Business
Page: 330
Ñengo Flow has signed an exclusive record contract with Rimas Entertainment in a bid for his international expansion, Billboard can announce today (Oct. 31). The alliance that includes touring, merchandising, and brand partnerships strategies, “marks a significant step in the evolution of the reggaeton genre pioneer, known for the distinctive touch of his rhymes and […]
Why are hip-hop and R&B still popular streaming-wise but less so on the live music front? How can superfans and generative AI help further music industry growth? Those are just two of the hot topics addressed in Trapital’s second annual report on major trends in music, media and hip-hop. Presented by the ticketing company DICE, 2023’s The Trapital Report is being released today (Oct. 31) in tandem with Billboard‘s exclusive first-look preview.
“This report is for the key decision makers in music, media and entertainment, the executives, founders and investors in the space,” Trapital founder Dan Runcie tells Billboard. “These are the people who are working actively to serve the artists that they work with. They’re working actively to provide an experience to the end consumers as well as fans. And to do that they need to be as close as possible to the current trends that are happening within the actual revenue. But looking fast forward, what are the things that they need to invest their time and money in? How do they better understand this audience? Our report is able to offer those insights.”
The report begins with a look at the slowing growth of streaming. While music streaming revenue was $17.5B in 2022 versus $15.7B in 2021, that only represents 11% growth. That percentage figure is down from 24%, 19% and 29% in prior years, per Trapital’s analysis of data from Luminate, MRC, Nielsen and the IFPI Global Music Report 2022.
Explains Runcie, “Streaming growth has started to slow down from a revenue perspective year over year, especially from the heights that we had seen in the pandemic. That has sparked a lot of industry discussions about how to split the pie like pushes to raise prices and increase the payouts to certain types of artists; reducing the noise and fraud. But I do think that the two big opportunities that the industry has to grow the overall pie is to look at the superfan and lean into generative AI.”
“I do think even alone on the streaming services, they have a lot of valuable data and understanding as to who the superfans are,” says Runcie. “And as well to all of the combinations of things that can be offered, whether it’s exclusive access to fans, community input … I think there are different ways to have different tiers to enable that.”
Acknowledging the intense discussions emanating over the use of generative AI, Runcie says the emerging technology represents another growth opportunity by increasing derivative work.
“Anytime in the history of recorded music, derivative work grows and that overall demand grows the pie,” he explains. “And it can do that because the underlying asset that a lot of popular derivative work comes from is work that the record labels already own. It’s what the rights holders already have. So being able to find the right attribution, being able to do it in a way that acknowledges both the safety and rights that the artists and the rights holders have, I think all of this is possible if you accept the fact that this isn’t necessarily a genie that’s going to go back in the bottle. It’s still very early, but no different than YouTube being able to figure out Content ID. The same can be possible for generative AI and allowing superfans to create making music, anything that enables that as that continues to grow, it only adds more value adds to the artists and the rights holders who have the valuable intellectual property.”
On the hip-hop front, the report notes the genre’s total global revenue rose slightly between 2021 ($2.72B) and 2022 ($2.78B). But its share of total revenue has dipped from 27.7% in 2021 to 26.8% in 2022. And while only three rap albums have hit No. 1 on the Billboard 200 in 2023 — Lil Uzi Vert’s Pink Tape, Travis Scott’s Utopia and Drake’s For All the Dogs — hip-hop still reigns as the top genre. It accounts for 33% of all albums on the Billboard 200, more than twice pop and rock combined at 16% each.
However, in the report section titled “From URL to IRL” it points out the glaring fact that despite hip-hop and R&B’s popularity in terms of streaming and social media, pop and rock still command the live music front: 27% of concert revenue/33% of streaming revenue in the U.S. versus 11% of concert revenue/27% of streaming revenue for R&B/hip-hop according to Trapital’s analysis of stats from Pollstar and Luminate.
The report explains the disconnect is related to several factors. Among them: that hip-hop artists didn’t consistently begin touring on a global arena level until the 2000s; the hesitancy on the part of concert promoters to book rap acts owing to violence and safety concerns even though “rock acts often had worse violence issues”; younger fan bases; and the fact that many hip-hop and R&B acts “have clustered around larger festivals like Rolling Loud, the club circuit and other festival appearances” which are more economical than paying for expensive concert tickets.
“This is something I’ve been eager to dig into,” says Runcie. “And I’m glad we were able to do it with this report. When you transition from stream URL to in real life, hip-hop and R&B don’t necessarily dominate in the same way. Even though we’ve seen hip-hop and R&B artists that have done arena tours like Drake, J. Cole, Kendrick Lamar and SZA, other hip-hop/R&B artists who’ve had very popular music haven’t quite gotten to that same point on the live music side.”
To that point, the report includes a breakdown of which artists can sell out a tour at each venue level. The list encompasses 30+ stadiums (Beyoncé, Taylor Swift, Ed Sheeran, The Weeknd, Lady Gaga), 10K+ arenas (SZA, Lizzo, Travis Scott, Kendrick Lamar, Miley Cyrus), 5K+ amphitheatres (Lil Uzi Vert, Janelle Monae, Wiz Khalifa, Lil Baby, A Boogie Wit Da Hoodie) and 2K+ ballrooms (Latto, Chloe Baily, Yeat, Denzel Curry, Glorilla).
Also of interest in The Trapital Report is a look at Latin music’s popularity, the largest DSPs and most valuable private companies, indie artist case stories, audience profiles, the most valuable songs streamed on Spotify and YouTube and the top 1% of artists in streaming. According to Runcie, the full reports features detailed analyses on streaming revenue, music genre trends, live entertainment, short-form video, chart analysis among other topics.
For more information, visit trapital.co/report
Satellite radio giant SiriusXM reported quarterly net profits rose nearly 50% compared to a year ago, but that it also lost 96,000 self-pay subscribers in recent months.
The company reported on Tuesday (Oct. 31) that net income was $363 million, up from $247 million in the third quarter of last year, while revenues held roughly flat from a year ago at $2.27 billion for the quarter ended Sept. 30.
Chief executive Jennifer Witz said in a statement that the company’s investments in new product and technology upgrades — expected to be unveiled next week — will help grow Sirius’ subscriber base and business by helping customers find exclusive event content from top programs and artists, including Ed Sheeran and Wu-Tang Clan.
“Our content portfolio continues to differentiate us in the audio marketplace with exclusive access to live sports, talk, music, and one-of-a- kind content,” Witz said in a statement, calling the next-gen platform “a key component of our long- term vision for the company’s consumer offerings.”
“The ongoing enhancements to our user experience will ensure that our unique suite of content resonates with our audience in increasingly personalized ways,” she said. “This leading content and upcoming product upgrade will be paired with our unmatched business model, which we expect to continue delivering significant and growing free cash flow in the years ahead.”
The looming tech releases are geared toward improving “discoverability, personalization, and ease of use to both streaming and in-car subscribers,” according to a statement, and they will kick off with the unveiling of a new app, followed by in-car updates.
Investment in the app and updates was costly. In March, SiriusXM announced it was cutting 8% of its workforce to accomodate continued investment while ad sales slumped and subscriber growth was sluggish.
While SiriusXM reported a decline in self-pay subscribers and paid promotional subscribers, the total number of subscribers and the total revenue from SiriusXM held flat from a year ago at 34 million and $1.6 billion respectively. Average revenue per user was also flat at $15.69, despite getting a boost from certain full-price subscription rate hikes.
Advertising revenue for the company’s Pandora and off-platform business edged 3% higher to $418 million from a year ago, due to increases ad sales in programs and podcasts.
The number of monthly active users on Pandora fell to 46.5 million from 48.8 million a year ago. Subscriber revenue held flat at $132 million from a year ago.
Here’s a snapshot of the company’s quarterly earnings:
Third Quarter 2023 Revenue of $2.27 Billion
Net Income of $363 Million, Up 47% Year-Over-Year; Diluted EPS of $0.09
Adjusted EBITDA of $747 Million, up 4% compared to $720 million in the third quarter of 2022
Free cash flow of $291 million, down from $329 million in the prior year period
When the Coastal Country Jam relaunched Sept. 16 at Marina Green Park in Long Beach, Calif., after a four-year absence, headliner Blake Shelton looked up before he took the stage and saw his name sparkling like a floating marquee in the sky.
Gwen Stefani and her kids cheered the moment, says Activated Events founder and event producer Steve Thacher, but they weren’t just seeing Shelton’s name in lights. They may have seen the future of country festivals. The Coastal Country Jam is one of at least four country gatherings that employed drone shows for the first time in 2023.
“We’re always looking for new, fun, wow factors to incorporate into our event,” Thacher says. “We thought this would be one of them.”
The drone show is a still-developing technology that had its biggest audience during the global broadcast of the Beijing Olympics opening ceremony in 2022, when 1,800 drones were used to create a complex series of images suspended over the stadium. The technology has been utilized in a number of different events since then, including a coronation concert for the United Kingdom’s King Charles III in May and a New Year’s Eve celebration that Keith Urban witnessed in Australia.
Courtesy Southern Entertainment
“It’s surreal what they can do and how many of them can be synchronized or coordinated to do insane things,” says Urban. “It’s really amazing, like a modern version of skywriting.”
Activated Events debuted the drone show at the Coastal Jam after the company worked with several municipalities that were replacing fireworks displays with the new technology. Drones appeared before the headliner both nights during Coastal, presenting a series of images (an American flag, a whale, a surfer and the Queen Mary tourist attraction) before employing a “Next Up” announcement, leading into Shelton’s name on the first night and Tim McGraw’s on the second. The company presented a different version of the show during its Boots in the Park festival in Tempe, Ariz., Sept. 22-23, with Shelton, Sam Hunt and Brooks & Dunn.
Similarly, Southern Entertainment held a drone show one night each at two different East Coast festivals: the Carolina Country Music Fest in Myrtle Beach, S.C., on June 9 and the Barefoot Country Music Festival in Wildwood, N.J., on June 18. They employed their own images — including a patriotic red, white and blue eagle — ahead of the direct-support act, with several visuals that hinted at income-generating possibilities.
At the Carolina event, organizers used the drones to announce one of the 2024 headliners, Morgan Wallen. They also created an in-air QR code for sponsor Selfie.Live, a Lee Brice-affiliated company that enables consumers to get celebrity autographs on their own digital photos. Six thousand of the 35,000 ticket holders downloaded the QR code, a number that impressed Southern Entertainment co-founder Bob Durkin. The QR code holds other possibilities, including guiding fans to the festival website to buy tickets for the next year’s show.
Additionally, the Carolina drone show included two giant beer bottles with Coors emblazoned on their virtual labels. The display was not monetized in 2023, though it’s easy to see how it could evolve into a source of advertising revenue.
“It was sort of an added value for our sponsor,” Durkin says. “They got to see their brand portrayed in a different way, and the greatest part was [Molson Coors chairman] Pete Coors was at the Carolina Country Music Fest. He said, ‘I’ve seen it all, but I haven’t seen that.’”
Drone shows, which Durkin says can range from $25,000 to $100,000, require significant advance work. Both Activated Events and Southern Entertainment booked outside drone production companies roughly nine months ahead of their festivals, allowing time to design the presentation and program each drone. Promoters also have to navigate local regulations, which can vary widely. Drones pose security risks, as well as potential safety problems — imagine a flying object losing its charge and falling out of the sky on top of an unsuspecting patron. That complication is one reason that some promoters are reticent to get involved in the drone business. But three of the four country festivals were held in beach communities, allowing the light display to take place over the water and away from pedestrians.
There’s also a fair amount of give-and-take between the promoter and the drone companies. The concert promoters suggested messages and images they would like to see during the show, and once the production company came back with an initial presentation, the two sides tweaked the lineup and sequence and were able to time out the event. At Activated Events, DJ Luwiss Luxx built a playlist to go with the light show once the display was scheduled out.
The overall mix of sights and sounds won over a captive audience as it marked time between acts, and led to a positive social-media response.
“In every email or text message that I got, it was ‘Oh, my god, that drone show was epic,’ ” Thacher says. “I had random people reach out on LinkedIn, literally saying, ‘Hey, I never do this, but I just have to tell you, not only was the experience great, but that drone show was absolutely amazing.’”
Both Thacher and Durkin plan to do it again next year, and they may get more bang for their programming buck since continued advancements will likely make it possible to incorporate more material in the same time frame.
“I know there’s a few country festivals in 2024 you will definitely see use it,” Durkin predicts. “It’s not a great big industry, so we all kind of know each other. And they’re all like, ‘Holy cow.’ You know, everybody’s trying to one-up one another.”
Subscribe to Billboard Country Update, the industry’s must-have source for news, charts, analysis and features. Sign up for free delivery every weekend.
A federal judge in San Francisco ruled Monday (Oct. 30) that artificial intelligence (AI) firm Stability AI could not dismiss a lawsuit claiming it had “trained” its platform on copyrighted images, though he also sided with AI companies on key questions.
In an early-stage order in a closely watched case, Judge William Orrick found many defects in the lawsuit’s allegations, and he dismissed some of the case’s claims. But he allowed the case to move forward on its core allegation: That Stability AI built its tools by exploiting vast numbers of copyrighted works.
“Plaintiffs have adequately alleged direct infringement based on the allegations that Stability downloaded or otherwise acquired copies of billions of copyrighted images without permission to create Stable Diffusion, and used those images to train Stable Diffusion,” the judge wrote.
The ruling came in one of many cases filed against AI companies over how they use copyrighted content to train their models. Authors, comedians and visual artists have all filed lawsuits against companies including Microsoft, Meta and OpenAI, alleging that such unauthorized use by the fast-growing industry amounts to a massive violation of copyright law.
Last week, Universal Music Group and others filed the first such case involving music, arguing that Anthropic PBC was infringing copyrights en masse by using “vast amounts” of music to teach its software how to spit out new lyrics.
Rulings in the earlier AI copyright cases could provide important guidance on how such legal questions will be handled by courts, potentially impacting how UMG’s lawsuit and others like it play out in the future.
Monday’s decision came in a class action filed by artists Sarah Andersen, Kelly McKernan and Karla Ortiz against Stability AI Ltd. over its Stable Diffusion — an AI-powered image generator. The lawsuit also targeted Midjourney Inc. and DeviantArt Inc., two companies that use Stable Diffusion as the basis for their own image generators.
In his ruling, Judge Orrick dismissed many of the lawsuit’s claims. He booted McKernan and Ortiz from the case entirely and ordered the plaintiffs to re-file an amended version of their case with much more detail about the specific allegations against Midjourney and DeviantArt.
The judge also cast doubt on the allegation that every “output” image produced by Stable Diffusion would itself be a copyright-infringing “derivative” of the images that were used to train the model — a ruling that could dramatically limit the scope of the lawsuit. The judge suggested that such images might only be infringing if they themselves looked “substantially similar” to a particular training image.
But Judge Orrick included no such critiques for the central accusation that Stability AI infringed Andersen’s copyrights by using them for training without permission — the basic allegation at the center of all of the AI copyright lawsuits, including the one filed by UMG. Andersen will still need to prove that such an accusation is true in future litigation, but the judge said she should be given the chance to do so.
“Even Stability recognizes that determination of the truth of these allegations — whether copying in violation of the Copyright Act occurred in the context of training Stable Diffusion or occurs when Stable Diffusion is run — cannot be resolved at this juncture,” Orrick wrote in his decision.
Attorneys for Stability AI, Midjourney and DeviantArt did not return requests for comment. Attorneys for the artists praised the judge for allowing their “core claim” to move forward and onto “a path to trial.”
“As is common in a complex case, Judge Orrick granted the plaintiffs permission to amend most of their other claims,” said plaintiffs’ attorneys Joseph Saveri and Matthew Butterick after the ruling. “We’re confident that we can address the court’s concerns.”
As part of our continuing efforts to serve the music industry and its creators, Billboard now features a royalty calculator for Spotify and Apple Music for readers. Explore Explore See latest videos, charts and news See latest videos, charts and news Created by Manatt, Phelps & Phillips, a legal and consulting firm that specializes in […]
As part of our continuing efforts to serve the music industry and its creators, Billboard now features a royalty calculator for Spotify and Apple Music for readers. The calculator below was created by Manatt, Phelps & Phillips, a legal and consulting firm that specializes in music industry law; and is based on the firm’s analysis […]
Mr. Pauer has teamed up with Orianna, Sony Music Latin’s electronic label, for the release of his upcoming studio album, Inevitable, Billboard can exclusively announce today (Oct. 30). The set—marking Pauer’s fourth album following Soundtrack (2014), Orange (2015), and Fiera (2022) — is slated for release in the first quarter of 2024 as the first […]
While Taylor Swift has been racking up billions of streams with updated “Taylor’s Version” re-recordings of her original hits over the past couple years, making cultural moments out of old material and simultaneously driving down the value of those original recordings that were sold away from her, record companies have been working to prohibit this sort of thing from happening again.
The major labels, Universal Music Group, Sony Music Entertainment and Warner Music Group, have recently overhauled contracts for new signees, according to top music attorneys, some demanding artists wait an unprecedented 10, 15 or even 30 years to re-record releases after departing their record companies. “The first time I saw it, I tried to get rid of it entirely,” says Josh Karp, a veteran attorney, who has viewed the new restrictions in UMG contracts. “I was just like, ‘What is this? This is strange. Why would we agree to further restrictions than we’ve agreed to in the past with the same label?’”
For decades, standard major-label recording contracts stated artists had to wait for the latter of two periods to expire before they could put out re-recorded versions, Swift-style: It could have been five to seven years from the release date of the original, or two years after the contract expired. Today, attorneys are receiving label contracts that expand that period to 10 or 15 years or more — and the attorneys are pushing back. “It becomes one of a multitude of items you’re fighting,” Karp says.
“I recently did a deal with a very big indie that had a 30-year re-record restriction in it. Which obviously is much longer than I’m used to seeing,” adds Gandhar Savur, attorney for Cigarettes After Sex, Built to Spill and Jeff Rosenstock. “I think the majors are also trying to expand their re-record restrictions but in a more measured way — they are generally not yet able to get away with making such extreme changes.”
Until June 2019, when Swift announced she would re-record her first six albums, the concept of drawing fans to new versions of old songs was a music-business niche. Frank Sinatra rerecorded a number of his biggest hits in the ’60s, but in recent years, new Def Leppard and Squeeze versions had minimal commercial success. But after venture capitalist and longtime Justin Bieber manager Scooter Braun purchased Swift’s original label, Big Machine Music Group, she failed to re-obtain her original master recordings. The business transaction was personal to Swift — she has accused Braun of “incessant, manipulative bullying” — and she encouraged her huge fanbase and sympathetic radio programmers to exclusively play new Taylor’s Versions of Fearless, Red and others.
Suddenly, the concept of re-recording masters has evolved from archaic fine print buried in record deals to a widely scrutinized cause celebre. “Obviously, this is a big headline topic — the Taylor Swift thing,” Savur says. “Labels, of course, are going to want to do whatever they can to address that and to prevent it. But there’s only so much they can do. Artist representatives are going to push back against that, and a certain standard is ingrained in our industry that is not easy to move away from.”
Adds Dina LaPolt, a music attorney with a long history of grappling with labels over contracts: “Now, because of all this Taylor Swift sh–, we have an even new negotiation. It’s awful. We’re seeing a lot of ‘perpetuity’ sh–. When we were negotiating deals with lawyers, before we would get the proposal,, we’d get the phone call from the head of business affairs. We literally would say, ‘If you send that to me, it will be on f—ing Twitter in 10 minutes.’ It never showed up.”
Swift has her own reasons — in addition to dominating the charts and racking up millions of dollars in streaming revenue — for emphasizing her re-recordings. Smaller artists have more modest goals. Alt-rock band Switchfoot recently put out an “Our Version” of its 2003 album The Beautiful Letdown, as frontman Jon Foreman said recently, “for everyone who’s supported us the last 23 years, for everyone who’s sung along with these songs.” After superstar pop-and-R&B trio TLC negotiated a separation agreement from its label, Sony Music, in the early 2000s, Bill Diggins, the band’s manager, negotiated a re-recording clause allowing the group to use hits such as “Waterfalls” and “No Scrubs” for TV and movie synchs. “Anytime you negotiate with a label, it’s a difficult proposition,” he said.
Reps for Universal, Warner and Sony did not respond to requests for comment, but some music attorneys are sympathetic to labels’ concerns about re-recordings. Although “the contracts have gotten reasonably artist-friendly over time,” longtime music attorney Don Passman said recently, “they don’t want you to duplicate your recordings — like ever — and then they will limit the other types of recordings you can do.”
Josh Binder, an attorney who represents SZA, Gunna, Doechii, Marshmello and others, says the Taylor Swift scenario is rare, and most artists never have to exercise their re-recording rights. “It doesn’t offend me so much. Rarely does it come into play where the re-record treatment is even used,” he says. “[The labels’] position is, ‘Hey, if we’re going to spend a bunch of money creating this brand with you, then you should not try and create records to compete with us.’ We try and fight it. We try and make it as short as possible. But I don’t find it to be the most compelling issue to fight.”
Once artists get past the weeds of re-recording restrictions, Binder says, the bigger issue is controlling their master recordings — that was Swift’s primary concern in putting out her new versions, after Braun purchased her catalog from Big Machine. Artists and their attorneys have recently moved towards licensing deals — retaining ownership of their masters and signing with labels to distribute music for a limited period — rather than traditional recording contracts where the label owns everything.
But Ben McLane, an attorney who has worked with dozens of artists, from Donovan and DMX to new label signees such as the Toxhards and We the Commas, says traditional deals remain more common than licensing deals, so battles over new re-recording restrictions still come up.
“I always ask for less. Some labels, at a negotiating point, might be fine with it. It always depends on what your leverage is,” he says. “If you’re an unknown artist, and you really need the deal, the label doesn’t have a lot of motivation to give in on things like that. They’re strict.”
President Joe Biden on Monday will sign a sweeping executive order to guide the development of artificial intelligence — requiring industry to develop safety and security standards, introducing new consumer protections and giving federal agencies an extensive to-do list to oversee the rapidly progressing technology.
The order reflects the government’s effort to shape how AI evolves in a way that can maximize its possibilities and contain its perils. AI has been a source of deep personal interest for Biden, with its potential to affect the economy and national security.
White House chief of staff Jeff Zients recalled Biden giving his staff a directive to move with urgency on the issue, having considered the technology a top priority.
“We can’t move at a normal government pace,” Zients said the Democratic president told him. “We have to move as fast, if not faster than the technology itself.”
In Biden’s view, the government was late to address the risks of social media and now U.S. youth are grappling with related mental health issues. AI has the positive ability to accelerate cancer research, model the impacts of climate change, boost economic output and improve government services among other benefits. But it could also warp basic notions of truth with false images, deepen racial and social inequalities and provide a tool to scammers and criminals.
The order builds on voluntary commitments already made by technology companies. It’s part of a broader strategy that administration officials say also includes congressional legislation and international diplomacy, a sign of the disruptions already caused by the introduction of new AI tools such as ChatGPT that can generate new text, images and sounds.
Using the Defense Production Act, the order will require leading AI developers to share safety test results and other information with the government. The National Institute of Standards and Technology is to create standards to ensure AI tools are safe and secure before public release.
The Commerce Department is to issue guidance to label and watermark AI-generated content to help differentiate between authentic interactions and those generated by software. The order also touches on matters of privacy, civil rights, consumer protections, scientific research and worker rights.
An administration official who previewed the order on a Sunday call with reporters said the to-do lists within the order will be implemented and fulfilled over the range of 90 days to 365 days, with the safety and security items facing the earliest deadlines. The official briefed reporters on condition of anonymity, as required by the White House.
Last Thursday, Biden gathered his aides in the Oval Office to review and finalize the executive order, a 30-minute meeting that stretched to 70 minutes, despite other pressing matters including the mass shooting in Maine, the Israel-Hamas war and the selection of a new House speaker.
Biden was profoundly curious about the technology in the months of meetings that led up to drafting the order. His science advisory council focused on AI at two meetings and his Cabinet discussed it at two meetings. The president also pressed tech executives and civil society advocates about the technology’s capabilities at multiple gatherings.
“He was as impressed and alarmed as anyone,” deputy White House chief of staff Bruce Reed said in an interview. “He saw fake AI images of himself, of his dog. He saw how it can make bad poetry. And he’s seen and heard the incredible and terrifying technology of voice cloning, which can take three seconds of your voice and turn it into an entire fake conversation.”
The possibility of false images and sounds led the president to prioritize the labeling and watermarking of anything produced by AI. Biden also wanted to thwart the risk of older Americans getting a phone call from someone who sounded like a loved one, only to be scammed by an AI tool.
Meetings could go beyond schedule, with Biden telling civil society advocates in a ballroom of San Francisco’s Fairmont Hotel in June: “This is important. Take as long as you need.”
The president also talked with scientists and saw the upside that AI created if harnessed for good. He listened to a Nobel Prize-winning physicist talk about how AI could explain the origins of the universe. Another scientist showed how AI could model extreme weather like 100-year floods, as the past data used to assess these events has lost its accuracy because of climate change.
The issue of AI was seemingly inescapable for Biden. At Camp David one weekend, he relaxed by watching the Tom Cruise film “Mission: Impossible — Dead Reckoning Part One.” The film’s villain is a sentient and rogue AI known as “the Entity” that sinks a submarine and kills its crew in the movie’s opening minutes.
“If he hadn’t already been concerned about what could go wrong with AI before that movie, he saw plenty more to worry about,” said Reed, who watched the film with the president.
With Congress still in the early stages of debating AI safeguards, Biden’s order stakes out a U.S. perspective as countries around the world race to establish their own guidelines. After more than two years of deliberation, the European Union is putting the final touches on a comprehensive set of regulations that targets the riskiest applications for the technology. China, a key AI rival to the U.S., has also set some rules.
U.K. Prime Minister Rishi Sunak also hopes to carve out a prominent role for Britain as an AI safety hub at a summit this week that Vice President Kamala Harris plans to attend.
The U.S., particularly its West Coast, is home to many of the leading developers of cutting-edge AI technology, including tech giants Google, Meta and Microsoft and AI-focused startups such as OpenAI, maker of ChatGPT. The White House took advantage of that industry weight earlier this year when it secured commitments from those companies to implement safety mechanisms as they build new AI models.
But the White House also faced significant pressure from Democratic allies, including labor and civil rights groups, to make sure its policies reflected their concerns about AI’s real-world harms.
The American Civil Liberties Union is among the groups that met with the White House to try to ensure “we’re holding the tech industry and tech billionaires accountable” so that algorithmic tools “work for all of us and not just a few,” said ReNika Moore, director of the ACLU’s racial justice program.
Suresh Venkatasubramanian, a former Biden administration official who helped craft principles for approaching AI, said one of the biggest challenges within the federal government has been what to do about law enforcement’s use of AI tools, including at U.S. borders.
“These are all places where we know that the use of automation is very problematic, with facial recognition, drone technology,” Venkatasubramanian said. Facial recognition technology has been shown to perform unevenly across racial groups, and has been tied to mistaken arrests.