Archiv der Kategorie: Disruption

Why robots will soon be picking soft fruits and salad

London (CNN Business)

It takes a certain nimbleness to pick a strawberry or a salad. While crops like wheat and potatoes have been harvested mechanically for decades, many fruits and vegetables have proved resistant to automation. They are too easily bruised, or too hard for heavy farm machinery to locate.

But recently, technological developments and advances in machine learning have led to successful trials of more sensitive and dexterous robots, which use cameras and artificial intelligence to locate ripe fruit and handle it with care and precision.
Developed by engineers at the University of Cambridge, the Vegebot is the first robot that can identify and harvest iceberg lettuce — bringing hope to farmers that one of the most demanding crops for human pickers could finally be automated.
First, a camera scans the lettuce and, with the help of a machine learning algorithm trained on more than a thousand lettuce images, decides if it is ready for harvest. Then a second camera guides the picking cage on top of the plant without crushing it. Sensors feel when it is in the right position, and compressed air drives a blade through the stalk at a high force to get a clean cut.
The Vegebot uses machine learning to identify ripe, immature and diseased lettuce heads

Its success rate is high, with 91% of the crop accurately classified, according to a study published in July. But the robot is still much slower than humans, taking 31 seconds on average to pick one lettuce. Researchers say this could easily be sped up by using lighter materials.
Such adjustments would need to be made if the robot was used commercially. „Our goal was to prove you can do it, and we’ve done it,“ Simon Birrell, co-author of the study, tells CNN Business. „Now it depends on somebody taking the baton and running forward,“ he says.

More mouths to feed, but less manual labor

With the world’s population expected to climb to 9.7 billion in 2050 from 7.7 billion today — meaning roughly 80 million more mouths to feed each year — agriculture is under pressure to meet rising demand for food production.
Added pressures from climate change, such as extreme weather, shrinking agricultural lands and the depletion of natural resources, make innovation and efficiency all the more urgent.
This is one reason behind the industry’s drive to develop robotics. The global market for agricultural drones and robots is projected to grow from $2.5 billion in 2018 to $23 billion in 2028, according to a report from market intelligence firm BIS Research.
„Agriculture robots are expected to have a higher operating speed and accuracy than traditional agriculture machinery, which shall lead to significant improvements in production efficiency,“ Rakhi Tanwar, principal analyst of BIS Research, tells CNN Business.
Fruit picking robots like this one, developed by Fieldwork Robotics, operate for more than 20 hours a day

On top of this, growers are facing a long-term labor shortage. According to the World Bank, the share of total employment in agriculture in the world has declined from 43% in 1991 to 28% in 2018.
Tanwar says this is partly due to a lack of interest from younger generations. „The development of robotics in agriculture could lead to a massive relief to the growers who suffer from economic losses due to labor shortage,“ she says.
Robots can work all day and night, without stopping for breaks, and could be particularly useful during intense harvest periods.
„The main benefit is durability,“ says Martin Stoelen, a lecturer in robotics at the University of Plymouth and founder of Fieldwork Robotics, which has developed a raspberry-picking robot in partnership with Hall Hunter, one of the UK’s major berry growers.
Their robots, expected to go into production next year, will operate more than 20 hours a day and seven days a week during busy periods, „which human pickers obviously can’t do,“ says Stoelen.
Octinion's robot picks one strawberry every five seconds

Sustainable farming and food waste

Robots could also lead to more sustainable farming practices. They could enable growers to use less water, less fuel, and fewer pesticides, as well as producing less waste, says Tanwar.
At the moment, a field is typically harvested once, and any unripe fruits or vegetables are left to rot. Whereas, a robot could be trained to pick only ripe vegetables and, working around the clock, it could come back to the same field multiple times to pick any stragglers.
Birrell says that this will be the most important impact of robot pickers. „Right now, between a quarter and a third of food just rots in the field, and this is often because you don’t have humans ready at the right time to pick them,“ he says.
A successful example of this is the strawberry-picking robot developed by Octinion, a Belgium-based engineering startup.
The robot — which launched this year and is being used by growers in the UK and the Netherlands — is mounted on a self-driving trolley to serve table top strawberry production.
It uses 3D vision to locate the ripe berry, softly grips it with a pair of plastic pincers, and — just like a human — turns it 90 degrees to snap it from the stalk, before dropping it gently into a punnet.
„Robotics have the potential to convert the market from (being) supply-driven to demand-driven,“ says Tom Coen, CEO and founder of Octinion. „That will then help to reduce food waste and increase prices,“ he adds.

Harsh conditions

One major challenge with agricultural robots is adapting them for all-weather conditions. Farm machinery tends to be heavy-duty so that it can withstand rain, snow, mud, dust and heat.
„Building robots for agriculture is very different to building it for factories,“ says Birrell. „Until you’re out in the field, you don’t realize how robust it needs to be — it gets banged and crashed, you go over uneven surfaces, you get rained on, you get dust, you get lightning bolts.“
California-based Abundant Robotics has built an apple robot to endure the full range of farm conditions. It consists of an apple-sucking tube on a tractor-like contraption, which drives itself down an orchard row, while using computer vision to locate ripe fruit.
This spells the start of automation for orchard crops, says Dan Steere, CEO of Abundant Robotics. „Automation has steadily improved agricultural productivity for centuries,“ he says. „[We] have missed out on much of those benefits until now.“

What Proroguing UK Parliament means to Brexit – UK Parliament Suspension

Source: https://edition.cnn.com/2019/08/28/uk/uk-parliament-suspension-what-it-means-for-brexit-gbr-intl/index.html

 

the combination of repressive regimes with IT monopolies endows those regimes with a built-in advantage over open societies

Source: https://www.wired.com/story/mortal-danger-chinas-push-into-ai/

Governments and companies worldwide are investing heavily in artificial intelligence in hopes of new profits, smarter gadgets, and better health care. Financier and philanthropist George Soros told the World Economic Forum in Davos Thursday that the technology may also undermine free societies and create a new era of authoritarianism.

“I want to call attention to the mortal danger facing open societies from the instruments of control that machine learning and artificial intelligence can put in the hands of repressive regimes,” Soros said. He made an example of China, repeatedly calling out the country’s president, Xi Jinping.

China’s government issued a broad AI strategy in 2017, asserting that it would surpass US prowess in the technology by 2030. As in the US, much of the leading work on AI in China takes place inside a handful of large tech companies, such as search engine Baidu and retailer and payments company Alibaba.

Soros argued that AI-centric tech companies like those can become enablers of authoritarianism. He pointed to China’s developing “social credit” system, aimed at tracking citizens’ reputations by logging financial activity, online interactions, and even energy use, among other things. The system is still taking shape, but depends on data and cooperation from companies like payments firm Ant Financial, a spinout of Alibaba. “The social credit system, if it became operational, would give Xi Jinping total control over the people,” Soros said.

Soros argued that synergy like that between corporate and government AI projects creates a more potent threat than was posed by Cold War–era autocrats, many of whom spurned corporate innovation. “The combination of repressive regimes with IT monopolies endows those regimes with a built-in advantage over open societies,” Soros said. “They pose a mortal threat to open societies.”

Soros is far from the first to raise an alarm about the dangers of AI technology. It’s a favorite topic of Elon Musk, and last year Henry Kissinger called for a US government commission to examine the technology’s risks. Google cofounder Sergey Brin warned in Alphabet’s most recent annual shareholder letter that AI technology had downsides, including the potential to manipulate people. Canada and France plan to establish an intergovernmental group to study how AI changes societies.

The financier attempted to draft Donald Trump into his AI vigilance campaign. He advised the president to be tougher on Chinese telecoms manufacturers ZTE and Huawei, to prevent them from dominating the high-bandwidth 5G mobile networks being built around the world. Both companies are already reeling from sanctions by the US and other governments.

Soros also urged the well-heeled attendees of Davos to help forge international mechanisms to prevent AI-enhanced authoritarianism—and that could both include and contain China. He asked them to imagine a technologically oriented version of the treaty signed after World War II that underpins the United Nations, binding countries into common standards for human rights and freedoms.

Here is the text of Soros’s speech:

I want to use my time tonight to warn the world about an unprecedented danger that’s threatening the very survival of open societies.

Last year when I stood before you I spent most of my time analyzing the nefarious role of the IT monopolies. This is what I said: “An alliance is emerging between authoritarian states and the large data rich IT monopolies that bring together nascent systems of corporate surveillance with an already developing system of state sponsored surveillance. This may well result in a web of totalitarian control the likes of which not even George Orwell could have imagined.”

Tonight I want to call attention to the mortal danger facing open societies from the instruments of control that machine learning and artificial intelligence can put in the hands of repressive regimes. I’ll focus on China, where Xi Jinping wants a one-party state to reign supreme.

A lot of things have happened since last year and I’ve learned a lot about the shape that totalitarian control is going to take in China.

All the rapidly expanding information available about a person is going to be consolidated in a centralized database to create a “social credit system.” Based on that data, people will be evaluated by algorithms that will determine whether they pose a threat to the one-party state. People will then be treated accordingly.

The social credit system is not yet fully operational, but it’s clear where it’s heading. It will subordinate the fate of the individual to the interests of the one-party state in ways unprecedented in history.

I find the social credit system frightening and abhorrent. Unfortunately, some Chinese find it rather attractive because it provides information and services that aren’t currently available and can also protect law-abiding citizens against enemies of the state.

China isn’t the only authoritarian regime in the world, but it’s undoubtedly the wealthiest, strongest and most developed in machine learning and artificial intelligence. This makes Xi Jinping the most dangerous opponent of those who believe in the concept of open society. But Xi isn’t alone. Authoritarian regimes are proliferating all over the world and if they succeed, they will become totalitarian.

As the founder of the Open Society Foundations, I’ve devoted my life to fighting totalizing, extremist ideologies, which falsely claim that the ends justify the means. I believe that the desire of people for freedom can’t be repressed forever. But I also recognize that open societies are profoundly endangered at present.

What I find particularly disturbing is that the instruments of control developed by artificial intelligence give an inherent advantage to authoritarian regimes over open societies. For them, instruments of control provide a useful tool; for open societies, they pose a mortal threat.

I use “open society” as shorthand for a society in which the rule of law prevails as opposed to rule by a single individual and where the role of the state is to protect human rights and individual freedom. In my personal view, an open society should pay special attention to those who suffer from discrimination or social exclusion and those who can’t defend themselves.

By contrast, authoritarian regimes use whatever instruments of control they possess to maintain themselves in power at the expense of those whom they exploit and suppress.

How can open societies be protected if these new technologies give authoritarian regimes a built-in advantage? That’s the question that preoccupies me. And it should also preoccupy all those who prefer to live in an open society.

Open societies need to regulate companies that produce instruments of control, while authoritarian regimes can declare them “national champions.” That’s what has enabled some Chinese state-owned companies to catch up with and even surpass the multinational giants.

This, of course, isn’t the only problem that should concern us today. For instance, man-made climate change threatens the very survival of our civilization. But the structural disadvantage that confronts open societies is a problem which has preoccupied me and I’d like to share with you my ideas on how to deal with it.

My deep concern for this issue arises out of my personal history. I was born in Hungary in 1930 and I’m Jewish. I was 13 years old when the Nazis occupied Hungary and started deporting Jews to extermination camps.

I was very fortunate because my father understood the nature of the Nazi regime and arranged false identity papers and hiding places for all members of his family, and for a number of other Jews as well. Most of us survived.

The year 1944 was the formative experience of my life. I learned at an early age how important it is what kind of political regime prevails. When the Nazi regime was replaced by Soviet occupation I left Hungary as soon as I could and found refuge in England.

At the London School of Economics I developed my conceptual framework under the influence of my mentor, Karl Popper. That framework proved to be unexpectedly useful when I found myself a job in the financial markets. The framework had nothing to do with finance, but it is based on critical thinking. This allowed me to analyze the deficiencies of the prevailing theories guiding institutional investors. I became a successful hedge fund manager and I prided myself on being the best paid critic in the world.

Running a hedge fund was very stressful. When I had made more money than I needed for myself or my family, I underwent a kind of midlife crisis. Why should I kill myself to make more money? I reflected long and hard on what I really cared about and in 1979 I set up the Open Society Fund. I defined its objectives as helping to open up closed societies, reducing the deficiencies of open societies and promoting critical thinking.

My first efforts were directed at undermining the apartheid system in South Africa. Then I turned my attention to opening up the Soviet system. I set up a joint venture with the Hungarian Academy of Science, which was under Communist control, but its representatives secretly sympathized with my efforts. This arrangement succeeded beyond my wildest dreams. I got hooked on what I like to call “political philanthropy.” That was in 1984.

In the years that followed, I tried to replicate my success in Hungary and in other Communist countries. I did rather well in the Soviet empire, including the Soviet Union itself, but in China it was a different story.

My first effort in China looked rather promising. It involved an exchange of visits between Hungarian economists who were greatly admired in the Communist world, and a team from a newly established Chinese think tank which was eager to learn from the Hungarians.

Based on that initial success, I proposed to Chen Yizi, the leader of the think tank, to replicate the Hungarian model in China. Chen obtained the support of Premier Zhao Ziyang and his reform-minded policy secretary Bao Tong.

A joint venture called the China Fund was inaugurated in October 1986. It was an institution unlike any other in China. On paper, it had complete autonomy.

Bao Tong was its champion. But the opponents of radical reforms, who were numerous, banded together to attack him. They claimed that I was a CIA agent and asked the internal security agency to investigate. To protect himself, Zhao Ziyang replaced Chen Yizi with a high-ranking official in the external security police. The two organizations were co-equal and they couldn’t interfere in each other’s affairs.

I approved this change because I was annoyed with Chen Yizi for awarding too many grants to members of his own institute and I was unaware of the political infighting behind the scenes. But applicants to the China Fund soon noticed that the organization had come under the control of the political police and started to stay away. Nobody had the courage to explain to me the reason for it.

Eventually, a Chinese grantee visited me in New York and told me, at considerable risk to himself. Soon thereafter, Zhao Ziyang was removed from power and I used that excuse to close the foundation. This happened just before the Tiananmen Square massacre in 1989 and it left a “black spot” on the record of the people associated with the foundation. They went to great length to clear their names and eventually they succeeded.

In retrospect, it’s clear that I made a mistake in trying to establish a foundation which operated in ways that were alien to people in China. At that time, giving a grant created a sense of mutual obligation between the donor and recipient and obliged both of them to remain loyal to each other forever.

So much for history. Let me now turn to the events that occurred in the last year, some of which surprised me.

When I first started going to China, I met many people in positions of power who were fervent believers in the principles of open society. In their youth they had been deported to the countryside to be re-educated, often suffering hardships far greater than mine in Hungary. But they survived and we had much in common. We had all been on the receiving end of a dictatorship.

They were eager to learn about Karl Popper’s thoughts on the open society. While they found the concept very appealing, their interpretation remained somewhat different from mine. They were familiar with Confucian tradition, but there was no tradition of voting in China. Their thinking remained hierarchical and carried a built-in respect for high office. I, on the other hand I was more egalitarian and wanted everyone to have a vote.

So, I wasn’t surprised when Xi Jinping ran into serious opposition at home; but I was surprised by the form it took. At last summer’s leadership convocation at the seaside resort of Beidaihe, Xi Jinping was apparently taken down a peg or two. Although there was no official communique, rumor had it that the convocation disapproved of the abolition of term limits and the cult of personality that Xi had built around himself.

It’s important to realize that such criticisms were only a warning to Xi about his excesses, but did not reverse the lifting of the two-term limit. Moreover, “The Thought of Xi Jinping,” which he promoted as his distillation of Communist theory was elevated to the same level as the “Thought of Chairman Mao.” So Xi remains the supreme leader, possibly for lifetime. The ultimate outcome of the current political infighting remains unresolved.

I’ve been concentrating on China, but open societies have many more enemies, Putin’s Russia foremost among them. And the most dangerous scenario is when these enemies conspire with, and learn from, each other on how to better oppress their people.

The question poses itself, what can we do to stop them?

The first step is to recognize the danger. That’s why I’m speaking out tonight. But now comes the difficult part. Those of us who want to preserve the open society must work together and form an effective alliance. We have a task that can’t be left to governments.

History has shown that even governments that want to protect individual freedom have many other interests and they also give precedence to the freedom of their own citizens over the freedom of the individual as a general principle.

My Open Society Foundations are dedicated to protecting human rights, especially for those who don’t have a government defending them. When we started four decades ago there were many governments which supported our efforts but their ranks have thinned out. The US and Europe were our strongest allies, but now they’re preoccupied with their own problems.

Therefore, I want to focus on what I consider the most important question for open societies: what will happen in China?

The question can be answered only by the Chinese people. All we can do is to draw a sharp distinction between them and Xi Jinping. Since Xi has declared his hostility to open society, the Chinese people remain our main source of hope.

And there are, in fact, grounds for hope. As some China experts have explained to me, there is a Confucian tradition, according to which advisors of the emperor are expected to speak out when they strongly disagree with one of his actions or decrees, even that may result in exile or execution.

This came as a great relief to me when I had been on the verge of despair. The committed defenders of open society in China, who are around my age, have mostly retired and their places have been taken by younger people who are dependent on Xi Jinping for promotion. But a new political elite has emerged that is willing to uphold the Confucian tradition. This means that Xi will continue to have a political opposition at home.

Xi presents China as a role model for other countries to emulate, but he’s facing criticism not only at home but also abroad. His Belt and Road Initiative has been in operation long enough to reveal its deficiencies.

It was designed to promote the interests of China, not the interests of the recipient countries; its ambitious infrastructure projects were mainly financed by loans, not by grants, and foreign officials were often bribed to accept them. Many of these projects proved to be uneconomic.

The iconic case is in Sri Lanka. China built a port that serves its strategic interests. It failed to attract sufficient commercial traffic to service the debt and enabled China to take possession of the port. There are several similar cases elsewhere and they’re causing widespread resentment.

Malaysia is leading the pushback. The previous government headed by Najib Razak sold out to China but in May 2018 Razak was voted out of office by a coalition led by Mahathir Mohamed. Mahathir immediately stopped several big infrastructure projects and is currently negotiating with China how much compensation Malaysia will still have to pay.

The situation is not as clear-cut in Pakistan, which has been the largest recipient of Chinese investments. The Pakistani army is fully beholden to China but the position of Imran Khan who became prime minister last August is more ambivalent. At the beginning of 2018, China and Pakistan announced grandiose plans in military cooperation. By the end of the year, Pakistan was in a deep financial crisis. But one thing became evident: China intends to use the Belt and Road Initiative for military purposes as well.

All these setbacks have forced Xi Jinping to modify his attitude toward the Belt and Road Initiative. In September, he announced that “vanity projects” will be shunned in favor of more carefully conceived initiatives and in October, the People’s Daily warned that projects should serve the interests of the recipient countries.

Customers are now forewarned and several of them, ranging from Sierra Leone to Ecuador, are questioning or renegotiating projects.

Most importantly, the US government has now identified China as a “strategic rival.” President Trump is notoriously unpredictable, but this decision was the result of a carefully prepared plan. Since then, the idiosyncratic behavior of Trump has been largely superseded by a China policy adopted by the agencies of the administration and overseen by Asian affairs advisor of the National Security Council Matt Pottinger and others. The policy was outlined in a seminal speech by Vice President Mike Pence on October 4th.

Even so, declaring China a strategic rival is too simplistic. China is an important global actor. An effective policy towards China can’t be reduced to a slogan.

It needs to be far more sophisticated, detailed and practical; and it must include an American economic response to the Belt and Road Initiative. The Pottinger plan doesn’t answer the question whether its ultimate goal is to level the playing field or to disengage from China altogether.

Xi Jinping fully understood the threat that the new US policy posed for his leadership. He gambled on a personal meeting with President Trump at the G20 meeting in Buenos Aires. In the meantime, the danger of global trade war escalated and the stock market embarked on a serious sell-off in December. This created problems for Trump who had concentrated all his efforts on the 2018 midterm elections. When Trump and Xi met, both sides were eager for a deal. No wonder that they reached one, but it’s very inconclusive: a ninety-day truce.

In the meantime, there are clear indications that a broad based economic decline is in the making in China, which is affecting the rest of the world. A global slowdown is the last thing the market wants to see.

The unspoken social contract in China is built on steadily rising living standards. If the decline in the Chinese economy and stock market is severe enough, this social contract may be undermined and even the business community may turn against Xi Jinping. Such a downturn could also sound the death knell of the Belt and Road Initiative, because Xi may run out of resources to continue financing so many lossmaking investments.

On the question of global internet governance, there’s an undeclared struggle between the West and China. China wants to dictate rules and procedures that govern the digital economy by dominating the developing world with its new platforms and technologies. This is a threat to the freedom of the Internet and indirectly open society itself.

Last year I still believed that China ought to be more deeply embedded in the institutions of global governance, but since then Xi Jinping’s behavior has changed my opinion. My present view is that instead of waging a trade war with practically the whole world, the US should focus on China. Instead of letting ZTE and Huawei off lightly, it needs to crack down on them. If these companies came to dominate the 5G market, they would present an unacceptable security risk for the rest of the world.

Regrettably, President Trump seems to be following a different course: make concessions to China and declare victory while renewing his attacks on US allies. This is liable to undermine the US policy objective of curbing China’s abuses and excesses.

To conclude, let me summarize the message I’m delivering tonight. My key point is that the combination of repressive regimes with IT monopolies endows those regimes with a built-in advantage over open societies. The instruments of control are useful tools in the hands of authoritarian regimes, but they pose a mortal threat to open societies.

China is not the only authoritarian regime in the world but it is the wealthiest, strongest and technologically most advanced. This makes Xi Jinping the most dangerous opponent of open societies. That’s why it’s so important to distinguish Xi Jinping’s policies from the aspirations of the Chinese people. The social credit system, if it became operational, would give Xi total control over the people. Since Xi is the most dangerous enemy of the open society, we must pin our hopes on the Chinese people, and especially on the business community and a political elite willing to uphold the Confucian tradition.

This doesn’t mean that those of us who believe in the open society should remain passive. The reality is that we are in a Cold War that threatens to turn into a hot one. On the other hand, if Xi and Trump were no longer in power, an opportunity would present itself to develop greater cooperation between the two cyber-superpowers.

It is possible to dream of something similar to the United Nations Treaty that arose out of the Second World War. This would be the appropriate ending to the current cycle of conflict between the US and China. It would reestablish international cooperation and allow open societies to flourish. That sums up my message.

What gaming will look like in 10 years

What gaming will look like in a year or two, let alone 10, is a matter of some debate. Battle-royale games have reshaped multiplayer experiences; augmented reality marries the fantastic and real in unprecedented ways. Google is leading a charge away from traditional consoles by launching a cloud-gaming service, Stadia, later this year. Microsoft’s next version of the Xbox will presumably integrate cloud gaming as well to allow people to play Xbox games on multiple devices. Sony’s plans in this regard are still unclear—it’s one of the many things Cerny is keeping mum on, saying only that “we are cloud-gaming pioneers, and our vision should become clear as we head toward launch”—but it’s hard to think there won’t be more news coming on that front.

For now, there’s the living room. It’s where the PlayStation has sat through four generations—and will continue to sit at least one generation more.

https://www.wired.com/story/exclusive-sony-next-gen-console/

Apple will be around for a long time. But the next Apple just isn’t Apple.

Apple, the iPhone, and the Innovator’s Dilemma

David Paul Morris/Bloomberg/Getty Images

If you re-read the first few chapters of The Innovator’s Dilemma and you insert “Apple” every time Clayton Christensen mentions “a company,” a certain picture emerges: Apple is a company on the verge of being disrupted, and the next great idea in tech and consumer electronics will not materialize from within the walls of its Cupertino spaceship.

The Innovator’s Dilemma, of course, is about the trap that successful companies fall into time and time again. They’re well managed, they’re responsive to their customers, and they’re market leaders. And yet, despite doing everything right, they fail to see the next wave of innovation coming, they get disrupted, and they ultimately fail.

In the case of Apple, the company is trapped by its success, and that success is spelled “iPhone.”

Take, for example, Christensen’s description of the principles of good management that inevitably lead to the downfall of successful companies: “that you should always listen to and respond to the needs of your best customers, and that you should focus investments on those innovations that promise the highest returns.”

Molly Wood (@mollywood) is an Ideas contributor at WIRED and the host and senior editor of Marketplace Tech, a daily national radio broadcast covering the business of technology. She has covered the tech industry at CNET, The New York Times, and in various print, television, digital and audio formats for nearly 20 years. (Ouch.)

Then think about the iPhone, which, despite some consumer-unfriendly advances like the lost headphone jack and ever-changing charging ports, has also been adjusted and tweaked and frozen by what customers want: bigger screens, great cameras, ease of use, and a consistent interface. And the bulk of Apple’s investment since 2007, when the iPhone came out, has been about maintaining, developing, and selling this one device.

In the last quarter of 2018, the iPhone accounted for $51 billion of Apple’s $84 billion in revenue. Its success, the economic halo around it, and its seeming invincibility since its launch have propelled Apple to heights few companies have ever imagined. But the device will also be its undoing.

Here’s what happens when you have a product that successful: You get comfortable. More accurately, you get protective. You don’t want to try anything new. The new things you do try have to be justified in the context of that precious jewel—the “core product.”

So even something like Apple’s Services segment—the brightest non-iPhone spot in its earnings lately—mostly consists of services that benefit the iPhone. It’s Apple Music, iTunes, iCloud—and although Apple doesn’t break out its numbers, the best estimate is that a third or more of its Services revenue is driven by the 30 percent cut it takes from … yep, apps downloaded from the App Store.

The other bright spot in the company’s latest earnings report is its Wearables, Home, and Accessories category. Here again, Apple doesn’t break out the numbers, but the wearables part of that segment is where all the growth is, and that means Apple Watches. And you know what’s still tied nice and tight to the iPhone? Apple Watches.

Even Apple’s best-selling accessories are most likely AirPods, which had a meme-tastic holiday season and are, safe to say, used mostly in conjunction with iPhones. (I’d bet the rest of the accessories dollars are coming from dongles and hubs, since there’s nary a port to be found on any of its new MacBooks.) As for stand-alones, its smart speakers are reportedly great, but they’re not putting a dent in Amazon or Google, by latest count. Apple TV, sure. Fine. But Roku shouldn’t have been embedded in a TV before Apple was.

And none of these efforts count as a serious attempt at diversification.

You may be tempted to argue that Apple is, in fact, working on other projects. The Apple acquisition rumors never cease; nor do the confident statements that the company definitely, absolutely, certainly has a magical innovation in the works that will spring full grown like Athena from the forehead of Zeus any day now. I’m here to say, I don’t think there’s a nascent warrior goddess hiding in there.

Witness Apple’s tottering half-steps into new markets that are unrelated to the iPhone: It was early with a voice assistant but has stalled behind Amazon and even Google Assistant. It wasn’t until last year that the company hired a bona fide machine-learning expert in John Giannandrea, former head of search and AI at Google—and he didn’t get put on the executive team until December 2018. That’s late.

There’s its half-hearted dabble in self-driving technology that was going to be a car, then became software, then became 200 people laid off. Its quailing decade-long attempt to build a streaming service would be sort of comical if there weren’t clearly so much money being thrown around, and so tentatively at that. Rumors of its launch go back as far as 2015, although now it’s supposed to launch in April—this time they mean it.

But even if the streaming service actually arrives, can it really compete against YouTube, PlayStation, Sling, DirecTV, Hulu, and just plain old Netflix? Apple’s original programming is also apparently “not coming as soon as you think.” Analysts are, at this point, outright begging Apple to buy a studio or other original content provider, just to have something to show against Netflix and Amazon originals.

Of course, lots of companies innovate through acquisition, and everyone loves to speculate about what companies Apple might buy. Rumors have ranged from GoPro to BlackBerry to Tesla to the chipmaker ARM. Maybe Netflix. Maybe Tesla. Maybe Disney. Maybe Wired. (Apple News is a hugely successful product … mostly on iPhones, of course.) But at every turn, Apple has declined to move, other than its $3 billion Beats buy in 2014 (which it appears to be abandoning, or cannibalizing, these days).

Now, let me be clear, once again. None of this is to suggest that Apple is doing anything wrong. Indeed, according to Christensen, one of the hallmarks of the innovator’s dilemma is the company’s success, smooth operations, great products, and happy customers. That’s one of the things that makes it a dilemma: A company doesn’t realize anything’s wrong, because, well, nothing is. Smartphone sales may be slowing, but Apple is still a beloved brand, its products are excellent, its history and cachet are unmatched. But that doesn’t mean it has a plan to survive the ongoing decline in global smartphones sales.

The Innovator’s Dilemma does say an entrenched company can sometimes pull out of the quicksand by setting up a small, autonomous spinoff that has the power to move fast, pursue markets that are too small to move the needle for a company making $84 billion a quarter, and innovate before someone else gets there first.

Well, Apple has no autonomous innovation divisions that I know of, and the guys in charge are the same guys who have been in charge for decades: Tim Cook, Eddy Cue, Phil Schiller, Craig Federighi, Jony Ive—all have been associated with Apple since the late ’80s or ’90s. (I mean, has there ever really been a time without Jony Ive?)

You see what I’m saying here: brilliant team with a long record of execution and unparalleled success. Possibly not a lot of fresh ideas.

And then there’s the final option for innovation, one that Apple has availed itself of many times in the past. As Steve Jobs often said, quoting Picasso: “Good artists copy; great artists steal.” The iPod was born of existing MP3 players; the iPhone improved on clunky, ugly smartphones already on the market. The MacOS and the computer mouse were developed to maturity (yes, with permission) after being invented at Xerox PARC.

So maybe Apple will find the hottest thing in tech that’s still slightly unknown and come out with a better version. But is there such a thing as a way-sexier cloud computing business?

I guess it’s possible that the rumored virtual- and augmented-reality headset that Apple is supposed to release in 2020 will take the world by storm and popularize VR in a way that no one imagined, and like AirPods, will take a look that’s painfully dorky on the surface and turn it into a not-quite-ironic must-have statement of affluence and cool. It’s happened before. But this time, I think the company will get beaten to that punch—or whatever punch is next. Apple will be around for a long time. But the next Apple just isn’t Apple.

Source: https://www.wired.com/story/ideas-molly-wood-apple/

June 2018 Tech News & Trends to Watch

1. Companies Worldwide Strive for GDPR Compliance

By now, everyone with an email address has seen a slew of emails announcing privacy policy updates. You have Europe’s GDPR legislation to thank for your overcrowded inbox. GDPR creates rules around how much data companies are allowed to collect, how they’re able to use that data, and how clear they have to be with consumers about it all.

Companies around the world are scrambling to get their business and its practices into compliance – a significant task for many of them. While technically, the deadline to get everything in order passed on May 25, for many companies the process will continue well into June and possibly beyond. Some companies are even shutting down in Europe for good, or for as long as it takes them to get in compliance.

Even with the deadline behind us, the GDPR continues to be a top story for the tech world and may remain so for some time to come.

 

2. Amazon Provides Facial Recognition Tech to Law Enforcement

Amazon can’t seem to go a whole month without showing up in a tech news roundup. This month it’s for a controversial story: selling use of Rekognition, their facial recognition software, to law enforcement agencies on the cheap.

Civil rights groups have called for the company to stop allowing law enforcement access to the tech out of concerns that increased government surveillance can pose a threat to vulnerable communities in the country. In spite of the public criticism, Amazon hasn’t backed off on providing the tech to authorities, at least as of this time.

 

3. Apple Looks Into Self-Driving Employee Shuttles

Of the many problems facing our world, the frustrating work commute is one that many of the brightest minds in tech deal with just like the rest of us. Which makes it a problem the biggest tech companies have a strong incentive to try to solve.

Apple is one of many companies that’s invested in developing self-driving cars as a possible solution, but while that goal is still (probably) years away, they’ve narrowed their focus to teaming up with VW to create self-driving shuttles just for their employees.  Even that project is moving slower than the company had hoped, but they’re aiming to have some shuttles ready by the end of the year.

 

4. Court Weighs in on President’s Tendency to Block Critics on Twitter

Three years ago no one would have imagined that Twitter would be a president’s go-to source for making announcements, but today it’s used to that effect more frequently than official press conferences or briefings.

In a court battle that may sound surreal to many of us, a judge just found that the president can no longer legally block other users on Twitter.  The court asserted that blocking users on a public forum like Twitter amounts to a violation of their First Amendment rights. The judgment does still allow for the president and other public officials to mute users they don’t agree with, though.

 

5. YouTube Launches Music Streaming Service

YouTube joined the ranks of Spotify, Pandora, and Amazon this past month with their own streaming music service. Consumers can use a free version of the service that includes ads, or can pay $9.99 for the ad-free version.

youtube music service

With so many similar services already on the market, people weren’t exactly clamoring for another music streaming option. But since YouTube is likely to remain the reigning source for videos, it doesn’t necessarily need to unseat Spotify to still be okay. And with access to Google’s extensive user data, it may be able to provide more useful recommendations than its main competitors in the space, which is one way the service could differentiate itself.

 

6. Facebook Institutes Political Ad Rules

Facebook hasn’t yet left behind the controversies of the last election. The company is still working to proactively respond to criticism of its role in the spread of political propaganda many believe influenced election results. One of the solutions they’re trying is a new set of rules for any political ads run on the platform.

Any campaign that intends to run Facebook ads is now required to verify their identity with a card Facebook mails to their address that has a verification code. While Facebook has been promoting these new rules for a few weeks to politicians active on the platform, some felt blindsided when they realized, right before their primaries no less, that they could no longer place ads without waiting 12 to 15 days for a verification code to come in the mail. Politicians in this position blame the company for making a change that could affect their chances in the upcoming election.

Even in their efforts to avoid swaying elections, Facebook has found themselves criticized for doing just that. They’re probably feeling at this point like they just can’t win.

 

7. Another Big Month for Tech IPOs

This year has seen one tech IPO after another and this month is no different. Chinese smartphone company Xiaomi has a particularly large IPO in the works. The company seeks to join the Hong Kong stock exchange on June 7 with an initial public offering that experts anticipate could reach $10 billion.

The online lending platform Greensky started trading on the New York Stock Exchange on May 23 and sold 38 million shares in its first day, 4 million more than expected. This month continues 2018’s trend of tech companies going public, largely to great success.

 

8. StumbleUpon Shuts Down

In the internet’s ongoing evolution, there will always be tech companies that win and those that fall by the wayside. StumbleUpon, a content discovery platform that had its heyday in the early aughts, is officially shutting down on June 30.

Since its 2002 launch, the service has helped over 40 million users “stumble upon” 60 billion new websites and pieces of content. The company behind StumbleUpon plans to create a new platform that serves a similar purpose that may be more useful to former StumbleUpon users called Mix.

 

9. Uber and Lyft Invest in Driver Benefits

In spite of their ongoing success, the popular ridesharing platforms Uber and Lyft have faced their share of criticism since they came onto the scene. One of the common complaints critics have made is that the companies don’t provide proper benefits to their drivers. And in fact, the companies have fought to keep drivers classified legally as contractors so they’re off the hook for covering the cost of employee taxes and benefits.

Recently both companies have taken steps to make driving for them a little more attractive. Uber has begun offering Partner Protection to its drivers in Europe, which includes health insurance, sick pay, and parental leave ­ ­– so far nothing similar in the U.S. though. For its part, Lyft is investing $100 million in building driver support centers where their drivers can stop to get discounted car maintenance, tax help, and customer support help in person from Lyft staff. It’s not the same as getting full employee benefits (in the U.S. at least), but it’s something.

Source: https://www.hostgator.com/blog/june-tech-trends-to-watch/

What is GDPR – General Data Protection Regulation

Source Techcrunch.com

European Union lawmakers proposed a comprehensive update to the bloc’s data protection and privacy rules in 2012.

Their aim: To take account of seismic shifts in the handling of information wrought by the rise of the digital economy in the years since the prior regime was penned — all the way back in 1995 when Yahoo was the cutting edge of online cool and cookies were still just tasty biscuits.

Here’s the EU’s executive body, the Commission, summing up the goal:

The objective of this new set of rules is to give citizens back control over of their personal data, and to simplify the regulatory environment for business. The data protection reform is a key enabler of the Digital Single Market which the Commission has prioritised. The reform will allow European citizens and businesses to fully benefit from the digital economy.

For an even shorter the EC’s theory is that consumer trust is essential to fostering growth in the digital economy. And it thinks trust can be won by giving users of digital services more information and greater control over how their data is used. Which is — frankly speaking — a pretty refreshing idea when you consider the clandestine data brokering that pervades the tech industry. Mass surveillance isn’t just something governments do.

The General Data Protection Regulation (aka GDPR) was agreed after more than three years of negotiations between the EU’s various institutions.

It’s set to apply across the 28-Member State bloc as of May 25, 2018. That means EU countries are busy transposing it into national law via their own legislative updates (such as the UK’s new Data Protection Bill — yes, despite the fact the country is currently in the process of (br)exiting the EU, the government has nonetheless committed to implementing the regulation because it needs to keep EU-UK data flowing freely in the post-brexit future. Which gives an early indication of the pulling power of GDPR.

Meanwhile businesses operating in the EU are being bombarded with ads from a freshly energized cottage industry of ‘privacy consultants’ offering to help them get ready for the new regs — in exchange for a service fee. It’s definitely a good time to be a law firm specializing in data protection.

GDPR is a significant piece of legislation whose full impact will clearly take some time to shake out. In the meanwhile, here’s our guide to the major changes incoming and some potential impacts.

Data protection + teeth

A major point of note right off the bat is that GDPR does not merely apply to EU businesses; any entities processing the personal data of EU citizens need to comply. Facebook, for example — a US company that handles massive amounts of Europeans’ personal data — is going to have to rework multiple business processes to comply with the new rules. Indeed, it’s been working on this for a long time already.

Last year the company told us it had assembled “the largest cross functional team” in the history of its family of companies to support GDPR compliance — specifying this included “senior executives from all product teams, designers and user experience/testing executives, policy executives, legal executives and executives from each of the Facebook family of companies”.

“Dozens of people at Facebook Ireland are working full time on this effort,” it said, noting too that the data protection team at its European HQ (in Dublin, Ireland) would be growing by 250% in 2017. It also said it was in the process of hiring a “top quality data protection officer” — a position the company appears to still be taking applications for.

The new EU rules require organizations to appoint a data protection officer if they process sensitive data on a large scale (which Facebook very clearly does). Or are collecting info on many consumers — such as by performing online behavioral tracking. But, really, which online businesses aren’t doing that these days?

The extra-territorial scope of GDPR casts the European Union as a global pioneer in data protection — and some legal experts suggest the regulation will force privacy standards to rise outside the EU too.

Sure, some US companies might prefer to swallow the hassle and expense of fragmenting their data handling processes, and treating personal data obtained from different geographies differently, i.e. rather than streamlining everything under a GDPR compliant process. But doing so means managing multiple data regimes. And at very least runs the risk of bad PR if you’re outed as deliberately offering a lower privacy standard to your home users vs customers abroad.

Ultimately, it may be easier (and less risky) for businesses to treat GDPR as the new ‘gold standard’ for how they handle all personal data, regardless of where it comes from.

And while not every company harvests Facebook levels of personal data, almost every company harvests some personal data. So for those with customers in the EU GDPR cannot be ignored. At very least businesses will need to carry out a data audit to understand their risks and liabilities.

Privacy experts suggest that the really big change here is around enforcement. Because while the EU has had long established data protection standards and rules — and treats privacy as a fundamental right — its regulators have lacked the teeth to command compliance.

But now, under GDPR, financial penalties for data protection violations step up massively.

The maximum fine that organizations can be hit with for the most serious infringements of the regulation is 4% of their global annual turnover (or €20M, whichever is greater). Though data protection agencies will of course be able to impose smaller fines too. And, indeed, there’s a tiered system of fines — with a lower level of penalties of up to 2% of global turnover (or €10M).

This really is a massive change. Because while data protection agencies (DPAs) in different EU Member States can impose financial penalties for breaches of existing data laws these fines are relatively small — especially set against the revenues of the private sector entities that are getting sanctioned.

In the UK, for example, the Information Commissioner’s Office (ICO) can currently impose a maximum fine of just £500,000. Compare that to the annual revenue of tech giant Google (~$90BN) and you can see why a much larger stick is needed to police data processors.

It’s not necessarily the case that individual EU Member States are getting stronger privacy laws as a consequence of GDPR (in some instances countries have arguably had higher standards in their domestic law). But the beefing up of enforcement that’s baked into the new regime means there’s a better opportunity for DPAs to start to bark and bite like proper watchdogs.

GDPR inflating the financial risks around handling personal data should naturally drive up standards — because privacy laws are suddenly a whole lot more costly to ignore.

More types of personal data that are hot to handle

So what is personal data under GDPR? It’s any information relating to an identified or identifiable person (in regulatorspeak people are known as ‘data subjects’).

While ‘processing’ can mean any operation performed on personal data — from storing it to structuring it to feeding it to your AI models. (GDPR also includes some provisions specifically related to decisions generated as a result of automated data processing but more on that below).

A new provision concerns children’s personal data — with the regulation setting a 16-year-old age limit on kids’ ability to consent to their data being processed. However individual Member States can choose (and some have) to derogate from this by writing a lower age limit into their laws.

GDPR sets a hard cap at 13-years-old — making that the defacto standard for children to be able to sign up to digital services. So the impact on teens’ social media habits seems likely to be relatively limited.

The new rules generally expand the definition of personal data — so it can include information such as location data, online identifiers (such as IP addresses) and other metadata. So again, this means businesses really need to conduct an audit to identify all the types of personal data they hold. Ignorance is not compliance.

GDPR also encourages the use of pseudonymization — such as, for example, encrypting personal data and storing the encryption key separately and securely — as a pro-privacy, pro-security technique that can help minimize the risks of processing personal data. Although pseudonymized data is likely to still be considered personal data; certainly where a risk of reidentification remains. So it does not get a general pass from requirements under the regulation.

Data has to be rendered truly anonymous to be outside the scope of the regulation. (And given how often ‘anonymized’ data-sets have been shown to be re-identifiable, relying on any anonymizing process to be robust enough to have zero risk of re-identification seems, well, risky.)

To be clear, given GDPR’s running emphasis on data protection via data security it is implicitly encouraging the use of encryption above and beyond a risk reduction technique — i.e. as a way for data controllers to fulfill its wider requirements to use “appropriate technical and organisational measures” vs the risk of the personal data they are processing.

The incoming data protection rules apply to both data controllers (i.e. entities that determine the purpose and means of processing personal data) and data processors (entities that are responsible for processing data on behalf of a data controller — aka subcontractors).

Indeed, data processors have some direct compliance obligations under GDPR, and can also be held equally responsible for data violations, with individuals able to bring compensation claims directly against them, and DPAs able to hand them fines or other sanctions.

So the intent for the regulation is there be no diminishing in responsibility down the chain of data handling subcontractors. GDPR aims to have every link in the processing chain be a robust one.

For companies that rely on a lot of subcontractors to handle data operations on their behalf there’s clearly a lot of risk assessment work to be done.

As noted above, there is a degree of leeway for EU Member States in how they implement some parts of the regulation (such as with the age of data consent for kids).

Consumer protection groups are calling for the UK government to include an optional GDPR provision on collective data redress to its DP bill, for example — a call the government has so far rebuffed.

But the wider aim is for the regulation to harmonize as much as possible data protection rules across all Member States to reduce the regulatory burden on digital businesses trading around the bloc.

On data redress, European privacy campaigner Max Schrems — most famous for his legal challenge to US government mass surveillance practices that resulted in a 15-year-old data transfer arrangement between the EU and US being struck down in 2015 — is currently running a crowdfunding campaign to set up a not-for-profit privacy enforcement organization to take advantage of the new rules and pursue strategic litigation on commercial privacy issues.

Schrems argues it’s simply not viable for individuals to take big tech giants to court to try to enforce their privacy rights, so thinks there’s a gap in the regulatory landscape for an expert organization to work on EU citizen’s behalf. Not just pursuing strategic litigation in the public interest but also promoting industry best practice.

The proposed data redress body — called noyb; short for: ‘none of your business’ — is being made possible because GDPR allows for collective enforcement of individuals’ data rights. And that provision could be crucial in spinning up a centre of enforcement gravity around the law. Because despite the position and role of DPAs being strengthened by GDPR, these bodies will still inevitably have limited resources vs the scope of the oversight task at hand.

Some may also lack the appetite to take on a fully fanged watchdog role. So campaigning consumer and privacy groups could certainly help pick up any slack.

Privacy by design and privacy by default

Another major change incoming via GDPR is ‘privacy by design’ no longer being just a nice idea; privacy by design and privacy by default become firm legal requirements.

This means there’s a requirement on data controllers to minimize processing of personal data — limiting activity to only what’s necessary for a specific purpose, carrying out privacy impact assessments and maintaining up-to-date records to prove out their compliance.

Consent requirements for processing personal data are also considerably strengthened under GDPR — meaning lengthy, inscrutable, pre-ticked T&Cs are likely to be unworkable. (And we’ve sure seen a whole lot of those hellish things in tech.) The core idea is that consent should be an ongoing, actively managed process; not a one-off rights grab.

As the UK’s ICO tells it, consent under GDPR for processing personal data means offering individuals “genuine choice and control” (for sensitive personal data the law requires a higher standard still — of explicit consent).

There are other legal bases for processing personal data under GDPR — such as contractual necessity; or compliance with a legal obligation under EU or Member State law; or for tasks carried out in the public interest — so it is not necessary to obtain consent in order to process someone’s personal data. But there must always be an appropriate legal basis for each processing.

Transparency is another major obligation under GDPR, which expands the notion that personal data must be lawfully and fairly processed to include a third principle of accountability. Hence the emphasis on data controllers needing to clearly communicate with data subjects — such as by informing them of the specific purpose of the data processing.

The obligation on data handlers to maintain scrupulous records of what information they hold, what they are doing with it, and how they are legally processing it, is also about being able to demonstrate compliance with GDPR’s data processing principles.

But — on the plus side for data controllers — GDPR removes the requirement to submit notifications to local DPAs about data processing activities. Instead, organizations must maintain detailed internal records — which a supervisory authority can always ask to see.

It’s also worth noting that companies processing data across borders in the EU may face scrutiny from DPAs in different Member States if they have users there (and are processing their personal data).

Although the GDPR sets out a so-called ‘one-stop-shop’ principle — that there should be a “lead” DPA to co-ordinate supervision between any “concerned” DPAs — this does not mean that, once it applies, a cross-EU-border operator like Facebook is only going to be answerable to the concerns of the Irish DPA.

Indeed, Facebook’s tactic of only claiming to be under the jurisdiction of a single EU DPA looks to be on borrowed time. And the one-stop-shop provision in the GDPR seems more about creating a co-operation mechanism to allow multiple DPAs to work together in instances where they have joint concerns, rather than offering a way for multinationals to go ‘forum shopping’ — which the regulation does not permit (per WP29 guidance).

Another change: Privacy policies that contain vague phrases like ‘We may use your personal data to develop new services’ or ‘We may use your personal data for research purposes’ will not pass muster under the new regime. So a wholesale rewriting of vague and/or confusingly worded T&Cs is something Europeans can look forward to this year.

Add to that, any changes to privacy policies must be clearly communicated to the user on an ongoing basis. Which means no more stale references in the privacy statement telling users to ‘regularly check for changes or updates’ — that just won’t be workable.

The onus is firmly on the data controller to keep the data subject fully informed of what is being done with their information. (Which almost implies that good data protection practice could end up tasting a bit like spam, from a user PoV.)

The overall intent behind GDPR is to inculcate an industry-wide shift in perspective regarding who ‘owns’ user data — disabusing companies of the notion that other people’s personal information belongs to them just because it happens to be sitting on their servers.

“Organizations should acknowledge they don’t exist to process personal data but they process personal data to do business,” is how analyst Gartner research director Bart Willemsen sums this up. “Where there is a reason to process the data, there is no problem. Where the reason ends, the processing should, too.”

The data protection officer (DPO) role that GDPR brings in as a requirement for many data handlers is intended to help them ensure compliance.

This officer, who must report to the highest level of management, is intended to operate independently within the organization, with warnings to avoid an internal appointment that could generate a conflict of interests.

Which types of organizations face the greatest liability risks under GDPR? “Those who deliberately seem to think privacy protection rights is inferior to business interest,” says Willemsen, adding: “A recent example would be Uber, regulated by the FTC and sanctioned to undergo 20 years of auditing. That may hurt perhaps similar, or even more, than a one-time financial sanction.”

“Eventually, the GDPR is like a speed limit: There not to make money off of those who speed, but to prevent people from speeding excessively as that prevents (privacy) accidents from happening,” he adds.

Another right to be forgotten

Under GDPR, people who have consented to their personal data being processed also have a suite of associated rights — including the right to access data held about them (a copy of the data must be provided to them free of charge, typically within a month of a request); the right to request rectification of incomplete or inaccurate personal data; the right to have their data deleted (another so-called ‘right to be forgotten’ — with some exemptions, such as for exercising freedom of expression and freedom of information); the right to restrict processing; the right to data portability (where relevant, a data subject’s personal data must be provided free of charge and in a structured, commonly used and machine readable form).

All these rights make it essential for organizations that process personal data to have systems in place which enable them to identify, access, edit and delete individual user data — and be able to perform these operations quickly, with a general 30 day time-limit for responding to individual rights requests.

GDPR also gives people who have consented to their data being processed the right to withdraw consent at any time. Let that one sink in.

Data controllers are also required to inform users about this right — and offer easy ways for them to withdraw consent. So no, you can’t bury a ‘revoke consent’ option in tiny lettering, five sub-menus deep. Nor can WhatsApp offer any more time-limit opt-outs for sharing user data with its parent multinational, Facebook. Users will have the right to change their mind whenever they like.

The EU lawmakers’ hope is that this suite of rights for consenting consumers will encourage respectful use of their data — given that, well, if you annoy consumers they can just tell you to sling yer hook and ask for a copy of their data to plug into your rival service to boot. So we’re back to that fostering trust idea.

Add in the ability for third party organizations to use GDPR’s provision for collective enforcement of individual data rights and there’s potential for bad actors and bad practice to become the target for some creative PR stunts that harness the power of collective action — like, say, a sudden flood of requests for a company to delete user data.

Data rights and privacy issues are certainly going to be in the news a whole lot more.

Getting serious about data breaches

But wait, there’s more! Another major change under GDPR relates to security incidents — aka data breaches (something else we’ve seen an awful, awful lot of in recent years) — with the regulation doing what the US still hasn’t been able to: Bringing in a universal standard for data breach disclosures.

GDPR requires that data controllers report any security incidents where personal data has been lost, stolen or otherwise accessed by unauthorized third parties to their DPA within 72 hours of them becoming aware of it. Yes, 72 hours. Not the best part of a year, like er Uber.

If a data breach is likely to result in a “high risk of adversely affecting individuals’ rights and freedoms” the regulation also implies you should ‘fess up even sooner than that — without “undue delay”.

Only in instances where a data controller assesses that a breach is unlikely to result in a risk to the rights and freedoms of “natural persons” are they exempt from the breach disclosure requirement (though they still need to document the incident internally, and record their reason for not informing a DPA in a document that DPAs can always ask to see).

“You should ensure you have robust breach detection, investigation and internal reporting procedures in place,” is the ICO’s guidance on this. “This will facilitate decision-making about whether or not you need to notify the relevant supervisory authority and the affected individuals.”

The new rules generally put strong emphasis on data security and on the need for data controllers to ensure that personal data is only processed in a manner that ensures it is safeguarded.

Here again, GDPR’s requirements are backed up by the risk of supersized fines. So suddenly sloppy security could cost your business big — not only in reputation terms, as now, but on the bottom line too. So it really must be a C-suite concern going forward.

Nor is subcontracting a way to shirk your data security obligations. Quite the opposite. Having a written contract in place between a data controller and a data processor was a requirement before GDPR but contract requirements are wider now and there are some specific terms that must be included in the contract, as a minimum.

Breach reporting requirements must also be set out in the contract between processor and controller. If a data controller is using a data processor and it’s the processor that suffers a breach, they’re required to inform the controller as soon as they become aware. The controller then has the same disclosure obligations as per usual.

Essentially, data controllers remain liable for their own compliance with GDPR. And the ICO warns they must only appoint processors who can provide “sufficient guarantees” that the regulatory requirements will be met and the rights of data subjects protected.

tl;dr, be careful who and how you subcontract.

Right to human review for some AI decisions

Article 22 of GDPR places certain restrictions on entirely automated decisions based on profiling individuals — but only in instances where these human-less acts have a legal or similarly significant effect on the people involved.

There are also some exemptions to the restrictions — where automated processing is necessary for entering into (or performance of) a contract between an organization and the individual; or where it’s authorized by law (e.g. for the purposes of detecting fraud or tax evasion); or where an individual has explicitly consented to the processing.

In its guidance, the ICO specifies that the restriction only applies where the decision has a “serious negative impact on an individual”.

Suggested examples of the types of AI-only decisions that will face restrictions are automatic refusal of an online credit application or an e-recruiting practices without human intervention.

Having a provision on automated decisions is not a new right, having been brought over from the 1995 data protection directive. But it has attracted fresh attention — given the rampant rise of machine learning technology — as a potential route for GDPR to place a check on the power of AI blackboxes to determine the trajectory of humankind.

The real-world impact will probably be rather more prosaic, though. And experts suggest it does not seem likely that the regulation, as drafted, equates to a right for people to be given detailed explanations of how algorithms work.

Though as AI proliferates and touches more and more decisions, and as its impacts on people and society become ever more evident, pressure may well grow for proper regulatory oversight of algorithmic blackboxes.

In the meanwhile, what GDPR does in instances where restrictions apply to automated decisions is require data controllers to provide some information to individuals about the logic of an automated decision.

They are also obliged to take steps to prevent errors, bias and discrimination. So there’s a whiff of algorithmic accountability. Though it may well take court and regulatory judgements to determine how stiff those steps need to be in practice.

Individuals do also have a right to challenge and request a (human) review of an automated decision in the restricted class.

Here again the intention is to help people understand how their data is being used. And to offer a degree of protection (in the form of a manual review) if a person feels unfairly and harmfully judged by an AI process.

The regulation also places some restrictions on the practice of using data to profile individuals if the data itself is sensitive data — e.g. health data, political belief, religious affiliation etc — requiring explicit consent for doing so. Or else that the processing is necessary for substantial public interest reasons (and lies within EU or Member State law).

While profiling based on other types of personal data does not require obtaining consent from the individuals concerned, it still needs a legal basis and there is still a transparency requirement — which means service providers will need to inform users they are being profiled, and explain what it means for them.

And people also always have the right to object to profiling activity based on their personal data.

 

Source: https://techcrunch.com/2018/01/20/wtf-is-gdpr/