Google: Most But Not Every Regulatory Outfit Is Googley

August 22, 2023

Vea4_thumb_thumb_thumb_thumb_thumb_tNote: This essay is the work of a real and still-alive dinobaby. No smart software involved, just a dumb humanoid.

When Google started it earned its revenue by selling advertising. While Alphabet Inc. diversified its portfolio, a large portion of its profit is still generated by advertising via Google. Unfortunately Torrent Freak explains that many of these ads are “pirate” links: “Google Search Asked To Remove One Billion ‘Pirate’ Links In 9 Months.” From the beginning, Google faced issues with copyright holders and it developed policies to be a responsible search engine. The easiest way Google and users address copyright infringements are DMCA takedown notices.

Google records its DMCA requests and began publishing them in 2012 in its Transparency Report. In August 2023, Google posted its seven billionth DMCA takedown notice and it is less than a year after its six billionth request. It took twice as long for Google to jump from five to six billion requests. Most of the DMCA takedowns were from a single copyright holder to stop a specific pirate operation. Who is the main complainer?

“Around the start of the year MG Premium began to increase its takedown efforts. The company is an intellectual property vehicle of the MindGeek conglomerate, known for popular adult sites such as P*rnHub. One of MG Premium’s main goals is to shut down ‘unlicensed’ sites or at least make when unfindable. Last year, MG Premium scored a multi-million dollar damages win in a U.S. federal court against pirate ‘tube site’ Daftsex . This order also took down the main .com domain, but that didn’t stop the site. Daftsex simply continued using alternative domains which remain available to this day.”

MG Premium has a vendetta against pirate links and is nursing a DMCA takedown never before witnessed in history. MG Premium averages more than two million requests per day.

While MG Premium is the biggest reporter of the moment, there are more complainers. Google sells ad space to anyone with the funds but the even bigger question is who is buying ad space on these pirated Web sites? Google automates most of its advertising sales but where are the filters to prevent pirate links?

Whitney Grace, August 22, 2023

An Existential Question: When Everything Is Advertising, What Is Advertising?

August 21, 2023

Vea4_thumb_thumb_thumb_thumb_thumb_tNote: This essay is the work of a real and still-alive dinobaby. No smart software involved, just a dumb humanoid.

A goldfish in a fish bowl lives in a constrained environment. Most fish — with the exception of the fish able to climb out of the water and draw a bead on a French bulldog — stay in the fish bowl. In a world in which information flows in streams, waves, and geysers, what constitutes advertising.

8 21 fish in bowl

The fish understands only that the bowl defines the world. The outside-the-bowl world is not well understood. What does this say about the fish? What if an advertising professional does not understand the world outside of the ad deal? How much can the fish or the advertising professional be able to understand? Thanks for the fish, MidJourney.

The LinkedIn user promoting one’s past achievements in order to get a job is advertising in my book. The local bar providing data to Google Local is advertising. The posts on BlueSky, Threads, and X are advertising as well. For example, search for #osint on X.com and you see posts similar to this one:

image

The Cyber Detective is advertising expertise in performing or advising individuals about reverse face image look ups. Why? Presumably it is to advertise the skill and knowledge of the individual. I believe if that anonymous Cyber Detective were asked, “Why are you posting high value information for free?” the answer might be a statement like this: “I want to help the community.” I accept this rationalization, but I recall a college lecture about Maslow’s hierarchy of needs. At the top was something to do with the “self.” Therefore, the do-good argument is secondary to the action for the benefit of the person doing the posting.

Made-for-Advertising Sites Lack a Clear Definition, Causing Confusion among the Advertising Industry” makes clear that those who are advertising professionals are struggling to define advertising in a world which is chock full of messaging, self-promotions, influencer TikToks which Amazon is desperate to add to its shopping service, and the old chestnut, the LinkedIn post with the little phrase “OpenToWork.”

The article explains:

Marketers say they’re concerned about made-for-advertising (MFA) sites, but the industry lacks a clear consensus on what an MFA actually is. Consider this response when Digiday asked one media buyer for their stance on including MFAs in clients’ programmatic campaigns: “My mind immediately goes to clickbait. Am I using that in the right context?”

I interpret this as an signal that the world is essentially advertising. Consider advertising in an environment increasingly populated by messages generated by smart software (AI). Are these messages non-advertising? Certainly not. A person instructed a system to generate messages presumably to cause a change in thought or action. When we consider the motive of self-interest, the blurring of “factual” with “marketing” is understandable.

Consider this statement about the Web sites which exist to accept advertising. The quote allegedly is from Chris Kane, founder of Jounce Media. (“Jounce” means to move in an up-and-down manner. Link to definition.) He states:

“It’s all about the advertising experience. If the advertising experience is ridiculous, that’s made-for-advertising.

Okay, I think I understand.

Do advertisers know that everything is now advertising? Apparently not. Is YouTube now made for advertising? Is X.com made for advertising? Is Yahoo.com made for advertising? I get the advertising angle. I am worrying about the weaponizing of information on a global scale.

Stephen E Arnold, August 21, 2023

Amazon: You Are Lovable… to Some I Guess

August 21, 2023

Vea4_thumb_thumb_thumb_thumb_thumb_tNote: This essay is the work of a real and still-alive dinobaby. No smart software involved, just a dumb humanoid.

Three “real news” giants have make articles about the dearly beloved outfit Amazon. My hunch is that the publishers were trepidatious when the “real” reporters turned in their stories. I can hear the “Oh, my goodness. A negative Amazon story.” Not to worry. It is unlikely that the company will buy ad space in the publications.

8 17 giant

A young individual finds that the giant who runs an alleged monopoly is truly lovable. Doesn’t everyone? MidJourney, after three tries I received an original image somewhat close to my instructions.

My thought is the fear that executives at the companies publishing negative information about the lovable Amazon could hear upon coming home from work, “You published this about Amazon. What if our Prime membership is cancelled? What if our Ring doorbell is taken offline? And did you think about the loss of Amazon videos? Of course not, you are just so superior. Fix your own dinner tonight. I am sleeping in the back bedroom tonight.”

The first story is “How Amazon’s In-House First Aid Clinics Push Injured Employees to Keep Working.” Imagine. Amazon creating a welcoming work environment in which injured employees are supposed to work. Amazon is pushing into healthcare. The article states:

“What some companies are doing, and I think Amazon is one of them, is using their own clinics to ‘treat people’ and send them right back to the job, so that their injury doesn’t have to be recordable,” says Jordan Barab, a former deputy assistant secretary at OSHA who writes a workplace safety newsletter.

Will Amazon’s other health care units operate in a similar way? Of course not.

The second story is “Authors and Booksellers Urge Justice Dept. to Investigate Amazon.” Imagine. Amazon exploiting its modest online bookstore and its instant print business to take sales away from the “real” publishers. The article states:

On Wednesday[August 16, 2023], the Open Markets Institute, an antitrust think tank, along with the Authors Guild and the American Booksellers Association, sent a letter to the Justice Department and the Federal Trade Commission, calling on the government to curb Amazon’s “monopoly in its role as a seller of books to the public.”

Wow. Unfair? Some deliveries arrive in a day. A Kindle book pops up in the incredibly cluttered and reader-hostile interface in seconds. What’s not to like?

The third story is from the “real news outfit” MSN which recycles the estimable CNBC “talking heads”. This story is “Amazon Adds a New Fee for Sellers Who Ship Their Own Packages.” The happy family of MSN and CNBC report:

Beginning Oct. 1, members of Amazon’s Seller Fulfilled Prime program will pay the company a 2% fee on each product sold, according to a notice sent to merchants … The e-commerce giant also charges sellers a referral fee between 8% and 15% on each sale. Sellers may also pay for things like warehouse storage, packing and shipping, as well as advertising fees.

What’s the big deal?

To admirer who grew up relying on a giant company, no problem.

Stephen E Arnold, August 21, 2023

Elsevier Boosts Scopus With Generative AI

August 21, 2023

Vea4_thumb_thumb_thumb_thumb_thumb_tNote: This essay is the work of a real and still-alive dinobaby. No smart software involved, just a dumb humanoid.

Generative AI algorithms aka AI assistants are technology’s latest and greatest tool. Its buzzword status makes every industry want an AI algorithm designed specifically for them. Even Elsevier, the large international academic publisher and distributor of data analytics and scientific information, adopted a generative AI tool, says the press release: “Elsevier takes Scopus To The Next Level With Generative AI.”

Elsevier released the first version of Scopus AI, a new tool that combines Scopus’s peer-reviewed literature database with generative AI. Scopus Ai will allow researchers to get faster collaboration, share information, and gain deeper insights. This is not Elsevier’s first project using AI algorithms. Elsevier has experimented with AI for over a decade.

While it is easier than ever to access information, researchers still encounter challenges regarding access, misinformation, lack of transparency, and information overload. Scopus AI minimizes these difficulties:

“Scopus AI provides easy-to-read topic summaries based on trusted content from over 27,000 academic journals, from more than 7,000 publishers worldwide, with over 1.8 billion citations, and includes over 17 million author profiles. Content is rigorously vetted and selected by an independent review board, that is made up of 17 world-renowned scientists, researchers and librarians who represent the major scientific disciplines. Researchers can quickly dig deeper and explore these topics in several ways, including suggested follow-up questions and links to the original research.”

The Scopus AI offers summarized abstracts, “Go Deeper Links” for further research exploration, natural language queries, and visual maps showing interconnections between information.

Scopus AI is in its initial phase and being tested by 15,000 researchers. The full product launch will be in early 2024.

Scopus AI is being marketed as an objective research tool that will weed out misinformation, but it is still meant to make revenue. Some of the research in Scopus is non-reproducible and peer SEO is used to make certain papers rise to the top of search results. Scopus AI is bound to have other biased issues but in theory it sounds great.

Whitney Grace, August 21, 2023

Google Mandiant on Influence Campaigns: Hey, They Do Not Work Very Well

August 18, 2023

Vea4_thumb_thumb_thumb_thumb_thumb_tNote: This essay is the work of a real and still-alive dinobaby. No smart software involved, just a dumb humanoid.

AI Use Rising in Influence Campaigns Online, But Impact Limited – US Cyber Firm” is a remarkable report for three reasons: [a] The write up does not question why the report was generated at this time, the dead of summer. [b] What methods were used to determine that online “manipulative information campaigns” were less than effective, and [c] What data substantiate that the “problem” will get “bigger over time”.

8 18 lecturer

The speaker says, “Online information campaigns do not work too well. Nevertheless, you should use them because it generates money. And money, as you know, is the ultimate good.” MidJourney did a C job of rendering a speaker with whom the audience disagrees.

Frankly I view this type of cyber security report as a public relations and marketing exercise. Why would a dinobaby like me view this information generated by the leader in online information finding, pointing, and distributing as specious? One reason is that paid advertising is a version of “manipulative information campaigns.” Therefore, the report suggests that Google’s online advertising business is less effective than Google has for 20 years explained as an effective way to generate leads and sales.

Second, I am skeptical about dismissing the impact of online manipulative information campaigns as a poor way to cause a desired thought or action. Sweden has set up a government agency to thwart anti-Sweden online information. Nation states continue to use social media, state controlled or state funded online newsletters to output information specifically designed to foster a specific type of behavior. Examples range from self harm messaging to videos about the perils of allowing people to vote in a fair election.

Third, the problem is a significant one. Amazon has a fake review problem. The solution may be to allow poorly understood algorithms to generate “reviews.” Data about the inherent bias and the ability of developers of smart software to steer results are abundant. Let me give an example. Navigate to MidJourney and ask for an image of a school building on fire. The system will not generate the image. This decision is based on inputs from humans who want to keep the smart software generating “good” images. Google’s own capabilities to block certain types of medical information illustrate the knobs and dials available to a small group of high technology companies which are alleged monopolies.

Do I believe the Google Mandiant information? Maybe some. But there are two interesting facets of this report which I want to highlight.

The first is that the Mandiant information undercuts what Google has suggested is the benefit of its online advertising business; that is, it works. Mandiant’s report seems to say, “Well, not too well.”

The second is that the article cited is from Thomson Reuters. The “trust principles” phrase appears on the story. Nevertheless ignores the likelihood that the Mandiant study is probably a fairly bad PR effort. Yep, trust. Not so much for this dinobaby.

Stephen E Arnold, August 18, 2023

Amazon, Arm, and Softbank: A Happy Coincidence Indeed

August 18, 2023

Vea4_thumb_thumb_thumb_thumb_thumb_tNote: This essay is the work of a real and still-alive dinobaby. No smart software involved, just a dumb humanoid.

I try not to think about Amazon, Arm, and Softbank. Oh, let me add a footnote to the “Amazon” reference. When deliveries do not arrive or I am scammed, then I do think about Amazon. But most of the time, it is a digital discount store located in a low-rent district.

However, I noted an article about Amazon which caused me to wrinkle my already crinkly brow; specifically, ”Amazon Has More Than Half of All Arm Server CPUs in the World” uses a trigger word for me — “all.” But that is news headline writing today. The main assertion in the article is that Amazon with its multi-billion dollar server business has more Arm CPUs than Apple has three nanometer fabrication commitments. Why are these giant companies involved in “real news” which seems focused on stock amping than improving technology or privacy protections?

Then I remembered that Softbank, an outfit that is losing money on almost 70 percent of its investments, according to the Financial Times, wants to convert Arm into an initial public offering. I then wondered, “Is this confluence of seemingly disparate factoids a happy coincidence?”

My hunch is that somewhere, somehow, an inspired PR / SEO / or marketing professional thought it would be a good idea to pitch Softbank as a giant in the land of artificial intelligence. AI is hot; Softbank’s financials are, in my opinion, not so hot.

The question becomes, “How accurate is the information about these Arm chips?” and “Is the PR push part of an activity which I cannot discern?” And there is the “all”. How important is the Arm IPO dream if Amazon shifts to a different CPU? Good vibrations strike me as important for both Amazon and Softbank.

Stephen E Arnold, August 18, 2023

Reddit: Feedback, Okay. Apologies, Forget It

August 18, 2023

Vea4_thumb_thumb_thumb_thumb_thumb_tNote: This essay is the work of a real and still-alive dinobaby. No smart software involved, just a dumb humanoid.

Do Reddit execs even understand what they did wrong in the first place? ArsTechnica reports, “Too Little Too Late—No Apologies as Reddit Halfheartedly Tries to Repair Ties with Moderators.”

8 12 adult child trash

A child telling a neighbor, “Don’t put your trash in my family’s garbage can, understand.” Good work MidJourney and no alerts to talk with the correctness group.

Writer Scharon Harding summarizes the recent conflict between the platform and its hard-working but unpaid moderators:

“Reddit went forward with its API pricing changes on July 1, resulting in many third-party Reddit apps closing and some cautiously attempting paid-for models. Since then, some longtime users, including moderators and communities, have exited Reddit, with some encouraging community members toward other social platforms, like Lemmy and Discord. … Reddit’s hasty implementation of API fees and its belittling of protests (both internally, reportedly, and to the press) and complaints are frequently cited by mods Ars has spoken to as elevating the protests beyond a debate on what the formerly free API should cost. Reddit has dug itself into a sizable hole that it will likely be unable to crawl out of through typical methods.”

And yet, it tries. Harding points to a (now missing) post in which a Reddit employee discussed the company’s efforts to repair the relationship, like new weekly feedback sessions and other communication channels. Notably absent are actual concessions to moderators or anything resembling an apology. Harding shares a couple moderators’ responses to the supposed olive branch. First:

“Akaash Maharaj, an r/equestrian mod who also participates in Reddit’s Mod Council, told Ars he doesn’t think the recently outlined efforts will mend broken relations on their own. That’s because the problem wasn’t a dearth of communication channels but, rather, corporate leadership showing consistent ‘contempt for the advice it has received during those communications.'”

Then there is the simple desire from Alyssa Videlock, moderator of multiple subreddits, some of them quite large:

“When asked how Reddit could restore its relationship with moderators, her answer was simple: an apology.”

But such humility may escape these tech wizards turned managers. Their high school science club method emerges like lava from a volcano in Iceland. Many little creatures are vaporized. People may be inconvenienced. New land may be formed. But management decisions can be controlled; their downstream consequences, like lava, cannot.

Cynthia Murrell, August 18, 2023

Thought Leader Thinking: AI Both Good and Bad. Now That Is an Analysis of Note

August 17, 2023

Vea4_thumb_thumb_thumb_thumb_thumb_tNote: This essay is the work of a real and still-alive dinobaby. No smart software involved, just a dumb humanoid.

I read what I consider a “thought piece.” This type of essay discusses a topic and attempts to place it in a context of significance. The “context” is important. A blue chip consulting firm may draft a thought piece about forever chemicals. Another expert can draft a thought piece about these chemicals in order to support the companies producing them. When thought pieces collide, there is a possible conference opportunity, definitely some consulting work to be had, and today maybe a ponderous online webinar. (Ugh.)

8 17 don quixote

A modern Don Quixote and thought leader essay writer lines up a windmill and charges. As the bold 2023 Don shouts, “Vile and evil windmill, you pretend to grind grain but you are a mechanical monster destroying the fair land. Yield, I say.” The mechanical marvel just keeps on turning and the modern Don is ignored until a blade of the windmill knocks the knight to the ground.” Thanks, MidJourney. It only took three tries to get close to what I described. Outstanding evidence of degradation of function.

The AI Power Paradox: Can States Learn to Govern Artificial Intelligence—Before It’s Too Late?” considers the “problem” of smart software. My recollection is that artificial intelligence and machine learning have been around for decades. I have a vivid recollection of a person named Marvin Weinberger I believe. This gentleman made an impassioned statement at an Information Industry Association meeting about the need for those in attendance to amp up their work with smart software. The year, as I recall, was 1981.

The thought piece does not dwell on the long history of smart software. The interest is in what the thought piece presents as it context; that is:

And generative AI is only the tip of the iceberg. Its arrival marks a Big Bang moment, the beginning of a world-changing technological revolution that will remake politics, economies, and societies.

The excitement about smart software is sufficiently robust to magnetize those who write thought pieces. Is the outlook happy or sad? You judge. The essay asserts:

In May 2023, the G-7 launched the “Hiroshima AI process,” a forum devoted to harmonizing AI governance. In June, the European Parliament passed a draft of the EU’s AI Act, the first comprehensive attempt by the European Union to erect safeguards around the AI industry. And in July, UN Secretary-General Antonio Guterres called for the establishment of a global AI regulatory watchdog.

I like the reference to Hiroshima.

The thought piece points out that AI is “different.”

It does not just pose policy challenges; its hyper-evolutionary nature also makes solving those challenges progressively harder. That is the AI power paradox. The pace of progress is staggering.

The thought piece points out that AI or any other technology is “dual use”; that is, one can make a smart microwave or one can make a smart army of robots.

Where is the essay heading? Let’s try to get a hint. Consider this passage:

The overarching goal of any global AI regulatory architecture should be to identify and mitigate risks to global stability without choking off AI innovation and the opportunities that flow from it.

From my point of view, we have a thought piece which recycles a problem similar to squaring the circle.

The fix, according to the thought piece, is to create a “minimum of three AI governance regimes, each with different mandates, levers, and participants.

To sum up, we have consulting opportunities, we have webinars, and we have global regulatory “entities.” How will that work out? Have you tried to get someone in a government agency, a non-governmental organization, or federation of conflicting interests to answer a direct question?

While one waits for the smart customer service system to provide an answer, the decades old technology will zip along leaving thought piece ideas in the dust. Talk global; fail local.

Stephen E Arnold, August 17, 2023

Why Encrypted Messaging Is Getting Love from Bad Actors

August 17, 2023

Vea4_thumb_thumb_thumb_thumb_thumb_tNote: This essay is the work of a real and still-alive dinobaby. No smart software involved, just a dumb humanoid.

The easier it is to break the law or circumvent regulations, the more people will give into their darker nature. Yes, this is another of Arnold’s Laws of Online along with online data flows erode ethical behavior. I suppose the two “laws” go together like Corvettes and fuel stops, tattoos and body art, or Barbie and Ken dolls.

Banks Hit with $549 Million in Fines for Use of Signal, WhatsApp to Evade Regulators’ Reach” explains a behavior I noticed when I was doing projects for a hoop-de-do big time US financial institution.

Let’s jump back in time to 2005: I arrived for a meeting with the bank lugging my lecture equipment. As I recall, I had a couple of laptops, my person LCD projector, a covey of connectors, and a couple of burner phones and SIMs from France and the UK.

8 9 banker and mobiles

“What are you looking at?” queries the young financial analyst on the sell side. I had interrupted a young, whip-smart banker who was organizing her off-monitoring client calls. I think she was deciding which burner phone and pay-as-you-go SIM to use to pass a tip about a major financial deal to a whale. Thanks, MidJourney. It only took three times for your smart software to show mobile phones. Outstanding C minus work. Does this MBA CFA look innocent to you? She does to me. Doesn’t every banker have multiple mobile phones?

One bright bank type asked upon entering the meeting room as I was stowing and inventorying my gear after a delightful taxi ride from the equally thrilling New York Hilton, “Why do you have so many mobile phones?” I explained that I used the burners in my talks about cyber crime. The intelligent young person asked, “How do you connect them?” I replied, “When I travel, I buy SIMs in other countries. I also purchase them if I see a US outfit offering a pay-as-you-go SIM.” She did not ask how I masked my identity when acquiring SIMs, and I did not provide any details like throwing the phone away after one use.

Flash forward two months. This time it was a different conference room. My client had his assistant and the bright young thing popped into the meeting. She smiled and said, “I have been experimenting with the SIMs and a phone I purchased on Lexington Avenue from a phone repair shop.”

“What did you learn?” I asked.

She replied, “I can do regular calls on the mobile the bank provides. But I can do side calls on this other phone.”

I asked, “Do you call clients on the regular phone or the other phone?”

She said, “I use the special phone for special clients.”

Remember this was late 2005.

The article dated August 8, 2023, appeared 18 years after my learning how quickly bright young things can suck in an item of information and apply it to transferring information supposedly regulated by a US government agency. That’s when I decided my Arnold Law about people breaking the law when it is really easy one of my go-to sayings.

The write up stated:

U.S. regulators on Tuesday announced a combined $549 million in penalties against Wells Fargo and a raft of smaller or non-U.S. firms that failed to maintain electronic records of employee communications. The Securities and Exchange Commission disclosed charges and $289 million in fines against 11 firms for “widespread and longstanding failures” in record-keeping, while the Commodity Futures Trading Commission also said it fined four banks a total of $260 million for failing to maintain records required by the agency.

How long has a closely regulated sector like banking been “regulated”? A long time.

I want to mention that I have been talking about getting around regulations which require communication monitoring for a long time. In fact, in October 2023, at the Massachusetts / New York Association of Crime Analysts conference. In my keynote, I will update my remarks about Telegram and its expanding role in cyber and regular crime. I will also point out how these encrypted messaging apps have breathed new, more secure life into certain criminal activities. We have an organic ecosystem of online-facilitated crime, crime that is global, not a local stick up at a convenient store at 3 am on a rainy Thursday morning.

What does this news story say about regulatory action? What does it make clear about behavior in financial services firms?

I, of course, have no idea. Just like some of the regulatory officers at financial institutions and some regulatory agencies.

Stephen E Arnold, August 17, 2023

Wanna Be an AI Entrepreneur? Part 2

August 17, 2023

MIT digital-learning dean Cynthia Breazeal and Yohana founder Yoky Matsuoka have a message for their entrepreneurship juniors. Forbes shares “Why These 50 Over 50 Founders Say Beware of AI ‘Hallucination’.” It is easy to get caught up in the hype around AI and leap into the fray before looking. But would-be AI entrepreneurs must approach their projects with careful consideration.

8 12 money machine

An entrepreneur “listens” to the AI experts. The AI machine spews money to the entrepreneur. How wonderful new technology is! Thanks, MidJourney for not asking me to appeal this image.

Contributor Zoya Hansan introduces these AI authorities:

“‘I’ve been watching generative AI develop in the last several years,’ says Yoky Matsuoka, the founder of a family concierge service called Yohana, and formerly a cofounder at Google X and CTO at Google Nest. ‘I knew this would blow up at some point, but that whole ‘up’ part is far bigger than I ever imagined.’

Matsuoka, who is 51, is one of the 20 AI maestros, entrepreneurs and science experts on the third annual Forbes 50 Over 50 list who’ve been early adopters of the technology. We asked these experts for their best advice to younger entrepreneurs leveraging the power of artificial intelligence for their businesses, and each one had the same warning: we need to keep talking about how to use AI responsibly.”

The pair have four basic cautions. First, keep humans on board. AI can often offer up false information, problematically known as “hallucinations.” Living, breathing workers are required to catch and correct these mistakes before they lead to embarrassment or even real harm. The founders also suggest putting guardrails on algorithmic behavior; in other words, impose a moral (literal) code on one’s AI products. For example, eliminate racial and other biases, or refuse to make videos of real people saying or doing things they never said or did.

In terms of launching a business, resist pressure to start an AI company just to attract venture funding. Yes, AI is the hot thing right now, but there is no point if one is in a field where it won’t actually help operations. The final warning may be the most important: “Do the work to build a business model, not just flashy technology.” The need for this basic foundation of a business does not evaporate in the face of hot tech. Learn from Breazeal’s mistake:

“In 2012, she founded Jibo, a company that created the first social robot that could interact with humans on a social and emotional level. Competition with Amazon’s Alexa—which takes commands in a way that Jibo, created as a mini robot that could talk and provide something like companionship, wasn’t designed to do—was an impediment. So too was the ability to secure funding. Jibo did not survive. ‘It’s not the most advanced, best product that wins,’ says Breazeal. ‘Sometimes it’s the company who came up with the right business model and figured out how to make a profit.'”

So would-be entrepreneurs must proceed with caution, refusing to let the pull of the bleeding edge drag one ahead of oneself. But not too much caution.

Cynthia Murrell, August 17, 2023

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