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Italian watchdog’s AI staff struggle spotlights global challenge

Italian watchdog’s AI staff struggle spotlights global challenge

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Italian watchdog's AI staff struggle spotlights global challenge

Soon after Italian watchdog Garante took on ChatGPT with a temporary shutdown locally last year, it tried to strengthen its team by hiring four artificial intelligence (AI) experts.

But Italy’s data protection agency could not recruit the people it wanted, with a dozen candidates dropping out over issues including pay, highlighting a growing challenge facing regulators around the world.

“The search process went worse than our low expectations,” Garante board member Guida Scorza told Reuters, adding: “We will come up with something else, but so far we have lost”. 

Demand for AI experience and expertise has surged since OpenAI unveiled ChatGPT in late 2022, and regulators have found themselves vying for talent from the same shallow pool.

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But relatively low pay, long hiring processes and visa problems are thwarting their hiring ambitions, industry participants familiar with the situation told Reuters.

Other public bodies in the European Union could soon face similar problems, just as the bloc rolls out some of the most sweeping and impactful AI regulation in the world.

The EU has been recruiting for its newly opened AI Office, which will oversee enforcement of the AI Act, as well as the European Centre for Algorithmic Transparency (ECAT) which covers both the AI Act and the Digital Services Act.

“The biggest problem will be enforcement and getting people for this,” said EU lawmaker Dragos Tudorache, who oversaw the drafting of the AI Act.

Meanwhile, Britain continues to recruit for its own AI Safety Institute, launched in the wake of the summit it held for world leaders in October.

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Many of the public sector roles advertised at these organisations offer salaries at a fraction of industry standards and appear geared towards recent graduates, which some warn may deter the best talent.

TALENT SURGE

Around the world, governments have acknowledged the need for AI expertise to keep tabs on the rapidly-developing technology.

The United States has demonstrated a willingness to pay more and be more flexible about its recruitment processes.

Under President Joe Biden, the U.S. Office for Personnel Management (OPM) has granted government agencies the power to quickly hire AI expertise, as part of an ongoing “talent surge” in government, expediting the usual recruitment process.

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In February, the Department of Homeland Security (DHS) launched a first-of-its-kind initiative to create a new “AI Corps”, aiming to recruit 50 AI experts.

A DHS job ad offers IT specialists, focused on AI, a salary of $143,000 per year, similar to the private sector. By contrast, EU agencies, including the AI Office and ECAT, have offered around 50,000 to 60,000 euros ($65,166).

An EU spokesperson told Reuters that ECAT currently employed 35 experts, and planned to hire 100 more for the AI Office.

“Working with the Office presents a unique and thrilling opportunity for passionate professionals to contribute significantly to shaping trustworthy AI in Europe and beyond,” they said.

In Britain, the AI Safety Institute has offered stronger incentives for its most senior posts. Recently advertised roles – including chief information security officer and head of engineering – offered up to 135,000 pounds ($170,829).

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However, other roles offered much less. One overseeing the societal impacts of AI offered up to 47,000 pounds.

Another British government role, at the Department for Science, Innovation, and Technology (DSIT), offered up to 76,000 pounds for a head of AI regulation strategy and implementation.

Ian Hogarth, chair of the AI Safety Institute, told Reuters the organisation had successfully recruited experts from companies like Google DeepMind and OpenAI.

“While we do benchmark our salaries against those on offer in industry, the technical experts that are joining us from the top of their fields do so seeking more than a high salary,” he said. “They are joining to contribute to a critical mission to make sure these models are safe.”

Last month, a report by the Tony Blair Institute for Global Change, which advises governments on policy matters, called on the UK government to relax normal recruitment rules, loosen pay restrictions and roll out new work visas for tech talent.

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“Getting the depth of talent needed so that governments can not only ask the right questions, but also find solutions, will require a fundamental mindset shift in skills and culture,” said the institute’s Chief Policy Strategist Benedict Macon-Cooney.

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Reddit shares soar as earnings show advertising, AI licensing revenue potential

Reddit shares soar as earnings show advertising, AI licensing revenue potential

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Reddit shares soar as earnings show advertising, AI licensing revenue potential

Reddit soared as much as 11% in early trading on Wednesday after the social media firm floored investors with strong revenue growth and improving profitability in the first earnings since its market debut.

The company surprised Wall Street late on Tuesday with a forecast that it could post an adjusted profit in the second quarter, and its revenue outlook was also far above estimates.

The projections followed better-than-expected results for the first three months of 2024, showing that Reddit’s push to grow its advertising business and content licensing deals with AI-focused companies such as Google were paying off.

“We suspected that Reddit would come out strong out of the gates, and Reddit exceeded our bullish expectations,” Bernstein analyst Mark Shmulik said in a client note.

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“Reddit appears to be reaping the benefits of a strong digital ad market, buoyed by some ‘free’ IPO marketing, alongside increased traffic courtesy of their new favorite AI partner Google.”

Several analysts have said that despite being founded in 2005, Reddit was still in the early stages of the process of generating ad revenue and should benefit in the coming quarters from expanded ad targeting and measurement tools, among others.

The company’s more than 100,000 discussion forums, or subreddits, filled with user-generated content topics ranging from history to gaming have made it an attractive partner for companies looking to train their data-hungry AI models.

At least 7 analysts raised their price target on Reddit’s stock, pushing the median view to $55, according to LSEG data. The company priced its much-awaited initial public offering at $34 in March.

Reddit remains in the early days of developing its ads business, Piper Sandler analysts said, adding that a large international user opportunity remains untapped. 

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Kretinsky and Layani face off in battle for distressed IT firm Atos

Kretinsky and Layani face off in battle for distressed IT firm Atos

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Kretinsky and Layani face off in battle for distressed IT firm Atos

 Shares of Grayscale Bitcoin Trust jumped 2.4% on Monday after the exchange-traded fund (ETF) that tracks the price of bitcoin saw its first day of inflow since January.

The move marks a major milestone for GBTC, which has seen $17.46 billion in withdrawals since it converted from a trust to an easily tradable ETF in January, due to the higher fees it charges compared with rivals.

Some of the outflows were also tied to the wave of bankruptcies in the crypto industry, as companies that collapsed in the last two years pulled money out of the fund to repay their creditors.

GBTC saw inflows of $63 million on Friday, according to investment management firm Farside Investors. It currently manages $18.08 billion in assets, according to its website.

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However, its position as the biggest spot bitcoin ETF by assets under management (AUM) has come under threat from BlackRock’s iShares Bitcoin Trust, which manages $16.91 billion, according to its website.

Grayscale said in March that it would seek approval from the Securities and Exchange Commission to spin off a portion of GBTC’s assets into a new, lower-fee Bitcoin Mini Trust. The company has yet to decide on the fees for the Mini Trust.

Spot bitcoin ETFs, which were approved by the SEC in January following a decade of rejection, provide investors with bitcoin exposure without the need to directly hold the cryptocurrency. 

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China to build 100-mile-long hyperloop train line by 2035

China to build 100-mile-long hyperloop train line by 2035

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China to build 100-mile-long hyperloop train line by 2035

China’s top engineering and rail design experts have exciting news: they’re planning to build the country’s very first hyperloop train line!

This futuristic project will connect two bustling cities, Shanghai and Hangzhou, spanning a distance of 150km (about 93 miles).

What makes this project so special? Well, it’s all about speed! The hyperloop train will travel inside a special vacuum tunnel, allowing it to reach mind-blowing speeds of up to 1,000km/h (that’s about 621mph!).

Before choosing the Shanghai-Hangzhou route, the experts carefully evaluated several options.

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They considered factors like economic potential, population density, and existing transport infrastructure. In the end, they decided that connecting Shanghai and Hangzhou would bring the most benefits to the region.

This project is a big deal for China, and it’s being led by some of the country’s top engineers and scientists.

They’re excited about the potential for this hyperloop train to revolutionize transportation and boost economic growth in the area.

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