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Rogue AI: Why BYOAI Is A Massive Threat And Opportunity

Midjourney's AI-image generator website is now officially open to everyone - for free

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AI KATANA
August 22, 2024

Morning!

In today's newsletter, we explore the implications of the rising "Bring Your Own AI" (BYOAI) trend in workplaces, which offers both significant opportunities and risks. We also cover Perplexity AI's upcoming move into advertising, despite past controversies, and Procreate's decision to forgo generative AI in its popular illustration app, reflecting broader concerns in the creative community. Additionally, Midjourney has made its AI-image generator accessible to the public via a new, user-friendly website. Finally, we delve into ongoing research aimed at deciphering AI's "black box" to enhance interpretability, and we highlight recent developments in venture capital, including Dropbox's acquisition of Reclaim.ai and the resurgence of funding to Israeli startups.

Sliced:

  • ⚠️ Rogue AI: Why BYOAI Is A Massive Threat And Opportunity

  • 💰 Perplexity AI plans to start running ads in fourth quarter as AI-assisted search gains popularity

  • 📱 A Popular iOS Illustration App Is Saying No to Generative AI

  • 🖼️ Midjourney's AI-image generator website is now officially open to everyone - for free

  • ⬛ Shedding light on AI's black box

The rise of "Bring Your Own AI" (BYOAI) in workplaces is a significant trend that mirrors the earlier Bring Your Own Device (BYOD) movement, where employees increasingly use personal AI tools at work without formal company approval. This trend offers potential benefits, such as enhanced productivity, cost savings, and fostering innovation by allowing employees to choose tools that best fit their workflow. However, it also presents challenges like security risks, compliance issues, and inconsistent outputs. To effectively navigate this landscape, companies should develop comprehensive BYOAI policies, implement vetting processes for AI tools, provide training, and create a repository of approved tools. The future of BYOAI suggests that companies that strike a balance between empowering employees and maintaining security will be well-positioned to thrive in an AI-driven work environment.

Perplexity AI, a startup known for its AI-assisted search capabilities, is set to begin running ads on its platform in the fourth quarter of 2024. Despite facing recent controversies related to plagiarism, the company is moving forward with monetization strategies, including advertising. The company, which has seen significant growth, now claims over two million app downloads and answers more than 230 million queries monthly. To mitigate past issues, Perplexity AI has updated how it cites sources and introduced a revenue-sharing program with publishers. This move into advertising is viewed as a response to the increasing popularity of AI-assisted search and the competitive landscape that includes giants like Google and OpenAI. The initial focus for advertising categories will be technology, health, and finance, with the company employing a CPM (cost per thousand impressions) model expected to exceed $50.

📱 A Popular iOS Illustration App Is Saying No to Generative AI

Procreate, a popular iOS illustration app, has publicly declared that it will not incorporate generative AI into its platform, responding to growing concerns within the art community about the ethical implications of AI in creative industries. Procreate CEO James Cuda expressed strong opposition to generative AI, describing it as detrimental to the authenticity of human creativity. The decision aligns with a broader backlash from artists who feel that AI-generated content, often created without proper consent or compensation, undermines their work and the integrity of the creative process. While this stance has garnered significant support from some artists, it also positions Procreate in contrast to industry giants like Adobe, which have embraced AI tools. Procreate's move could differentiate the app in a market increasingly saturated with AI-driven features, though it risks alienating users who favor AI-enhanced creativity. The company remains committed to supporting human-centric creativity, viewing this as a path that will ultimately benefit its community.

Midjourney has officially opened its AI-image generator website to the public, allowing users to create up to 25 images for free. Previously, users had to navigate the platform through Discord, which was often cumbersome. The new dedicated website simplifies the process, making it more accessible and user-friendly, especially for those who found the Discord method challenging. Users can sign up with a Google or Discord account and start generating images with text prompts. The platform provides tools to refine images, adjust various aspects, and even edit specific areas. Once users exhaust their free image quota, they can opt for paid plans that offer different levels of service. This move by Midjourney broadens access to its AI tools, inviting more users to explore and create AI-generated imagery.

As researchers work to decode the complex inner workings of AI systems, they are beginning to unravel the so-called "black box" of generative AI models. This effort is driven by the increasing reliance on AI for high-stakes decisions, such as medical diagnoses, where understanding the reasoning behind AI outputs is crucial. Unlike traditional software, generative AI models produce varied outputs based on patterns in massive datasets, without a clear, visible process. Scientists are now examining the neural networks within these models, identifying and manipulating "features"—combinations of artificial neurons that correspond to specific concepts or objects. Early research from organizations like OpenAI and Anthropic shows promise in steering AI behavior through these features, though the work is still in its infancy. The challenge lies in interpreting the vast and complex networks of neurons, where many features remain unclear or unpredictable. Tools like Google DeepMind's Gemma Scope aim to address these challenges by analyzing more comprehensive layers of neural networks. Despite these advances, fully understanding and evaluating AI systems remains as enigmatic as evaluating human behavior, highlighting the ongoing complexities in the field.

🧑🏽‍💻 AI Jobs

🛠️ AI tools updates

Luma Dream Machine, an AI-powered video generator launched in June, allows users to create short videos using either text prompts or their own images. The platform supports two main functionalities: text-to-video and image-to-video generation. Users can start by signing in with a Google account and selecting a plan based on their needs. The free plan offers 30 videos per month, while paid plans provide more options, including commercial use. To generate a video, users can input a descriptive prompt, with options to enhance the prompt or create looping videos. Alternatively, users can upload images, where the AI creates a video transitioning between two selected frames. The generated videos can be extended by adding more details to the prompt, and users can download the final product as an MP4 file. While the AI may require some prompt tweaking for optimal results, Luma Dream Machine offers a flexible and user-friendly platform for creating AI-generated videos.

💵 Venture Capital updates

Dropbox has acquired Reclaim.ai, an AI-powered scheduling tool backed by Index Ventures and used by over 320,000 people across more than 43,000 companies. Reclaim.ai, founded in 2019, integrates with Google Calendar to help users manage their time more effectively by automating the scheduling of meetings, tasks, and personal activities. The company plans to continue developing its product and expanding its features under Dropbox's ownership, with no immediate changes to its pricing structure. This acquisition aligns with Dropbox's mission to design more efficient ways of working, and Reclaim.ai's entire 22-person team will be joining Dropbox as part of the deal.

Venture funding to Israeli startups has rebounded significantly after a sharp decline in late 2023, triggered by regional tensions and violence. In the second quarter of 2024, funding nearly reached $1 billion, recovering to levels seen before the conflict. This resurgence is noteworthy given the ongoing instability in the region. The funding landscape has seen substantial rounds, particularly outside the traditionally dominant cybersecurity sector, with notable investments in AI, semiconductors, and enterprise software. Major funding rounds include $150 million for InSightec, $120 million for AI chipmaker Hailo, $90 million for Fetcherr, and $74 million for MagnusMetal. Despite the recovery in funding amounts, the overall number of deals remains low, suggesting that while larger and mid-sized companies are attracting significant investment, early-stage startups may still face challenges, potentially impacting the long-term health of the Israeli startup ecosystem. This recovery stands out against a backdrop of declining venture capital activity in Asia, highlighting the resilience of Israel's startup scene.

🫡 Meme of the day

⭐️ Generative AI image of the day