Selective WhatsApp, Telegram ban to discourage blanket Internet shutdowns
TRAI feels a selective ban on popular OTTs such as Whatsapp, Facebook & Telegram would encourage seamless continuity of essential internet-driven services such as financial transactions, online healthcare & education. A TRAI official said that they are not able to selectively ban the internet. They are banning the entire internet. The intent was to continue with essential services like banking, online education. It is not as if OTTs are targeted. TRAI had recommended in September 2020 that there was no need to regulate “OTT communication services,” the term for such apps that allow calling and texting over the Internet, often with encryption that makes it difficult for anyone to access the content of a given message or phone conversation. A consultation paper was released which recommended banning of selective internet services in specific areas where there are tensions between communities. It assumes special significance considering the ongoing Internet shutdown in Manipur, which has spent weeks without mobile Internet or wired broadband after an Internet shutdown was ordered due to escalating communal tensions. Many NGOs and civil society organizations have complained about the large number of internet shutdowns in India. Of the 187 internet shutdowns in the world across 87 countries in 2022, India ranked in the top for a 5th consecutive year.
Generative AI, flexible batteries, metaverse among top emerging tech for 2023
Generative artificial intelligence (Gen AI), flexible batteries, and the metaverse are identified as some of the top emerging technologies for 2023, according to a report by the World Economic Forum (WEF). These technologies have the potential to disrupt industries, boost economies, improve lives, and protect the environment if they are designed, scaled, and deployed responsibly. Gen AI refers to AI systems that are capable of creating or generating new content, such as music, art, and writing. This technology has the potential to revolutionize creative fields and enable new forms of expression. Flexible batteries are another key emerging technology. Unlike traditional batteries, flexible batteries can be bent and shaped to fit various devices, making them ideal for wearable technology and other flexible electronics. These batteries have the potential to significantly enhance the functionality and design of future devices. The WEF report highlights the importance of responsible design, scaling, and deployment of these technologies. It emphasizes the need to consider ethical and social implications, privacy and security concerns, and the impact on jobs and the workforce. By addressing these issues, the potential of these emerging technologies can be fully harnessed for the benefit of society. In addition to Gen AI, flexible batteries, and the metaverse, other emerging technologies identified by the WEF report include artificial intelligence (AI), data centers, and the internet. These technologies are expected to play a significant role in shaping the future and driving innovation in various sectors.
Using Social Media to Help Taxpayers
Every major reform initiative in the area of direct taxes over the last nine years has been driven by the twin objectives of simplification of the taxation regime and facilitation of honest taxpayers. From lowering tax rates to easing compliances, these reforms have fundamentally changed the approach of the Central Board of Direct Taxes (CBDT) towards taxpayers – an approach marked by trust, transparency and responsiveness. The broad trends of number of income-tax returns (ITRs) filed as well as the direct tax collections over this period have vindicated this trust-based approach. A major enabler of this success has been CBDT’s embrace of technology to not only simplify compliances but to also identify potential cases of tax evasion through data analytics. E-filing of ITRs has been further improved by introducing pre-filled ITR forms. The faceless assessment procedures now make the entire assessment cycle of an ITR an online process, obviating the need for a taxpayer to interact physically with the department. Advanced tools of data analytics are used in the risk management process to identify potential cases of tax evasion by rule-based algorithms. Information of the financial transactions in possession of the department is used to alert the taxpayers, as a gentle nudge, to correctly account for the effect of such transactions while filing their ITRs. Technology has not only been used to enhance the aforesaid core processes of tax administration but also in the resolution of grievances. There are already various mechanisms of grievance redressal in CBDT, including CPGRAM, eNivaran and Aaykar Seva Kendras (ASK). However, in an ecosystem where the compliance processes are increasingly handled through e-portals and without any physical interaction, CBDT forayed into the social media platforms like YouTube, Instagram, LinkedIn and Twitter for the purpose of social listening. Technology has not only been used to enhance the aforesaid core processes of tax administration but also in the resolution of grievances. The approach was platform-agnostic as CBDT established its presence on all the major social media platforms to use all available options for taxpayer facilitation. Twitter came to be used most frequently for grievance redressal. The number of followers on Twitter (@IncomeTaxIndia) increased from around 0.3 million in 2019 (when ORM began) to more than 1.4 million in 2023.
Twitter Challenger Threads Struggles to Gain Traction
After a wildly successful first few days, Threads popularity has waned in the weeks since Meta launched its challenge to Twitter, which lives on despite its problems. The average amount of time people spend on Threads daily has plummeted more than 75 percent since the platform made a rock star debut on July 6, according to data from Sensor Tower, a market analysis firm. Threads was quickly billed as a potential death knell for Twitter, a platform that has tumbled into chaos under the leadership of mercurial tycoon Elon Musk. The launch saw sign-ups of more than 100 million users in less than five days, smashing the record of AI tool ChatGPT for fastest-growing consumer app and creating relief and excitement amongst early adopters fleeing Twitter. But weeks later, Threads has since seen a “material decline in new sign-ups,” Sensor Tower said. Twitter continues to dominate its space as a platform for online comment and news, and Musk “would have to completely destroy it” to drive away its audience for good, according to Silicon Valley investor and analyst Jeremiah Owyang. “Will Threads kill Twitter? Absolutely not. It’s just not equivalent,” he said.
Amazon Business records 56 per cent YoY growth during Prime Day
Amazon’s B2B platform Amazon Business registered 56% growth in sales over 2022 during the e-commerce firm’s recent Prime Day sale, Amazon India said. The company sold a large appliance every 2 seconds, around five smartphones every second and about two toys every second during the Prime Day sale that was held on July 15 and 16 for paid members of Amazon India. “Amazon Business witnessed a 56% sales growth (versus Prime Day 2022), including two times growth in electronics, 1.7 times growth in office furniture and 1.4 times growth in kitchen products and appliances,” the company said.
Web 3.0: The decentralized and democratized future of the internet
Web 3.0 is the next evolution stage of the internet, promising a more intelligent, decentralized, and secure web. Also known as the semantic web, it uses technologies such as artificial intelligence, machine learning, and blockchain to create a more interconnected online ecosystem. Web 3.0 can revolutionize various industries, including finance, healthcare, and education, by enabling new forms of collaboration, data sharing, and trust-building. For example, Web 3.0 can facilitate decentralized (DeFi) finance by enabling peer-to-peer transactions without intermediaries. In healthcare, it can ensure patient data’s secure and efficient sharing. Decentralization and democratization of data – Web 3.0’s decentralized architecture offers a solution to centralized data control and ownership. It enables the decentralization and democratization of data, empowering users to store and share their data on decentralized networks, resulting in greater ownership and control. The use of public blockchains ensures greater transparency, making it difficult for any single entity to manipulate or control the data. Decentralized data storage protocols like IPFS and Filecoin are excellent examples of this architecture. Blockchain technology enables secure and transparent transactions. This helps more in Decentralised Finance (DeFi). With Web 3.0 users can engage in peer-to-peer transactions without intermediaries such as banks. In manufacturing, blockchain technology ensures transparent supply chains. With decentralized applications (dApps) retailers can create immersive and personalized experiences using AR/VR technologies. Web 3.0 aims to address security and privacy issues that have plagued Web 2.0, such as data breaches, identity theft, and surveillance. Web 3.0’s decentralized and cryptography-based solutions can enhance security and privacy.Web 3.0 will also promote interoperability between platforms. The IoT plays a big part in between physical devices and enabling real-time exchange.
Microsoft, Google, Apple most imitated brands for phishing scams
Global technology companies — Microsoft, Google and Apple — are leading the way to become the most imitated brand for phishing scams in Q2-2023, according to a report by cybersecurity firm CheckPoint Research. In a brand phishing attack, cyber criminals try to imitate the official website of a well-known brand by using a similar domain name or URL and a web-page design that resembles the genuine site. These attacks can be delivered through emails, text messages, or fraudulent mobile applications. The fake website often contains a form intended to steal users’ credentials, payment details or other personal information. During the April-June quarter, Microsoft, the global technology giant, claimed the top spot with a staggering 29% of all brand phishing attempts during Q2. The tech firm previously held the third position in the first quarter of the year. Google secured the second position, accounting for 19.5% of brand phishing attempts. Meanwhile, Apple made its debut on the list, featuring in 5.2% of phishing events during the last quarter. The technology sector itself was the most impersonated industry, followed closely by banking and social media networks. For example, American banking organization Wells Fargo took fourth place this quarter due to a series of malicious emails requesting account information. Other notable brands impersonated in phishing attempts include Amazon, Walmart, Roblox, LinkedIn, Home Depot, and Facebook. Microsoft has made it to the list for the past several years now as one of the most imitated brand for phishing. A report released by Checkpoint researchers in 2020 found that the prevalence of malicious MS Office documents accounted for 43% of all malware downloads that year. During the third quarter of that year, approximately 38% of all downloadable malware was discovered concealed within Microsoft Office documents, the researchers said.
Top 5 AI announcements at Microsoft Inspire 2023
Launch of Microsoft 365 Copilot pricing for $30
Microsoft announced pricing for Microsoft 365 Copilot, which the company said, will be available for $30 per user per month for Microsoft 365 E3, E5, Business Standard and Business Premium customers.
New Bing Chat Enterprise offers better privacy for businesses
Microsoft announced the expansion of Bing Chat, through the launch of Bing Chat Enterprise, which is a work-specific version of the company’s AI-powered chat feature that it launched in February. The offering allows users to ask questions and receive answers from GPT-4, the OpenAI Large Language Model (LLM) that Microsoft has invested heavily in since the end of 2022.
Microsoft adds sales-related AI capabilities
Microsoft added a new generative AI assistant, dubbed Sales Copilot that is designed for sellers and can be accessed via tools including Outlook, Teams, and Dynamics 365 Sales.
Meta and Microsoft partnership
Meta and Microsoft have announced support for the Llama family of large language models on Azure and Windows. The Meta AI model, dubbed Llama 2, will be free and available to developers building software on Microsoft’s Azure cloud-computing platform, the companies said.
$100 mn investment into partner AI innovation and more
At Inspire 2023, Microsoft announced a $100 million investment in analytics and AI to help partners incorporate AI solutions into applications, generate insights from analytics, and build custom cloud-native applications with AI capabilities.
Online gaming tax raised to 28% on net revenue, industry expresses shock
The 50th meeting of the Goods and Services Tax (GST) Council, held on Tuesday, decided to tax online gaming companies in India at 28% of their gross revenue, or full face value of transactions and entry fees paid by gamers—putting to end months of efforts from the online gaming industry urging the Centre to tax the sector on their net earnings, and not net revenue. So far, online gaming companies paid 18% GST on their net earnings. Alongside the new tax regime, Union Finance Minister Nirmala Sitharaman said at the post-meet press conference that online gaming services “are not actionable claims”. The taxation verdict could be a major setback for the online gaming industry. Industry regulators and stakeholders expressed shock, stating that such taxation could risk making online gaming businesses unviable in India. “Most online gaming ventures in the country, including the ones that have scaled up, do not have an operating margin of more than 7-10%. Imposing a tax liability of 28% on total revenue would leave them with a tax quantum of potentially 3x of what they earn, and exponentially higher than the tax that they currently pay. This is practically impossible for the industry to pay,” said a senior policy advisor to online gaming companies under condition of anonymity.
Five generative AI strategies for CIOs
A report published by consulting firm McKinsey estimated that generative AI could add the equivalent of $2.6 tr to $4.4 tr of value annually for enterprises. McKinsey researchers listed out some ways in which CIOs can harness the power of generative AI to achieve competitive advantage, enhance operational efficiency, and drive digital transformation.
Identifying the right use cases
CIO/CTOs should identify the most valuable opportunities and issues across the company that can benefit from generative AI and those that are not.
Reviewing gen AI’s potential impact on all areas of tech
McKinsey research shows generative AI coding support can help software engineers develop code 35% to 45%, and perform code documentation up to 50% faster.
Upgrading the tech architecture
Organizations can use many generative AI models of varying size, complexity, and capability.
Investing in upskilling programs by roles and proficiency levels
Generative AI has the potential to massively lift employees’ productivity and augment their capabilities. Highly skilled developers saw gains of up to 50% to 80%, while junior developers experienced a 7% to 10% decline in speed.
Evaluate the new risk landscape
Researchers noted that generative AI presents a fresh set of ethical questions and risks, including “hallucinations,” whereby the generative AI model presents an incorrect response based on the highest-probability response; the accidental release of confidential personally identifiable information; inherent bias in the large data sets the models use; and high degrees of uncertainty related to intellectual property (IP).
According to McKinsey researchers, CIOs and CTOs will need to become fluent in ethics, humanitarian, and compliance issues.
Google Tests AI Tool That Can Write News
Google is testing a product that uses artificial intelligence technology to produce news stories, pitching it to news organizations including The New York Times, The Washington Post and The Wall Street Journal’s owner, News Corp, according to three people familiar with the matter. The tool, known internally by the working title Genesis, can take in information — details of current events, for example — and generate news copy, the people said, speaking on the condition of anonymity to discuss the product. One of the three people familiar with the product said that Google believed it could serve as a kind of personal assistant for journalists, automating some tasks to free up time for others, and that the company saw it as responsible technology that could help steer the publishing industry away from the pitfalls of generative AI.
India Inc Likely to ‘Ad’ 20-25% to its H2 Spends
Advertising & consumer promotion is expected to rise 20-25% year-on-year in the second half of 2023, spurred by factors such as the Cricket World Cup, a rainy summer that has led companies to postpone ad spends, and the festive season. Spending is expected to be led by sectors such as ecommerce, fast moving consumer goods (FMCG), travel and hospitality, apparel and fashion, fintech, banking, retail and automobiles, they said. “We see a very big season for advertising starting September, much higher than the previous year,” said Sam Balsara, chairman of Madison World. “The World Cup will be played in India, on prime time, and it coincides with the Diwali season.” Madison World represents the likes of Asian Paints, Raymond, Titan, TVS Motor and Marico. Executives said launches that were postponed — either because of unseasonal rains or inflationary pressures — in January-June would make a comeback in the second half of the year. “Cricket alone has three big events — Asia Cup, Australia’s tour of India and the World Cup. Over and above (this), new general entertainment shows and fresh seasons of reality shows are lined up in the second half of this year,” said Vinit Karnik, head (sports, esports and entertainment) at the WPP-backed GroupM South Asia. “All of this in the festive season is very attractive for advertisers to reach out to their target consumers. 2023. Consumers continued to spend in May but at a slower pace, a sign that the economy may be starting to slow. The (second half) of the calendar year has huge potential and is expected to see significant growth in terms of ad spends,” said Karnik. Earlier this month, he said the second half of the year would see a lot more advertising spend and consumer connect since the summer had been challenging Dabur, too, recently said it expects higher advertising intensity forecast in the year’s second half since input costs such as crude and palm oil had declined in the past three months. However, the 28% goods and services tax (GST) levied last week on online gaming companies — which usually spend extensively on live events — would impact their ad purse, said a senior executive at a gaming company. In a February report, GroupM forecast that India’s advertising expenditure will increase by Rs 20,000 crore in 2023, a 15.5% increase year-on-year, driven by the expansion of 5G services beyond major metros, and affordable smartphones, among other triggers.
Indian Online B2B Markets Set to be a $200b Opportunity by 2030
Bessemer Venture Partners has estimated the online-first and technology-enabled business-to-business marketplaces category of startups to become a $200 BN market opportunity by 2030. The growth is currently driven by four factors — increased digital adoption, mature digital infrastructure, favourable regulatory policies and a conducive cross-border environment. According to the report, the examples of the key drivers include ecommerce, logistics and payments systems such as Unified Payments Interface (UPI), Open Network for Digital Commerce (ONDC), Account Aggregators, and Open Credit Enablement Network (OCEN). Other examples include regulatory frameworks around Goods and Services Tax (GST), Trade Receivables Discounting System (TReDS) and Production Linked Incentive (PLI) for manufacturing, the report added. “Any business that functions as an agency today and is serving other businesses is an opportunity to create an internet- and online-led B2B marketplace and services,” Anant Vidur Puri, partner. While the B2B portion of the economy is estimated at $2.5 Tr in 2023, the report shows that the penetration of ecommerce in this segment is just 1%, far behind the United States, which is at 18%, United Kingdom at 20% and China at 25%. Further, BVP identified three kinds of opportunities emerging in the B2B marketplaces domain – product marketplaces, service marketplaces, and marketplace infrastructure startups. On the products side, solutions comprise full-stack online marketplaces that connect buyers and sellers of physical goods while also providing relevant services such as assortment, quality assurance and logistics. Examples here included Fashinza, Moglix, Zetwerk, DeHaat, Infra.market and PharmEasy. The services marketplaces connect businesses with service providers such as freelancers, consultants and agencies, and operate in verticals like marketing and sales, information technology, recruitment and human resources, industrial, among others. Examples here included PepperContent, One Impression and Expertrons. Marketplace infrastructure are technology platforms and tools in payments, logistics, warehousing, among other areas. that enable companies to build, assist and operate B2B marketplaces. Examples here included Rupifi, Freight Tiger, ElasticRun and Shiprocket.
Race Towards ‘Autonomous’ AI Agents Grips Silicon Valley
Around a decade after virtual assistants like Siri and Alexa burst onto the scene, a new wave of AI helpers with greater autonomy is raising the stakes, powered by the latest version of the technology behind ChatGPT and its rivals. Experimental systems that run on GPT4 or similar models are attracting billions of dollars of investment as Silicon Valley competes to capitalize on the advances in AI. The new assistants — often called ‘agents’ or ‘copilots’ — promise to perform more complex personal and work tasks when commanded to by a human, without needing close supervision. “High level, we want this to become something like your personal AI friend,” said developer Div Garg, whose company MultiOn is beta-testing an AI agent. The industry is still far from emulating science fiction’s dazzling digital assistants. “Lots of what’s easy for people is still incredibly hard for computers,” said Kanjun Qiu, CEO of Generally Intelligent, an OpenAI competitor creating AI for agents. The new technology has triggered a rush towards assistants powered by so-called foundation models including GPT-4, Sweeping up individual developers, big-hitters like Microsoft and Google parent Alphabet plus a host of startups. Many scientists have pointed out near-term harm that could come from the perpetuation of human biases and the potential for misinformation. And while some see a future Jarvis, others fear the murderous HAL 9000 from “2001: A Space Odyssey”.
Meta may release a ‘commercial version’ of its language model for businesses
Meta and Microsoft have teamed up to unveil Llama 2, a next-generation large language (very generalized) AI model intended for both commercial and research purposes. The upgraded open source code places a greater emphasis on responsibility. Developers “red-teamed” models (that is, tested them for safety) and created a transparency schematic to detail potential issues. They also include a responsible use guide, and there’s an acceptable use policy to prevent abuses like criminal activity, misleading representations and spam. Meta is releasing both pre-trained and conversation-oriented versions of Llama 2 for free. Microsoft is making it available through the Azure AI catalog to use with cloud tools, such as content filtering. The tool can also run directly on Windows PCs, and will be available through outside providers like Amazon Web Services and Hugging Face. The original AI model was open source, but intended strictly for academics and researchers. Llama 2 lets companies customize the technology for their own purposes, such as chatbots and image generators.