The Courts

New Jersey Sues Property Management Software Firm RealPage, Says Collusion With Landlords Drives Up Rents (reuters.com) 17

New Jersey sued the property management software company RealPage, accusing it and 10 of the state's largest landlords of conspiring to drive up residential rents, violating federal and state antitrust laws and New Jersey consumer fraud laws. From a report: The complaint filed on Wednesday by state Attorney General Matthew Platkin said the defendants, including AvalonBay Communities illegally used RealPage's revenue management software and algorithms to inflate rents for apartments in multifamily properties.

New Jersey said the defendants also quietly exchanged non-public data such as lease prices, amenities, concessions offered, property values and housing inventory, in order to align pricing and avoid competition to lower rents. The state said the collusion has inflated rents for hundreds of thousands of residents, with half of low-income renters paying more than 30% of their gross incomes toward rent. Many real estate and financial experts recommend a 30% limit.

Education

Draft Executive Order Outlines Plan To Integrate AI Into K-12 Schools (washingtonpost.com) 115

A draft executive order from the Trump administration proposes integrating AI into K-12 education by directing federal agencies to promote AI literacy, train teachers, and establish public-private partnerships. "The draft is marked 'predecisional' and could be subject to change before it is signed, or it could be abandoned," notes the Washington Post. From the report: Titled "Advancing artificial intelligence education for American youth," the draft order would establish a White House task force on AI education that would be chaired by Michael Kratsios, director of the Office of Science and Technology Policy, and would include the secretaries of education, agriculture, labor and energy, as well as Trump's special adviser for AI and cryptocurrency, David Sacks. The draft order would instruct federal agencies to seek public-private partnerships with industry, academia and nonprofit groups in efforts to teach students "foundational AI literacy and critical thinking skills."

The task force should look for existing federal funding such as grants that could be used for AI programs, and agencies should prioritize spending on AI education, according to the draft order. It would also instruct Education Secretary Linda McMahon to prioritize federal grant funding for training teachers on how to use AI, including for administrative tasks and teacher training and evaluation. All educators should undergo professional development to integrate AI into all subject areas, the draft order says. It would also establish a "Presidential AI Challenge" -- a competition for students and educators to demonstrate their AI skills -- and instruct Labor Secretary Lori Chavez-DeRemer to develop registered apprenticeships in AI-related occupations. The focus is on K-12 education, but the draft order says, "Our Nation must also make resources available for lifelong learners to develop new skills for a changing workforce."

Privacy

WhatsApp Blocks People From Exporting Your Entire Chat History (theverge.com) 14

WhatsApp is rolling out a new "Advanced Chat Privacy" feature that blocks others from exporting chat histories or automatically downloading media. While it doesn't stop screenshots or manual downloads, it marks the first step in WhatsApp's plan to enhance in-chat privacy protections. The Verge reports: By default, WhatsApp saves photos and videos in a chat to your phone's local storage. It also lets you and your recipients export chats (with or without media) to your messages, email, or notes app. The Advanced Chat Privacy setting will prevent this in group and individual chats. [...] WhatsApp says this is its "first version" of the feature, and that it plans to add more protections down the line.

"We think this feature is best used when talking with groups where you may not know everyone closely but are nevertheless sensitive in nature," WhatsApp says in its announcement. WABetaInfo first spotted this feature earlier this month, and now it's rolling out to the latest version of the app. You can turn on the setting by tapping the name of your chat and selecting Advanced Chat Privacy.

Nintendo

Nintendo Seeks Discord User's Identity Following Major Pokemon Leak (polygon.com) 45

Nintendo has filed a request for subpoena in California's Northern District Court to compel Discord to reveal the identity of user "GameFreakOUT," the alleged source of last year's extensive Pokemon leak. The company is demanding the name, address, phone number, and email of the individual behind the "Teraleak," which contained claimed source code for upcoming title Pokemon Legends: Z-A, next-generation Pokemon games, builds of older titles, and numerous concept art and lore documents.

Court documents obtained by Polygon show Nintendo included a partially redacted Discord screenshot as evidence, where GameFreakOUT shared files in a server named "FreakLeak." The breach occurred around October 12, 2024, two days after Game Freak publicly acknowledged a hack affecting employee information without confirming game data theft.
The Courts

Shopify Must Face Data Privacy Lawsuit In US (reuters.com) 42

An anonymous reader quotes a report from Reuters: A U.S. appeals court on Monday revived a proposed data privacy class action against Shopify, a decision that could make it easier for American courts to assert jurisdiction over internet-based platforms. In a 10-1 decision, the 9th U.S. Circuit Court of Appeals in San Francisco said the Canadian e-commerce company can be sued in California for collecting personal identifying data from people who make purchases on websites of retailers from that state.

Brandon Briskin, a California resident, said Shopify installed tracking software known as cookies on his iPhone without his consent when he bought athletic wear from the retailer I Am Becoming, and used his data to create a profile it could sell to other merchants. Shopify said it should not be sued in California because it operates nationwide and did not aim its conduct toward that state. The Ottawa-based company said Briskin could sue in Delaware, New York or Canada. A lower court judge and a three-judge 9th Circuit panel had agreed the case should be dismissed, but the full appeals court said Shopify "expressly aimed" its conduct toward California.

"Shopify deliberately reached out ... by knowingly installing tracking software onto unsuspecting Californians' phones so that it could later sell the data it obtained, in a manner that was neither random, isolated, or fortuitous," Circuit Judge Kim McLane Wardlaw wrote for the majority. A spokesman for Shopify said the decision "attacks the basics of how the internet works," and drags entrepreneurs who run online businesses into distant courtrooms regardless of where they operate. Shopify's next legal steps are unclear.

Yahoo!

Yahoo Will Give Millions To a Settlement Fund For Chinese Dissidents (technologyreview.com) 13

An anonymous reader quotes a report from MIT Technology Review: A lawsuit to hold Yahoo responsible for "willfully turning a blind eye" to the mismanagement of a human rights fund for Chinese dissidents was settled for $5.425 million last week, after an eight-year court battle. At least $3 million will go toward a new fund; settlement documents say it will "provide humanitarian assistance to persons in or from the [People's Republic of China] who have been imprisoned in the PRC for exercising their freedom of speech." This ends a long fight for accountability stemming from decisions by Yahoo, starting in the early 2000s, to turn over information on Chinese internet users to state security, leading to their imprisonment and torture. After the actions were exposed and the company was publicly chastised, Yahoo created the Yahoo Human Rights Fund (YHRF), endowed with $17.3 million, to support individuals imprisoned for exercising free speech rights online.

The Yahoo Human Rights Fund was intended to support imprisoned Chinese dissidents. Instead, a lawsuit alleges that only a small fraction of the money went to help former prisoners. But in the years that followed, its chosen nonprofit partner, the Laogai Research Foundation, badly mismanaged the fund, spending less than $650,000 -- or 4% -- on direct support for the dissidents. Most of the money was, instead, spent by the late Harry Wu, the politically connected former Chinese dissident who led Laogai, on his own projects and interests. A group of dissidents sued in 2017, naming not just Laogai and its leadership but also Yahoo and senior members from its leadership team during the time in question; at least one person from Yahoo always sat on YHRF's board and had oversight of its budget and activities.

The defendants -- which, in addition to Yahoo and Laogai, included the Impresa Legal Group, the law firm that worked with Laogai -- agreed to pay the six formerly imprisoned Chinese dissidents who filed the suit, with five of them slated to receive $50,000 each and the lead plaintiff receiving $55,000. The remainder, after legal fees and other expense reimbursements, will go toward a new fund to continue YHRF's original mission of supporting individuals in China imprisoned for their speech. The fund will be managed by a small nonprofit organization, Humanitarian China, founded in 2004 by three participants in the 1989 Chinese democracy movement. Humanitarian China has given away $2 million in cash assistance to Chinese dissidents and their families, funded primarily by individual donors.

Crime

UN Says Asian Scam Call Center Epidemic Expanding Globally Amid Political Heat (theregister.com) 52

The UN warns that scam call centers, once concentrated in Southeast Asia, are rapidly expanding worldwide like a "cancer" as organized crime groups exploit weak governance in regions like Africa, South America, the Pacific Islands, and parts of Europe. The Register reports: Previous UN reports flagged growing activity in regions like South America and the Middle East. The latest update expands that scope, citing overseas crackdowns and evidence of scam operations tied to Southeast Asian crime syndicates in Africa, South Asia, select Pacific islands, and links to related criminal services -- such as laundering and recruitment -- as far as Europe, North America, and beyond. These spillover sites, as the UN calls them, allow Asian OCGs to expand their pool of victims by hiring/trafficking locals with different language skills and "dramatically scale up profits," according to the UN's latest report [PDF].

"We are seeing a global expansion of East and Southeast Asian organized crime groups," said Benedikt Hofmann, acting regional representative for Southeast Asia and the Pacific at the UN's Office on Drugs and Crime (UNODC). "This reflects both a natural expansion as the industry grows and seeks new ways and places to do business, but also a hedging strategy against future risks should disruption continue and intensify in the region." Previously, the hotspots for this type of activity have been in places like Myanmar, Cambodia, the Philippines, and Laos since 2021 when the UN and Interpol started tracking the phenomenon.

"It spreads like a cancer," Hofmann added. "Authorities treat it in one area, but the roots never disappear; they simply migrate. This has resulted in a situation in which the region has essentially become an interconnected ecosystem, driven by sophisticated syndicates freely exploiting vulnerabilities, jeopardizing state sovereignty, and distorting and corrupting policy-making processes and other government systems and institutions." The UN said these scam gangs typically relocate to jurisdictions with weak governance, allowing them to expand operations -- and rake in between $27.4 and $36.5 billion annually, according to estimates based on labour force size and average haul per scammer.

Censorship

Vercel Slams LaLiga Piracy Blocks As 'Unaccountable Internet Censorship' 20

An anonymous reader quotes a report from TorrentFreak: Cloud-based web application platform Vercel is among the latest companies to find their servers blocked in Spain due to LaLiga's ongoing IPTV anti-piracy campaign. In a statement, Vercel's CEO and the company's principal engineer slam "indiscriminate" blocking as an "unaccountable form of internet censorship" that has prevented legitimate customers from conducting their daily business. [...] US-based Vercel describes itself as a "complete platform for the web." Through the provision of cloud infrastructure and developer tools, users can deploy code from their computers and have it up and running in just seconds. Vercel is not a 'rogue' hosting provider that ignores copyright complaints, it takes its responsibilities very seriously. Yet it became evident last week that blocking instructions executed by Telefonica-owned telecoms company Movistar were once again blocking innocent users, this time customers of Vercel.

As the thread on X continued, Vercel CEO Guillermo Rauch was asked whether Vercel had "received any requests to remove illegal content before the blocking occurs?" Vercel Principal Engineer Matheus Fernandes answered quickly. Additional users were soon airing their grievances; ChatGPT blocked regularly on Sundays, a whole day "ruined" due to unwarranted blocking of AI code editor Cursor, blocking at Cloudflare, GitHub, BunnyCDN, the list goes on. In a joint statement last week, Vercel CEO Guillermo Rauch and Principal Engineer Matheus Fernandes cited the LaLiga/Telefonica court order and reported that ISPs are "blocking entire IP ranges, not specific domains or content." Among them, the IP addresses 66.33.60.129 and 76.76.21.142, "used by businesses like Spanish startup Tinybird, Hello Magazine, and others operating on Vercel, despite no affiliations with piracy in any form."
While clearly unhappy with how the company has been treated, Vercel says it's now working with LaLiga.

"We remain committed to providing fast, secure infrastructure for modern web applications. Likewise, we expect enforcement efforts to do the same: targeted, transparent, and technically sound. We are in contact with La Liga and are collaborating to remove illegal content in accordance with the court order. We're exploring mitigation strategies to restore access for Spanish users and continue to advocate for an open and permissionless web," Vercel concludes.
Chrome

OpenAI Would Buy Google's Chrome, Exec Testifies At Trial (reuters.com) 60

At Google's antitrust trial, OpenAI's head of product revealed the company would consider buying Chrome if regulators force Alphabet to sell it, arguing such a move could help improve ChatGPT's search capabilities. Reuters reports: ChatGPT head of product Nick Turley made the statement while testifying at trial in Washington where U.S. Department of Justice seeks to require Google to undertake far-reaching measures restore competition in online search. The judge overseeing the trial found last year that Google has a monopoly in online search and related advertising. Google has not offered Chrome for sale. The company plans to appeal the ruling that it holds a monopoly.

Turley wrote last year that ChatGPT was leading in the consumer chatbot market and did not see Google as its biggest competitor, according to an internal OpenAI document Google's lawyer showed at trial. He testified that the document was meant to inspire OpenAI employees and that the company would still benefit from distribution partnerships. Turley, a witness for the government, testified earlier in the day that Google shot down a bid by OpenAI to use its search technology within ChatGPT. OpenAI had reached out to Google after experiencing issues with its own search provider, Turley said, without naming the provider. ChatGPT uses technology from Microsoft's search engine, Bing. "We believe having multiple partners, and in particular Google's API, would enable us to provide a better product to users," OpenAI told Google, according to an email shown at trial.

OpenAI first reached out in July, and Google declined the request in August, saying it would involve too many competitors, according to the email. "We have no partnership with Google today," Turley said. The DOJ's proposal to make Google share search data with competitors as one means of restoring competition would help accelerate efforts to improve ChatGPT, Turley said. Search is a critical part of ChatGPT to provide answers to user queries that are up to date and factual, Turley said. ChatGPT is years away from its goal of being able to use its own search technology to answer 80% of queries, he added.

The Internet

Verizon Consumer CEO Says Net Neutrality 'Went Literally Nowhere' (theverge.com) 76

Verizon Consumer CEO Sowmyanarayan Sampath has declared that net neutrality regulations "went literally nowhere." Sampath claimed he couldn't identify what problem net neutrality was attempting to solve, despite Verizon's history of aggressive lobbying against such rules. "I don't know what net neutrality does," Sampath told The Verge. "I still don't know what problem we are trying to solve with net neutrality."

When pressed about potential anti-competitive behaviors like zero-rating services, Sampath deflected by focusing exclusively on traffic management concerns, arguing that networks require prioritization capabilities during congestion. "For traffic management purposes, we need to have some controls in the network," he stated. The interview comes as Verizon faces a different regulatory challenge from FCC Commissioner Brendan Carr, who is holding up Verizon's Frontier acquisition over the company's diversity initiatives.
Books

Should the Government Have Regulated the Early Internet - or Our Future AI? (hedgehogreview.com) 45

In February tech journalist Nicholas Carr published Superbloom: How Technologies of Connection Tear Us Apart.

A University of Virginia academic journal says the book "appraises the past and present" of information technology while issuing "a warning about its future." And specifically Carr argues that the government ignored historic precedents by not regulating the early internet sometime in the 1990s. But as he goes on to remind us, the early 1990s were also when the triumphalism of America's Cold War victory, combined with the utopianism of Silicon Valley, convinced a generation of decision-makers that "an unfettered market seemed the best guarantor of growth and prosperity" and "defending the public interest now meant little more than expanding consumer choice." So rather than try to anticipate the dangers and excesses of commercialized digital media, Congress gave it free rein in the Telecommunications Act of 1996, which, as Carr explains,

"...erased the legal and ethical distinction between interpersonal communication and broadcast communications that had governed media in the twentieth century. When Google introduced its Gmail service in 2004, it announced, with an almost imperial air of entitlement, that it would scan the contents of all messages and use the resulting data for any purpose it wanted. Our new mailman would read all our mail."

As for the social-media platforms, Section 230 of the Act shields them from liability for all but the most egregiously illegal content posted by users, while explicitly encouraging them to censor any user-generated content they deem offensive, "whether or not such material is constitutionally protected" (emphasis added). Needless to say, this bizarre abdication of responsibility has led to countless problems, including what one observer calls a "sociopathic rendition of human sociability." For Carr, this is old news, but he warns us once again that the compulsion "to inscribe ourselves moment by moment on the screen, to reimagine ourselves as streams of text and image...[fosters] a strange, needy sort of solipsism. We socialize more than ever, but we're also at a further remove from those we interact with."

Carr's book suggests "frictional design" to slow posting (and reposting) on social media might "encourage civil behavior" — but then decides it's too little, too late, because our current frictionless efficiency "has burrowed its way too deeply into society and the social mind."

Based on all of this, the article's author looks ahead to the next revolution — AI — and concludes "I do not think it wise to wait until these kindly bots are in place before deciding how effective they are. Better to roll them off the nearest cliff today..."
AI

US Chipmakers Fear Ceding China's AI Market to Huawei After New Trump Restrictions (msn.com) 99

The Trump administration is "taking measures to restrict the sale of AI chips by Nvidia, Advanced Micro Devices and Intel," especially in China, reports the New York Times. But that's triggered a series of dominoes. "In the two days after the limits became public, shares of Nvidia, the world's leading AI chipmaker, fell 8.4%. AMD's shares dropped 7.4%, and Intel's were down 6.8%." (AMD expects up to $800 million in charges after the move, according to CNBC, while NVIDIA said it would take a quarterly charge of about $5.5 billion.)

The Times notes hopeful remarks Thursday from Jensen Huang, CEO of Nvidia, during a meeting with the China Council for the Promotion of International Trade. "We're going to continue to make significant effort to optimize our products that are compliant within the regulations and continue to serve China's market." But America's chipmakers also have a greater fear, according to the article: "that their retreat could turn the Chinese tech giant Huawei into a global chip-making powerhouse." "For the U.S. semiconductor industry, China is gone," said Handel Jones, a semiconductor consultant at International Business Strategies, which advises electronics companies. He projects that Chinese companies will have a majority share of chips in every major category in China by 2030... Huang's message spoke to one of his biggest fears. For years, he has worried that Huawei, China's telecommunications giant, will become a major competitor in AI. He has warned U.S. officials that blocking U.S. companies from competing in China would accelerate Huawei's rise, said three people familiar with those meetings who spoke on the condition of anonymity.

If Huawei gains ground, Huang and others at Nvidia have painted a dark picture of a future in which China will use the company's chips to build AI data centers across the world for the Belt and Road Initiative, a strategic effort to increase Beijing's influence by paying for infrastructure projects around the world, a person familiar with the company's thinking said...

Nvidia's previous generation of chips perform about 40% better than Huawei's best product, said Gregory C. Allen, who has written about Huawei in his role as director of the Wadhwani AI Center at the Center for Strategic and International Studies. But that gap could dwindle if Huawei scoops up the business of its American rivals, Allen said. Nvidia was expected to make more than $16 billion in sales this year from the H20 in China before the restriction. Huawei could use that money to hire more experienced engineers and make higher-quality chips. Allen said the U.S. government's restrictions also could help Huawei bring on customers like DeepSeek, a leading Chinese AI startup. Working with those companies could help Huawei improve the software it develops to control its chips. Those kinds of tools have been one of Nvidia's strengths over the years.

TechRepublic identifies this key quote from an earlier article: "This kills NVIDIA's access to a key market, and they will lose traction in the country," Patrick Moorhead, a tech analyst with Moor Insights & Strategy, told The New York Times. He added that Chinese companies will buy from local rival Huawei instead.
AI

As Russia and China 'Seed Chatbots With Lies', Any Bad Actor Could Game AI the Same Way (detroitnews.com) 61

"Russia is automating the spread of false information to fool AI chatbots," reports the Washington Post. (When researchers checked 10 chatbots, a third of the responses repeated false pro-Russia messaging.)

The Post argues that this tactic offers "a playbook to other bad actors on how to game AI to push content meant to inflame, influence and obfuscate instead of inform," and calls it "a fundamental weakness of the AI industry." Chatbot answers depend on the data fed into them. A guiding principle is that the more the chatbots read, the more informed their answers will be, which is why the industry is ravenous for content. But mass quantities of well-aimed chaff can skew the answers on specific topics. For Russia, that is the war in Ukraine. But for a politician, it could be an opponent; for a commercial firm, it could be a competitor. "Most chatbots struggle with disinformation," said Giada Pistilli, principal ethicist at open-source AI platform Hugging Face. "They have basic safeguards against harmful content but can't reliably spot sophisticated propaganda, [and] the problem gets worse with search-augmented systems that prioritize recent information."

Early commercial attempts to manipulate chat results also are gathering steam, with some of the same digital marketers who once offered search engine optimization — or SEO — for higher Google rankings now trying to pump up mentions by AI chatbots through "generative engine optimization" — or GEO.

Our current situation "plays into the hands of those with the most means and the most to gain: for now, experts say, that is national governments with expertise in spreading propaganda." Russia and, to a lesser extent, China have been exploiting that advantage by flooding the zone with fables. But anyone could do the same, burning up far fewer resources than previous troll farm operations... In a twist that befuddled researchers for a year, almost no human beings visit the sites, which are hard to browse or search. Instead, their content is aimed at crawlers, the software programs that scour the web and bring back content for search engines and large language models. While those AI ventures are trained on a variety of datasets, an increasing number are offering chatbots that search the current web. Those are more likely to pick up something false if it is recent, and even more so if hundreds of pages on the web are saying much the same thing...

The gambit is even more effective because the Russian operation managed to get links to the Pravda network stories edited into Wikipedia pages and public Facebook group postings, probably with the help of human contractors. Many AI companies give special weight to Facebook and especially Wikipedia as accurate sources. (Wikipedia said this month that its bandwidth costs have soared 50 percent in just over a year, mostly because of AI crawlers....) Last month, other researchers set out to see whether the gambit was working. Finnish company Check First scoured Wikipedia and turned up nearly 2,000 hyperlinks on pages in 44 languages that pointed to 162 Pravda websites. It also found that some false information promoted by Pravda showed up in chatbot answers.

"They do even better in such places as China," the article points out, "where traditional media is more tightly controlled and there are fewer sources for the bots." (The nonprofit American Sunlight Project calls the process "LLM grooming".)

The article quotes a top Kremlin propagandist as bragging in January that "we can actually change worldwide AI."
United States

Trump-Branded 'Lab Leak' Page Replaces US Covid Information Sites (npr.org) 213

"There has never been a consensus or a 'smoking gun' to explain what started the pandemic," writes ABC News.

Yet the Associated Press reports that "A federal website that used to feature information on vaccines, testing and treatment for COVID-19 has been transformed into a page supporting the theory that the pandemic originated with a lab leak." (This despite the fact that "about 325 Americans have died from COVID per week on average over the past four weeks, according to the U.S. Centers for Disease Control and Prevention.") The covid.gov website shows a photo of President Donald Trump walking between the words "lab" and "leak" under a White House heading... The web page also accuses Dr. Anthony Fauci, the former director of the National Institute of Allergy and Infectious Diseases, of pushing a "preferred narrative" that COVID-19 originated in nature. The origins of COVID have never been proven. Scientists are unsure whether the virus jumped from an animal, as many other viruses have, or came from a laboratory accident. A U.S. intelligence analysis released in 2023 said there is insufficient evidence to prove either theory.
"Many scientists think it's more likely the virus originated naturally in a wild animal and then spilled over into people in a wildlife market located in Wuhan," reports NPR.

And even Jamie Metzl, a critic of the wildlife spillover theory, told NPR that while they appreciated "efforts to dig deeper... it would be a terrible shame if such efforts distracted from essential work to help prevent further infections and treat people suffering from COVID-19 and long COVID." (The federal website covidtests.gov now also redirects instead to the new page...) Some scientists were critical of the new site, which they say appears political in intent. "Every one of the five pieces of evidence supporting the lab leak hypothesis ... is factually incorrect, embellished, or presented in a misleading way," [wrote Angela Rasmussen, a virologist at the University of Saskatchewan in Canada]. "But making evidence-based arguments in good faith about the pandemic's origin is not the purpose of this document. This is pure propaganda, intended to justify the systematic devastation of the federal government, particularly programs devoted to public health and biomedical research," Rasmussen added.

Other scientists said the web site doesn't follow the existing body of scientific evidence on the issue. That evidence does not support "any of the many, often contradictory, lab leak scenarios that have been proposed," Michael Worobey, an evolutionary biologist at the University of Arizona, in an email to NPR. He argued that the evidence is consistent with "the less flashy hypothesis that bringing live animals infected with pathogens with pandemic potential into the heart of one of the biggest cities in the world was how this pandemic started.... the next pathogen with pandemic potential will find us easy pickings if we don't appreciate how risky this sort of 'biosafety level zero' activity is."

AI

Study Finds 50% of Workers Use Unapproved AI Tools 18

An anonymous reader quotes a report from SecurityWeek: An October 2024 study by Software AG suggests that half of all employees are Shadow AI users, and most of them wouldn't stop even if it was banned. The problem is the ease of access to AI tools, and a work environment that increasingly advocates the use of AI to improve corporate efficiency. It is little wonder that employees seek their own AI tools to improve their personal efficiency and maximize the potential for promotion. It is frictionless, says Michael Marriott, VP of marketing at Harmonic Security. 'Using AI at work feels like second nature for many knowledge workers now. Whether it's summarizing meeting notes, drafting customer emails, exploring code, or creating content, employees are moving fast.' If the official tools aren't easy to access or if they feel too locked down, they'll use whatever's available which is often via an open tab on their browser.

There is almost also never any malicious intent (absent, perhaps, the mistaken employment of rogue North Korean IT workers); merely a desire to do and be better. If this involves using unsanctioned AI tools, employees will likely not disclose their actions. The reasons may be complex but combine elements of a reluctance to admit that their efficiency is AI assisted rather than natural, and knowledge that use of personal shadow AI might be discouraged. The result is that enterprises often have little knowledge of the extent of Shadow IT, nor the risks it may present.
According to an analysis from Harmonic, ChatGPT is the dominant gen-AI model used by employees, with 45% of data prompts originating from personal accounts (such as Gmail). Image files accounted for 68.3%. The report also notes that 7% of empmloyees were using Chinese AI models like DeepSeek, Baidu Chat and Qwen.

"Overall, there has been a slight reduction in sensitive prompt frequency from Q4 2024 (down from 8.5% to 6.7% in Q1 2025)," reports SecurityWeek. "However, there has been a shift in the risk categories that are potentially exposed. Customer data (down from 45.8% to 27.8%), employee data (from 26.8% to 14.3%) and security (6.9% to 2.1%) have all reduced. Conversely, legal and financial data (up from 14.9% to 30.8%) and sensitive code (5.6% to 10.1%) have both increased. PII is a new category introduced in Q1 2025 and was tracked at 14.9%."

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