Europe Proposes Strict Rules for Artificial Intelligence: Live Updates
Europe Proposes Strict Rules for Artificial Intelligence: Live Updates
On Tuesday, JPMorgan Chase’s co-heads of investment banking, Jim Casey and Viswas Raghavan, announced policies aimed at improving working conditions amid record deal volume and an industrywide debate about banker burnout, especially in the junior ranks.
The country’s largest bank has tried similar moves before. Mr. Casey spoke with the DealBook newsletter about the company’s latest plan — and whether this one will stick.
To help alleviate that level of exhaustion among its own ranks, JPMorgan is bringing on more workers to help cope with heavy deal volume, which generated $3 billion in investment banking fees in the first quarter, up nearly 60 percent from the previous year. It has already hired 65 analysts and 22 associates this year and plans to add another 100 junior bankers and support staff, “if we can find them, as quickly as we can,” Mr. Casey said.
It’s also focused on managing its bankers’ hours better. JPMorgan will tell associates not to do marketing work on weekends. It will encourage all bankers to go home by 7 p.m. on weekdays and add more flexibility for personal time. It will force bankers to take at least three weeks’ vacation a year. It will require group heads to call two to three junior bankers every day to find out what’s working.
Some of these actions are similar to what JPMorgan rolled out in 2016, but “it wasn’t stringently enforced,” Mr. Casey said. Why not? “Laziness.”
This time, junior bankers’ hours and feedback will figure in senior managers’ performance evaluations and — crucially — compensation.
One thing the bank won’t be doing: offering one-time checks or free Peloton exercise bikes to staff after a big rush, like at some other banks. “It’s not a money problem,” Mr. Casey said. “If we just cut the junior bankers a check now,” he said, “then that would be the excuse that everybody says, ‘Well, OK, the problem is fixed.’ No, it’s not.”
And some other things won’t change. Banking is a client-service job, so managers sometimes have limited control over workloads and hours. “You might do 100 deals a year, but that client only does one deal every three years,” Mr. Casey said. “They want everything done yesterday.”
As to how the bank will measure the success of these policies, “ask me what our turnover ratio has gone to and I will tell you,” Mr. Casey said. What’s the target? “Lower.”
The European Union on Wednesday unveiled strict regulations to govern the use of artificial intelligence, a first-of-its-kind policy that outlines how companies and governments can use a technology seen as one of the most significant, but ethically fraught, scientific breakthroughs in recent memory.
Presented at a news briefing in Brussels, the draft rules would set limits around the use of artificial intelligence in a range of activities, from self-driving cars to hiring decisions, school enrollment selections and the scoring of exams. It would also cover the use of artificial intelligence by law enforcement and court systems — areas considered “high risk” because they could threaten people’s safety or fundamental rights.
Some uses would be banned altogether, including live facial recognition in public spaces, though there would be some exemptions for national security and other purposes.
The rules have far-reaching implications for major technology companies including Amazon, Google, Facebook and Microsoft that have poured resources into developing artificial intelligence, but also scores of other companies that use the technology in health care, insurance and finance. Governments have used versions of the technology in criminal justice and allocating public services.
Companies that violate the new regulations, which are expected to take several years to debate and implement, could face fines of up to 6 percent of global sales.
Artificial intelligence — where machines are trained to learn how to perform jobs on their own by studying huge volumes of data — is seen by technologists, business leaders and government officials as one of the world’s most transformative technologies.
But as the systems become more sophisticated it can be harder to determine why the technology is making a decision, a problem that could get worse as computers become more powerful. Researchers have raised ethical questions about its use, suggesting that it could perpetuate existing biases in society, invade privacy, or result in more jobs being automated.
“On artificial intelligence, trust is a must, not a nice to have,” Margrethe Vestager, the European Commission executive vice president who oversees digital policy for the 27-nation bloc, said in a statement. “With these landmark rules, the E.U. is spearheading the development of new global norms to make sure A.I. can be trusted.”
In introducing the draft rules, the European Union is attempting to further establish itself as the world’s most aggressive watchdog of the technology industry. The bloc has already enacted the world’s most far-reaching data-privacy regulations, and is also debating additional antitrust and content-moderation laws.
In Washington, the risks of artificial intelligence are also being considered. This week, the Federal Trade Commission warned against the sale of artificial intelligence systems that use racially-biased algorithms, or ones that could “deny people employment, housing, credit, insurance, or other benefits.”
The past year has crushed independent restaurants across the country and brought a reality to their doors: Many were unprepared for a digital world.
Unlike other small retailers, restaurateurs could keep the tech low, with basic websites and maybe Instagram accounts with tantalizing, well-lit photos of their food. It meant businesses like BentoBox, which aims to help restaurants build more robust websites with e-commerce abilities, were a hard sell, Amy Haimerl reports for The New York Times.
For many, BentoBox’s services were a “nice to have,” not a necessity, the company’s founder, Krystle Mobayeni, said.
But the pandemic sent chefs and owners flocking to the firm as they suddenly needed to add to-go ordering, delivery scheduling, gift card sales and more to their websites. Before the pandemic the company, based in New York City, had about 4,800 clients, including the high-profile Manhattan restaurant Gramercy Tavern; today it has more than 7,000 restaurants on board and recently received a $28.8 million investment led by Goldman Sachs.
The moment opened a well of opportunity for other companies like it. Dozens of firms have either started or scaled up sharply as they found their services in urgent demand. Meanwhile, investors and venture capitalists have been sourcing deals in the “restaurant tech” sector — particularly seeking companies that bring the big chains’ advantages to independent restaurants.
A growing number of retirees and those approaching retirement are in debt.
The share of households headed by someone 55 or older with debt — from credit cards, mortgages, medical bills and student loans — increased to 68.4 percent in 2019, from 53.8 percent in 1992, according to the Employee Benefit Research Institute. A survey at the end of 2020 by Clever, an online real estate service, found that on average, retirees had doubled their nonmortgage debt in 2020 — to $19,200.
Susan B. Garland reports for The New York Times on what to do if you’re in this position:
Consult a nonprofit credit counseling agency, which will review a client’s expenses and income sources and create a custom action plan. The initial budgeting session is often free, said Bruce McClary, senior vice president for communications at the National Foundation for Credit Counseling. An action plan could include cutting unnecessary spending, such as selling a rarely used car and banking some proceeds for taxi fare.
Tap into senior-oriented government benefits, such as property tax relief, utility assistance and Medicare premium subsidies. The National Council on Aging operates a clearinghouse website for them, BenefitsCheckUp.org. “The average individual 65-plus on a fixed income is leaving $7,000 annually on the table” in unused benefits, said Ramsey Alwin, the council’s president.
Avoid using high-interest credit cards to fill income gaps. Medical bills typically charge little or no interest but turn into high-interest costs if placed on credit cards, said Melinda Opperman, president of Credit.org. Instead, she said, patients should call hospitals or other providers directly to work out an arrangement.
Avoid taking out home-equity loans or lines of credit to pay off credit cards or medical bills, said Rose Perkins, quality assurance manager for CCCSMD, a credit counseling service. Though tapping home equity carries a lower interest rate than a credit card, a homeowner could put a home at risk if a job loss, the death of a spouse or illness made it difficult to pay off the lender, she said.
Netflix reported the addition of four million new customers in the first quarter, below the six million it had forecast. The company expects to add only one million new customers for this current quarter ending in June. Netflix shares plummeted about 10 percent in after-hours trading.
Apple unveiled new products on Tuesday that showed how it continues to center its marketing pitch on consumer privacy, at the potential expense of other companies, while muscling into markets pioneered by much smaller competitors. Apple showed off a new high-end iPad and an iMac desktop computer based on new processors that Apple now makes itself. The company said it was redesigning its podcast app, which competes with companies like Spotify, to enable creators to charge for their shows. It revealed the AirTag, a $29 disc that attaches to key rings or wallets so they can be found if lost. And after its product show, Apple said that it planned to release iPhone software next week with a privacy feature that worries digital-advertising companies, most notably Facebook.
European stocks rose slightly on Wednesday, reversing some of the previous day’s drop, while U.S. stock futures indicated the S&P 500 would open lower. The sentiment in stock markets this week has shifted away from the optimism that recently set record highs amid growing concerns about coronavirus variants that are leading to new outbreaks.
The Stoxx Europe 600 index rose 0.3 percent after plunging 1.9 percent on Tuesday. That was the biggest one-day decline since December. The S&P 500 fell 0.7 percent on Tuesday.
Oil prices fell, with futures on West Texas Intermediate, the U.S. benchmark, declining 1.2 percent to just below $62 a barrel.
Netflix shares dropped nearly 8 percent in premarket trading after its latest earnings report. For the first quarter of 2021, Netflix said it added four million new customers, less than the six million it had forecast. It’s another sign that, although Netflix still dominates streaming, its rivals are starting to catch up.
As plans for a European Super League for soccer rapidly fell apart on Tuesday, shares in publicly traded football clubs that had joined the group dropped. Manchester United shares fell in premarket trading in New York, extending a 6 percent drop from the previous day. Shares in Juventus, an Italian club, plummeted nearly 13 percent.
Inflation in Britain rose less in March than economists predicted. The annual rate of price increases was 0.7 percent, data published Wednesday showed, up from 0.4 percent in February. The jump is notable, but it is less than the 0.8 percent analysts had predicted. As in the United States, policymakers and economists expect some of the increase to be temporary and explained by transitionary factors such as the steep drop in oil prices this time last year. Therefore, bets are that the central bank won’t reduce its monetary stimulus yet.