Brazil’s government has enlisted OpenAI’s services to streamline the assessment of thousands of lawsuits using AI, aiming to mitigate costly court losses that have burdened the federal budget. Through Microsoft’s Azure cloud-computing platform, OpenAI’s AI technology, including ChatGPT, will identify lawsuits requiring prompt government action and analyse trends and potential focus areas for the solicitor general’s office (AGU).
The AGU revealed that Microsoft would facilitate the AI services from OpenAI, though the exact cost of Brazil’s procurement remains undisclosed. The initiative responds to the escalating financial strain caused by court-ordered debt payments, which are anticipated to reach 70.7 billion reais ($13.2 billion) next year, excluding smaller claims. The surge from 37.3 billion reais in 2015, equivalent to about 1% of GDP, surpasses government expenditures on unemployment insurance and wage bonuses for low-income earners by 15%.
While the AGU has not clarified the reasons behind Brazil’s mounting court expenses, it assures that the AI project will not supplant human efforts but enhance efficiency and precision, all under human supervision. This move aligns with broader governmental efforts, including releasing 25 million reais in supplementary credits for AGU in March to implement strategic IT projects and bolster operational capacities.
Google, a subsidiary of Alphabet, reportedly plans to lay off around 100 employees from several teams in its cloud unit. The affected roles include those in sales, operations, engineering, consulting, and ‘go to market’ strategy. The information citing internal correspondence as the source was provided in the report.
A spokesperson for Google stated that the company is constantly evolving its business to align with customer priorities and to capitalise on significant opportunities. They emphasised Google’s commitment to investing in critical areas that are necessary for long-term success.
Why does it matter?
These layoffs are part of the company’s ongoing efforts to cut costs. In April, Google implemented unspecified staff reductions across various teams. The management move was followed by hundreds of layoffs in January, reflecting a broader trend of job cuts in the tech and media industry due to economic uncertainty.
Meta Platforms, the parent company of Facebook, announced that it will discontinue its Workplace app, a platform geared towards work-related communications. The social media platform made this decision as it shifted its focus towards developing AI and metaverse technologies. The Workplace app will be phased out for customers starting in June 2026, although Meta will continue to utilise it internally as a messaging board until August 2025, according to a statement from the company.
A spokesperson for Meta stated that they are discontinuing Workplace to focus on building AI and metaverse technologies that they believe will fundamentally reshape the way they work. Over the next two years, Workplace customers will have the option to transition to Zoom’s Workvivo product, which Meta has designated as its preferred migration partner. Workplace was initially launched in 2016 to cater to businesses, offering features such as multi-company groups and shared spaces to facilitate collaboration among employees from different organizations.
Why does it matter?
The discontinuation of Workplace aligns with Meta’s strategic emphasis on advancing AI and metaverse technologies, which it views as integral to the future of digital communication. The strategic change of business direction has raised concerns about escalating costs that could potentially impact the company’s growth trajectory. Despite the discontinuation of Workplace, Meta has assured customers that billing and payment arrangements will remain unchanged until August of this year. Currently, Workplace offers a core plan priced at $4 per user per month, with additional add-ons available starting from $2 per user per month, with monthly bills calculated based on the number of billable users unless a fixed plan is in place.
In an interview given to Digital Watch Observatory, André Xuereb, Ambassador for Digital Affairs at the Office of the Permanent Secretary, Ministry for Foreign and European Affairs and Trade of Malta, provided insights into the world of quantum computing and its implications for diplomacy. Quantum computing, as described by Xuereb, harnesses the laws of quantum mechanics to tackle complex problems by exploiting the simultaneous states of quantum bits or qubits, offering unprecedented computational power.
Xuereb emphasised the transformative potential of quantum computing, particularly in areas like drug discovery and cryptography. With its ability to handle intricate molecular structures efficiently, quantum computers could revolutionise drug design and accelerate the development of new medicines. Additionally, the inherent properties of quantum computing pose challenges to traditional encryption methods, potentially compromising data security.
Addressing the emergence of quantum diplomacy, Xuereb underscored the need for international collaboration and governance frameworks to navigate the complexities of quantum technologies. Initiatives like the Open Quantum Institute in Geneva, a global platform for quantum research and development, aim to facilitate equitable access to quantum resources, bridging the gap between countries with varying technological capabilities. Meanwhile, major tech players such as Microsoft, Amazon, Google, and others, with their substantial investments in quantum technologies, are not only driving technological advancements but also shaping the diplomatic landscape by influencing policy discussions and international cooperation in this field.
Looking ahead, Xuereb advised future quantum diplomats to prioritise discussions around the implications of quantum technologies on global security and communication. With the advent of general-purpose quantum computers, the risk of cyber threats, such as the ability to break current encryption methods, and the need for secure communication channels become paramount diplomatic concerns. However, Xuereb emphasised the importance of striking a balance between leveraging quantum advancements for societal benefits and mitigating potential risks associated with their misuse, such as the potential for quantum computers to crack current encryption methods, leading to widespread data breaches and security vulnerabilities.
AI is poised to drastically reshape the global labour market, according to International Monetary Fund Managing Director Kristalina Georgieva. She likened its impact to a ‘tsunami’, projecting that 60% of jobs in advanced economies and 40% worldwide will be affected within the next two years. Georgieva emphasised the urgency of preparing individuals and businesses for this imminent transformation, speaking at an event organised by the Swiss Institute of International Studies in Zurich.
While AI adoption promises significant gains in productivity, Georgieva warned against potential downsides, including the proliferation of misinformation and the exacerbation of societal inequality. She highlighted the recent vulnerabilities of the world economy, citing shocks like the 2020 global pandemic and the ongoing conflict in Ukraine. Despite these challenges, she noted a resilience in the global economy, with no imminent signs of a widespread recession.
Addressing concerns about inflation, Swiss National Bank Chairman Thomas Jordan emphasised progress in Switzerland’s inflation management. With inflation reaching 1.4% in April, remaining within the SNB’s target range for the 11th consecutive month, Jordan expressed optimism about maintaining price stability in the coming years. However, he acknowledged lingering uncertainties surrounding future economic trends.
Microsoft’s CEO Satya Nadella has announced an investment of $1.7 billion over the next four years in expanding cloud services and AI infrastructure in Indonesia. The plan includes building data centres, with Jakarta being Nadella’s first stop on a trip across Southeast Asian countries to promote Microsoft’s generative AI technology. Later this week, he will visit Malaysia and Thailand within this initiative.
Nadella highlighted that the investment aims to bring cutting-edge AI infrastructure to Indonesia, positioning Microsoft to lead in meeting the region’s AI infrastructure needs. During his visit, Nadella met with outgoing president Joko Widodo and cabinet ministers to discuss joint AI research and talent development. Communications Minister Budi Arie Setiadi revealed that Widodo proposed Microsoft to establish its data centres on the island of Bali or in the new capital city of Nusantara, currently under construction in Borneo’s jungle.
In addition to infrastructure development, Microsoft plans to train 2.5 million people in Southeast Asia in AI by 2025, with 840,000 individuals targeted in Indonesia alone. The feat underscores Microsoft’s global strategy to support AI development, as seen in previous investments such as $2.9 billion in cloud and AI infrastructure in Japan and $1.5 billion in AI firm G42 based in UAE.
Why does it matter?
Nadella’s visit to Jakarta follows Apple Inc. CEO Tim Cook’s recent meeting with President Widodo, during which Cook expressed interest in exploring the possibility of establishing a manufacturing facility in Indonesia. With its large and tech-savvy population, Indonesia is a fruitful market for tech-related investments. Microsoft’s proactive approach aligns with its recent financial success, partly driven by integrating AI across its cloud services, as demonstrated by its beating of Wall Street estimates for third-quarter revenue and profit.
San Francisco’s tech leaders are rallying against a proposed California law, AB 2751, that would enforce a ‘right to disconnect’ after work hours, fearing it could hinder startups. The bill, introduced by Assemblymember Matt Haney, aims to limit employer contact outside agreed-upon working hours, exempting emergencies and scheduling reasons.
Critics like Y Combinator’s Garry Tan argue for the value of late-night work and decry overregulation. Flo Crivello of the AI startup Lindy warns against replicating European policies, stating that successful startups usually have a relentless work ethic.
However, Haney argued that the new policy is crucial for worker well-being and aligns with global standards. He also said that enforcement is supposed to be flexible to avoid penalising companies unfairly. The bill will be deliberated on in the legislature in the coming weeks.
Why does it matter?
California could become the first state in the US to establish a ‘right to disconnect’ law, mirroring similar legislation in 13 countries, including Australia, France, Belgium, and Portugal. The California Chamber of Commerce opposes the proposed legislation, stating it would enforce rigid working schedules and restrict communication between employers and employees, noting that California already has stringent labour laws, including overtime pay and breaks provisions. While workers from certain industries, notably healthcare, endorse the initiative due to soaring burnout rates among employees, there appears to be a consensus within the tech sector that the bill would significantly disrupt a fundamental aspect of company operations: their work culture.
In the 350th session taking place in March, the agenda includes a High-level Section on ‘the challenges and opportunities of digitalization, including artificial intelligence (AI) and algorithmic management, for the world of work’. Academic, industry, and intergovernmental body experts are invited to shed light on digitalization’s impacts on labour, e-government in support of labour and social protection, and the role of ILO in enhancing the benefits of digitalization.
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EFTA is an intergovernmental organisation composed of four member states: Iceland, Liechtenstein, Norway, and Switzerland. Established in 1960 by the EFTA Convention, EFTA promotes free trade and economic integration between its members. Since its foundation, relations with the European Union (EU) have been at the heart of EFTA’s activities. In 1992, three EFTA states (Iceland, Liechtenstein, and Norway) signed the Agreement on the European Economic Area (EEA) with the EU, extending the EU’s Internal market to the three EEA EFTA states. Since the early 1990s, EFTA has been actively engaged in trade relations with non-EU countries both inside and outside Europe.
Digital activities
EFTA’s activities in the context of digital issues pertain to electronic communication such as the exchange of information via telecommunications and the internet, audiovisual services, and information society, including the free movement of information society services as well as data protection.
Digital policy issues
E-commerce and trade
EFTA’sWorking Group on Electronic Communication,Audiovisual Services, and Information Society (WG ECASIS) deals with legal provisions pertaining to the EU’s digital strategy: Fit for the Digital Age. As per the EEA Agreement, the EFTA states (excluding Switzerland) participate in the EU’s internal market and as such must apply EU rules on electronic communication, audiovisual services, and information society. Among other things, these rules include acts on radio spectrum management, roaming, privacy protection in electronic networks, net neutrality, and the deployment of very-high-capacity networks. Initiatives regarding information society tackle legal frameworks on the free movement of information society services and apply to a wide range of economic activities taking place online. These include rules on e-commerce, cross-border data flows, the reuse of public sector information, and cybersecurity, as well as electronic identification and signatures.
In its trade relations with partners outside the EU, EFTA facilitates and provides basic rules for trade enabled by electronic means. In 2021, EFTA finalised its internal work on a new e-commerce model chapter, which it now employs in the context of negotiations on free trade agreements (FTAs) across the globe. The chapter includes provisions on paperless trade administration, open internet access, online consumer trust, electronic payments and invoicing, and cross-border data transfers, among others. EFTA is further negotiating a Digital Economy Agreement with Singapore.
Future of work
EFTA is also tackling the implications of digitalisation for the future of work. A resolution and report titled Digitalisation and its Impact on Jobs and Skills published by the EEA Consultative Committee highlights the importance of investments in information and communications technology (ICT) infrastructure and new learning methods, including apprenticeships and workplace training. Moreover, they underline the need to examine whether and to what extent workers’ private lives require additional protection in an era of ubiquitous digital mobile communication.
More recently, the EEA Consultative Committee adopted a resolution and report on the challenges andopportunities of greater use of AI in working life, in which it underlines the importance of addressing issues raised by the increased use of artificial intelligence (AI) in work-life in a systematic and comprehensive manner in the EEA, while following the principles of transparency and human monitoring.
Data governance and liability of intermediaries
In the context of the EEA Agreement, WG ECASIS works with the EU on policies for creating a single market for data, as well as the conditions for use and access to data for businesses and governments within the EEA. The Working Group also engages with the EU to develop a common regulatory framework for AI. In the area of online intermediaries, the EEA EFTA states have issued common position papers (EEA EFTA Comments) on the proposed European Media Freedom Act and the new EU rules for internet platforms: the Digital ServicesAct and the Digital Markets Act. The EEA EFTA states advocate for additional safeguards regarding the use of recommender systems, consumer profiling, and micro-targeted advertising, in particular when directed at minors and vulnerable groups. WG ECASIS works to implement EU content rules affecting trade in the EU’s internal market, particularly with regard to the dissemination of terrorist content and child sexual abuse material online.
Privacy and data protection
EFTA’s Expert Group on Data Protection keeps track of EU initiatives in the domain of data protection, which has become particularly relevant in the fast-changing digital environment. The Expert Group contributes to the development of EU policies and legislation in the field of data protection by advising the European Commission, or by participating in the Commission’s committees, in accordance with the EEA Agreement. The EEA Agreement covers EU legislation such as the e-Privacy Directive and Regulation 611/2013 on notifications of data breaches and is therefore applicable to three EFTA states. The Expert Group is coordinating with the European Commission on new EU data adequacy decisions allowing the international transfer of personal data with counterparties located outside the EEA.
Digital tools
Resources
The EFTA trade statistics tool is an interactive tool that provides data on trade relations with EFTA’s partners over time and by type of merchandise. An interactive Free Trade Map illustrates EFTA’s preferential trade relations with partners worldwide. In August 2023, EFTA updated its FTA Monitor, originally published in June 2022, which provides fine-grained data on preference utilisation rates under EFTA’s existing FTAs, including the EFTA Convention. The FTA Monitor is updated annually. EFTA has also created a webtool containing visual presentations explaining how EU law becomes EEA law.
Conferencing technologies
In the context of the COVID-19 crisis, EFTA turned to virtual meetings, for instance in the case of the EEA Joint Committee, interaction with the EFTA Advisory Bodies, and FTA negotiations with partners across the globe. EFTA continues to leverage the benefits of virtual and hybrid meetings and corollary online platforms, striking a balance with physical meetings on a needs basis.
A study by CybSafe has found that workers are more likely to divulge company secrets to workplace AI tools than to their friends.
The report reveals that a third of US and UK workers would continue using AI tools even if their company banned them, and 69% of all respondents believe the benefits of such tools outweigh the security risks. However, CybSafe warns that businesses are not properly alerting employees to the dangers of using AI tools, and that employees may be unknowingly sharing confidential information with AI.
The report also highlights concerns about the inability of workers to distinguish between content created by humans and AI, with 60% of respondents claiming they could do so accurately.
CybSafe argues that without immediate action, companies will face unprecedented cybersecurity risks as cybercriminals use AI to craft convincing phishing lures. The report comes as the uptake of AI at work is increasing rapidly, with nearly 80% of respondents in a McKinsey survey claiming to have had some exposure to the technology at home or at work.
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