UWCISA: Official Blog: February 2025

Friday, February 21, 2025

Anthropic’s Economic Index, Crypto’s Banking Battle, and Europe’s Big Investment

UWCISA Blog · Anthropic’s Economic Index, Crypto’s Banking Battle, and Europe’s Big Investment

Grok 3 AI Now Free on X – Here’s What You Need to Know

X's AI chatbot, Grok 3, is now free for all users, removing the previous paid subscription requirement. The latest version introduces DeepSearch for web research and Think mode for problem-solving. However, paid subscribers of X Premium+ and SuperGrok will still get exclusive benefits like increased access and early features such as Voice Mode. The cost of X Premium+ has also jumped to $40 per month. Users can access Grok 3 through X, its web portal, or mobile apps, and can upload various file types for AI analysis.

Grok 3 AI is now free for everyone, giving users access to its most advanced features.
Premium subscribers receive exclusive perks, such as early access to Voice Mode and extended usage limits.
X Premium+ subscription costs have increased, now requiring users to pay $40 per month.

(Source: ZDNet)

How AI is Changing Jobs: Anthropic’s Economic Index Reveals Key Trends

Anthropic’s new Economic Index analyzes AI’s impact on the job market using millions of anonymized Claude.ai conversations. The report shows AI is widely used in software development and technical writing, with mid-to-high wage jobs seeing the most benefit. AI is primarily augmenting human capabilities (57%) rather than automating tasks (43%). The findings aim to help policymakers and researchers navigate AI’s evolving role in the economy.

AI is mainly used in software development and writing, with limited impact on manual labor fields.
AI is more likely to enhance work than replace it, with 57% of tasks being augmented.
Mid-to-high wage jobs benefit the most from AI adoption, while lower-wage jobs see minimal impact.

(Source: Anthropic)

EU Unveils €200 Billion AI Investment Plan to Compete Globally

The European Commission has announced a €200 billion investment initiative to advance AI development in Europe. €20 billion will be allocated for AI gigafactories, which will help train large-scale AI models. This move follows a €109 billion AI investment plan in France and comes as the US ramps up AI spending to $500 billion. The InvestAI initiative will support both large enterprises and smaller companies, ensuring Europe remains competitive in the AI race.

The EU is investing €200 billion in AI development, including €20 billion specifically for gigafactories.
France has also pledged €109 billion for AI research, increasing European efforts to compete globally.
InvestAI will help fund AI innovation and startups, allowing smaller businesses to access advanced technology.

(Source: Euronews)

Crypto vs. Banks: Congress Probes ‘Operation Chokepoint 2.0’

Crypto businesses in the US have struggled to access banking services, sparking allegations of government-led debanking efforts under what’s being called "Operation Chokepoint 2.0." Critics claim that federal regulators informally pressured banks to sever ties with crypto companies. The issue has now gained political traction under the Trump administration, leading to congressional hearings to investigate whether federal agencies improperly influenced banking policies. Some banks are reconsidering their stance, potentially easing restrictions on crypto firms.

Crypto firms claim they are being unfairly debanked, allegedly due to informal government pressures on banks.
Congress is holding hearings on 'Operation Chokepoint 2.0', investigating whether regulators targeted crypto companies.
Some banks are reevaluating their stance on crypto, possibly leading to fewer restrictions on industry banking.

(Source: Wired)

AI and Creativity: Tool or Threat to Human Artists?

AI-generated content is rapidly advancing, raising concerns in art, music, and writing industries. While AI tools enhance creativity and efficiency, they also spark debates over originality, copyright, and job security. Some artists embrace AI as a collaborative tool, while others fear it could replace human creativity. Companies are increasingly investing in AI-generated media, fueling discussions on whether AI should be credited as a creator. As legal frameworks struggle to keep up, the industry faces critical questions about ownership and ethics.

AI is transforming creative industries, from art to music, raising questions about its long-term impact.
Some artists embrace AI as a creative tool, while others worry it threatens human originality.
AI-generated content challenges copyright laws and ownership rules, leading to legal and ethical concerns.

(Source: The Verge)

Friday, February 14, 2025

The Future of AI & Materials: Major Lawsuits, Breakthroughs, and Policy Shifts

UWCISA Blog · The Future of AI & Materials: Major Lawsuits, Breakthroughs, and Policy Shifts

JD Vance Slams AI Regulations, Widening U.S.-Europe Divide

At the Artificial Intelligence Action Summit in Paris, U.S. Vice President JD Vance criticized Europe’s stringent AI regulations, arguing they could stifle innovation. His remarks highlighted a growing global divide on AI governance, with the U.S. favoring minimal restrictions, Europe enforcing strict policies, and China expanding state-backed AI. The U.S. notably abstained from signing a global AI pledge signed by over 60 nations, including China, further isolating itself on the issue. Vance’s speech, his first major policy address as vice president, framed AI as a pivotal economic force and emphasized the Trump administration’s commitment to free-market AI development. European leaders, however, defended their approach, citing safety and public trust. Meanwhile, China promoted open-source AI while simultaneously tightening domestic controls. The summit underscored the global power struggle over AI dominance, as well as growing tensions between the U.S. and its allies over regulatory approaches.

Key Takeaways:

U.S. vs. Europe on AI: Vance warned that overregulation could hinder AI innovation, putting the U.S. at odds with Europe’s strict oversight.
China’s AI Strategy: China supported a global AI pledge while expanding state-backed AI at home, further complicating the international landscape.
Global AI Race: The summit revealed intensifying competition between the U.S., Europe, and China to set AI standards and maintain technological leadership.

(Source: CTV News)

AI Copyright War: Cohere Faces Lawsuit from Leading Media Companies

A coalition of major publishers, including The Toronto Star, Forbes, The Atlantic, The Guardian, Vox Media, and Politico, has filed a lawsuit against Canadian AI firm Cohere, alleging that the company used copyrighted content without permission to train its generative AI models. The lawsuit, filed in a New York court, demands damages and a permanent injunction to prevent Cohere from reproducing their work. The plaintiffs argue that AI companies profiting from journalism without compensation threaten the media industry, which is already struggling with declining ad revenue. Cohere, valued at $5.5 billion, dismissed the lawsuit as “misguided and frivolous,” asserting that it follows responsible AI training practices. The case is part of a growing legal battle between publishers and AI firms, as media companies push for legal precedents to protect journalistic content from unauthorized AI use.

Key Takeaways:

Publishers vs. AI: Major media companies accuse Cohere of using their content without permission and demand financial compensation.
AI Copyright Challenges: The case reflects broader legal battles as publishers seek to establish protections against unauthorized AI training on their work.
Cohere’s Response: The AI company denies wrongdoing, calling the lawsuit baseless and insisting it adheres to responsible AI practices.

(Source: The Star)

Microsoft Study Warns AI Dependence Erodes Critical Thinking

A new study by Microsoft and Carnegie Mellon University warns that excessive reliance on AI tools can erode critical thinking skills. Researchers found that knowledge workers who trusted AI to complete tasks tended to disengage mentally, particularly with low-stakes work, leading to diminished problem-solving abilities. The study also highlighted that AI-assisted users produced less diverse solutions, raising concerns about creativity and independent thought. Conversely, those skeptical of AI’s accuracy were more likely to engage critically and improve AI-generated content. While AI can enhance efficiency, the study cautions against overdependence, as it may weaken cognitive skills over time.

Key Takeaways:

AI Weakens Critical Thinking: Workers relying heavily on AI became less engaged and struggled to think independently.
Reduced Creativity: AI users generated more homogenous results compared to those working without AI assistance.
Over-Reliance Risk: While AI can improve efficiency, blindly trusting it may lead to cognitive decline and poor decision-making.

(Source: Gizmodo)

Altman Dismisses Musk’s OpenAI Takeover Bid as a ‘Disruption Tactic’

OpenAI CEO Sam Altman has dismissed Elon Musk’s $97.4 billion takeover bid as a “tactic to mess with us,” asserting that the nonprofit controlling OpenAI is not for sale. While Musk’s lawyer claimed the offer was sent to OpenAI’s outside counsel, Altman stated that the board had not officially received or reviewed it but planned to reject it. Musk, who co-founded OpenAI in 2015 before leaving over strategic disagreements, has since launched his own AI company, xAI. The bid comes as OpenAI seeks $40 billion in funding to transition into a for-profit entity, raising legal questions about how nonprofit assets are valued in the shift.

Key Takeaways:

Altman Rejects Musk’s Bid: OpenAI’s CEO dismissed Musk’s $97.4 billion takeover offer as a disruption tactic, insisting the company is not for sale.
Nonprofit to For-Profit Transition: OpenAI’s planned shift to a for-profit model is under legal scrutiny to ensure fair valuation of its nonprofit assets.
Musk’s AI Ambitions: Having left OpenAI, Musk now leads xAI and remains a key player in the AI industry, further complicating his takeover attempt.

(Source: Reuters)

Waterloo Researchers Develop Sustainable Graphene Ink for Industry & Environment

Researchers at the University of Waterloo have developed an eco-friendly, 3D-printable graphene ink that could revolutionize applications in healthcare, industry, and environmental science. Unlike traditional graphene powders, which are difficult to manipulate, this water-based ink maintains conductivity without requiring chemical additives or solvents.

Key Takeaways:

Breakthrough in Graphene Printing: Researchers created a 3D-printable, eco-friendly graphene ink that maintains conductivity without chemical additives.
Wide Applications: The ink could be used for wearable sensors, lightweight automotive parts, printed electronics, and environmental cleanup.

(Source: University of Waterloo)

Author: Malik Datardina, CPA, CA, CISA. Malik works at Auvenir as a Sr. AI Product Manager 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.

Friday, February 7, 2025

The AI Battle Heats Up: Research, Regulation, and Disruption + Guidance on How to Install DeepSeek on Your Laptop!

UWCISA Blog · UWCISA Feb 7, 2025: The AI Battle Heats Up - Research, Regulation, and Disruption

How do you use DeepSeek on your laptop? Check out this video!

In this video, David provides step-by-step guidance on installing LM Studio and DeepSeekR1. The full 400GB model likely won’t run on your laptop (it didn’t on mine), so you’ll need a distilled model. This smaller version is more manageable and easier to use. (See the next article for WSJ’s analysis of distillation).

AI Distillation Explained: How Smaller Labs Are Challenging Big Tech

AI distillation is emerging as a major concern for big tech companies, as it allows smaller AI labs to create powerful models at a fraction of the cost. The technique involves using outputs from advanced AI models (like OpenAI’s GPT) to train cheaper, smaller models that perform nearly as well. Chinese AI startup DeepSeek has been accused of distilling OpenAI’s models, potentially reducing the value of OpenAI’s proprietary technology.

AI Distillation Threatens Big Tech – Smaller AI labs can now replicate powerful AI models cheaply, reducing the competitive advantage of Google, OpenAI, and Meta.
DeepSeek Accused of Distillation – OpenAI suspects DeepSeek used ChatGPT’s outputs to train its own models.
Billions vs. Millions – While big tech spends billions, companies like DeepSeek are proving AI can be developed for far less.

Source: WSJ

AI Takes Over Research: OpenAI’s Deep Research Automates Knowledge Work

OpenAI has launched Deep Research, an AI-powered agent designed to automate and streamline research tasks. Built on an optimized version of the o3 model, the tool can independently gather, analyze, and synthesize vast amounts of web data into a structured report within 5 to 30 minutes. Deep Research is particularly beneficial for professionals in finance, science, policy, and engineering, who require in-depth, niche information. The reports include clear citations and reasoning breakdowns, allowing users to verify accuracy. While OpenAI claims that Deep Research hallucinates less than previous models, it still requires human oversight. The tool is currently available only to ChatGPT Pro users ($200/month), with plans to expand access to other tiers. OpenAI's move comes amid growing competition, particularly from Google's Gemini Deep Research and Microsoft's Think Deeper features.

AI-Powered Research Automation – Deep Research can generate structured research reports independently, reducing hours of work to minutes.
Targeted at Professionals – Designed for experts in finance, science, and policy who need reliable, high-quality research.
Limited Access & Cost – Available only to ChatGPT Pro users at $200/month, but OpenAI plans to expand access over time.

Source: ZDNet

DeepSeek Crackdown: New US Law Could Mean Prison for Users

A newly proposed US law could impose harsh penalties on individuals and businesses using DeepSeek, a Chinese AI chatbot that recently surged in popularity. Introduced by Senator Josh Hawley, the bill aims to block AI technology from China by prohibiting US individuals and companies from engaging with Chinese-developed AI models. The legislation doesn't mention DeepSeek by name, but its release coincided with the app becoming the most popular AI tool in the US, leading to concerns about national security and data privacy. Those violating the law could face up to 20 years in prison or fines of $1 million for individuals and $100 million for businesses. The US Navy and NASA have already banned DeepSeek on government devices, and Texas became the first state to restrict its use.

Proposed Ban on Chinese AI – A new law aims to block US individuals and businesses from using Chinese-developed AI models like DeepSeek.
Severe Legal Consequences – Violations could lead to 20 years in prison or fines of up to $100 million for businesses.
Security & Privacy Concerns – DeepSeek stores data in China, raising fears over surveillance and national security risks.

For the full text of the bill, see here.

Source: Yahoo Finance

Musk’s DOGE Is Building an AI Chatbot for the US Government

Elon Musk’s Department of Government Efficiency (DOGE) is developing GSAi, a custom AI chatbot for the US General Services Administration (GSA) as part of President Donald Trump’s AI-first agenda. The chatbot aims to boost productivity for GSA employees by automating tasks like managing government contracts, analyzing procurement data, and drafting memos. The project was initially considering Google’s Gemini, but Musk’s team opted for an in-house AI system instead. DOGE’s broader AI initiatives are focused on cutting government costs, but have sparked controversy, with critics arguing they lack transparency and security reviews. While Musk’s push aligns with Trump’s goal of US AI dominance, some federal employees and civil rights groups worry about the rapid, unchecked adoption of AI in government operations.

Musk’s Government AI Chatbot – DOGE is building GSAi, an AI assistant for the General Services Administration to streamline government tasks.
Part of Trump’s AI-First Agenda – The project aligns with Trump’s goal of making the US a global leader in AI and reducing government costs.
Controversy & Security Concerns – Critics warn about lack of oversight, while employees worry about AI’s impact on government transparency.

Source: Wired

Is Amazon Overspending? AI Race Heats Up with $100B Investment

Amazon has announced plans to spend $100 billion in capital expenditures in 2025, largely focused on AI infrastructure. This is a significant increase from $83 billion in 2024 and aligns with Amazon’s strategy to compete with AI leaders like OpenAI, Google, and Microsoft. The company is investing heavily in data centers, networking hardware, and AI chips to support AWS cloud AI services. CEO Andy Jassy emphasized that AI represents a "once-in-a-lifetime business opportunity", reassuring investors that this spending will drive long-term growth. However, skepticism is rising in the tech industry following the rapid and low-cost success of Chinese AI startup DeepSeek, which developed a competitive AI model for under $6 million. This has raised questions about whether big tech's massive AI spending is truly necessary.

Amazon’s $100B AI Investment – The company is making one of its largest-ever AI investments, focusing on cloud infrastructure and AI development.
Race Against Competitors – Amazon is competing with Google, Microsoft, and OpenAI, all of whom are also spending tens of billions on AI.
DeepSeek Disrupts AI Economics – The low-cost success of DeepSeek’s AI raises concerns about whether such massive AI investments are sustainable.

Source: CNBC