Artificial intelligence

Malaysia seeks Chinese investment for data centres

Malaysia is in talks with potential Chinese investors about building data centres as part of its strategy to attract high-quality investments, according to Economy Minister Rafizi Ramli. Rafizi stated in an interview that the government aims to enhance its infrastructure to leverage the AI boom.

In the past year, major US tech companies such as Microsoft, Google, and Nvidia have announced plans to establish data centres in Malaysia. Chinese firms are also interested in developing additional facilities to support local tech companies seeking to expand into the Southeast Asian market, Rafizi noted.

Rafizi emphasised Malaysia’s goal to expedite its transition from the back end to the front end of the semiconductor industry, focusing on integrated circuit design and data centres. He clarified that discussions with Chinese companies have not included using their Malaysian operations to bypass US tariffs.

OpenAI delays ChatGPT voice features amidst safety concerns and legal threats

OpenAI has announced a delay in launching new voice and emotion-reading features for its ChatGPT chatbot, citing the need for more safety testing. Originally set to be available to some paying subscribers in late June, these features will be rolled out in the fall.

The postponement follows a demonstration last month that garnered user excitement and sparked controversy, including a potential lawsuit from actress Scarlett Johansson, who claimed her voice was mimicked for an AI persona.

OpenAI’s demo showcased the chatbot’s ability to speak in synthetic voices and respond to users’ tones and expressions, with one voice resembling Johansson’s role in the movie ‘Her.’ However, CEO Sam Altman denied using Johansson’s voice, clarifying that a different actor was used for training. The company aims to ensure the new features meet high safety and reliability standards before release.

The delay highlights ongoing challenges in the AI industry. Companies like Google and Microsoft have faced similar setbacks, dealing with errors and controversial outputs from their AI tools.

OpenAI emphasised the complexity of designing chatbots that interpret and mimic emotions, which can introduce new risks and potential for misuse. Additionally, the competition in AI industry is growing swiftly to satisfy the demand of a more and more demanding market and customer field. However, the company seems to be committed to releasing these advanced features thoughtfully and safely.

CLTR urges UK government to create formal system for managing AI misuse and malfunctions

The UK should implement a system to log misuse and malfunctions in AI to keep ministers informed of alarming incidents, according to a report by the Centre for Long-Term Resilience (CLTR). The think tank, which focuses on responses to unforeseen crises, urges the next government to establish a central hub for recording AI-related episodes across the country, similar to the Air Accidents Investigation Branch.

CLTR highlights that since 2014, news outlets have recorded 10,000 AI ‘safety incidents,’ documented in a database by the Organisation for Economic Co-operation and Development (OECD). These incidents range from physical harm to economic, reputational, and psychological damage. Examples include a deepfake of Labour leader Keir Starmer and Google’s Gemini model depicting World War II soldiers inaccurately. The report’s author, Tommy Shaffer Shane, stresses that incident reporting has been transformative in aviation and medicine but is largely missing in AI regulation.

The think tank recommends the UK government adopt a robust incident reporting regime to manage AI risks effectively. It suggests following the safety protocols of industries like aviation and medicine, as many AI incidents may go unnoticed due to the lack of a dedicated AI regulator. Labour has pledged to introduce binding regulations for advanced AI companies, and CLTR emphasises that such a setup would help the government anticipate and respond quickly to AI-related issues.

Additionally, CLTR advises creating a pilot AI incident database, which could collect episodes from existing bodies such as the Air Accidents Investigation Branch and the Information Commissioner’s Office. The think tank also calls for UK regulators to identify gaps in AI incident reporting and build on the algorithmic transparency reporting standard already in place. An effective incident reporting system would help the Department for Science, Innovation and Technology (DSIT) stay informed and address novel AI-related harms proactively.

Experts join Regulating AI’s new advisory board

Regulating AI, a non-profit organisation dedicated to promoting AI governance, has announced its advisory board’s formation. Board members include notable figures such as former US Senator Cory Gardner, former Bolivian President Jorge Quiroga, and former Finnish Prime Minister Esko Aho. The board aims to foster a sustainable AI ecosystem that benefits humanity while addressing potential risks and ethical concerns.

The founder of Regulating AI, Sanjay Puri, expressed his excitement about the diverse expertise and perspectives the new board members bring. He emphasised the importance of their wisdom in navigating the complexities of the rapidly evolving AI landscape and shaping policies that balance innovation with ethical considerations and societal well-being.

One of the organisation’s key initiatives is developing a comprehensive AI governance framework. That includes promoting international cooperation, advocating for diverse voices, and exploring sector-specific AI implications. Former President of Bolivia Jorge Quiroga highlighted the transformational power of AI and the need for effective regulation that considers the unique challenges of developing nations.

Regulating AI aims to build public trust, align international standards, and empower various stakeholders through its board. Former US Senator Gardner underscored the necessity of robust regulatory frameworks to ensure AI is developed and deployed responsibly, protecting consumer privacy, preventing algorithmic bias, and upholding democratic values. The organisation also seeks to educate and raise awareness about AI regulations, fostering discussions among experts and policymakers to advance understanding and implementation.

Meta launches AI chatbot in India, rivaling Google’s Gemini

Meta has officially introduced its AI chatbot, powered by Llama 3, to all users in India following comprehensive testing during the country’s general elections. Initially trialled on WhatsApp, Instagram, Messenger, and Facebook since April, the chatbot is now fully accessible through the search bars in these apps and the Meta.AI website. Despite supporting only English, its functionalities are on par with other major AI services like ChatGPT and Google’s Gemini, including tasks such as suggesting recipes, planning workouts, writing emails, summarising text, recommending Instagram Reels, and answering questions about Facebook posts.

The launch aims to capitalise on India’s vast user base, notably the 500 million WhatsApp users, by embedding the chatbot deeper into the user experience. However, some limitations have been observed, such as the chatbot’s inability to fully understand the context of group conversations, except in direct mentions or replies. Moreover, while it cannot be disabled, users can choose not to interact with it during searches.

Despite its capabilities, Meta AI has faced criticisms for biases in its image generation, often depicting Indian men with turbans and producing images of traditional Indian houses, which Meta has acknowledged and aims to address through ongoing updates. The launch coincides with Google releasing its Gemini app in India, which, unlike Meta’s chatbot, supports multiple local languages, potentially giving Google a competitive advantage in the linguistically diverse Indian market.

Why does it matter?

In summary, Meta’s rollout of its English-only AI chatbot in India is a strategic effort to leverage its extensive user base by offering robust functionalities similar to established competitors. While it faces initial limitations and biases, Meta is actively working on improvements. The concurrent release of Google’s Gemini app sets up a competitive landscape, underscoring the dynamic and evolving nature of AI services in India.

Central banks urged to embrace AI

The Bank for International Settlements (BIS) has advised central banks to harness the benefits of AI while cautioning against its use in replacing human decision-makers. In its first comprehensive report on AI, the BIS highlighted the technology’s potential to enhance real-time data monitoring and improve inflation predictions – capabilities that have become critical following the unforeseen inflation surges during the COVID-19 pandemic and the Ukraine crisis. While AI models could mitigate future risks, their unproven and sometimes inaccurate nature makes them unsuitable as autonomous rate setters, emphasised Cecilia Skingsley of the BIS. Human accountability remains crucial for decisions on borrowing costs, she noted.

The BIS, often termed the central bank for central banks, is already engaged in eight AI-focused projects to explore the technology’s potential. Hyun Song Shin, the BIS’s head of research, stressed that AI should not be seen as a ‘magical’ solution but acknowledged its value in detecting financial system vulnerabilities. However, he also warned of the risks associated with AI, such as new cyber threats and the possibility of exacerbating financial crises if mismanaged.

The widespread adoption of AI could significantly impact labour markets, productivity, and economic growth, with firms potentially adjusting prices more swiftly in response to economic changes, thereby influencing inflation. The BIS has called for the creation of a collaborative community of central banks to share experiences, best practices, and data to navigate the complexities and opportunities presented by AI. That collaboration aims to ensure AI’s integration into financial systems is both effective and secure, promoting resilient and responsive economic governance.

In conclusion, the BIS’s advisory underscores the importance of balancing AI’s promising capabilities with the necessity for human intervention in central banking operations. By fostering an environment for shared knowledge and collaboration among central banks, the BIS seeks to maximise AI benefits while mitigating inherent risks, thereby supporting more robust economic management in the face of technological advancements.

AI startup Etched to produce $120M worth specialised chip

Etched, an AI startup based in San Francisco, announced that it secured $120 million, aiming to create a specialised kind of chip tailored to run a specific type of AI model commonly used by OpenAI’s ChatGPT and Google’s Gemini.

Unlike Nvidia, which dominates the market for server AI chips with a roughly 80% market share, Etched aims to create a specialized processor optimized for running inference tasks. The produced chip would focus on generating content and responses, which is particularly suited for transformer-based AI models. The company’s CEO, Gavin Uberti, sees this as a strategic bet on the longevity of transformer models in the AI landscape.

In Etched’s funding round, key investors include former PayPal CEO Peter Thiel and Replit CEO Amjad Masad. The startup has also partnered with Taiwan Semiconductor Manufacturing Co. (TSMC) to fabricate its chips. Uberti highlighted the importance of the funding to cover the costs associated with sending chip designs to TSMC and manufacturing the chips, a process known as ‘taping out.’

While Etched did not disclose its current valuation, its $5.4-million seed-funding round in March 2023 valued the company at $34 million. The success of its specialised chip could position Etched as an important player in the AI chip market, provided transformer-based AI models continue to be prevalent in the industry.

Privacy concerns behind Apple abandoning Meta partnership, report says

In recent days, the landscape of AI integration on Apple’s devices has become a topic of discussion. Initially, it was reported that a potential partnership could involve Apple’s cooperation with Meta’s AI services. However, ‘people with knowledge on the matter’ told Bloomberg this is not the case, explaining that Apple had explored a potential partnership in March of this year, before settling on OpenAI for part of the recently announced Apple Intelligence services. Reportedly, this partnership was abandoned due to Apple’s privacy concerns. Apple has repeatedly criticised Meta’s privacy practices, making a collaboration between the two tech giants potentially damaging to Apple’s image as a privacy-focussed company.

The timing of these discussions coincides with Meta facing privacy concerns over its new AI tools in the European Union. Despite this, Meta recently rolled out these same tools in India.

Earlier this month, Apple launched its own suite of AI features under the Apple Intelligence brand, including integration in Siri. Apple partnered with OpenAI to allow iPhone users to utilise ChatGPT for specific queries. The company says Siri will always ask for your permission before connecting to ChatGPT, and give you the choice to provide it with data, like a photo, if needed for your query. “From a privacy point of view, you’re always in control and have total transparency,” said Apple senior vice president Criag Federighi. That stance underpins Apple’s strategy as it demarcates itself in the world of AI integration, balancing innovation with its core principle of user privacy.

Apple is not depending exclusively on one AI provider though. At the Worldwide Developers Conference (WWDC), it announced its willingness to work with Google to integrate the Gemini AI model into its ecosystem. They have already partnered to train Apple’s AI. The extent of this integration remains to be seen, but it indicates Apple’s strategy of diversifying its AI partnerships.

Chinese AI companies respond to OpenAI restrictions

Chinese AI companies are swiftly responding to reports that OpenAI intends to restrict access to its technology in certain regions, including China. OpenAI, the creator of ChatGPT, is reportedly planning to block access to its API for entities in China and other countries. While ChatGPT is not directly available in mainland China, many Chinese startups have used OpenAI’s API platform to develop their applications. Users in China have received emails warning about restrictions, with measures set to take effect from 9 July.

In light of these developments, Chinese tech giants like Baidu and Alibaba Cloud are stepping in to attract users affected by OpenAI’s restrictions. Baidu announced an ‘inclusive Program,’ offering free migration to its Ernie platform for new users and additional Ernie 3.5 flagship model tokens to match their OpenAI usage. Similarly, Alibaba Cloud provides free tokens and migration services for OpenAI API users through its AI platform, offering competitive pricing compared to GPT-4.

Zhipu AI, another prominent player in China’s AI sector, has also announced a ‘Special Migration Program’ for OpenAI API users. The company emphasises its GLM model as a benchmark against OpenAI’s ecosystem, highlighting its self-developed technology for security and controllability. Over the past year, numerous Chinese companies have launched chatbots powered by their proprietary AI models, indicating a growing trend towards domestic AI development and innovation.

Italian watchdog tests AI for market oversight

Italy’s financial watchdog, Consob, has begun experimenting with AI to enhance its oversight capabilities, particularly in the initial review of listing prospectuses and the detection of insider trading. According to Consob, these AI algorithms aim to swiftly identify potential instances of insider trading, which traditionally requires significantly more time when conducted manually.

The agency reported that its AI algorithms can detect errors in just three seconds, a task typically taking a human analyst at least 20 minutes. These efforts were part of testing conducted last year using prototypes developed in collaboration with Scuola Normale Superiore University in Pisa, alongside an additional model developed independently.

Consob views the integration of AI as pivotal in enhancing the effectiveness of regulatory controls to detect financial misconduct. The next phase involves transitioning from prototype testing to fully incorporating AI into Consob’s regular operational procedures. That initiative mirrors similar efforts by financial regulators globally who are increasingly leveraging AI to bolster consumer protection and regulatory oversight.

For instance, in the United Kingdom, the Financial Conduct Authority (FCA) has utilised AI technologies to combat online scams and protect consumers. That trend underscores a broader international movement within regulatory bodies to harness AI’s potential in safeguarding market integrity and enhancing regulatory efficiency.

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