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2 Top Artificial Intelligence (AI) Stocks That Could Go Parabolic in 2024 – The Motley Fool

Following the launch of OpenAI's ChatGPT, generative artificial intelligence (AI) has taken the market by storm, helping send the S&P 500 Index up 25% year to date. Industry leaders such as Nvidia (NVDA 2.29%) and Advanced Micro Devices (AMD 1.89%) have been key in helping power the rally because of their fast-growing chip businesses.

Let's discuss why 2024 could be even more exciting for these two AI-related stocks.

With shares up a jaw-dropping 246% in 2023, Nvidia is arguably the biggest winner in 2023's AI gold rush. And unlike some other AI companies, its operating performance has surged to match the hype. It isn't too late for investors to bet on Nvidia's continued success because of its reasonable valuation and spectacular margins.

Nvidia's business is shifting from lower-value gaming hardware to high-performance AI chips. And that shift is transforming its operations.

Third-quarter revenue increased by 206% year over year to a record of $18.12 billion, while net income surged by 1,259% to $9.2 billion. This is partially because of a dramatic rise in margin as the company sells more expensive data center chips like the H100, which can cost as much as $30,000 per unit.

Nvidia is also tackling other growth opportunities like China, where U.S. trade restrictions limit the import of some of its most advanced hardware. To comply with the rules, the company has launched slower versions of its Nvidia RTX4090 gaming chip, specifically for Chinese consumers. This move follows a November announcement of plans to develop AI chips customized for the Chinese market.

With a forward price-to-earnings (P/E) growth rate of just 25, Nvidia stock is relatively cheap compared with its projected growth over the next 12 months. To put that number in context, the S&P 500 trades for an average of 26.

With Nvidia making boatloads of money from its data center chip business, its biggest rival, AMD, is vying for a piece of the opportunity through advanced AI hardware of its own. And while the chipmaker has yet to report significant gains from these efforts, investors can look forward to seeing the business scale up rapidly in 2024 and beyond.

According to AMD's CEO Lisa Su, the market for AI-capable chips will surge tenfold to $400 billion by 2027. To take advantage of the opportunity, the company released the MI300 family of AI chips, which can outperform Nvidia's flagship H100 on key metrics like memory space and inference (running AI platforms).

Image source: Getty Images.

So far, AMD's new products have had no significant impact on the company's performance. Third-quarter revenue increased only 4% to $5.8 billion. However, analysts are optimistic that its new chips will see large-scale deployment in 2024, leading to significant revenue growth.

AMD's valuation is nowhere near as good as Nvidia's, considering its significantly lower growth rate in the near term. In fact, with a forward price-to-earnings (P/E) multiple of 39, its shares are more expensive than its larger rival. However, the situation could change as AMD's AI efforts start supercharging its operating performance.

While Nvidia and AMD are about to enter direct competition in the market for the most advanced AI hardware, that doesn't mean one company has to lose for the other to win.

As mentioned, AMD's management believes the market for AI chips will surge more than tenfold to $400 billion. That figure is more than 20 times Nvidia's trailing 12-month revenue, leaving plenty of room for both companies to sell these products as fast as they can produce them, even if the market reaches only a fraction of those lofty estimates. Both stocks can continue their bull runs in 2024 and beyond.

Will Ebiefung has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool has a disclosure policy.

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2 Top Artificial Intelligence (AI) Stocks That Could Go Parabolic in 2024 - The Motley Fool

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Stock Split Watch 2024: 1 Artificial Intelligence (AI) Growth Stock Up 229% in 5 Years to Buy Now and Hold Long-Term – The Motley Fool

Stock splits generally follow sustained share price increases, which typically follow from consistently strong financial results. In that way, stock splits tend to point investors toward businesses with solid fundamentals. It's the price appreciation, not the stock split, that is the important signal.

Keeping that in mind, Intuit (INTU 0.38%) returned 229% over the last five years, more than doubling the return of the S&P 500. That price appreciation can be ascribed to a series of strong financial performances arising from its leadership in U.S. tax preparation and accounting software. Intuit is well positioned to maintain that momentum thanks to efforts to infuse its products with artificial intelligence.

Intuit is undoubtedly a stock split candidate in 2024, but patient investors should consider buying the stock whether that split happens or not. Here's why.

Intuit breaks its business into three primary segments. The consumer group includes TurboTax tax preparation software and services for consumers and small businesses. The small business and self-employed group comprises QuickBooks accounting software and a broad range of adjacent services, including solutions for marketing, payment processing, and payroll. Finally, Credit Karma is a financial platform that connects consumers with credit cards, loans, and insurance products.

Intuit reported strong financial results in the first quarter of fiscal 2024 (ended Oct. 31), beating expectations on the top and bottom lines. Revenue increased 15% to $3 billion, driven by particularly strong growth in consumer group and the small business and self-employed group products. Additionally, non-GAAP net income soared 45% to $960 million.

For the full year, management expects revenue growth ranging from 11% to 12%, and non-GAAP earnings-per-share growth ranging from 12% to 14%. But investors can expect similar momentum in subsequent years, as Intuit believes it has tapped just 5% of its $300 billion addressable market.

Intuit is the gold standard in U.S. tax preparation and accounting software. TurboTax holds a 73% market share, and QuickBooks holds an 80% market share. Intuit has already improved its ability to attract and monetize users with TurboTax Live and QuickBooks Live, which provide on-demand access to tax and bookkeeping professionals, but there is plenty of room to increase adoption.

Additionally, leadership in accounting software positions Intuit to cross-sell small businesses with adjacent solutions for marketing, payment processing, and payroll. The company also has an opportunity to bring 40 million Credit Karma users to TurboTax, and steer 90 million TurboTax users toward Credit Karma Money savings and checking accounts. Management believes artificial intelligence (AI) can draw new users and improve monetization by driving cross-platform adoption.

On that note, Intuit recently launched a generative AI assistant (Intuit Assist) that can surface recommendations and automate workflows to improve the user experience across TurboTax, Credit Karma, and QuickBooks. For instance, Intuit Assist can provide explanations and discover deductions that ultimately reduce tax preparation time for TurboTax users. Similarly, it can simplify the onboarding process, answer business questions, and create marketing campaigns for QuickBooks users.

Additionally, Intuit Assist can help consumers get refunds faster by creating Credit Karma Money accounts, and it can recommend adjacent products that help small businesses grow more efficiently. It can also steer users toward TurboTax Live and QuickBooks Live in situations that call for professional advice. In that way, management believes Intuit Assist will improve user monetization across all three product groups.

With that in mind, Intuit expects long-term revenue growth of 10% annually in consumer group products, 17.5% annually in the small business and self-employed group products, and 22.5% annually in Credit Karma. That implies total revenue growth in the mid-teens over the next three to five years.

Intuit has a durable competitive advantage built on brand authority and switching costs. Namely, TurboTax and QuickBooks are the gold standards in their respective categories, and it would be time consuming and costly for users to switch products. That affords Intuit a certain degree of pricing power, a quality that Warren Buffett prizes in a business.

Going forward, Morningstar analysts expect Intuit to grow revenue at 13% annually over the next five years. That aligns with projections from management, and it makes the current valuation of 11.5 times sales appear reasonable. For context, that multiple is identical to the three-year average.

Based on its current price, I think Intuit could produce market-beating returns over the next five years, just as it did over the last five years. That is true whether or not the company splits its stock, though news of a stock split could certainly draw attention to Intuit and put upward pressure on its share price. In either case, investors should feel comfortable buying a small position in this growth stock today.

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Stock Split Watch 2024: 1 Artificial Intelligence (AI) Growth Stock Up 229% in 5 Years to Buy Now and Hold Long-Term - The Motley Fool

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1 Surprising Artificial Intelligence (AI) Growth Stock to Buy Before It Soars 136% – The Motley Fool

It's not often you can find stocks that Wall Street analysts think will double in the next year, but that's exactly what I've found with SoundHound AI (SOUN -3.40%). While the stock trades for around $2.10 now, an average of five analysts have a one-year price target of $5.

That's an incredible upside for SoundHound AI's stock, but is the company worth an investment?

SoundHound AI does exactly what it sounds like: It provides artificial intelligence (AI) solutions for voice. Right now, SoundHound's primary customers are restaurants, although it has other applications suited for automobiles, smart devices, and call centers.

SoundHound's products can help take mobile orders from restaurants placed with a phone call or operate a drive-thru kiosk. That's exactly what SoundHound teamed up with White Castle (the burger chain) to do. By implementing its AI-powered ordering system, SoundHound helped White Castle implement a system that has a 90% order completion rate and processes orders in less than 60 seconds. Both of these measures surpass the human benchmark, making it not only a replacement but an improvement as well.

White Castle is a small chain compared to others, and if big-time restaurants teamed up with SoundHound AI, it could send the stock skyrocketing.

But SoundHound isn't sitting around waiting for suitors to come to them. Instead, it recently announced an acquisition of SYNQ3. SYNQ3 has partnered with several restaurant chains and will further expand SoundHound's reach into this space.

This is a complementary acquisition and will further accelerate SoundHound's expansion in the restaurant space.

Still, investing in SoundHound is far from a sure bet.

SoundHound's deal with SYNQ3 will cost about $25 million over the next three years, with the final figure being determined by the success of the combined entity. The deal will be funded through 20% cash and 80% stock, so it will only reduce SoundHound's cash balance by about $5 million.

This is critical, as SoundHound is far from profitable.

In the third quarter, SoundHound grew revenue 52% year over year to $13.3 million. Despite shrinking its operating expenses from $38.3 million to $28.8 million in Q3, it still posted a $14.5 million operating loss. This makes cash burn an important factor for determining if SoundHound AI is worth an investment. SoundHound has used around $54.4 million in cash in the past nine months, giving it a burn rate of about $18.1 million each quarter.

SOUN Operating Margin (Quarterly) data by YCharts

As of Q3, the company had about $110 million in cash. This gives SoundHound a bit over a year to operate before running out of cash.

However, it can easily raise funds, as the company's bookings are impressive. Over the past 12 months, SoundHound has produced revenue of $38.2 million. But it has a $342 million backlog on its books, so SoundHound AI already has contractual growth on paper.

This is a key factor, as it shows investors that SoundHound has products customers want; it's just working on upscaling and implementing its technology. As a result, SoundHound AI could be a great AI investment.

But if you choose to invest in SoundHound, it's best to keep the position size small, as it could easily go under. On the other hand, if it grows into a sizable business, that small position will quickly transform into a notable one.

Keithen Drury has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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1 Surprising Artificial Intelligence (AI) Growth Stock to Buy Before It Soars 136% - The Motley Fool

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The Take: Is artificial intelligence the future of music? – Al Jazeera English

PodcastPodcast, The Take

The music industry is grappling with artificial intelligence, but is it ready for AI to become the next big thing?

Artificial intelligence is no longer a fantasy of the future, especially in the music world. Music professionals are already calling it the next tech revolution. But how will the industry and artists adapt?

In this episode:

Episode credits:

This episode was produced by Shrijan Pandey, Sar el-Khalili and our host Malika Bilal. Ashish Malhotra and Khaled Soltan fact-checked this episode.

Our sound designer is Alex Roldan. Joe Plourde mixed this episode. Our lead of audience development and engagement is Aya Elmileik, and Adam Abou-Gad is our engagement producer.

Alexandra Locke is The Takes executive producer. Ney Alvarez is Al Jazeeras head of audio.

Connect with us:

@AJEPodcasts onTwitter,Instagram,Facebook,ThreadsandYouTube

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Americans worry these ‘creepy’ deepfakes will manipulate people in 2024 election, ‘disturbingly false’ – Fox News

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Americans in Silicon Valley are predicting advanced artificial intelligence could significantly influence and manipulate voters in the 2024 elections, with a potential for "disturbingly false" political advertising to push agendas.

"I've seen some hilarious videos and some concerning ones where it's getting too realistic," Travis, of San Jose, Cailfornia, said. "It's a little creepy."

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As advanced artificial intelligence applications proliferate across industries, the rapidly evolving technology has raised concerns about its ability to manipulate elections, with some 2024 presidential campaigns already utilizing the tool. Former President Donald Trump's presidential campaign, for example, triggered an uproar on X after using artificial intelligence to recreate Florida Gov. Ron DeSantis 2024 presidential announcement with fictional guests, including billionaire Democratic donor George Soros, World Economic Forum Chair Klaus Schwab, former Vice President Dick Cheney, Adolf Hitler, the devil and the FBI.

"I think it will worsen the circumstances with fake postings," Richard said. "I think a lot of the political advertising has the potential to become disturbingly false using AI. It's gradually improving significantly, and I think there's a tremendous motivation for people trying to push a particular agenda."

Former President Donald Trump, right, and Florida Gov. Ron DeSantis' 2024 presidential campaigns have traded blows using AI-generated content. DeSantis' campaign posted an AI-generated image of Trump affectionately hugging Anthony Fauci. The Trump campaign also used AI to recreate DeSantis' 2024 presidential announcement with fictional guests, including Adolf Hitler. (AP Photo, File)

WHAT IS ARTIFICIAL INTELLIGENCE (AI)?

Claire said voters could have trouble differentiating real and AI-generated content.

"People aren't going to be able to distinguish between AI and real reporting," Claire told Fox News. "What's fake and what's real was already kind of an issue with 2020, and I think it's going to continue to get worse in 2024 because some of it is extremely convincing."

Richard says advanced artificial intelligence could worsen the amount of AI-generated content used in campaign ads. (Fox News/Jon Michael Raasch)

FEAR AT 10: SENATORS' CONCERNS SPIKE ON IMPACT OF ARTIFICIAL INTELLIGENCE TO CHANGE VOTES IN 2024

DeSantis' campaign also used AI-generated audio and video to criticize Trump's policies, including one portraying a fictional image of Trump hugging Anthony Fauci posted on social media in June.

Another campaign ad, created by a PAC supporting DeSantis, used AI-generated audio to mimic Trumps voice criticizing Iowa Gov. Kim Reynolds. The AI voice appears to have been based on comments Trump wrote on Truth Social but never said aloud.

Steve fears AI will lead to voter manipulation in the 2024 election. (Fox News/Jon Michael Raasch)

"I think AI will be used to manipulate people into doing things that they're not quite sure they wanted to do," Steve said. "That's going to be a big impact that goes under the radar. I think public opinion will be shaped in a large way."

Ken said Americans will have to learn to distinguish between real and deceptively manipulated campaign ads when making important voting decisions.

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"I think there's going to be a period where we're going to be influenced by what AI presents," he said. "It's going to take some time for people to kind of wise up and understand that we live in a different world."

"You can't really trust what you see and hear anymore," Ken continued. "It's going to be interesting how this shapes how this shapes us."

Ramiro Vargas contributed to the accompanying video.

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Americans worry these 'creepy' deepfakes will manipulate people in 2024 election, 'disturbingly false' - Fox News

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One on One: Economics, artificial intelligence, and the nation’s wealth – The Daily Herald

The late Davidson economics professor Charles Ratliff was a great teacher who almost led me to a beginning understanding of economics.

Although not accomplishing that objective, he left me with a love of the subject and a long-standing interest in learning more. As a part of this course, Ratliff taught us the history of economic thought.

He used Paul Samuelsons text, titled simply Economics, as our guide. Samuelson, like Ratliff, was a Keynesian, which meant, I think, that when a nations economy is struggling, it is a time for the government to pour money into the economy to stimulate activity.

It was, and still is, hard for me to understand how all that works, but I am comforted by the fact that others also have trouble dealing with economic theory.

A few years ago, I tried to get Professor Ratliff to help me understand how these things work. I asked him, How does the government pouring money into the economy help it grow?

Well, Ratliff said, that depends on what you mean by money.

I am still struggling about his response to my query. I thought of it again the other day when I read about the death of another noted Keynesian, Robert M. Solow, the winner in 1987 of the Nobel Memorial Prize in economic sciences.

According to his obituary by Robert D. Hershey Jr. and Michael M. Weinstein in the Dec. 21, 2023, edition of The New York Times, He won the Nobel for his theory that advances in technology, rather than increases in capital and labor, have, been the primary drivers of economic growth in the United States

Before Solow set out a different approach, it was generally accepted that economic growth was determined by the growth of capital and labor. But according to his obituary, Solow could not find data to confirm that common-sense presumption.

What then does determine growth? Entrepreneurs? Geography? Legal institutions? Something else?

Solow told the writers who, years in advance, were preparing his obituary, I discovered to my great surprise that the main source of growth was not capital investment but technological change.

What kind of technological change would lead to growth? The telephone? The steam engine? The computer?

The technological change that promises to grow the current economy is, of course, Artificial Intelligence or A.I.

Already, A.I. is taking on tasks that would be impossible or prohibitively expensive if using ordinary research tools.

Given an assignment to write a news article that would include a history of government regulation of atomic energy, for instance, A.I. could sort the text of every newspaper report ever written on the topic and select the relevant material. Then, it could instantly assemble a news article that would have taken a reporter hundreds of hours, days or even years, to research and write.

Recognizing the value of A.I.s contribution, there is still a problem. Where does A.I. get the newspaper texts and other necessary information to assemble and write its report? Who, if anyone, must it compensate for the use of these materials?

The New York Times took an important step towards finding an answer to this question last week when it sued A.I. entities, including OpenAI and Microsoft, owners of the popular A.I. program ChatGPT.

The lawsuit accuses the defendants of seeking a free ride on The Timess massive investment in its journalism and alleges that OpenAI and Microsoft are using The Timess content without payment to create products that substitute for The Times and steal audiences away from it.

However the lawsuit turns out, A.I. is here to stay.

I wish Professor Solow were here to explain how and how much it could increase the nations wealth.

D.G. Martin, a lawyer, served as UNC-Systems vice president for public affairs and hosted PBS-NCs North Carolina Bookwatch.

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A.I. (Artificial Intelligence) is not the Problem: We Need More Diverse and Inclusive Humans in the Tech Sector – Insight News

Just a few days after I posted a version of this column on @Medium, the Chronicle of Philanthropy had this story as its lead story, A.I. Could Prove Disastrous for Democracy: How Can Philanthropy Prepare? (https://www.philanthropy.com/article/a-i-could-prove-disastrous-for-democracy-how-can-philanthropy-prepare).

The author, #GordonWhitman, asserted that we need less A.I. in the world of philanthropy and more human connection. Why? Because donors cant discern the difference between an A.I. generated voice and a real person begging for money.

What he fails to acknowledge is that humanspeopleare a major part of the problem with A.I.

Less than a week ago, on #LinkedIn, I read this post about an #NPR story: @Carmen Drahl, AI was asked to create images of Black African docs treating white kids. Howd it go? (https://www.npr.org/sections/goatsandsoda/2023/10/06/1201840678/ai-was-asked-to-create-images-of-black-african-docs-treating-white-kids-howd-it-?). My #blackanthropology colleague, Dr. David Simmons (https://www.linkedin.com/in/david-simmons-87743a4/ ), responded to the article with this observation about the real danger behind #AI, and also an appeal:

AI still relies on humanscomplete with their biases and assumptions, both implicit and explicit. Lets work towards creating AI systems that are more inclusive.

The Oxford University researcher that Drahl wrote about, Dr. Arsenii Alenichev (https://www.ethox.ox.ac.uk/team/arsenii-alenichev ), had tried an experiment. The results he and his team of scientists reached over and over again proved that our fear should not be that #artificialintelligence will take over and ruin the human world. After all, A.I. is constrained by its data parameters.

What we do need to fear is how the coding and input of data into A.I. are done by human beings, who come already socialized and filled with cultural biases! Drahl explains,

[Alenichevs]goal was to see if AI would come up with images that flip the stereotype of white saviors or the suffering Black kids [He stated],We wanted to invert your typical global health tropes.

They realized AI did fine at providing on-point images if asked to show either Black African doctors or white suffering children. It was the combination of those two requests that was problematic.

Racial and Gender Inequality in Silicon Valley

What Alenichev learned was thisa computerized intelligence cannot imagine or configure anything beyond its programmers imagination. Artificial intelligence is locked into the social and cultural norms and conditioning of the people who are feeding it the information. And, while sometimes information can be neutral, more often than not, it is also accompanied by interpretations and value judgments.

This, if a (white) programmer cannot conceive of a Black doctor helping white suffering children, then that bias is coded into the A.I. In short, any machine (or A.I.) is only as smart (or empathetic) as the people who initially coded and input the data.

According to UC Santa Barbara sociologist and ethnographer Dr. France Winddance Twine, we probably shouldnt hold our breath for an inclusive A.I. , as Simmons requestedaint gonna happen.

Winddance documents in her latest book, Geek Girls: Inequality and Opportunity in Silicon Valley, how implicit and explicit racial biases and gender inequality abound in Silicon Valley! She concludes the book with this statement:

The technology sector is unjust and not yet a vehicle for economic justice and social mobility for everyone.

Whats an A.I. to do?

So, whats an A.I. to do?

Well, we know that artificial intelligence is not autonomous. It cannot create anythingat least not at this moment in timeoutside of the existing information stored within its database.

A.I. can reconfigure and make up factsand it can also plagiarize and create false data by linking things together and stealing online content from human researcher and writers as Matt Novak pointed out in a May 2023 Forbes article about the new Google search engine: Googles New AI-Powered Search Is A Beautiful Plagiarism Machine.

At this moment in time, A.I. does not have its own autonomous scarecrow brain; it simply mimics and expands upon its existing program.

It is true, if we believe Isaac Asimov in his Robot series, and the Will Smith movie I, Robot, A.I. could become a supercomputer, but it cannot, as Azmera Hammouri-Davis, M.T.S says #breaktheboxes of its human programmer.

Our greatest fear should not be of an autonomous A.I.like Hal the Computer in Space Odysseythough A.I.s are destined to create massive unemployment for laborers who are unskilled in use of technology. As the Chronicle of Philanthropy reminds us, they can be made to sound human.

Nonetheless, our greatest fear MUST be of A.I.s should be that they are being supercoded with #whitesupremacy ideology and #genderinequality data.

And, dont act surprised! This is not new stuff. Since 2018, groups like the Critical Code Studies Working Group at the University of Southern Califorinia, now called The Humanities and Critical Code Lab (HaCCS), led by Mark Merino, have been looking at issues of inequality in coding for several years.

Indeed, I discovered this fact some time agobefore Google began reading critiques of its coding practices. What I found was that if you typed #blackbeauty into the google search engine, all that appeared were images of horses, like in the movie Black Beauty.

Conversely, if you typed in #beauty, only images of #whitewomen appeared. Since then, Google has become more #WOKE and updated some images in the search parameters connected to these words. But whiteness still prevails.

These are just a few of the known biases coded into #A.I. historicallyand the recent experiments by Dr. Alenichev proves that racial stereotypes are still prevalent, such that in the coded minds of A.I. (and its programmers), all the suffering children are Black and nonwhite and ALL the medical doctor saviors are white.

In the case of Black doctors treating white suffering children, such biases and assumptions against this as a possibility are rooted in #whitesupremacy ideology and beliefs;

Disbelief in the professionalism of Black people are part of the tacit anti-Blackness knowledge around which most white people are socialized in America, and Europeans globally.

These human beliefs and biases will not change/cannot change until medical schools are more diverse, and Silicon Valley becomes equal, ungendered, diverse, equitable, and inclusive!

It is not the A.I. that needs a #DEI reboot, but the human beings that code them sure do!

But. dont hold your breath for immediate change.

The current climate of anti-CRT, anti-Blackness, and attempts to whitewash America history and negate the history of hundreds of years of human enslavement, suffering, and ongoing Black and Indigenous generational trauma, disparities, and inequality (https://www.politico.com/news/2023/07/24/florida-desantis-black-history-education-00107859) suggests little hope for change towards a more socially and racially intelligent A.I., based on the current state of biases in the tech industry in Silicon Valley and the mindset of its human coding professionals.

(c) 2023 Irma McClaurin

An earlier version published on Medium, Oct 20, 2023 (https://irmamcclaurin.medium.com/ai-is-not-the-problem-we-need-more-diverse-and-inclusive-humans-in-the-tech-sector-7cbec2ad2b77)

Dr. Irma McClaurin (https://linktr.ee/dr.irma/@mcclaurintweets) is a digital columnist on Medium, Culture and Education Editor forInsight News, and Ms. Magazine author. She is the founder of the Irma McClaurin Black Feminist Archive at the University of Massachusetts Amherst.An activist Black Feminist anthropologist and award-winning author, recognized in 2015 by the Black Press of America as Best in the Nation Columnist. She is a past president of Shaw University and recently was featured in the PBS American Experience documentary on Zora Neale Hurston as an anthropologist. A collection of herInsight Newscolumns,Justspeak: Reflections on Race, Culture & Politics in America,is forthcoming. She is also working on a book manuscript on Zora Neale Hurston and anthropology as well as a collection of short vignettes entitled Confessions of a Barstool DIVAH.

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A.I. (Artificial Intelligence) is not the Problem: We Need More Diverse and Inclusive Humans in the Tech Sector - Insight News

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Research Review: GPTScan: Detecting Logic Vulnerabilities in Smart Contracts by Combining GPT with – DataDrivenInvestor

Discover how GPTScan combines GPT models with program analysis to revolutionize smart contract security. Learn how it detects logic vulnerabilities with over 90% precision, reducing financial risks in decentralized finance (DeFi). Explore its implications and potential impact on blockchain security.

The research paper GPTScan: Detecting Logic Vulnerabilities in Smart Contracts by Combining GPT with Program Analysis by Yuqiang Sun et al., published in December 2023, addresses a critical issue in the realm of decentralized finance (DeFi) the vulnerability of smart contracts. This paper is significant as it introduces GPTScan. This novel tool leverages Generative Pre-training Transformer (GPT) models with static analysis to identify logic vulnerabilities in smart contracts, an area where current tools falter.

The authors observe that current analysis tools primarily focus on vulnerabilities with fixed patterns, like re-entrancy or integer overflow, overlooking those related to business logic. The developers created GPTScan to address this, blending GPTs code understanding capabilities with static program analysis.

Key aspects of GPTScan include:

GPTScans integration of GPT and static analysis is commendable, significantly reducing false positives and increasing precision in detecting logic vulnerabilities. Breaking down vulnerabilities into scenarios and properties is innovative, enhancing the tools ability to understand and analyze complex smart contract code.

However, the reliance on GPT-3.5 poses challenges due to its inherent limitations, such as handling large datasets and the potential for generating ambiguous answers. Additionally, while GPTScan shows high precision in specific contexts, its performance may vary with more diverse and complex smart contracts.

GPTScans approach could revolutionize how smart contracts are audited and maintained, significantly reducing the risk of financial loss due to vulnerabilities. It can become a standard tool in smart contract development and auditing processes. Furthermore, the methodology could inspire similar approaches in other areas of software security, leading to more robust and secure systems.

GPTScan is a groundbreaking tool addressing a critical smart contract security gap. Its novel integration of GPT models with static program analysis significantly advances the detection of logic vulnerabilities. While it demonstrates impressive results, further exploration, and development are needed to fully realize its potential across various smart contract platforms and scenarios. Nevertheless, GPTScan represents a pivotal step towards more secure and reliable DeFi applications.

For more blockchain, cybersecurity, and cybercrime research, visit Blockchain Insights Hub.

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Research Review: GPTScan: Detecting Logic Vulnerabilities in Smart Contracts by Combining GPT with - DataDrivenInvestor

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Ethereum: Unleashing the Power of Smart Contracts and Decentralized Applications – Medium

Photo by DrawKit Illustrations on Unsplash

Ethereum: Unleashing the Power of Smart Contracts and Decentralized Applications

Ethereum, often dubbed as the world computer, is a decentralized, open-source blockchain platform that goes beyond the capabilities of traditional cryptocurrencies. Conceived by Vitalik Buterin in late 2013 and developed in 2015, Ethereum introduces a revolutionary concept beyond mere digital currency, enabling the creation of decentralized applications (DApps) and smart contracts.

Smart Contracts: At the heart of Ethereum lies the concept of smart contracts. These are self-executing contracts with the terms of the agreement directly written into code. Smart contracts automate and enforce the execution of contractual agreements without the need for intermediaries, bringing transparency and efficiency to a myriad of industries, from finance to real estate.

Decentralized Applications (DApps): Ethereum serves as a robust platform for the development of decentralized applications, offering a decentralized and tamper-proof environment. DApps operate on the Ethereum blockchain, providing users with enhanced security, immutability, and censorship resistance. These applications span various sectors, including finance, gaming, supply chain, and more.

Ether (ETH): Ether, the native cryptocurrency of the Ethereum platform, fuels the network and serves as a unit of value within the ecosystem. Beyond being a digital currency, Ether is also used to compensate participants for computational efforts on the network, securing the blockchain through a process known as mining.

Blockchain Consensus Mechanism: Similar to Bitcoin, Ethereum initially utilized a proof-of-work (PoW) consensus mechanism to secure its blockchain. However, the network is transitioning to Ethereum 2.0, a major upgrade that introduces proof-of-stake (PoS). This shift aims to improve scalability, energy efficiency, and overall sustainability.

Decentralized Finance (DeFi): Ethereum has been a driving force behind the rise of decentralized finance (DeFi). Through smart contracts, Ethereum facilitates a wide array of financial services, including lending, borrowing, and trading, all without the need for traditional intermediaries like

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Ethereum: Unleashing the Power of Smart Contracts and Decentralized Applications - Medium

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Alchemy reports deploying over 1 million smart accounts – crypto.news

In the fourth quarter of 2023, Alchemy saw an unexpected surge in ERC-4337 smart contracts, creating over 960,000 accounts.

This explosion of interest underscores the zeal of app developers to tackle user experience challenges, per Alchemys report.

Will Hennessy, Alchemys account abstraction lead, expressed his surprise, attributing the rapid adoption to the Ethereum Foundations deployment and developers eagerness to address user experience challenges.

The Ethereum Foundation just deployed ERC-4337 contracts in March 2023, so this early adoption is faster than expected, he said via his personal X account. It shows how hungry app developers are to solve [user experience] problems like gas sponsorship.

Account Abstraction was a HUGE narrative in 2023.

Over 960,000 new ERC-4337 accounts were created in Q4, representing 53% of the total 1.8 million deployments to date.

Let's look at how we did as an industry on other key metrics

Report by @0xKofi pic.twitter.com/blNoBnogV6

Different from traditional wallet accounts, smart accounts let users create user operations instead of just transactions. According to Hennessy, this innovation shows how hungry app developers are to solve [user experience] problems like gas sponsorship.

This feature improves efficiency, especially in trading and gaming. ERC-4337 introduces sponsored transactions, allowing entities to cover gas fees for users, which Hennessy highlights as a departure from current methodology, where fees are paid exclusively in the networks native currency.

This standard also improves security and convenience through multi-signature transactions and simplified account recovery, marking a significant step towards making web3 more user-friendly. Hennessy emphasizes that account abstractions role in facilitating the easy adoption of web3 apps will continue to attract a diverse user base.

Account abstraction makes it easy for anyone to start using a web3 app, he said. By lowering the barrier to entry with social login and gas sponsorship, apps are able to onboard more users, including those who might have lower intent.

User operations by bundlers saw a substantial 194% increase in Q4, driven largely by apps such as Grindery, FanTV, and Cyberconnect.

Hennessey adds that current retention is primarily determined by how useful the application is. Theyre working on new features to continually engage users.

The introduction of paymasters, allowing gas fees to be paid in ERC-20 tokens, has proven popular, covering an estimated $1.16 million in gas fees.

Hennessey emphasizes that flexibility around transaction fee payment remains a popular demand from users.

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Alchemy reports deploying over 1 million smart accounts - crypto.news

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