Month: August 2024

Microsoft now sees OpenAI as a competitor in AI and search

August 1, 2024 /

Even though Microsoft invested $13 billion in OpenAI, the relationship between the two companies has deteriorated significantly in recent months.

Microsoft has decided to put OpenAI on its list of competitors, due to the fact that the companies are now competing with each other in terms of both artificial intelligence and online search. (OpenAI last week showed off a preview version of Search GPT, a search engine that could eventually become a serious challenger to Microsoft’s Bing.)

In the past, Microsoft has singled out Amazon, Apple, Google and Meta as its main competitors, according to CNBC .

Apple adds ‘black magic’ AI security to Swift

August 1, 2024 /

Homomorphic encryption is a phrase that might never make it to everybody’s lips, but the technology will become part of what we do each day, thanks to Apple, Swift and the need for artificial intelligence (AI) in the cloud. It’s a privacy-protecting technology that lets you secure data in the cloud, work on that data using cloud services, and do all that without anyone other than you knowing what your data is. 

Why does this matter?

Think about it this way. When we store data in the cloud, we already use technology to lock that data down so no one, including the people running the servers, can access it. It’s like putting your data in a safety deposit box only you can open. 

But what we do with cloud data is changing rapidly as a multitude of services appear that let you use powerful AI systems to work with it. To do so, the servers must access your information — they need to open that safety deposit box to work with the information it contains, which makes your data less secure.

What can be done to make it possible to use AI services while leaving data secure? Homomorphic encryption seems to be the answer. 

MIT Professor, Vinod Vaikuntanathan calls that process “black magic” in this video that very clearly explains some of the intricacies of homomorphic encryption. That’s because the encryption tech makes it possible for the server to put its hands inside the safety deposit box and work with data without ever accessing or even knowing what it is working with.

Leaving that data encrypted unlocks the power of cloud-based AI, while also building in privacy. I expect the tech will see use in Private Cloud Compute, though it is not certain to what extent it will be capable of handling large and complex tasks at this point.

How is Apple boosting homomorphic encryption?

Apple already uses homomorphic encryption. Now, it has introduced a new open source Swift package for homomorphic encryption. 

The rationale here is obvious. Unlike so many in the industry, Apple prioritizes user privacy, which it sees as a human right. It is quite plausible that one of the challenges it faced on its road to generative AI has been the need for more complex cloud-based computations to access core data, which conflicts with the company’s privacy goal. The deployment of homomorphic encryption marries those two conflicting aims.

Apple isn’t going quite so far as to say it is about that, even though it evidently is. Instead, it talks about how it uses the tech in its Live Caller ID Lookup feature, which provides caller ID and spam blocking services. In use, this lets Lookup interrogate a server for information pertaining to a phone number without that server ever actually accessing the number itself.

What is a typical workflow?

On its Github page sharing the tech, Apple explains what a typical homomorphic encryption workflow might be:

  • The client encrypts sensitive data and sends the resulting ciphertext to the server.
  • The server performs computation without learning what any ciphertext decrypts to.
  • The server sends the resulting ciphertext response to the client.
  • The client decrypts to learn the response.

Apple also provides its own explanation of homomorphic encryption:

“Homomorphic encryption (HE) is a cryptographic technique that enables computation on encrypted data without revealing the underlying unencrypted data to the operating process. It provides a means for clients to send encrypted data to a server, which operates on that encrypted data and returns a result that the client can decrypt. During the execution of the request, the server itself never decrypts the original data or even has access to the decryption key. Such an approach presents new opportunities for cloud services to operate while protecting the privacy and security of a user’s data, which is obviously highly attractive for many scenarios.”

Empowering next-generation AI — securely

Of course, there are challenges here around performance and speed, but it is plausible that Apple’s own servers might already be more than capable, given their computational capacity and low energy requirements. But given that the tech is also thought to be capable of providing data protection against quantum computer attacks, it is certain homomorphic encryption will now become an important force empowering AI on Apple’s platforms down the road.

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US to unveil more chip restrictions on China, but may exempt key firms

August 1, 2024 /

The Biden administration plans to introduce new restrictions on exporting semiconductor manufacturing equipment to China, but key companies including ASML and Tokyo Electron could be exempt, Reuters reports.

The latest measure aims to continue limiting China’s access to critical technology while preserving trade relations with key US allies, including Japan, the Netherlands, and South Korea.

Companies likely to be affected by the new restrictions include those from Israel, Taiwan, Singapore, and Malaysia.

Any exemption would be a relief for the industry, as compliance with export restrictions presents a complex challenge. Many impacted companies are significant contributors to their respective economies, and China is their major market.

“On one hand, they have to remain loyal to the US government, but at the same time, they take a revenue hit by not exporting to China,” said Neil Shah, partner and co-founder at Counterpoint Research. “On the other hand, many semiconductor companies, from equipment manufacturers to fab operators to chipmakers, used to derive 25-45% of their revenue from China, given the country’s sheer scale and ambitions.”

ASML, the world’s leading supplier of semiconductor manufacturing equipment, had its former CEO reportedly say that he had attempted to prevent the tightening of export restrictions.

Impact on supply chain

The exemption for ASML and Tokyo Electron would allow Chinese manufacturers to access critical lithography and etching equipment, maintaining their semiconductor production capabilities.

Analysts point out that this could lead to increased global competition and spur innovation among the exempted countries, benefiting the semiconductor ecosystem in the US and its allies.

“US tech companies may benefit from a more stable supply chain, as the continued supply of advanced equipment to Chinese manufacturers could prevent disruptions that might arise from a complete embargo,” said Rani Ratna, senior research manager at IDC. “This is an important strategy for the US to maintain a competitive edge in advanced technology development, especially in AI and Supercomputing applications, where semiconductor performance is critical. Winning the AI and AGI race is more important than ever, and US companies aim to lead this race, with this strategy providing short-term benefits.”

The move is also expected to benefit the companies financially. ASML shares jumped following news of the possible exemption.

“The positive impact of this exemption would be significant for the earnings of the respective companies, and even more so for China,” Shah said. “Including China back in the market would allow these companies to benefit from increased scale, meaning they wouldn’t need to raise their prices to maintain scalability.”

Reasons for caution

However, analysts caution that the exact details of the rule are still in draft form and may change before official publication. More importantly, given the geopolitical situation, the possibility of additional restrictions later cannot be dismissed.

“The US government may still impose additional limitations using the Foreign Direct Product Rule (FDPR), potentially restricting the sale of certain advanced tools to China,” said Charlie Dai, VP and principal analyst at Forrester. “On one hand, this will further hinder China’s pace of innovation, causing collateral damage to the global chipset supply chain and eventually affecting customers worldwide. On the other hand, China will likely accelerate its investment in chipset fabrication to achieve technology self-reliance.”

In response to US sanctions, China has launched a massive state-backed semiconductor fund valued at $47 billion (344 billion yuan) to strengthen its chip industry. Chinese tech giant Huawei has become a key player in advancing local chip production and development.

These are the skills you need to get hired in tech

August 1, 2024 /

Though the unemployment rate for tech workers remains near historic lows, there’s been a shift in the rate at which firms are hiring — and what they’re seeking in new prospects.

Coupled with a large number of layoffs last year at tech giants, the adoption of artificial intelligence (AI) has exploded, shifting what companies seek from more traditional roles to skills involving data, analytics, and machine learning.

Even as overall US hiring has slowed in recent months, IT will remain strong for the third quarter of 2024, according to the latest ManpowerGroup Employment Outlook Survey. The ManpowerGroup data, gathered from more than 6,000 employers across the US during April, showed that hiring outlooks are down 4% from Q2 and off 5% compared to the same period last year. The decrease indicates that US economic uncertainty continues to affect hiring. 

“In real time, we’re seeing a steady-as-they-go job market where demand remains strong, but it is softening in some sectors,” said Becky Frankiewicz, ManpowerGroup’s president of North America Region. “While tech hiring isn’t as robust as it used to be, software developers and IT generalists are the most in-demand roles in the US today.

To address skills gaps and remain competitive, employers need a dual approach, Frankiewicz said — attracting and retaining new workers as well as reskilling their existing workforce to transition to growth roles.

In a recent IDC Research survey, two-thirds of than 800 North American IT leaders said they’re experiencing a lack of skills that has resulted in missed revenue growth objectives, quality problems, and lower customer satisfaction.

The situation is not expected to get any better. IDC predicts that by 2026, more than 90% of organizations worldwide will feel the IT skills crisis, amounting to some $5.5 trillion in losses caused by product delays, impaired competitiveness, and loss of business.

Moving away from a ‘candidate-driven’ market

Jennifer Schielke, CEO of IT staffing and recruiting firm Summit Group Solutions, said the IT industry is shifting from a candidate-driven market to one where multiple factors are at play.   On one hand, “major players” such as like Microsoft, Google, Amazon, Meta, T-Mobile, and Expedia, have announced significant layoffs due to over-hiring during the pandemic. On the other, small-to-medium businesses (SMSs) are finally getting a shot at closing skills gaps.

That can prove advantageous for tech workers who might otherwise be locked into a corporate pay scale and roles that typically do not change quickly. “Working for [large] companies that offer salaries or compensation packages higher than the average small or mid-sized business limits your options,” Schielke said. “You end up confined to the circle of giants to maintain the desired salary range.”

Additionally, job candidates’ demands often don’t align with traditional large employer expectations. For example, enterprises tend to be less flexible, especially regarding fully remote work, “which is in high demand, but not always feasible for employers to provide,” Schielke said.

Both data and studies have have shown organizations — including the US federal government — are dropping the traditional four-year college degree from job postings, opting instead for technical hard and soft skills or specific personality traits.

By eliminating unnecessary and outdated degree requirements, employers open themselves up to a larger talent pool of would-be hires with skills learned through on-the-job training, boot camps, and certificate programs. “This creates greater diversity and engenders a more creative culture, leading to improved problem solving and idea generation, as well as facilitating skills and knowledge sharing,” said Job van der Voort, CEO of Remote, a global HR and payroll services company.

For example, tech bootcamp graduates, including coding bootcamps, report quickly finding full-time jobs, a quick return on their educational investment, higher salaries, and better STEM career opportunities.

Fiona Mark, a principal analyst at Forrester Research, said while she has seen organizations move away from requiring college degrees, there’s on-going interest in certifications, particularly in cloud and security areas. AI and data skills — data science, analytics, data management — are all showing growth in demand, she said, as are cloud and infrastructure skills needed to support AI environments.

Developer demand is down from its highs of 2020-2021, but organizations still need developers to support digital initiatives and enhanced customer experience, according to Mark. “What has shifted in the marketplace is not just the skillset, but experience in using that skillset. Years of experience is often being used as a proxy for skill proficiency, and the demand for workers with less experience is down from 40% of tech roles in 2021 to around a quarter of tech roles in 2023,” she said.

That’s creating a challenge in the tech labor market, as less experienced or early career workers struggle to enter the workforce, and it reduces the future pipeline for f experienced workers.

As part of the hiring process, an organization is more likely now to offer candidates real-life cases or projects to work on as a demonstration of a candidate’s ability.

What soft skills companies want

While soft skills are high on the list of what organizations want today, being able to actually perform the job requires hard skills. SHL, a talent acquisition and management platform, recently identified the top 10 soft skills employers seek. Specifically they want a worker who:

  • Considers strategic vision
  • Thinks broadly
  • Motivates and empowers others
  • Monitors markets and competitors
  • Considers financial impact
  • Drives Improvement
  • Applies functional expertise
  • Gains agreement
  • Demonstrates empathy
  • Learns quickly

A MarketPulse survey by payroll and HR firm ADP found something similar for companies (regardless of size) that value soft skills over traditional, industry-specific traits for potential hires. For surveyed companies, the highest ranked skills/traits prioritized in new hires included a strong work ethic, problem-Solving skills, and being detail oriented.

While soft skills are important, communicating them to a prospective employer can present a conundrum. Tina Wang, division vice president of human resources at ADP, said there are a few ways for job seekers to bring attention to their behavioral skills. It goes beyond just listing “strong work ethic” or “problem solving” on a resume, “though it’s good to add it there too,” she said.

Job seekers can incorporate behavior skills in a track record of job experiences. “For example, what was an example of ‘ability to work on a team’ at your previous job? Did you manage or actively participate in a long-term project with multiple internal teams and bring together various ideas from these teams into one cohesive strategy,” Wang said.

Soft skills during an interview, hard skills on the resume

An interview with a prospective employer is also a good time to introduce behavioral skills, but time is limited and job-seekers won’t likely be able to share all their demonstrated skills and experience. 

“Preparation will go a long way, so think through your talking points and what is important to share,” Wang said. “Think about a few applicable, real work experiences where you demonstrated these skills and sketch out how and when to bring them during the interview process.”

References can also be an excellent way to highlight behavioral skills. Intangibles such as a strong work ethic or attention to detail might be something former managers, team members or peers identify. “They likely have perfect examples when you demonstrated these skills that have become in such demand, and you might never have realized your skills were on full display in that instance,” Wang added.

While soft skills are in higher demand, hard skills — especially those learned on the job or through certification programs — are still in play.

In today’s dynamic job market, job seekers aim to stand out. With that in mind, MyPerfectResume  performed an analysis of 25,000 resumes created on its site and found the most frequently used skills posted by job seekers. The top five soft skills were time management; customer service; critical thinking; active listening; and attention to detail.

Meanwhile, SHL identified the top five hard skills as: project management; Microsoft Excel; Python; SQL; and Javascript.

Familiarity with how artificial intelligence (AI) platforms work and the ability to customize large language models (LLMs) through skills such as prompt engineering are also at the top of employee skills lists employers want. Data from research firm IDC indicates that 32% of business and IT leaders now expect advancing AI constructs such as genAI to save time and improve productivity. For example, genAI tools support greater access to diverse knowledge resources by enabling employees to access them using natural language queries.

“GenAI and skills are increasingly tightly related: Organizations spanning all industries and geographies face a widening shortage of all IT tech skills, regardless of those skills relating to security, cloud, IT service management, or AI itself,” IDC said in a recent report. “GenAI tools used in conjunction with or inside of tech training platforms can and do accelerate training.”

Far from eliminating jobs like other watershed moments in technology, AI is expected to create many more jobs that it eliminates.