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AI and crypto isn’t just a buzz phrase

AI Eye has been out and about at Korean Blockchain Week and Token2049 in Singapore over the past fortnight, trying to find out how crypto project leaders plan to use AI.

Probably the most well-known is Maker founder Rune Christensen, who essentially plans to relaunch his decade-old project as a bunch of sub-DAOs employing AI governance.

“People misunderstand what we mean with AI governance, right? We’re not talking about AI running a DAO,” he says, adding the AI won’t be enforcing any rules. “The AI cannot do that because it’s unreliable.” Instead the project is working on using AI for coordination and communication — as an “Atlas” to the entire project, as they’re calling it.

“Having that sort of central repository of data just makes it actually realistic to have hundreds of thousands of people from different backgrounds and different levels of understanding  meaningfully collaborate and interact because they’ve got this shared language.”

Near founder Illia Polosukhin may be better known in AI circles as his project began life as an AI startup before pivoting to blockchain. Polosukhin was one of the authors of the seminal 2017 Transformer paper (“Attention Is All You Need”) that laid the groundwork for the explosion of generative AI like ChatGPT over the past year.

Polosukhin has too many ideas about legitimate AI use cases in crypto to detail here, but one he’s very keen on is using blockchain to prove the provenance of content so that users can distinguish between genuine content and AI-generated bullshit. Such a system would encompass provenance and reputation using cryptography.

Illia Polosukhin
Near founder Illia Polosukhin in conversation with AI Eye in Seoul. (Andrew Fenton)

“So cryptography becomes like an instrument to ensure consistency and traceability. And then you need reputation around this cryptography, which is on-chain accounts and record keeping to actually ensure that [X] posted this and [X] is working for Cointelegraph right now.”

Sebastien Borget from The Sandbox says the platform has been using AI for content moderation over the past year. “In-game conversation in any language is actually being filtered, so there is no more toxicity,” he explains. The project is also examining its use for music and avatar generation, as well as for more general user-generated content for world-building.

Meanwhile, Framework Ventures founder Vance Spencer outlined four main use cases for AI, with the most interesting by far training up AI models and then selling them as tokens on-chain. As luck would have it, Frameworks has invested in a game called AI Arena, in which players train AI models to compete in the game.

Keep an eye out for in-depth Magazine features outlining their thoughts in more detail.



AI is for communists?

Speaking of AI and crypto, are they pulling in opposite directions? Dynamo Dao’s Patrick Scott dug up PayPal founder Peter Thiel’s thoughts on AI and crypto in his forward to the re-release of the 1997 non-fiction book The Sovereign Individual, which predicted cryptocurrency, among other things. In it, Thiel argues AI is a technology of control, while crypto is one of liberation.

“AI could theoretically make it possible to centrally control an entire economy. It is no coincidence that AI is the favorite technology of the Communist Party of China. Strong cryptography, at the other pole, holds out the prospect of a decentralized and individualized world. If AI is communist, crypto is libertarian.”

Roblox lets users build with AI

Roblox has unveiled a new feature called Assistant, which will let users build virtual assets and write code using generative AI. In the demo, users write something like “make a game set in ancient ruins” and “add some trees,” and the AI does the rest. It’s still being developed and will be released at the end of this year or early next year. The plan is for Assistant to one day generate sophisticated gameplay or make 3D models from scratch.

Roblox
Roblox Assistant (Roblox)

Terrible workers benefit most from AI

The worst workers at your place of employment are likely to benefit the most from using AI tools, according to a new study by Boston Consulting Group. The output of below-average workers improved by 43% when using AI, while the output of above-average workers improved by just 17%.

Interestingly, workers who used AI for things beyond its current abilities performed 20% worse because the AI would present them with plausible but wrong responses.

Google Gemini gears up for release

Google’s GPT-4 competitor is nearing release, with The Information reporting that a small group of companies has been given early access to Gemini. For those who came in late, Google was seen leading the AI race right up until OpenAI dumped ChatGPT on the market in November last year (arguably before it was ready) and leaped ahead.

Google hopes Gemini can best GPT-4 by offering not just text generation capabilities but also image generation, enabling the creation of contextual images (rumors suggest its being trained on YouTube content, among other data). There are plans in future for features like using it to control software with your voice or to analyze charts. Highlighting how important Gemini is, Google co-founder Sergey Brin is said to be playing an instrumental role in the evaluation and training of the models.

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AI expert Brian Roemmele says he’s been testing a version of Gemini and finds it “equivalent to ChatGPT-4 but with newly up to the second knowledge base. This saves it from some hallucinations.”

Google CEO Sundar Pichai told Wired this week he has no regrets about not launching its chatbot early to beat ChatGPT because the tech “needed to mature a bit more before we put it in our products.”

“It’s not fully clear to me that it might have worked out as well,” Pichai said. “The fact is, we could do more after people had seen how it works. It really won’t matter in the next five to 10 years.”

AI meets 15-minute cities

Researchers at Tsinghua University in China have built an AI system that plans out cities in line with current thinking about walkable “15-minute cities” that have lots of green space (please direct conspiracy theories about the topic to X).

The researchers found the AI was better at tedious computation and repetitive tasks and was able to complete in seconds what human planners required 50 to 100 minutes to work through. Overall, they determined it was able to improve on human designs by 50% when assessed on access to services, green spaces and traffic levels.

The headline figure is a bit misleading, though, as the finished plans only increased access to basic services by 12% and to parks by 5%. In a blind judging process, 100 urban planners preferred some of the AI designs by a clear margin but expressed no preference for other designs. The researchers envisage their AI working as an assistant doing the boring stuff while humans focus on more challenging and creative aspects.

Stephen Fry is cloned

Blackadder and QI star and much-loved British comedy institution Stephen Fry says he has become a victim of AI voice cloning.

On September 14, Fry played a clip from a historical documentary he apparently narrated at the CogX Festival in London last week — but revealed the voice wasn’t him at all. “I said not one word of that — it was a machine,” he said. “They used my reading of the seven volumes of the Harry Potter books, and from that dataset an AI of my voice was created, and it made that new narration.”

Training AI to rip off the work of actors and repurpose them elsewhere without payment is one of the key issues in the current actors and writers strike in Hollywood. Fry said the incident was just the tip of the iceberg, and AI will “advance at a faster rate than any technology we have ever seen. One thing we can all agree on: it’s a fucking weird time to be alive.”

QI
Former QI host Stephen Fry (BBC)

How not to cheat using ChatGPT

The sort of academics drawn to cheating using ChatGPT appear to be the sort of people who make dumb mistakes giving that fact away. A paper published in the journal Physica Scripta was retracted after computer scientist Guillaume Cabanac noticed the “regenerate response” in the text, indicating it had been copied directly from ChatGPT.

Cabanac has helped uncover hundreds of AI-generated academic manuscripts since 2015, including a paper in the August edition of Resources Policy, which contained the tell-tale line: “Please note that as an AI language model, I am unable to …”

Physica Scripta
Physica Scripta gets called out over obviously AI-generated content.

All Killer No Filler AI News

— Meta is also working on a new model to compete with GPT-4 that it aims to launch in 2024, according to The Wall Street Journal. It is intended to be many times more powerful than its existing Llama 2.

— Microsoft has open-sourced a novel protein-generating AI called EvoDiff. It works like Stable Diffusion and Dall-E2, but instead of generating images, it designs proteins that can be used for specific medical purposes. This is expected to lead to new classes of drugs and therapies.

— Defense contractor Palantir, along with Cohere, IBM, Nvidia, Salesforce, Scale AI and Stability, have signed up to the White House’s somewhat vague plans for responsible AI development. The administration is also developing an executive order on AI and plans to introduce bipartisan legislation.

— Sixty U.S. senators attended a private briefing recently about the risks of AI from 20 Silicon Valley CEOs and wonks, including Sam Altman, Mark Zuckerberg and Bill Gates. Elon Musk told reporters afterward that the meeting “may go down in history as very important to the future of civilization.”

— ChatGPT traffic has fallen for three months in a row, by roughly 10% in both June and July and a further 3.2% drop in August. The amount of time users spend on the site fell from 8.7 minutes on average in March to seven minutes last month.

— Finnish prisoners are being paid $1.67 to help train AI models for a startup called Metroc. The AI is learning how to determine when construction projects are hiring. 

— The U.S. is way out in front of the AI race, with 4,643 startups and $249 billion of investment since 2013, which is 1.9 times more startups than China and Europe combined.

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Video of the week

Writer and storyteller Jon Finger tried out the HeyGen video app, which is able to not only translate his words but also clone his voice AND sync up his lip movements to the translated text.

Andrew Fenton

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.

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UK to get at least 25 new warships due to defence spending rise – Shapps

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UK to get at least 25 new warships due to defence spending rise - Shapps

The Royal Navy will get 25 new warships – and could get three more – as the government indicates where its planned rise in defence spending will go.

Defence Secretary Grant Shapps told Sky News there are 28 new ships and submarines in the design or construction stage at the moment for the UK’s armed forces.

He said 22 ships are “already in the system” – but there is less clarity over six new warships he announced for the Royal Marines today.

The defence secretary said that the government is committing to three of the new “versatile” ships for the Marines, “and then possibly another three as well”. He later said the final three are “in the design phase”.

He also announced two of the ships being built – type 26 and 31 frigates – will be equipped with land-attack missiles so they will be capable of attacking targets on shore.

Mr Shapps said this is a “very, very large shipbuilding programme, a lot of warships, the golden era of shipbuilding here”.

He added: “It’s all possible because just last month we agreed as a government to spend 2.5% of our GDP on our defence sector because we think it’s very, very important to make sure that those who would seek to do us harm are put off, that they are dissuaded because they can see that we’re serious about our defence.”

Labour has pledged to reach 2.5% of GDP on defence spending when economic conditions allow it, while the Conservatives have said they would reach that number by 2030.

But defence spending fell in the early years of the Conservative government, which has been in power for 14 years, and spending was not boosted when Ukraine was invaded in 2014 or 2022.

grant shapps
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Mr Shapps accused Labour’s defence plan of posing a danger to security

Mr Shapps said the Tory pledge is different to Labour’s because the Conservatives have “set out a timeline”.

“We’ve also said how we would go about largely funding this, and that’s by reducing the size of the civil service, which is much bigger than it was before COVID,” he said.

“We want to get it back down to the size it was before and use that money to spend on defence.

“I have to say, as defence secretary, with everything that I know in this role, that I think that the Labour position presents a danger to this country because it will send a signal to our adversaries that we’re not serious about our defence if we won’t set out that timetable.”

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Labour’s shadow work and pensions minister Alison McGovern said she is “sceptical” about the Conservatives’ claim about how they will fund the spending rise.

She said Labour has had to pledge the rise for when the economy allows “because of what the Conservative Party have done to our economy” – as she accused Liz Truss and Rishi Sunak of implementing “big unfunded tax cuts”.

Ms McGovern added: “I think everybody would expect Rachel Reeves as the shadow chancellor to say, well, we will make our plans when we’ve got access to all of the books, all of the details of Ministry of Defence spending.”

Mr Shapps said the government did not spend as much on defence previously because countries such as China, North Korea, Iran and Russia were not such a threat.

The defence secretary added: “We were living in very, very different times.”

He said the government has also added £24bn to the defence budget over the past couple of years and the UK is “by a country mile the largest spender on defence in Europe, with the second largest in NATO after only the US”.

The fuel would have filled up electricity generators hat powering the HMS Bulwark, pictured
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HMS Bulwark will not be scrapped before its end of service date. Pic: PA

Discussing the UK’s current fleet, Mr Shapps said sister ships HMS Albion and HMS Bulwark are due to come out of service in 2033-2034 but the defence secretary said they will not be scrapped before that.

Albion and Bulwark are currently used as the Royal Navy’s landing platform docks to transport the Royal Marines.

Mr Shapps also announced HMS Argyll and HMS Westminster, two frigates with a combined service of 63 years, are to be retired, with HMS Argyll sold to BAE Systems to be used to support apprentice shipbuilder training.

The new ships being built include Type 26 and Type 31 frigates in Scotland, Astute and Dreadnought submarines in Barrow-in-Furness, and Fleet Solid Support ships in Belfast and Devon.

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Graduate visa route should remain, report finds, after home secretary raised immigration concerns

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Graduate visa route should remain, report finds, after home secretary raised immigration concerns

The graduate visa route should remain as it is key to funding British universities and is “not undermining the quality and integrity” of higher education, a new report has said.

The Migration Advisory Committee (MAC) looked at whether the visa was being abused and if it was not being “driven more by a desire for immigration” after Home Secretary James Cleverly requested an emergency review in March.

A graduate visa permits overseas students to stay in the UK for up to three years after completing a university course in the UK. Partners and children can also apply as dependents.

Former immigration minister Robert Jenrick published a report last week calling for the graduate visa to be abolished, claiming it “allowed people to come and work in the gig economy and on very low wages”.

University and industry leaders had voiced fears that the route, introduced in 2021, could be axed or curtailed if the report had been negative, with universities reporting a steep drop in international students applying over fears of restrictions being introduced.

But the committee, made up of five university professors and a Home Office representative, said they found “no evidence of widespread abuse” of the graduate route.

“The risks of abuse are relatively low due to the limited number of conditions the route imposes,” the report said.

Home Secretary James Cleverly arrives in Downing Street.
Pic: PA
Image:
Home Secretary James Cleverly requested the emergency review. Pic: PA

It also found the visa route is helping universities to expand the range of courses offered while making up for financial losses from domestic students and research, and is “supporting the government’s international educational strategy”.

The report said 114,000 graduate route visas were granted for applicants in 2023, with a further 30,000 for dependents.

It said students from India, Nigeria, China and Pakistan account for 70% of all graduate visas, with India accounting for more than 40%.

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MAC chair and leading labour economist Professor Brian Bell, the head of economics at King’s College London, said: “Our review recommends the graduate route should remain as it is, and is not undermining the quality and integrity of the UK’s higher education system.

“The graduate route is a key part of the offer that we make to international students to come and study in the UK.

“The fees that these students pay help universities to cover the losses they make in teaching British students and doing research.

“Without those students, many universities would need to shrink and less research would be done.

“This highlights the complex interaction between immigration policy and higher education policy.”

A government spokesman said: “We are committed to attracting the best and brightest to study at our world-class universities, whilst preventing abuse of our immigration system, which is why the home secretary commissioned an independent review of the graduate route.

“We have already taken decisive action to address unsustainable levels of migration and our plans are working, with a 24% drop in visa applications across key routes in the first three months of this year, compared with the same period last year.

“We are considering the review’s findings very closely and we will respond fully in due course.”

Bristol.England.September 07, 2018.The Wills Memorial Tower of Bristol University Seen from Park Row
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Graduate visa holders help fund universities, the report found. (File pic of Bristol University)

Reacting to the report, Mr Jenrick said the graduate route “should be scrapped” and the UK needs to “urgently unwind the sector’s growing dependency on foreign students” as he called the route a “backdoor for foreign students to do low-wage work…that isn’t attracting top talent”.

He said the review’s conclusions were “constrained by the narrow terms of reference deliberately set by the government” to back up their International Education Strategy that includes the “arbitrary target” of attracting 600,000 foreign students a year.

“If you order white paint, you get a whitewash,” he said.

The report found most people on the graduate route had completed postgraduate courses, with the highest growth in the visa from non-Russell Group universities’ postgraduate courses – accounting for 66% of all graduate visas.

Since 2021, the proportion of main applicants aged over 25 has increased by 15 percentage points to 54% in 2023.

It also found graduate visa holders are initially overrepresented in lower-paid work but their job prospects and wages improve over time.

Among the first cohort of graduate visa holders, about half moved to skilled worker visas, primarily into skilled roles.

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Commons approves plans to exclude from parliament MPs arrested on suspicion of serious offence

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Commons approves plans to exclude from parliament MPs arrested on suspicion of serious offence

MPs arrested on suspicion of a serious offence face being barred from parliament under new plans approved in a vote on Monday night.

It comes despite the government putting forward a motion that recommended MPs only face a ban if they are charged with a violent or sexual offence – a higher bar.

On Monday night, MPs voted to reverse government moves to water down the measures on “risk-based exclusions” to ensure members can be excluded from parliament at the point of arrest for serious sexual or violent offences, in line with the original recommendation from the House of Commons Commission.

The commission’s initial proposal was later revised by the government to raise the threshold for a potential ban to the point of charge.

But in a surprise move, MPs voted 170 to 169, a majority of one, in favour of an amendment by Lib Dem MP Wendy Chamberlain and Labour MP Jess Phillips to reinstate the original intention of the policy.

MPs were given a free vote on the matter, meaning they were not forced to vote along party lines.

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The division list showed eight Conservative MPs voted in favour of the opposition amendment, including safeguarding minister Laura Farris, former prime minister Theresa May and backbench MP Theresa Villiers.

Ms Villiers was herself recommended for a suspension from the Commons for one day in 2021 after she and several other Conservative MPs breached the code of conduct by trying to influence a judge in the trial of former MP Charlie Elphicke, who was convicted in 2020 of sexually assaulting two women and jailed for two years.

The result means those who have been arrested on suspicion of a violent or sexual offence will be banned from parliament, pending the approval of an independent panel.

Labour MP reads list of women killed in the past year and calls on government
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Labour MP Jess Phillips

Mike Clancy, the general secretary of the Prospect trade union, said the outcome was an “important and overdue victory for common-sense and those working on the parliamentary estate”, while FDA general secretary Dave Penman added: “Parliament is a workplace for thousands and these new formal procedures give staff the safe working environment they deserve and would expect in any other workplace.”

Ms Phillips, who advocated for the case for exclusion at the point of arrest, wrote on X: “Shit! We won the vote by one.”

In the debate preceding the vote, she told the Commons: “Today, just on this one day, I have spoken to two women who were raped by members of this parliament; that’s a fairly standard day for me.

“Exclusion at the point of charge sends a clear message to victims that not only will we not investigate unless a victim goes to the police but we won’t act unless they’re charged, which happens in less than 1% of cases. ‘So what’s the point?’ was essentially what this victim said to me.”

No hiding place for suspected Commons sex pests


Jon Craig - Chief political correspondent

Jon Craig

Chief political correspondent

@joncraig

In a dramatic knife-edge vote, MPs have voted that there should be no hiding place for suspected Commons sex pests.

Former prime minister Theresa May led a small group of eight Conservatives voting with Opposition MPs to defy the Commons Leader Penny Mordaunt.

To the fury of many Opposition MPs, Ms Mordaunt wanted MPs accused of serious sex or violent offences to be barred from parliament only when they’re charged.

It was officially a free vote. But the vast bulk of MPs voting to delay a ban until a charge were Conservatives, including several Cabinet ministers.

That was brave, so close to a general election. Surely those MPs who voted against a ban upon arrest will be attacked by their political opponents at the election for being soft on suspected sex pests?

The timing of the vote was perhaps unfortunate, coming amid renewed controversy earlier this week over sex pest Charlie Elphicke, the former Conservative MP who was jailed for sex offences.

At the weekend his ex-wife Natalie, who defected from the Conservatives to Labour last week, was accused of lobbying a former justice secretary, Sir Robert Buckland, on his behalf, an allegation she dismissed as “nonsense”.

And despite missing the weekly meeting of the parliamentary Labour Party earlier, Ms Elphicke duly voted with her new colleagues for a ban which would have almost certainly penalised her ex-husband had it been in force.

After the vote, leading supporters of the arrest ban were jubilant and stunned by the closeness of the vote. “Incredible!” Labour’s Stella Creasy told Sky News. Mr Rees-Mogg, however, condemned the proposal as a “power grab”.

It’s a historic vote. It doesn’t matter how close it was. Accusers will argue they’re now better protected. And MPs who supported the tougher ban argue that it brings the Commons into line with other workplaces.

Well, up to a point. MPs still have many perks and privileges that other employers and employees don’t. And Parliament still has a long way to go before its working practices and grievance procedures are brought fully up to date.

The exclusion policy was put forward following a number of incidents involving MPs in recent years and concerns about the safety of those working in parliament.

Currently, party whips decide if and when an MP accused of an offence should be prevented from attending the parliamentary estate.

Under the new plans, a risk assessment will take place when the Clerk of the House is informed by the police that an MP has been arrested on suspicion of committing a violent or sexual offence.

The risk assessment will be carried out by a risk assessment panel, appointed by Commons Speaker Sir Lindsay Hoyle.

Commons leader Penny Mordaunt cited the “large” number of “vexatious” claims lodged against colleagues as a reason to require a member to be charged before exclusion.

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Former minister Sir Jacob Rees-Mogg used the debate to describe the exclusion plans as an “extraordinary power grab by standing orders to undermine a fundamental of our constitution”, while Sir Michael Ellis, a former attorney general, said: “A person must not suffer imposition before guilt has been proven.”

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