FTI Consulting News Bytes – 25 October 2024

FTI Consulting News Bytes

In what has been a difficult week for the AIM market, we start by looking at concerns that have risen ahead of Chancellor Rachel Reeves’ Budget Statement. Next, as Salesforce announces the launch of an AI system designed to “forget” the data it processes, we address whether privacy and security are hindering the adoption of AI. Following the announcement that OpenAI has hired an ex-White House official as its first chief economist, we consider the impact of the new appointment at a time when companies are looking to understand developing AI infrastructure. A scientific breakthrough this week then inspires our discussion on the new technology for using DNA genetic code to store data, before we turn our attention to Facebook and Instagram’s new facial recognition tools to combat fake-celebrity-endorsed scams.

This week’s news

Danger of a downward spiral for AIM?

It has been a grisly few weeks for AIM, The Times reports. A report from the Tony Blair Institute for Global Change and Onward stated that AIM is “not fit for purpose,” due to its inability to attract and support tech-driven small companies that could emerge as future leaders. These concerns have been exacerbated by concerns that Rachel Reeves could remove the inheritance tax exemption, which makes owning AIM stocks appealing. Adding fuel to the fire, fashion retailer N Brown has accepted a take-private bid from the Alliance family, citing its negative experiences with AIM as a significant factor in its decision, contributing to the over 80 companies that have delisted from AIM in the last 15 months. Nonetheless, supporters of AIM draw upon the success of the Octopus AIM Inheritance Tax Service fund, which has increased by 177% since its launch in June 2005 through December 2023.

AI that forgets? Meet Salesforce’s new privacy-first tech 

Salesforce has launched a generative AI system that prioritises privacy. City AM reports that the system is designed to “forget” the data it processes through large language models (LLMs). This new technology features digital agents that can handle customer inquiries autonomously, eliminating the need for human intervention. CEO Marc Benioff calls it “the biggest breakthrough” in AI. Recently, we have seen concerns surrounding data privacy and security hindering the adoption of AI. Salesforce claims to have implemented a “trust layer” within its system, ensuring that any data retrieved for context is accessible to the user. The system also operates on a “zero retention” policy, creating “a safer environment” for businesses to utilise generative AI.

OpenAI hires its first chief economist 

This week, OpenAI hired its first chief economist, Aaron Chatterji – formerly the chief economist at the Commerce Department under President Joe Biden and a senior economist in President Barack Obama’s Council of Economic Advisers. In his new role, Chatterji will lead research into AI’s potential effects on economic growth and job creation, according to Reuters. This research will also span the global economic impact of building AI infrastructure and insights on longer-term labour market trends. Whilst tech companies, such as Google and Amazon, have been known to hire chief economists, will OpenAI’s latest appointment inspire other AI companies to follow suit?

Scientists develop DNA technology in data storage breakthrough

Scientists have developed a new technology for using DNA genetic code to store data, boosting the quest for powerful solutions to save ever-growing volumes of digital information more cheaply and sustainably, the Financial Times reports. DNA is seen as a potential salvation for data-dependent economies because it is stable and just one gram of it can theoretically store the equivalent of about 10mn hours of high-definition video. Researchers from US, Chinese, and German institutions have used a simple chemical reaction to mimic the binary system of traditional computers, enabling the imprinting of information onto DNA with good accuracy and much faster than traditional methods. Previous attempts to save information on genetic code have been time-consuming, expensive, and vulnerable to errors.

Facebook and Instagram launch celebrity scam ad crackdown

Facebook and Instagram are testing new facial recognition tools that could help users quickly restore compromised accounts and combat fake-celebrity-endorsed scams. Meta announced its plan to roll out experimental features that can scan a user’s face to verify their identity by comparing it against profile pictures on Facebook and Instagram. The Verge reports that Meta currently uses automated technology like machine learning to detect content that violates its policies but says celeb bait can be difficult to distinguish from legitimate ads. According to Meta, celebrities will need a Facebook or Instagram profile to use the new facial recognition tools, but they’ve shown “promising results” for detection speed and efficacy in early testing with a small group of public figures. 

Top Tweets of the Week 

• Reuters Tech News: Arm Holdings to cancel Qualcomm chip design license, Bloomberg News reports
• Bloomberg Technology: Tesla shares rose after the EV maker topped Wall Street estimates for earnings in the third quarter, reflecting a rebound in demand
• Sifted: In Europe’s largest AI acquisitions to date, Finnish Silo AI was bought by AMD in a $665m cash deal and joined the competition of giants

Number of the week

38% – believe AI’s benefits outweigh its potential risks, according to a new BSI survey. (Technology Magazine)