Artificial intelligence

Amazon commits €10 billion for cloud and logistics expansion in Germany

Amazon announced plans to invest €10 billion ($10.75 billion) in Germany, emphasising the country’s growing importance in cloud computing and retail. The majority of this investment, totalling €8.8 billion, will be allocated by 2026 to expand Amazon Web Services (AWS), particularly focusing on enhancing cloud infrastructure to support AI technologies across Europe.

German Chancellor Olaf Scholz hailed the investment, highlighting its potential to create over 4,000 jobs this year. That move comes amidst Germany’s economic challenges, including an energy crisis and bureaucratic hurdles that have hindered investment.

Amazon’s latest commitment brings its total planned investments in Germany to €17.8 billion, underscoring its long-term strategic focus on the country. Earlier reports indicated AWS’s consideration of multi-billion investments to expand data centres in Italy, further illustrating Amazon’s broader ambitions in Europe’s digital infrastructure sector.

The investment signals Amazon’s confidence in Germany’s business environment and its strategic position in Europe, aiming to bolster AWS’s AI and cloud services capabilities to meet increasing regional demand. That is expected to boost employment and enhance Amazon’s technological footprint in Europe’s largest economy.

IMF calls for new fiscal policies to address AI’s economic and environmental impacts

The International Monetary Fund (IMF) has recommended fiscal policies for governments grappling with the economic impacts of AI, including taxes on excess profits and a levy to address AI-related carbon emissions. In a recent report, the IMF highlighted the rapid advancement of generative AI technologies like ChatGPT, which can simulate human-like text, voices, and images from simple prompts, noting their potential to spread quickly across industries.

One key suggestion from the IMF involves implementing a carbon tax to account for the significant energy consumption of AI servers used in data centres. These servers contribute to global emissions, currently amounting to up to 1.5%. The IMF emphasised the need to factor these environmental costs into the price of AI technologies.

The report also raised concerns about AI’s impact on job markets, predicting potential wage declines as a proportion of national income and increased inequality. It warned that AI could exacerbate job losses across various sectors, affecting white-collar professions such as law and finance and blue-collar jobs in manufacturing and trade.

Why does it matter?

To address these challenges, the IMF proposed measures such as enhancing capital income taxes, including corporation tax and personal income taxes on capital gains. It suggested reconsidering corporate income tax policies to prevent profit shifting and ensure fair taxation across sectors.

Additionally, the IMF recommended policies to support workers affected by AI-driven automation, including extending unemployment insurance and focusing on education and training programs tailored to new technologies. While the report expressed caution about universal basic income due to potential fiscal implications, it acknowledged the need for future considerations if AI disruption intensifies.

Era Dabla-Norris, co-author of the report and deputy director of the IMF’s fiscal affairs department, highlighted the importance of preparing for potential disruptions from AI and designing effective policies to mitigate their impacts on economies and societies.

AI chatbot’s mayoral bid halted by legal and ethical concerns in Wyoming

Victor Miller, 42, has stirred controversy by filing to run for mayor of Cheyenne, Wyoming, using a customised AI chatbot named VIC (virtual integrated citizen). Miller argued that VIC, powered by OpenAI technology, could effectively make political decisions and govern the city. However, OpenAI quickly shut down Miller’s access to their tools for violating policies against AI use in political campaigning.

The emergence of AI in politics underscores ongoing debates about its responsible use as technology outpaces legal and regulatory frameworks. Wyoming Secretary of State Chuck Gray clarified that state law requires candidates to be ‘qualified electors,’ meaning VIC, as an AI bot, does not meet the criteria. Despite this setback, Miller intends to continue promoting VIC’s capabilities using his own ChatGPT account.

Meanwhile, similar AI-driven campaigns have surfaced globally, including in the UK, where another candidate utilises AI models for parliamentary campaigning. Critics, including experts like Jen Golbeck from the University of Maryland, caution that while AI can support decision-making and manage administrative tasks, ultimate governance decisions should remain human-led. Despite the attention these AI candidates attract, observers like David Karpf from George Washington University dismiss them as gimmicks, highlighting the serious nature of elections and the need for informed human leadership.

Miller remains optimistic about the potential for AI candidates to influence politics worldwide. Still, the current consensus suggests that AI’s role in governance should be limited to supportive functions rather than decision-making responsibilities.

New social network app blends AI personas with user interactions

Butterflies, a new social network where humans and AI interact, has launched publicly on iOS and Android after five months in beta. Founded by former Snap engineering manager Vu Tran, the app allows users to create AI personas, called Butterflies, that post, comment, and message like real users. Each Butterfly has unique backstories, opinions, and emotions, enhancing the interaction beyond typical AI chatbots.

Tran developed Butterflies to provide a more creative and substantial AI experience. Unlike other AI chatbots from companies like Meta and Snap, Butterflies aims to integrate AI personas into a traditional social media feed, where AI and human users can engage with each other’s content. The app’s beta phase attracted tens of thousands of users, with some spending hours creating and interacting with hundreds of AI personas.

Butterflies’ unique approach has led to diverse user interactions, from creating alternate universe personas to role-playing in popular fictional settings. Vu Tran believes the app offers a wholesome way to interact with AI, helping people form connections that might be difficult in traditional social settings due to social anxiety or other barriers.

Initially free, Butterflies may introduce a subscription model and brand interactions in the future. Backed by a $4.8 million seed round led by Coatue and other investors, Butterflies aims to expand its functionality and continue to offer a novel way for users to explore AI and social interaction.

London cinema cancels AI-written film premiere after public backlash

A central London cinema has cancelled the premiere of a film written entirely by AI following a public backlash. The Prince Charles Cinema in Soho was set to host the world debut of ‘The Last Screenwriter,’ created by ChatGPT, but concerns about ‘the use of AI in place of a writer’ led to the screening being axed.

In a statement, the cinema explained that customer feedback highlighted significant concerns regarding AI’s role in the arts. The film, directed by Peter Luisi, was marketed as the first feature film written entirely by AI, and its plot centres on a screenwriter who grapples with an AI scriptwriting system that surpasses his abilities.

The cinema stated that the film was intended as an experiment to spark discussion about AI’s impact on the arts. However, the strong negative response from their audience prompted them to cancel the screening, emphasising their commitment to their patrons and the movie industry.

The controversy over AI’s role in the arts reflects broader industry concerns, as seen in last year’s Sag-Aftra strike in Hollywood. The debate continues, with UK MPs now calling for measures to ensure fair compensation for artists whose work is used by AI developers.

AI boosts Bayer’s fight against resistant weeds

Bayer’s crop science division is leveraging AI to combat herbicide-resistant weeds, aiming to speed up the discovery of new solutions. With traditional herbicides losing effectiveness, Bayer urgently needs innovative approaches to help farmers manage these resilient weeds. The company’s Icafolin product, set to launch in Brazil in 2028, will be its first new mode of action herbicide in three decades.

Frank Terhorst, Bayer’s executive vice president of strategy and sustainability, highlighted that AI significantly enhances the efficiency of finding new herbicides by matching weed protein structures with targeted molecules. This AI-driven process allows for the use of vast amounts of data, making it faster and more reliable.

Bob Reiter, head of research and development at Bayer, noted that AI tools have already tripled the number of new modes of action discovered compared to a decade ago. The mentioned technological advancement promises to shorten the timeline for developing effective herbicides, offering a critical advantage in the ongoing fight against crop-destroying weeds.

Report highlights AI’s potential to reduce emissions in the shipping industry

A report published by startup Orca AI on Tuesday revealed AI’s potential impact on the shipping industry. By automating certain tasks, it claims that AI can help reduce deviations on shipping routes and prevent collisions between ships, making the industry more efficient and ecologically friendly.

The startup primarily sells AI products to synthesise real-time information about shipping conditions and recommend more efficient transportation. Much of this data is collected from an AI awareness system that can recognise vessels, buoys and marine life in real-time, making close interactions safer. 

Why does it matter?

The report stated that 47 million tonnes of carbon emissions could be avoided by making shipping more efficient. That would represent a 5% reduction in emissions when compared to the 858 million tonnes of emissions in 2022 estimated by the Organisation for Economic Co-operation and Development (OECD). Such a reduction would fall into the International Maritime Organization’s aim to cut shipping emissions by 20% by 2030. Orca AI’s awareness system could also help prevent collisions with whales, making coexistence between ships and wildlife easier. 

With Orca AI reporting that an average vessel could save up to $100,000 in fuel costs, this kind of technology would reunite economic and ecological interests for the same goal.

USA pushes allies on China chip restrictions

A US official is heading to Japan following discussions with the Dutch government to strengthen efforts to limit China’s semiconductor production capabilities. Alan Estevez, the US export policy chief, aims to build on a 2023 agreement between the USA, Japan, and the Netherlands to prevent China from accessing advanced chipmaking equipment, which could enhance its military.

In 2022, the US imposed restrictions on advanced chip shipments to China, involving companies like Nvidia and Lam Research. Japan followed suit in 2023, restricting exports of 23 types of chipmaking equipment, while the Dutch government began regulating ASML’s semiconductor equipment sales to China. Washington is now seeking to add 11 more Chinese chipmaking factories to its restricted list and further control chipmaking equipment.

US officials have had ongoing discussions with allies, including visits to the Netherlands, to prevent ASML from servicing certain equipment in China. While ASML expects to service most of its equipment sold to China, US rules prevent using American spare parts.

The Chinese Embassy in Washington did not respond to requests for comment.

Nvidia becomes world’s most valuable company

Nvidia has risen to become the world’s most valuable company, surpassing Microsoft and Apple, driven by its high-end processors central to AI technology. Nvidia’s shares increased by 3.5%, boosting its market capitalisation to $3.335 trillion. This rapid rise in value highlights Wall Street’s enthusiasm for AI, though some investors are cautious about potential over-optimism.

Nvidia has also become the most traded company on Wall Street, with daily turnover averaging $50 billion. Its stock has nearly tripled this year, reflecting strong demand for its top-of-the-line processors, considered superior to competitors. Tech giants like Microsoft, Meta, and Alphabet are competing to enhance their AI capabilities, further fueling Nvidia’s growth.

Despite the optimism, experts warn that even a slight misstep could lead to significant stock corrections. Nvidia’s impressive market value expansion, from $1 trillion to $3 trillion in just over a year, is evidence of its strong performance. The company’s consistently exceeding Wall Street’s expectations has solidified its position as a fundamental player in the AI development surge.

G7 Italy summit unveils AI action plan to balance AI risks and opportunities

Adopted on June 14, 2024, at the G7 Summit in Apulia, Italy, the Group of Seven (G7) Leaders’ Communiqué, expresses the wealthiest nations’ common pledges and actions to address multiple global issues. A portion of the Group of Seven (G7) declaration closing the Italian summit focuses on AI and other digital matters.

G7 leaders called for an action plan to manage AI’s risks and benefits, including developing and implementing an International Code of Conduct for organisations developing advanced AI systems, as unveiled last October under the Japanese G7 presidency. To maximise the advantages of AI while mitigating its threats, G7 nations commit to deepening their cooperation.

An action plan for the use of AI in the workplace was announced, together with the creation of a brand to promote the implementation and use of the International Code of Conduct for advanced AI systems, in cooperation with OECD. G7 leaders stressed the importance of global partnership to bridge the digital divide and ensure that people around the world have access to the benefits of AI and other technologies. The goal is to advance science, improve public health, accelerate the clean energy transition, promote sustainable development goals, etc.

Why does it matter?

The G7 is encouraging global collaboration within the group of countries, with the OECD, with other initiatives such as the Global Partnership on AI (GPAI), and towards the developing world, to facilitate the equitable distribution of the benefits of AI and other emerging technologies while minimising any threats. G7 leaders aim to mend technological gaps and address AI’s impact on workers. G7 labor ministers are tasked with designing measure to capitalize on AI’s potential, promote quality employment, and empower people, while also tackling potential barriers and risks to workers and labour markets.

G7 leaders agreed to intensify efforts to promote AI safety and enhance interoperability between diverse approaches to AI governance and risk management. That means strengthening collaboration between AI Safety Institutes in the US, UK, and equivalent bodies in other G7 nations and beyond, to improve global standards for AI development and implementation. The G7 also formed a ‘Semiconductors Point of Contact Group’ to strengthen cooperative efforts on addressing challenges affecting this critical industry that drives the AI ecosystem.

G7 nation’s commitments are consistent with the recent Seoul AI safety summit efforts and align with the intended goals of the upcoming United Nations Summit of the Future. Echoing the UN General Assembly landmark resolution on ‘seizing the opportunities of safe, secure, and trustworthy AI systems for sustainable development’ and Pope Francis’s historic address to the G7 leaders, the communiqué reflects the group’s unified stance on AI safety and the need for a framework for AI’s responsible development and use in the military.