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Japanese tokenized deposit network DCJPY to launch mid-2024 – Ledger Insights

Today DeCurret, the operator of Japanstokenized depositnetwork DCJPY, announcedplansto commercialize its offering in July 2024.Since 2020, a digital currency forum of over 100 Japanese institutions and enterprises have explored proofs of concept (PoCs) for various use cases. DeCurret raised$62 millionin funding in 2021, including backing from MUFG, SMBC and SBI Holdings. Mizuho Bank and Japan Post are also forum participants, meaning Japans big four banks are involved.

However, thereporton the DCJPY published today does not reference any corporate participants who have committed to launch on the network. It outlines several consumer oriented use cases, including retail in-store usage, to buynon fungible tokens, and consumercarbon credits. All of them have programmable money elements.

Separately, it announced the first concrete use case. It is partnering with the Internet Initiative Japan (IIJ) and GMO Aozora Net Bank, which will provide a digital currency. IIJ will join the Japan Electric Power Exchange (JEPX), allowing it to convert environmental values into digital tokens to be settled using DCJPY.

Work on DCJPY preceded Japansstablecoinlegislation. And two of the three stablecoin options involve banks. Commercial banks can issue stablecoins backed by deposits. And trust banks can hold reserves on behalf ofthird party stablecoin issuers. In contrast, DCJPY creates a network of interoperabletokenized deposits.

DeCurret Director Eijiro Katsu (formerly deputy Finance Minister) spoke about the benefits of DCJPY. These include the efficiency of business processes and the entire financial system with smart contracts, but it also enables businesses to utilize all data stored in the blockchain. Hence the benefits include instant settlement, traceability and transparency, as well as supporting new business models.

The DCJPY platform involves more than digital currencies. It envisages two zones as separate blockchain networks. One is a financial zone where banks issue deposit tokens and the money transfers take place. Business zones are separate DLT networks. For example, a metaverse zone, an NFT zone and an environmental value zone. It mentions security tokens but not a security token zone. Thats despite a heavy weight working group on the topic including Nomura, Daiwa Securities, JPX and the Osaka Digital Exchange.

Tokenized assetsof any sort can be issued in the business zones. Smart contracts are executed and asset transfers take place on the business network. But not payments. The asset transfers are synchronized with payments in the financial zone, which is where banks mint, burn and transfer tokens using open banking APIs.

DCJPY has been developed on the premise of a multi-bank system in which multiple banks use a common settlement infrastructure (Financial Zone), said Toshihide Endo, Senior Advisor, Digital Currency Forum and former Commissioner at the Financial Services Agency. Business entities using the Business Zone will be able to conduct transactions without being aware of their bank, creating an organic connection among the customers of each bank and expanding the network geometrically.

The (Cosmos) IBC framework is used for blockchain interoperability. In turn, the business zones can link to external systems and networks. And the financial zone can be linked for payments on external networks.

Banks settle up amongst themselves bilaterally by netting all transfers once a day.

Business smart contracts involve two types. One is the user asset contract, which defines the nature of an asset. For example, that might be an NFT, a carbon credit or an insurance policy. Separately there is a money contract, which can trigger functions in the asset contract, such as a transfer function or burn the token.

However, some aspects were less clear in the paper. For example, are all business zones permissioned? Who operates the nodes? And how is the network governed? We hope to answer these issues soon.

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Hey, Bike Haters, You Will Lose the Culture War You’re Starting … – Streetsblog USA

Last month, British Prime Minister Rishi Sunak released his Plan for Motorists, which reads like it was written by a car. In it, Sunak proposes to rid his polluted, congested nation of so-called anti-motorist measures such as 20 mph speed limits, dedicated bus lanes, and automated camera enforcement. Sunaks party has also bought into conspiracy theories that 15-minute cities, built so everything you need is within a 15-minute walk or bike ride away, are prisons for car owners.

In New York, politicians of all stripes are ratcheting up anger over the so-called (and eponymous podcast title) war on cars. Council Member Bob Holden (D-Queens) decried the arrival of Citi Bike in central Queens as a salvo from the fanatical anti-car movement, and Council Member Vickie Paladino (R-Queens) uses her office Twitter account to blast congestion pricing and even the transition to electric vehicles amount as Democrat-led cash grabs. Meanwhile, companies like Broadway Stages are flexing their muscle to get the mayors chief adviser who boasts that she hasnt ridden the subway in decades to reverse long-established safe street redesign protocols.

Its worth reminding oneself that this is the response to measures that aim to: a) make roadways safer; b) delay the worst effects of climate change; and c) make it easier to simply breathe outside. Such proposals barely ask Americans to make even a small sacrifice in the grand scheme of things, but they do seek to encourage people to drive a little bit less, to drive a less-polluting vehicle, or to try (keyword: try) to give people the option of not driving at all.

In return, people who even mildly question the primacy of the automobile are met with a vitriolic backlash, one whose vehemence shows how deeply people associate themselves with the car. Initiatives that use less than 1 percent of a citys (mostly free) parking spots for something that isnt the private storage of vehicles on public space like bikeshare, outdoor dining or even getting disgusting trash out of the way of pedestrians are labeled a war on our way of life. (Or as conservative commentator Ann Coulter put it: $0 for the Wall. $5 Billion for bike paths.)

This car culture war will likely get worse, as Sunak, Holden, Paladino and their ilk show. Cities cant deliver on their climate goals without getting cars off the road. Cities cannot succeed in solving Americas road-death crisis without calming streets, reducing car speeds and creating more space for cyclists and pedestrians.

Meanwhile, Millennials and Gen Zers, who will soon dominate policy-making circles, want walkable communities and lives without cars. Thats good news for the future, but sets up a clash with the naysayers who still have a grip on power (and community boards).

But the revanchists should be aware: their culture war risks backfiring. The abortion fight is a telling example. Conservatives who pushed to repeal Roe v. Wade didnt expect people to respond by voting to preserve abortion rights, even in deep-red states. This was always one of Donald Trumps great flaws: by making everything political, you end up energizing a lot more people (who are usually apolitical) against you.

The same can be said about cars. Theres a clear demand for safer streets and better mobility options: bike lanes lead to more cycling, while pedestrianization leads to more walking (and spending). Polls often capture a wide swath of the population that would bike or walk more if conditions were safer or more pleasant. If opponents seek battles to prevent the changes we need, they shouldnt be surprised when people of all backgrounds show up in support.

Change, of course, is difficult and cars are potentially poised for the loudest outcry. You might not know someone who had to get an abortion, whose sexual identity or orientation are under attack, or whose school district banned fact-based history instruction, but its almost an absolute certainty that youve been in a car. In a recent interview, Sunak said exactly that when dodging questions about a major high-speed rail project that he cancelled: The vast majority of the journeys that people make are in their cars, he said, suggesting that trying to change that is futile and politically suicidal.

Weve been here before. (Time and time again.) In 1972, an angry taxi driver in Amsterdam was captured on video ripping down barricades for a kids-only street and exerting his right to drive anywhere at any time. Residents persevered, pushing the Dutch capital to become a hallmark of people-friendly streets (with still plenty of cars to go around) as the rest of the world gobbled up more space for the internal combustion engine.

In many ways, countless cities today are finally arriving at their 1972 Amsterdam moment, stuck between a gurgling culture war that threatens to enrage and enlist countless drivers by convincing them that their parking is more important than the Earth or a childs survival and a movement to reclaim space for everyone else.

Local leaders will just have to decide whether thats actually an equal fight.

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Join us! The hottest topic in legal ops: Artificial intelligence – Wolters Kluwer

This post is part of our ongoing serieson the sessions we will offer at the ELM Amplify 2023 user conference from October 24 - 26 in Bonita Springs, Florida.

Thanks to the recent introduction of generative AI tools, artificial intelligence is the most talked-about trend in the business world generally and in legal operations specifically. ELM Amplify will feature several sessions that delve into various aspects of AI and how it can help those working in corporate legal and insurance claims departments.

Our programming will include training and panel discussions with practical advice on how you can use AI now to improve efficiency and results. In addition, our presenters will talk about the potential for future developments that will leverage AI for even more optimization within legal.

Youll hear about the latest AI trends, solutions, and best practices in these AI-centered super-sessions:

With data scientists and legal experts who collaborate to create cutting-edge, AI-driven legal operations management solutions, Amplify 2023 will give you an insiders view of AI's contribution to legal ops.

Visit theELM Amplify 2023website to register and get details on the agenda and the event FAQs. With free training, panel discussions, roundtables, and thought leadership from legal ops experts, Amplify will be a fun and enriching event with abundant opportunities for learning and networking.

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WHAT’S ARTIFICIAL, WHAT’S NOT? | WANDERING IN A RUNNING … – Toni Reavis

Kelvin Kiptum in world record run in ChicagoTigist Assefa glories in her new world record in Berlin

Newrecords ennoble us all, for they represent the best of who we are. And when they come in our own time, some of that greatness attaches itself to us, which is why we yearn to see records fall and barriers broken. Not for what they are of themselves, but for what they mean with us having watched, as witnessing validates the action itself.

Yet the response to the new marathon records of recent weeks in Berlin andChicago from cheers to jeers has shown the same wide variance as the response to the new shoe technology by the athletes.

AsRoss Tucker,PhD in Exercise Physiology,co-host of The Real Science of Sport podcast,wrote toLetsRun.coms Robert Johnson in response to Tigst Assefasworld record in Berlin:

I truly wish the authorities had acted to prevent this entirely foreseeable situation, for a few reasons. The main one is that the range of responses to them (super shoes) is so large (from plus 11% in running efficiency to minus 11%) that we cannot sit with any confidence and evaluate performances between different athletes independent of this nagging doubt over what the shoes do. That isthe differences between athletes is smaller than the differences made by the shoe, to the same athlete, and between different athletes.

Isnt the entire purpose of the enterprise to compare athletes on a level playing field? And then to compare them with those who came before? It is that through-line of apple-to-apple comparison that actually creates a lasting sport.

Now the playing field has been tipped, and continues to tip, perhaps irreparably, to where what came before no longer relates. And even that would be fine, if todays athletes were playing on equal footing. But theyre not either.

Today, person X in super shoe A wins in a record breaking time. But that same person in super shoe B maybe doesnt respond as well and doesnt make the podium at all. Is that how its supposed to work?

Coming late to its oversight Nike secretly introduced the first super shoes in 2016 World Athletics amended its rules regarding shoe midsole height on January 30, 2020, grandfathering the maximum stack to 40mm. But the shoe designers didnt stop innovating the midsole material as WA formed a Working Group to determine future policy.

A December 2021 World Athletics release further stated, The major and central issue the Working Group on Athletic Shoes had been exploring is a long-term sustainable and implementable solution for athletic shoes which balances innovation and fairness.

That is a perfectly sound oversight goal, right in line with what we ask such a governance to do.

The Working Group considered options within a framework of measuring performance advantages of the current technology in athletic shoes, including energy return. While this work has merit,a maximum energy return has not been included in the rules and regulations, given the variables involved and the potential impact on shoe manufacturers in its implementation.

You have to read the underlined portion twice to convince yourself you read it correctly.

A maximum energy return has NOT been included in the rules and regulations, given the variables involved and the potential impact on shoe manufacturers in its implementation.

Thats an almost a stunning admission. The variables are what skew the outcomes! The variables are what make regulation necessary. Midsole height is only one of the critical factors to determine. Energy return, along with running economy, is the holy grail of the new technology, and officials leave it out of their regulations given the variables involved and the potential impact on shoe manufacturers? What about the impact on the sport?

I suspect a great number of people have long believed the sport has been beholden to (in the pocket of) the major shoe companies for far too long. But that December 2021 release stated the quiet part out loud.

In short order, the Nike prototypes worn byKelvin Kiptum in Chicago seemed to have trumped the Adidas Adizero Adis Evo 1 shoe worn by Tigst Assefa in Berlin with its new lightweight midsole foam and rocker technology. Three weeks ago Adidas held the newest tech, putting it ahead of the curve of the older Nike Vaporflys. Now Nike has answered. Thats how fast the innovations are coming.

***

Why are performance-enhancing drugs not allowed in competition? Because their use alters the basic athlete versus athlete equation and skews the outcome. Well, thats what the new super shoes are doing, too.Such innovation may be fine for exhibitions likeEliud Kiochoges Sub2 and INEOS 1:59 attempts in Monza 17 and Vienna 19. But they should not automatically be fine for the competitive arena where a foundational level of equal footing must prevail.

Running isnt alone. Weve seen a variation of the same theme in Formula One racing in recent years.

Between 2008 and 2020, Lewis Hamilton won a record-tying seven F1 series championships before the F1 bosses changed the cars ground-effects formulation for the 2022 season. Next thing you know, Hamilton and his Mercedes were nowhere to be found, and Max Verstappen in his Red Bull ride became the new F1 king. He just won his third straight series championship in Qatar last week with his record 14th win of the season.

But before Verstappen and Hamilton, Red Bulls Sebastian Vettel won four championships in a row (2010-2013), and Renaults Fernando Alonzo won in 2005-2006 to end the reign of the Michael Schumacher-Ferrari combination that had dominated for so long.

We went from Schumacher dominating to Vettel dominating to Hamilton dominating to Verstappen. When the turnover in driver ascendance is so cut and dried, it suggests the difference in outcome is being determined by the cars set up rather than the drivers skills. Did Hamilton suddenly become a poor driver? What if they put Yuki Sonoda in the Max Verstappen Red Bull car and Verstappen in Sonodas Alphatauri?

Thats the problem. Were trying to determine the difference in drivers capabilities, not those of their engineers.

Tristan Harris, cofounder, Center for Humane Technology, appeared onBill Mahers Real Time show Friday night on HBO MAX discussing advances in artificial intelligence (AI). It rung a bell in my mind.

People always say we freak out about the newest technology, but this is different. This is ongoing, and competitive, and market driven. Human intelligence is one way to think about it.

It used to take years of study and intelligence and cognitive labor to write a movie script or a book or to know how to synthesize a biological weapon, said Harris. These are all forms of cognition that took human beings years to develop. Now AI has dropped that cost and effort, and just like fossil fuels, the people who jump on that train first get benefits and efficiencies compared to those who dont.

In running, besides talent, it used to take years of development to run a world-class marathon. Olympic champion Frank Shorter said it, You dont run 26 miles at five minutes a mile on good looks and a secret recipe.

But now, top performers put on a pair of the new super shoes and their training exponentially improves, because they can train harder, with less rest, because the pounding is not as great, and the recovery is that much faster. So their fitness improves along with their times in races. But not because of who they are, but because of what theyre wearing on their feet. Shoe intelligence has shortened everything, from rest periods to practical race distance. Making this a different era altogether.

In response to an email thread between past champions Bill Rodgers, Amby Burfoot, Jack Fultz, and Bob Hodge, I wrote:

Re: records. Perhaps, understandably, they took the concept of world records, meant for the measured confines of a track, and transposed it to the undulations and variables of the roads. It makes no sense to have world records on the roads where the conditions will never be apples versus apples, though, even on the track, with different weather conditions and track surfaces, its more like Macintosh versus Granny Smith, but at least theyre still apples.

There should be course records for road races with everyone simply understanding that the 2011 Patriots Day in Boston was as unique as was the 2018 day on the other end of the spectrum. That we can live with. But this whole focus on time has ruined the competitive sport and created an ongoing push to use performance-enhancing drugs and now performance-enhancing shoes to reach those records. Toward what end, I do not know. In any case, it was good to see Yuki (Kawauchi) pushing the comp in todays Japanese Olympic Trials, rather than the time.

As Tristan Harris said, With AI, we keep scaling and releasing advancements faster than society can consciously absorb them.

Thats whats happening with the super shoes. In both cases, our basic understanding of underlying assumptions has become clouded. We dont know what to believe. Is that an actual picture? Or did AI generate it? Is that an actual record? Or did super shoes enable it?

AI has the promise, but it also has the peril, concluded Mr. Harris. It will give us drugs that save people from cancers and help us in many other ways. Problem is, you also have CEOs saying it could wreck everything, too.

END

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Artificial intelligence the next ‘super application’ Vertiv – ChannelLife New Zealand

Critical digital infrastructure and continuity solutions provider Vertiv took the stage at the recent Canalys Forums 2023 drawing insights from international experts on key trends like Artificial Intelligence (AI).

Canalys Forums is a cutting-edge technology event that brings together industry leaders, innovators and experts to explore the latest news, forecasts and strategies in the IT channel market.

Vertiv participated in two panel presentations in the event Expert Hubs, with Andrea Ferro, VP channel, IT and edge applications for EMEA and Jesper Hersbro, EMEA channel distribution director. Both shared their perspectives on current topics that are closely related to data centres and the channel.

Specifically, Andrea Ferro spoke about the convergence of AI in the cloud in the Expert Hub titled "AI meets the Cloud," where he highlighted the importance of AI as the next super application that will significantly drive cloud consumption. He also emphasised that its impact will not be limited to the cloud alone, forecasting noticeable effects for on-premise and colocation data centres.

"Cloud companies are strategically positioned to address this increased demand for AI services, with the help of high-density cooling and power solutions," Ferro says.

"Their scalable infrastructure and expertise make them ideal partners for organisations looking to harness the power of AI without the burden of managing complex on-premises solutions," he says.

"As a result, cloud service providers are well equipped not only to support this growth, but also to play a vital role in democratising AI, making it accessible to a wider range of customers and industries."

Ferro says that the synergy between AI and cloud technology will profoundly reshape the data processing and analytics landscape."

"Vertiv is continuously investing in research and development to provide innovative solutions to support the latest tech trends like AI and high-performance computing, says Ferro.

Our portfolio already comprises a range of solutions, from efficient and high-capacity liquid and immersion cooling, to smart power and dynamic grid support systems. These high-density solutions complement our wider offering which includes prefabricated modular data centres, including micro solutions for indoor deployments, is designed to support edge applications, reflecting our dedication to staying at the forefront of technological innovation."

In the second Expert Hub, "Tomorrow's partner programs", Jesper Hersbro highlighted the different types of partner programs which help drive both sales and non-sales activities, and can be more easily applied to complex sales cycles and diverse partner ecosystems.

"In Vertiv's case, our VIP incentive program tracks and rewards partners for a range of sales and non-sales activities without any reporting requirements and lets them know when they have points to redeem," says Hersbro.

This not only acknowledges their contributions, but also enables them to focus on sales rather than dealing with unnecessary administrative tasks.

Vicente Chiralt, VP of marketing for Vertiv in EMEA, adds, Every year, Canalys Forums remains the go-to gathering for the EMEA channel market.

"As gold sponsors, we take pride in actively contributing to this crucial event by sharing our expertise, while learning valuable insights from fellow experts and partners," he says.

"Being here adds depth to our understanding, helping us refine a more robust partner program.

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AI and You: The Chatbots Are Talking to Each Other, AI Helps … – CNET

After taking time off, I returned this week to find my inbox flooded with news about AI tools, issues, missteps and adventures. And the thing that stood out was how much investment there is in having AI chatbots pretend to be someone else.

In the case of Meta, CEO Mark Zuckerberg expanded the cast of AI characters the tech giant's more than 3 billion users can interact withon popular Meta platforms like Facebook, Instagram, Messenger and WhatsApp. Those characters are based on real-life celebrities, athletes and artists, including musician Snoop Dogg, famous person Kylie Jenner, ex-quarterback Tom Brady, tennis star Naomi Osaka, other famous person Paris Hilton and celebrated English novelist Jane Austen.

"The characters are a way for people to have fun, learn things, talk recipes or just pass the time all within the context of connecting with friends and family," company executives told The New York Times about all these pretend friends you can now converse with.

Said Zuckerberg, "People aren't going to want to interact with one single super intelligent AI people will want to interact with a bunch of different ones."

But let's not pretend that pretend buddies are just about helping you connect with family and friends. As we know, it's all about the money, and right now tech companies are in a land grab that's currently pitting Meta against other AI juggernauts, including OpenAI's ChatGPT, Microsoft's Bing and Google's Bard. It's a point the Times noted as well: "For Meta, widespread acceptance of its new AI products could significantly increase engagement across its many apps, most of which rely on advertising to make money. More time spent in Meta's apps means more ads shown to its users."

To be sure, Meta wasn't the first to come up with the idea of creating personalities or characters to put a human face on conversational AI chatbots (see ELIZA, who was born in the late '60s.) And it's an approach that seems to be paying off.

Two-year-old Character.ai, which lets you interact with chatbots based on famous people like Taylor Swift and Albert Einstein and fictional characters such as Nintendo's Super Mario, is one of the most visited AI sites and is reportedly seeking funding that would put the startup's valuation at $5 billion to $6 billion, according toBloomberg. This week Character.ai, which also lets you create your own personality-driven chatbots, introduced a new feature for subscribers, called Character Group Chat, that lets you and your friends chat with multiple AI characters at the same time. (Now's your chance to add Swift and Mario to your group chats.)

But using famous people to hawk AI is only fun if those people are in on it and by that I mean get paid for their AI avatars. Earlier this month, actor Tom Hanks warned people about a dental adthat used his likeness without his approval. "Beware!!" Hanks told his 9.5 million Instagram followers. "There's a video out there promoting some dental plan with an AI version of me. I have nothing to do with it."

Hanks in an April podcast predicted the perils posed by AI. "Right now if I wanted to, I could get together and pitch a series of seven movies that would star me in them in which I would be 32 years old from now until kingdom come. Anybody can now re-create themselves at any age they are by way of AI or deepfake technology ... I can tell you that there [are] discussions going on in all of the guilds, all of the agencies, and all of the legal firms to come up with the legal ramifications of my face and my voice and everybody else's being our intellectual property."

Of course, he was right about all those discussions. The Writers Guild of America just ended the writers strike with Hollywood after agreeing to terms on the use of AI in film and TV. But actors, represented by SAG-AFTRA, are still battling it out, with one of the sticking points being the use of "digital replicas."

Here are the other doings in AI worth your attention.

OpenAI is rolling out new voice and image capabilities in ChatGPT that let you "have a voice conversation or show ChatGPT what you're talking about." The new capabilities are available to people who pay to use the chatbot (ChatGPT Plus costs $20 per month.)

Says the company, "Snap a picture of a landmark while traveling and have a live conversation about what's interesting about it. When you're home, snap pictures of your fridge and pantry to figure out what's for dinner (and ask follow up questions for a step by step recipe). After dinner, help your child with a math problem by taking a photo, circling the problem set, and having it share hints with both of you."

So what's it like to talk to ChatGPT? Wall Street Journal reviewer Joanna Stern describes it as similar to the movie Her, in which Joaquin Phoenix falls in love with an AI operating system named Samantha, voiced by Scarlett Johansson.

"The natural voice, the conversational tone and the eloquent answers are almost indistinguishable from a human at times," Stern writes. "But you're definitely still talking to a machine. The response time ... can be extremely slow, and the connection can fail restarting the app helps. A few times it abruptly cut off the conversation (I thought only rude humans did that!)"

A rude AI? Maybe the chatbots are getting more human after all.

Speaking of more humanlike AIs, a company called Fantasy is creating "synthetic humans" for clients including Ford, Google, LG and Spotify to help them "learn about audiences, think through product concepts and even generate new ideas," reported Wired.

"Fantasy uses the kind of machine learning technology that powers chatbots like OpenAI's ChatGPT and Google's Bard to create its synthetic humans," according to Wired. "The company gives each agent dozens of characteristics drawn from ethnographic research on real people, feeding them into commercial large language models like OpenAI's GPT and Anthropic's Claude. Its agents can also be set up to have knowledge of existing product lines or businesses, so they can converse about a client's offerings."

Humans aren't cut out of the loop completely. Fantasy told Wired that for oil and gas company BP, it's created focus groups made up of both real people and synthetic humans and asked them to discuss a topic or product idea. The result? "Whereas a human may get tired of answering questions or not want to answer that many ways, a synthetic human can keep going," Roger Rohatgi, BP's global head of design, told the publication.

So, the end goal may be to just have the bots talking among themselves. But there's a hitch: Training AI characters is no easy feat. Wired spoke with Michael Bernstein, an associate professor at Stanford University who helped create a community of chatbots called Smallville, and it paraphrased him thus:

"Anyone hoping to use AI to model real humans, Bernstein says, should remember to question how faithfully language models actually mirror real behavior. Characters generated this way are not as complex or intelligent as real people and may tend to be more stereotypical and less varied than information sampled from real populations. How to make the models reflect reality more faithfully is 'still an open research question,' he says."

Deloitte updated its report on the "State of Ethics and Trust in Technology" for 2023, and you can download the 53-page report here. It's worth reading, if only as a reminder that the way AI tools and systems are developed, deployed and used is entirely up to us humans.

Deloitte's TL;DR? Organizations should "develop trustworthy and ethical principles for emerging technologies" and work collaboratively with "other businesses, government agencies, and industry leaders to create uniform, ethically robust regulations for emerging technologies."

And if they don't? Deloitte lists the damage from ethical missteps, including reputational harm, human damage and regulatory penalties. The researcher also found that financial damage and employee dissatisfaction go hand in hand. "Unethical behavior or lack of visible attention to ethics can decrease a company's ability to attract and keep talent. One study found employees of companies involved in ethical breaches lost an average of 50% in cumulative earnings over the subsequent decade compared to workers in other companies."

The researcher also found that 56% of professionals are unsure if their companies have ethical guidelines for AI use, according to a summary of the findings by CNET sister site ZDNET.

One of the challenges in removing brain tumors is for surgeons to determine how much around the margins of the tumor they need to remove to ensure they've excised all the bad stuff. It's tricky business, to say the least, because they need to strike a "delicate balance between maximizing the extent of resection and minimizing risk of neurological damage," according to a new study.

That report, published in Nature this week, offers news about a fascinating advance in tumor detection, thanks to an AI neural network. Scientists in the Netherlands developed a deep learning system called Sturgeon that aims to assist surgeons in finding that delicate balance by helping to get a detailed profile of the tumor during surgery.

You can read the Nature report, but I'll share the plain English summary provided by New York Times science writer Benjamin Mueller: "The method involves a computer scanning segments of a tumor's DNA and alighting on certain chemical modifications that can yield a detailed diagnosis of the type and even subtype of the brain tumor. That diagnosis, generated during the early stages of an hours-long surgery, can help surgeons decide how aggressively to operate."

In tests on frozen tumor samples from prior brain cancer operations, Sturgeon accurately diagnosed 45 of 50 cases within 40 minutes of starting that DNA sequencing, the Times said. And then it was tested during 25 live brain surgeries, most of which were on children, and delivered 18 correct diagnoses.

The Times noted that some brain tumors are difficult to diagnose, and that not all cancers can be diagnosed by way of the chemical modifications the new AI method analyzes. Still, it's encouraging to see what could be possible with new AI technologies as the research continues.

Given all the talk above about how AIs are being used to create pretend versions of real people (Super Mario aside), the word I'd pick for the week would be "anthropomorphism," which is about ascribing humanlike qualities to nonhuman things. But I covered that in the Aug. 19 edition of AI and You.

So instead, I offer up the Council of Europe's definition of "artificial intelligence":

A set of sciences, theories and techniques whose purpose is to reproduce by a machine the cognitive abilities of a human being. Current developments aim to be able to entrust a machine with complex tasks previously delegated to a human.

However, the term artificial intelligence is criticized by experts who distinguish between "strong" AI (who are able to contextualize very different specialized problems completely independently) and "weak" or "moderate" AI (who perform extremely well in their field of training). According to some experts, "strong" AI would require advances in basic research to be able to model the world as a whole and not just improvements in the performance of existing systems.

For comparison, here's the US State Departmentquoting the National Artificial Intelligence Act of 2020:

The term "artificial intelligence" means a machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations or decisions influencing real or virtual environments.

Editors' note: CNET is using an AI engine to help create some stories. For more, seethis post.

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The Coming Wave: Technology, Power, and the Twenty-first Centurys Greatest Dilemma – Next Big Idea Club Magazine

Michael Bhaskar is a writer, publisher, researcher, and entrepreneur. He is Co-Founder of Canelo, a new kind of publishing company and Europes fastest-growing independent publisher. Between 2017 and 2019 he was a consultant Writer in Residence at DeepMind, the worlds leading AI research lab. His writing has been featured in and written for The Guardian, Wired, the BBC World Service, and NPR, amongst others.

Mustafa Suleyman is the co-founder and CEO of Inflection AI. Previously he co-founded DeepMind, one of the worlds leading artificial intelligence companies. After a decade at DeepMind, Suleyman became vice president of AI product management and AI policy at Google.

Below, co-authors Michael and Mustafa share 5 key insights from their new book, The Coming Wave: Technology, Power, and the Twenty-first Centurys Greatest Dilemma. Listen to the audio versionread Michaelin the Next Big Idea App.

Over millennia, humanity has been shaped by successive waves of technology. The discovery of fire, the invention of the wheel, and the harnessing of electricity were all transformational moments for civilization. All were waves of technology that started small with a few precarious experiments but eventually broke across the world. These waves also will follow a similar trajectory. Breakthrough technologies were invented, delivered huge value and then proliferated, becoming more effective, cheaper, and more widespread. They were eventually absorbed into the normal, ever-evolving fabric of human life. Proliferation like this is the default, and going forward, there are compelling reasons to believe that will be true again. We are about to cross a critical threshold in the history of our species. This coming wave of technology is poised to be the most transformational in human history.

Built around the general-purpose technologies of AI and synthetic biology, this wave is one of nothing less than intelligence and life. In just a few years, for example, AI models have gone from hundreds of millions to trillions of parameters, a core measure of a systems complexity and size. Chap GPT and GPT4 took the world by storm as the fastest proliferating consumer technologies in history. AI is moving forward more quickly than even industry experts can track. And now this exponential change is expanding to biotech, robotics, quantum computing, and new energy sources. The cost of sequencing DNA, for example, has collapsed. We also have a growing ability to synthesize it, write the code of life, and create new organic forms. So understanding and reckoning with this wave is absolutely vital for us all.

Over recent months, as AI has exploded in the public consciousness, most of the debate has been sucked towards one of two poles. On the one hand, theres the basic machine learning, AI as it already exists on your phone, in your car, and in ChatGPT. On the other hand, theres still speculative artificial general intelligence, AGI, or even super intelligence of some kinda putative and uncertain existential threat to humanity due to arrive at some hazy point in the future. These two, AI and AGI. utterly dominate the discussion. But making sense of AI means we urgently need something in between, something coming in a near to medium timeframe whose abilities have an immense tangible impact on the world.

This is what artificial capable intelligence (ACI) does; it describes what is coming in the next two to five years. These ACIs will achieve a wide range of predetermined goals on their own. These are AIs that dont just say things like chat bots; they do things. They accomplish goals autonomously. These AIs will organize a retirement party and manage your diary, but by the same token, they will develop and execute business strategies whilst designing new drugs to fight cancer or dominate entire sectors. They will plan and run hospitals or invasions just as much as they will answer your email.

Focusing on either of these others, AI or AGI or missing ACI, is as myopic as it is dangerous. Therefore, we have proposed a modern Turing test that will act as a warning that were in a new phase for AI. In the test, if an AI can go make a million dollars on the internet on its own, it is an ACI. We need better categories for understanding a new era of technology, the era of ACI. In this era, little will remain unchanged. We should start preparing for this now.

Power is the ability to accomplish goals everywhere. Now its going to be in the hands of anyone who wants it, and thats going to be most people. This wave is far more empowering than the web ever was. This is what ACI and the associated technology like robotics, quantum computers, and synthetic virology will bring.

The reason it transforms power is that everyone gets access. Think of it like this: in previous eras most powerful technologies were generally reserved for a small capital-rich elite or national governments. Building a steam-powered factory, an aircraft carrier, or a nuclear power plant was a costly, difficult, and immense endeavor. With the leading technologies of our time, thats no longer going to be true. If the last great tech wavecomputers and the internetwas about broadcasting information, this new wave is all about doing.

We are facing a step change in what is possible for individual people to do and facing it at a previously unthinkable pace. AI is becoming more powerful and radically cheaper by the month. What was computationally impossible and would cost tens of millions of dollars a few years ago is now widespread. This means that its a very powerful extension of our best and our worst selves, and its everywhere. Whether its commercial, religious, cultural, military, democratic, or authoritarian, every possible motivation you can think of can be dramatically enhanced by having cheaper power at your fingertips. These tools will be available to everyone, billionaires and street hustlers, kids in India and pensioners in Beverly Hills. Its a proliferation of not just technology but capabilitypower itself.

There are bold and concerning arguments that these technologies fatally imperil the nation-state. Its no secret that technologies like AI could give bad actors a new toolkit, spur on a surge of misinformation, and take away jobs. While they will deliver immense benefits, they will also amplify societal fragility. They could even present an existential threat to the nation-state, introducing risks so profound, they may disrupt, or even overturn the current political order. At the same time, they open pathways to AI-empowered cyberattacks, automated wars that could devastate countries, or engineered pandemics that put the world at the mercy of unexplainable and yet seemingly omnipotent forces. The likelihood of each may be small, but the possible consequences are huge. Even a slim chance of outcomes like these requires serious attention.

Presented with scenarios like this, people often have a natural pessimism or aversion, as we call it, a tendency to dismiss such assessments as overblown scaremongering. But this is the reality of whats coming, and faced with it, were seemingly left with two unwelcome endpoints. On the one hand, a surveillance state stamps out any risk at the expense of freedoms and progress. On the other, an eventual catastrophe born of runaway development. This is the dilemma at the heart of the 21st century. Can the world find a narrow path between these outcomes? Can we strike a balance between openness and closure? This presents an urgent generational challenge, one on a par with the climate crisis.

A fire hose of discussion now surrounds technology and its risks, but whats missing is a central unifying idea. As the conversation around technology has exploded, we are still missing a unified approach to understanding, mitigating and controlling the spiraling new powersa general-purpose concept for a general-purpose revolution.

We propose containment as the answer. Its an overarching lock uniting cutting-edge engineering, ethical values, government regulation, and international collaboration. Containment is, in short, the elusive foundation for building the future. To manage the wave, we need a containment program working in 10 concentric layers:

None of it will be easy, but do so and we can forge that narrow path to a secure and flourishing future. What once would have been centuries or millennia of technological change is now happening in a matter of years or even months. Consequences ricochet around the world in hours or seconds. Containment is the response we need.

To listen to the audio version read by co-author Michael Bhaskar, download the Next Big Idea App today:

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The Coming Wave: Technology, Power, and the Twenty-first Centurys Greatest Dilemma - Next Big Idea Club Magazine

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Pan-African Financial Apps Leak Encryption, Authentication Keys – Dark Reading

Encryption, authentication, and signing keys are often exposed in mobile fintech apps used across Africa, according to researchers at Approov, who found passwords, application programming interface (API) keys, and private keys for cryptography when the most commonly used apps were reverse-engineered.

Approov examined the top 10 apps based on revenue and downloads. The fintech apps included those offering loans, mobile banking, P2P money transfer, investment, and cryptocurrency services.

Trevor Henry Chiboora, research associate at CyLab-Africa, which conducted the study along with Approov, says some of the apps surveyed are used exclusively within Africa, and some are geolocked to regions within Africa. He also confirmed all the apps were downloaded from the Google Play Store.

The crypto apps were determined to be the worst when it comes to security, with 33.3% of them rated as high risk and 53.3% as medium risk.

The high-risk category is considered extremely dangerous if exposed, as they disclose private keys, keys for payment or transfer services, and "authentication" or "attestation" keys. Researchers said the exposure of these secrets could potentially lead to unauthorized access, data breaches, and compromised user privacy.

The medium-risk category secrets include sensitive data that, if exposed, could potentially compromise the confidentiality of user data and application functionality. Although not as critical as the high-severity secrets, the compromise of these secrets could still have significant repercussions.

Chiboora says there is neglect across the board when it comes to the levels of security in the apps, but crypto apps have a larger user base and geographical coverage than most other categories.

Research found 22.2% of personal finance apps were rated as high risk and 66.7% as medium risk. Payment and transfer apps were next worst, with 19.1% rated as high risk and 76.6% as medium risk. Of the total of 224 applications examined, only 5.4% revealed no details.

To do the analysis, the researchers collected each app's ID and, using an automated script to download the Android Application Packages, the apps were reverse-engineered and scanned for risky items.

Cryptographic API keys, private keys, and passwords are used to authenticate the application and authorize access to protected resources or services, as well as to ensure the integrity and security of data exchanges between the application and a server.

Typically an API serves a dual purpose: It identifies the app to the backend API, and it validates the legitimacy of the requesting app, thereby establishing a clear link between the requesting entity and the API backend. This mechanism effectively prevents unauthorized or anonymous access attempts and provides a means to regulate the flow of data requests.

The researchers claimed that exposing API keys especially those related to services like Google, AWS, and other cloud services can result in unauthorized usage, which may incur unexpected costs or disrupt the functionality of integrated features.

"Keys are vital in the security and privacy of data as they authenticate and authorize access to services," Chiboora says, adding that most of the time these details are hidden from application users. "There are mobile cybersecurity methods that allow app developers to move these keys out of the app and into the cloud, which is a better approach and a recommendation for better security."

The researchers said this secret information is essential for verifying the identity of the application and protecting against unauthorized access, tampering, or data breaches. These secret keys are often present in the compiled source code of these applications and may also be inadvertently published to public repositories like GitHub.

Ted Miracco, CEO of Approov, said that as financial services become more digitized and accessible through mobile platforms across the world, the potential risks associated with the exposure of confidential information have escalated. "Developers can no longer depend on 'official' app stores or on native client OS security and must ensure that end-to-end security is built into the app itself," he said.

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Europe mulls open sourcing TETRA emergency services’ encryption algorithms – The Register

The European Telecommunications Standards Institute (ETSI) may open source the proprietary encryption algorithms used to secure emergency radio communications after a public backlash over security flaws found this summer.

"The ETSI Technical Committee in charge of TETRA algorithms is discussing whether to make them public," Claire Boyer, a spokesperson for the European standards body, told The Register.

The committee will discuss the issue at its next meeting on October 26, she said, adding: "If the consensus is not reached, it will go to a vote."

TETRA is the Terrestrial Trunked Radio protocol, which is used in Europe, the UK, and other countries to secure radio communications used by government agencies, law enforcement, military and emergency services organizations.

In July, a Netherlands security biz uncovered five vulnerabilities in TETRA, two deemed critical, that could allow criminals to decrypt communications, including in real-time, to inject messages, deanonymize users, or set the session key to zero for uplink interception.

The Midnight Blue researchers dubbed the bugs, which affected all TETRA networks, TETRA:BURST. The team waited one and a half years, as opposed to the usual six-month disclosure period, to make the flaws public because of the sensitive nature of emergency comms, and the complexity of fixing the issues.

At the time ETSI downplayed the flaws, which it said had been fixed last October, and noted that "it's not aware of any active exploitation of operational networks."

It did, however, face criticism from the security community over its response to the vulnerabilities and the proprietary nature of the encryption algorithms, which makes it more difficult for proper pentesting of the emergency network system..

Security author Kim Zetter broke the story that ETSI was discussing making the TETRA algorithms public. She also quoted Matthew Green, a Johns Hopkins University cryptographer and professor, who said keeping algorithms secret is a dated idea that makes problems worse.

"This whole idea of secret encryption algorithms is crazy, old-fashioned stuff. It's very 1960s and 1970s and quaint," he said. "If you're not publishing [intentionally] weak algorithms, I don't know why you would keep the algorithms secret."

Zetter indicated that ETSI's recent security failures may have changed some members' minds about removing the cloak of secrecy around the technology. ETSI disclosed that intruders had exploited a vulnerability to breach its members-only portal and steal a database containing personal information.

It didn't provide any additional information about the flaw used to break into the portal, but noted "ETSI has fixed the vulnerability."

The disclosure also included a statement from ETSI Director-General Luis Jorge Romero, who said: "Transparency is at the root of ETSI, in our governance and technical work."

It looks like the real test of this will come later this month when the TETRA algorithms go to a vote.

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How Easy is Email Encryption? You’d Be Surprised – MSSP Alert

When it comes to keeping sensitive data safe, email encryption is a necessity. But it doesnt have to be a necessary evil.

Too many employees and IT experts have experienced the pain of trying to use a needlessly complicated email encryption solution. Theres the endless steps, the hard-to-navigate portals, and the time-consuming processes that add up to a frustrating experience for most.

If this is the experience youve come to expect, Webroot Email Encryption powered by Zix is here to surprise you. Webroot simplifies, streamlines, and secures the encryption process making email security easier than ever.

The recipient process has historically been one of the biggest pain points for email encryption software customers. Its often complicated and cumbersome, filled with portals, secret passwords, and extra steps. It shouldnt be that difficult just to read an email, and now it doesnt have to be.

Webroot Email Encryption drastically simplifies the email recipient process. When both the sender and the recipient are Webroot clients, the software will encrypt the outgoing email from one customer, and send it to the recipient completely transparently regardless of the email content. No portal, no passwords, no extra steps just a blue bar at the top of the email confirming it was sent securely. From there, the recipient can reply to the email exactly as they would a regular email.

Even without transparent delivery, Webroots Email Encryption makes the recipient process intuitive for non-Webroot clients. The recipient secure email portal is designed for non-technical people to be able to access, read, and reply to encrypted emails easily.

Security tools only work when people use them, and even with the best IT policies in place, its difficult to stop employees from sending sensitive information without encryption. While many organizations have increased their employee training amid an increased threat landscape, training only goes so far.

Exposing sensitive information isnt just an organizational problem, its also a regulatory one. The Health Insurance Portability and Accountability Act (HIPAA) requires that all patient data is kept secure and private. With traditional email encryption solutions, this burden falls on employees every time. For healthcare organizations, this is an added layer of complication on top of an often hectic landscape for employees.

Thankfully, Webroots Email Encryption offers automatic encryption, removing the burden from employees of having to remember to encrypt sensitive emails every time they send one. Webroot Email Encryption provides out-of-the-box automatic policies for HIPAA, Social Security numbers, and financial information. When a policy is triggered whether the sender has elected to encrypt the email or not emails can be encrypted, blocked or quarantined.

The result? Any email containing sensitive information is automatically encrypted, saving both employees and the organization at large from the threat of a security breach.

Email encryption is just one piece of the cybersecurity puzzle. Every organization has a unique set of security needs, and a threat could severely affect operations at any time.

Thats why its important to ensure your email encryption solution comes along with purpose-built add-ons and can also seamlessly integrate with other security solutions. Webroot Email Encryption can be easily integrated and is also part of a larger network of threat protection that keeps your organization safe.

OpenText Cybersecurity brings together a number of product families (Webroot, Carbonite and Zix) that can be brought in to improve and enhance the overall user experience. These capabilities include:

Single Sign-On with SAML 2.0Allows a user to login to their Webroot Secure Message Portal with their own credentials theyve already created through the customers website. Without having to login again, users click a link to be taken directly to their secure inbox. This feature is implemented in using SAML 2.0, which authorizes user access to web services across organizations.

Webroot Email Threat Protection email encryption provides multilayered filtering for both inbound and outbound emails that lets the right emails through while blocking malicious threats such as phishing, ransomware, impersonation, business email compromise (BEC) and spam. It also offers attachment quarantine, link protections, message retraction, and a round-the-clock live threat analyst team.

Seeing how simple email encryption can be is surprising, we know. And weve only just scratched the surface. If you want to learn more about how OpenText Cybersecurity can help make email surprisingly secure and simple, you canrequest a demo here.

Guest blog courtesy of OpenText Cybersecurity. Author Olivia Pramas is director of Channel Marketing for OpenText. Read more OpenText news and blogs here. Regularly contributedguest blogsare part of MSSP Alertssponsorship program.

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