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Tag: product management

  • How to Get Product Leadership Right

    Businesses are quickly embracing product operating models in the hopes that a new way of thinking will afford them an edge in an increasingly uncertain and fast-changing market. This approach encourages organizations to think holistically about their goals, framing every decision within the context of the end-user experience.  

    By freeing teams from the traditional corporate framework that prioritizes success based on progress on discrete projects, product-centered strategies direct efforts toward projects that genuinely impact overall organizational health.  

    In fact, a recent Planview survey found that “leaders” in this transition are more likely to feel prepared to pivot, have confidence in their change management plans, and outperform the market than their peers. However, achieving these outcomes hinges on getting the right people for the job. 

    The product hiring paradox 

    This part of the equation—building the team—can be challenging for both established and start-up organizations. Openings in the field outpace active workers by nearly 3:1. Demand for executive, mid-, and entry-level talent is growing fast.    

    Of course, this isn’t unique to product management. Similar trends are playing out across the tech industry, with 87% of tech leaders struggling to find skilled workers. However, those hiring product professionals face a somewhat steeper climb as familiarity with the field’s core tenets and tactics remains low, both in theory and in practice.  

    Yes, product management has been a staple of corporate structure since the 1930s, with the field considered a spiritual successor to Procter & Gamble’s “brand man.” However, the role today is relatively new. It’s a product of the “as-a-service,” subscription-based, and technology-first business models that have overtaken one-time sales in the connected age. 

    The nuances of the field are still widely misunderstood, and the path to a successful career in product management remains unclear to the public. That creates problems on both sides, as hiring managers are unsure what to look for when candidates lack direct experience. Also, job seekers are uncertain about what makes them desirable in the field.  

    Go inside one interesting founder-led company each day to find out how its strategy works, and what risk factors it faces. Sign up for 1 Smart Business Story from Inc. on Beehiiv.

    Louise K. Allen

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  • GM self-driving car subsidiary withheld video of a crash, California DMV says | CNN Business

    GM self-driving car subsidiary withheld video of a crash, California DMV says | CNN Business



    CNN
     — 

    The California Department of Motor Vehicles Tuesday revoked Cruise’s permits to test and operate fully driverless vehicles on the state’s roads. The California DMV said, in part, it was because Cruise, which is GM’s self-driving vehicle technology subsidiary, withheld video and information about a crash involving a pedestrian.

    The suspension applies only to vehicles with no “safety driver,” meaning there is no one in the driver’s seat ready to take over the controls if needed.

    The agency also indicated that Cruise had “misrepresented… information related to safety of the autonomous technology of its vehicles.”

    For those reasons, the California DMV wrote, it was necessary to revoke the company’s permits. The DMV notice did not specify exactly what incidents or communications from Cruise led to the suspensions.

    About three weeks ago, a Cruise vehicle hit a pedestrian in downtown San Francisco who had first been hit by another vehicle then and was propelled by this collision into the path of the Cruise driverless car. After striking the pedestrian a second time, the Cruise vehicle, attempting to pull off the road and out of the way of traffic, dragged the pedestrian along the road for 20 feet at a speed at about seven miles an hour, according to the DMV’s report.

    “Our thoughts continue to be with the victim as we hope for a rapid and complete recovery,” Cruise wrote in an emailed statement. A San Francisco Fire Department spokesperson said at the time that victim had multiple serious injuries.

    Cruise claims that it proactively reached out both state and federal safety regulators following that incident. Regulators at the National Highway Traffic Safety Administration opened an investigation into the safety of Cruise autonomous vehicles around pedestrians.

    The DMV alleges that Cruise did not tell regulators that the car dragged the pedestrian across the roadway while attempting to pull over following the impact. Also, the DMV’s order of suspensions indicates that the video Cruise provided of the incident, taken by the self-driving car’s on-board cameras, stopped shortly after the car hit the pedestrian and did not show the dragging. Cruise did not provide a longer video showing the entire incident until 10 days later, after DMV had learned of the pedestrian being dragged “from another government agency.”

    A video of the incident shown to a CNN reporter shortly after it occurred also did not show the pedestrian being dragged.

    In a statement shared with CNN on Wednesday, Cruise denied that it had withheld any video from the DMV and said that it shared a full video with the agency when the incident was first reported.

    “The DMV has provided Cruise with the steps needed to apply to reinstate its suspended permits, which the DMV will not approve until the company has fulfilled the requirements to the department’s satisfaction,” the agency sad in the notice posted to its web site.

    This summer, Cruise and Waymo, the driverless car arm of Google-parent Alphabet received permission from San Francisco regulators to begin regular paid driverless taxi services in that city.

    Cruise will continue operations of its driverless fleets in Phoenix, Arizona and Austin, Texas.

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  • Dubai to start robotaxi trials next month in major autonomous push | CNN Business

    Dubai to start robotaxi trials next month in major autonomous push | CNN Business

    Editor’s Note: A version of this story appears in CNN’s Meanwhile in the Middle East newsletter, a three-times-a-week look inside the region’s biggest stories. Sign up here.


    Abu Dhabi, UAE
    CNN
     — 

    Dubai is rolling out its first round of robotaxis next month, as a part of a plan to alleviate congestion and accidents.

    Five fully autonomous electric taxis, operated by a General Motors subsidiary called Cruise, will begin test driving on an 8km (5 mile) stretch in the upscale Jumeirah district of the United Arab Emirates city, according to Ahmed Bahrozyan, the CEO of Dubai’s Roads and Transport Authority (RTA).

    Dubai hopes to become the first Middle Eastern city to introduce driverless taxis, Bahrozyan said. Autonomous taxis currently operate in several cities around the world, mostly in the US and China.

    Cruise operates commercial robotaxis in US cities like San Francisco, but Dubai would be the first launch of the cars outside the US, Bahrozyan said.

    “We are doing our own set of tests and trials in Dubai… every city has its own characteristics,” Bahrozyan said in an interview with CNN. “We have weather conditions that are certainly different than the US.”

    RTA plans to roll out 4,000 self-driving taxis by 2030, adding to the fleet of 12,000 traditional taxis in the city. Rides are expected to be slightly more expensive than an ordinary taxi but in the same price range as a private car like Uber.

    Cruise entered a contract with the RTA for 15 years, and after this period the taxi market may open up to competitors. Bahroyzyan said he foresees autonomous vehicles eventually making up the majority of the Middle East tourist hub’s taxi fleet.

    A year after GM’s Cruise robotaxis were launched in California, the company was forced to cut its fleet in half in the state following a series of collisions. The collisions outlined the potential challenges of driverless cars.

    Bahroyzyan said there will be “zero compromise on safety.”

    Dubai issued a law in April to regulate autonomous vehicles, setting benchmarks for technical, operational and safety aspects of cars. Selling and buying autonomous cars was also regulated.

    WeRide, a Chinese autonomous car technology company began trialing robotaxis in the UAE’s capital, Abu Dhabi, in 2022.

    In July, the UAE granted WeRide a license to trial all its vehicles, from robobuses to robosweepers, but the company began testing certain routes a year prior.

    The Middle East is a “key focus area” for driverless cars and WeRide said it hopes to deepen its presence in the region. WeRide also has a collaboration with the Saudi Artificial Intelligence Company to develop a robobus route.

    Saudi’s Transport General Authority introduced self-driving buses during the 2023 Hajj season in July, shuttling pilgrims in Mecca, according to local media.

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  • Regulators give green light to driverless taxis in San Francisco | CNN Business

    Regulators give green light to driverless taxis in San Francisco | CNN Business



    CNN
     — 

    California regulators gave approval Thursday to two rival robotaxi companies, Cruise and Waymo, to operate their driverless cars 24/7 across all of San Francisco and charge passengers for their services.

    The much-anticipated vote, which followed roughly six hours of public comment both for and against driverless taxis, came amid clashes between the robotaxi companies and some residents of the hilly city. San Francisco first responders, city transportation leaders and local activists are among those who shared concerns about the technology.

    The California Public Utilities Commission regulates self-driving cars in the state and voted 3-to-1 in favor of Waymo and Cruise expanding their operations.

    That means residents and visitors to San Francisco will be able to pay a fare to ride in a driverless taxi, ushering in new automated competition to cab and ridehail drivers.

    “Today’s permit marks the true beginning of our commercial operations in San Francisco,” said Tekedra Mawakana, co-CEO of Waymo, in a press release.

    Cruise spokesperson Drew Pusateri said in a statement to CNN that the 24/7 driverless service is a “historic industry milestone” that puts Cruise “in a position to compete with traditional ridehail, and challenge an unsafe, inaccessible transportation status quo.”

    Until Thursday’s vote, Cruise and Waymo could offer only limited service to San Francisco residents.

    Cruise – a subsidiary of General Motors – could charge a fare only for overnight rides occurring between 10 p.m. and 6 a.m. in select parts of the city. Waymo, owned by Google’s parent company Alphabet, could charge a fare only for rides with a human driver in the vehicle.

    Now, Cruise and Waymo can charge a fare for their driverless rides and 24/7 access to San Francisco streets as they do so.

    Cruise officials told state commissioners at a recent public hearing that it deploys about 300 vehicles at night and 100 during the day, while Waymo officials said that around 100 of its 250 vehicles are on the road at any given time.

    The autonomous ride-hailing service offered by Cruise and Waymo allows users to request a ride similar to Uber or Lyft. There is a difference, of course: The car has no driver.

    Members of the public packed the commission’s San Francisco headquarters to share their thoughts with state commissioners in one-minute increments during the meeting. Critics pointed to driverless cars freezing in traffic and blocking first responders, while advocates said they felt the cars drove more defensively than human drivers.

    Although the decision ultimately laid in the hands of state regulators, who delayed the vote twice, local officials also expressed their dissent.

    The San Francisco Police Officers Association, San Francisco Deputy Sheriffs’ Association and the San Francisco Fire Fighters Local 798 all wrote letters to the CPUC in the week leading up to the originally scheduled vote on June 29. Each expressed concerns that autonomous vehicles could impede emergency responders.

    “The time that it takes for an officer or any other public safety employee to try and interact with an autonomous vehicle is frustrating in the best-case scenario, but when they can not comprehend our demands to move to the side of the roadway and are stopped in the middle of the roadway blocking emergency response units, then it rises to another level of danger,” wrote Tracy McCray, president of the San Francisco Police Officers Association in June, “and that is unacceptable.”

    The San Francisco Fire Department has recorded 55 incidents of driverless vehicles interfering with their emergency responses in 2023 as of Wednesday, the department confirmed to CNN.

    In one incident reported by the department on Saturday, a Waymo car pulled up between a car on fire and the fire truck aiming to put it out.

    Other instances include robotaxis driving through yellow tape into the scene of a shooting, blocking firehouse driveways such that a fire truck farther away had to respond to the scene, and requiring firefighters to reroute, according to Fire Chief Jeanine Nicholson.

    “It should not be up to my people to have to move their vehicle out of the way when we’re responding to one of our 160,000 calls,” Nicholson told CNN in June.

    Robotaxi companies have often touted their safety records. Out of 3 million driverless miles, a Cruise car has not been involved in a single fatality or life-threatening injury, according to the company. In a February review of its first million driverless miles, Waymo said their cars caused no reported injuries and that 55% of all contact events were the result of a human driver hitting a stationary Waymo vehicle.

    2022 was the worst year on record for traffic fatalities in San Francisco since 2014, according to city data. Cruise said that when benchmarked against human drivers in comparable driving environments, its vehicles were involved in 54% fewer collisions overall.

    The San Francisco Municipal Transportation Agency said in a California Public Utilities Commission meeting on Monday that it had logged almost 600 incidents involving autonomous vehicles since the technology first launched in San Francisco. The agency said they believe this is “a fraction” of actual incidents due to what they allege is a lack of data transparency.

    Genevieve Shiroma, the dissenting commissioner in the 3-1 vote, recommended the commission delay the vote until they received a “better understanding of the safety impacts” of the vehicles.

    “First responders should not be prevented from doing their job. The fact that an injury or fatality has not occurred yet is not the end of the inquiry,” Shiroma said. “The commission needs a better explanation regarding why these events occur.”

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  • ‘It gave us some way to fight back’: New tools aim to protect art and images from AI’s grasp | CNN Business

    ‘It gave us some way to fight back’: New tools aim to protect art and images from AI’s grasp | CNN Business



    CNN
     — 

    For months, Eveline Fröhlich, a visual artist based in Stuttgart, Germany, has been feeling “helpless” as she watched the rise of new artificial intelligence tools that threaten to put human artists out of work.

    Adding insult to injury is the fact that many of these AI models have been trained off of the work of human artists by quietly scraping images of their artwork from the internet without consent or compensation.

    “It all felt very doom and gloomy for me,” said Fröhlich, who makes a living selling prints and illustrating book and album covers.

    “We’ve never been asked if we’re okay with our pictures being used, ever,” she added. “It was just like, ‘This is mine now, it’s on the internet, I’m going to get to use it.’ Which is ridiculous.”

    Recently, however, she learned about a tool dubbed Glaze that was developed by computer scientists at the University of Chicago and thwarts the attempts of AI models to perceive a work of art via pixel-level tweaks that are largely imperceptible to the human eye.

    “It gave us some way to fight back,” Fröhlich told CNN of Glaze’s public release. “Up until that point, many of us felt so helpless with this situation, because there wasn’t really a good way to keep ourselves safe from it, so that was really the first thing that made me personally aware that: Yes, there is a point in pushing back.”

    Fröhlich is one of a growing number of artists that is fighting back against AI’s overreach and trying to find ways to protect her images online as a new spate of tools has made it easier than ever for people to manipulate images in ways that can sow chaos or upend the livelihoods of artists.

    These powerful new tools allow users to create convincing images in just seconds by inputting simple prompts and letting generative AI do the rest. A user, for example, can ask an AI tool to create a photo of the Pope dripped out in a Balenciaga jacket — and go on to fool the internet before the truth comes out that the image is fake. Generative AI technology has also wowed users with its ability to spit out works of art in the style of a specific artist. You can, for example, create a portrait of your cat that looks like it was done with the bold brushstrokes of Vincent Van Gogh.

    But these tools also make it very easy for bad actors to steal images from your social media accounts and turn them into something they’re not (in the worst cases, this could manifest as deepfake porn that uses your likeness without your consent). And for visual artists, these tools threaten to put them out of work as AI models learn how to mimic their unique styles and generate works of art without them.

    Some researchers, however, are now fighting back and developing new ways to protect people’s photos and images from AI’s grasp.

    Ben Zhao, a professor of computer science at University of Chicago and one of the lead researchers on the Glaze project, told CNN that the tool aims to protect artists from having their unique works used to train AI models.

    Glaze uses machine-learning algorithms to essentially put an invisible cloak on artworks that will thwart AI models’ attempts to understand the images. For example, an artist can upload an image of their own oil painting that has been run through Glaze. AI models might read that painting as something like a charcoal drawing — even if humans can clearly tell that it is an oil painting.

    Artists can now take a digital image of their artwork, run it through Glaze, “and afterwards be confident that this piece of artwork will now look dramatically different to an AI model than it does to a human,” Zhao told CNN.

    Zhao’s team released the first prototype of Glaze in March and has already surpassed a million downloads of the tool, he told CNN. Just last week, his team released a free online version of the tool as well.

    Jon Lam, an artist based in California, told CNN that he now uses Glaze for all of the images of his artwork that he shares online.

    Lam said that artists like himself have for years posted the highest resolution of their works on the internet as a point of pride. “We want everyone to see how awesome it is and see all the details,” he said. But they had no idea that their works could be gobbled up by AI models that then copy their styles and put them out of work.

    Jon Lam is a visual artist from California who uses the Glaze tool to help protect his artwork online from being used to train AI models.

    “We know that people are taking our high-resolution work and they are feeding it into machines that are competing in the same space that we are working in,” he told CNN. “So now we have to be a little bit more cautious and start thinking about ways to protect ourselves.”

    While Glaze can help ameliorate some of the issues artists are facing for now, Lam says it’s not enough and there needs to be regulation set regarding how tech companies can take data from the internet for AI training.

    “Right now, we’re seeing artists kind of being the canary in the coal mine,” Lam said. “But it’s really going to affect every industry.”

    And Zhao, the computer scientist, agrees.

    Since releasing Glaze, the amount of outreach his team has received from artists in other disciplines has been “overwhelming,” he said. Voice actors, fiction writers, musicians, journalists and beyond have all reached out to his team, Zhao said, inquiring about a version of Glaze for their field.

    “Entire, multiple, human creative industries are under threat to be replaced by automated machines,” he said.

    While the rise of AI images are threatening the jobs of artists around the world, everyday internet users are also at risk of their photos being manipulated by AI in other ways.

    “We are in the era of deepfakes,” Hadi Salman, a researcher at the Massachusetts Institute of Technology, told CNN amid the proliferation of AI tools. “Anyone can now manipulate images and videos to make people actually do something that they are not doing.”

    Salman and his team at MIT released a research paper last week that unveiled another tool aimed at protecting images from AI. The prototype, dubbed PhotoGuard, puts an invisible “immunization” over images that stops AI models from being able to manipulate the picture.

    The aim of PhotoGuard is to protect photos that people upload online from “malicious manipulation by AI models,” Salman said.

    Salman explained that PhotoGuard works by adjusting an image’s pixels in a way that is imperceptible to humans.

    In this demonstration released by MIT, a researcher shows a selfie (left) he took with comedian Trevor Noah. The middle photo, an AI-generated fake image, shows how the image looks after he used an AI model to generate a realistic edit of the pair wearing suits. The right image depicts how the researchers' tool, PhotoGuard, would prevent an attempt by AI models from editing the photo.

    “But this imperceptible change is strong enough and it’s carefully crafted such that it actually breaks any attempts to manipulate this image by these AI models,” he added.

    This means that if someone tries to edit the photo with AI models after it’s been immunized by PhotoGuard, the results will be “not realistic at all,” according to Salman.

    In an example he shared with CNN, Salman showed a selfie he took with comedian Trevor Noah. Using an AI tool, Salman was able to edit the photo to convincingly make it look like he and Noah were actually wearing suits and ties in the picture. But when he tries to make the same edits to a photo that has been immunized by PhotoGuard, the resulting image depicts Salman and Noah’s floating heads on an array of gray pixels.

    PhotoGuard is still a prototype, Salman notes, and there are ways people can try to work around the immunization via various tricks. But he said he hopes that with more engineering efforts, the prototype can be turned into a larger product that can be used to protect images.

    While generative AI tools “allow us to do amazing stuff, it comes with huge risks,” Salman said. It’s good people are becoming more aware of these risks, he added, but it’s also important to take action to address them.

    Not doing anything, “Might actually lead to much more serious things than we imagine right now,” he said.

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  • GM’s Cruise slashed fleet of robotaxis by 50% in San Francisco after collisions | CNN Business

    GM’s Cruise slashed fleet of robotaxis by 50% in San Francisco after collisions | CNN Business



    CNN
     — 

    California authorities have asked General Motors to “immediately” take some of its Cruse robotaxis off the road after autonomous vehicles were involved in two collisions – including one with an active fire truck – last week in San Francisco.

    California’s Department of Motor Vehicles confirmed to CNN that it is investigating “recent concerning incidents involving Cruise vehicles in San Francisco.”

    “The DMV is in contact with Cruise and law enforcement officials to determine the facts and requested Cruise to immediately reduce its active fleet of operating vehicles by 50% until the investigation is complete and Cruise takes appropriate corrective actions to improve road safety,” the department said in a statement.

    That means Cruise, which is the self-driving subsidiary of General Motors, can have no more than 50 driverless cars in operation during the day, and 150 in operation at night, according to the department.

    The California DMV said that Cruise has agreed to the request, and a spokesperson from Cruise told CNN that the company is investigating the firetruck crash as well.

    The accidents come less than two weeks after California regulators officially gave the green light for Cruise and competitor Waymo to charge money for robotaxi trips around San Francisco at any time of day. Prior to the approval, Cruise was only authorized to offer fared passenger service from driverless cars overnight from 10 pm to 6 am, when there are fewer pedestrians or traffic that could confuse the autonomous vehicle’s software.

    The collisions, which both occurred on Thursday, reveal potential risks of driverless technology.

    In a blog post, Cruise’s general manager for San Francisco said the firetruck crash occurred when an emergency vehicle that appeared to be en route to an emergency scene moved into an oncoming lane of traffic to bypass a red light. Cruise’s driverless car identified the risk, the blog post said, but it “was ultimately unable to avoid the collision.”

    That crash resulted in one passenger being taken to the hospital via ambulance for seemingly minor injuries, according to the company.

    Cruise told CNN the other crash on Thursday took place when another car ran a red light “at a high rate of speed.”

    “The AV detected the vehicle and braked but the other vehicle made contact with our AV. There were no passengers in our AV and the driver of the other vehicle was treated and released at the scene,” Hannah Lindow, a Cruise spokesperson, told CNN.

    It is unclear whether the two accidents would have been avoided had there been a human driver rather than an autonomous vehicle (AV) involved – but the crashes were not the only two incidents involving Cruise’s driverless cars in San Francisco last week.

    On Tuesday, Cruise confirmed on X, formerly known as Twitter, that one of its driverless taxis drove into a construction area and stopped in wet concrete.

    “This vehicle has already been recovered and we’re in communication with the city about this,” the company said.

    The recent events underscore the challenges of creating safe, fully driverless passenger vehicles.

    General Motors acquired Cruise Automation in 2016 for $1 billion, solidifying its place in the autonomous vehicles race, but many companies have since scaled back, or abandoned their driverless car ambitions. The endeavor has proven costly, and mastering all situations that humans might face behind the wheel is difficult and time-consuming.

    Ridesharing giants Uber and Lyft have both sold autonomous vehicle units in recent years. Even Tesla CEO Elon Musk, who has been optimistic about autonomous vehicle technology, has yet to fully deliver on his promise.

    Tesla vehicles now come with the option to add a “full self-driving” feature in beta-testing for $15,000, but drivers must agree to “stay alert, keep your hands on the steering wheel at all times and maintain control of your car.”

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  • Google launches watermarks for AI-generated images | CNN Business

    Google launches watermarks for AI-generated images | CNN Business


    New York
    CNN
     — 

    In an effort to help prevent the spread of misinformation, Google on Tuesday unveiled an invisible, permanent watermark on images that will identify them as computer-generated.

    The technology, called SynthID, embeds the watermark directly into images created by Imagen, one of Google’s latest text-to-image generators. The AI-generated label remains regardless of modifications like added filters or altered colors.

    The SynthID tool can also scan incoming images and identify the likelihood they were made by Imagen by scanning for the watermark with three levels of certainty: detected, not detected and possibly detected.

    “While this technology isn’t perfect, our internal testing shows that it’s accurate against many common image manipulations,” wrote Google in a blog post Tuesday.

    A beta version of SynthID is now available to some customers of Vertex AI, Google’s generative-AI platform for developers. The company says SynthID, created by Google’s DeepMind unit in partnership with Google Cloud, will continue to evolve and may expand into other Google products or third parties.

    Deepfakes and altered photographs

    As deepfake and edited images and videos become increasingly realistic, tech companies are scrambling to find a reliable way to identify and flag manipulated content. In recent months, an AI-generated image of Pope Francis in a puffer jacket went viral and AI-generated images of former President Donald Trump getting arrested were widely shared before he was indicted.

    Vera Jourova, vice president of the European Commission, called for signatories of the EU Code of Practice on Disinformation – a list that includes Google, Meta, Microsoft and TikTok – to “put in place technology to recognize such content and clearly label this to users” in June.

    With the announcement of SynthID, Google joins a growing number of startups and Big Tech companies that are trying to find solutions. Some of these companies bear names like Truepic and Reality Defender, which speak to the potential stakes of the effort: protecting our very sense of what’s real and what’s not.

    The Coalition for Content Provenance and Authenticity (C2PA), an Adobe-backed consortium, has been the leader in digital watermark efforts, while Google has largely taken its own approach.

    In May, Google announced a tool called About this image, offering users the ability to see when images found on its site were originally indexed by Google, where images might have first appeared and where else they can be found online.

    The tech company also announced that every AI-generated image created by Google will carry a markup in the original file to “give context” if the image is found on another website or platform.

    But as AI technology develops faster than humans can keep up, it’s unclear whether these technical solutions will be able to fully address the problem. OpenAI, the company behind Dall-E and ChatGPT, admitted earlier this year that its own effort to help detect AI-generated writing, rather than images, is “imperfect,” and warned it should be “taken with a grain of salt.”

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  • 6 takeaways from Apple’s iPhone 15 event | CNN Business

    6 takeaways from Apple’s iPhone 15 event | CNN Business



    CNN
     — 

    Apple unveiled its iPhone 15 lineup along with other major updates during its September keynote event on Tuesday.

    The company announced it will switch to USB-C charging from its proprietary Lightning charging cable with the iPhone 15, marking a milestone for the company by adopting universal charging. The change aims to ultimately streamline the charging process across various devices — and brands.

    The company also showed off its Apple Watch Series 9 and Ultra 2 smartwatches, with new colors and features including gesture control, and a new iteration of its AirPods Pro wireless earbuds, also with USB-C charging.

    The iPhone charger update, along with changes to its design and camera system, comes as Apple looks to give consumers more reasons to upgrade their iPhones. Last month, Apple’s sales fell for the third consecutive quarter. iPhone revenue came in at $39.7 billion for the quarter, marking an approximately 2% year-over-year decline, as people update their devices less often.

    Apple on Tuesday said it will not raise prices for the iPhone 15 lineup, which could further incentivize users to upgrade.

    Here are the main takeaways from Apple’s Tuesday event:

    The latest iPhones are packed with subtle but significant design changes. To start, the iPhone 15 Pro and iPhone 15 Pro Max now feature a titanium casing, allowing the design to be slimmer and thinner than before.

    Other design changes on the premium models include a more-advanced 48 megapixel main camera with a larger sensor and a new telephoto lens for 5x optical zoom camera, exclusively on iPhone 15 Pro Max. The new Pro models’ design also features contoured edges and a customizable Action button, which gives the ring/silence button additional controls, from starting a voice memo to writing a note.

    Meanwhile, the basic iPhone 15 phones now include updated image stabilization for taking photos and videos, 2x optimization and updated portraits with richer color and better low-light performance. They will also come with the “Dynamic Island” tool – home to alerts, notifications and other controls, in place of the notch – which were previously only available on the iPhone 14 Pro.

    The iPhone 15 lineup also includes an Ultra-Wideband chip to power a handful of new features, including one that makes it easier to find friends who share their location in crowded areas.

    The iPhone 15 comes in 5 colors (white, black, pink, green and yellow) and in two sizes: A 6.1-inch screen for the iPhone 15 and 6.7 inches for iPhone 15 Pro.

    The iPhone 15 will start at $799, and iPhone 15 Pro will start at $999. The iPhone 15 models will be available for pre-order on Friday and for sale in stores on Friday, September 22.

    Perhaps the biggest change coming to the iPhone 15 models is that they will now use a USB-C charging cord, ending an 11-year run with Apple’s proprietary Lightning charging cable.

    Now Apple customers can use the same USB-C chargers to power their iPhones, iPads and Mac computers — no more scrambling to find the right charger for each device. Apple said a dedicated USB-C controller will allow for transfer speeds of up to 20 times faster than with USB-2 technology for the iPhone 15 Pro.

    The new iPhone 15 models will now use a USB-C charging cord, ending an 11-year run with Apple's proprietary lightning charging cable.

    The switch would come less than a year after the European Union voted to approve legislation to require smartphones, tablets, digital cameras, portable speakers and other small devices to support USB-C charging by 2024. The first-of-its-kind law aims to pare down the number of chargers and cables consumers must contend with when they purchase a new device, and to allow users to mix and match devices and chargers even if they were produced by different manufacturers.

    Apple will also sell a $29 USB-C Lightning adapter to let people connect their existing Lightning accessories to a USB-C-enabled iPhone or iPad to charge or share data.

    The company told CNN that iPhone users can recycle their old Lightning chargers via its in-store recycling program.

    Apple Watches are displayed during an announcement of new products on the Apple campus Tuesday, Sept. 12, 2023, in Cupertino, Calif.

    Apple kicked off Tuesday’s event by announcing the new Apple Watch Series 9, which features Apple’s in-house silicon chip and ultrawideband connectivity. The updated Apple Watch will let users log health data with their voice, use “name drop” to share contact information by touching another Apple Watch and raise their wrist to automatically brighten the display. The Series 9 will come in colors such as pink, navy, red, gold, silver and graphite.

    Apple also showed off the second iteration of its rugged Ultra smartwatch line, featuring the updated S9 custom chip and a new UWB chip. It also features more information on the display for more intensive tracking.

    The Apple Watch Series 9 will start at $399 and the Ultra is priced at $799. Customers can place orders today and they will be available on September 22.

    Apple on Tuesday announced the new Watch Series 9, with new gesture controls and improved connectivity.

    Apple is introducing an innovative and unique way to control its new lineup of smartwatches. The Watch Series 9 and high-end Ultra 2 watch will include a new gesture control called Double Tap, allowing allow users to tap their index finger and thumb together twice, to answer or end phone calls, play and pause music, or snooze alarms. The hand gesture can also scroll through widgets, much like turning the digital crown.

    The company said Double Tap is enabled by an enhanced neural engine that processes data from sensors and machine learning, and by monitoring the change in blood flow when two fingers are tapped together. It is available starting next month.

    A similar hand tap will be used to control the Vision Pro mixed reality headset when it launches next year.

    Apple’s next-generation software for the iPhone will be available to download starting on Monday, September 18. In June, the company showed off a slew of new tools coming to iOS 17, such as a more accurate autocorrect, a new feature called Live Voicemail that will transcribe a caller’s message in real time, and a NameDrop tool that lets users share their contact information by holding two iPhones close together. The iPhone’s phone app will also reposition the hang up button to the bottom right of the screen, next to other functions.

    The update will also bring adaptive audio to the AirPods Pro, which will adjust the noise cancellation and volume based on a user’s surroundings, and introduce conversation mode, which customizes the sound of what you’re listening to and softens when you start speaking to someone nearby.

    The iPhone 15 Pro is displayed after its introduction on the Apple campus, Tuesday, Sept. 12, 2023, in Cupertino, Calif.

    Lisa Jackson, Apple’s VP of environment, policy and social initiatives, said that the company’s Watch Series 9 will be Apple’s “first-ever carbon-neutral product,” thanks to efforts to reduce its carbon footprint and to offset emissions with carbon buybacks. She said this has been certified by an independent third-party.

    Doubling down on sustainability initiatives, Jackson also said the tech giant will no longer use leather in any new Apple product, including watch bands.

    Instead of leather, Apple said it will begin using a new textile that it is calling “fine woven.”

    Fine woven will be made of 68% post-consumer recycled content, giving it a significantly lower carbon footprint than leather, Apple said.

    “Beyond expected improved performance and incremental innovation embedded into Apple’s new products, it is great to see Apple communicate on sustainability as a new competitive advantage — especially with Apple’s first carbon neutral products,” Forrester Principal Analyst Thomas Husson said in emailed commentary following the event.

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  • Bill Gates, Elon Musk and Mark Zuckerberg meeting in Washington to discuss future AI regulations | CNN Business

    Bill Gates, Elon Musk and Mark Zuckerberg meeting in Washington to discuss future AI regulations | CNN Business


    Washington
    CNN
     — 

    Coming out of a three-hour Senate hearing on artificial intelligence, Elon Musk, the head of a handful of tech companies, summarized the grave risks of AI.

    “There’s some chance – above zero – that AI will kill us all. I think it’s low but there’s some chance,” Musk told reporters. “The consequences of getting AI wrong are severe.”

    But he also said the meeting “may go down in history as being very important for the future of civilization.”

    The session organized by Senate Majority Leader Chuck Schumer brought high-profile tech CEOs, civil society leaders and more than 60 senators together. The first of nine sessions aims to develop consensus as the Senate prepares to draft legislation to regulate the fast-moving artificial intelligence industry. The group included CEOs of Meta, Google, OpenAI, Nvidia and IBM.

    All the attendees raised their hands — indicating “yes” — when asked whether the federal government should oversee AI, Schumer told reporters Wednesday afternoon. But consensus on what that role should be and specifics on legislation remained elusive, according to attendees. 

    Benefits and risks

    Bill Gates spoke of AI’s potential to feed the hungry and one unnamed attendee called for spending tens of billions on “transformational innovation” that could unlock AI’s benefits, Schumer said.

    The challenge for Congress is to promote those benefits while mitigating the societal risks of AI, which include the potential for technology-based discrimination, threats to national security and even, as X owner Musk said, “civilizational risk.”

    “You want to be able to maximize the benefits and minimize the harm,” said Schumer, who organized the first of nine sessions. “And that will be our difficult job.”

    Senators emerging from the meeting said they heard a broad range of perspectives, with representatives from labor unions raising the issue of job displacement and civil rights leaders highlighting the need for an inclusive legislative process that provides the least powerful in society a voice.

    Most agreed that AI could not be left to its own devices, said Washington Democratic Sen. Maria Cantwell.

    “I thought Satya Nadella from Microsoft said it best: ‘When it comes to AI, we shouldn’t be thinking about autopilot. You need to have copilots.’ So who’s going to be watching this activity and making sure that it’s done correctly?”

    Other areas of agreement reflected traditional tech industry priorities, such as increasing federal investment in research and development as well as promoting skilled immigration and education, Cantwell added.

    But there was a noticeable lack of engagement on some of the harder questions, she said, particularly on whether a new federal agency is needed to regulate AI.

    “There was no discussion of that,” she said, though several in the meeting raised the possibility of assigning some greater oversight responsibilities to the National Institute of Standards and Technology, a Commerce Department agency.

    Musk told journalists after the event that he thinks a standalone agency to regulate AI is likely at some point.

    “With AI we can’t be like ostriches sticking our heads in the sand,” Schumer said, according to prepared remarks acquired by CNN. He also noted this is “a conversation never before seen in Congress.”

    The push reflects policymakers’ growing awareness of how artificial intelligence, and particularly the type of generative AI popularized by tools such as ChatGPT, could potentially disrupt business and everyday life in numerous ways — ranging from increasing commercial productivity to threatening jobs, national security and intellectual property.

    The high-profile guests trickled in shortly before 10 a.m., with Meta CEO Mark Zuckerberg pausing to chat with Nvidia CEO Jensen Huang outside the Senate Russell office building’s Kennedy Caucus Room. Google CEO Sundar Pichai was seen huddling with Delaware Democratic Sen. Chris Coons, while X owner Musk quickly swept by a mass of cameras with a quick wave to the crowd. Inside, Musk was seated at the opposite end of the room from Zuckerberg, in what is likely the first time that the two men have shared a room since they began challenging each other to a cage fight months ago.

    Elon Musk, CEO of X, the company formerly known as Twitter, left, and Alex Karp, CEO of the software firm Palantir Technologies, take their seats as Senate Majority Leader Chuck Schumer, D, N.Y., convenes a closed-door gathering of leading tech CEOs to discuss the priorities and risks surrounding artificial intelligence and how it should be regulated, at the Capitol in Washington, Wednesday, Sept. 13, 2023.

    The session at the US Capitol in Washington also gave the tech industry its most significant opportunity yet to influence how lawmakers design the rules that could govern AI.

    Some companies, including Google, IBM, Microsoft and OpenAI, have already offered their own in-depth proposals in white papers and blog posts that describe layers of oversight, testing and transparency.

    IBM’s CEO, Arvind Krishna, argued in the meeting that US policy should regulate risky uses of AI, as opposed to just the algorithms themselves.

    “Regulation must account for the context in which AI is deployed,” he said, according to his prepared remarks.

    Executives such as OpenAI CEO Sam Altman previously wowed some senators by publicly calling for new rules early in the industry’s lifecycle, which some lawmakers see as a welcome contrast to the social media industry that has resisted regulation.

    Clement Delangue, co-founder and CEO of the AI company Hugging Face, tweeted last month that Schumer’s guest list “might not be the most representative and inclusive,” but that he would try “to share insights from a broad range of community members, especially on topics of openness, transparency, inclusiveness and distribution of power.”

    Civil society groups have voiced concerns about AI’s possible dangers, such as the risk that poorly trained algorithms may inadvertently discriminate against minorities, or that they could ingest the copyrighted works of writers and artists without compensation or permission. Some authors have sued OpenAI over those claims, while others have asked in an open letter to be paid by AI companies.

    News publishers such as CNN, The New York Times and Disney are some of the content producers who have blocked ChatGPT from using their content. (OpenAI has said exemptions such as fair use apply to its training of large language models.)

    “We will push hard to make sure it’s a truly democratic process with full voice and transparency and accountability and balance,” said Maya Wiley, president and CEO of the Leadership Conference on Civil and Human Rights, “and that we get to something that actually supports democracy; supports economic mobility; supports education; and innovates in all the best ways and ensures that this protects consumers and people at the front end — and just not try to fix it after they’ve been harmed.”

    The concerns reflect what Wiley described as “a fundamental disagreement” with tech companies over how social media platforms handle misinformation, disinformation and speech that is either hateful or incites violence.

    American Federation of Teachers President Randi Weingarten said America can’t make the same mistake with AI that it did with social media. “We failed to act after social media’s damaging impact on kids’ mental health became clear,” she said in a statement. “AI needs to supplement, not supplant, educators, and special care must be taken to prevent harm to students.”

    Navigating those diverse interests will be Schumer, who along with three other senators — South Dakota Republican Sen. Mike Rounds, New Mexico Democratic Sen. Martin Heinrich and Indiana Republican Sen. Todd Young — is leading the Senate’s approach to AI. Earlier this summer, Schumer held three informational sessions for senators to get up to speed on the technology, including one classified briefing featuring presentations by US national security officials.

    Wednesday’s meeting with tech executives and nonprofits marked the next stage of lawmakers’ education on the issue before they get to work developing policy proposals. In announcing the series in June, Schumer emphasized the need for a careful, deliberate approach and acknowledged that “in many ways, we’re starting from scratch.”

    “AI is unlike anything Congress has dealt with before,” he said, noting the topic is different from labor, healthcare or defense. “Experts aren’t even sure which questions policymakers should be asking.”

    Rounds said hammering out the specific scope of regulations will fall to Senate committees. Schumer added that the goal — after hosting more sessions — is to craft legislation over “months, not years.”

    “We’re not ready to write the regs today. We’re not there,” Rounds said. “That’s what this is all about.”

    A smattering of AI bills have already emerged on Capitol Hill and seek to rein in the industry in various ways, but Schumer’s push represents a higher-level effort to coordinate Congress’s legislative agenda on the issue.

    New AI legislation could also serve as a potential backstop to voluntary commitments that some AI companies made to the Biden administration earlier this year to ensure their AI models undergo outside testing before they are released to the public.

    But even as US lawmakers prepare to legislate by meeting with industry and civil society groups, they are already months if not years behind the European Union, which is expected to finalize a sweeping AI law by year’s end that could ban the use of AI for predictive policing and restrict how it can be used in other contexts.

    A bipartisan pair of US senators sharply criticized the meeting, saying the process is unlikely to produce results and does not do enough to address the societal risks of AI.

    Connecticut Democratic Sen. Richard Blumenthal and Missouri Republican Sen. Josh Hawley each spoke to reporters on the sidelines of the meeting. The two lawmakers recently introduced a legislative framework for artificial intelligence that they said represents a concrete effort to regulate AI — in contrast to what was happening steps away behind closed doors.

    “This forum is not designed to produce legislation,” Blumenthal said. “Our subcommittee will produce legislation.”

    Blumenthal added that the proposed framework — which calls for setting up a new independent AI oversight body, as well as a licensing regime for AI development and the ability for people to sue companies over AI-driven harms — could lead to a draft bill by the end of the year.

    “We need to do what has been done for airline safety, car safety, drug safety, medical device safety,” Blumenthal said. “AI safety is no different — in fact, potentially even more dangerous.”

    Hawley called Wednesday’s sessions “a giant cocktail party” for the tech industry and slammed the fact that it was private.

    “I don’t know why we would invite all the biggest monopolists in the world to come and give Congress tips on how to help them make more money, and then close it to the public,” Hawley said. “I mean, that’s a terrible idea. These are the same people who have ruined social media.”

    Despite talking tough on tech, Schumer has moved extremely slowly on tech legislation, Hawley said, pointing to several major tech bills from the last Congress that never made it to a Senate floor vote.

    “It’s a little bit like antitrust the last two years,” Hawley said. “He talks about it constantly and does nothing about it. My sense is … this is a lot of song and dance that covers the fact that actually nothing is advancing. I hope I’m wrong about that.”

    Hawley is also a co-sponsor of a bill introduced Tuesday led by Minnesota Democratic Sen. Amy Klobuchar that would prohibit generative AI from being used to create deceptive political ads. Klobuchar and Hawley, along with fellow co-sponsors Coons and Maine Republican Sen. Susan Collins, said the measure is needed to keep AI from manipulating voters.

    Massachusetts Democratic Sen. Elizabeth Warren said the broad nature of the summit limited its potential.

    “They’re sitting at a big, round table all by themselves,” Warren said of the executives and civil society leaders, while all the senators sat, listened and didn’t ask questions. “Let’s put something real on the table instead of everybody agree[ing] that we need safety and innovation.”

    Schumer said that making the meeting confidential was intended to give lawmakers the chance to hear from the outside in an “unvarnished way.”

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  • US says it has no evidence that Huawei can make advanced smartphones ‘at scale’ | CNN Business

    US says it has no evidence that Huawei can make advanced smartphones ‘at scale’ | CNN Business

    Editor’s Note: Sign up for CNN’s Meanwhile in China newsletter which explores what you need to know about the country’s rise and how it impacts the world.


    Hong Kong
    CNN
     — 

    Commerce Secretary Gina Raimondo says the US government has no evidence that Huawei can produce smartphones with advanced chips “at scale,” as it continues to investigate how the sanctioned Chinese manufacturer made an apparent breakthrough with its latest flagship device.

    On Tuesday, Raimondo told US lawmakers that she was “upset” by news of the launch of Huawei’s Mate 60 Pro during her visit to China last month.

    “The only good news, if there is any, is we don’t have any evidence that they can manufacture 7-nanometer [chips] at scale,” she told a US House of Representatives hearing.

    “Although I can’t talk about any investigations specifically, I promise you this: every time we find credible evidence that any company has gone around our export controls, we do investigate.”

    Analysts who have examined the smartphone said it represented a “milestone” achievement for China, suggesting Huawei may have found a way to overcome American export controls.

    US officials have long argued that the company poses a risk to US national security, using it as grounds to restrict trade with the company. Huawei has vehemently denied the claims.

    TechInsights, a research organization that specializes in semiconductors and took the phone apart for analysis, says it includes a 5G Kirin 9000s processor developed by China’s leading chipmaker, Semiconductor Manufacturing International Corporation (SMIC).

    That surprised many because SMIC, a partially state-owned Chinese company, has also been subject to US export restrictions for years. It has not responded to previous requests for comment from CNN.

    TechInsights also found two chips belonging to SK Hynix, a South Korean chipmaker, inside the handset.

    A SK Hynix spokesperson told CNN earlier this month that it was aware of the issue and investigating how that was possible, since the South Korean firm “no longer does business with Huawei” because of US export controls.

    Huawei declined to comment on the capabilities and components of its phone.

    Raimondo said Tuesday that US officials were “trying to use every single tool at our disposal … to deny the Chinese an ability to get intellectual property to advance their technology in ways that can hurt us.”

    In 2019, Huawei was added to the US “entity list,” which restricts exports to select organizations without a US government license. The following year, the US government expanded on those curbs by seeking to cut Huawei off from chip suppliers that use US technology.

    That left the company, once the world’s second largest smartphone seller, in bad shape.

    As of the second quarter of 2023, Huawei was no longer in the top five of mobile phone vendors in China, let alone globally, according to Counterpoint Research.

    But its new phone is a big help for the company — and may pose a challenge to Apple’s (AAPL) market share in China, according to Ivan Lam, a senior analyst at Counterpoint.

    Huawei is scheduled to hold a product launch event next Monday, where new phones are expected to be the main focus, according to Toby Zhu, a Canalys mobility analyst.

    Other devices, like tablets or earphones, may also be shown off. Huawei has not publicly released details of the event.

    In the coming months, the firm plans to release another 5G phone, possibly under Nova, its mid-range lineup, Chinese news outlet IT Times reported Tuesday, citing unidentified industry sources. Huawei declined to comment.

    Zhu said the phone was widely expected to come with 5G capability, powered either by the “Kirin 9000s chip or another chip.”

    If it does, the new model could become even more popular than the Mate 60 Pro, which starts at 6,999 yuan (about $959), because of its relative affordability, he added.

    While Raimondo was unhappy with the timing of Huawei’s launch, analysts say it was unlikely to have been arranged to coincide with her presence in China.

    It was likely “a marketing campaign aimed at winning over customer interest before the iPhone 15 hits the market,” analysts at Eurasia Group wrote in a report.

    The move helped the Shenzhen-based company capture the second spot in China’s smartphone market in the first week of September, ahead of Apple’s big event, said Lam of Counterpoint.

    — Rashard Rose and Mengchen Zhang contributed to this report.

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  • ‘Where is the phone?’ Huawei keeps quiet about Mate 60 Pro but takes aim at Tesla | CNN Business

    ‘Where is the phone?’ Huawei keeps quiet about Mate 60 Pro but takes aim at Tesla | CNN Business

    Editor’s Note: Sign up for CNN’s Meanwhile in China newsletter which explores what you need to know about the country’s rise and how it impacts the world.


    Hong Kong
    CNN
     — 

    Huawei has disappointed legions of fans — and US officials — eager to know more about its Mate 60 Pro smartphone, which has quickly become a symbol of the tech rivalry between the United States and China since it went on sale last month.

    Huawei’s consumer chief, Richard Yu, showed off a slew of new products including a tablet, smartwatch, earphones and even a challenge to Tesla (TSLA) on Monday, without going into detail about its flagship device, which has provoked calls in Washington for more sanctions against the Chinese tech and mobile giant.

    The United States has spent years trying to hobble Huawei’s ability to access the most advanced semiconductors, and the unveiling of its 5G phone in August has taken Western observers by surprise.

    The launch event became the most discussed topic on Chinese social network Weibo, racking up six billion views and 1.6 million posts. Meanwhile, a hashtag titled “#HuaweiConferenceWithoutMentioningMobilePhones,” trended on Weibo, with 24.5 million views.

    “You’re telling me there will be no talk about the phone?” one user wrote on the social network.

    “Where is the phone?” said another.

    Huawei quietly started selling the Mate 60 Pro in August, without a formal launch event or sharing full technical specifications.

    Yu said onstage that the company was “working overtime” to urgently produce devices in the Mate 60 series “to allow more people to buy and use our products.”

    But “today, we will not introduce” those devices, he added.

    At one point, Huawei whetted viewers’ appetite by unveiling a new premium collection called Ultimate Design, introduced by Hong Kong singer and actor Andy Lau.

    The line consists of a luxury smartphone and smartwatch. Few details were released, though the company said the watch was made using bars of real gold — giving it a hefty price tag of 21,999 Chinese yuan ($3,009).

    Ben Sin, an independent tech reviewer, said he was “baffled” as to why Huawei did not discuss its smartphones.

    The company “knows everyone wants to know more about the chip [in the Mate 60 Pro], so them not talking about it is almost like defiance,” he said.

    Analysts who have examined the handset have said it includes a 5G chip, suggesting Huawei may have found a way to overcome American export controls.

    Huawei, formerly the world’s second largest maker of smartphones, has been attempting a comeback in China’s smartphone market after being hit by US export restrictions, which were first imposed in 2019.

    The company’s woes later forced it to sell off its budget mobile brand, Honor, leaving it in bad shape.

    But it is starting to find its way back.

    The firm’s smartphone sales grew in China by 58% in the second quarter of this year, compared to the same period last year, according to Counterpoint Research. Its share of the Chinese market rose from 6.9% to 11.3% over that period.

    Ivan Lam, a senior analyst at Counterpoint, said Huawei benefited from “its high brand exposure to” wealthy Chinese consumers. Because of this, Huawei’s market share in China is expected to further grow in 2024, he added.

    Huawei’s new phone is a boon for the company and may even pose a challenge to Apple’s (AAPL) market share in China, Lam said.

    The Shenzhen-based company has seen a recent “surge in sales” for its Mate 60 series, with weekly sales almost tripling to 225,000 units, according to Counterpoint.

    Yu demonstrated a number of other new products, starting with the latest version of its MatePad Pro, describing it as the lightest and thinnest tablet of its kind in the world. He said the device had been 10 years in the making.

    In addition, the company unveiled a new smart TV, wireless earphones and other gadgets.

    Huawei also took an aggressive swipe at Tesla, saying it would release its first sedan, the Luxeed S7, in November. The car will surpass Tesla’s Model S “in every specification,” said Yu.

    The company plans to release the Aito M9, an SUV, in December. Huawei has partnered with Chinese automakers to produce the two previously announced electric vehicles.

    Yu also announced Huawei was “ready to launch” an updated operating system, HarmonyOS NEXT.

    The system will include “native applications,” Yu said, without elaborating.

    Speculation has mounted that Huawei may be building an operating system that won’t be compatible with any Android apps.

    Huawei did not immediately respond to a request for comment on the matter.

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  • Biden administration announces new labels for gadgets that are less vulnerable to cyberattacks | CNN Business

    Biden administration announces new labels for gadgets that are less vulnerable to cyberattacks | CNN Business



    CNN
     — 

    The next time you’re in the market for a smart TV, fitness tracker or other connected gadget, you could see a new US government-backed label identifying some products as being particularly hardened against hackers.

    On Tuesday, the Biden administration announced it’s moving to implement a cybersecurity labeling program aimed at helping consumers pick out trustworthy tech products that are rated as more secure than the competition.

    The program seeks to bolster the nation’s cybersecurity overall by guiding Americans who may be in the market for smart home tech or wearables toward products that meet a high standard for cybersecurity as defined by the National Institute of Standards and Technology (NIST).

    The label will appear as a “distinct shield logo,” according to the White House. Products that meet the criteria for the label could include tech that requires strong passwords and that provides regular software updates to guard against the latest threats, for example.

    A wide range of products could be covered, the administration said, including smart refrigerators, microwave ovens, thermostats, home voice assistants and — eventually — WiFi routers, after NIST finishes designing cybersecurity standards for them later this year.

    For years, cybersecurity has been an afterthought in a market for so-called “internet of things” (IoT) devices that prioritizes low costs over security, according to security experts. One of the more famous examples of IoT security failures came in 2016, when criminal hackers used an army of infected computers, known as the Mirai botnet, to disrupt access to the websites of Twitter, PayPal, and others.

    Products certified under the new program may come with a QR code that links to a national database affirming its participation, the administration added in a release.

    The launch of the program could still be as far as a year away. But the administration took its first steps toward implementation on Tuesday as the Federal Communications Commission applied for a trademark linked to the effort, known as the “US Cyber Trust Mark.”

    The FCC, which regulates wireless devices, also issued a formal proposal that will be open for public feedback on how it should manage the program.

    “This new labeling program would help provide Americans with greater assurances about the cybersecurity of the products they use and rely on in their everyday lives,” the administration said in a statement. “It would also be beneficial for businesses, as it would help differentiate trustworthy products in the marketplace.”

    The government proposal comes two years after President Joe Biden signed an executive order calling for an “‘energy star’ type of label” for tech products. At the time, the US government was still reeling from a crippling ransomware attack days earlier that had forced a temporary shutdown of Colonial Pipeline, one of the country’s largest fuel pipeline operators.

    The executive order highlighted how the administration could use product labeling, combined with the federal government’s immense procurement power, to shape commercial markets and raise the bar for companies that sell technology to both US agencies and ordinary consumers.

    Companies including Amazon, Best Buy, Cisco, Google, LG, Logitech, Samsung and others pledged to assist in the government’s labeling push by committing to increase the cybersecurity of their products, the White House said Tuesday.

    Dave DeWalt, CEO of the cybersecurity-focused investment firm NightDragon, said the government’s move could help address a “perfect storm” of billions of insecure IoT devices.

    “Market forces alone were never going to be sufficient to force manufacturers to step up and deliver more secure devices,” he said. “We’ve taken an essential step now in the right direction to put the power back in the hands of the consumers to choose better security.”

    The Consumer Technology Association said Tuesday its next annual trade show, CES 2024, will feature “certification-ready products” once the FCC finalizes its rules.

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  • Why one popular shoe brand is lowering prices in the face of inflation | CNN Business

    Why one popular shoe brand is lowering prices in the face of inflation | CNN Business


    New York
    CNN
     — 

    As inflation continues to strain family budgets, forcing people to prioritize purchasing daily necessities over discretionary buys, one maker of popular footwear is lowering prices on its products to provide some relief to weary consumers.

    Oregon-based Keen, which makes walking shoes, boots and water sandals for toddlers to adults in addition to work boots, is moving in the opposite direction of most of its industry, It’s lowering prices as many of its customers start cutting out their shoe budget.

    According to a survey in January by market research firm Circana (formerly IRI and The NPD Group), 56% of consumers (up from 52% in July 2022) said they had delayed or skipped a footwear purchase or chosen a less expensive option in the past six months due to price increases on either footwear or other goods.

    Circana also noted that households with kids are pulling back on footwear spending more so than those without, as parents are forgoing footwear purchases for themselves.

    “Families are obviously feeling the pressure from inflation,” Beth Goldstein, footwear and accessories analyst at Circana, said in the report. “Without the government assistance that many households with children had previously received, they are now prioritizing their kids’ footwear replacement needs over their own.”

    The company said it’s started reducing prices across its portfolio of products, which range from $36 for kids’ shoes to about $250 for adult shoes.

    “On average, we are bringing prices down by 5% across the board,” John Evons, president of Keen said Friday in an interview with CNN. The company announced the move on its website on Thursday.

    “We believe we are doing the right thing to help people in this inflationary environment. We want people to continue to enjoy the outdoors and be able to go to work with safe shoes,” he said.

    Keen, which employs around 350 people in the US, makes its footwear in Portland and in factories in the Dominican Republic and Thailand. While Evons declined to disclose the company’s annual sales, he said the business sells millions of pairs of shoes annually in the US and globally.

    But being a vertically integrated business is what has allowed Keen to lower prices, he said. Keen owns 40% of its supply chain, from raw material sourcing to manufacturing plants to distribution centers.

    “This helped us as we went into 2020 and faced supply chain challenges, mounting freight costs and disruptions because of the pandemic,” said Evons. “We were able to respond quickly to the evolving marketplace in 2021 and 2022.”

    As supply chain and shipping costs have eased post-pandemic, Evons said the company wanted to also pass on some savings to its customers.

    Keen is lowering prices by about 5% across its products.

    “We expect to stand behind this for the foreseeable future,” Evons said.

    Given these trends, Goldstein said Keen’s move is noteworthy.

    “Most brands are reacting to consumers pulling back by offering increased promotions and not bringing the original product price down,” she said to CNN. “This is unique, and it will be interesting to see if other companies follow suit.”

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  • The world’s biggest ad agency is going all in on AI with Nvidia’s help | CNN Business

    The world’s biggest ad agency is going all in on AI with Nvidia’s help | CNN Business


    London
    CNN
     — 

    WPP, the world’s largest advertising agency, has teamed up with chipmaker Nvidia to create ads using generative artificial intelligence.

    The companies announced the partnership Monday, with Nvidia

    (NVDA)
    CEO Jensen Huang unveiling WPP’s new content engine during a demo at Computex Taipei.

    “Generative AI is changing the world of marketing at incredible speed. This new technology will transform the way that brands create content for commercial use,” WPP CEO Mark Read said in a statement.

    The platform will enable WPP

    (WPP)
    ’s creative teams to integrate content from organizations such as Adobe and Getty Images with generative AI to produce advertising campaigns “more efficiently and at scale,” according to WPP

    (WPP)
    . This would enable companies to make large volumes of advertising content, such as images or videos, “more tailored and immersive,” the company added.

    In the demo screened by Huang, WPP had created realistic footage of a car driving through a desert.

    The new AI-powered content engine means that same car could be placed on a street in London or pictured in Rio de Janeiro to target the Brazilian market — all without the need for costly on location production.

    Just as advertising campaigns can be rapidly adapted for different countries or cities, they can also be customized for different digital channels, such as Facebook or TikTok, and their users.

    “You can build very finely tuned campaigns to resonate with an audience… On the other hand, you could make up imaginary scenarios that never existed in real life,” Greg Estes, vice president of developer programs at Nvidia told CNN.

    The platform is the latest example of how AI is being rapidly deployed by major companies to enhance productivity and deliver new products to customers. Many in the advertising and media industries are concerned about threats to their jobs because of the way that AI is able to aggregate information and create visual content indistinguishable from photography.

    WPP said its new platform “outperforms current methods” of having people “manually create hundreds of thousands of pieces of content using disparate data coming from disconnected tools and systems.” In other words, the new technology could mean that much smaller creative teams are ultimately able to do the same amount of work.

    “It’s much easier to identify the jobs that AI will disrupt than it is to identify the jobs that AI will create,” Read told the Financial Times Monday. “We’ve applied AI a lot to our media business, but very little to the creative parts of our business.”

    Nvidia’s Huang said: “The world’s industries, including the $700 billion digital advertising industry, are racing to realize the benefits of AI,” adding that WPP would now enable brands to “deploy product experiences and compelling content at a level of realism and scale never possible before.”

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  • China’s deflation worries deepen as consumer prices grow only 0.1% in April | CNN Business

    China’s deflation worries deepen as consumer prices grow only 0.1% in April | CNN Business


    Hong Kong
    CNN
     — 

    Deflationary pressure in China is worsening as consumer prices increased at the slowest pace in two years, suggesting weakness in domestic demand and a long road ahead to full economic recovery.

    The consumer price index rose by just 0.1% in April from a year ago, the lowest rate since February 2021, according to the National Bureau of Statistics on Thursday. In March and February, it increased 0.7% and 1% respectively.

    The producer price index, which measures factory-gate prices, declined by 3.6%, marking the biggest contraction in three years. It’s the seventh straight month the figure has fallen.

    Prices are stagnating or falling in the country despite the fact that the People’s Bank of China, the central bank, has been cutting interest rates and pumping cash into the financial system to bolster the economy.

    This is a developing story and will be updated.

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  • Easily stolen Hyundais and Kias should be recalled, more than a dozen attorneys general say | CNN Business

    Easily stolen Hyundais and Kias should be recalled, more than a dozen attorneys general say | CNN Business



    CNN
     — 

    A coalition of attorneys general for 17 states and the District of Columbia on Thursday called for a federal recall of Hyundai and Kia vehicles that they say are unsafe and too easy to steal.

    The attorneys general called for the recall “following the companies’ continued failure to take adequate steps to address the alarming rate of theft of their vehicles,” a release from California Attorney General Rob Bonta, who is leading the coalition, said.

    In a letter to the National Highway Traffic Safety Administration, the coalition requested a recall of “unsafe” Hyundai and Kia vehicles manufactured between 2011 and 2022 “whose easily bypassed ignition switches and lack of engine immobilizers make them particularly vulnerable to theft.”

    The vehicles in question, 2015-2019 Hyundai and Kia models, such as the Hyundai Santa Fe and Tucson and the Kia Forte and Sportage, when equipped with turn-key ignitions — as opposed to cars that only require a button to be pushed to start — are roughly twice as likely to be stolen as other vehicles of a similar age. Many of these vehicles lack some of the basic auto theft prevention technology included in most other vehicles, even in those years, according to the Highway Loss Data Institute, an industry group that tracks insurance statistics.

    These models became the subject of a viral social media trend in which thieves filmed themselves and others stealing Hyundai and Kia vehicles and taking them for a drive. In some parts of the country, the problem became so bad that some insurance companies refused to write new policies on these Hyundai and Kia models in places where the thefts had become extremely common.

    The models in question don’t have electronic immobilizers, which rely on a computer chip in the car and another in the key that communicate to confirm that the key belongs with that vehicle. Without the right key, an immobilizer should do just that — stop the car from moving.

    “Hyundai and Kia announced that they will initiate voluntary service campaigns to offer software updates for certain vehicles with this starting-system vulnerability. Unfortunately, however, this is an insufficient response to the problem and does not adequately remedy the safety concerns facing vehicle owners and the public,” the letter to the NHSTA said.

    Hyundai and Kia did not immediately respond to CNN’s request comment.

    The two South Korean automakers have created a software patch to fix the problem, the automakers have said. Hyundai and Kia operate as separate companies in the United States, but Hyundai Motor Group owns a large stake in Kia, and various Hyundai and Kia models share much of their engineering.

    The patch will be installed free of charge on models that need it, with software that requires an actual key in the ignition to turn the vehicle on. The software will also block the car from being started after the doors have been locked using the key fob remote control. The vehicle will need to be unlocked before it can be started.

    The software also extends the length of the alarm sound from 30 seconds to a full minute. Hyundai dealers will also affix window stickers stating that the vehicle has anti-theft software installed.

    “The bottom line is, Kia’s and Hyundai’s failure to install standard safety features on many of their vehicles have put vehicle owners and the public at risk,” Attorney General Bonta said. “We now ask the federal government to require these companies to correct their mistake through a nationwide recall and help us in our continued efforts to protect the public from these unsafe vehicles.”

    Recalls are ordered by NHTSA or, much more commonly, undertaken by automakers to correct safety-related defects. The attorneys general’s letter asserts that the ease of theft of these Hyundai and Kia vehicles constitutes a safety hazard and the vehicles fail to meet federal standards for theft prevention.

    “Moreover, thieves have driven these vehicles recklessly, speeding and performing wild stunts and causing numerous crashes, at least eight deaths, and significant injuries,” the letter said.

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  • So this is how the Tupperware party ends | CNN Business

    So this is how the Tupperware party ends | CNN Business


    New York
    CNN
     — 

    Tupperware, an iconic brand that’s woven into the fabric of post World War II America, signaled this week that it could be on its last gasp.

    Known the world over for its plastic food storage containers and its sales parties, Florida-based Tupperware warned that the company was running out of cash and needed additional money – soon – to say in operation.

    In some ways, the 77-year-old brand is still a titan: It’s, literally, a household name, and its vivid juice- and fruit-colored products are for sale in nearly 70 countries. It pulled in annual sales of $1.3 billion in 2021. But that’s down 18.7% from a year ago.

    Last October, in a massive shift in its business model, Tupperware rolled out its containers in brighter hues of red, purple and green onto Target shelves nationwide.

    But it may be too little, too late.

    Experts say this is what happens when a once-pioneering brand, beloved by families through generations, is unable to adapt to an evolving marketplace, brutal competition and attitudes and needs of younger consumers.

    “Tupperware was a disruptor in the market and in households nationwide when its plastic storage containers launched in 1946,” said Venkatesh Shankar, professor of marketing and ecommerce at Texas A&M University’s Mays Business School.

    “The company also had tremendous cultural impact. The famous neighborhood house parties where Tupperware products were sold by the host to her family and friends was a new way of marketing, combining socializing with direct sales.”

    But while the company reaped the benefits of its innovative approach for years, it ultimately couldn’t keep pace with changing times.

    History has shown, said Shankar, that nostalgia usually isn’t enough to sustain legacy brands.

    Whether or not Tupperware survives as a business, its rich history will likely endure, said William Keep, professor of marketing at the College of New Jersey School of Business.

    “I’ve been married for 50 years and we still have and use our Tupperware from when we married. Tupperware was something people gave as gifts at weddings and baby showers,” said Keep. “Clearly its a brand that focused on two things, quality and for much of its history, women.”

    Tupperware is named after Earl Tupper, a chemist in the 1940s who created lightweight, non-breakable plastic containers inspired by the seal-tight design of paint cans. The purpose was to help families save money on costly food waste in the post-war era.

    The most significant aspect of the invention was a first-of-its-kind “burping seal.” The older models of Tupperware containers would make a burp-like sound when air was let out from under the lid before it was firmly pressed and closed for an air-tight lock.

    But Tupperware products didn’t sell well in stores when they launched, according to the company, because consumers weren’t sure how to use the (back then) white and off-white containers.

    Tupperware house parties were the only way to buy the brand's plastic food containers. The parties were hosted by women in their homes and were both popular social and marketing events. (circa 1950)

    That conundrum led to an idea to demonstrate the product, which then evolved into the famous Tupperware house parties.

    The practice dove-tailed brilliantly with the rise of post-war suburbia: women had bigger homes, bigger kitchens, more money to spend, more children to feed and more responsibilities to keep house.

    Into that climate came Tupperware. Its first milky-white plastic product, the “Wonder Bowl,” cost 39 cents, according to Smithsonian Magazine; the museum has a huge Tupperware collection. Over the years, tangerine orange, baby blue and pink and kiwi green products followed.

    Tupperware parties became popular social and marketing events in the 1950s and 60s.

    The parties were much more than just a show-and-tell, said Bob Kealing, a Tupperware scholar and author of two books on the brand.

    These were glamorous affairs, akin to an afternoon tea party, where women dressed up because the parties were a feminized, soft-sell approach to selling plastic products.

    “Women wore beautiful dresses, heels, gloves. They wanted to present an upscale version of themselves because these were also events where women were recruited into the Tupperware sales force,” he said. The parties gained traction also because they were one of the few socially acceptable ways for women to make money at the time.

    Tupperware products were the centerpiece of the event, carefully stacked and presented to be shown off. “The parties were designed to be fun social gatherings,” including games and prizes, he said, and the most successful Tupperware saleswomen were sometimes rewarded with diamond rings.

    While Tupperware wasn’t the first to pioneer the direct sales model, it did scale it up in size and opportunity for women, said Tracey Deutsch, associate professor, department of history of history at University of Minnesota College of Liberal Arts.

    Tupperware’s success, said Deutsch also coincided with the expansion of suburbs across the country.

    Earl Tupper, seen here in the photo, hired Brownie Wise, a Tupperware house party hostess, as his vice president of marketing in 1951.

    “Not only did women need the space to hold the Tupperware parties but also space in the kitchen to store these containers,” she said. “And it was also dependent on a certain level of household well-being. You needed to have enough food to require these storage containers.”

    Brownie Wise was perhaps the most famous Tupperware hostess of them all. Wise, a divorced single mother living in Florida, held her own Tupperware parties in the 1940s and 50s and became a budding entrepreneur. Tupper himself took notice.

    He eventually hired Wise as his vice president of marketing, an unprecedented role for women back then.

    Kealing, author of “”Life of the Party: The Remarkable Story of How Brownie Wise Built, and Lost, a Tupperware Part Empire,” said Wise became the face of the brand and was very good at it.

    “It was great marketing and the media ate it up,” he said. But she was ultimately fired by Tupper in 1957. “Tupper… saw how the brand was becoming more about her,” said Kealing.

    Traditionally, parties were the only way you could buy Tupperware. Over time, the parties became ubiquitous both in suburban and city dwellings. As the company grew, its fleet of hostesses ballooned into a global direct sales force of nearly 3 million in 2019.

    More recently, the brand was on a quest to grab the attention of Millennials and Gen Zers and become as relevant in their everyday lives as it was for their grandmas and moms.

    That meant shedding the throwback to its “Mad Men” era image, and positioning Tupperware products as buzz-worthy, higher quality and more durable than rivals, high-utility and with an environmentally-friendly purpose.

    Tupperware had to go beyond parties or sales on its own website and the brief and limited pilot programs it had tried with retailers HomeGoods, Bed Bath and Beyond, plus an earlier pilot attempt at Target itself.

    Tupperware rolled its products into Target stores nationwide in 2022, marking a significant shift in the company's decades-long direct sales strategy.

    The shift in strategy came too late. “We’ve seen this happen with Toys ‘R’ Us, Twinkie, most recently Bed Bath & Beyond,” said Shankar.

    Tupperware, he said, is facing a perfect storm of stiff competition from other brands – Rubbermaid, Glad, Pyrex, Oxo and Ziploc – selling similar products or even disposable versions for less, lack of interest from younger shoppers and lack of exciting new products and strategies to sell them.

    “Millennials, and Gen Zers especially probably aren’t aware of its iconic status and really don’t have a reason to give it another chance,” said Shankar.

    “In my mind, the company made two critical errors,” said Keep, professor of marketing at the College of New Jersey School of Business.

    “With product, it lost ground to competitors”, said Keep. “Tupperware also consciously didn’t walk away from direct selling even as these multilevel marketing strategies stagnated in the 80s and 90s. When it was clear that model was no longer working, the company should have given up on direct sales and sold through retailers.”

    Bankruptcy could be a path forward for Tupperware, said John Talbott, Director at the Center for Education and Research in Retail at Indiana University’s Kelley School of Business.

    “The most valuable thing Tupperware owns is its brand. Like Blockbuster, the Tupperware brand will never go away,” he said. “I suspect it could file for bankruptcy and if there is a buyer for it, Target would be a great option to revive the brand with new designs and a new marketing plan.”

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  • Ohio GOP businessman Moreno files for Senate bid | CNN Politics

    Ohio GOP businessman Moreno files for Senate bid | CNN Politics



    CNN
     — 

    Bernie Moreno, a wealthy Ohio businessman, has filed paperwork to run for Senate in 2024 and challenge Democratic Sen. Sherrod Brown in what’s likely to be one of the most competitive races of the upcoming cycle.

    Moreno is now the second Republican to officially jump into the race after state Sen. Matt Dolan announced his candidacy in January.

    Moreno mounted an unsuccessful campaign for Senate in 2022, loaning his campaign millions from his personal fortune before dropping out of the race ahead of the primary. His decision to drop out came after a meeting with former President Donald Trump, who would go on to endorse one of his rivals, J.D. Vance.

    The Cleveland businessman’s entry into the 2024 race sets up another potentially expensive and contentious primary in the state after the 2022 contest, which was driven by several self-funding candidates, was one of the costliest that year.

    Other potential candidates who have expressed interest include 8th district Rep. Warren Davidson and Secretary of State Frank La Rose.

    Brown is one of several vulnerable Democrats who the party is defending as it seeks to hold its slim majority in the upper chamber. Trump carried the state in 2016 and 2020, and Vance won the 2022 race by nearly 7 points despite a spirited challenge by Democratic Rep. Tim Ryan.

    Still, Brown, seeking his fourth term, won his last race in 2018 by nearly 7 points, bolstering Democratic hopes that they can hang on in a state that has trended increasingly Republican over the last several election cycles. And Brown had more than $3.4 million stockpiled in Senate campaign account as of the end of last year.

    Democrats, though, will be pressed to defend Brown amid a challenging map that includes other incumbents in similarly vulnerable positions, such as Sen. Joe Manchin in West Virginia and Sen. Jon Tester in Montana, along with an unpredictable three-way race in Arizona.

    CORRECTION: This story has been updated to reflect that former President Donald Trump endorsed JD Vance in the 2022 Ohio Senate race after a meeting with Bernie Moreno.

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  • Video: A pause on AI development, why it’s the worst time to buy a car in decades on CNN Nightcap | CNN Business

    Video: A pause on AI development, why it’s the worst time to buy a car in decades on CNN Nightcap | CNN Business

    The dangers of AI, the worst time to buy a car in decades, and the next Elizabeth Holmes?

    NYU’s Gary Marcus tells “Nightcap’s” Jon Sarlin why he signed an open letter calling for a six-month pause on AI development. Plus, CNN’s Peter Valdes-Dapena explains why car prices may never go back to where they were pre-Covid. And Forbes’ Alexandra Levine details the arrest of Charlie Javice, the 31-year-old fintech founder who sold her company to JPMorgan and now stands accused of fraud. To get the day’s business headlines sent directly to your inbox, sign up for the Nightcap newsletter.

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