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Four federal U.S. agencies issued a warning on Tuesday that they already have the authority to tackle harms caused by artificial intelligence bias and they plan to use it.

The warning comes as Congress is grappling with how it should take action to protect Americans from potential risks stemming from AI. The urgency behind that push has increased as the technology has rapidly advanced with tools that are readily accessible to consumers, like OpenAI’s chatbot ChatGPT. Earlier this month, Senate Majority Leader Chuck Schumer, D-N.Y., announced he’s working toward a broad framework for AI legislation, indicating it’s an important priority in Congress.

But even as lawmakers attempt to write targeted rules for the new technology, regulators asserted they already have the tools to pursue companies abusing or misusing AI in a variety of ways.

In a joint announcement from the Consumer Financial Protection Bureau, the Department of Justice, the Equal Employment Opportunity Commission and the Federal Trade Commission, regulators laid out some of the ways existing laws would allow them to take action against companies for their use of AI.

For example, the CFPB is looking into so-called digital redlining, or housing discrimination that results from bias in lending or home-valuation algorithms, according to Rohit Chopra, the agency’s director. CFPB also plans to propose rules to ensure AI valuation models for residential real estate have safeguards against discrimination.

“There is not an exemption in our nation’s civil rights laws for new technologies and artificial intelligence that engages in unlawful discrimination,” Chopra told reporters during a virtual press conference Tuesday.

“Each agency here today has legal authorities to readily combat AI-driven harm,” FTC Chair Lina Khan said. “Firms should be on notice that systems that bolster fraud or perpetuate unlawful bias can violate the FTC Act. There is no AI exemption to the laws on the books.”

Khan added the FTC stands ready to hold companies accountable for their claims of what their AI technology can do, adding enforcing against deceptive marketing has long been part of the agency’s expertise.

The FTC is also prepared to take action against companies that unlawfully seek to block new entrants to AI markets, Khan said.

“A handful of powerful firms today control the necessary raw materials, not only the vast stores of data but also the cloud services and computing power, that startups and other businesses rely on to develop and deploy AI products,” Khan said. “And this control could create the opportunity for firms to engage in unfair methods of competition.”

Kristen Clarke, assistant attorney general for the DOJ Civil Rights Division, pointed to a prior settlement with Meta over allegations that the company had used algorithms that unlawfully discriminated on the basis of sex and race in displaying housing ads.

“The Civil Rights Division is committed to using federal civil rights laws to hold companies accountable when they use artificial intelligence in ways that prove discriminatory,” Clarke said.

EEOC Chair Charlotte Burrows noted the use of AI for hiring and recruitment, saying it can result in biased decisions if trained on biased datasets. That practice may look like screening out all candidates who don’t look like those in the select group the AI was trained to identify.

Still, regulators also acknowledged there’s room for Congress to act.

“I do believe that it’s important for Congress to be looking at this,” Burrows said. “I don’t want in any way the fact that I think we have pretty robust tools for some of the problems that we’re seeing to in any way undermine those important conversations and the thought that we need to do more as well.”

“Artificial intelligence poses some of the greatest modern day threats when it comes to discrimination today and these issues warrant closer study and examination by policymakers and others,” said Clarke, adding that in the meantime agencies have “an arsenal of bedrock civil rights laws” to “hold bad actors accountable.”

“While we continue with enforcement on the agency side, we’ve welcomed work that others might do to figure out how we can ensure that we are keeping up with the escalating threats that we see today,” Clarke said.

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Apple’s market share slides in China as iPhone shipments decline, analyst Kuo says

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Apple's market share slides in China as iPhone shipments decline, analyst Kuo says

Jaap Arriens | Nurphoto | Getty Images

Apple is losing market share in China due to declining iPhone shipments, supply chain analyst Ming-Chi Kuo wrote in a report on Friday. The stock slid 2.4%.

“Apple has adopted a cautious stance when discussing 2025 iPhone production plans with key suppliers,” Kuo, an analyst at TF Securities, wrote in the post. He added that despite the expected launch of the new iPhone SE 4, shipments are expected to decline 6% year over year for the first half of 2025.

Kuo expects Apple’s market share to continue to slide, as two of the coming iPhones are so thin that they likely will only support eSIM, which the Chinese market currently does not promote.

“These two models could face shipping momentum challenges unless their design is modified,” he wrote.

Kuo wrote that in December, overall smartphone shipments in China were flat from a year earlier, but iPhone shipments dropped 10% to 12%.

There is also “no evidence” that Apple Intelligence, the company’s on-device artificial intelligence offering, is driving hardware upgrades or services revenue, according to Kuo. He wrote that the feature “has not boosted iPhone replacement demand,” according to a supply chain survey he conducted, and added that in his view, the feature’s appeal “has significantly declined compared to cloud-based AI services, which have advanced rapidly in subsequent months.”

Apple’s estimated iPhone shipments total about 220 million units for 2024 and between about 220 million and 225 million for this year, Kuo wrote. That is “below the market consensus of 240 million or more,” he wrote.

Apple did not immediately respond to CNBC’s request for comment.

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Amazon to halt some of its DEI programs: Internal memo

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Amazon to halt some of its DEI programs: Internal memo

Amazon said it is halting some of its diversity and inclusion initiatives, joining a growing list of major corporations that have made similar moves in the face of increasing public and legal scrutiny.

In a Dec. 16 internal note to staffers that was obtained by CNBC, Candi Castleberry, Amazon’s VP of inclusive experiences and technology, said the company was in the process of “winding down outdated programs and materials” as part of a broader review of hundreds of initiatives.

“Rather than have individual groups build programs, we are focusing on programs with proven outcomes — and we also aim to foster a more truly inclusive culture,” Castleberry wrote in the note, which was first reported by Bloomberg.

Castleberry’s memo doesn’t say which programs the company is dropping as a result of its review. The company typically releases annual data on the racial and gender makeup of its workforce, and it also operates Black, LGBTQ+, indigenous and veteran employee resource groups, among others.

In 2020, Amazon set a goal of doubling the number of Black employees in vice president and director roles. It announced the same goal in 2021 and also pledged to hire 30% more Black employees for product manager, engineer and other corporate roles.

Meta on Friday made a similar retreat from its diversity, equity and inclusion initiatives. The social media company said it’s ending its approach of considering qualified candidates from underrepresented groups for open roles and its equity and inclusion training programs. The decision drew backlash from Meta employees, including one staffer who wrote, “If you don’t stand by your principles when things get difficult, they aren’t values. They’re hobbies.”

Other companies, including McDonald’s, Walmart and Ford, have also made changes to their DEI initiatives in recent months. Rising conservative backlash and the Supreme Court’s ruling against affirmative action in 2023 spurred many corporations to alter or discontinue their DEI programs.

Amazon, which is the nation’s second-largest private employer behind Walmart, also recently made changes to its “Our Positions” webpage, which lays out the company’s stance on a variety of policy issues. Previously, there were separate sections dedicated to “Equity for Black people,” “Diversity, equity and inclusion” and “LGBTQ+ rights,” according to records from the Internet Archive’s Wayback Machine.

The current webpage has streamlined those sections into a single paragraph. The section says that Amazon believes in creating a diverse and inclusive company and that inequitable treatment of anyone is unacceptable. The Information earlier reported the changes.

Amazon spokesperson Kelly Nantel told CNBC in a statement: “We update this page from time to time to ensure that it reflects updates we’ve made to various programs and positions.”

Read the full memo from Amazon’s Castleberry:

Team,

As we head toward the end of the year, I want to give another update on the work we’ve been doing around representation and inclusion.

As a large, global company that operates in different countries and industries, we serve hundreds of millions of customers from a range of backgrounds and globally diverse communities. To serve them effectively, we need millions of employees and partners that reflect our customers and communities. We strive to be representative of those customers and build a culture that’s inclusive for everyone.

In the last few years we took a new approach, reviewing hundreds of programs across the company, using science to evaluate their effectiveness, impact, and ROI — identifying the ones we believed should continue. Each one of these addresses a specific disparity, and is designed to end when that disparity is eliminated. In parallel, we worked to unify employee groups together under one umbrella, and build programs that are open to all. Rather than have individual groups build programs, we are focusing on programs with proven outcomes — and we also aim to foster a more truly inclusive culture. You can read more about this on our Together at Amazon page on A to Z.

This approach — where we move away from programs that were separate from our existing processes, and instead integrating our work into existing processes so they become durable — is the evolution to “built in” and “born inclusive,” instead of “bolted on.” As part of this evolution, we’ve been winding down outdated programs and materials, and we’re aiming to complete that by the end of 2024. We also know there will always be individuals or teams who continue to do well-intentioned things that don’t align with our company-wide approach, and we might not always see those right away. But we’ll keep at it.

We’ll continue to share ongoing updates, and appreciate your hard work in driving this progress. We believe this is important work, so we’ll keep investing in programs that help us reflect those audiences, help employees grow, thrive, and connect, and we remain dedicated to delivering inclusive experiences for customers, employees, and communities around the world.

#InThisTogether,

Candi

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Tesla recalling 239,000 vehicles in U.S. over rearview camera failures

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Tesla recalling 239,000 vehicles in U.S. over rearview camera failures

New Tesla Model 3 vehicles on a truck at a logistics drop zone in Seattle, Washington, on Aug. 22, 2024.

M. Scott Brauer | Bloomberg | Getty Images

Tesla is voluntarily recalling about 239,000 of its electric vehicles in the U.S. to fix an issue that can cause its rearview cameras to fail, the company disclosed in filings posted Friday to the National Highway Traffic Safety Administration’s website.

“A rearview camera that does not display an image reduces the driver’s rear view, increasing the risk of a crash,” Tesla wrote in a letter to the regulator. The recall applies to Tesla’s 2024-2025 Model 3 and Model S sedans, and to its 2023-2025 Model X and Model Y SUVs.

The company also said in the acknowledgement letter that it has already “released an over-the-air (OTA) software update, free of charge” that can fix some of the vehicles’ camera issues.

In 2024, Tesla issued 16 recalls in the U.S. that applied to 5.14 million of its EVs, according to NHTSA data. The recall remedies included a mix of over-the-air software updates and parts replacements. More than 40% of last year’s recalls pertained to issues with the newest vehicle in the company’s lineup, the Cybertruck, an angular steel pickup that Tesla began delivering to customers in late 2023.

Regarding the latest recall, the company said it had received 887 warranty claims and dozens of field reports but told the NHTSA that it was not aware of any injurious, fatal or other collisions resulting from the rearview camera failures.

Other customers with vehicles that “experienced a circuit board failure or stress that may lead to a circuit board failure,” which cause the backup camera failures, can have their vehicles’ computers replaced by Tesla, free of charge, the company said.

Tesla did not immediately respond to CNBC’s request for comment.

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