Businesses

Self-Checkout Hasn't Delivered (bbc.com) 316

quonset writes: When self-checkout at stores was rolled out, many people, including on /., cheered. No longer would they have to wait behind the senior citizen who couldn't remember the PIN for their debit card. No longer would they have to wait in long lines trying to ignore the idle chitchat from fellow shoppers. From now on it would be a breeze to get in and get out without human interaction. Except that hasn't happened.

For shoppers, self-checkout was supposed to provide convenience and speed. Retailers hoped it would usher in a new age of cost savings. Their thinking: why pay six employees when you could pay one to oversee customers at self-service registers, as they do their own labour of scanning and bagging for free? While self-checkout technology has its theoretical selling points for both consumers and businesses, it mostly isn't living up to expectations. Customers are still queueing. They need store employees to help clear kiosk errors or check their identifications for age-restricted items. Stores still need to have workers on-hand to help them, and to service the machines.

The technology is, in some cases, more trouble than it's worth.

"It hasn't delivered anything that it promises," says Christopher Andrews, associate professor and chair of sociology at Drew University, US, and author of The Overworked Consumer: Self-Checkouts, Supermarkets, and the Do-It-Yourself Economy. "Stores saw this as the next frontier If they could get the consumer to think that [self-checkout] was a preferable way to shop, then they could cut labour costs. But they're finding that people need help doing it, or that they'll steal stuff. They ended up realising that they're not saving money, they're losing money."

Businesses

Trader Loses $5.7 Million To Slippage in Memecoin Trade 54

Web3 is Going Great: A trader looking to buy $9 million of a recently popular Solana memecoin, dogwifhat (WIF), lost $5.7 million of their funds to slippage as they placed a massive order in a pool with relatively low liquidity. $5.7 million of their funds were lost to "slippage" -- the discrepancy in price that can occur when a trade is so large or a market is so illiquid that the trade itself impacts the asset price.
AI

Can The AI Industry Continue To Avoid Paying for the Content They're Using? (yahoo.com) 196

Last year Marc Andreessen's firm "argued that AI companies would go broke if they had to pay copyright royalties or licensing fees," notes a Los Angeles Times technology columnist.

But are these powerful companies doing even more to ensure they're not billed for their training data? Just this week, British media outlets reported that OpenAI has made the same case, seeking an exemption from copyright rules in England, claiming that the company simply couldn't operate without ingesting copyrighted materials.... The AI companies also argue what they're doing falls under the legal doctrine of fair use — probably the strongest argument they've got — because it's transformative. This argument helped Google win in court against the big book publishers when it was copying books into its massive Google Books database, and defeat claims that YouTube was profiting by allowing users to host and promulgate unlicensed material. Next, the AI companies argue that copyright-violating outputs like those uncovered by AI expert Gary Marcus, film industry veteran Reid Southern and the New York Times are rare or are bugs that are going to be patched.
But finally, William Fitzgerald, a partner at the Worker Agency and former member of the public policy team at Google, predicts Google will try to line up supportive groups to tell lawmakers artists support AI: Fitzgerald also sees Google's fingerprints on Creative Commons' embrace of the argument that AI art is fair use, as Google is a major funder of the organization. "It's worrisome to see Google deploy the same lobbying tactics they've developed over the years to ensure workers don't get paid fairly for their labor," Fitzgerald said. And OpenAI is close behind. It is not only taking a similar approach to heading off copyright complaints as Google, but it's also hiring the same people: It hired Fred Von Lohmann, Google's former director of copyright policy, as its top copyright lawyer....

[Marcus says] "There's an obvious alternative here — OpenAI's saying that we need all this or we can't build AI — but they could pay for it!" We want a world with artists and with writers, after all, he adds, one that rewards artistic work — not one where all the money goes to the top because a handful of tech companies won a digital land grab. "It's up to workers everywhere to see this for what it is, get organized, educate lawmakers and fight to get paid fairly for their labor," Fitzgerald says.

"Because if they don't, Google and OpenAI will continue to profit from other people's labor and content for a long time to come."

The Courts

Despite 16-Year Glitch, UK Law Still Considers Computers 'Reliable' By Default (theguardian.com) 96

Long-time Slashdot reader Geoffrey.landis writes: Hundreds of British postal workers wrongly convicted of theft due to faulty accounting software could have their convictions reversed, according to a story from the BBC. Between 1999 and 2015, the Post Office prosecuted 700 sub-postmasters and sub-postmistresses — an average of one a week — based on information from a computer system called Horizon, after faulty software wrongly made it look like money was missing. Some 283 more cases were brought by other bodies including the Crown Prosecution Service.
2024 began with a four-part dramatization of the scandal airing on British television, and the BBC reporting today that its reporters originally investigating the story confronted "lobbying, misinformation and outright lies."

Yet the Guardian notes that to this day in English and Welsh law, computers are still assumed to be "reliable" unless and until proven otherwise. But critics of this approach say this reverses the burden of proof normally applied in criminal cases. Stephen Mason, a barrister and expert on electronic evidence, said: "It says, for the person who's saying 'there's something wrong with this computer', that they have to prove it. Even if it's the person accusing them who has the information...."

He and colleagues had been expressing alarm about the presumption as far back as 2009. "My view is that the Post Office would never have got anywhere near as far as it did if this presumption wasn't in place," Mason said... [W]hen post office operators were accused of having stolen money, the hallucinatory evidence of the Horizon system was deemed sufficient proof. Without any evidence to the contrary, the defendants could not force the system to be tested in court and their loss was all but guaranteed.

The influence of English common law internationally means that the presumption of reliability is widespread. Mason cites cases from New Zealand, Singapore and the U.S. that upheld the standard and just one notable case where the opposite happened... The rise of AI systems made it even more pressing to reassess the law, said Noah Waisberg, the co-founder and CEO of the legal AI platform Zuva.

Thanks to Slashdot reader Bruce66423 for sharing the article.
Transportation

WSJ: Boeing's Fuselage Factory 'Plagued' by Production Problems and Quality Lapses (msn.com) 78

"Long before the harrowing Alaska Airlines blowout on January 5, there were concerns within Boeing about the way the aerospace giant was building its planes," reports the Wall Street Journal.

There's been issues with various models — like "misdrilled holes, loose rudder bolts, and this month's MAX 9 door-plug blowout" — but many can be traced back to the outsourcing Boeing and other aerospace companies adopted more than 20 years ago where key pieces are built elsewhere and then assembled at Boeing. And the Journal reports that the door-plug was built at a factory that Boeing owned until 2005, now run by Spirit AeroSystems, that "has been plagued by production problems and quality lapses since Boeing ceded so much responsibility for its work... " Spirit is the sole supplier of the fuselages used in many Boeing jets, including the Alaska plane that made the emergency landing. It is heavily dependent on Boeing for revenue, and the two companies have battled for years over costs and quality issues. The earlier MAX grounding and Covid-19 pandemic sapped Spirit's finances, and the company slashed thousands of jobs, leaving it short-handed when demand bounced back. Some Spirit employees said production problems were common and internal complaints about quality were ignored. In a given month, at a production rate of two fuselages a day, there are 10 million holes that need to be filled with some combination of bolts, fasteners and rivets. "We have planes all over the world that have issues that nobody has found because of the pressure Spirit has put on employees to get the job done so fast," said Cornell Beard, president of the International Association of Machinists and Aerospace Workers chapter representing workers at Spirit's Wichita factory... Alaska Airlines and United Airlines say they have found loose hardware on other MAX 9 jets they have checked, suggesting that problems go beyond one plane...

The company, which had 15,900 workers in four U.S. factories at the end of 2019, laid off thousands of people in Wichita at the height of the pandemic. When it needed to ramp back up, not only did Spirit have fewer people on site, the company had lost years of expertise. There were fewer experienced mechanics, but also fewer experts who could inspect the quality of their work. [Spirit CEO Pat Shanahan ] said the quick production ramp-up and the earlier MAX grounding left the company short of experienced workers. "When you have disruption, you have instability," he said...

For more than a decade, Spirit and Boeing battled over costs, quality and the pace of production. Boeing's demands for lower prices left Spirit strapped for cash as managers panicked over meeting increasingly demanding deadlines. Boeing routinely had employees on the ground in Wichita and conducted audits of the supplier. The result, some current and former employees say: a factory where workers rush to meet unrealistic quotas and where pointing out problems is discouraged if not punished. Increasingly, they say, planes have been leaving Wichita with so-called escapements, or undetected defects. "It is known at Spirit that if you make too much noise and cause too much trouble, you will be moved," said Joshua Dean, a former Spirit quality auditor who says he was fired after flagging misdrilled holes in fuselages. "It doesn't mean you completely disregard stuff, but they don't want you to find everything and write it up." His account is included in a shareholder lawsuit filed in December against Spirit that alleges the company failed to disclose costly defects.

A Spirit spokesman said the company strongly disagrees with the assertions and intends to defend against the suit...

After being laid off during the pandemic shutdown, Dean returned to Spirit in May 2021. By then, he said, the company had lost many of its most experienced mechanics and auditors. Spirit already was under more intense scrutiny from Boeing. The jet maker placed Spirit on a so-called probation, in which the company more closely scrutinized the supplier's work. To get off probation, Spirit needed to reduce the number of defects on the line. At one point, Dean said, the company threw a pizza party for employees to celebrate a drop in the number of defects reported. Chatter at the party turned to how everyone knew that the defect numbers were down only because people were reporting fewer problems.

On the Spirit factory floor, some machinists building planes say their concerns about quality rarely get conveyed to more senior managers, and that quality inspectors fear retaliation if they point out too many problems. Union representatives complained to leaders last fall that the company removed inspectors from line jobs and replaced them with contract workers after they flagged multiple defects.

Two key quotes from the article:
  • "As some problems on both the 787 and 737 were traced back to Spirit, Boeing executives said in 2023 that the plane maker would be ratcheting up oversight of the supplier it once owned."
  • New FAA chief Mike Whitaker said "Whatever's happened over the previous years — because this has been going on for years — has not worked." When it comes to what caused last week's in-flight incident, "All indications are it's manufacturing."

Education

The Billionaires Spending a Fortune To Lure Scientists Away From Universities (nytimes.com) 77

An anonymous reader quotes a report from the New York Times: In an unmarked laboratory stationed between the campuses of Harvard and the Massachusetts Institute of Technology, a splinter group of scientists is hunting for the next billion-dollar drug. The group, bankrolled with $500 million from some of the wealthiest families in American business, has created a stir in the world of academia by dangling seven-figure paydays to lure highly credentialed university professors to a for-profit bounty hunt. Its self-described goal: to avoid the blockages and paperwork that slow down the traditional paths of scientific research at universities and pharmaceutical companies, and discover scores of new drugs (at first, for cancer and brain disease) that can be produced and sold quickly.

Braggadocio from start-ups is de rigueur, and plenty of ex-academics have started biotechnology companies, hoping to strike it rich on their one big discovery. This group, rather boastfully named Arena BioWorks, borrowing from a Teddy Roosevelt quote, doesn't have one singular idea, but it does have a big checkbook. "I'm not apologetic about being a capitalist, and that motivation from a team is not a bad thing," said the technology magnate Michael Dell, one of the group's big-money backers. Others include an heiress to the Subway sandwich fortune and an owner of the Boston Celtics. The wrinkle is that for decades, many drug discoveries have not just originated at colleges and universities, but also produced profits that helped fill their endowment coffers. The University of Pennsylvania, for one, has said it earned hundreds of millions of dollars for research into mRNA vaccines used against Covid-19. Under this model, any such windfall would remain private. [...]

The five billionaires backing Arena include Michael Chambers, a manufacturing titan and the wealthiest man in North Dakota, and Elisabeth DeLuca, the widow of a founder of the Subway chain. They have each put in $100 million and expect to double or triple their investment in later rounds. In confidential materials provided to investors and others, Arena describes itself as "a privately funded, fully independent, public good." Arena's backers said in interviews that they did not intend to entirely cut off their giving to universities. Duke turned down an offer from Mr. Pagliuca, an alumnus and board member, to set up part of the lab there. Mr. Dell, a major donor to the University of Texas hospital system in his hometown, Austin, leased space for a second Arena laboratory there. [Stuart Schreiber, a longtime Harvard-affiliated researcher who quit to be Arenaâ(TM)s lead scientist] said it would require years -- and billions of dollars in additional funding -- before the team would learn whether its model led to the production of any worthy drugs. "Is it going to be better or worse?" Dr. Schreiber said. "I don't know, but it's worth a shot."

Power

White House Unveils $623 Million In Funding To Boost EV Charging Points (theguardian.com) 101

An anonymous reader quotes a report from The Guardian: Joe Biden's administration has unveiled $623 million in funding to boost the number of electric vehicle charging points in the U.S., amid concerns that the transition to zero-carbon transportation isn't keeping pace with goals to tackle the climate crisis. The funding will be distributed in grants for dozens of programs across 22 states, such as EV chargers for apartment blocks in New Jersey, rapid chargers in Oregon and hydrogen fuel chargers for freight trucks in Texas. In all, it's expected the money, drawn from the bipartisan infrastructure law, will add 7,500 chargers to the US total.

There are about 170,000 electric vehicle chargers in the U.S., a huge leap from a network that was barely visible prior to Biden taking office, and the White House has set a goal for 500,000 chargers to help support the shift away from gasoline and diesel cars. "The U.S. is taking the lead globally on electric vehicles," said Ali Zaidi, a climate adviser to Biden who said the US is on a trajectory to "meet and exceed" the administration's charger goal. "We will continue to see this buildout over the coming years and decades until we've achieved a fully net zero transportation sector," he added.
On Thursday, the House approved legislation to undo a Biden administration rule meant to facilitate the proliferation of EV charging stations. "S. J. Res. 38 from Sen. Marco Rubio (R-Fla.), would scrap a Federal Highway Administration waiver from domestic sourcing requirements for EV chargers funded by the 2021 bipartisan infrastructure law. It already passed the Senate 50-48," reports Politico.

"A waiver undercuts domestic investments and risks empowering foreign nations," said Rep. Sam Graves (R-Mo.), chair of the Transportation and Infrastructure Committee, during House debate Thursday. "If the administration is going to continue to push for a massive transition to EVs, it should ensure and comply with Buy America requirements." The White House promised to veto it and said it would backfire, saying it was so poorly worded it would actually result in fewer new American-made charging stations.
Science

Scientists Scramble To Keep Dog Aging Project Alive (nytimes.com) 42

Emily Anthes reports via the New York Times: In late 2019, scientists began searching for 10,000 Americans willing to enroll their pets in an ambitious new study of health and longevity in dogs. The researchers planned to track the dogs over the course of their lives, collecting detailed information about their bodies, lifestyles and home environments. Over time, the scientists hoped to identify the biological and environmental factors that kept some dogs healthy in their golden years -- and uncover insights about aging that could help both dogs and humans lead longer, healthier lives. Today, the Dog Aging Project has enrolled 47,000 canines and counting, and the data are starting to stream in. The scientists say that they are just getting started. "We think of the Dog Aging Project as a forever project, so recruitment is ongoing," said Daniel Promislow, a biogerontologist at the University of Washington and a co-director of the project. "There will always be new questions to ask. We want to always have dogs of all ages participating."

But Dr. Promislow and his colleagues are now facing the prospect that the Dog Aging Project might have its own life cut short. About 90 percent of the study's funding comes from the National Institute on Aging, a part of the National Institutes of Health, which has provided more than $28 million since 2018. But that money will run out in June, and the institute does not seem likely to approve the researchers' recent application for a five-year grant renewal, the scientists say. "We have been told informally that the grant is not going to be funded," said Matt Kaeberlein, the other director of the Dog Aging Project and a former biogerontology researcher at the University of Washington. (Dr. Kaeberlein is now the chief executive of Optispan, a health technology company.) The N.I.A. could still choose to provide more funding for the Dog Aging Project at some point, but if the researchers don't bring in more money in the coming months, they will have to pause or pare back the study. "It's almost an emergency," said Stephanie Lederman, the executive director of the nonprofit American Federation for Aging Research. "It's one of the most important projects in the field right now." [...]

The institute's immediate priority is to raise enough money to keep the Dog Aging Project afloat. It would take about $7 million to conduct the research the team had planned to do over the next year, but $2 million would be enough to "keep the lights on," Dr. Promislow said. The institute is still awaiting its official tax exempt status but is already seeking donations. "We haven't yet identified a dog-loving billionaire interested in supporting aging research," Dr. Promislow said. "But we're certainly going to try."

The Courts

eBay To Pay $3 Million Penalty For Employees Sending Live Cockroaches, Fetal Pig To Bloggers (cbsnews.com) 43

E-commerce giant eBay agreed to pay a $3 million penalty for the harassment and stalking of a Massachusetts couple by several of its employees. "The couple, Ina and David Steiner, had been subjected to threats and bizarre deliveries, including live spiders, cockroaches, a funeral wreath and a bloody pig mask in August 2019," reports CBS News. From the report: Thursday's fine comes after several eBay employees ran a harassment and intimidation campaign against the Steiners, who publish a news website focusing on players in the e-commerce industry. "eBay engaged in absolutely horrific, criminal conduct. The company's employees and contractors involved in this campaign put the victims through pure hell, in a petrifying campaign aimed at silencing their reporting and protecting the eBay brand," Levy said. "We left no stone unturned in our mission to hold accountable every individual who turned the victims' world upside-down through a never-ending nightmare of menacing and criminal acts."

The Justice Department criminally charged eBay with two counts of stalking through interstate travel, two counts of stalking through electronic communications services, one count of witness tampering and one count of obstruction of justice. The company agreed to pay $3 million as part of a deferred prosecution agreement. Under the agreement, eBay will be required to retain an independent corporate compliance monitor for three years, officials said, to "ensure that eBay's senior leadership sets a tone that makes compliance with the law paramount, implements safeguards to prevent future criminal activity, and makes clear to every eBay employee that the idea of terrorizing innocent people and obstructing investigations will not be tolerated," Levy said.

Former U.S. Attorney Andrew Lelling said the plan to target the Steiners, which he described as a "campaign of terror," was hatched in April 2019 at eBay. Devin Wenig, eBay's CEO at the time, shared a link to a post Ina Steiner had written about his annual pay. The company's chief communications officer, Steve Wymer, responded: "We are going to crush this lady." About a month later, Wenig texted: "Take her down." Prosecutors said Wymer later texted eBay security director Jim Baugh. "I want to see ashes. As long as it takes. Whatever it takes," Wymer wrote. Investigators said Baugh set up a meeting with security staff and dispatched a team to Boston, about 20 miles from where the Steiners live. "Senior executives at eBay were frustrated with the newsletter's tone and content, and with the comments posted beneath the newsletter's articles," the Department of Justice wrote in its Thursday announcement.
Two former eBay security executives were sentenced to prison over the incident.
The Almighty Buck

X Announces Peer-To-Peer Payment Service Will Launch In 2024 (forbes.com) 109

SonicSpike shares a report from Forbes: X, the social media site formerly known as Twitter, announced it would begin rolling out a peer-to-peer payment service similar to Venmo or PayPal this year -- a feature the social media site's billionaire owner Elon Musk has long pushed as part of his plan to develop an "everything app." X officially announced the new feature in a blog post, touting the new service designed to enhance "user utility and new opportunities for commerce." The company did not give a timeframe on when the new service would be available, but Musk previously told Ark Invest CEO Cathie Wood it could launch as early as "mid-2024."

According to the company, the new payment service will "showcas[e] the power of living more of your life in one place," as owner Elon Musk continues to promote X as a future "everything app" capable of handling social media, video and other original content on the same site. X Payments has registered to do business in at least 32 states, according to public records, and has acquired a money transmitter license needed to process payments in 10, TechCrunch reported in December.

Bitcoin

Englishman Who Posed As HyperVerse CEO Says Sorry To Investors Who Lost Millions (theguardian.com) 23

Stephen Harrison, an Englishman living in Thailand who posed as chief executive Steven Reece Lewis for the launch of the HyperVerse crypto scheme, told the Guardian Australia that he was paid to play the role of chief executive but denies having 'pocketed' any of the money lost. He says he received 180,000 Thai baht (about $7,500) over nine months and a free suit, adding that he was "shocked" to learn the company had presented him as having fake credentials to promote the scheme. From the report: He said he felt sorry for those who had lost money in relation to the scheme -- which he said he had no role in -- an amount Chainalysis estimates at US$1.3 billion in 2022 alone. "I am sorry for these people," he said. "Because they believed some idea with me at the forefront and believed in what I said, and God knows what these people have lost. And I do feel bad about this. "I do feel deeply sorry for these people, I really do. You know, it's horrible for them. I just hope that there is some resolution. I know it's hard to get the money back off these people or whatever, but I just hope there can be some justice served in all of this where they can get to the bottom of this." He said he wanted to make clear he had "certainly not pocketed" any of the money lost by investors.

Harrison, who at the time was a freelance television presenter engaged in unpaid football commentary, said he had been approached and offered the HyperVerse work by a friend of a friend. He said he was new to the industry and had been open to picking up more work and experience as a corporate "presenter." "I was told I was acting out a role to represent the business and many people do this," Harrison said. He said he trusted his agent and accepted that. After reading through the scripts he said he was initially suspicious about the company he was hired to represent because he was unfamiliar with the crypto industry, but said he had been reassured by his agent that the company was legitimate. He said he had also done some of his own online research into the organization and found articles about the Australian blockchain entrepreneur and HyperTech chairman Sam Lee. "I went away and I actually looked at the company because I was concerned that it could be a scam," Harrison said. "So I looked online a bit and everything seemed OK, so I rolled with it."
The HyperVerse crypto scheme was promoted by Lee and his business partner Ryan Xu, both of which were founders of the collapsed Australian bitcoin company Blockchain Global. "Blockchain Global owes creditors $58 million and its liquidator has referred Xu and Lee to the Australian Securities and Investments Commission for alleged possible breaches of the Corporations Act," reports The Guardian. "Asic has said it does not intend to take action at this time."

Rodney Burton, known as "Bitcoin Rodney," was arrested and charged in the U.S on Monday for his alleged role in promoting the HyperVerse crypto scheme. The IRS alleges Burton was "part of a network that made 'fraudulent' presentations claiming high returns for investors based on crypto-mining operations that did not exist," reports The Guardian.
Bitcoin

Apple Pulls Binance, Other Crypto Apps From India Store (techcrunch.com) 8

Apple has pulled apps of at least nine crypto exchanges including Binance and Kraken from its App Store in India, less than two weeks after most of these global firms were flagged for operating "illegally" in the country. From a report: Financial Intelligence Unit, an Indian government agency that scrutinizes financial transactions, late last month issued show cause notices to nine crypto firms and alleged that they weren't compliant with India's anti-money laundering rules. FIU had asked India's IT Ministry to block websites of all the nine services in India. Other exchanges whose apps have been pulled are Huobi, Gate.io, Bittrex, and Bitfinex. Bitstamp, another offending exchange named by FIU, was still operational on App Store in India, though the eponymous app of OKX had also disappeared.
AI

OpenAI Launches New Store For Users To Share Custom Chatbots (bloomberg.com) 8

OpenAI has launched an online store where people can share customized versions of the company's popular ChatGPT chatbot, after initially delaying the rollout because of leadership upheaval last year. From a report: The new store, which rolled out Wednesday to paid ChatGPT users, will corral the chatbots that users create for a variety of tasks, for example a version of ChatGPT that can teach math to a child or come up with colorful cocktail recipes. The product, called the GPT Store, will include chatbots that users have chosen to share publicly. It will eventually introduce ways for people to make money from their creations -- much as they might through the app stores of Apple or Alphabet's Google.

Similar to those app stores, OpenAI's GPT Store will let users see the most popular and trending chatbots on a leaderboard and search for them by category. In a blog post announcing the rollout, OpenAI said that people have made 3 million custom chatbots thus far, though it was not clear how many were available through its store at launch. The store's launch comes as OpenAI works to build out its ecosystem of services and find new sources of revenue. On Wednesday, OpenAI also announced a new paid ChatGPT tier for companies with smaller teams that starts at $25 a month per user. OpenAI first launched a corporate version of ChatGPT with added features and privacy safeguards in August.

The Almighty Buck

Global Economy Set For Its Worst Half Decade of Growth in 30 Years, World Bank Says (cnbc.com) 154

The global economy is on course to record its worst half decade of growth in 30 years, according to the World Bank. From a report: Global growth is forecast to slow for the third year in a row in 2024, dipping to 2.4% from 2.6% in 2023, the organization said in its latest "Global Economic Prospects" report released Tuesday. Growth is then expected to rise marginally to 2.7% in 2025, though acceleration over the five-year period will remain almost three-quarters of a percentage point below the average rate of the 2010s.

And despite the global economy proving resilient in the face of recessionary risks in 2023, increased geopolitical tensions will present fresh near-term challenges, the organization said, leaving most economies set to grow more slowly in 2024 and 2025 than they did in the previous decade. "You have a war in Eastern Europe, the Russian invasion of Ukraine. You have a serious conflict in the Middle East. Escalation of these conflicts could have significant implications for energy prices that could have impacts on inflation as well as on economic growth," Ayhan Kose, the World Bank's deputy chief economist and director of the Prospects Group, told CNBC's Silvia Amaro. The bank warned that without a "major course correction," the 2020s will go down as "a decade of wasted opportunity."

AI

Duolingo, Relying More On AI, Says It Will Lay Off 10% of Its Contractors 69

An anonymous reader quotes a report from PCMag: Duolingo tells Bloomberg that it's cutting 10% of its contractors, months after its CEO said Duolingo is relying more on generative AI to develop its content. "We just no longer need as many people to do the type of work some of these contractors were doing. Part of that could be attributed to AI," a Duolingo spokesperson tells Bloomberg.

This comes after an unnamed Duolingo contractor claimed on Reddit that Duolingo had axed a large number of jobs. "In December 2023, Duolingo 'off boarded' a huge percentage of their contractors who did translations," the contractor wrote. "Of course this is because they figured out that AI can do these translations in a fraction of the time. Plus it saves them money." The contractor claims to have worked at Duolingo for five years in a four-member team. But now the team has been cut in half as AI has taken over the duties of generating content and translation for courses on Duolingo. "The two who remained will just review AI content to make sure it's acceptable," the contractor added.
A Duolingo spokesperson tells PCMag, "these are not layoffs," since the contractors were "offboarded as their projects wrapped up at the end of 2023."

"While we do use AI for many different purposes at Duolingo, including the generation of some course content, human experts are still very involved in the creation of Duolingo's content. I also want to note that we attempted to find alternate roles for each contractor before off-boarding as a last resort."
Education

US News Makes Money From Some of Its Biggest Critics: Colleges 29

Jonathan Henry, a vice president at the University of Maine at Augusta, is hoping that an email will arrive this month. He is also sort of dreading it. The message, if it comes, will tell him that U.S. News & World Report has again ranked his university's online programs among the nation's best. History suggests the email will also prod the university toward paying U.S. News, through a licensing agent, thousands of dollars for the right to advertise its rankings. The New York Times: For more than a year, U.S. News has been embroiled in another caustic dispute about the worthiness of college rankings -- this time with dozens of law and medical schools vowing not to supply data to the publisher, saying that rankings sometimes unduly influence the priorities of universities. But school records and interviews show that colleges nevertheless feed the rankings industry, collectively pouring millions of dollars into it.

Many lower-profile colleges are straining to curb enrollment declines and counter shrinking budgets. And any endorsement that might attract students, administrators say, is enticing. Maine at Augusta spent $15,225 last year for the right to market U.S. News "badges" -- handsome seals with U.S. News's logo -- commemorating three honors: the 61st-ranked online bachelor's program for veterans, the 79th-ranked online bachelor's in business and the 104th-ranked online bachelor's. Mr. Henry, who oversees the school's enrollment management and marketing, said there was just too much of a risk of being outshined and out-marketed by competing schools that pay to flash their shiny badges. "If we could ignore them, wouldn't that be grand?" Mr. Henry said of U.S. News. "But you can't ignore the leviathan that they are."

Nor can colleges ignore how families evaluate schools. "The Amazonification of how we judge a product's quality," he said, has infiltrated higher education, as consumers and prospective students alike seek order from chaos. The money flows from schools large and small. The University of Nebraska at Kearney, which has about 6,000 students, bought a U.S. News "digital marketing license" for $8,500 in September. The Citadel, South Carolina's military college, moved in August to spend $50,000 for the right to use its rankings online, in print and on television, among other places. In 2022, the University of Alabama shelled out $32,525 to promote its rankings in programs like engineering and nursing. Critics believe that the payments, from schools of any size and wealth, enable and incentivize a ranking system they see as harmful.
United States

IRS To Begin Trial of Its Own Free Tax-Filing System (nytimes.com) 96

The Internal Revenue Service is rolling out a free option for filing federal tax returns this year to some residents of a dozen states. From a report: Last month, the agency published details of its plan to test an in-house filing system, in which taxpayers submit their federal tax returns directly to the agency online at no cost. Residents of 12 states are eligible to participate if they meet certain criteria. "This is a critical step forward for this innovative effort that will test the feasibility of providing taxpayers a new option to file their returns for free directly with the I.R.S.," Danny Werfel, the agency's commissioner, said in a recent statement.

While the direct filing system is starting on a limited basis, it has already faced some resistance, particularly from commercial tax-preparation companies. A spokeswoman for Intuit, Tania Mercado, criticized the direct file project as a "half-baked solution" and a waste of taxpayer money. "The direct file scheme is a solution in search of a problem," she said. Intuit makes the TurboTax tax preparation software. Democrats in Congress generally support the idea of free, direct filing, while Republicans contend that the idea, part of President Biden's plan to overhaul the I.R.S., would give the agency even more power over ordinary taxpayers.
US lawmakers said earlier this month that federal tax credits that Intuit received could have been better spent to build a free government alternative to Intuit's popular online tax preparation software TurboTax. The IRS estimates it would cost $64 million to $249 million annually for the agency to run a free-filing program. In the fiscal year ending in July 2023, Mountain View, California-based Intuit received $106 million in federal research and experimentation credits, which amounted to about 4% of its total R&D expenses, according to a regulatory filing.
The Almighty Buck

'As AI Rises, is Web3 Dead in the Water?' (inc.com) 128

Inc. reports that funding for Web3 startups in 2023 "declined 73% from 2022, according to new data from Crunchbase." In total, Web3 startups netted $7.8 billion in 2023, compared with the $21.5 billion raised in 2022. It's part of a broader and sobering comedown from the stratospheric highs of tech's pandemic boom time, in which investment flowed to startups at historic rates, valuations soared and unicorns emerged seemingly every week. Last year firmly belonged to AI, with $17.8 billion invested in the sector, according to Dealroom.

Even as some remain convinced of Web3's future, uncertainty lingers over certain stumbling blocks, including how the technology can be farmed out to a massive user base on par with today's biggest tech firms. "I haven't seen [a company] that screams to me, 'this is what's going to get people on board,'" says Jillian Grennan, a business and law professor at UC Berkeley who studies Web3. Web3 startups are failing to net the investment indicative of revolutionary tech as AI steals the show and the dough. The reasons vary: Many have pointed out that defining Web3 is tricky, and Grennan mentions that appetites for navigating digital worlds may have been dented by pandemic-born Zoom fatigue.

Beyond that, there's the question of how to regulate crypto — a marquee aspect of the Web3 universe--which may have given investors some pause. "In this next period, we're going to get some important regulatory clarity that we just haven't had," Richard Dulude, co-founder and partner at Underscore VC tells Inc. "A lot of people sit on the sidelines until they have that...."

Interest rate hikes and the bloated startup valuations of 2021 have meant VCs can't throw their weight behind exciting ideas alone, Dulude says. The sector is undergoing "this transition from chasing growth, and trying to grow at all costs to actually investing behind the growth," he says.... All the investment couldn't compensate for one vulnerability: The technology is hard to use... Macroeconomic factors are of course important, but an industry resurgence depends first on whether Web3 can become easier to navigate for average people and provide them with a reason to hang around. "It's still pretty cumbersome to interact with the technology," Dulude explains. "Until it's made usable, it's really hard to break out of the current market environment we're in."

Businesses

Netflix Considers Ways To Make Money From Videogames in Possible Pivot (wsj.com) 36

Netflix has said it plans to be in gaming for years to come. Now the company is trying to figure out how to make money from it, a potential shift in strategy for the streamer. From a report: Executives at the streaming giant have had discussions in recent months about how to generate revenue from its games, according to people familiar with the discussions. Netflix games are currently free for all subscribers, part of a strategy to keep users coming back to the streaming service when their favorite shows are between seasons as well as to attract new fans.

Some of the ideas that have been discussed include in-app purchases, charging for more sophisticated games it is developing or giving subscribers to its newer ad-supported tier access to games with ads in them, the people said. Such moves would mark a pivot for Netflix, which has resisted putting ads or in-app purchases in its games. [...] Netflix encourages open debate internally on its strategy, which is a key pillar of its culture, and such discussions don't mean the company will decide to monetize games.

AI

Google Is Preparing a Paid Version of Bard 10

As spotted by X user bedros_p, Google appears to be preparing to introduce a paid upgrade for Bard Advanced, a "new, cutting-edge AI experience" announced in December that gives users access to Google's best models and capabilities. Android Police reports: According to the strings, you will be able to "Try Bard Advanced for 3 months, on us." After that test period, you will likely have to pay up for the service. A defunct link within the code suggests that it may be part of Google One, but it's not clear if Bard Advanced will be added to all tiers or only more expensive ones with more Google Drive storage. It's also possible that it will be an extra new tier in Google One.

As a refresher, Google launched its most capable AI model yet in December 2023, called Gemini. The LLM is available in three tiers, including a Nano version capable of running on devices like phones and a Pro version currently powering Bard in the US. There is also a Gemini Ultra which isn't public just yet, but supposedly outperforms other LLMs in almost all metrics. Google says that this is the one that will power Bard Advanced.

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