FTI Consulting News Bytes – 11 August 2023

FTI Consulting News Bytes

Who sang it first? As the popularity of “deepfake” songs continues to grow, we kick off this week taking a look at negotiations in the music industry which could see the introduction of licensing deals designed to ensure artists are paid fairly for the use of their voices and melodies. Next, we look at web conferencing platform Zoom, requesting staff return to the office before examining PayPal’s launch of a stablecoin as it aims to keep up with the growing world of digital assets. We then turn to the U.S. where President Biden has announced a ban on American businesses investing in Chinese firms involved in quantum computing, semiconductors and certain areas of AI. Finally, we look at how robots may in fact be better than humans at completing Captcha tests.

This week’s news

Licensing deals are music to artists’ ears

When Drake heard a “deepfake” song using an AI-generated version of his voice, he called it “the last straw”. Now Google is reportedly negotiating a deal with record label Universal Music Group to license the voices and melodies of artists for AI-generated music, according the Financial Times. Meanwhile, a technology start-up Audoo has teamed up with two rights management organisations to collect royalties for songs played in venues like shops and bars, reports The Times. A device the size of an iPhone will be installed and register when tracks are played in real-time. Music legends Sir Paul McCartney and ABBA’s Bjorn Ulvaeus have both invested in the business.

Staff zoom back to the office

Once synonymous with remote work, Zoom this week called staff back to the office for at least two days a week. Zoom’s valuation peaked at $140 billion during the pandemic but has since fallen 85% as workers have gradually returned to the office, according to the Financial Times. Elsewhere, WeWork, which positioned itself as an option for businesses that require flexible hybrid working arrangements, raised substantial doubt about its ability to stay in business. The CEO blamed the challenging economic environment, which has driven higher member churn and resulted in softer demand than anticipated, reports CNBC.

PayPal’s next chapter is in crypto

In a sign of what could be to come, PayPal this week launched its new cryptocurrency asset stablecoin to complement the growing interest among businesses to transact in digital currency and reduce friction. The new payment system known as PayPal USD (PYUSD) will allow digital assets backed by collateral to track a traditional currency like the U.S. dollar. Stablecoin will allow users to buy or sell cryptocurrency, including when checking out with crypto, and will disclose an exchange rate and any fees for transactions, reports Reuters.

Geopolitical tensions heat up… again

President Biden this week announced a ban on American businesses investing in Chinese firms that are active in quantum computing, advanced semiconductors and certain areas of artificial intelligence, reports the Financial Times. The executive order has been positioned as a necessary step to limit the Chinese military’s access to American technology and capital which currently poses “significant national security risks,” according to Biden. Beijing expressed “serious concern” about the order which it claims is designed to limit its technological progress. U.S. private equity and venture capital firms including Sequoia China, GGV and Coatue, who have invested significantly in Chinese technology in recent years, will now have to notify the Treasury Department of any relevant investments.

I am not a robot

A new study from scientists at the University of California found that automated bots are better and faster than humans at cracking Captcha tests, reports New Scientist. Of the 200 most popular websites, 120 still use Captcha which are designed to block potentially harmful bots by presenting a puzzle that is supposedly straightforward for humans to solve. The study found human participants took between 9-15 seconds to solve a test with an accuracy of about 50-84% while the accuracy of automated bots ranged from 85-100%.

Top Tweets of the Week

• Mark Di Stefano, Media and Technology Correspondent, The Australian Financial Review: Wow ABC managing director David Anderson sends email to staff about culling the public broadcaster’s Twitter accounts. They will keep only: @abcnews @abcsport @ABCChinese @ABCaustralia. All other ABC accounts are being discontinued.
• Ivo Graham, comedian: Hate my phone and the life altering damage it’s already done to my brain, but when i get sent a verification code and it comes straight up on the screen without me having to go to my texts? I don’t mind that.
• Matt Navara, journalist and social media expert: The UK’s Top 50 Biggest Media Companies in the UK (by news media revenue). 1) @RELXHQ : £8.6 billion, 2) @BBC: £5.7 billion, 3) @ITV £3.7 billion, 4) @SkyUK: £2.6 billion, 5) Informa: £2.3 billion

Number of the Week

$5bn  – total value of orders for Nvidia chips by China’s internet giants amid fears of US export controls

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