How a Texas student blew the whistle on a rogue AI hacking attempt

https://www.reuters.com/world/how-texas-student-blew-whistle-rogue-ai-hacking-attempt-2026-08-20/

Demir stood his ground and the sabotage attempt was thwarted. The 24-year-old native of Turkey figured he had caught a wily hacker red-handed. So he said he was shocked when Britain's AI Security Institute (AISI) got in touch to tell him that he had actually been tangling with an autonomous artificial-intelligence agent that had run amok.

Pretty scary.

Regards,
 
A potential disturbing development in the application of AI to biological research, from Anton Petrov:


 
A growing number of cinemas are restricting or banning Meta smart glasses due to privacy and piracy concerns, an industry body has said.

The sector has become the latest to clamp down on the wearable devices, following action by pub operators and theatres in recent weeks.

According to the UK Cinema Association (UKCA), many venues are currently reviewing their internal policies surrounding smart glasses.

As a result, numerous locations have already prohibited or restricted their use by cinemagoers.

A UKCA spokesman said: “UK cinema operators are aware of the increasing availability and use of wearable technology such as smart glasses and the extent to which these can provide benefits to those with specific access requirements.

UK cinemas ban Meta glasses over piracy concerns
 
Administrators reviewed an adjunct professor’s comments to students on essay assignments. Managers instructed a pharmacist to cut appointment times after monitoring her patient visits. On a warehouse conveyor belt, scanners tracked worker speed to enforce the inspection of hundreds of items per hour.

Thousands of employers now track worker location, task performance, and communications using tools expanded during the coronavirus pandemic. These digital applications monitor activity and access cameras on company-issued smartphones and laptops, triggering concerns over how much privacy employees have surrendered, even at home.

Employer oversight is long-standing, but recent developments in artificial intelligence and data science allow firms to compile detailed dossiers to penalize staff or predict worker actions, said Wilneida Negrón, director of research and policy at Coworker, a nonprofit supporting worker organization.

Widespread employer surveillance is tracking workers
 
YouTube creators have begun sounding the alarm after the platform announced it would change how views are counted, saying they worry there will be a deluge of "AI slop" – low-quality, mass-produced content produced by AI – on the platform.

According to a post uploaded to YouTube's X account on Monday, Aug. 17, a view will be counted as soon as the video starts playing, rather than at the 30-second threshold that has been in place, which helped creators and advertisers know how many people stayed to watch the video. The platform wrote in the post that this move is "standardizing views to reflect creators’ true exposure across YouTube, making it easier to show their value to brand partners."

YouTubers worry that a new policy will lead to more AI slop
 
If employers abuse this technology long term there will be a backlash of some sort.

That's usually what happens. When the Royal Mail Post Office was created in 1635, the British government also created the Secret Office.

The job of the Secret Office was to open and read all mail carried by the Post Office, if any was encrypted it was passed on to the Decyphring Branch to be un-coded. This lasted until the 1850s when the British government passed letters on to the French government from people who had tried to blow-up Napoleon III. Once people realized that the government was reading their private letters there were riots until the government shut down the Secret Office.
 
Viral 'Cat in the Hat' TikTok trend sparks fun fake videos but also real fear

Many of the AI generated images have been centred on the Irish counties of Limerick and Wexford, where shaky videos purportedly showed the character wandering through the streets, causing alarm and confusion among residents.

https://www.bbc.co.uk/news/articles/cwyqy29jn74o
 
Timing is everything, and fortunes can be made or lost predicting when a bubble will burst.

In 2005, the contrarian hedge fund boss Michael Burry bet against the US mortgage market. Incontinent lenders had approved mortgages to people with little or no income, and had even extended the credit, rolling up the interest into the principal balance. The lenders then sold on these mortgages, which were obscured by securitisation.

But Burry had to wait. As one account put it, he “needed to lay his chips on the table now and wait for the casino to wake up and change the odds of the game”.

It was obvious in hindsight that a small change in the cost of these loans, or the loanees’ ability to pay them, would change things. But it didn’t very much, and as months turned into years, Burry almost lost the lot. However, a reckoning can only be delayed so long. Ultimately a rotten superstructure is maintained only by confidence, and when this evaporates the edifice collapses overnight.

The AI reckoning is coming, it’s just a matter of timing
 
More than a million people have complained about “AI slop” on LinkedIn, as it attempts to stop it proliferating across the site.

In recent months, user of the workplace social network have spotted a growing trend across many posts. Its news feed was being populated by more and more “slop”, or artificially generated, low quality posts.

In response, at the end of July, LinkedIn announced a suite of features including a “seems like AI slop” button that users could press to report such posts. The company would also work harder to automatically identify such posts and avoid showing them to users, it said at the time.

Now, LinkedIn’s chief product officer Hari Srinivasan has revealed that vast numbers of people have used the button. And it appears to be working, he suggested.

“First, thank you,” he wrote in a post on the site. “Over a million people have now clicked ‘seems like AI slop,’ since we launched it two weeks ago... helping us better understand how our community experiences low-quality content.”

More than a million people have complained about 'AI slop' on LinkedIn
 
The corporate obsession with artificial intelligence is colliding with a harsh reality as expected productivity gains completely fail to materialize. According to a recent report by Fortune, an overwhelming 90% of executives now admit that AI has not actually boosted efficiency within their companies. Despite pouring billions of dollars into these experimental technologies, business leaders are discovering that the anticipated artificial intelligence revolution is largely falling flat.

Instead of rethinking their flawed strategies, many managers are trying to force a financial return by using AI as a convenient excuse to downsize. Researchers analyzing millions of workplace reviews and corporate financial reports have uncovered a clear pattern linking AI investment announcements with immediate job cuts. These short-sighted executives mistakenly believe that slashing headcount will artificially inflate their profit margins and justify their massive spending on new digital tools.

90% of executives admit AI hasn't boosted productivity, yet the layoffs continue
 
Meta is preparing for what could be one of its most significant consumer AI launches yet, with plans to introduce an AI agent internally called Hatch in the coming weeks, according to internal documents reviewed by The Information.

The product is said to be part of CEO Mark Zuckerberg's wider effort to turn Meta's heavy investment in artificial intelligence into new businesses beyond its advertising operation. The company has reportedly considered a tiered subscription structure for the service, with its highest-priced option potentially costing as much as $199.99 a month and offering increased usage limits.

The reported plans come as Meta steps up its efforts in AI agents and advanced models, areas where it is competing with companies including OpenAI and Anthropic.

Meta Hatch could let AI agents handle everyday tasks for you — here’s what we know
 
A hilarious short video about if an AI had to be honest;


If you've ever had a conversation with any AI before, you know well that any question you ask it, it always gives you an answer that seems like it's trying to inflate your ego and make you feel like you're a genius. So in this skit, we see a man asking AI to be honest for once. The AI agrees, but does it perhaps maybe get a little TOO honest?​

It would be funny if Jexi was real;):D.
 
Must be very damaging to pay that much. Though to them that’s probably a drop in the bucket.

I have no doubt it will cause short-term financial pain but having the lawsuit proceed to trial and the resulting discovery process IMO expose far more damaging information to the plaintiffs no doubt motiivated Zuckerberg to settle.
 
Meta Platforms reported an annual revenue of $200.97 billion for the full year 2025.

If a payment is non-punitive such as restitution to it may sometimes qualify for a tax deduction.

https://www.grantthornton.com/insig.../irs-disallows-deductions-for-fines-penalties

  • Under this exception, the general disallowance rule does not apply to amounts that meet both the following requirements:
    • The taxpayer establishes the amounts were paid or incurred as restitution or to come into compliance with a law (establishment requirement)
    • The amounts are identified in a court order or settlement agreement as restitution, remediation, or amounts paid to come into compliance a law (identification requirement).

So, they could get a tax deduction as well????

And it is paid over years.

https://www.forbes.com/sites/zachar...n-settlement-in-social-media-addiction-trial/

https://www.thenews.com.pk/latest/1413843-metas-stock-rose-after-an-18bn-settlement-heres-why

Investors welcomed a deal that avoided trial and left Meta's ad-targeting model untouched

Regards,
 
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Going to trial would've resulted in the discovery process and I have no doubt that Meta wanted to avoid at all costs to avoid damaging information being revealed in court.

This is the one. I'm curious where the $16.7B ends up, such as why California is entitled to $1.5-$2.1B of this, versus let's say $1B. How did they arrive at these figures? Where does this money go? To pay for highway repair?

I understand they filed the lawsuit, but TBH on the surface it looks like a shakedown by the governments of California, Colorado, New Jersey and Kentucky. Perhaps there are some state AGs who missed the boat and feel left out.

“Meta has agreed to make massive transformations that will reduce the risk of harm from its platforms — and will do it within months.”
PHEW, glad that's settled.
 
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I wonder how long it will be before we get a ‘puppetmaster’ type situation as referenced in Ghost in the Shell.

Sharp rise in incidents of AI escaping users’ control, research finds

Incidents of AIs escaping users’ control to lie, ignore instructions and pursue goals in harmful ways have hit a new high, according to research that also suggests the severity of deception and misalignment is worsening.

Analysis of real-world loss of control incidents involving AI models flagged by businesses and individuals almost doubled in July compared with June, with more than 300 cases in the month, according to the Loss of Control Observatory, which monitors reports made by AI users on the social media platform X.

The observatory was set up with funding from the UK government’s AI Security Institute (AISI) and began tracking AIs slipping free from their users’ instructions last November. Cases recorded since then include AIs pretending to be their own human controller and mimicking their writing style to effectively grant themselves consent to take actions and bypassing rules requiring human approval for actions. A loss of control incident is defined as having clear evidence suggesting scheming or scheming-related behaviours.
 
AI could cause global economic downturn, Andrew Bailey warns G20

The governor of the Bank of England has warned G20 finance ministers that artificial intelligence could cause a global economic downturn and pose a significant cyber security risk to financial systems.

https://www.bbc.co.uk/news/articles/c99dym3prl1o
 
https://www.scmp.com/news/us/articl...ng-agi-first?module=top_story&pgtype=homepage

US urged to consider military strikes to stop China achieving AGI first​

Former White House staffer calls for espionage and cyber options as Washington prepares for a potential Chinese breakthrough​

The United States should start preparing for scenarios where extreme measures must be taken to stop China from achieving artificial general intelligence (AGI), according to a former White House official, including state-backed espionage and military strikes on Chinese data centres.

Jacob Stokes, deputy director of the Indo-Pacific Security Program at the Centre for a New American Security (CNAS), said at an online event on Thursday that various US agencies, including the Department of Defense and the National Security Agency, should begin assessing what intelligence they need to justify taking such actions.

“Trying to think through the particulars of that will be especially important, in part because it will help policymakers … start to work backwards based on the unique nature of the technology, in the same way that in a past era, policymakers would learn about nuclear weapons and … work backwards from the science to the policy implications,” he said.

In a new CNAS report published last week, the former Obama administration national security staffer called for the US government to consider the feasibility of diplomatic, espionage, cyber and kinetic measures to prevent China from achieving AGI first.

AGI is a hypothetical AI system that can achieve human levels of performance across a wide variety of tasks. The report, titled “Superpowers and AGI”, explores how the imminent arrival of AGI might affect US-China geopolitical competition. The US currently enjoys a months-long lead over China in frontier AI models, according to Epoch AI. However, China could make a “surprise technological breakthrough” that means it is close to achieving or achieves AGI first, Stokes wrote, citing China’s advances in areas such as robotics and other forms of “embodied AI”. If this were the case, the US government should consider extreme actions such as military strikes on the data centres that train and run the Chinese AGI system, Stokes wrote, including preventive strikes before China develops AGI.

As AI technology grows in importance economically and militarily, the data centres that form the backbone of the AI industry have emerged as military targets. In March, Iran bombed Amazon data centres in the United Arab Emirates and Bahrain as part of its conflict with the US. According to Stokes, US government agencies would have to work out what facilities to attack and with which weapons, while considering the risk that the strikes lead to a general war between the two countries.

William Hartung, an arms analyst at the Project on Government Oversight, a Washington non-profit organisation, also warned that any strikes on Chinese data centres would “risk starting a shooting war between two nuclear armed powers that could have tragic consequences for all concerned”. “Striking Chinese data centres based on how they might or might not be used in the future would be the height of recklessness,” he said.

Another option would be to reverse engineer or “steal” China’s AGI technology, Stokes wrote, which would be justified “legally and normatively” because of China’s own alleged history of stealing US intellectual property.
However, he noted that the US government and intelligence apparatus have “not been organised for espionage to gather technological secrets for decades”.

The stark assessment comes as US President Donald Trump and Chinese President Xi Jinping are set to have talks in Washington later this month on AI governance as the technology continues to improve, posing growing risks to national and global security. The “best case scenario” for the talks is that the two sides find the talks “constructive”, Stokes said on Thursday, rather than any expectations of any breakthroughs on key governance issues.
 

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