ChatGPT effect: AI to dominate CES 2024, even without OpenAI boss Sam Altman in attendance OpenAI boss Sam Altman will not appear at the CES trade show in Las Vegas next week. But the generative artificial-intelligence fever his startup set off last year will be on full display as gadget makers race to find consumer uses for the technology. In devices for the visually impaired, and safety systems involving guns at schools, to facial-recognition software that can assess vitals, and cabin-monitoring systems inside autonomous cars, dozens of companies have planned announcements for the show about how they are building AI into their gadgets. OpenAI’s influence at the show despite Altman’s physical absence is reminiscent of Apple and its founder Steve Jobs, whose clout was felt despite him avoiding the show, with many firms jockeying to display gadgets compatible with the company’s sleek products. Altman is widely regarded as the poster child for the AI frenzy that has gripped the tech industry for the past year. He made headlines in November when he was briefly ousted by the ChatGPT maker’s board, and reinstated days later after more than 700 employees threatened to quit and join OpenAI investor Microsoft in solidarity. Among other projects, OpenAI is working on a secretive AI hardware project with famed former Apple designer Jony Ive, according to media reports. Funding for generative AI projects exploded last year, surging more than fivefold to $23.78 billion through the beginning of December from 2022, according to PitchBook data. “It’s the year of AI in everything,” said Maribel Lopez, tech analyst at Lopez Research. “If you don’t have AI in your product, don’t show up, it’s not worth talking about.” Germany’s Bosch is expected to showcase a near-invisible gun-detection system that will pair video and audio AI for proactive security involving firearms at schools. Japan’s NEC will unveil AI software that enables mobile devices to analyse face patterns and pupil conditions to estimate human vitals and mental state. A slew of companies is expected to show off how using AI in vehicles is making them smoother and safer for drivers through better in-vehicle virtual assistants and cabin monitors. The new focus area for automakers after years of investment into autonomous technology that used AI is technology that allows a “hyper personalized” experience while buying and driving cars, said Akash Arora, a managing director at Boston Consulting Group. “They’re trying to figure out ‘if I could get to this level of customer experience it can really differentiate me in the market,’” he said of companies in the auto industry. For instance, Cerence, which makes AI-powered virtual assistants, is set to announce a partnership with Volkswagen, and Israel-based Cipia is expected to unveil a system that monitors signs of distraction and drowsiness in drivers. Amazon.com said it will announce a generative AI partnership with BMW, but declined to provide details before the show. Many automakers are also adopting AI in various stages of production to reduce costs, said Wendy Bauer, vice president of automotive and manufacturing at Amazon Web Services, which counts BMW and Toyota as customers. AI can help carmakers save money by speeding up vehicle development and ensuring better quality checks during manufacturing, she said. PC and smartphone makers are also likely to showcase how their products use AI, which chipmakers including Intel and AMD are betting will offer a new revenue stream. Microsoft said on Thursday that PCs with a new AI button on the Windows keyboard will be on display at the show. But it is not clear whether consumers will pay extra for AI capabilities on their computers because these developments perform less obvious tasks than OpenAI’s ChatGPT bot. “Consumers love ChatGPT, but the consumer benefit of having it on a device isn’t clear,” said Jay Goldberg, chief executive of D2D Advisory. “That’s why everyone is going to talk about it – because everyone is scrambling for the consumer utility.” Follow FE Tech Bytes on Twitter, Instagram, LinkedIn, Facebook.
Also read: Petrol and Diesel Rate Today, 11 February: Fuel prices steady; Check rates in Delhi, Mumbai, other cities
In its consultation paper, Sebi has suggested that trustees of mutual funds should focus on market abuse by AMC, its employees and mis-selling by the AMC to increase the asset base.
Also, trustees should be responsible for fairness of fees and expenses charged by the AMC, compare its performance with peers and ensure that AMC’s sponsor is not getting any undue advantage.
In addition to the core areas, the trustees should be responsible for periodically reviewing the steps taken by AMCs for the folios which do not contain all KYC attributes with bank details.
Further, Sebi has suggested that trustees and their resource persons should independently evaluate the extent of compliance by AMC and not merely rely on AMC’s assurances.
To facilitate trustees’ supervision, AMCs should provide them with analytical information.
Presently, the trustees primarily rely on the AMCs for ensuring compliance with the applicable rules.
Under the rules, trustees hold the property of the mutual fund in trust for the benefit of the unitholders. The trustees appoint an AMC to float schemes for the mutual fund and manage the funds mobilised under various schemes, in accordance with the investment objectives.
“In view of the increasing scale and reach of the mutual fund industry, trustees’ role in respect of unitholders’ protection assumes even greater significance,” Sebi said on Friday.
Also read: Adani shares continue fall amid MSCI review
Over the past decade there has been a five-fold increase in the size of the mutual fund industry. The assets under management (AUM) has surged from Rs 7.93 lakh crore in November 2012 to Rs 39.89 lakh crore in December 2022.
To ensure that trustees devote time and attention to their core responsibilities, Sebi has suggested that for fulfilling other responsibilities, trustees may rely on professional firms such as audit firms, legal firms, merchant bankers for carrying out due diligence on their behalf.
The Sebi also listed some duties trustees can delegate to AMCs. This include ensuring that all systems are in place prior to the launch of any scheme by the AMC, and calculating any income in the mutual fund due to the fund and any income received in the mutual fund for unitholders.
The regulator has proposed to provide a one year time to existing trustees with board of trustee structure to convert into a trustee company, from governance point of view.
Presently, two structures for trustees are permitted — corporate and board of trustees structure. Moreover, there are a few mutual funds which have the board of trustees structure while the trustees of all other mutual funds have adopted the structure of a trustee company.
Considering the enhanced role of trustees over the period of time, Sebi has suggested to increase the minimum number of trustees to adequately perform their functions. Presently, the minimum number of trustees prescribed is four.
Also, it has been proposed that the chairperson of the trustee company should be an independent director.
Sebi has suggested that apart from the meeting of the audit committee of AMCs and trustees (which mostly comprises of independent directors), the board of AMCs and the board of trustees may be mandated to meet at least once a year to discuss the issues concerning the mutual funds.
The regulator proposed that the existing MF Regulations on AMC and its obligations may be amended to include additional clauses with respect to the obligations of the board of AMC.
The proposed amendment may include a clause which casts an obligation on the board of AMC to ensure that all the activities of the asset management company are in accordance with the provisions of these regulations.
The Securities and Exchange Board of India (Sebi) has sought comments from public till February 24 on these proposals.