Showing posts with label deepseek. Show all posts
Showing posts with label deepseek. Show all posts

Daily Tech Digest - February 04, 2025


Quote for the day:

"Develop success from failures. Discouragement and failure are two of the surest stepping stones to success." -- Dale Carnegie


Technology skills gap plagues industries, and upskilling is a moving target

“The deepening threat landscape and rapidly evolving high-momentum technologies like AI are forcing organizations to move with lightning speed to fill specific gaps in their job architectures, and too often they are stumbling,” said David Foote, chief analyst at consultancy Foote Partners. To keep up with the rapidly changing landscape, Gartner suggests that organizations invest in agile learning for tech teams. “In the context of today’s AI-fueled accelerated disruption, many business leaders feel learning is too slow to respond to the volume, variety and velocity of skills needs,” said Chantal Steen, a senior director in Gartner’s HR practice. “Learning and development must become more agile to respond to changes faster and deliver learning more rapidly and more cost effectively.” Studies from staffing firm ManpowerGroup, hiring platform Indeed, and Deloitte consulting show that tech hiring will focus on candidates with flexible skills to meet evolving demands. “Employers know a skilled and adaptable workforce is key to navigating transformation, and many are prioritizing hiring and retaining people with in-demand flexible skills that can flex to where demand sits,” said Jonas Prising, ManpowerGroup chair and CEO.


Mixture of Experts (MoE) Architecture: A Deep Dive & Comparison of Top Open-Source Offerings

The application of MoE to open-source LLMs offers several key advantages. Firstly, it enables the creation of more powerful and sophisticated models without incurring the prohibitive costs associated with training and deploying massive, single-model architectures. Secondly, MoE facilitates the development of more specialized and efficient LLMs, tailored to specific tasks and domains. This specialization can lead to significant improvements in performance, accuracy, and efficiency across a wide range of applications, from natural language translation and code generation to personalized education and healthcare. The open-source nature of MoE-based LLMs promotes collaboration and innovation within the AI community. By making these models accessible to researchers, developers, and businesses, MoE fosters a vibrant ecosystem of experimentation, customization, and shared learning. ... Integrating MoE architecture into open-source LLMs represents a significant step forward in the evolution of artificial intelligence. By combining the power of specialization with the benefits of open-source collaboration, MoE unlocks new possibilities for creating more efficient, powerful, and accessible AI models that can revolutionize various aspects of our lives.


The DeepSeek Disruption and What It Means for CIOs

The emergence of DeepSeek has also revived a long-standing debate about open-source AI versus proprietary AI. Open-source AI is not a silver bullet. CIOs need to address critical risks as open-source AI models, if not secured properly, can be exposed to grave cyberthreats and adversarial attacks. While DeepSeek currently shows extraordinary efficiency, it requires an internal infrastructure, unlike GPT-4, which can seamlessly scale on OpenAI's cloud. Open-source AI models lack support and skills, thereby mandating users to build their own expertise, which could be demanding. "What happened with DeepSeek is actually super bullish. I look at this transition as an opportunity rather than a threat," said Steve Cohen, founder of Point72. ... The regulatory non-compliance adds another challenge as many governments restrict and disallow sensitive enterprise data from being processed by Chinese technologies. A possibility of potential backdoor can't be ruled out and this could open the enterprises to additional risks. CIOs need to conduct extensive security audits before deploying DeepSeek. rganizations can implement safeguards such as on-premises deployment to avoid data exposure. Integrating strict encryption protocols can help the AI interactions remain confidential, and performing rigorous security audits ensure the model's safety before deploying it into business workflows.


Why GreenOps will succeed where FinOps is failing

The cost-control focus fails to engage architects and engineers in rethinking how systems are designed, built and operated for greater efficiency. This lack of engagement results in inertia and minimal progress. For example, the database team we worked with in an organization new to the cloud launched all the AWS RDS database servers from dev through production, incurring a $600K a month cloud bill nine months before the scheduled production launch. The overburdened team was not thinking about optimizing costs, but rather optimizing their own time and getting out of the way of the migration team as quickly as possible. ... GreenOps — formed by merging FinOps, sustainability and DevOps — addresses the limitations of FinOps while integrating sustainability as a core principle. Green computing contributes to GreenOps by emphasizing energy-efficient design, resource optimization and the use of sustainable technologies and platforms. This foundational focus ensures that every system built under GreenOps principles is not only cost-effective but also minimizes its environmental footprint, aligning technological innovation with ecological responsibility. Moreover, we’ve found that providing emissions feedback to architects and engineers is a bigger motivator than cost to inspire them to design more efficient systems and build automation to shut down underutilized resources.


Best Practices for API Rate Limits and Quotas

Unlike short-term rate limits, the goal of quotas is to enforce business terms such as monetizing your APIs and protecting your business from high-cost overruns by customers. They measure customer utilization of your API over longer durations, such as per hour, per day, or per month. Quotas are not designed to prevent a spike from overwhelming your API. Rather, quotas regulate your API’s resources by ensuring a customer stays within their agreed contract terms. ... Even a protection mechanism like rate limiting could have errors. For example, a bad network connection with Redis could cause reading rate limit counters to fail. In such scenarios, it’s important not to artificially reject all requests or lock out users even though your Redis cluster is inaccessible. Your rate-limiting implementation should fail open rather than fail closed, meaning all requests are allowed even though the rate limit implementation is faulting. This also means rate limiting is not a workaround to poor capacity planning, as you should still have sufficient capacity to handle these requests or even design your system to scale accordingly to handle a large influx of new requests. This can be done through auto-scale, timeouts, and automatic trips that enable your API to still function.


Protecting Ultra-Sensitive Health Data: The Challenges

Protecting ultra-sensitive information "is an incredibly confusing and complicated and evolving part of the law," said regulatory attorney Kirk Nahra of the law firm WilmerHale. "HIPAA generally does not distinguish between categories of health information," he said. "There are exceptions - including the recent Dobbs rule - but these are not fundamental in their application, he said. Privacy protections related to abortion procedures are perhaps the most hotly debated type of patient information. For instance, last June - in response to the June 2022 Supreme Court's Dobbs ruling, which overturned the national right to abortion - the Biden administration's U.S. Department of Health and Human Services modified the HIPAA Privacy Rule to add additional safeguards for the access, use and disclosure of reproductive health information. The rule is aimed at protecting women from the use or disclosure of their reproductive health information when it is sought to investigate or impose liability on individuals, healthcare providers or others who seek, obtain, provide or facilitate reproductive healthcare that is lawful under the circumstances in which such healthcare is provided. But that rule is being challenged in federal court by 15 state attorneys general seeking to revoke the regulations.


Evolving threat landscape, rethinking cyber defense, and AI: Opportunties and risk

Businesses are firmly in attackers’ crosshairs. Financially motivated cybercriminals conduct ransomware attacks with record-breaking ransoms being paid by companies seeking to avoid business interruption. Others, including nation-state hackers, infiltrate companies to steal intellectual property and trade secrets to gain commercial advantage over competitors. Further, we regularly see critical infrastructure being targeted by nation-state cyberattacks designed to act as sleeper cells that can be activated in times of heightened tension. Companies are on the back foot. ... As zero trust disrupts obsolete firewall and VPN-based security, legacy vendors are deploying firewalls and VPNs as virtual machines in the cloud and calling it zero trust architecture. This is akin to DVD hardware vendors deploying DVD players in a data center and calling it Netflix! It gives a false sense of security to customers. Organizations need to make sure they are really embracing zero trust architecture, which treats everyone as untrusted and ensures users connect to specific applications or services, rather than a corporate network. ... Unfortunately, the business world’s harnessing of AI for cyber defense has been slow compared to the speed of threat actors harnessing it for attacks. 


Six essential tactics data centers can follow to achieve more sustainable operations

By adjusting energy consumption based on real-time demand, data centers can significantly enhance their operational efficiency. For example, during periods of low activity, power can be conserved by reducing energy use, thus minimizing waste without compromising performance. This includes dynamic power management technologies in switch and router systems, such as shutting down unused line cards or ports and controlling fan speeds to optimize energy use based on current needs. Conversely, during peak demand, operations can be scaled up to meet increased requirements, ensuring consistent and reliable service levels. Doing so not only reduces unnecessary energy expenditure, but also contributes to sustainability efforts by lowering the environmental impact associated with energy-intensive operations. ... Heat generated from data center operations can be captured and repurposed to provide heating for nearby facilities and homes, transforming waste into a valuable resource. This approach promotes a circular energy model, where excess heat is redirected instead of discarded, reducing the environmental impact. Integrating data centers into local energy systems enhances sustainability and offers tangible benefits to surrounding areas and communities whilst addressing broader energy efficiency goals.


The Engineer’s Guide to Controlling Configuration Drift

“Preventing configuration drift is the bedrock for scalable, resilient infrastructure,” comments Mayank Bhola, CTO of LambdaTest, a cloud-based testing platform that provides instant infrastructure. “At scale, even small inconsistencies can snowball into major operational inefficiencies. We encountered these challenges [user-facing impact] as our infrastructure scaled to meet growing demands. Tackling this challenge head-on is not just about maintaining order; it’s about ensuring the very foundation of your technology is reliable. And so, by treating infrastructure as code and automating compliance, we at LambdaTest ensure every server, service, and setting aligns with our growth objectives, no matter how fast we scale. Adopting drift detection and remediation strategies is imperative for maintaining a resilient infrastructure. ... The policies you set at the infrastructure level, such as those for SSH access, add another layer of security to your infrastructure. Ansible allows you to define policies like removing root access, changing the default SSH port, and setting user command permissions. “It’s easy to see who has access and what they can execute,” Kampa remarks. “This ensures resilient infrastructure, keeping things secure and allowing you to track who did what if something goes wrong.”


Strategies for mitigating bias in AI models

The need to address bias in AI models stems from the fundamental principle of fairness. AI systems should treat all individuals equitably, regardless of their background. However, if the training data reflects existing societal biases, the model will likely reproduce and even exaggerate those biases in its outputs. For instance, if a facial recognition system is primarily trained on images of one demographic, it may exhibit lower accuracy rates for other groups, potentially leading to discriminatory outcomes. Similarly, a natural language processing model trained on predominantly Western text may struggle to understand or accurately represent nuances in other languages and cultures. ... Incorporating contextual data is essential for AI systems to provide relevant and culturally appropriate responses. Beyond basic language representation, models should be trained on datasets that capture the history, geography, and social issues of the populations they serve. For instance, an AI system designed for India should include data on local traditions, historical events, legal frameworks, and social challenges specific to the region. This ensures that AI-generated responses are not only accurate but also culturally sensitive and context-aware. Additionally, incorporating diverse media formats such as text, images, and audio from multiple sources enhances the model’s ability to recognise and adapt to varying communication styles.

Daily Tech Digest - February 03, 2025


Quote for the day:

"Knowledge is being aware of what you can do. Wisdom is knowing when not to do it." -- Anonymous


The CISO’s role in advancing innovation in cybersecurity

CISOs must know the risks of adopting untested solutions, keeping in mind their organization’s priorities and learning how to evaluate new tools and technologies. “We also ensure both parties have clear, shared goals from the start, so we avoid misunderstandings and set everyone up for success,” Maor tells CSO. ... It’s a golden era of cybersecurity innovation driven by emerging cybersecurity threats, but it’s a tale of two companies, according to Perlroth. AI is attracting significant amounts of funding while it’s harder for many other types of startups. Cybersecurity companies continue to get a lot of interest from venture capital (VC) firms, although she’s seeing founders themselves eschewing big general funds in favor of funds and investors with industry knowledge. “Startup founders frequently want to work with venture capitalists who have some kind of specific value add or cyber expertise,” says Perlroth. In this environment, there’s more potential for CISOs to be involved and those with an appetite for the business side of cyber innovation can look for opportunities to advise and invest in new businesses. Cyber-focused venture capital (VC) firms often engage CISOs to participate in advisory panels and assist with due diligence when vetting startups, according to Haleliuk. 


The risks of supply chain cyberattacks on your organisation

Organisations need to ensure they take steps to prevent the risk of key suppliers falling victim to cyberattacks. A good starting point is to work out just where they are most exposed, says Lorri Janssen-Anessi, director of external cyber assessments at BlueVoyant. “Understand your external attack surface and third-party integrations to ensure there are no vulnerabilities,” she urges. “Consider segmentation of critical systems and minimise the blast radius of a breach. Identify the critical vendors or suppliers and ensure those important digital relationships have stricter security practices in place.” Bob McCarter, CTO at NAVEX, believes there needs to be a stronger emphasis on cybersecurity when selecting and reviewing suppliers. “Suppliers need to have essential security controls including multi-factor authentication, phishing education and training, and a Zero Trust framework,” he says. “To avoid long-term financial loss, they must also adhere to relevant cybersecurity regulations and industry standards.” But it’s also important to regularly perform risk assessments, even once the relationship is established, says Janssen-Anessi. “The supply chain ecosystem is not static,” she warns. “Networks and systems are constantly changing to ensure usability. To stay ahead of vulnerabilities or risks that may pop up, it is important to continuously monitor these suppliers.”


Deepseek's AI model proves easy to jailbreak - and worse

On Thursday, Unit 42, a cybersecurity research team at Palo Alto Networks, published results on three jailbreaking methods it employed against several distilled versions of DeepSeek's V3 and R1 models. ... "Our research findings show that these jailbreak methods can elicit explicit guidance for malicious activities," the report states. "These activities include keylogger creation, data exfiltration, and even instructions for incendiary devices, demonstrating the tangible security risks posed by this emerging class of attack." Researchers were able to prompt DeepSeek for guidance on how to steal and transfer sensitive data, bypass security, write "highly convincing" spear-phishing emails, conduct "sophisticated" social engineering attacks, and make a Molotov cocktail. They were also able to manipulate the models into creating malware. ... "While information on creating Molotov cocktails and keyloggers is readily available online, LLMs with insufficient safety restrictions could lower the barrier to entry for malicious actors by compiling and presenting easily usable and actionable output," the paper adds. ... "By circumventing standard restrictions, jailbreaks expose how much oversight AI providers maintain over their own systems, revealing not only security vulnerabilities but also potential evidence of cross-model influence in AI training pipelines," it continues.


10 skills and traits of successful digital leaders

An important skill for CIOs is strategic thinking, which means adopting a “why” mindset, notesGill Haus, CIO of consumer and community banking at JPMorgan Chase. “I ask questions all the time — even on subjects I think I’m most knowledgeable about,” Haus says. “When others see their leader asking questions, even in the company of more senior leaders, it creates a welcoming atmosphere that encourages everyone to feel safe doing the same. ... Effective leaders have a clear vision of what technology can do for their organization as well as a solid understanding of it, agrees Stephanie Woerner, director and principal research scientist at the MIT’s Center for Information Systems Research (CISR). “They think about the new things they can do with technology, different ways of getting work done or engaging with customers, and how technology enables that.” ... Being able to translate complex technical concepts into clear business value while also maintaining realistic implementation timelines is another important skill. Tech leaders are up to their eyeballs in data, systems, and processes, but all users want is that a product works. A strong digital leader should constantly ask themselves how they can make something easier for their customers. 


Prompt Injection for Large Language Models

Many businesses put all of their secrets into the system prompt, and if you're able to steal that prompt, you have all of their secrets. Some of the companies are a bit more clever, and they put their data into files that are then put into the context or referenced by the large language model. In these cases, you can just ask the model to provide you links to download the documents it knows about. Sometimes there are interesting URLs pointing to internal documents, such as Jira, Confluence, and the like. You can learn about the business and its data that it has available. That can be really bad for the business. Another thing you might want to do with these prompt injections is to gain personal advantages. Imagine a huge company, and they have a big HR department, they receive hundreds of job applications every day, so they use an AI based tool to evaluate which candidates are a fit for the open position. ... Another approach to make your models less sensitive to prompt injection and prompt stealing is to fine-tune them. Fine-tuning basically means you take a large language model that has been trained by OpenAI, Meta, or some other vendor, and you retrain it with additional data to make it more suitable for your use case.


The hidden dangers of a toxic cybersecurity workplace

Certain roles in cybersecurity are more vulnerable to toxic environments due to the nature of their responsibilities and visibility within the organization. SOC analysts, for instance, are often on the frontlines, dealing with high-pressure situations like incident response and threat mitigation. The expectation to always be “on” can lead to burnout, especially in a culture that prioritizes output over well-being. Similarly, CISOs face unique challenges as they balance technical, strategic, and political pressures. They’re often caught between managing expectations from the C-suite and addressing operational realities. CISO burnout is very real, driven in part by the immense liability and scrutiny associated with the role. The constant pressure, combined with the growing complexity of threats, leads many CISOs to leave their positions, with some even vowing, “never again will I do this job.” This trend is tragic, as organizations lose experienced leaders who play a critical role in shaping cybersecurity strategies. ... Leaders play a crucial role in fostering a positive culture and must take proactive steps to address toxicity. They should prioritize open communication and actively solicit feedback from their teams on a regular basis. Anonymous surveys, one-on-one meetings, and team discussions can help identify pain points. 


The Cultural Backlash Against Generative AI

Part of the problem is that generative AI really can’t effectively do everything the hype claims. An LLM can’t be reliably used to answer questions, because it’s not a “facts machine”. It’s a “probable next word in a sentence machine”. But we’re seeing promises of all kinds that ignore these limitations, and tech companies are forcing generative AI features into every kind of software you can think of. People hated Microsoft’s Clippy because it wasn’t any good and they didn’t want to have it shoved down their throats — and one might say they’re doing the same basic thing with an improved version, and we can see that some people still understandably resent it. When someone goes to an LLM today and asks for the price of ingredients in a recipe at their local grocery store right now, there’s absolutely no chance that model can answer that correctly, reliably. That is not within its capabilities, because the true data about those prices is not available to the model. The model might accidentally guess that a bag of carrots is $1.99 at Publix, but it’s just that, an accident. In the future, with chaining models together in agentic forms, there’s a chance we could develop a narrow model to do this kind of thing correctly, but right now it’s absolutely bogus. But people are asking LLMs these questions today! And when they get to the store, they’re very disappointed about being lied to by a technology that they thought was a magic answer box.


Developers: The Last Line of Defense Against AI Risks

Considering security early in the software development lifecycle has not traditionally been a standard practice amongst developers. Of course, this oversight is a goldmine for cybercriminals who exploit ML models to inject harmful malware into software. The lack of security training for developers makes the issue worse, particularly when AI-generated code, trained on potentially insecure open source data, is not adequately screened for vulnerabilities. Unfortunately, once AI/ML models integrate such code, the potential for undetected exploits only increases. Therefore, developers must also function as security champions, and DevOps and Security can no longer be considered separate functions. ... As AI continues to be implemented at scale by different teams, the need for advanced security in ML models is key. Enter the “Shift Left” approach, which advocates for integrating security measures early in the software lifecycle to get ahead and prevent as many future vulnerabilities as possible and ensure comprehensive security throughout the development process. This strategy is critical in AI/ML development, before they’re even deployed, to ensure the security and compliance of code and models, which often come from external sources and sometimes cannot be trusted.


How Leaders Can Leverage AI For Data Management And Decision-Making

“The real challenge isn’t just the cost of storing data—it’s making sense of it,” explains Nilo Rahmani, CEO of Thoras.ai. “An estimated 80% of incident resolution time is spent simply identifying the root cause, which is a costly inefficiency that AI can help solve.” AI-powered analytics can detect patterns, predict failures, and automate troubleshooting, reducing downtime and improving reliability. By leveraging AI, companies can streamline their data operations while increasing speed and accuracy in decision-making. Effective data management extends beyond simple storage—it requires real-time intelligence to ensure organizations are using the right data at the right time. AI plays a critical role in distinguishing meaningful data from noise, helping companies focus on insights that drive growth. ... AI is poised to revolutionize data management, but success will depend on how well organizations integrate it into their existing frameworks. Companies that embrace AI-driven automation, predictive analytics, and proactive infrastructure management will not only reduce costs but also gain a competitive edge by making faster, smarter decisions. Leaders must shift their focus from simply collecting and storing data to using it intelligently. 


Ramping Up AI Adoption in Local Government

One of the biggest barriers stopping local authorities from embracing AI is the lack of knowledge and misunderstanding around the technology. For many years the fear of the unknown has caused confusion, with numerous news articles claiming modern technology poses a threat to humanity. This could not be further from the truth. ... One key area that is missing from the AI Opportunities Actions Plan is managing and upskilling workers. People are core to every transformation, even ones that are digitally focused. To truly unlock the power of AI, employees need to be supported and trained in a judgement free space, allowing them to disclose any concerns or areas of support. After years of fear-mongering some employees may be more hesitant to engage with an AI transformation. Therefore, it’s up to leaders to adopt a top-down approach to promoting and embracing AI in the workplace. To begin, a skills audit should be conducted, assessing the existing knowledge and experiences with AI-related skills. Based on this, customised training plans can be developed to ensure everyone within the organisation feels supported and confident. It’s important for leaders to emphasise that a digital transformation doesn’t mean job cuts, but rather, takes away the time-consuming jobs and allows staff to focus on higher value, creative and strategic work.

Daily Tech Digest - January 30, 2025


Quote for the day:

"Uncertainty is not an indication of poor leadership; it underscores the need for leadership." -- Andy Stanley


Doing authentication right

Like encryption, authentication is one of those things that you are tempted to “roll your own” but absolutely should not. The industry has progressed enough that you should definitely “buy and not build” your authentication solution. Plenty of vendors offer easy-to-implement solutions and stay diligently on top of the latest security issues. Authentication also becomes a tradeoff between security and a good user experience. ... Passkeys are a relatively new technology and there is a lot of FUD floating around out there about them. The bottom line is that they are safe, secure, and easy for your users. They should be your primary way of authenticating. Several vendors make implementing passkeys not much harder than inserting a web component in your application. ... Forcing users to use hard-to-remember passwords means they will be more likely to write them down or use a simple password that meets the requirements. Again, it may seem counterintuitive, but XKCD has it right. In addition, the longer the password, the harder it is to crack. Let your users create long, easy-to-remember passwords rather than force them to use shorter, difficult-to-remember passwords. ... Six digits is the outer limit for OTP links, and you should consider shorter ones. Under no circumstances should you require OTPs longer than six digits because they are vastly harder for users to keep in short-term memory.


Augmenting Software Architects with Artificial Intelligence

Technical debt is mistakenly thought of as just a source code problem, but the concept is also applicable to source data (this is referred to as data debt) as well as your validation assets. AI has been used for years to analyze existing systems to identify potential opportunities to improve the quality (to pay down technical debt). SonarQube, CAST SQG and BlackDuck’s Coverity Static Analysis statically analyze existing code. Applitools Visual AI dynamically finds user interface (UI) bugs and Veracode’s DAST to find runtime vulnerabilities in web apps. The advantages of this use case are that it pinpoints aspects of your implementation that potentially should be improved. As described earlier, AI tooling offers to the potential for greater range, thoroughness, and trustworthiness of the work products as compared with that of people. Drawbacks to using AI-tooling to identify technical debt include the accuracy, IP, and privacy risks described above. ... As software architects we regularly work with legacy implementations that they need to leverage and often evolve. This software is often complex, using a myriad of technologies for reasons that have been forgotten over time. Tools such as CAST Imaging visualizes existing code and ChartDB visualizes legacy data schemas to provide a “birds-eye view” of the actual situation that you face.


Keep Your Network Safe From the Double Trouble of a ‘Compound Physical-Cyber Threat'

Your first step should be to evaluate the state of your company’s cyber defenses, including communications and IT infrastructure, and the cybersecurity measures you already have in place—identifying any vulnerabilities and gaps. One vulnerability to watch for is a dependence on multiple security platforms, patches, policies, hardware, and software, where a lack of tight integration can create gaps that hackers can readily exploit. Consider using operational resilience assessment software as part of the exercise, and if you lack the internal know-how or resources to manage the assessment, consider enlisting a third-party operational resilience risk consultant. ... Aging network communications hardware and software, including on-premises systems and equipment, are top targets for hackers during a disaster because they often include a single point of failure that’s readily exploitable. The best counter in many cases is to move the network and other key communications infrastructure (a contact center, for example) to the cloud. Not only do cloud-based networks such as SD-WAN, (software-defined wide area network) have the resilience and flexibility to preserve connectivity during a disaster, they also tend to come with built-in cybersecurity measures.


California’s AG Tells AI Companies Practically Everything They’re Doing Might Be Illegal

“The AGO encourages the responsible use of AI in ways that are safe, ethical, and consistent with human dignity,” the advisory says. “For AI systems to achieve their positive potential without doing harm, they must be developed and used ethically and legally,” it continues, before dovetailing into the many ways in which AI companies could, potentially, be breaking the law. ... There has been quite a lot of, shall we say, hyperbole, when it comes to the AI industry and what it claims it can accomplish versus what it can actually accomplish. Bonta’s office says that, to steer clear of California’s false advertising law, companies should refrain from “claiming that an AI system has a capability that it does not; representing that a system is completely powered by AI when humans are responsible for performing some of its functions; representing that humans are responsible for performing some of a system’s functions when AI is responsible instead; or claiming without basis that a system is accurate, performs tasks better than a human would, has specified characteristics, meets industry or other standards, or is free from bias.” ... Bonta’s memo clearly illustrates what a legal clusterfuck the AI industry represents, though it doesn’t even get around to mentioning U.S. copyright law, which is another legal gray area where AI companies are perpetually running into trouble.


Knowledge graphs: the missing link in enterprise AI

Knowledge graphs are a layer of connective tissue that sits on top of raw data stores, turning information into contextually meaningful knowledge. So in theory, they’d be a great way to help LLMs understand the meaning of corporate data sets, making it easier and more efficient for companies to find relevant data to embed into queries, and making the LLMs themselves faster and more accurate. ... Knowledge graphs reduce hallucinations, he says, but they also help solve the explainability challenge. Knowledge graphs sit on top of traditional databases, providing a layer of connection and deeper understanding, says Anant Adya, EVP at Infosys. “You can do better contextual search,” he says. “And it helps you drive better insights.” Infosys is now running proof of concepts to use knowledge graphs to combine the knowledge the company has gathered over many years with gen AI tools. ... When a knowledge graph is used as part of the RAG infrastructure, explicit connections can be used to quickly zero in on the most relevant information. “It becomes very efficient,” said Duvvuri. And companies are taking advantage of this, he says. “The hard question is how many of those solutions are seen in production, which is quite rare. But that’s true of a lot of gen AI applications.”


U.S. Copyright Office says AI generated content can be copyrighted — if a human contributes to or edits it

The Copyright Office determined that prompts are generally instructions or ideas rather than expressive contributions, which are required for copyright protection. Thus, an image generated with a text-to-image AI service such as Midjourney or OpenAI’s DALL-E 3 (via ChatGPT), on its own could not qualify for copyright protection. However, if the image was used in conjunction with a human-authored or human-edited article (such as this one), then it would seem to qualify. Similarly, for those looking to use AI video generation tools such as Runway, Pika, Luma, Hailuo, Kling, OpenAI Sora, Google Veo 2 or others, simply generating a video clip based on a description would not qualify for copyright. Yet, a human editing together multiple AI generated video clips into a new whole would seem to qualify. The report also clarifies that using AI in the creative process does not disqualify a work from copyright protection. If an AI tool assists an artist, writer or musician in refining their work, the human-created elements remain eligible for copyright. This aligns with historical precedents, where copyright law has adapted to new technologies such as photography, film and digital media. ... While some had called for additional protections for AI-generated content, the report states that existing copyright law is sufficient to handle these issues.


From connectivity to capability: The next phase of private 5G evolution

Faster connectivity is just one positive aspect of private 5G networks; they are the basis of the current digital era. These networks outperform conventional public 5G capabilities, giving businesses incomparable control, security, and flexibility. For instance, private 5G is essential to the seamless connection of billions of devices, ensuring ultra-low latency and excellent reliability in the worldwide IoT industry, which has the potential to reach $650.5 billion by 2026, as per Markets and Markets. Take digital twins, for example—virtual replicas of physical environments such as factories or entire cities. These replicas require real-time data streaming and ultra-reliable bandwidth to function effectively. Private 5G enables this by delivering consistent performance, turning theoretical models into practical tools that improve operational efficiency and decision-making. ... Also, for sectors that rely on efficiency and precision, the private 5G is making big improvements in this area. For instance, in the logistics sector, it connects fleets, warehouses, and ports with fast, low-latency networks, streamlining operations throughout the supply chain. In fleet management, private 5G allows real-time tracking of vehicles, improving route planning and fuel use. 


American CISOs should prepare now for the coming connected-vehicle tech bans

The rule BIS released is complex and intricate and relies on many pre-existing definitions and policies used by the Commerce Department for different commercial and industrial matters. However, in general, the restrictions and compliance obligations under the rule affect the entire US automotive industry, including all-new, on-road vehicles sold in the United States (except commercial vehicles such as heavy trucks, for which rules will be determined later.) All companies in the automotive industry, including importers and manufacturers of CVs, equipment manufacturers, and component suppliers, will be affected. BIS said it may grant limited specific authorizations to allow mid-generation CV manufacturers to participate in the rule’s implementation period, provided that the manufacturers can demonstrate they are moving into compliance with the next generation. ... Connected vehicles and related component suppliers are required to scrutinize the origins of vehicle connectivity systems (VCS) hardware and automated driving systems (ADS) software to ensure compliance. Suppliers must exclude components with links to the PRC or Russia, which has significant implications for sourcing practices and operational processes.


What to know about DeepSeek AI, from cost claims to data privacy

"Users need to be aware that any data shared with the platform could be subject to government access under China's cybersecurity laws, which mandate that companies provide access to data upon request by authorities," Adrianus Warmenhoven, a member of NordVPN's security advisory board, told ZDNET via email. According to some observers, the fact that R1 is open-source means increased transparency, giving users the opportunity to inspect the model's source code for signs of privacy-related activity. Regardless, DeepSeek also released smaller versions of R1, which can be downloaded and run locally to avoid any concerns about data being sent back to the company (as opposed to accessing the chatbot online). ... "DeepSeek's new AI model likely does use less energy to train and run than larger competitors' models," confirms Peter Slattery, a researcher on MIT's FutureTech team who led its Risk Repository project. "However, I doubt this marks the start of a long-term trend in lower energy consumption. AI's power stems from data, algorithms, and compute -- which rely on ever-improving chips. When developers have previously found ways to be more efficient, they have typically reinvested those gains into making even bigger, more powerful models, rather than reducing overall energy usage."


The AI Imperative: How CIOs Can Lead the Charge

For CIOs, AGI will take this to the next level. Imagine systems that don't just fix themselves but also strategize, optimize and innovate. AGI could automate 90% of IT operations, freeing up teams to focus on strategic initiatives. It could revolutionize cybersecurity by anticipating and neutralizing threats before they strike. It could transform data into actionable insights, driving smarter decisions across the organization. The key is to begin incrementally, prove the value and scale strategically. AGI isn't just a tool; it's a game-changer. ... Cybersecurity risks are real and imminent. Picture this: you're using an open-source AI model and suddenly, your system gets hacked. Turns out, a malicious contributor slipped in some rogue code. Sounds like a nightmare, right? Open-source AI is powerful, but has its fair share of risks. Vulnerabilities in the code, supply chain attacks and lack of appropriate vendor support are absolutely real concerns. But this is true for any new technology. With the right safeguards, we can minimize and mitigate these risks. Here's what I recommend: Regularly review and update open-source libraries. CIOs should encourage their teams to use tools like software composition analysis to detect suspicious changes. Train your team to manage and secure open-source AI deployments. 

Daily Tech Digest - January 29, 2025


Quote for the day:

"Added pressure and responsibility should not change one's leadership style, it should merely expose that which already exists." -- Mark W. Boyer


Evil Models and Exploits: When AI Becomes the Attacker

A more structured threat emerges with technologies like the Model Context Protocol (MCP). Originally introduced by Anthropic, MCP allows large language models (LLMs) to interact with host machines via JavaScript APIs. This enables LLMs to perform sophisticated operations by controlling local resources and services. While MCP is being embraced by developers for legitimate use cases, such as automation and integration, its darker implications are clear. An MCP-enabled system could orchestrate a range of malicious activities with ease. Think of it as an AI-powered operator capable of executing everything from reconnaissance to exploitation. ... The proliferation of AI models is both a blessing and a curse. Platforms like Hugging Face host over a million models, ranging from state-of-the-art neural networks to poorly designed or maliciously altered versions. Amid this abundance lies a growing concern: model provenance. Imagine a widely used model, fine-tuned by a seemingly reputable maintainer, turning out to be a tool of a state actor. Subtle modifications in the training data set or architecture could embed biases, vulnerabilities or backdoors. These “evil models” could then be distributed as trusted resources, only to be weaponized later. This risk underscores the need for robust mechanisms to verify the origins and integrity of AI models.


The tipping point for Generative AI in banking

Advancements in AI are allowing banks and other fintechs to embed the technology across their entire value chain. For example, TBC is leveraging AI to make 42% of all payment reminder calls to customers with loans that are up to 30 days or less overdue and is getting ready to launch other AI-enabled solutions. Customers normally cannot differentiate the AI calls powered by our tech from calls by humans, even as the AI calls are ten times more efficient for TBC’s bottom line, compared with human operator calls. Klarna rolled out an AI assistant, which handled 2.3 million conversations in its first month of operation, which accounts for two-thirds of Klarna’s customer service chats or the workload of 700 full-time agents, the company estimated. Deutsche Bank leverages generative AI for software creation and managing adverse media, while the European neobank Bunq applies it to detect fraud. Even smaller regional players, provided they have the right tech talent in place, will soon be able to deploy Gen AI at scale and incorporate the latest innovations into their operations. Next year is set to be a watershed year when this step change will create a clear division in the banking sector between AI-enabled champions and other players that will soon start lagging behind. 


Want to be an effective cybersecurity leader? Learn to excel at change management

Security should never be an afterthought; the change management process shouldn’t be, either, says Michael Monday, a managing director in the security and privacy practice at global consulting firm Protiviti. “The change management process should start early, before changing out the technology or process,” he says. “There should be some messages going out to those who are going to be impacted letting them know, [otherwise] users will be surprised, they won’t know what’s going on, business will push back and there will be confusion.” ... “It’s often the CISO who now has to push these new things,” says Moyle, a former CISO, founding partner of the firm SecurityCurve, and a member of the Emerging Trends Working Group with the professional association ISACA. In his experience, Moyle says he has seen some workers more willing to change than others and learned to enlist those workers as allies to help him achieve his goals. ... When it comes to the people portion, she tells CISOs to “feed supporters and manage detractors.” As for process, “identify the key players for the security program and understand their perspective. There are influencers, budget holders, visionaries, and other stakeholders — each of which needs to be heard, and persuaded, especially if they’re a detractor.”


Preparing financial institutions for the next generation of cyber threats

Collaboration between financial institutions, government agencies, and other sectors is crucial in combating next-generation threats. This cooperative approach enhances the ability to detect, respond to, and mitigate sophisticated threats more effectively. Visa regularly works with international agencies of all sizes to bring cybercriminals to justice. In fact, Visa regularly works alongside law enforcement, including the US Department of Justice, FBI, Secret Service and Europol, to help identify and apprehend fraudsters and other criminals. Visa uses its AI and ML capabilities to identify patterns of fraud and cybercrime and works with law enforcement to find these bad actors and bring them to justice. ... Financial institutions face distinct vulnerabilities compared to other industries, particularly due to their role in critical infrastructure and financial ecosystems. As high-value targets, they manage large sums of money and sensitive information, making them prime targets for cybercriminals. Their operations involve complex and interconnected systems, often including legacy technologies and numerous third-party vendors, which can create security gaps. Regulatory and compliance challenges add another layer of complexity, requiring stringent data protection measures to avoid hefty fines and maintain customer trust.


Looking back to look ahead: from Deepfakes to DeepSeek what lies ahead in 2025

Enterprises increasingly turned to AI-native security solutions, employing continuous multi-factor authentication and identity verification tools. These technologies monitor behavioral patterns or other physical world signals to prove identity —innovations that can now help prevent incidents like the North Korean hiring scheme. However, hackers may now gain another inside route to enterprise security. The new breed of unregulated and offshore LLMs like DeepSeek creates new opportunities for attackers. In particular, using DeepSeek’s AI model gives attackers a powerful tool to better discover and take advantage of the cyber vulnerabilities of any organization. ... Deepfake technology continues to blur the lines between reality and fiction. ... Organizations must combat the increasing complexity of identity fraud, hackers, cyber security thieves, and data center poachers each year. In addition to all of the threats mentioned above, 2025 will bring an increasing need to address IoT and OT security issues, data protection in the third-party cloud and AI infrastructure, and the use of AI agents in the SOC. To help thwart this year’s cyber threats, CISOs and CTOs must work together, communicate often, and identify areas to minimize risks for deepfake fraud across identity, brand protection, and employee verification.


The Product Model and Agile

First, the product model is not new; it’s been out there for more than 20 years. So I have never argued that the product model is “the next new thing,” as I think that’s not true. Strong product companies have been following the product model for decades, but most companies around the world have only recently been exposed to this model, which is why so many people think of it as new. Second, while I know this irritates many people, today there are very different definitions of what it even means to be “Agile.” Some people consider SAFe as Agile. If that’s what you consider Agile, then I would say that Agile plays no part in the product model, as SAFe is pretty much the antithesis of the product model. This difference is often characterized today as “fake Agile” versus “real Agile.” And to be clear, if you’re running XP, or Kanban, or Scrum, or even none of the Agile ceremonies, yet you are consistently doing continuous deployment, then at least as far as I’m concerned, you’re running “real Agile.” Third, we should separate the principles of Agile from the various, mostly project management, processes that have been set up around those principles. ... Finally, it’s also important to point out that there is one Agile principle that might be good enough for custom or contract software work, but is not sufficient for commercial product work. This is the principle that “working software is the primary measure of progress.”


Next Generation Observability: An Architectural Introduction

It's always a challenge when creating architectural content, trying to capture real-world stories into a generic enough format to be useful without revealing any organization's confidential implementation details. We are basing these architectures on common customer adoption patterns. That's very different from most of the traditional marketing activities usually associated with generating content for the sole purpose of positioning products for solutions. When you're basing the content on actual execution in solution delivery, you're cutting out the marketing chuff. This observability architecture provides us with a way to map a solution using open-source technologies focusing on the integrations, structures, and interactions that have proven to work at scale. Where those might fail us at scale, we will provide other options. What's not included are vendor stories, which are normal in most marketing content. Those stories that, when it gets down to implementation crunch time, might not fully deliver on their promises. Let's look at the next-generation observability architecture and explore its value in helping our solution designs. The first step is always to clearly define what we are focusing on when we talk about the next-generation observability architecture.


AI SOC Analysts: Propelling SecOps into the future

Traditional, manual SOC processes already struggling to keep pace with existing threats are far outpaced by automated, AI-powered attacks. Adversaries are using AI to launch sophisticated and targeted attacks putting additional pressure on SOC teams. To defend effectively, organizations need AI solutions that can rapidly sort signals from noise and respond in real time. AI-generated phishing emails are now so realistic that users are more likely to engage with them, leaving analysts to untangle the aftermath—deciphering user actions and gauging exposure risk, often with incomplete context. ... The future of security operations lies in seamless collaboration between human expertise and AI efficiency. This synergy doesn't replace analysts but enhances their capabilities, enabling teams to operate more strategically. As threats grow in complexity and volume, this partnership ensures SOCs can stay agile, proactive, and effective. ... Triaging and investigating alerts has long been a manual, time-consuming process that strains SOC teams and increases risk. Prophet Security changes that. By leveraging cutting-edge AI, large language models, and advanced agent-based architectures, Prophet AI SOC Analyst automatically triages and investigates every alert with unmatched speed and accuracy.


Apple researchers reveal the secret sauce behind DeepSeek AI

The ability to use only some of the total parameters of a large language model and shut off the rest is an example of sparsity. That sparsity can have a major impact on how big or small the computing budget is for an AI model. AI researchers at Apple, in a report out last week, explain nicely how DeepSeek and similar approaches use sparsity to get better results for a given amount of computing power. Apple has no connection to DeepSeek, but Apple does its own AI research on a regular basis, and so the developments of outside companies such as DeepSeek are part of Apple's continued involvement in the AI research field, broadly speaking. In the paper, titled "Parameters vs FLOPs: Scaling Laws for Optimal Sparsity for Mixture-of-Experts Language Models," posted on the arXiv pre-print server, lead author Samir Abnar of Apple and other Apple researchers, along with collaborator Harshay Shah of MIT, studied how performance varied as they exploited sparsity by turning off parts of the neural net. ... Abnar and team ask whether there's an "optimal" level for sparsity in DeepSeek and similar models, meaning, for a given amount of computing power, is there an optimal number of those neural weights to turn on or off? It turns out you can fully quantify sparsity as the percentage of all the neural weights you can shut down, with that percentage approaching but never equaling 100% of the neural net being "inactive."


What Data Literacy Looks Like in 2025

“The foundation of data literacy lies in having a basic understanding of data. Non-technical people need to master the basic concepts, terms, and types of data, and understand how data is collected and processed,” says Li. “Meanwhile, data literacy should also include familiarity with data analysis tools. ... “Organizations should also avoid the misconception that fostering GenAI literacy alone will help developing GenAI solutions. For this, companies need even greater investments in expert AI talent -- data scientists, machine learning engineers, data engineers, developers and AI engineers,” says Carlsson. “While GenAI literacy empowers individuals across the workforce, building transformative AI capabilities requires skilled teams to design, fine-tune and operationalize these solutions. Companies must address both.” ... “Data literacy in 2025 can’t just be about enabling employees to work with data. It needs to be about empowering them to drive real business value,” says Jain. “That’s how organizations will turn data into dollars and ensure their investments in technology and training actually pay off.” ... “Organizations can embed data literacy into daily operations and culture by making data-driven thinking a core part of every role,” says Choudhary.