FTC's Eye on AI: Fair Play?
A breakdown of why the FTC is paying attention; Our favorite summarization hack
Welcome to another edition of the best damn newsletter in AI. Here we’ll break down AI topics that matter, open your mind to use cases, and keep you ahead of the curve.
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Here's what we're covering today:
The FTC and anti-competitive behavior
Summarize this way instead (it rocks)
BIG copyright stories are popping up
Let’s get to it! 👇
The FTC is on watch; the anti-competitive landscape brewing
Tech Crunch dug up a blog the FTC Bureau of Competition posted this summer that piqued our interest. In it, the FTC outlined (and basically subtweeted) many anti-competitive behaviors brewing in AI. With a clear tone that they’re not going to stand for it.
Why is the FTC concerned about anti-competitiveness? Let’s break it down: 👇️
1) Data is King
Generative AI requires large datasets, think massive. And the head start of companies like OpenAI and existing datasets of tech giants like Meta and Google certainly hinder new players from entering the market.
2) Talent is Scarce
Developing these AI models requires a specific skillset and a significant workforce. The scarcity of such talent could incentivize companies to hoard, a phenomenon already quite common in big tech.
3) Computational Resources are Pricey
Generative AI systems require significant computational resources, which can be expensive to operate and maintain. New entrants typically access these resources through cloud computing services, which are provided by only a few firms, many of whom also have their own AI projects… again raising the risk of monopolization.
4) Open-Source Tactics
The FTC specifically calls out the double edged sword here.
While open-source can democratize the development of generative AI, companies can use "open first, closed later" tactics to undermine long-term competition. (also known as scorch the earth)
5) Unfair Methods of Competition
Last, there are certainly unfair methods of competition that big tech can use to entrench their power or gain control over this new generative AI market. Things like bundling, exclusivity and acquisitions are not looking good in the FTC’s eyes.
So, while the battle for AI is heating up, the FTC is ensuring that it's a fair fight.
And for all of us - that’s probably a very good thing.
You’re summarizing with ChatGPT wrong
It’s ok, we were too. 😆
Let us introduce you to the Inverted Pyramid method.
This method has been used by journalists since the 19th century, when telegraph technology was still in its infancy.
The idea is simple: put the most important facts at the beginning. This way, even if the full content isn't transmitted due to technical issues or time constraints, readers still get the most crucial information.
(aka, make summaries super skimm-able with the most important stuff up top)
p.s. yes, our prompts are that structured. 👀 It’s one of the techniques we teach in the Prompting for AI Ops bootcamp and helps us get to high quality prompts for any problem, faster.
For your reading list 📚
AI and Copyright is coming in hot…
Microsoft promises legal support for commercial users of AI Copilot, should they face copyright infringement lawsuits due to usage
Meanwhile, OpenAI faces a class lawsuit over unauthorized use of copyrighted content, sparking scrutiny of training data and its impact on creators
An AI-generated Drake song is not eligible for the Grammys, sparking discussions surrounding legal and commercial restrictions on AI-created content.
Next on the AI provider wars…
Anthropic's Claude AI chatbot now offers a paid plan with additional benefits
Meta aims to rival OpenAI's GPT-4 with a new AI chatbot, offering it for free to companies to create AI tools, shaking up the competition in the AI chatbot market
And if you're really nerdy...
Character.ai's AI app continues to gain popularity, rivaling ChatGPT in the US, with > 4.2 million monthly active users in the U.S
We'll see you again on Thursday. Thoughts, feedback and questions are much appreciated - respond here or shoot us a note at [email protected].
🪄 The AI Exchange Team