Apple has been playing its cards close to its chest when it comes to AI. While rival Microsoft has jumped on the ChatGPT bandwagon and is integrating AI into everything despite the bugs and hallucinations, the acronym didn’t even get a mention at Apple’s Worldwide Developers Conference in June.
Reports emerged in July, however, that Apple was working on its own generative AI tool, dubbed internally “Apple GPT,” which uses a large language model (LLM) framework called Ajax. On this week’s quarterly earnings call, CEO Tim Cook said Apple was enthusiastic about the technology and has incorporated AI into forthcoming iOS17 features like Personal Voice (voice cloning and text-to-speech) and Live Voicemail (live transcription). He added:
“We’ve been doing research across a wide range of AI technologies, including generative AI, for years. We’re going to continue investing and innovating and responsibly advancing our products with these technologies, with the goal of enriching people’s lives. That’s what it’s all about for us. As you know, we tend to announce things as they come to market, that’s our M.O., and I’d like to stick to that.”
Of course, what everyday users want to know is whether Siri will be getting an AI upgrade. And they certainly appear to be working on it, with the Financial Times reporting that Apple is hiring dozens of researchers and engineers to work on “compressing existing language models so they can run efficiently on mobile devices, rather than in the cloud.” The ads indicated the company is fully focused on bringing LLM technology to mobiles.
There are speed, privacy and security reasons to run the AI locally on the phone hardware rather than in the cloud, given concerns over OpenAI and Claude hoovering up all your personal and business data. Back in 2020, Apple spent $200 million snapping up Seattle startup Xnor, which focuses on this exact problem.
Passwords even more useless due to AI
Even prior to the advent of AI, computing technology had progressed to the point where the average eight-character password — using a combination of numbers, upper and lower case letters and a special character as recommended — could be cracked in around five minutes. New research indicates that AI password crackers like PassGAN can crack more than half of all commonly used passwords in less than a minute.
Now it turns out that AI can work out your password with greater than 90% accuracy, purely from the sound of you typing. Given that almost everyone types within earshot of a computer or phone mic, that’s a pretty big exploitable area, especially if you log in to a site while on a Zoom call (93% accuracy.)
The tech isn’t quite as good when users touch type or use the shift key, but it’s even clearer that passwords alone without 2FA need to be consigned to the bin of history.
Google and Universal negotiate deal on music deep fakes
Johnny Cash’s fake version of “Barbie Girl” and Frank Sinatra riffing on a big band take of “Gangsta’s Paradise” are a couple of the more amusing AI deep fakes out there. This has provoked alarm from artists, including Drake and Sting, who are understandably concerned at their unique vocals and music styles being ripped off.
In response, Google has reportedly entered negotiations with Universal Music to create a tool for fans to create their own legitimate deep fakes of popular artists with a fee going back to the copyright holders. Artists would have the ability to opt in or opt out of the system. Google is trying to strike a similar deal with Warner Music, whose CEO, Robert Kyncl, enthused to investors this week that “with the right framework,” AI could “enable fans to pay their heroes the ultimate compliment through a new level of user-driven content . . . including new cover versions and mash-ups.”
Some artists have embraced AI technology, with Grimes offering a 50/50 split of proceeds to AI producers and Paul McCartney using AI to improve John Lennon’s rough demo vocals for “the final Beatles track,” which was abandoned due to poor quality in the ‘90s.
Disney’s AI task force
Hollywood writers and actors strike be damned! Disney has created an artificial intelligence task force to study how AI can be used across the entertainment behemoth. There are 11 current job openings across its theme parks, TV and advertising divisions.
While creatives see AI as a threat, a Disney insider says the company believes the bigger threat is not adapting to the new landscape in order to bring budgets down — now topping $300 million for tentpole releases like Indiana Jones. Apart from bringing down the costs of special effects with generative AI, a theme park imagineer told Reuters that AI can make the company’s robots more lifelike, pointing to Project KIWI, which used machine learning technique to give a free-roaming Baby Groot from Guardians of the Galaxy personality and character movements.
Disturbing research from IBM suggests that GPT-4 can be tricked into manipulating users. The researchers have shown that GPT-4 can be “hypnotized” to take part in multi-layered Inception-type games that saw the models “leaking confidential financial information, generating malicious code, encouraging users to pay ransoms, and even advising drivers to plow through red lights,” according to Gizmodo.
Even if users figured out one of the “games” the LLM was playing, the researchers had created multiple other “games” the user would fall into. Bard is apparently more difficult to manipulate than GPT-3.5 and GPT-4.
— Nvidia has just unveiled its GH200 super chip, which has 141GB of next-gen memory, three times the capacity of its popular H100 GPU. Nvidia says the cost of powering LLMs will drop significantly
— A new preprint from former Amazon AI researcher Konstantine Arkoudas analyzed GPT-4’s responses to 21 reasoning problems and concluded that: “Despite occasional flashes of analytical brilliance, GPT-4 at present is utterly incapable of reasoning.”
— Spotify’s AI feature “DJ” — which recommends new artists and tracks and tells you why you should give them a go — is being rolled out to 50 countries this week. Users of the beta so far have spent around one-third of their listening time using DJ.
— Goldman Sachs predicts that AI investments will soar to $200 billion globally by 2025, accounting for 4% of U.S. gross domestic product and around 2.5% of the GDP of other nations. One in six companies mentioned AI on recent earnings calls.
— Morgan Stanley is looking into concerns over an AI stock bubble, highlighting that previous bubbles had seen three-year peak returns of 150%. While AI stock darling Nvidia is up by 200% this year alone, broader AI indexes are only up by 50%.
— Researchers at Harvard and the University of Washington found that crowdsourcing business ideas from humans produced much more novel ideas than GPT-4, while prompting those same ideas from the AI produced ideas with better environmental and financial value. They concluded the best way forward may be an “integrative human-AI approach to problem-solving.”
— Nobody trusts AI with company data, according to a Blackberry survey of 2,000 company IT chiefs, which found three quarters are either implementing or considering bans on ChatGPT and other LLMs for data security, privacy and corporate reputation reasons. However, a McKinsey survey found that only 21% of organizations have implemented any policies on generative AI so far.
Video of the week
Redditor SellowYubmarine posted this “AI-generated trailer” for a Magic 8 horror film to the Singularity subreddit. While it highlights that a single user can employ AI tech to come up with a pretty impressive trailer, it still requires considerable effort, with the user employing ChatGPT for dialogue and story ideas Midjourney, Adobe Firefly, Runway, Pika Labs for the visuals and Photoshop, After Effects and Audition for editing.
Still, the new tech means creators will mainly be limited by their imaginations in the future, rather than budgets, as has been the case in the past.
Subscribe
The most engaging reads in blockchain. Delivered once a
week.
Andrew Fenton
Based in Melbourne, Andrew Fenton is a journalist and editor covering cryptocurrency and blockchain. He has worked as a national entertainment writer for News Corp Australia, on SA Weekend as a film journalist, and at The Melbourne Weekly.
Finnish police have seized more than $2.6 million worth of luxury watches from Hex founder Richard Heart, who is wanted on tax fraud and assault charges in the country.
Judge Katherine Failla granted Coinbase’s request for an interlocutory appeal, citing different courts’ interpretations of what constituted a security under the SEC’s purview.
The grooming gangs scandal is back in the headlines after Elon Musk attacked Sir Keir Starmer and minister Jess Phillips for failing children.
The tech billionaire has accused Sir Keir of being “complicit” in the failure of authorities to protect victims and prosecute abusers while the PM was director of public prosecutions from 2008-2013.
Sir Keir has hit back at Musk, saying his record shows how he tackled the issue head-on.
Sky News looks at a timeline of the grooming gangs scandal, inquiries and Sir Keir’s role.
How did the grooming gangs scandal unfold and what prosecutions have there been?
2001: Names of taxi drivers who allegedly picked up girls from care homes in Rotherham to abuse them are passed to the police and council from 2001. The first convictions were not until 2010, with the latest in 2024 – a total of 61.
2004: A Channel 4 documentary about claims young white girls in Bradford were being groomed for sex by Asian abusers is delayed as police forces warn it could inflame racial tensions. It was finally shown three months later.
2010: 11 men, predominantly of an Asian background, are convicted of offences connected with the sexual exploitation of children in Derbyshire.
2011: Times journalist Andrew Norfolk starts receiving tip-offs about child sexual exploitation by predominantly Asian men in Rotherham. It was his insistence on pursuing the story, despite being called racist and concerns the far-right would latch on to it, that eventually led to a national inquiry.
2011: A girl abused by a grooming gang in Huddersfield writes a letter to a judge about the abuse she had suffered. It was not until 2013 that another victim came forward to police to make formal allegations, then dozens of girls and men were interviewed over the next three years. Victims and their families said they repeatedly told police and authorities but nothing happened.
2011: Operation Bullfinch is launched by the police and council in Oxford to look into a child sex abuse ring in the city. The first convictions are secured in May 2013, then 2015, 2016, 2019 and 2020.
May 2012: The first grooming gangs convictions of men from Rochdale and Oldham see nine found guilty of being part of a child sexual exploitation ring run out of two takeaways in Greater Manchester since 2008. A further five from the Rochdale area were jailed the following year.
May 2013: Seven men have been jailed, it emerges, at the conclusion of child sex abuse trials relating to offences in the Telford area.
2017: A total of 29 men from a Huddersfield grooming gang are charged but a reporting restriction prevents media from reporting on the case to avoid prejudicing other cases. The ban was criticised by far-right groups, with Tommy Robinson – also known as Stephen Yaxley-Lennon – jailed for 13 months (later reduced to nine months) after admitting contempt for filming outside a court during the trial.
2018: Twenty men, mainly of Pakistani origin but the ringleader was Sikh, who were part of the Huddersfield child sex abuse ring are convicted of 120 rape and abuse offences against 15 girls, and sentenced to a total of 221 years.
Three separate trials had to be held as there were so many of them. More men have been convicted since then, bringing the total number to 41 by August 2021.
2023: A Grooming Gangs Taskforce is set up by Rishi Sunak’s government, with qualified officers from all 43 police forces in England and Wales, and data analysts. In May 2024, 550 suspects had been arrested and 4,000 victims identified.
2023: Nine further men are charged with sexual offences in Rotherham under Operation Stovewood. Most of the offences took place between 2003 and 2008.
2024: Operation Stovewood sees 11 more men from Rotherham convicted for the abuse of vulnerable girls.
Please use Chrome browser for a more accessible video player
3:31
‘Lies’ over grooming gangs
What inquiries have there been?
There have been 10 inquiries and reports into the grooming gangs.
2013: The Home Affairs Select Committee publishes a report into the Rochdale cases, finding the failure to protect children fell to police, social workers and Crown Prosecution Service (CPS) prosecutors.
2014: An inquiry into grooming gangs in Rotherham, led by Professor Alexis Jay and commissioned by the council in 2013, finds 1,400 children were sexually abused between 1997 and 2013 by predominantly British-Pakistani men.
Then home secretary Theresa May commissions the Independent Inquiry into Child Sexual Abuse in England and Wales following the Jimmy Savile scandal. Professor Jay became the chair after three others resigned.
2015: A West Midlands Police report from 2010 is released publicly after a Freedom of Information request by the Birmingham Mail.
It shows police knew five years before that Asian grooming gangs were targeting children outside schools in Birmingham but were worried about community tensions if it was made public.
2015: A report into Rotherham Council’s handling of child sexual abuse, commissioned by the government and led by Baroness Casey, finds the council had a bullying, sexist culture of covering up information and silencing whistleblowers.
A new police inquiry into child sexual abuse in Rotherham is launched, with 19 men and two women convicted in 2016 and 2017 of sexual offences dating back to the late 1980s.
2015: A serious case review by Oxfordshire Safeguarding Children’s Partnership finds 373 children (including 50 boys) could have been groomed and sexually exploited in the city. It accused Thames Valley Police of not believing children when they complained.
2019: An independent review into historic child sexual exploitation in Oldham shisha bars from 2011 to 2014 is commissioned by Greater Manchester mayor Andy Burnham after Oldham council requested it.
2020: The Home Office refuses to release research into grooming gangs as it said it is not in the public interest. Following public pressure it releases the report, which finds no credible evidence any one ethnic group is over represented in child sexual exploitation. It is branded a whitewash by critics.
2022: The Independent Inquiry into Child Sexual Abuseby Professor Jay is published after 12 years. It finds police and councils downplayed the scale of the problem and children were often blamed for their abuse.
It makes recommendations, including mandatory reporting of child sexual abuse by people working with children, the establishment of a national financial compensation scheme for victims “let down by institutions” and the creation of a child protection authority.
2022: Oldham councillors called for a government inquiry into grooming gangs in the town but the Conservative government rejected it and said the local authority should commission a review.
2022:Greater Manchester’s inquiry into Oldham grooming gangs was released. It found the police and council failed to protect vulnerable children and covered up their failings.
2022: The Telford independent inquiry was published and found more than 1,000 children in the town were sexually exploited and the abuse was allowed to continue for years, with children often blamed.
The inquiry found issues were not investigated because of nervousness about race, with teachers and youth workers discouraged from reporting child sexual exploitation.
2024: Oldham councillors again called for a government inquiry but safeguarding minister Jess Phillips said the council had to carry it out.
What is Sir Keir Starmer’s involvement?
2008-2013: Sir Keir Starmer was director of public prosecutions (DPP), head of the Crown Prosecution Service (CPS) which conducts criminal prosecutions in England and Wales, for five years.
2009: The CPS was criticised for not prosecuting Rochdale grooming gang suspects in 2008 and 2009. It said the main victim was “unreliable” so dropped the case.
2010-2011: In that financial year, child sexual abuse prosecutions reached 4,794 – the highest during Sir Keir’s time as DPP. In 2016/17, nearly there were nearly 7,200 prosecutions.
2011: The decision to not prosecute in Rochdale was overturned by Nazir Afzal, chief prosecutor for northwest England, appointed by Sir Keir.
2013: A Home Affairs Committee report said unlike other agencies, the CPS had “readily admitted victims had been let down by them and have attempted both to discover the cause of this systemic failure and to improve the way things are done so as to avoid a repetition of such events”.
The report added: “Mr Starmer has striven to improve the treatment of victims of sexual assault within the criminal justice system throughout his term as DPP.”
Maggie Oliver, a former Manchester detective and whistleblower, told the BBC the CPS “bears a great deal of responsibility for the failures around this issue”, including bringing inadequate charges and blaming victims.
2013: Sir Keir revised guidance on child sexual exploitation to make future prosecutions easier. Before, victims may not have been viewed as credible if they had not complained immediately, if they had used drugs or alcohol, or dressed and acted in particular ways.
2013: The Child Sexual Abuse Review Panel was created by Sir Keir to review CPS decisions not to bring charges or terminate proceedings after 5 June 2013.
What has Elon Musk said?
The billionaire, who posts on X, which he owns, many times every day, has also given a series of interviews, and has commented on the grooming gangs and child sex exploitation cases in the past. He has shown support for both Reform and Tommy Robinson and began to post about the grooming gangs scandal regularly, in response to others, in late December and early January.
31 December: In response to an X post referencing the grooming gangs and claiming “out of political correctness, the government did everything it could to cover up the crimes”, Mr Musk replied: “The government officials responsible, including those in the judiciary, need to fired in shame over this”
In response to a post that claimed that “Parents who attempted to rescue their children were arrested when the police arrived”, he said on X: “So many people at all levels of power in the UK need to be in prison for this.”
1 January: Then, after a series of other posts responding to people expressing similar views, including sympathy for Tommy Robinson and support for Reform, he responded to a post saying “Labour’s Jess Phillips, Minister for Safeguarding, refused to back a public inquiry into child exploitation in Oldham” by saying: “Shameful conduct by Jess Phillips. Throw her out.”
2 January: He responds to a poster by calling for a new election, then…
He posts: “In the UK, serious crimes such as rape require the Crown Prosecution Service’s approval for the police to charge suspects. Who was the head of the CPS when rape gangs were allowed to exploit young girls without facing justice? Keir Starmer, 2008 -2013
“Who is the boss of Jess Phillips right now? Keir Stamer. The real reason she’s refusing to investigate the rape gangs is that it would obviously lead to the blaming of Keir Stamer (head of the CPS at the time).”
Responding to a post criticising what someone called the legacy media, he said: “This is the same media that hid the fact that a quarter million little girls were – still are – being systematically raped by migrant gangs in Britain. They are beneath contempt. Despicable human beings.”
3 January: In response to a post talking about the cost of another public inquiry, he says: “No UK government inquiry for the gang rape of innocent little girls, but £22M spent on an obviously violent lunatic. Shame, shame, shame.”
He went on to accuse Keir Starmer of being “guilty of complicity” and accusing Jess Phillips of being a “rape genocide apologist”.
4 January: He responded to an article in The Daily Telegraph, which claimed to show how the grooming scandal was “covered up”, by saying “How the rape of Britain was covered up” and then later added: “The sniveling cowards who allowed the mass rape of little girls in Britain are still in power … for now”.