Armilla Review - Unveiling AI's Impact: Turmoil at OpenAI, Legal Battles, and Global Governance

The Armilla Review is a weekly digest of important news from the AI industry, the market, government and academia tailored to the interests of our community: regarding AI evaluation, assurance, and risk.
November 22, 2023
5 min read

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Inside OpenAI: Turmoil, Coup, and AI's Global Impact

The upheaval at OpenAI unfolded as a board-led ousting removed CEO Sam Altman over undisclosed reasons, revealing underlying tensions. The division primarily centers on differing viewpoints regarding the safety of AI, pitting proponents of rapid deployment for stress-testing against those advocating cautious, controlled development within a laboratory setting. Altman's departure highlights the discord between two camps: chief scientist Ilya Sutskever's safety-focused concerns clashed with Altman's growth-oriented vision, reflecting broader concerns within the tech community about the potential uncontrollability of hyper-intelligent AI. Altman's departure sparked chaos, with the board appointing Emmett Shear as interim CEO and Microsoft offering positions to Altman's team, igniting a mass employee exodus threat. The saga reflects a larger struggle over responsibly managing powerful AI tools and raises concerns about corporate influence in the AI landscape and its potential global implications.

Source: Reuters

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Proposed Class Action Lawsuit Alleges UnitedHealth AI Unjustly Denies Elderly Care Claims

In a proposed class action lawsuit filed against UnitedHealth Group Inc, plaintiffs claim that the insurer's AI algorithm, nH Predict, systematically denies elderly patients' claims for necessary extended care, leading families to pay out of pocket for medically needed services. The lawsuit, seeking to represent a nationwide class of Medicare Advantage insurance plan holders, highlights the misuse of AI in healthcare and alleges that UnitedHealth's algorithm inaccurately evaluates claims, with the majority of denials later overturned upon appeal.

Source: Reuters

Big Three EU Economies Stall EU's AI Regulation, Threaten Landmark Law

France, Germany, and Italy's resistance to strict regulations on advanced AI, particularly foundation models, has disrupted negotiations over the European Union's pioneering Artificial Intelligence Act. The trio's push against regulating these powerful AI infrastructure elements jeopardizes the legislation, setting the three major economies against European lawmakers who aim to impose stronger controls. The deadlock raises concerns that failure to address cutting-edge AI models may result in a law that heavily regulates benign AI while leaving the most potentially harmful systems unregulated, posing a significant risk to the EU's AI governance efforts.

Source: Politico

Global AI Governance: Themes and Considerations from a Landmark Week in Policy Development

The week of October 30, 2023, was pivotal for global AI policy, marked by significant events like the signing of a comprehensive Executive Order in the US and international discussions on AI risks in the UK. Emerging themes highlighted the shift towards regulating AI technology itself, the importance of a risk-based approach, and the emphasis on red-teaming for AI risk management. The focus on defining "frontier models," determining regulatory approaches, articulating risks, and integrating international standards underscored the need for ongoing collaboration among nations in shaping AI governance.

Source: Atlantic Council

Ethical Challenges and Innovation in AI: Insights from the Insurance Industry

In a recent roundtable discussion, experts from Definity and Google in Canada explored the evolving landscape of AI in insurance. While AI has significantly enhanced various facets of the industry, including claims processing and customer experience, concerns about potential biases in AI models, and their amplification of societal biases, have emerged as crucial ethical imperatives. Elizabeth Bellefleur-MacCaul highlighted the need for a comprehensive framework to address biases, emphasizing the significance of understanding underlying assumptions and methodologies in AI models to mitigate these risks.

Source: Insurance Business

Survey Reveals AI-Generated White Faces More Convincing Than Real Photos, Raises Concerns Over Implications and Bias

A recent study unveils a startling finding: individuals are more likely to perceive AI-generated white faces as authentic compared to real human photographs. Conducted by researchers from multiple countries, the study indicates that AI-generated images of white individuals were deemed more realistic, posing significant implications in areas like identity theft and societal biases, potentially confounding perceptions of race with being "human." The study underscores the urgent need to address biases in AI systems as they increasingly infiltrate various aspects of modern life.

Source: The Guardian

Consumers Optimistic About Generative AI's Potential in Transforming Healthcare Affordability and Accessibility

A Deloitte survey reveals promising consumer sentiment regarding Generative AI's role in revolutionizing healthcare. With over half of respondents believing it could enhance healthcare access and almost half anticipating affordability improvements, the study highlights consumer trust in Generative AI's reliability for health-related information. However, the survey also exposes reservations concerning AI's involvement in critical healthcare decisions, underscoring the need for transparent processes and regulatory frameworks to align with consumer preferences in healthcare AI applications.

Source: PR Newswire

AI in Law: Boon or Bust? Unveiling the Risks and Rewards

The integration of artificial intelligence (AI) in legal practices has presented both opportunities and challenges. Instances of AI tools, particularly ChatGPT, aiding overwhelmed lawyers in drafting briefs and conducting e-discovery have surfaced. However, these conveniences come at a cost, with reports of fabricated legal citations leading to dismissals, fines, and case rejections. The influx of AI in the legal realm has raised ethical, accuracy, and accountability concerns, prompting deliberations among legal bodies on regulations, honor codes, and the role of AI in courtroom proceedings. Despite the setbacks, the adoption of AI in law continues to expand, signaling a transformative shift in legal operations and necessitating careful consideration of its implications.

Source: The Washington Post

Microsoft Ignite 2023: Revolutionizing Work with AI Advancements

At Microsoft Ignite 2023, the tech giant presents a range of advancements propelling AI-driven transformations across industries. Focusing on Copilot's impact, Microsoft unveils staggering productivity gains, signalling the potential to redefine work dynamics. Among the numerous announcements, key highlights include Microsoft's innovative cloud infrastructure, the extension of Copilot offerings, enhanced data and AI connections, and an array of tools and models empowering developers while ensuring responsible AI deployment. Strengthening defenses against evolving threats through security solutions marks another significant stride unveiled at the event.

Source: Microsoft