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Economy
Hard Numbers: Jamie Dimon’s promise, The godmother of AI, Some Japanese companies ignore AI, College football doppelgangers
JP Morgan CEO Jamie Dimon speaks at the Boston College Chief Executives Club luncheon in Boston, Massachusetts, U.S., November 23, 2021.
5,000: Jamie Dimon, CEO of JPMorgan Chase, said that he has about 2,000 employees working on data analytics, machine learning, and AI, and he predicts that number will blossom to 5,000 in the next few years. He also said the company has 400 AI-related projects, which should double to 800 in the next year alone.
1 billion: Computer scientist Fei-Fei Li, known as the “godmother of AI,” founded a startup called World Labs four months ago. It’s already valued at $1 billion. World Labs is a computer vision company, focused on understanding three-dimensional objects in the physical world. The company raised $100 million from Andreessen Horowitz and other venture capital firms in its latest funding round.
40: While nearly a quarter of Japanese companies have adopted AI, more than 40% told Reuters in a survey that they have no plans to do so. Another 35% say that they have plans to adopt the technology in the future. The AI industry is trying to prove itself not only to consumers but also businesses, so corporate adoption is key to its long-term success.
11,000: The college football video game “EA Sports College Football 25” is already a sensation in the US — a long-anticipated follow-up after the game studio ceased its college football title more than a decade ago. In order to build the real on-field players, EA used AI technology to turn 11,000 player headshots into in-game avatars in mere seconds.OpenAI logo displayed on a phone screen and ChatGPT website displayed on a laptop screen are seen in this illustration photo taken in Krakow, Poland on December 5, 2022.
OpenAI is going mini. On July 18, the company behind ChatGPT announced GPT-4o mini, its latest model. It’s meant to be a cheaper, faster, and less energy intensive version of the technology. The smaller model is marketed to developers who rely on OpenAI’s language models and want to save money.
The move also comes as AI companies are trying to cut their own costs, reduce their energy dependence, and answer calls from critics and regulators to lower their energy burden. Training and running AI often requires access to electricity-guzzling data centers, which in turn require copious amounts of water to keep them from overheating.
Moving forward, look for AI companies to offer a multitude of options to cost-conscious and energy-conscious users.
To see where data centers have cropped up in North America, check out our latest Graphic Truth here.The guard has changed in Britain. For the first time in 14 years, the Labour Party is back in power, led by Prime Minister Keir Starmer, who took office on July 5.
Starmer was set to introduce a long-awaited artificial intelligence bill last Wednesday as part of the King’s Speech, in which Charles III read out the new government’s agenda. But the AI bill was pulled at last minute from the address for undisclosed reasons.
We’ll take a look at Labour’s agenda for potential AI legislation — what they’re planning, when it could come, and how their focus will differ from their Tory predecessors. But first, let’s examine Rishi Sunak’s legacy and whether he accomplished his goal of being a global leader on AI.
What did Sunak accomplish?
Sunak’s crowning moment was the AI Safety Summit in Bletchley Park on Nov. 1-2, 2023. The summit, held at the famed World War II codebreaking facility, was a global gathering on artificial intelligence safety aimed at international cooperation to deter AI’s worst-case scenarios from occurring. The Bletchley Declaration, the resulting document, was signed by the UK, the United States, and the European Union, but also, notably, China, along with two dozen other signatories. (And Sunak got to pal around with tech CEOs such as OpenAI’s Sam Altman, xAI’s Elon Musk, and DeepMind cofounder Mustafa Suleyman — who has since joined Microsoft.)
Bletchley was an important international agreement, but it also signaled that the UK’s leadership — under Sunak, at least — would be light-touch. He didn’t call for AI legislation, preferring to deploy Bletchley as a voluntary global corporate and government agreement.
Nick Reiners, a senior geotechnology analyst at Eurasia Group, said the hyperfocus on “existential risk” of AI is somewhat of a niche Silicon Valley obsession, a crowd that Sunak was interested in appeasing. “He saw AI as a way to build a legacy in a short time and this issue was something that animated him personally.”
What’s on deck for Labour?
Scott Bade, also a senior geotechnology analyst at Eurasia Group, doubts Starmer will follow Sunak’s lead on AI, but said he won’t throw away the standing that Sunak won for the country either. “Starmer does not have a signature global issue yet, and is unlikely to see AI as that issue,” Bade said. “But I'd be surprised if the UK didn’t keep showing up at the table to build on what Sunak did since this is the niche Britain now has in AI global governance. It will just be dialed down a peg or two.”
Compared with Sunak’s existentialist concerns, Starmer should be more focused on the short-term harms of artificial intelligence, Reiners said, citing workers’ rights and bias as examples. And with that comes the promise of actual legislation.
The bill that Labour was set to introduce would have reined in the most powerful large language models — but actual regulation seems to have been pushed off. In his speech, King Charles read off bills about cybersecurity as well as digital information, which seem to have won out over the AI bill, at least for now. “My suspicion is that they opted not to present this [AI regulation] now as they didn’t want to upset their growth narrative,” one tech leader told the Financial Times. Reiners said that departmental limits on parliamentary bills per session could be a constraint as well, and that AI was a lower priority.
When an AI bill is introduced, expect it to still be light-touch relative to the more expansive European AI Act. “I would say the UK is still generally respected as taking a thoughtful innovation-friendly approach to regulation in general,” Reiners noted.
The UK is home to successful AI startups such as Stability AI, maker of the image model Stable Diffusion, Google’s DeepMind lab, and the digital avatar company Synthesia, which we profiled in last week’s edition. And big AI-focused US tech companies, such as Microsoft and Salesforce have recently invested in the country. With the country’s economy on the ropes, Starmer’s challenge is to introduce legislative reforms that won’t totally scare off Big Tech.Joe Biden exited the presidential contest on July 21, acceding to increasingly loud calls from his own party to step aside and pave the way for a new face at the top of the Democratic ticket. Enter Kamala Harris.
Harris, the current vice president, has secured the majority of DNC delegates already and is the presumptive Democratic nominee, but her campaign is merely two days old. We still don’t know what positions she’ll focus on or how she’ll govern if she’s able to triumph in November.
But, lucky for us at GZERO AI, there are clues about how she’ll tackle artificial intelligence.
Harris is a Bay Area native with deep ties to Silicon Valley. She’s also the former top prosecutor in San Francisco and the state of California, home to many of the world’s largest and most powerful tech companies. She’s gone after large tech companies on issues such as data privacy and nonconsensual sexual material, but she has also consistently cashed in on donations from many of Silicon Valley’s top donors.
As VP, Harris was dispatched to England for the AI Safety Summit at Bletchley Park last year. “Just as AI has the potential to do profound good, it also has the potential to cause profound harm,” Harris said in her remarks there. She spoke of not only the “existential risks” the summit focused on, but also algorithmic bias, deepfakes, and wrongful convictions that could be caused by AI.
“Vice President Harris has been a leader on the Biden-Harris administration’s work on AI, representing the United States as the UK’s AI summit in 2023, and has focused on critical safety and civil rights issues,” Adam Conner, vice president of tech policy at CAP Action, told GZERO. “Technology policy issues are not new to Vice President Harris, who has a long history addressing key technology issues from her time as Attorney General and Senator from California, and that expertise would be put to good use if she becomes the next president.”
Harris also sent a warning shot at Bletchley.
“As history has shown, in the absence of regulation and strong government oversight, some technology companies choose to prioritize profit over the wellbeing of their customers, the safety of our communities, and the stability of our democracies,” she said.
While a Donald Trump presidency promises to be hands-off when it comes to regulating AI, look for a Harris presidency to follow in Biden’s footsteps (see more below in the Watching on JD Vance). Biden strengthened export controls on chips, issued an extensive executive order on AI, and ramped up government adoption of the technology — including in the military.
Harris is no stranger to walking the fine line between being pro-innovation and tough-on-tech. She’s done it for decades. As she tries to win back Silicon Valley from the right and make a difference on important tech issues, expect her to draw on her experience from back home.
Hard Numbers: Intuit’s mass layoff, Very expensive flip phone, AMD’s Finnish acquisition, Taiwan’s millionaire class
Intuit logo displayed on a phone screen and a laptop keyboard are seen in this illustration photo taken in Krakow, Poland on October 30, 2021.
1,800: Intuit, the company behind popular financial software Quickbooks and Turbotax, announced a mass layoff of 1,800 employees — about 10% of the company — with plans to rehire the same number with a renewed focus on AI. The firm has an AI-powered financial advice tool, called Intuit Assist, in which it plans to invest heavily. That new investment might be necessary: A recent Washington Post review of Intuit’s AI assistant called it “awful” — not only “unhelpful” but also “wrong” much of the time.
1,899: Samsung has a new line of AI-powered foldable phones — and they’re extremely expensive. The Galaxy Z Fold starts at $1,899.99, a $100 increase from last year’s model. This nouveau flip phone boasts AI tools such as voice recording transcription, translation, and summarizing and text suggestions across email and social media apps. AI isn’t exactly a new thing on mobile phones, of course — so hopefully for this price, these new features make Siri look like a bot of the past.
665 million: The chip designer AMD is buying a Finnish startup called Silo AI for $665 million. Silo bills itself as “Europe’s largest private AI lab.” This deal will get AMD into the AI development business — an expansion from its hardware focus — as it tries to compete with industry leader Nvidia.
1.16 million: There are plenty of new millionaires in Taiwan, thanks to AI. Taiwan is a global hub for the semiconductor industry, which has boomed in recent years due to demand for AI. TSMC, its leading firm, is a key global fabricator for computer chips of all kinds. Taiwan’s total number of US dollar millionaires was 790,000 last year and could grow to 1.16 million by 2028, according to a new estimate by UBS.The UK’s antitrust regulator is scrutinizing Microsoft’s unique relationship with Inflection AI. The PC giant did what some have called an “acqui-hire” — not buying the company outright, but rather hiring many of its former leaders and employees instead.
Microsoft poached the once-$4 billion startup’s co-founders Mustafa Suleyman and Karén Simonyan as well as “most of its staff.” It paid $650 million to license Inflection’s technology, which is how investors will get their returns. Now, the UK’s Competition and Markets Authority is looking at whether the deal is a “de facto merger,” a decision it’s expected to make by Sept. 11.
Microsoft is already facing scrutiny for its $13 billion investment in OpenAI in the US and UK, choosing to relinquish its non-voting board seat to stave off further criticism last week. We’re watching for how Microsoft fares in court, and whether it changes its tack in competing for the top talent and tech in AI development.Patient has an eye test at Venice Family Clinic in Venice, California, June 25, 2009.
Health insurers are routinely using artificial intelligence and algorithms to evaluate insurance claims, but now the tables have turned. Doctors are increasingly turning to generative AI to write appeals for prior authorizations and to fight insurance denials.
A survey from the American Medical Association found doctors and their staff spend an average of 12 hours a week dealing with such denials, which insurance companies routinely issue, even in serious cases including cancer and HIV/AIDS care. Now, with the help of HIPAA-compliant apps like Doximity GPT, physicians can use the power of AI to generate persuasive reply letters, citing all the relevant medical research they need, in minutes.
One physician even told the New York Times that he tells the bot to make his letters four times longer: “If you’re going to put all kinds of barriers up for my patients, then when I fire back, I’m going to make it very time-consuming.”
So the next time you find yourself annoyed by a glitchy AI chatbot customer service, just remember, AI might help you get lifesaving drugs one day.
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