Five Top Tech Takeaways: More OpenAI Drama, AI Ascends in Consulting, Google Splinters, and Apple's AI Goes Premium at $20

McKinsey: 40% projects involve AI

1. Google Faces Potential Breakup Amid Antitrust Battle

The U.S. Department of Justice is exploring options to address Google's illegal monopoly over the online search market, following a recent court ruling. Potential actions include breaking up Google's parent company, Alphabet, by divesting key assets such as the Android operating system, AdWords, and the Chrome web browser. The ruling marks a significant victory for federal efforts to curb the dominance of major tech companies, with further antitrust action against Google on the horizon.

• The U.S. Department of Justice may consider breaking up Alphabet’s Google, potentially divesting major assets like Android, AdWords, and Chrome.
• The court ruling found Google spent billions to create an illegal monopoly, marking a major victory in federal efforts against big tech.
• Google is appealing the decision, while facing another antitrust lawsuit from the Department of Justice next month.

Source: The Guardian

2. OpenAI Leadership Exodus: Schulman Departs, Brockman Takes Leave

OpenAI is undergoing a significant leadership shakeup as co-founder John Schulman departs for Anthropic and president Greg Brockman takes a sabbatical. These changes follow other high-profile exits, sparking speculation about internal conflicts and the company's future direction. Despite these challenges, OpenAI has upcoming projects like SearchGPT and Sora, which may help restore momentum.

• OpenAI co-founder John Schulman has left for rival company Anthropic, while co-founder and president Greg Brockman is taking a sabbatical.
• These departures add to a series of high-profile exits, raising concerns about internal disagreements over the company’s mission and safety priorities.
• Despite the shakeup, OpenAI has promising projects in the pipeline, including SearchGPT and the AI video generator Sora, which could revive interest in the company.

Source: Mashable

3. AI Brings Back Hollywood Icons: The Rise of Ethical Voice Cloning

Hollywood’s golden age stars are being revived through AI voice cloning deals, offering a glimpse into how the industry is tackling concerns over unauthorized AI impersonations. ElevenLabs, an audio technology startup, has secured agreements with the estates of iconic actors like Burt Reynolds and Judy Garland to use their voices in AI-generated audiobooks. This trend highlights a potential path for ethical AI use in the entertainment industry, balancing innovation with respect for the legacies of deceased celebrities.

• ElevenLabs has struck deals with the estates of classic Hollywood stars to use AI-generated versions of their voices for audiobooks, including icons like James Dean and Judy Garland.
• The deals could set a precedent for controlled, ethical AI voice cloning, addressing concerns about unauthorized impersonation in the industry.
• Despite the advancements, the debate continues over the impact of AI on voice actors, with some seeing it as a new revenue stream and others as a threat.

Source: CNBC

4. Apple’s AI Strategy: $20 Subscription for Premium Intelligence Features

Apple is considering charging users up to $20 for its advanced AI features, branded as "Apple Intelligence," as the company seeks to further monetize its services division. These premium AI tools, which include a more powerful Siri and automatic content generation, may be integrated into the Apple One subscription model. This move aligns with Apple's strategy of enhancing its service offerings to increase revenue, following a trend seen in other tech companies like Microsoft and OpenAI.

• Apple may charge $10 to $20 for its advanced AI features under the "Apple Intelligence" brand, possibly as part of its Apple One subscription service.
• The premium AI tools include enhancements to Siri and new features like automatic email and image generation.
• Apple’s strategy to monetize AI services could further lock in its loyal user base by offering personalized, behavior-driven experiences.

Source: CNBC

5. AI Boom: McKinsey Sees 40% of Client Projects Linked to AI

McKinsey & Co. is experiencing a surge in demand for AI-related consulting projects, which now account for 40% of its client work. This trend is helping the firm and its peers boost revenue amid a broader industry slowdown. Traditional sectors like banking and insurance are rapidly adopting AI, and McKinsey’s AI-focused unit, QuantumBlack, is growing quickly. The consulting giant is also preparing its workforce to adapt to AI, recognizing its crucial role in maintaining relevance in the market.

• AI-related projects now make up 40% of McKinsey’s client work, reflecting the rapid adoption of AI in industries like banking and insurance.
• The rise of AI is providing relief to the consulting industry, which has been facing a slowdown in demand for traditional services.
• McKinsey’s QuantumBlack unit is expanding rapidly, and the firm is focusing on training its workforce to integrate AI into their daily tasks.

Source: BNN Bloomberg 

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.