Week in review 12.12: there is an agreement on the AI Act! ChatGPT has new competition

The European Union has reached an agreement on the AI Act, Google is competing with OpenAI, and Kantar announces marketing trends for 2024. What else have we been living with in the past few days?

Week in review 12.12: there is an agreement on the AI Act! ChatGPT has new competition
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Summary

  • The European Commission, the European Parliament, and EU member states have concluded negotiations on the AI Act, the world's first comprehensive regulations governing the use of artificial intelligence.
  • Google has announced the Gemini project, an artificial intelligence tool that outperforms ChatGPT in key areas.
  • Apple's independent study shows that data security breaches have increased more than threefold from 2013 to 2022, emphasizing the need for robust cloud service protections.
  • The Marketing Trends 2024 study by Kantar agency reveals that 67% of marketers see significant potential in AI, and 80% of consumers prefer brands that engage in significant social issues.
  • Apps and websites using AI to digitally undress women in photos are gaining popularity, with 24 million people visiting such websites in September alone.
  • Adalytics found that Google displayed ads from brands like Amazon, Apple, BMW, Home Depot, Lego, Meta, Microsoft, Paramount, Samsung, and Uber on websites with explicit pornographic content.
  • A study titled "Polish Own Wallet: e-commerce trends 2023" revealed that over 60% of Poles shopping online use virtual subscription services.
  • Over 60% of adult Poles believe that brands should actively participate in the fight against climate change, according to the French-Polish Chamber of Commerce's report.
  • 89.7% of respondents would like their company to encourage them to be physically active through initiatives or sports benefits, according to the latest Activity report.
  • The Pantone Color Institute has announced PANTONE 13-1023 Peach Fuzz as the color of 2024.
  • Spotify has announced its third round of mass layoffs for the year, with 17% of the remaining staff set to lose their jobs by the end of 2023.
  • Taiwanese company TSMC, a producer of advanced integrated circuits and microchips, is considered one of the most important companies in the world due to its focus on research and development and efficient production technology.
  • Pantone's annual announcement of the 'Color of the Year' is a significant part of their business model, as explained in a video prepared by the Wall Street Journal.

From the editorial team

This time, politics did not overshadow the good of society, and the tripartite negotiations between the representatives of the European Commission, the European Parliament and EU member states on the AI Act ended successfully. As emphasized by the AFP agency, ChatGPT and its popularization had a key influence on the start and end of the talks.

So this is really the last call to develop regulations, as other tech giants are also not idle and are following in the footsteps of OpenAI. The latest example is the Gemini system from Google, which supposedly surpasses the capabilities of GPT-4. But is it really? We write about this, among others, in the weekly news review section.

There you will also find disturbing Apple research on cloud security, a new Kantar agency report on next year's marketing trends and the color of the year 2024 according to Pantone. We invite you to read.


Weekly news review

Artificial Intelligence (AI)

AI Act. EU countries have reached an agreement on the regulation of artificial intelligence

On December 8, 2023, after three days of intense negotiations, the European Union countries reached a preliminary agreement on the content of the AI Act - the world's first comprehensive regulations governing the use of artificial intelligence. Tripartite negotiations between the representatives of the European Commission, the European Parliament and EU member states lasted a total of 37 hours. The pressure to conclude them at the beginning of December 2023 was extremely high due to next year's EP elections, which will most likely modify the current compositions of EU institutions. Lack of agreement this year would mean the need to postpone the AI Act project for an indefinite future and thwarting previous efforts.
President of the European Commission Ursula von der Leyen on AI Act
President of the EC Ursula von der Leyen, post on platform X

Gemini. Google showed a super advanced AI tool. However, there are controversies

Google announced a revolution in the field of artificial intelligence, presenting the world with the Gemini project. This research work, as the company itself assures, is the largest scientific and engineering undertaking. In comparative studies with ChatGPT in the GPT-4 version, Gemini in the Ultra version achieved better results in key areas, which include general knowledge, understanding, mathematics and coding. This model also turned out to be the first language model that surpassed human experts in multi-task language understanding. The capabilities of Gemini were presented in the promotional video below - the problem is that Google missed the reality in it. The company admits that some simplifications were made to dynamize the material. For example, playing "rock, paper, scissors" really doesn't look so smooth. Before preparing the video, Gemini was taught to recognize hand layout and game context, and this whole - let's admit it honestly - tedious process, was described step by step on the Google for Developers blog.

Artificial intelligence in business. Only 6% of Polish companies are ready for the AI revolution

Poland needs more progress in the field of AI adaptation in business. According to the latest Cisco AI Readiness Index study only 6% of Polish companies are fully prepared to implement and use technologies based on artificial intelligence. Worldwide, this percentage is 14%.

Cloud services

The EU invests 1.2 billion euros in cloud computing. There are three companies from Poland in the project

The European Commission has approved financial support of 1.2 billion euros for the Joint European Strategic Project of Interest (IPCEI). Its aim is to finance research on the development of advanced cloud processing technologies and their implementation in the industrial sector. As part of the initiative, 19 companies have committed to cooperate on nineteen innovative solutions in the field of cloud computing. Three Polish companies also participate in the project - Octawave, Atente Industries and CloudFerro

Apple conducted research on data leaks in the cloud. The results can be terrifying

Apple published an independent study conducted by Dr. Stuart Madnick, a professor at the Massachusetts Institute of Technology, which provided compelling evidence that data security breaches have become an epidemic threatening sensitive consumer information worldwide. The total number of data security breaches has increased more than threefold from 2013 to 2022. In the last two years alone, even 2.6 billion individual records have been disclosed. The study also highlighted the importance and necessity of mass implementation of strong cloud service protections such as end-to-end encryption.

Marketing

AI, cultural values and ecology. Kantar announced marketing trends for 2024

In 2024, the world of marketing is heading for a revolution, and artificial intelligence will play a key role in it. According to the Marketing Trends 2024 study by Kantar agency 67% of marketers see a huge potential in AI, which heralds a breakthrough in the way brands communicate with the audience. Cultural values are becoming equally important. About 80% of consumers prefer brands that engage in significant social issues. Therefore, companies planning marketing strategies must be sensitive to these changes and adjust their message to the current cultural realities.

Cybersecurity

AI for undressing people in photos is gaining popularity

According to a report by "Bloomberg", apps and websites using artificial intelligence to digitally undress women in photos are gaining popularity. Graphika, a company specializing in social network analysis, reports that in September alone, 24 million people visited websites of this nature. Many of these services heavily use marketing in popular social media. Since the beginning of the year, the number of links advertising such apps has increased by over 2400% on platforms such as X and Reddit.

More trouble for Google. The company displayed government ads on adult websites

Analyses conducted by Adalytics revealed that ads from brands such as Amazon, Apple, BMW, Home Depot, Lego, Meta, Microsoft, Paramount, Samsung, and Uber were displayed by Google on websites containing explicit pornographic content. On the same sites, ads from public institutions, such as the European Commission and the US Treasury Department, and reputable media, including "The Guardian", "The New York Times" and "The Wall Street Journal", and even non-governmental organizations fighting cancer, also appeared.

Running a business – expectations of consumers and employees

65% of Poles shopping online use virtual subscription services

According to the study Polish Own Wallet: e-commerce trends 2023, over 60% of Poles shopping online use virtual subscription services. Most of them are people between 18 and 39 years old, earning between 5000 and 6999 PLN net. Interestingly, despite the popularity of subscriptions, most respondents declared that they only have one such service (32%). A slightly smaller percentage has two such solutions (28%). Every fourth respondent indicated three (23%), and only 5% of respondents five.

ESG. Consumers expect brands to be engaged in ecology [REPORT]

The report published by the French-Polish Chamber of Commerce CSR in practice - barometer of the French-Polish Chamber of Commerce for the eighth time presents the way in which companies manage issues related to ESG (environmental, social, governance). This year's edition of the survey has been expanded with new issues. It includes climate protection, the role of suppliers and non-financial reporting. The study also showed that over 60% of adult Poles believe that brands should actively participate in the fight against climate change, and one third expects them to take action in this direction. The most important challenges according to consumers are improving energy efficiency, using renewable energy sources and offering ecological solutions. 

Sport at the workplace. Results of the report Sports initiatives for employees seriously

Employees want to be physically active, and employers can significantly help them in this area, according to the latest Activity report titled Sports initiatives for employees seriously. 89.7% of respondents would like the company to encourage them to be physically active through initiatives or sports benefits. 81% of respondents believe that participation in corporate sports initiatives can significantly increase their energy and readiness to work during the day, while 74.2% of participants in corporate sports initiatives increased their physical activity thanks to participation in these programs.

Trivia

Pantone Color Institute indicated the color of 2024. It's "Peach Fuzz"

The color of 2024 according to Pantone Color Institute is PANTONE 13-1023 Peach Fuzz, which is "a delicate peach shade, whose all-encompassing spirit enriches the mind, body and soul". The reason indicated by Pantone Color Institute for such a decision is the fact that in times of turmoil and a world that emphasizes productivity, there is a great need for care, empathy, compassion, as well as supporting the inner self and finding moments of respite.

Startup gift guide. PFR Ventures selects the most interesting gifts from Polish startups

The PFR Ventures team has prepared a list of products and services of Polish B2C startups for this year's Santa Claus, which can serve as Christmas gifts. In the Startup Gift Guide there are over fifty items, among which cosmetics and dietary supplements, books, furniture and interior furnishings or pet toys dominate. Startups also have the opportunity to add their products or services to the list if they believe they could serve as Christmas gifts.

Digitized Editorial Team recommends

Spotify Wrapped 2023: crisis, mass layoffs and changes in artist settlements

On Monday, December 4, Spotify's authorities informed the public about the third round of mass layoffs this year. After the January and June reductions, which affected a total of eight hundred people, at the end of 2023, 17% of the remaining staff will lose their jobs. This is even 1.5 thousand employees. The company's CEO Daniel Ek explained in a press release that this decision was made due to the need to optimize costs and adapt to a new, more difficult economic environment.

– The company's operating model has been focused on user and subscriber growth from the very beginning. So this year is not particularly different from previous ones in this respect – notes in an interview with Digitized Krzysztof Ulicki, Vice President Consulting Services at CGI Polska.

So why, despite the apparent lack of changes, did the company lay off over 2 thousand people? And how did it happen that despite stable user growth and a huge stream of revenue, according to financial reports, the entire company recorded losses of $462 million in just the first nine months of 2023?

Read about it here.


AI Act. EU countries have reached an agreement on the regulation of artificial intelligence

On December 8, 2023, after three days of intense negotiations, European Union countries reached a preliminary agreement on the content of the AI Act - the world's first comprehensive regulations governing the use of artificial intelligence. We have traced the AI Act records and the negotiation process for you.


TSMC. Why is the Taiwanese chip manufacturer the most important company in the world

What connects Apple smartphones and tablets, Intel processors, and NVIDIA graphics cards? None of these products would be what they are if it weren't for TSMC – a Taiwanese giant producing the most advanced integrated circuits and microchips in the world.

The genius of TSMC was that this company quickly understood that the future of the semiconductor industry would look like this: there will be many companies designing integrated circuits and only a few manufacturers. That's why the Taiwanese giant has always focused on research and development and the most efficient production technology, always offering the latest available semiconductor manufacturing process. It's about the designation indicating the level of precision - expressed first in microns, and then in nanometers, which are millionths of a millimeter.

You can read more about TSMC in Piotr Zalewski's text.


How does Pantone make money? Wall Street Journal analysis

In the trivia section, there was information about the new color of the year according to Pantone, which inspired us to think about the entire business model of the company. What exactly does this company earn and how does it turn colors into money? You will learn more about this from the video below prepared by Wall Street Journal.