethical AI development?

And now for four other stories!

(Sources: Matt Wolfe, CNN, WSJ)

Ransomware Gang Turns to SEC for New Extortion Tactic

In a groundbreaking move, the notorious ransomware gang ALPHV/BlackCat filed a "failure to report" complaint against its victim, MeridianLink, with the U.S. Securities and Exchange Commission (SEC). This incident, reported by SC Media, marks the first instance of hackers using the SEC complaint system as a weapon against their victims. The complaint alleges that MeridianLink did not disclose a significant data breach in compliance with SEC regulations. MeridianLink, a digital lending company, acknowledged the cyber incident but claimed no sensitive user data was compromised. This situation highlights a new dimension in cyber extortion, where legal systems and disclosure regulations can be manipulated by cybercriminals.

Key Takeaways:

• Innovative Cyber Extortion: This incident represents a novel form of cyber extortion, where legal requirements for breach disclosure are exploited by ransomware groups.
• Regulatory Implications: The manipulation of SEC disclosure rules by hackers underscores the need for companies to be vigilant about regulatory compliance in the event of data breaches.
• Rising Threat of Ransomware Groups: ALPHV/BlackCat's actions demonstrate the evolving tactics of ransomware groups, posing new challenges for cybersecurity and legal compliance.

(Source: SC Media).

Fidelity Joins the Crypto ETF Race with Ethereum Fund

Fidelity Investments is making a significant move in the cryptocurrency market by seeking to create an exchange-traded fund (ETF) based on Ethereum's ether (ETH), as reported by CoinDesk. This initiative places Fidelity alongside BlackRock, another financial giant, in a deeper commitment to cryptocurrency investments. The proposed Fidelity Ethereum Fund, which would be listed by Cboe Global Markets, is still pending approval from the U.S. Securities and Exchange Commission (SEC). Both Fidelity and BlackRock are also interested in launching Bitcoin (BTC) ETFs, though these too await SEC approval. The introduction of ETFs for major cryptocurrencies like BTC and ETH could potentially revolutionize the crypto market, making it more accessible to average investors through conventional brokerage accounts.

Key Takeaways:

• Expansion into Crypto ETFs: Fidelity's plan to launch an Ethereum ETF signifies a growing interest among major financial firms in cryptocurrency-based investment products.
• Regulatory Hurdles: The success of these ETFs hinges on the approval of the U.S. SEC, which is currently deliberating on both Ethereum and Bitcoin ETFs.
• Increased Accessibility for Investors: If approved, these ETFs could dramatically simplify investing in cryptocurrencies, attracting new investors and potentially impacting the crypto market.

(Source: CoinDesk).
 

Microsoft Ignite 2023: The Rise of AI-Assisted Work Environments

Last week, Microsoft announced significant innovations in its Copilot technology at Microsoft Ignite 2023, introducing Microsoft Copilot Studio and new features in Copilot for Microsoft 365. Copilot for Microsoft 365, now generally available for enterprises, integrates seamlessly across Microsoft's platforms, enhancing productivity and creativity. It has been adopted by major companies like Visa, BP, Honda, Pfizer, and Chevron. The new Copilot Studio is a low-code tool allowing customization of Copilot for Microsoft 365 and the creation of standalone copilots. This development represents a significant leap in AI-assisted work environments, offering sophisticated capabilities for personalization, mathematical analysis, and collaboration. Here is a promotional video from the company.

Key Takeaways:

• Widespread Enterprise Adoption: Leading global companies are already leveraging Copilot for Microsoft 365, indicating its significant impact on enterprise productivity.
• Customization with Copilot Studio: The introduction of Copilot Studio enables businesses to tailor Copilot to their specific needs, enhancing its utility in various professional scenarios.
• Enhanced Collaboration and Analysis Tools: Copilot's integration into Microsoft 365 apps facilitates advanced collaboration and data analysis, transforming the way professionals interact with technology at work.

(Source: Microsoft 365 Blog).

Emu Video and Edit: Meta's Leap into AI-Driven Video Creation

Meta Platforms has recently launched two innovative AI-based video editing features, as Reuters reported. These features, designed for use on platforms like Instagram and Facebook, represent a significant advancement in the realm of digital content creation. The first feature, Emu Video, generates four-second videos based on a user's prompt, which can include a caption, photo, or image, along with a description. The second feature, Emu Edit, simplifies the video editing process by allowing users to modify videos using text prompts. These tools build upon the existing Emu model, which creates images in response to text prompts and underpins generative AI technology. This technology is also used in AI image editing tools for Instagram, enabling users to alter a photo's visual style or background. The introduction of these tools by Meta highlights the company's commitment to advancing in the AI space, positioning it to compete with other tech giants like Microsoft, Google, and Amazon.

Comment:  

As noted in a previous UWCISA blog post, advances in this arena will ultimately bolster user-generated content. Though the tools are not there yet, they speak to the possibilities for regular people to translate their stories into feature-length content. This type of content is likely to become dominant in the not-too-distant future.

Key Takeaways:

• Innovative Video Editing Tools: Emu Video and Emu Edit represent a leap forward in AI-driven video editing, offering new creative possibilities for social media content.
• Generative AI Technology: These tools are based on generative AI, showcasing Meta's investment in cutting-edge technology for enhancing user experience.
• Competitive Advancement in AI: Meta's development of these tools underscores its ambition to be a key player in the AI market, competing with major tech companies.

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: SBF Gets Convicted, Elon Releases Grok, OpenAI's AppStore, Samsung's AI Plunge and Neuralink's Human Trials

SBF goes to Jail.

Sam Bankman-Fried Convicted: Jury Delivers Guilty Verdict in 5 Hours!

Sam Bankman-Fried (SBF), the founder of FTX, has been found guilty on all seven criminal fraud counts, potentially facing up to 115 years in prison. The jury arrived at the verdict within 7 hours. As predicted in a previous post, SBF's ill-advised media tour contributed to his downfall. The swift verdict also served as a stinging rebuke to Michael Lewis's portrayal of the SBF-FTX saga, which painted a sympathetic picture of the now-convicted fraudster. For Coffeezilla's take on Lewis's account, see below. For a video summary of the whole affair, check out ColdFusion's video. 

• Takeaway 1: Bankman-Fried was convicted of a range of fraud charges, including wire fraud and conspiracy against FTX customers and lenders, securities and commodities fraud against investors, and money laundering.
• Takeaway 2: The case underscores the importance of ethical conduct and transparency in business operations, especially in new and complex industries like cryptocurrency.
• Takeaway 3: The swift verdict, delivered after a month-long trial featuring testimony from former close associates, highlights the severity with which the justice system treats financial fraud.

(Source: CNBC)

Elon Musk's Grok: Pushing the Boundaries of AI Conversations

Elon Musk's new venture, xAI, has announced the creation of Grok, an AI language model that boasts a unique blend of humor and rebelliousness, designed to respond to queries that other AIs typically avoid. This development raises intriguing questions about the balance between AI freedom and ethical guardrails.

• Takeaway 1: Grok is positioned as an unconventional AI that can engage with "spicy" content, a departure from the cautious approach of mainstream AI models.
• Takeaway 2: The absence of standard content filters in Grok could lead to ethical and legal challenges, especially if it generates biased or harmful content.
• Takeaway 3: Despite its controversial nature, Grok's creation in just two months and its integration with real-time information from platforms like Twitter could represent a significant advancement in AI responsiveness and relevance.

(Source: WIRED)

ChatGPT Goes Custom: OpenAI's Latest Innovation

OpenAI is set to revolutionize the AI industry with the launch of its GPT Store, a platform akin to Apple's App Store, which will allow developers to create and share custom versions of ChatGPT. This initiative not only opens up new possibilities for personalized AI applications but also promises to share revenue with AI bot creators, fostering a new ecosystem of AI-driven services. OpenAI's GPT4 LLM now goes up to April 2023 (instead of September 2021). 

• Takeaway 1: The GPT Store will enable the creation and discovery of specialized ChatGPT bots, potentially leading to a surge in personalized AI services.
• Takeaway 2: OpenAI's move mirrors the App Store's strategy, aiming to become a central hub for AI tools and applications.
• Takeaway 3: The platform is designed to be collaborative, with revenue-sharing to incentivize developers, which could democratize AI development and usage.

(Source: The Verge)

Breaking Language Barriers: Samsung's Galaxy AI Initiative

Samsung is set to enhance its Galaxy S24 series with advanced AI capabilities, as confirmed by a recent blog post from the company. The new Galaxy AI feature will include AI Live Translate Call, allowing Galaxy phones to act as real-time personal translators during calls and texts, akin to live closed captions. This feature, part of the on-device and cloud-based AI experience, is expected to debut early next year, presumably with the Galaxy S24, which is rumored to be unveiled on January 18th.

• Takeaway 1: Samsung's Galaxy S24 series will introduce Galaxy AI, emphasizing real-time translation during calls and texts.
• Takeaway 2: The AI Live Translate Call feature signifies a leap in communication technology, potentially eliminating language barriers.
• Takeaway 3: The Galaxy S24 is rumored to feature a titanium frame and a 6.8-inch flat display, indicating significant hardware upgrades alongside the AI enhancements.

(Source: MobileSyrup)

Neuralink's Human Trials: A Step into the Future of Neurotechnology

Elon Musk's Neuralink has garnered significant interest for its upcoming human trials, with thousands of people reportedly eager to participate. The company, which received FDA approval earlier this year, aims to implant devices that could act as a "Fitbit in your skull," targeting individuals with paralysis from spinal cord injuries or amyotrophic lateral sclerosis (ALS). Neuralink's ambitions don't stop there; they envision a future where humans can communicate with machines and control digital interfaces using only their thoughts. However, the invasive nature of the procedure, which involves removing a portion of the skull to insert electrodes into the brain, necessitates a cautious approach, as emphasized by Neuralink's director, Shivon Zilis.

• Takeaway 1: Neuralink is moving towards human trials with a high level of public interest, aiming to assist those with severe neurological conditions.
• Takeaway 2: The technology involves a significant surgical procedure, replacing part of the skull with a device connected to the brain via ultra-thin threads.
• Takeaway 3: Despite the potential benefits, the invasive nature of the implantation process raises important ethical and safety considerations.

(Source: Business Insider)

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: Google's $18B Anti-Trust Woes, Hidden AI Workers, AI Beats Going to Uni, AI Executive Order and Can AI Pass Accounting?

AI's CPA Exam Woes

The Hidden Workforce Behind AI's Training.

The booming artificial intelligence (AI) industry heavily relies on a vast, often overlooked workforce that labels data. Major companies, including tech giants such as Amazon and Facebook, outsource this data labeling to crowdsourced workers in regions with low labor costs. The global data collection and labeling market, which stood at $2.22 billion in 2022, is projected to escalate to $17.1 billion by 2030. However, beneath this growth lies a stark reality: many workers face long hours, unpredictable incomes, and minimal pay for their tasks. This exploitative trend is pervasive across developing nations, prompting concerns and discussions about ethical practices in the AI training landscape.

Key Takeaways:

• Major tech companies are heavily reliant on gig workers in economically challenged regions to train their AI models.
• The global data collection and labeling industry is rapidly growing, with a projected worth of $17.1 billion by 2030.
• Workers face uncertain incomes and long hours, leading some to label it as "digital slavery."

Source: WIRED

The New Gold Rush: Young Minds Ditch College for AI Ventures.

A growing number of teenagers and young adults are leaving their college education behind to capitalize on the surging AI industry. They are lured by the promising investment wave in AI, as evidenced by more than 25% of American startup investments going to AI firms this year. The emergence of technologies like ChatGPT and the increasing value of the generative-AI applications market have emboldened many young founders to leave their studies and focus on their AI ventures.

Key Takeaways:

• A surge in AI investments has led to a trend of students dropping out of college to focus on AI startups.
• Generative AI technologies, such as ChatGPT, have revolutionized the startup landscape, enabling entrepreneurs to create solutions without needing large teams.
• While some young founders achieve success, there's an understanding that not every venture will thrive, but returning to college remains an option for many.

(Source: The Wall Street Journal)

Experts evaluate if AI can pass as an accounting professional exam

A panel of accounting experts convened to evaluate the responses of the AI system BARD to questions in fields like auditing, tax, and forensic accounting. They wanted to test the claim that AI could become an expert in these areas. The panel used Bloom's Taxonomy, a framework for learning objectives, to assess if BARD could demonstrate higher-order thinking skills. Some panelists assigned the AI a letter grade. 

Key Takeaways:

• BARD provided factually incorrect answers and only demonstrated basic recall of information for internal auditing questions.
• For tax topics, BARD gave thorough responses but could not replace a CPA's expertise and experience.
• BARD struggled with comprehension of forensic accounting and GAAS standards, often oversimplifying complex professional guidelines.

(Source: CPA Journal)

Does Google Spend $18 Billion to Keep Safari in Check?

 

A significant development in the US v. Google trial highlights the multibillion-dollar deals between tech giants Google and Apple. Based on a recent report from The New York Times, Google pays a hefty sum, approximately $18 billion, annually to Apple to remain the default search engine for Safari across Apple devices such as Macs, iPads, and iPhones.

Three Major Takeaways:

• Google's payment to Apple not only secures its primary position on Apple devices but also historically discouraged Apple from creating its own search engine. Notably, Apple has explored avenues like acquiring Bing or crafting a unique search engine, but hesitations arise from potentially antagonizing Google and losing the lucrative deal.
• Microsoft's CEO, Satya Nadella, implied that Apple maintains its alliance with Google as it could face challenges if Google decided to leverage its widely-used applications, like Gmail and Maps, to push users toward Chrome and away from Safari.
• The US v. Google trial has spotlighted the implications of Apple's agreement with Google, arguing that it promotes an anticompetitive monopoly. The idea is that any search engine partnered with Apple's vast market share would instantly gain significant influence.

(Source: The Verge)

White House Releases AI Executive Order

The White House has unveiled an extensive executive order on artificial intelligence (AI). This directive encompasses nearly all federal agencies, aiming to regulate and guide the growth of AI to safeguard the public, economy, and national security. Given the limited power of President Biden's executive branch and the unlikelihood of Congress producing new AI-related laws soon, this order is set to be the most assertive piece of U.S. regulation on this rapidly expanding industry for the foreseeable future.

Key Takeaways:

• The executive order mandates developers of high-end AI systems to disclose their safety test outcomes to the U.S. government. It also establishes rigorous standards for testing to ensure AI product safety before public release.
• To combat AI-driven deep fakes and misinformation, the Department of Commerce will create guidelines for content authentication and watermarking. This will help label AI-generated content clearly.
• Addressing concerns about AI potentially displacing millions of jobs, the order instructs the administration to draft a report on AI's potential labor market effects. It will also explore ways to bolster federal support for workers impacted by AI-induced labor disruptions.

(Source: CNBC Television)

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.

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: MBAs vs AI, Bitfinex Hacker Comes Clean, and Big Open AI and Google Bard Updates

Strategy.ai 

EY Unveils Fruits of $1.4 Billion Artificial Intelligence Investment: 

Consulting firm EY has invested $1.4 billion in artificial intelligence and developed its own large language model, EY.ai EYQ, marking the latest in a series of substantial AI investments by professional services companies. EY plans to train its 400,000 employees on AI and will continue to refine its AI model, focusing on ensuring privacy and data security. This investment follows similar commitments from peers like KPMG, Accenture, PricewaterhouseCoopers, and Deloitte, reflecting a broader trend in the industry. The firm aims to alleviate uncertainties surrounding AI implementation and offer comprehensive solutions, addressing the growing demand for AI strategies among corporate technology leaders. The EY.ai platform embeds AI in new and existing products, providing a structured path for effective AI deployment at scale.

Tech Entrepreneur Admits to Being Hacker in $4.5 Billion Bitcoin Heist: 

Ilya Lichtenstein, a tech entrepreneur from New York, has confessed to orchestrating one of the largest crypto heists in history, involving the theft of bitcoins now valued at billions of dollars from crypto exchange Bitfinex in 2016. Lichtenstein and his wife, Heather Morgan, pleaded guilty to conspiring to launder the stolen digital currency and defrauding the U.S. The stolen bitcoins, initially worth about $71 million, have surged in value to $4.5 billion. Federal prosecutors have recovered over $4 billion of the stolen funds, and Lichtenstein is cooperating with the government to recover the remaining amount. Despite their criminal activities, the couple maintained a high profile, with Morgan even writing a column for Forbes and pursuing a career as a rapper under the name Razzlekhan. (Do note that her music is terrible and cringe-worthy.)  Lichtenstein faces up to 20 years in prison, while Morgan faces up to five years for each of her two charges. (Source: WSJ)

Generative AI Outshines Wharton MBAs in Idea Generation

A study conducted at the Wharton School compared the innovative idea generation of MBA students to ChatGPT, a large language model. The study found that ChatGPT could generate ideas more quickly and, on average, of higher quality than the students. When market tested, the average purchase probability of a human-generated idea was 40%, while it was 47% for untrained ChatGPT and 49% for trained ChatGPT. When considering only the top 10% of ideas, 35 out of 40 were created by ChatGPT. This suggests that generative AI models like ChatGPT can be a valuable source of innovative ideas, shifting the bottleneck in the innovation process to evaluating rather than generating ideas. The study advocates for a collaborative approach where AI serves as a co-pilot to human innovators, ensuring a thorough exploration of possible solutions. (Source: WSJ)

AI Foundation Models: UK Government's Initial Report 

The UK government has published an initial report on AI foundation models (FMs).  FMs are pivotal in transforming industries, offering enhanced products, services, and breakthroughs in various domains. The document emphasizes the importance of competition, adherence to consumer and competition laws, and considerations for safety, data protection, and intellectual property rights.  It emphasizes the need for responsible AI practices to ensure ethical use and mitigate potential risks. The report provides a framework for policymakers, researchers, and industry stakeholders to navigate the complex landscape of AI. It also advocates for a collaborative approach involving leading FM developers, innovators, government, and regulators, with an update on principles and adoption due in early 2024 (Source: UK Government, Engadget).

OpenAI's ChatGPT Updates:

OpenAI has introduced several new capabilities to ChatGPT. Users can now interact with ChatGPT through both text and voice, allowing for more dynamic conversations. Additionally, ChatGPT has gained the ability to perceive visual information, enhancing its utility.

OpenAI has also introduced DALL-E 3, a significant improvement from DALL-E 2. This new version can generate higher quality images from the same prompts, providing better visual representations. This feature is available through the ChatGPT Plus subscription, which costs $20 a month. Subscribers will have exclusive access to this advanced feature.

DALL-E 3 can also generate letters, a significant accomplishment for AI image generators. It has overcome previous limitations, now being able to accurately generate images of fingers and hands, which had been problematic. Furthermore, it excels in text-based prompting, putting it ahead of the competition, including models like Mid Journey. (OpenAI, OpenAI)

Google's Bard Updates:

Google's Bard has received a massive update, enhancing its chatbot capabilities.  The updates include integration with Google’s suite of tools like YouTube, Google Drive, and Google Flights, allowing users to ask Bard to plan trips with real flight options or summarize documents from Google Drive. Bard can now communicate in multiple languages and has new fact-checking capabilities, allowing users to verify the accuracy of its responses with a “double check” button, highlighting areas where Google Search results confirm or differ from the chatbot’s statements. This feature aims to counter AI “hallucinations,” where the AI makes confident but incorrect statements. Users can also link Gmail, Docs, and Google Drive to Bard for personalized assistance, with the assurance that their personal information will not be used for training Bard or for targeted advertising. The updates reflect Google's ongoing efforts to advance consumer-facing AI technologies and enhance user interaction with generative AI across its services.

Canadians should note that Google Bard is currently not available in Canada, and there is no indication of when it will be released in the country. (Source: Google, CNN, BNN)

 

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.