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Mobile Phone Rollout Is an Instructive Comparison to AI

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In 2007, Steve Jobs audaciously said, “iPhone is a revolutionary and magical product that is five years ahead of any other mobile phone.” The response was a chorus of pessimism from competitors and mainstream media that Apple would never come close to its goal of selling 10 million phones in 2008.

Early on, most enterprise leaders failed to grasp the magnitude of the Mobile Wave on their customers and employees. They focused only on “building an app” rather than transforming their operating and business models to fully unlock the mobile opportunity. Despite their massive investment, users abandoned two-thirds of mobile apps after the first 30 days. Companies that were slow to see mobile as an innovation opportunity versus simply as another communication channel became laggards or roadkill in their respective industries.

Fast forward to 2021, when OpenAI CEO Sam Altman made a similarly audacious statement about AI: “This technological revolution is unstoppable. This revolution will create phenomenal wealth. The price of many kinds of labor (which drives the costs of goods and services) will fall toward zero once sufficiently powerful AI joins the workforce.”

The AI Wave is growing fast. Billions of people globally are using foundation models like ChatGPT, Claude, Gemini and Llama, along with a sprawling number of vertical generative AI (GenAI) applications. Many enterprises have leaned into this new wave, with over 70% using GenAI in their enterprises; however, just 15% are achieving real business impact at scale. Sound familiar?

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What can enterprises learn from the Mobile Wave that might help them avoid the same challenges in achieving real transformation in the AI Wave? Let’s start by looking at the similarities and differences between the two waves.

What do the AI and Mobile waves have in common?

Apple blew away its goal by selling 13 million phones in 2008. It has since sold 2.3 billion iPhones, created the app store model to democratize app innovation and completely transformed how we communicate, interact and consume content. Its intuitive interface, coupled with a powerful computing platform, captivated users across the globe.

Likewise, GenAI, the latest AI technology, offers unprecedented new capabilities that can create content, conduct analyses and allow humans to interact with machines in more natural ways. Ultimately, the technology could make machines as intelligent, or even more so, than humans. Similar to mobile, GenAI will:

Change what is possible. Mobile technology initially changed how consumers and employees did everyday tasks. Eventually, entrepreneurs tapped into the “always on” connectivity to deliver new services (e.g., real-time fitness feedback) and change business models. AI companies like Humane and Rabbit are creating personal AI devices (PADs) that are helping us envision a future of virtual assistants and agents accessed via natural language. Just like with mobile, innovative products and business models will follow.

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Challenge the status quo. Smartphones displaced many consumer devices, including home phones and cameras, undermining seemingly strong competitive advantages in other industries. GenAI could be even more disruptive as it takes on advice- or language-based services, content creation and analysis. Google is already disrupting its own business model as it replaces search results with AI-generated answers. A single virtual assistant (e.g., Apple Intelligence) may replace many apps.

Devour data to create relevant and extraordinary experiences. With user permission, smartphones gave brands (or apps) users’ location, elevation, movement and more. Smart algorithms enabled them to teach people to dance or detect the early onset of Alzheimer’s. GenAI’s massive computing power will make these examples seem rudimentary. GenAI can already understand users’ digital behaviors. Ultimately, the models will build a more holistic understanding of users by observing them in the physical world (speech, movement, consumption, etc.). GenAI-fueled services will use these learnings to mimic us, assist us and offer insights that both reduce costs and create new sources of revenue for businesses.

Depend on and exploit infrastructure owned and operated by third parties. The evolution of mobile services depended on massive and ongoing investments in advanced device technology, cloud computing, developer platforms, data centers and cellular networks. Since the iPhone launched, AT&T’s market cap has declined nearly $100 billion to $139 billion while Alphabet’s, Apple’s and Meta’s have grown by hundreds of millions to $2 trillion, $3 trillion and $1 trillion, respectively. So, too, will GenAI. With $200 billion expected to be invested in GenAI by 2025, the major infrastructure and platform players will be under pressure to recover their investment under similar pricing pressure that comes with assets perceived as commodities.

Create new business opportunities and revenue for third parties. Apple has paid out more than $320 billion to third-party developers since the launch of its app store. In 2023, Uber generated more than $38 billion in annual revenue. IDC forecasts that enterprises invested more than $19.4 billion in GenAI solutions in 2023 and expect it to double in 2024, focused on both efficiency gains and new revenue streams. Questions still remain about the uptake speed of GenAI solutions and what existing services they will ultimately displace.

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How do the AI and Mobile waves differ?

AI’s innate ability to improve itself, along with growing regulatory scrutiny, will create a non-linear, unpredictable trajectory unlike mobile’s steady rise. GenAI’s impact will be different because:

AI consumer adoption will be faster as consumers don’t need to buy new devices. Mobile’s growth initially depended on consumers upgrading their smartphones every 18 to 24 months as well as the build-out of progressively more capable networks or infrastructure. No one was ready for the Internet to be everywhere. Today, they are. Most services are fundamentally digital — if they weren’t pre-2020, they are now. While hardware manufacturers are building their next generation of devices with local large language models (LLMs), most of the massive computing will be done in the cloud, which means consumers can start with the devices they already own.

Data is essential, but users have more privacy concerns, as do regulators. Crafting relevant, convenient and personalized experiences depends heavily on user data. Tech giants burned proverbial bridges with consumers and regulators while failing to respect consumer privacy. While Europe’s General Data Protection Regulation (GDPR) did not come into effect until 2018 (Google was founded in 1998 and Facebook in 2004), Europe’s AI Act went into effect on August 1 of this year, setting a high bar for new and existing models. Meanwhile, large media companies such as The New York Times are suing the LLM creators (e.g., OpenAI) for training their models on their content without permission. Enterprises are also beginning to protect their own data and content by opting out of sharing it for training or quality purposes with those AI model owners.

The pace of change will be even faster as AI will operate autonomously. Humans have built mobile and digital experiences to date. As AI capabilities evolve towards general artificial intelligence or AGI (matches human intelligence) and Super AI (exceeds human intelligence), these “tools” will start to generate their own experiences and no longer depend on human labor. Agents are beginning to self-correct and work together. Capabilities are progressing quickly despite the need for resources like GPUs, power, data and human training, as well as ethical, safety and regulatory concerns.

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Customer and enterprise acquisition costs will be higher for new app entrants. Customer acquisition is difficult. An existing installed base or billing relationship gives companies a head start for at least two reasons. First, GenAI will initially augment existing services. Think of Siri (i.e., Apple Intelligence) or Microsoft Copilot for employees. Second, applications will need history and data (i.e., long-term relationships) about individuals to evolve into true virtual assistants. The more an entity or AI-based service knows about a human, the more it can anticipate needs and deliver contextual or personalized experiences. Doing so ultimately increases switching costs.

Factors outside of the control of LLM makers will constrain growth. Brands building mobile experiences have always faced business model or capability constraints of the mobile ecosystem. LLMs face even more hurdles. First, advancing models requires more training data or content. While LLMs can generate synthetic data, the next leaps forward depend on content (e.g., video) and physical world data (e.g., chemistry or nature) that isn’t available. Next, there are physical limitations, including access to GPUs for training or the electricity, water and human talent required to train the models. Finally, government regulators are already nervous about not only the use of consumer data but also the ethical, controllable or known outcomes of these models.

Five steps for leaders to navigate the AI wave

Reflecting on the lessons of the past from the Mobile Wave, what can enterprises do differently to avoid the pitfalls of the AI Wave? Here are five key steps leaders can act on today.

  • Don’t underestimate the amount of change required in your organization, business and operating model. Just as winners in the Mobile Wave were those that innovated well beyond “building an app,” winners in the AI Wave will be those that focus on transforming products, services, experiences and ways of working. Don’t bring yesterday’s thinking into your future AI-first business.
  • Empower your employees, or they will innovate around you. Chief information officers battled to keep iPhones from popping up in their businesses until they realized they could no longer fend off a better experience. “Bring your own device” (BYOD) became the new enterprise model as BlackBerrys waned and security and controls improved for managing employees’ personal devices. Companies must now embrace “Bring your own AI” (BYOAI) with the appropriate controls to allow employees to use the latest GenAI tools for productivity and innovation while protecting enterprise data.
  • Get your data strategy and infrastructure ready to move at the same speed as AI. Data will be the oxygen that powers new AI-driven experiences and operations. This will include both structured and unstructured data or content to train and optimize new GenAI-based solutions. The ability to collect, clean, transform and expose data to innovators across your business with the right security, privacy and controls will be fundamental to staying ahead of this next wave. This includes setting clear data-sharing policies for employees and third parties vital for improving GenAI models; for example, Figma gives users the option to share or not share their data when using its new GenAI features.
  • Build a culture of accountability around AI solutions to innovate responsibly. Your customers and employees will depend upon accurate and ethical outputs of GenAI applications. Creating and communicating a responsible AI policy that fits your company’s strategy and values is an essential first step. Building a sense of co-creation and ownership for employees involved in AI innovation will also be critical. Everyone working with AI needs to understand the immense benefits along with the real risks (hallucinations, data security, copyright infringement, etc.) in creating new AI solutions for internal and external users. If you create it using AI, you are accountable for the results.
  • Define your own metrics for “ROAI” and use them early. Too many companies are plunging into GenAI experimentation with little to no sense of how they expect to measure real business impact. While it’s important to do pilots to learn, you should invest with an eye toward real business impact. Having your own definition of “Return on AI” (ROAI) will help you better direct your investments across the vast number of AI opportunities.

Like mobile, GenAI brings new superpowers to the end-user and has the potential to drastically transform how companies operate and deliver value to customers. Capitalizing on lessons from the Mobile Wave can only make us more prepared for what’s to come.

[Knowledge at Wharton first published this piece.]

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The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy.

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Civil Liberties at Risk Under Vietnam’s Tô Lâm

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On May 25, 2023, a Vietnamese court in Danang sentenced 39-year-old noodle vendor Bui Tuan Lam to six years in prison for posting an online clip deemed anti-government propaganda. Detained since 2021, Lam was isolated from his wife and children for two years before his trial drew international attention for its bizarre background and questionable legality. The dangerous video in question? A TikTok-style parody video mocking then-Minister of Public Security Tô Lâm’s extravagant culinary selection at a steakhouse in London.

One year into the food vendor’s sentence, now-President Tô Lâm’s political fortunes changed dramatically. On August 3, the former top security official was unanimously elected as Vietnam’s next Communist Party General Secretary, the most powerful position in the country. It was the culmination of his meteoric political rise, facilitated by the death of his mentor and longtime party boss Nguyen Phu Trong, in July. Pledging to build on his predecessor’s legacy, Tô Lâm made it clear that he will continue prioritizing the anti-corruption policies and security measures that defined his tenure at the Ministry of Public Security. 

However, as Bui Tuan Lam and the other 160 Vietnamese political prisoners have come to realize, Tô Lâm’s extrajudicial definition of a security threat includes public dissent, civil liberties, and even lighthearted comedy. 

Born on July 10, 1954, Tô Lâm has always prized security. After graduating from the People’s Security Academy in 1979, he held various law enforcement roles until his elevation to the Ministry of Public Security in 2016. There, he defined himself as an excellent political enforcer, leading an impressive anti-corruption campaign under Trong’s direction. Together, Lâm and Trong’s “Blazing Furnace” campaign targeted over 20,000 government officials in 2023, a dramatic increase from previous efforts. 

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“Tô Lâm was appointed one of five deputy chairmen of the Central Steering on Anti-Corruption that was the spearhead of Trong’s blazing furnace campaign,” Carl Thayer, an emeritus professor of politics at the University of New South Wales, told me. “As Minister of Public Security, Tô Lâm was also responsible for the harassment, intimidation, arrest and imprisonment of political and civil society activists.”

To General Secretary Trong, Tô Lâm’s role in Hanoi as an enforcer quickly became apparent. In Lâm’s first week at the Ministry, the former law enforcement officer oversaw the brutal suppression of protests against Formosa Ha Tinh Steel, the company responsible for arguably the worst environmental disaster in Vietnamese history. 41 protesters were arrested, including activist Hoang Duc Binh, who was sentenced to 14 years in prison for advocating on behalf of local fishermen affected by the disaster. 

Two years later, Tô Lâm’s Ministry of Public Security significantly expanded government surveillance powers. The Law on Cyber Security, passed by the National Assembly in 2018, required telecommunication providers to record and store their users’ private data, including “full name, date of birth, place of birth, nationality, profession, position, place of residence, contact address.” Despite widespread condemnation and international outrage, the law continues to undermine Vietnamese civil liberties and online privacy. 

It’s not just democratic organizers and human rights advocates who have been targeted under Tô Lâm’s security regime. Le Trong Hung, a former middle school teacher, was arrested in 2021 after challenging General Secretary Nguyen Phu Trong to a nationally televised debate. Another teacher, 43-year-old Bui Van Thuan, was also arrested that same year and sentenced to nearly a decade in prison for publicly criticizing the Communist Party. Even Lâm’s own police officers, such as Captain Le Chi Thanh, have been prosecuted for exposing corruption within the Ministry of Public Security. 

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Tô Lâm’s self-styled campaign to root out “corruption” and enhance state security also coincidentally targeted political opponents within his own party. “Tô Lâm used the Investigative Police Department of the Ministry of Public Security to gather evidence of corruption by the President Vo Van Thuong, the Chairman of the National Assembly Vuong Dinh Hue, and the Permanent member of the party Secretariat Truong Thi Mai,” says Thayer. “These were the three most powerful figures in the leadership under General Secretary Trong. All were pressured into resigning in turn.”

Since taking office in August, General Secretary Lâm has moved quickly to solidify his position on the international stage. Last week, the Vietnamese leader visited Beijing to meet with China’s Xi Jinping, marking his first official overseas trip. The visit came nearly a year after Vietnam upgraded its diplomatic relations with both Japan and the United States. However, this continuation of former President Trong’s “Bamboo Diplomacy” should not be interpreted as a sign that Lâm intends to govern as a carbon copy of his mentor. Tô Lâm’s particularly abysmal human rights record distinguishes him as a unique threat to civil liberties and basic freedoms, further cementing a decade-long trend of increasing censorship and political persecution in Vietnam.

[Ting Cui edited this piece.]

The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy.

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Record Indian gold imports help drive bullion’s rally

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A surge in demand among Indian consumers for gold jewellery and bars after a recent cut to tariffs is helping to drive global bullion prices to a series of fresh highs.

India’s gold imports hit their highest level on record by dollar value in August at $10.06bn, according to government data released Tuesday. That implies roughly 131 tonnes of bullion imports, the sixth-highest total on record by volume, according to a preliminary estimate from consultancy Metals Focus. 

The high gold price — which is up by one-quarter since the start of the year — has traditionally deterred price-sensitive Asian buyers, with Indians reducing demand for gold jewellery in response.

But the Indian government cut import duties on gold by 9 percentage points at the end of July, triggering a renewed surge in demand in the world’s second-largest buyer of gold.

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“The impact of the duty cut was unprecedented, it was incredible,” said Philip Newman, managing director of Metals Focus in London. “It really brought consumers in.”

The tariff cut has been a boon for Indian jewellery stores such as MK Jewels in the upmarket Mumbai suburb of Bandra West, where director Ram Raimalani said “demand has been fantastic”.

Customers were packed into the store browsing for necklaces and bangles on a recent afternoon, and Raimalani is expecting an annual sales boost of as much as 40 per cent during the multi-month festival and wedding season that runs from September to February. 

Raimalani praised India’s government and “Modi ji”, an honorific for Prime Minister Narendra Modi, for reducing gold duties.

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Column chart of tariff cut triggers import leap last month showing Indian gold imports

Expectations of rapid interest rate cuts by the US Federal Reserve have been the main driver of gold’s huge rally this year, according to analysts. Lower borrowing costs increase the attraction of assets with no yield, such as bullion, and are also likely to weigh on the dollar, in which gold is denominated.

The Fed cut rates by half a per cent on Wednesday, pushing gold to yet another record high, just below $2,600. 

But strong demand for gold jewellery and bars, as well as buying by central banks, have also helped buoy prices. 

India accounted for about a third of gold jewellery demand last year, and has become the world’s second-largest bar and coin market, according to data from the World Gold Council, an industry body.

However, that demand has meant that domestic gold prices in India are quickly catching up to the level they were at before the tariff duty cut, according to Harshal Barot, senior research consultant at Metals Focus. 

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“That entire benefit [of the tariff cut] has kind of vanished,” said Barot. “Now that prices are going up again, we will have to see if consumers still buy as usual.”

Jewellery buying had been flagging before the cut in import duty, with demand in India in the first half of 2024 at its lowest level since 2020, according to the World Gold Council.

India’s central bank has also been on a gold buying spree, adding 42 tonnes of gold to its reserves during the first seven months of the year — more than double its purchases for the whole of 2023. 

A person familiar with the Reserve Bank of India’s thinking called the gold purchases a “routine” part of its foreign exchange reserve and currency stability management.

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Line chart of  showing Rate cut expectations send gold to record high

In China, the world’s biggest physical buyer of gold, high prices have meant fewer jewellery sales, but more sales of gold bars and coins, which surged 62 per cent in the second quarter compared with a year earlier.

“We observed strong positive correlation between gold investment demand and the gold price,” wrote the World Gold Council, referring to China.

All of this has helped support the physical market and mitigate the impact that high prices can have in eroding demand. 

“It acts as a stable foundation for demand,” said Paul Wong, a market strategist at Sprott Asset Management. “In parts of Asia, gold is readily convertible into currency,” making it popular for savings, he said.

Western investor demand has also been a big factor in bullion’s rally, with a net $7.6bn flowing into gold-backed exchange traded funds over the past four months. 

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After hitting a fresh high on Wednesday, analysts warn there could be a correction in the gold price.

“When you have this scale of anticipation [of rate cuts], for this long, there is room for disappointment,” said Adrian Ash, London-based director of research at BullionVault, an online gold marketplace. “I think there is scope for a pullback in precious alongside other assets.”

Whether or not gold pulls back from its record highs, Indian jewellery demand looks set to remain strong through the coming wedding season, according to MK Jewels’ Raimalani.

Soaring prices of bullion have been no deterrent to his customers, he added. “Indians are the happiest when prices go high because they already own so much gold. It’s like an investment.”

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‘Doomsday’ Glacier Is Set to Melt Faster

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‘Doomsday’ Glacier Is Set to Melt Faster

Tidal action on the underside of the Thwaites Glacier in the Antarctic will “inexorably” accelerate melting this century, according to new research by British and American scientists. The researchers warn the faster melting could destabilize the entire West Antarctic ice sheet, leading to its eventual collapse.

The massive glacier—which is roughly the size of Florida—is of particular interest to scientists because of the rapid speed at which it is changing and the impact its loss would have on sea levels (the reason for its “Doomsday” moniker). It also acts as an anchor holding back the West Antarctic ice sheet.

Warmed ocean water melts doomsday glacier faster
Yasin Demirci—Anadolu/Getty Images

More than 2 kilometers (1.2 miles) thick in places, Thwaites has been likened to a cork in a bottle. Were it to collapse, sea levels would rise by 65 centimeters (26 inches). That’s already a significant amount, given oceans are currently rising 4.6 millimeters a year. But if it led to the eventual loss of the entire ice sheet, sea levels would rise 3.3 meters.

While some computer models suggest reductions in greenhouse gas emissions under the 2015 Paris Agreement may mitigate the glacier’s retreat, the outlook for the glacier remains “grim,” according to a report by the International Thwaites Glacier Collaboration (ITGC), a project that includes researchers from the British Antarctic Survey, the U.S. National Science Foundation and the U.K.’s Natural Environment Research Council.

Thwaites has been retreating for more than 80 years but that process has accelerated in the past 30, Rob Larter, a marine geophysicist who contributed to the research, said in a news release. “Our findings indicate it is set to retreat further and faster.” Other dynamics that aren’t currently incorporated into large-scale models could speed up its demise, the new research shows. 

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Using a torpedo-shaped robot, scientists determined that the underside of Thwaites is insulated by a thin layer of cold water. However, in areas where the parts of the glacier lift off the seabed and the ice begins to float, tidal action is pumping warmer sea water, at high pressure, as far as 10 kilometers under the ice. The process is disrupting that insulating layer and will likely significantly speed up how fast the grounding zone—the area where the glacier sits on the seabed—retreats.

A similar process has been observed on glaciers in Greenland.

The group also flagged a worst-case scenario in which 100-meter-or-higher ice cliffs at the front of Thwaites are formed and then rapidly calve off icebergs, causing runaway glacial retreat that could raise sea levels by tens of centimeters in this century. However, the researchers said it’s too early to know if such scenarios are likely.

A key unanswered question is whether the loss of Thwaites Glacier is already irreversible. Heavy snowfalls, for example, regularly occur in the Antarctic and help replenish ice loss, Michelle Maclennan, a climate scientist with the University of Colorado at Boulder, explained during a news briefing. “The problem though is that we have this imbalance: There is more ice loss occurring than snowfall can compensate for,” she said. 

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Increased moisture in the planet’s atmosphere, caused by global warming evaporating ocean waters, could result in more Antarctic snow—at least for a while. At a certain point, though, that’s expected to switch over to rain and surface melting on the ice, creating a situation where the glacier is melting from above and below. How fast that happens depends in part on nations’ progress to slow climate change.

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David Lammy seeks emergency boost to aid cash to offset rising cost of migrant hotels

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Britain’s foreign secretary David Lammy is pushing for an emergency top-up to development spending as ballooning costs of supporting asylum seekers threaten to drain overseas aid to its lowest level since 2007.

The UK government spent £4.3bn hosting asylum seekers and refugees in Britain in the last financial year, more than a quarter of its £15.4bn overseas aid budget, according to official data. This more than consumed the £2.5bn increases in the aid budget scheduled between 2022 and 2024 by former Conservative chancellor Jeremy Hunt.

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People familiar with Lammy’s thinking say he fears that if Rachel Reeves, the chancellor, resists calls to at least match Hunt’s offer, the aid budget will be further eviscerated, undermining the government’s ambitions on the global stage.

Currently, the housing of asylum seekers in hotels is controlled by the Home Office but largely paid for out of the aid budget, a set-up introduced in 2010 when spending on the programme was relatively modest.

In the longer term, development agencies and some Foreign Office officials want the costs capped or paid for by the Home Office itself.

However, such a move would be politically fraught, the people said, as it would require billions of pounds of extra funding for the Home Office at a time the government is preparing widespread cuts across departments.

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Sir Keir Starmer, the prime minister, is due to attend a string of upcoming international events, starting with the UN general assembly this month, then a Commonwealth summit in Samoa, a G20 meeting in Brazil, and COP-29 climate talks in Azerbaijan later this autumn.

International partners will be looking at these meetings for signs that the change of government in the UK marks a change in direction on development.

Britain’s leading role was eroded by Rishi Sunak after he cut the previously ringfenced spending from 0.7 per cent of gross national income to 0.5 per cent when he was chancellor in 2020.

“When he turns up at the UN next week and the G20 and COP a few weeks later, the PM has a unique opportunity to reintroduce the UK under Labour as a trustworthy partner that sees the opportunity of rebooting and reinvesting in a reformed fairer international financial system,” said Jamie Drummond, co-founder of aid advocacy group One.

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“But to be that trusted partner you need to be an intentional investor — not an accidental cutter.”

Speaking on Tuesday in a speech outlining UK ambitions to regain a leading role in the global response to climate change, Lammy said the government wanted to get back to spending 0.7 per cent of GNI on overseas aid but that it could not be done overnight.   

“Part of the reason the funding has not been there is because climate has driven a migration crisis,” he said. “We have ended up in this place where we made a choice to spend development aid on housing people across the country and having a huge accommodation and hotel bill as a consequence,” he said.

Under OECD rules, some money spent in-country on support for refugees and asylum seekers can be classified as aid because it constitutes a form of humanitarian assistance.

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But the amount the UK has been spending on refugees from its aid budget has shot up from an average of £20mn a year between 2009-2013 to £4.3bn last year, far more than any other OECD donor country, according to Bond, the network of NGOs working in international development.

Spending per refugee from the aid budget has also risen from an average of £1,000 a year in 2009-2013 to around £21,500 in 2021, largely as a result of the use of hotels to accommodate asylum seekers.

The Independent Commission for Aid Impact watchdog argues that the Home Office has had little incentive to manage the funds carefully because they come from a different department’s budget.

In her July 29 speech outlining the dire fiscal straits that Labour inherited from the previous Conservative government, Reeves projected the cost of the asylum system would rise to £6.4bn this year.

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Labour was hoping to cut this by at least £800mn, she said, by ending plans to deport migrants to Rwanda. A Home Office official said the government was also ensuring that asylum claims were dealt with faster and those ineligible deported quickly.

But the Foreign Office projects that on current trends, overseas aid as a proportion of UK income (when asylum costs are factored in) will drop to 0.35 per cent of national income by 2028.

Without emergency funding to plug the immediate cost of housing tens of thousands of migrants in hotels, that will happen as soon as this year, according to Bond, bringing overseas aid levels to their lowest as a proportion of national income, since 2007.

The Foreign, Commonwealth and Development Office said: “The UK’s future [official development assistance] budget will be announced at the Budget. We would not comment on speculation.”

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AI translation now ‘good enough’ for Economist to deploy

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AI translation now 'good enough' for Economist to deploy

The Economist has deployed AI-translated content on its budget-friendly “snack-sized” app Espresso after deciding the technology had reached the “good enough” mark.

Ludwig Siegele, senior editor for AI initiatives at The Economist, told Press Gazette that AI translation will never be a “solved problem”, especially in journalism because it is difficult to translate well due to its cultural specificities.

However he said it has reached the point where it is good enough to have introduced AI-powered, in-app translations in French, German, Mandarin and Spanish on The Economist’s “bite-sized”, cut-price app Espresso (which has just over 20,000 subscribers).

Espresso has also just been made free to high school and university students aged 16 and older globally as part of a project by The Economist to make its journalism more accessible to audiences around the world.

Siegele said that amid “lots of hype” about AI, the questions to ask are: “What is it good for? Does it work? And does it work with what we’re trying to do?”

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He added that the project to make The Economist’s content “more accessible to more people” via Espresso was a “good point to start”.

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“The big challenge of AI is the technology, at least for us, is not good enough,” he continued. “It’s interesting, but to really develop a product, I think in many cases, it’s not good enough yet. But in that case, it worked.

“I wouldn’t say that translation is a solved problem, it is never going to be a solved problem, especially in journalism, because journalism is really difficult to translate. But it’s good enough for that type of content.”

The Economist is using AI translation tool DeepL alongside its own tech on the backend.

“It’s quite complicated,” Siegele said. “The translation is the least of it at this point. The translation isn’t perfect. If you look at it closely it has its quirks, but it’s pretty good. And we’re working on a kind of second workflow which makes it even better.”

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The AI-translated text is not edited by humans because, Siegele said, the “workflow is so tight” on Espresso which updates around 20 times a day.

“There is no natural thing where we can say ‘okay, now everything is done. Let’s translate, and let’s look at the translations and make sure they’re perfect’. That doesn’t work… The only thing we can do is, if it’s really embarrassing, we’ll take it down and the next version in 20 minutes will be better.”

One embarrassing example, Siegele admitted, is that the tool turned German Chancellor Olaf Scholz into a woman.

But Siegele said a French reader has already got in touch to say: “I don’t read English. This is great. Finally, I can read The Economist without having to put it into Google Translate and get bad translations.”

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The Economist’s AI-translated social videos

The Economist simultaneously launched AI-translated videos on its social platforms in the same four languages.

The videos are all a maximum of 90 seconds meaning it is not too much work to check them – crucial as, unlike the Espresso article translations, they are edited by humans (native language speakers working for The Economist) taking about 15 minutes per video.

For the videos The Economist is using AI video tool Hey Gen. Siegele said: “The way that works is you give them the original video and they do a provisional translation and then you can proofread the translation. So whereas the translations for the app are basically automatic – I mean, we can take them down and we will be able to change them, but at this point, they’re completely automatic – videos are proofread, and so in this way we can make sure that the translations are really good.”

In addition they are using “voice clones” which means journalists who speak in a video have some snippets of themselves given to Hey Gen to build and that is used to create the finished product.

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The voice clones are not essential, Siegele explained, as translations can be done automatically regardless. Journalists can opt out of having their voices used in this way, and any data stored will be deleted if the employee leaves The Economist. But the clones do mean the quality is “much better”.

They have a labelling system for the app articles and videos that can show they are “AI translated” or “AI transformed”. But, Siegele said, they are “not going to have a long list of AI things we may have used to build this article for brainstorming or fact checking or whatever, because in the end it’s like a tool, it’s like Google search. We are still responsible, and there’s almost always a human except for edge cases like the Espresso translations or with podcast transcripts…”

Economist ‘will be strategic’ when choosing how to roll out AI

Asked whether the text translation could be rolled out to more Economist products, Siegele said: “That’s of course a goal but it remains to be seen.”

He said that although translation for Espresso is automated, it would not be the goal to do the same throughout The Economist.

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He also said they still have to find out if people are “actually interested” and if they can “develop a translation engine that is good enough”.

“But I don’t think we will become a multi-linguistic, multi-language publication anytime soon. We will be much more strategic with what we what we translate… But I think there is globally a lot of demand for good journalism, and if the technology makes it possible, why not expand the access to our content?

“If it’s not too expensive – and it was too expensive before. It’s no longer.”

Other ways The Economist is experimenting with AI, although they have not yet been implemented, include a style bot and fact-checking.

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Expect to see “some kind of summarisation” of articles, Siegele continued, “which probably will go beyond the five bullet points or three bullet points you increasingly see, because that’s kind of table stakes. People expect that. But there are other ways of doing it”.

He also suggested some kind of chatbot but “not an Economist GPT – that’s difficult and people are not that interested in that. Perhaps more narrow chatbots”. And said versioning, or repurposing articles for different audiences or different languages, could also follow.

“The usual stuff,” Siegele said. “There’s only so many good ideas out there. We’re working on all of them.” But he said he wants colleagues to come up with solutions to their problems rather than him as “the AI guy” imposing things.

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Kentucky sheriff held over fatal shooting of judge in court

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Kentucky sheriff held over fatal shooting of judge in court

A Kentucky sheriff has been arrested after fatally shooting a judge in his chambers, police say.

District Judge Kevin Mullins died at the scene after being shot multiple times in the Letcher County Courthouse, Kentucky State Police said.

Letcher County Sheriff Shawn Stines, 43, has been charged with one count of first-degree murder.

The shooting happened on Thursday after an argument inside the court, police said, but they have not yet revealed a motive.

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Officials said Mullins, 54, was shot multiple times at around 14:00 local time on Thursday at the court in Whitesburg, Kentucky, a small rural town about 150 miles (240km) south-east of Lexington.

Sheriff Stines was arrested at the scene without incident, Kentucky State Police said. They did not reveal the nature of the argument before the shooting.

According to local newspaper the Mountain Eagle, Sheriff Stines walked into the judge’s outer office and told court employees that he needed to speak alone with Mullins.

The two entered the judge’s chambers, closing the door behind them. Those outside heard gun shots, the newspaper reported.

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Sheriff Stines reportedly walked out with his hands up and surrendered to police. He was handcuffed in the courthouse foyer.

The state attorney general, Russell Coleman, said in a post on X, formerly Twitter, that his office “will fully investigate and pursue justice”.

Kentucky State Police spokesman Matt Gayheart told a news conference that the town was shocked by the incident

“This community is small in nature, and we’re all shook,” he said.

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Mr Gayheart said that 50 employees were inside the court building when the shooting occurred.

No-one else was hurt. A school in the area was briefly placed on lockdown.

Kentucky Supreme Court Chief Justice Laurance B VanMeter said he was “shocked by this act of violence”.

Announcing Judge Mullins’ death on social media, Kentucky Governor Andy Beshear said: “There is far too much violence in this world, and I pray there is a path to a better tomorrow.”

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