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Mark Zuckerberg, CEO of Meta testifies before the Senate Judiciary Committee at the Dirksen Senate Office Building on January 31, 2024 in Washington, DC.

Alex Wong | Getty Images

Meta on Tuesday was hit by the European Commission — the executive body of the European Union — with a major investigation into its compliance with the EU’s strict internet content rules.

The Commission said it is investigating Meta over concerns the company hasn’t done enough to ensure effective combatting of disinformation ahead of upcoming European Parliament elections.

The European Parliament elections are due to take place on June 6-9.

In the Commission’s statement Tuesday, it said it suspects Meta is incompliant with DSA (Digital Services Act) obligations regarding tackling deceptive advertisements, disinformation campaigns, and coordinated inauthentic behavior in the EU.

The Commission also said Meta may have infringed the DSA by demoting political content in the recommendation systems of Instagram and Facebook, which it said may have violated transparency requirements.

“We have a well-established process for identifying and mitigating risks on our platforms,” a Meta spokesperson told CNBC via email.

“We look forward to continuing our cooperation with the European Commission and providing them with further details of this work.”

AI & deepfakes represent 'a new type of information security problem', says Drexel's Matthew Stamm

The bloc also took issue with the lack of availability of an effective third-party, real-time civil discourse and election-monitoring tool ahead of upcoming elections to the European Parliament, plus other votes in various individual member states.

It said Meta is in the process of depreciating its CrowdTangle tool, which is a public insights tool enabling real-time election monitoring by researchers, journalists, and civil society through visual dashboards.

For its part, Meta maintains that CrowdTangle is an inefficient election monitoring tool as it lacks enough publicly available data. The company is building new tools on its systems to provide access to more comprehensive data from its platforms.

Potential big fine

Meta is accused of infringing the Digital Services Act, which is a ground-breaking EU law introduced in late 2020 to set out how regulators take a closer eye on tech giants’ content moderation measures as well as efforts to tackle manipulation of elections.

The DSA, which entered into force on Feb. 17, 2024, requires internet giants to give users information on why they’re being recommended certain websites or other details, and the possibility to opt-out.

Ads on those platforms also have to include a label on who paid for them.

The rules also include provisions for ensuring that platforms mitigate risks of election misinformation and manipulation.

Last week, the Commission conducted a “stress test” to test platforms’ readiness to address manipulative behavior in the run-up to elections.

The regulator said it “detected gaps and areas of improvement,” and identified ways to enhance and strengthen cooperation between stakeholders.

Meta qualifies as a Very Large Online Platform (VLOP) under the EU’s DSA law, meaning it faces stricter controls from regulators and potentially heftier fines if it deviates from the rules in the region.

Failure to comply with the rules could lead to fines of up to 6% of the firm’s global turnover and, ultimately, could lead to a temporary ban from operating in the region.

The Commission said it will continue to gather evidence from Meta, for example by sending additional requests for information or conducting interviews and inspections.

The bloc said it can take further enforcement steps including interim measures and non-compliance decisions, if it deems such a step necessary, or accept commitments made by Meta to remedy issues raised in the proceedings.

It hasn’t set a legal deadline for bringing the formal proceedings to an end.

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Scarlett Johansson says OpenAI ripped off her voice after she told the company it could not use her for voice software

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Scarlett Johansson says OpenAI ripped off her voice after she told the company it could not use her for voice software

Actress Scarlett Johansson says OpenAI CEO Sam Altman used a voice similar to hers for its artificial intelligence voice software despite her decline of his invitation.

The response comes after OpenAI said it would pull its ChatGPT AI voice dubbed “Sky”, which launched last week and created controversy for sounding like Johansson’s voice in the movie “Her.”

Johansson said Altman approached her last September and then again two days before it announced ChatGPT-4o on May 13. Johansson played the voice character in the film “Her” about a man who forms a relationship with a virtual artificial intelligence named Samantha.

“After much consideration and for personal reasons, I declined the offer,” Johansson said in a statement to CNBC. “Nine months later, my friends, family and the general public all noted how much the newest system named ‘Sky’ sounded like me.”

Altman tweeted the message “her” on the day OpenAI announced its new AI.

“When I heard the released demo, I was shocked, angered and in disbelief that Mr. Altman would pursue a voice that sounded so eerily similar to mine that my closest friends and news outlets could not tell the difference,” Johansson’s statement continued. “Mr. Altman even insinuated that the similarity was intentional, tweeting a single word “her”

The actress wrote Monday that she has hired legal counsel. Johansson has sparred with large companies like Disney in the past. In 2021, Johansson and Walt Disney settled the breach of contract lawsuit the “Black Widow” actor brought against the studio.

“We’ve heard questions about how we chose the voices in ChatGPT, especially Sky,” Microsoft-backed OpenAI posted on X on Monday.

“Sky’s voice is not an imitation of Scarlett Johansson but belongs to a different professional actress using her own natural speaking voice,” the company wrote in a blog post on Sunday. “To protect their privacy, we cannot share the names of our voice talents.”

Johansson said she wrote two letters to Altman and OpenAI, asking them to detail the process of creating Sky.

“In a time when we are all grappling with deepfakes and the protection of our own likeness, our own work, our own identities, I believe these are questions that deserve absolute clarity,” her statement says. “I look forward to resolution in the form of transparency and the passage of appropriate legislation to help ensure that individual rights are protected.”

OpenAI didn’t immediately respond to a request for comment on Johansson’s statement.

Here is Scarlett Johansson’s full statement:

“Last September, I received an offer from Sam Altman, who wanted to hire me to voice the current ChatGPT 4.0 system. He told me that he felt that by my voicing the system, I could bridge the gap between tech companies and creatives and help consumers to feel comfortable with the seismic shift concerning humans and AI. He said he felt that my voice would be comforting to people. 

After much consideration and for personal reasons, I declined the offer. Nine months later, my friends, family and the general public all noted how much the newest system named “Sky” sounded like me.

When I heard the released demo, I was shocked, angered and in disbelief that Mr. Altman would pursue a voice that sounded so eerily similar to mine that my closest friends and news outlets could not tell the difference. Mr. Altman even insinuated that the similarity was intentional, tweeting a single word “her” – a reference to the film in which I voiced a chat system, Samantha, who forms an intimate relationship with a human.

Two days before the ChatGPT 4.0 demo was released, Mr. Altman contacted my agent, asking me to reconsider. Before we could connect, the system was out there

As a result of their actions, I was forced to hire legal counsel, who wrote two letters to Mr. Altman and OpenAI, setting out what they had done and asking them to detail the exact process by which they created the “Sky” voice. Consequently, OpenAI reluctantly agreed to take down the “Sky” voice.

In a time when we are all grappling with deepfakes and the protection of our own likeness, our own work, our own identities, I believe these are questions that deserve absolute clarity. I look forward to resolution in the form of transparency and the passage of appropriate legislation to help ensure that individual rights are protected.”

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Microsoft announces new PCs with AI chips from Qualcomm

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Microsoft announces new PCs with AI chips from Qualcomm

Microsoft Chairman and Chief Executive Officer Satya Nadella speaks during the Microsoft May 20 Briefing event at Microsoft in Redmond, Washington, on May 20, 2024. 

Jason Redmond | AFP | Getty Images

Microsoft is touting new computers with advanced chips designed to run artificial intelligence features of software for Windows, without quickly using up battery life.

The company on Monday announced a Surface Laptop and a Surface Pro tablet with a Qualcomm chip that can run some AI tasks without an internet connection. Other computer makers like Lenovo, Dell, HP, Asus, Acer and Samsung are also launching AI-ready PCs powered by Qualcomm’s Snapdragon X Elite and X Plus processors, which promise longer battery life and will run Microsoft’s Copilot AI chatbot.

Device makers will release PCs with AMD and Intel chips that will adhere to the Copilot+ standard at a later time, Microsoft said during a press keynote address on its campus in Redmond, Washington. The PCs will be able to translate audio, recommend responses to incoming messages and suggest changes in the Settings app, and even talk with people about what’s on screen.

Copilot+ PCs will start at $999. Microsoft is accepting pre-orders as of Monday, and the devices will become available in June.

A Recall feature will be able to search through a log of previous actions on PCs. Recall relies on AI models that run directly on the device, so it can run offline, and an index of the data never goes to remote servers. AI models will be able to generate images based on written descriptions as well as drawings.

Microsoft is banking on Qualcomm’s energy-efficient Arm-based chips that can handle AI models to defend its Windows franchise. Apple has gained market share in PC shipments with MacBooks containing its Arm-based chips, having moved away from Intel, the top provider of computer processors.

Microsoft is expanding its effort to surround consumers and business users with ChatGPT-like capabilities. OpenAI, backed by Microsoft, released the ChatGPT chatbot in late 2022, and it took off as a tool for quickly obtaining computer-generated poems, email drafts and summaries of historical events.

Other large technology companies, including Microsoft, soon started augmenting their products with generative AI. A Copilot chatbot drawing on ChatGPT’s underlying AI models came to the Bing search engine, along with the Windows 10 and 11 operating systems. Those with Office productivity software subscriptions could pay extra to have a Copilot refer to their documents for written responses.

The GPT-4 model inside ChatGPT has only done its necessary computing work in Microsoft’s Azure cloud. The new PCs can run some AI models locally without an internet connection.

The launch comes nearly four months after Microsoft CEO Satya Nadella told analysts on the company’s earnings call that “in 2024, AI will become a first-class part of every PC.”

Microsoft has had little success in getting people to adopt Arm-based Windows computers, which haven’t always performed as well as PCs running Intel or AMD chips. Certain applications have been incompatible.

Running generative AI locally means computers will need more power, and strong battery life becomes more critical. That might make Windows on Arm more compelling.

Analysts with Morgan Stanley expect Arm systems to be 14% of all Windows PC shipments in 2026, up from 0% in 2023, according to a note distributed to clients earlier this month.

Microsoft shares closed up 1.2% Monday afternoon to $425.34, just shy of a record reached in March. Qualcomm rose 2% to $197.76 for a record close.

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With JPMorgan, Mastercard on board in biometric ‘breakthrough’ year, you may soon start paying with your face

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With JPMorgan, Mastercard on board in biometric 'breakthrough' year, you may soon start paying with your face

Automated fast food restaurant CaliExpress by Flippy, in Pasadena, Calif., opened in January to considerable hype due to its robot burger makers, but the restaurant launched with another, less heralded innovation: the ability to pay for your meal with your face.

CaliExpress uses a payment system from facial ID tech company PopID. To activate it, users register with a selfie. Then they can opt to be recognized and then PopID’s facial verification confirms the transaction.

It’s not the only fast-food chain to employ the technology. In January, Steak ‘N Shake, a fast-casual restaurant in the Midwest, started installing facial recognition kiosks in its 300 locations for patron check-in. The chain says that using PopID takes two to three seconds compared with a check-in with a QR code or mobile app, which can take up to 20 seconds.

Biometric payment options are becoming more common. Amazon introduced pay-by-palm technology in 2020, and while its cashier-less store experiment has faltered, it installed the tech in 500 of its Whole Foods stores last year. Mastercard, which is working with PopID,  launched a pilot for face-based payments in Brazil back in 2022, and it was deemed a success — 76% of pilot participants said they would recommend the technology to a friend. Late last year, Mastercard said it was teaming with NEC to bring its Biometric Checkout Program to the Asia-Pacific region.

“Our focus on biometrics as a secure way to verify identity, replacing the password with the person, is at the heart of our efforts in this area,” said Dennis Gamiello, executive vice president of identity products and innovation at Mastercard. He added that based on positive feedback from the pilot and its research, the checkout technology will come to more new markets later this year.

As stores implement biometric technology for a variety of purposes, from payments to broader anti-theft systems, consumer blowback, and lawsuits, are rising. In March, an Illinois woman sued retailer Target for allegedly illegally collecting and storing her and other customers’ biometric data via facial recognition technology without their consent. Amazon and T-Mobile are also facing legal actions related to biometric technology.

In other countries, most notably China, biometric payment systems are comparatively mature, from visitors to McDonald’s in China being able to use facial recognition technology to pay for their orders, to systems offered by AliPay, which launched biometric payment as far back as 2015 and began testing the technology at KFC locations in China in 2018.

A deal that PopID recently signed with JPMorgan is a sign of things to come in the U.S., said John Miller, PopID CEO, and what he thinks will be a “breakthrough” year for pay-by-face technology.

The consumer case is tied to the growing importance of loyalty programs. Most quick-service restaurants require consumers to provide their loyalty information to earn rewards — which means pulling out a phone, opening an app, finding the link to the loyalty QR code, and then presenting the QR code to the cashier or reader. For payment, consumers are typically choosing between pulling out their wallet, selecting a credit card, and then dipping or tapping the card or pulling out their phone, opening it with Face ID, and then presenting it to the reader. Miller says PopID simplifies this process by requiring just tapping an on-screen button, and then looking briefly at a camera for both loyalty check-in and payment.

“We believe our partnership with JPMorgan is a watershed moment for biometric payments as it represents the first time a leading merchant acquirer has agreed to push biometric payments to its merchant customers,” Miller said. “JPMorgan brings the kind of credibility and assurance that both merchants and consumers need to adopt biometric payments.”

Consumers are getting more comfortable with biometric technology. The majority still prefer fingerprint scans to facial recognition, according to a 2023 survey from PYMENTS, but age is a factor. Gen Z consumers are more open to facial recognition than to fingerprint scans or entering a password.

Juniper Research forecasts over 100% market growth for global biometric payments between 2024 and 2028, and by 2025, $3 trillion in mobile, biometric-secured payments.

To be sure, security concerns and the hacking of biometric data as a consequence of sharing it, will remain important to the evolving usage and conversation.

Sheldon Jacobson, a professor in computer science at the University of Illinois, Urbana-Champaign, said he sees biometric identification as part of a technology continuum that has evolved from payment with a credit card to smartphones. “The next natural step is to simply use facial recognition,” he said.

Concerns about privacy and facial recognition, he says, are overblown. “We voluntarily give up our privacy all the time,” Jacobson said. “We post on Facebook, we use social media and we are basically giving up our privacy. I tell people constantly that everything about you is already out there.” 

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