AI Deception: How Tech Companies Are Fooling Us

this video is brought to you by Aura hello welcome to another episode of Cold Fusion in 1770 the Hungarian author and inventor, the wolf Gan Von Kemplin, built and presented a self-operating chess machine called The Mechanical Turk in demonstrations throughout Europe, his invention for playing The majority won at chess. of the games he plays against real human chess players and it is even said that he beat players like Napoleon and Benjamin Franklin, naturally. The invention was extremely popular, a marvel of its time, however it was actually just a guy under the table secretly operating the machine in In other words, it was a hoax about 250 years later, in 2016, Amazon pulled a stunt Similar: Their payment system called just walk out allowed customers to simply grab items from the store and walk out.

Under this system, customers did not have to manually scan their items in the transactions and logistics were automatically taken care of behind the scenes by AI. An elegant combination of Compu Vision fusion sense and deep learning or was it just like Mechanical Turk? It seemed like Amazon's so-called AI

tech

nology was actually powered by a thousand people in India watching and tagging videos to ensure accurate payments, now humans tagging data is often how AI models are first trained and that OK, but the point is that the advertising was misleading. Even in 2022, these 1,000 people were still manually reviewing 70% of transactions at 20 Amazon Go stores, 40 Amazon Fresh Grocery stores, and two Whole Food stores, although some They saw it as dystopian, Amazon promoted its just strike

tech

nology as an Ai-powered utopian magic bullet and here, in the lies, the problem,

companies

often omit critical information.

The fine print was not until 2023 that Amazon mentions the use of the thousand people in India and it gets worse according to an information report other

companies

were also scammed cites 30 stores operated by other companies in US sports stadiums 12 The airports and a university used Amazon checkout technology and this is where things get murky when companies promise revolutionary technology but don't deliver, it creates mistrust but can even ruin it for those who are doing legitimate work in the field with due Given the AI ​​revolution we have seen in recent years, a more critical look at what is happening with AI is necessary.

In this episode we will see the reasons for the AI ​​hype and its consequences, we will see them if there are any. In fact, it is an AI bubble and the real-world impact this could have includes companies launching half-hearted AI products but simultaneously replacing real humans with AI. It's an industry dichotomy, so sit back and relax while we make sense of it all. They are watching C Fusion TV. One use of AI technology that no one is excited about is the fact that it can make life easier for scammers. Artificial intelligence can help generate convincing texts that try to trick you into clicking on a fishing link and then there are spam emails and Robo. calls, everyone has experienced it, but why does it happen?

It's because your information has been sold to data brokers. They are making a fortune selling your information to robocallers and scammers. They can know a lot about you, including your name, phone number, and address. but there is a simple way to stop this, that's where today's sponsor, Aura, comes in and can identify data brokers and submit opt-out requests on your behalf. Brokers are legally required to delete your information if you ask them to, but they make it very difficult to do so. Aura takes care of that for you Aura also does much more to protect you and your family from online threats you can't see.

It's very easy to set up so you don't have to download several different apps to get things like parental control antivirus. a VPN, password management, identity theft insurance, and more, and you'll get it all at an affordable price. Visit aura.com Fusion to get started with a 2-e free trial offer only available in the United States, okay, so let's continue, no, it's not just you the term. AI is really being thrown all over the place for older cold fusion viewers. You would know that I have been covering AI for the better part of a decade before 2022, the word artificial intelligence was limited to the industry verb in obscure research articles that the general public doesn't know or care about, and even at 21 years ago when I covered gpt3 there were a lot of people who thought I was making it up, how can a computer talk like that?

You all know after 2022, especially after the launch of chat. GPT was a different story from your smartphone to LinkedIn to your local government site, many organizations today boast about the AI-powered term, while in many cases it makes sense to overuse the term and use it so casually. A symptom of something called AI washing, simply put, is when companies create a false rumor and mislead investors by providing manipulative information about the capabilities limitations or risks of their AI products or simply lie wholesale about how and when they use AI According to Goldman Sachs, a record 36% of S&P 500 companies mentioned AI in their fourth-quarter earnings reports.

If the world's largest companies are promoting it, there is no doubt that small companies are doing the same and some without tangible results to back up their claims and the investments are also there to match from 2015 to 20122 Global corporate investments in AI are have multiplied by seven; Many companies have seen tremendous growth in the recent AI hype and this is putting pressure on other companies to integrate AI into their business model or products in order to compete. and that's even if it's not really AI Monkey C Monkey Do. For example, Canadian investment firm Delia claimed it had created an AI to predict upcoming companies and industry trends, despite having no such capabilities, the SEC caught wind of the scam and has since ordered them to pay. $225,000 and this was for false advertising and misleading statements about the use of AI and I have a feeling this is just the beginning.

I previously talked about e-card fraud in which CEO Marcus Brawn boasted of having advanced proprietary AI across his fintech. products and services were really just spreadsheets, in the end $2 billion was missing from the books, but that was a story for another day. You may have also heard of the npu or neural processing unit, it is a dedicated processor designed specifically for AI tasks. among other things, they are becoming increasingly common in the world of PCS and laptops and Microsoft has even claimed that we are now in the era of AI PCs, but recent reviews of the current crop of these products have left to consumers with a bad taste in their mouth. in his mouth, let's talk a little more about AI.

Yes, Snapdragon processors dominate here, but AI is still very recent. Many people won't use these tasks much or these tasks themselves just don't work as well, for example they do demos. generating images of animals and they highlighted how fast the processes were compared to Intel, but when I look closely at the images generated, they were all garbage, all the AI ​​dogs had very crooked eyes, so who cares if one of these processors is faster than the other if both are generating garbage at the moment. I simply wouldn't recommend anyone buy a laptop based on its AI capabilities.

A news analyst from the computer world has mentioned that these PCS with artificial intelligence are not everything they were expected to be and if you are waiting for something. transformer when you buy one starting in early 2024, you will be disappointed because one day they could offer many interesting features that they have not finished listing yet, but are there consequences of such misplaced promises other than customer distrust in the companies that Miss The Mark? With AI product launches, there are constant attempts to save face, even the most popular companies in the world are not immune to mistakes.

Perhaps the biggest consequence of AI laundering is a certain b-word that could be lurking around the corner almost as soon as AI started becoming Uber. Since the end of 2022, many people immediately compare the phenomenon to the dotom bubble or even the cryptocurrency fiasco; in fact, some people still do it today, even when we talk about the bubble.com, the problem wasn't the world wide web because of course you Right now we're using a, instead it was mainly the e-commerce side which promised to attract investors but failed to deliver, leading to a crash when everyone realized that the companies they invested in were not making money from AI.

I doubt we'll see more investment in the space and monumental growth as well according to Oppenheimer, no, not the one you're thinking of, who is chief global equity strategist at Goldman Sachs. Research Quote, We believe we are in the relatively early stages of a new technology cycle that will likely lead to greater outperformance. End of quote. Nvidia, which designs the chips powering Big Tech's AI revolution, is tentative evidence that its stock is up 80% this year alone. It may be excessive, but it's indicative of what the market thinks. . AI Mark Cuban, who made his fortune during the era, also doesn't see AI as a bubble.

In a recent interview with Lex Fredman he expressed that the most important sign that we are not in a bubble is the lack of IPOs in the AI ​​sector. the absence of publicly traded companies without intrinsic value and the lack of listings of original AI companies is a key indicator. He pointed out that the current market does not exhibit such characteristics and I think I largely agree that there are obviously some bad players in the industry who are simply trying to make a quick buck, but there could be more and this is what I mean: there are a well-known pattern for emerging technologies called Gartner's hype cycle that describes how humans tend to be overenthusiastic about a revolutionary new technology that we overestimate and overestimate its impact, hype it until the market crashes and after the crash, real companies with real value come forward and lead the development of the new technology until it is mature.

If we look at Gardner's hype cycle for AI, it looks like we are in the final stages of the peak of inflated expectations and are slowly entering the trough of disillusionment, this interpretation of the current market means there will be a lot of disappointment ahead. , the real applications of AI will come after the hype and fatigue fade, but this time it could be a little different because, in essence, AI has the ability to imitate cognitive work, a change that no technology before it has been able to perform without intrinsic human intervention, whereas, as noted in a previous episode of the podcast during the dot bubble, there were a lot of people just creating a random website and making it public, and investors would spend money on anything they have a do at the end of your name.

There have been many organizations that have been willing to launch AI products or replace humans with AI entirely, but those who are hastily adding the ever-popular AI-driven gimmick are failing badly and there have been some spectacular failures of AI, for example, a package delivery company called dpd enabled an AI online chat to answer questions for a customer that was not only useless to answer. relevant questions about his order, but instead, when asked, he provided him with a poem and cursed him. This incredible poem arose about a dpd chatot who couldn't do anything. It was quite surprising, he seemed to even ignore his own rules and started cursing and even started belittling his own employer adding that dpd is the worst delivery company in the world.

He would never recommend them to anyone in Australia. A group of academics used AI-generated material as part of their complaint to the Australian parliament against four of the Australians. The biggest banks, of course, the AI ​​made up a lot of information, including SC scandals that never existed and implicated Deoe when they had nothing to do with the original complaint. Someone on the team did not read the entire presentation before sending it to the Australian government. so it was a huge shame and the academics were forced to apologize. This is just one of many examples and I'm going to include a website that keeps track of these AI mistakes, but on the other hand there are companies that are integrating AI. successfully and this is where we come to the other type of broken promise whenIt's about AI: It's not about CEOs over-promising the usefulness of AI, but rather under-promising, in other words, they told us that AI would be our assistant and create new jobs, not replace us, but what's going on?

If that's just not true? It's not about replacing the human in the loop, in fact, it's about empowering the human as if they were an assistant. This SAA clip is a little hard to believe now, although he later mentioned the flip side, yes. I'm sure many of us use GPT chat to help get work done on personal projects, but AI eventually creates more jobs than it would replace, perhaps not as quickly. You may have noticed that since 2022 there have been many technology-related layoffs. The narrative is that this is happening due to over-hiring during the time of the pandemic and that would make sense for 2022 and even 2023, but in 2024 we are still seeing massive layoffs if companies were simply struggling to make profits the explanation would be so simple like the common economic cycle, but strangely some of the largest companies in the world are making record profits, they are laying off workers almost cyclically, tech companies reportedly laid off 165,000 people in 2022, 260,000 in 2023 and so far the projection is 270,000 in 2024, so if companies are doing well why are they throwing workers out the door?

Well, marketing professor and author Scott Galloway thinks something else is going on. End of quote in his recent blog post discussing the impact of AI on corporations. He mentions AI is playing a larger role in layoffs. than CEOs are willing to admit The normal way we think about job replacements caused by AI is that Joe Blogs is working on his computer analyzing company numbers or something and suddenly the next day , is replaced by an AI, but the truth is that it is a little more nuanced than that as companies. slowly get better at understanding how AI can help your operations, you will create better teams and structures with better results, basically, instead of three people doing the work of three, you will have one person doing the work of five with AI, The problem is that none of these companies are being honest about it because if you're a CEO and you've been touting AI as the best thing that's ever happened to the industry and then you follow it up with a memo that you've fired 30% of your staff due to AI the hypocrisy becomes clear but in 2024 it seems the truth is slowly coming to light and there are signs everywhere that IBM made headlines when CEO Arvind chrish mentioned that they are planning to pause hiring of roles that could be replaced with AI.

The same was true for UPS, where CEO Carol Tom recently acknowledged that AI is playing a role in employee layoffs and this came after UPS had the largest layoff in its 116e history. 12,000 workers in both cases, spokespeople later clarified by saying that AI is not replacing workers end of quote which is basically a public relations talk to save face, in fact a Shopify employee broke their confidentiality agreement to expose that the company has been secretly laying off employees because of AI. The shift is even having an impact far beyond the tech industry. Media and television producer Tyler Perry. was building an $800 million studio expansion, but stopped construction after seeing the results of opening aiora, an artificially intelligent video generator, made the comment: I'm very, very worried that in the near future many will be lost works end of quote in In recent years you have probably heard this phrase a little.

AI won't replace humans, but humans who use AI replace humans who don't, there's definitely some truth to that, but some jobs will be at risk regardless of whether we don't have to. Imagine this, Mega limits like meta and alphabetical are already happening, they are reducing their workforce and reducing their hiring. It's the idea that senior AI researchers or data analysts can do more with Gen than an army of junior engineers coding. A recent Mackenzie report found that around 12 million American workers may need to change jobs by 2030. The lowest-paid workers are 14 times more likely to be affected.

Healthcare builders and professional fields will continue to add jobs, but generative AI could change work significantly in occupations like customer service and office sales and support, there have been repeated reports of how AI will add hundreds of millions of jobs in the next decade and how it will positively affect GDP, while by some miracle this could happen right now, as has been the case many times in history. The train will leave the station without telling us whether we are conscious of getting on it or not, that is the question, so to end all this, I should mention that I am in no way saying that all forms of AI and all these giants are corporations are elaborate hoaxes, in fact on this channel I have been making videos about AI progress for the better part of a decade and I have seen exponential progress right before my eyes and many of you will too.

We may have reached a stalemate. a temporary bottleneck when it comes to computing, but all it takes is a big leap in model efficiency and the curve continues upwards, but I think it's important to continue to take a cautious approach when it comes to looking at all sides of a story. working on a video that deals with the positive impacts of AI in real life, so hopefully that will even things out a bit so far, it seems like the promises of AI have yet to be fully realized, whether it's about of creating and not taking away jobs to solve global problems or even giving us a trusted AI customer service place that doesn't insult us with such big and bold promises from these companies over the years, it's important for us all to ask ourselves if we have technological gold, a Trojan horse or a chess master. hiding under a table anyway, that's all from me, my name is toogo and you've been watching Cold Fusion, if you liked that episode don't hesitate to subscribe, there's a lot of other cool stuff on the channel so I give you I will see soon.

Greetings guys, enjoy it, a better future. Heaven, help us create a better future. Cold fusion. It's new.