Investing in artificial intelligence (AI) companies has become a riskier and more involved process than in previous years. Companies need new processes and tools to follow the more stringent AI regulations that are on the horizon (at least in Europe and the United States). Regulators are discussing how best to structure AI regulations in order to align risk management with optimizing the potential value creation of these technologies. Investors should take a similar approach in their investment strategy. Read on for a discussion of the considerations investors should keep in mind as they vet their investment pipeline.
Continue Reading Tech Investing Part III: Investing in AI
Tech Investing Part 1: Zero Hour
The technology sector runs the gamut from artificial intelligence (AI), the Internet of Things (IoT) to SaaS companies or cybersecurity, and from the biggest household names to the smallest companies being operated out of garages. The rise of AI and traps for the unwary were previously covered here. Risks of investing in SaaS Solutions can be found here and here. Technology is everywhere in 2021, even in the smallest brick and mortar shops around. Technology investing offers lucrative opportunities for investors large and small, but there are many traps for the unwary, such as “zero-day exploits.”
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The Evolving World of AI
Artificial intelligence (AI) refers to the ability of a computer or a computer-enabled robotic system to process information and produce outcomes in a manner similar to the thought processes of humans in learning, decision making and problem solving. As a result of rapid advances in AI, pre-pandemic, McKinsey Global Institute estimated that between 75 and 375 million people around the world will need to change jobs or acquire new skills by 2030. AI both holds promise of innovation and disruption, as does the legal framework that is developing to rein in its risks without hindering its progress.
In May 2019, the US Government joined the OECD (Organisation for Economic Co-operation and Development) in setting forth principles to improve the innovation and trustworthy development and application of AI. At the same time, the bipartisan Artificial Intelligence Initiative Act (AIIA) was introduced in the US Senate to organize a national strategy for developing AI and provide a $2.2 billion federal investment over five years to build an AI-ready workforce, accelerating the delivery of AI applications from government agencies, academia, and the private sector over the next 10 years.Continue Reading The Evolving World of AI
The IOT is Here and so is the Regulation
For years, we have waited with bated breath the arrival of the “Internet of Things” (IoT) to transform garages into smart factories, cars into autonomous vehicles and ordinary homes into smart homes completely controllable by cellphones. Two technologies underpinning this world of the future (inexpensive sensors and 5G networking) will catalyze this vision in 2020. Gartner predicts that connected devices will rise from 8.4B in 2017 to 20.4B in 2020. While the hurdles for this vision are many (increased regulation, privacy concerns, and the trade war, which may bifurcate the IoT due to geopolitical disputes regarding 5G), the McKinsey Global Institute estimates that IoT technologies will create between $3.9T and $11.1T in economic value globally by 2025. Those interested in capitalizing on this world of the future should be mindful of the legal framework of the future (and near present).
Continue Reading The IOT is Here and so is the Regulation
Three More Risks to Consider with SaaS Solutions
As previously discussed, software as a service (SaaS) solutions offer the allure of being able to outsource IT for data storage. Being able to rely on someone else to protect you sounds great, but is it really? Losing control over your sensitive data requires serious diligence of the third party vendor. Caveat emptor: SaaS solutions can expose companies to unknown risks. Tips to avoid those risks are discussed below.
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State and Federal Power Struggle Over Data Privacy and Security
U.S. Senate leaders may be close to reaching an agreement on a legislative proposal that would establish a national data breach notification and security standard (the Data Acquisition and Technology Accountability and Security Act) which would streamline nationwide reporting requirements for businesses. However, there are a plethora of reasons it may not make
Cyberattacks—Are You Ready?
Recent cyber-attacks hurt individuals and investors on a regular basis. Recent attacks have cost hundreds of millions of dollars. Firms that have dismissed the dangers are increasingly at risk of regulatory action. New European laws will likely increase fines for non-compliance with cyber-security standards. New York’s financial regulator recently enacted new cyber-security rules in August.
Three Major Security Issues to Consider with SaaS and Cloud Solutions
For additional analysis on SaaS, please see our latest blog post which can be found here.
Small and medium-sized businesses are turning to software as a service (SaaS) solutions for their IT needs more and more frequently. SaaS solutions can provide end-users with quicker, cheaper access to software that they might not otherwise
SEC’s IT Security Under Attack as It Attacks Others
The inspector general (IG) of the U.S. Securities and Exchange Commission (SEC) reported last week that the SEC has not sufficiently implemented information technology security upgrades in order to protect highly sensitive information from data breaches. The IG reported that SEC officials failed to deactivate idle user accounts, did not ensure that owners kept their
What’s on the Cybersecurity Horizon for 2016?
The last twelve months saw many high-profile and innovative cyber-threats, costly and embarrassing breaches, and several cybersecurity trends. Many executives and boards have been reactive rather than proactive, catalyzing many companies to revamp their cybersecurity risk profiles. So what should companies expect to hit the front pages in 2016?
Extortion Hacking
Following a high-profile hack