Smart Software: More Novel and Exciting Than a Mere Human
September 17, 2024
This essay is the work of a dumb humanoid. No smart software required.
Idea people: What a quaint notion. Why pay for expensive blue-chip consultants or wonder youth from fancy universities? Just use smart software to generate new, novel, unique ideas. Does that sound over the top? Not according to “AIs Generate More Novel and Exciting Research Ideas Than Human Experts.” Wow, I forgot exciting. AI outputs can be exciting to the few humans left to examine the outputs.
The write up says:
Recent breakthroughs in large language models (LLMs) have excited researchers about the potential to revolutionize scientific discovery, with models like ChatGPT and Anthropic’s Claude showing an ability to autonomously generate and validate new research ideas. This, of course, was one of the many things most people assumed AIs could never take over from humans; the ability to generate new knowledge and make new scientific discoveries, as opposed to stitching together existing knowledge from their training data.
Aside from having no job and embracing couch surfing or returning to one’s parental domicile, what are the implications of this bold statement? It means that smart software is better, faster, and cheaper at producing novel and “exciting” research ideas. There is even a chart to prove that the study’s findings are allegedly reproducible. The graph has whisker lines too. I am a believer… sort of.
The magic of a Bonferroni correction which allegedly copes with data from multiple dependent or independent statistical tests are performed in one meta-calculation. Does it work? Sure, a fancy average is usually close enough for horseshoes I have heard.
Just keep in mind that human judgments are tossed into the results. That adds some of that delightful subjective spice. The proof of the “novelty” creation process, according to the write up comes from Google. The article says:
…we can’t understate AI’s potential to radically accelerate progress in certain areas – as evidenced by Deepmind’s GNoME system, which knocked off about 800 years’ worth of materials discovery in a matter of months, and spat out recipes for about 380,000 new inorganic crystals that could have revolutionary potential in all sorts of areas. This is the fastest-developing technology humanity has ever seen; it’s reasonable to expect that many of its flaws will be patched up and painted over within the next few years. Many AI researchers believe we’re approaching general superintelligence – the point at which generalist AIs will overtake expert knowledge in more or less all fields.
Flaws? Hallucinations? Hey, not to worry. These will be resolved as the AI sector moves with the arrow of technology. Too bad if some humanoids are pierced by the arrow and die on the shoulder of the uncaring Information Superhighway. What about those who say AI will not take jobs? Have those people talked with an accountants responsible for cost control?
Stephen E Arnold, September 17, 2024
Pay Up Time for Low Glow Apple
September 16, 2024
![green-dino_thumb_thumb_thumb_thumb_t[1]](https://arnoldit.com/wordpress/wp-content/uploads/2024/09/green-dino_thumb_thumb_thumb_thumb_t1.gif "green-dino_thumb_thumb_thumb_thumb_t[1]")
This essay is the work of a dumb dinobaby. No smart software required.
Who noticed the flip side of Apple’s big AI event? CNBC did. “Apple Loses EU Court Battle over 13 Billion Euro Tax Bill in Ireland” makes clear that the EU regulators were not awed by snappy colors, “to be” AI, and Apple’s push to be the big noise in hearing aids. Nope. The write up reported:
Europe’s top court on Tuesday ruled against Apple in the tech giant’s 10-year court battle over its tax affairs in Ireland. The pronouncement from the European Court of Justice comes hours after Apple unveiled a swathe of new product offerings, looking to revitalize its iPhone, Apple Watch and Air Pod line-ups.
Those new products will need to generate some additional revenue. The monetary penalty ascends to $14 billion. Packaged as illegal tax benefits, Apple will go through the appeal drill, the PR drill, and the apology drill. The drills may not stop the EU’s desire to scrutinize the behaviors of US high technology companies. It seems that the EU is on a crusade to hold the Big Dogs by their collars, slip on choke chains, and bring the beasts to heel.
An EU official hits a big rock and finds money inside. Thanks, MSFT Copilot. Good enough.
I have worked in a couple of EU countries. I recall numerous comments from my clients and colleagues in Europe who suggested US companies were operating as if they were countries. From these individuals’ points of view, their observations about US high technology outfits were understandable. The US, according to some, refused to hold these firms accountable for what some perceived as ignoring user privacy and outright illegal behavior of one sort or another.
What does the decision suggest?
- Big fines, recoveries, and judgments are likely to become more common
- Regulations to create market space for European start ups and technologies are likely to be forthcoming
- The Wild West behavior, tolerated by US regulators, will not be tolerated.
There is one other possible consequence of this $14 billion number. The penalty is big, even for a high tech money machine like Apple. The size of the number may encourage other countries’ regulators to think big as well. It is conceivable that after years of inaction, even US regulators may be tempted to jump into the big money when judgments go against the high technology outfits.
With Google on the spot for alleged monopolistic activities in the online advertising market, those YouTube ads are going to become more plentiful. Some Googlers may have an opportunity to find their future elsewhere as Xooglers (former Google employees). Freebies may be further curtailed in the Great Chain of Being hierarchy which guides Google’s organizational set up.
I found the timing of the news about the $14 billion number interesting. As the US quivered from the excitement of more AI in candy bar devices in rainbow colors, the EU was looking under the rock. The EU found nerve and a possible pile of money.
Stephen E Arnold, September 16, 2024
Online Gambling Has a Downside, Says Captain Obvious
September 13, 2024
People love gambling, especially when they’re betting on the results of sports. Online has made sports betting very easy and fun. Unfortunately some people who bet on sports are addicted to the activity. Business Insider reveals the underbelly of online gambling and paints a familiar picture of addiction: “It’s Official: Legalized Sports Betting Is Destroying Young Men’s Financial Futures.” The University of California, Los Angeles shared a working paper about the negative effects of legalized sports gambling:
“…takes a look at what’s happened to consumer financial health in the 38 states that have greenlighted sports betting since the Supreme Court in 2018 struck down a federal law prohibiting it. The findings are, well, rough. The researchers found that the average credit score in states that legalized any form of sports gambling decreased by 0.3% after about four years and that the negative impact was stronger where online sports gambling is allowed, with credit scores dipping in those areas by 1%. They also found an 8% increase in debt-collection amounts and a 28% increase in bankruptcies where online sports betting was given the go-ahead. By their estimation, that translates to about 100,000 extra bankruptcies each year in the states that have legalized sports betting. The number of people who fell dangerously behind on their car loans went up, too. Oddly enough, credit-card delinquencies fell, but the researchers believe that’s because banks wind up lowering credit limits to try to compensate for the rise in risky consumer behavior.”
The researchers discovered that legalized gambling leads to more gambling addictions. They also found if a person lives near a casino or is from a poor region, they’ll more prone to gambling. This isn’t anything new! The paper restates information people have known for centuries about gambling and other addictions: hurts finances, leads to destroyed relationships, job loss, increased in illegal activities, etc.
A good idea is to teach people to restraint. The sports betting Web sites can program limits and even assist their users to manage their money without going bankrupt. It’s better for people to be taught restraint so they can roll the dice one more time.
Whitney Grace, September 13, 2024
More Push Back Against US Wild West Tech
September 12, 2024
I spotted another example of a European nation state expressing some concern with American high-technology companies. There is not wind blown corral on Leidsestraat. No Sergio Leone music creeps out the observers. What dominates the scene is a judicial judgment firing a US$35 million fine at Clearview AI. The company has a database of faces, and the information is licensed to law enforcement agencies. What’s interesting is that Clearview does not do business in the Netherlands; nevertheless, the European Union’s data protection act, according to Dutch authorities, has been violated. Ergo: Pay up.
“The Dutch Are Having None of Clearview AI Harvesting Your Photos” reports:
“Following investigation, the DPA confirmed that photos of Dutch citizens are included in the database. It also found that Clearview is accountable for two GDPR breaches. The first is the collection and use of photos….The second is the lack of transparency. According to the DPA, the startup doesn’t offer sufficient information to individuals whose photos are used, nor does it provide access to which data the company has about them.”
Clearview is apparently unhappy with the judgment.
Several observations:
First, the decision is part of what might be called US technology pushback. The Wild West approach to user privacy has to get out of Dodge.
Second, Clearview may be on the receiving end of more fines. The charges may appear to be inappropriate because Clearview does not operate in the Netherlands. Other countries may decide to go after the company too.
Third, the Dutch action may be the first of actions against US high-technology companies.
Net net: If the US won’t curtail the Wild West activities of its technology-centric companies, the Dutch will.
Stephen E Arnold, September 12, 2024
Google and Search: A Fix or a Pipe Dream?
September 6, 2024
This essay is the work of a dumb dinobaby. No smart software required.
I read “Dawn of a New Era in Search: Balancing Innovation, Competition, and Public Good.”
Don’t get me wrong. I think multiple search systems are a good thing. The problem is that search (both enterprise and Web) are difficult problems, and these problems are expensive to solve. After working more than 50 years in electronic information, I have seen search systems come and go. I have watched systems morph from search into weird products that hide the search plumbing beneath fancy words like business intelligence and OSINT tools, among others. In 2006 or 2007, one of my financial clients published some of our research. The bank received an email from an “expert” (formerly and Verity) that his firm had better technology than Google. In that conversation, that “expert” said, “I can duplicate Google search for $300 million.” The person who said these incredibly uninformed words is now head of search at Google. Ed Zitron has characterized the individual as the person who killed Google search. Well, that fellow and Google search are still around. This suggests that baloney and high school reunions provide a career path for some people. But search is not understood particularly well at Google at this time. It is, therefore, that awareness of the problems of search is still unknown to judges, search engine marketing experts, developers of metasearch systems which recycle Bing results, and most of the poohbahs writing about search in blogs like Beyond Search.
The poor search kids see the rich guy with lots of money. The kids want it. The situation is not fair to those with little or nothing. Will the rich guy share the money? Thanks, Microsoft Copilot. Good enough. Aren’t you one of the poor Web search vendors?
After five decades of arm wrestling with finding on point information for myself, my clients, and for the search-related start ups with whom I have worked, I have an awareness of how much complexity the word “search” obfuscates. There is a general perception that Google indexes the Web. It doesn’t. No one indexes the Web. What’s indexed are publicly exposed Web pages which a crawler can access. If the response is slow (like many government and underfunded personal / commercial sites), spiders time out. The pages are not indexed. The crawlers have to deal in a successful way with the changes on how Web pages are presented. Upon encountering something for which the crawler is not configured, the Web page is skipped. Certain Web sites are dynamic. The crawler has to cope with these. Then there are Web pages which are not composed of text. The problems are compounded by the vagaries of intermediaries’ actions; for example, what’s being blocked or filtered today? The answer is the crawler skips them.
Without revealing information I am not permitted to share, I want to point out that crawlers have a list which contains bluebirds, canaries, and dead ducks. The bluebirds are indexed by crawlers on an aggressive schedule, maybe multiple times every hour. The canaries are the index-on-a-normal-cycle, maybe once every day or two. The dead ducks are crawled when time permits. Some US government Web sites may not be updated in six or nine months. The crawler visits the site once every six months or even less frequently. Then there are forbidden sites which the crawler won’t touch. These are on the open Web but urls are passed around via private messages. In terms of a Web search, these sites don’t exist.
How much does this cost? The answer is, “At scale, a lot. Indexing a small number of sites is really cheap.” The problem is that in order to pull lots of clicks, one has to have the money to scale or a niche no one else is occupying. Those are hard to find, and when one does, it makes sense to slap a subscription fee on them; for example, POISINDEX.
Why am I running though what strikes me as basic information about searching the Web? “Dawn of a New Era in Search: Balancing Innovation, Competition, and Public Good” is interesting and does a good job of expressing a specific view of Web search and Google’s content and information assets. I want to highlight the section of the write up titled “The Essential Facilities Doctrine.” The idea is that Google’s search index should be made available to everyone. The idea is interesting, and it might work after legal processes in the US were exhausted. The gating factor will be money and the political climate.
From a competitor’s point of view, the index blended with new ideas about how to answer a user’s query would level the playing field. From Google’s point of view it would loss of intellectual property.
Several observations:
- The hunger to punish Big Tech seems to demand being satisfied. Something will come from the judicial decision that Google is a monopoly. It took a couple of decades to arrive at what was obvious to some after the Yahoo ad technology settlement prior to the IPO, but most people didn’t and still don’t get “it.” So something will happen. What is not yet known.
- Wide access to the complete Google index could threaten the national security of the US. Please, think about this statement. I can’t provide any color, but it is a consideration among some professionals.
- An appeal could neutralize some of the “harms,” yet allow the indexing business to continue. Specific provisions might be applied to the decision of Judge Mehta. A modified landscape for search could be created, but online services tend to coalesce into efficient structures. Like the break up of AT&T, the seven Baby Bells and Bell Labs have become AT&T and Verizon. This could happen if “ads” were severed from Web search. But after a period of time, the break up is fighting one of the Arnold Laws of Online: A single monopoly is more efficient and emergent.
To sum up, the time for action came and like a train in Switzerland, left on time. Undoing Google is going to be more difficult than fiddling with Standard Oil or the railroad magnates.
Stephen E Arnold, September 6, 2024
Uber Leadership May Have to Spend Money to Protect Drivers. Wow.
September 5, 2024
This essay is the work of a dumb dinobaby. No smart software required.
Senior managers — now called “leadership” — care about their employees. I added a wonderful example about corporate employee well being and co-worker sensitivity when I read “Wells Fargo Employee Found Dead in Her Cubicle 4 Days After She Clocked in for Work.” One of my team asked me, “Will leadership at that firm check her hours of work so she is not overpaid for the day she died?” I replied, “You will make a wonderful corporate leader one day.” Another analyst asked, “Didn’t the cleaning crew notice?” I replied, “Not when they come once every two weeks.”
Thanks, MSFT Copilot. Good enough given your filters.
A similar approach to employee care popped up this morning. My newsreader displayed this headline: “Ninth Circuit Rules Uber Had Duty to Protect Washington Driver Murdered by Passengers.” The write up reported:
The estate of Uber driver Cherno Ceesay sued the rideshare company for negligence and wrongful death in 2021, arguing that Uber knew drivers were at risk of violent assault from passengers but neglected to install any basic safety measures, such as barriers between the front and back seats of Uber vehicles or dash cameras. They also claimed Uber failed to employ basic identity-verification technology to screen out the two customers who murdered Ceesay — Olivia Breanna-Lennon Bebic and Devin Kekoa Wade — even though they opened the Uber account using a fake name and unverified form of payment just minutes before calling for the ride.
Hold it right there. The reason behind the alleged “failure” may be the cost of barriers, dash cams, and identity verification technology. Uber is a Big Dog high technology company. Its software manages rides, maps, payments, and the outstanding Uber app. If you want to know where your driver is, text the professional. Want to know the percentage of requests matched to drivers from a specific geographic point, forget that, gentle reader. Request a ride and wait for a confirmation. Oh, what if a pick up is cancelled after a confirmation? Fire up Lyft, right?
The cost of providing “basic” safety for riders is what helps make old fashioned taxi rides slightly more “safe.” At one time, Uber was cheaper than a weirdly painted taxi with a snappy phone number like 666 6666 or 777 7777 painted on the side. Now that taxis have been stressed by Uber, the Uber rides have become more expensive. Thanks to surge pricing, Uber in some areas is more expensive than taxis and some black car services if one can find one.
Uber wants cash and profits. “Basic” safety may add the friction of additional costs for staff, software licenses, and tangibles like plastic barriers and dash cams. The write up explains by quoting the legalese of the court decision; to wit:
“Uber alone controlled the verification methods of drivers and riders, what information to make available to each respective party, and consistently represented to drivers that it took their safety into consideration Ceesay relied entirely on Uber to match him with riders, and he was not given any meaningful information about the rider other than their location,” the majority wrote.
Now what? I am no legal eagle. I think Uber “leadership” will have meetings. Appropriate consultants will be retained to provide action plan options. Then staff (possibly AI assisted) will figure out how to reduce the probability of a murder in or near an Uber contractor’s vehicle.
My hunch is that the process will take time. In the meantime, I wonder if the Uber app autofills the “tip” section and then intelligently closes out that specific ride? I am confident that universities offering business classes will incorporate one or both of these examples in a class about corporate “leadership” principles. Tip: The money matters. Period.
Stephen E Arnold, September 5, 2024
Accountants: The Leaders Like Philco
September 4, 2024
This essay is the work of a dumb dinobaby. No smart software required.
AI or smart software has roiled the normal routine of office gossip. We have shifted from “What is it?” to “Who will be affected next?” The integration of AI into work processes, however, is not a new thing. Most people don’t know or don’t recall that when a consultant could do a query from a clunky device like the Texas Instrument Silent 700, AI was already affecting jobs. Whose? Just ask a special librarian who worked when an intermediary was not needed to retrieve information from an online database.
A nervous smart robot running state-of-the-art tax software is sufficiently intelligent to be concerned about the meeting with an IRS audit team. Thanks, MSFT Copilot. How’s that security push coming along? Oh, too bad.
I read “Why America’s Most Boring Job Is on the Brink of Extinction.” I think the story was crafted by a person who received either a D or an F in Accounting 100. The lingo links accountants with being really dull people and the nuking of an entire species. No meteor is needed; just smart software, the silent killer. By the way, my two accountants are quite sporty. I rarely fall asleep when they explain life from their point of view. I listen, and I urge you to be attentive as well. Smart software can do some excellent things, but not everything related to tax, financial planning, and keeping inside the white lines of the quite fluid governmental rules and regulations.
Nevertheless, the write up cited above states:
Experts say the industry is nearing extinction because the 150-hour college credit rule, the intense entry exam and long work hours for minimal pay are unappealing to the younger generation.
The “real” news article includes some snappy quotes too. Here’s one I circled: “’The pay is crappy, the hours are long, and the work is drudgery, and the drudgery is especially so in their early years.’”
I am not an accountant, so I cannot comment on the accuracy of this statement. My father was an accountant, and he was into detail work and was able to raise a family. None of us ended up in jail or in the hospital after a gang fight. (I was and still am a sissy. Imagine that: An 80 year old dinobaby sissy with the DNA of an accountant. I am definitely exciting.)
With fewer people entering the field of accounting, the write up makes a remarkable statement:
… Accountants are becoming overworked and it is leading to mistakes in their work. More than 700 companies cited insufficient staff in accounting and other departments as a reason for potential errors in their quarterly earnings statements…
Does that mean smart software will become the accountants of the future? Some accountants may hope that smart software cannot do accounting. Others will see smart software as an opportunity to improve specific aspects of accounting processes. The problem, however, is not the accountants. The problem will AI is the companies or entrepreneurs who over promise and under deliver.
Will smart software replace the insight and timeline knowledge of an experienced numbers wrangler like my father or the two accountants upon whom I rely?
Unlikely. It is the smart software vendors and their marketers who are most vulnerable to the assertions about Philco, the leader.
Stephen E Arnold, September 4, 2024
Elastic N.V. Faces a New Search Challenge
September 2, 2024
This essay is the work of a dumb dinobaby. No smart software required.
Elastic N.V. and Shay Banon are what I call search survivors. Gone are Autonomy (mostly), Delphis, Exalead, Fast Search & Transfer (mostly), Vivisimo, and dozens upon dozens of companies who sought to put an organization’s information at an employee’s fingertips. The marketing lingo of these and other now-defunct enterprise search vendors is surprisingly timely. Once can copy and paste chunks of Autonomy’s white papers into the OpenAI ChatGPT search is coming articles and few would notice that the assertions and even the word choice was more than 40 years old.
Elastic N.V. survived. It rose from a failed search system called Compass. Elastic N.V. recycled the Lucene libraries, released the open source Elasticsearch, and did an IPO. Some people made a lot of money. The question is, “Will that continue?”
I noted the Silicon Angle article “Elastic Shares Plunge 25% on Lower Revenue Projections Amid Slower Customer Commitments.” That write up says:
In its earnings release, Chief Executive Officer Ash Kulkarni started positively, noting that the results in the quarter we solid and outperformed previous guidance, but then comes the catch and the reason why Elastic stock is down so heavily after hours. “We had a slower start to the year with the volume of customer commitments impacted by segmentation changes that we made at the beginning of the year, which are taking longer than expected to settle,” Kulkarni wrote. “We have been taking steps to address this, but it will impact our revenue this year.” With that warning, Elastic said that it expects fiscal second-quarter adjusted earnings per share of 37 to 39 cents on revenue of $353 million to $355 million. The earnings per share forecast was ahead of the 34 cents expected by analysts, but revenue fell short of an expected $360.8 million. It was a similar story for Elastic’s full-year outlook, with the company forecasting earnings per share of $1.52 to $1.56 on revenue of $1.436 billion to $1.444 billion. The earnings per share outlook was ahead of an expected $1.42, but like the second quarter outlook, revenue fell short, as analysts had expected $1.478 billion.
Elastic N.V. makes money via service and for-fee extras. I want to point out that the $300 million or so revenue numbers are good. Elastic B.V. has figured out a business model that has not required [a] fiddling the books, [b] finding a buyer as customers complain about problems with the search software, [c] the sources of financing rage about cash burn and lousy revenue, [d] government investigators are poking around for tax and other financial irregularities, [e] the cost of running the software is beyond the reach of the licensee, or [f] the system simply does not search or retrieve what the user wanted or expected.
Elastic B.V. and its management team may have a challenge to overcome. Thanks, OpenAI, the MSFT Copilot thing crashed today.
So what’s the fix?
A partial answer appears in the Elastic B.V. blog post titled “Elasticsearch Is Open Source, Again.” The company states:
The tl;dr is that we will be adding AGPL as another license option next to ELv2 and SSPL in the coming weeks. We never stopped believing and behaving like an open source community after we changed the license. But being able to use the term Open Source, by using AGPL, an OSI approved license, removes any questions, or fud, people might have.
Without slogging through the confusion between what Elastic B.V. sells, the open source version of Elasticsearch, the dust up with Amazon over its really original approach to search inspired by Elasticsearch, Lucid Imagination’s innovation, and the creaking edifice of A9, Elastic B.V. has released Elasticsearch under an additional open source license. I think that means one can use the software and not pay Elastic B.V. until additional services are needed. In my experience, most enterprise search systems regardless of how they are explained need the “owner” of the system to lend a hand. Contrary to the belief that smart software can do enterprise search right now, there are some hurdles to get over.
Will “going open source again” work?
Let me offer several observations based on my experience with enterprise search and retrieval which reaches back to the days of punch cards and systems which used wooden rods to “pull” cards with a wanted tag (index term):
- When an enterprise search system loses revenue momentum, the fix is to acquire companies in an adjacent search space and use that revenue to bolster the sales prospects for upsells.
- The company with the downturn gilds the lily and seeks a buyer. One example was the sale of Exalead to Dassault Systèmes which calculated it was more economical to buy a vendor than to keep paying its then current supplier which I think was Autonomy, but I am not sure. Fast Search & Transfer pulled of this type of “exit” as some of the company’s activities were under scrutiny.
- The search vendor can pivot from doing “search” and morph into a business intelligence system. (By the way, that did not work for Grok.)
- The company disappears. One example is Entopia. Poof. Gone.
I hope Elastic B.V. thrives. I hope the “new” open source play works. Search — whether enterprise or Web variety — is far from a solved problem. People believe they have the answer. Others believe them and license the “new” solution. The reality is that finding information is a difficult challenge. Let’s hope the “downturn” and “negativism” goes away.
Stephen E Arnold, September 2, 2024
The Seattle Syndrome: Definitely Debilitating
August 30, 2024
This essay is the work of a dumb dinobaby. No smart software required.
I think the film “Sleepless in Seattle” included dialog like this:
What do they call it when everything intersects?
The Bermuda Triangle.”
Seattle has Boeing. The company is in the news not just for doors falling off its aircraft. The outfit has stranded two people in earth orbit and has to let Elon Musk bring them back to earth. And Seattle has Amazon, an outfit that stands behind the products it sells. And I have to include Intel Labs, not too far from the University of Washington, which is famous in its own right for many things.
Two job seekers discuss future opportunities in some of Seattle and environ’s most well-known enterprises. The image of the city seems a bit dark. Thanks, MSFT Copilot. Are you having some dark thoughts about the area, its management talent pool, and its commitment to ethical business activity? That’s a lot of burning cars, but whatever.
Is Seattle a Bermuda Triangle for large companies?
This question invites another; specifically, “Is Microsoft entering Seattle’s Bermuda Triangle?
The giant outfit has entered a deal with the interesting specialized software and consulting company Palantir Technologies Inc. This firm has a history of ups and downs since its founding 21 years ago. Microsoft has committed to smart software from OpenAI and other outfits. Artificial intelligence will be “in” everything from the Azure Cloud to Windows. Despite concerns about privacy, Microsoft wants each Windows user’s machine to keep screenshot of what the user “does” on that computer.
Microsoft seems to be navigating the Seattle Bermuda Triangle quite nicely. No hints of a flash disaster like the sinking of the sailing yacht Bayesian. Who could have predicted that? (That’s a reminder that fancy math does not deliver 1.000000 outputs on a consistent basis.
Back to Seattle. I don’t think failure or extreme stress is due to the water. The weather, maybe? I don’t think it is the city government. It is probably not the multi-faceted start up community nor the distinctive vocal tones of its most high profile podcasters.
Why is Seattle emerging as a Bermuda Triangle for certain firms? What forces are intersecting? My observations are:
- Seattle’s business climate is a precursor of broader management issues. I think it is like the pigeons that Greeks examined for clues about their future.
- The individuals who works at Boeing-type outfits go along with business processes modified incrementally to ignore issues. The mental orientation of those employed is either malleable or indifferent to downstream issues. For example, Windows update killed printing or some other function. The response strikes me as “meh.”
- The management philosophy disconnects from users and focuses on delivering financial results. Those big houses come at a cost. The payoff is personal. The cultural impacts are not on the radar. Hey, those quantum Horse Ridge things make good PR. What about the new desktop processors? Just great.
Net net: I think Seattle is a city playing an important role in defining how businesses operate in 2024 and beyond. I wish I was kidding. But I am bedeviled by reminders of a space craft which issues one-way tickets, software glitches, and products which seem to vary from the online images and reviews. (Maybe it is the water? Bermuda Triangle water?)
Stephen E Arnold, August 30, 2024
What Is a Good Example of AI Enhancing Work Processes? Klarna
August 30, 2024
This essay is the work of a dumb dinobaby. No smart software required.
Klarna is a financial firm in Sweden. (Did you know Sweden has a violence problem?) The country also has a company which is quite public about the value of smart software to its operations. “‘Our Chatbots Perform The Tasks Of 700 People’: Buy Now, Pay Later Company Klarna To Axe 2,000 Jobs As AI Takes On More Roles” reports:
Klarna has already cut over 1,000 employees and plans to remove nearly 2,000 more
Yep, that’s the use case. Smart software allows the firm’s leadership to terminate people. (Does that managerial attitude contribute to the crime problem in Sweden? Of course not. The company is just being efficient.)
The write up states:
Klarna claims that its AI-powered chatbot can handle the workload previously managed by 700 full-time customer service agents. The company has reduced the average resolution time for customer service inquiries from 11 minutes to two while maintaining consistent customer satisfaction ratings compared to human agents.
What’s the financial payoff for this leader in AI deployment? The write up says:
Klarna reported a 73 percent increase in average revenue per employee compared to last year.
Klarna, however, is humane. According to the article:
Notably, none of the workforce reductions have been achieved through layoffs. Instead, the company has relied on a combination of natural staff turnover and a hiring freeze implemented last year.
That’s a relief. Some companies would deploy Microsoft software with AI and start getting rid of people. The financial benefits are significant. Plus, as long as the company chugs along in good enough mode, the smart software delivers a win for the firm.
Are there any downsides? None in the write up. There is a financial payoff on the horizon. The article states:
In July [2024], Chrysalis Investments, a major Klarna investor, provided a more recent valuation estimate, suggesting that the fintech firm could achieve a valuation between 15 billion and 20 billion dollars in an initial public offering.
But what if the AI acts like a brake on firm’s revenue growth and sales? Hey, this is an AI success. Why be negative? AI is wonderful and Klarna’s customers appear to be thrilled with smart software. I personally love speaking to smart chatbots, don’t you?
Stephen E Arnold, August 30, 2024
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