Former Google CEO says Facebook’s metaverse is ‘not necessarily the best thing for human society’ and expresses concerns about safety of artificial intelligence technology

Meta Facebook name change
Facebook CEO Mark Zuckerberg.

  • Former Google CEO Eric Schmidt said the metaverse is “not necessarily the best thing for human society.”
  • Schmidt spoke with the New York Times about his concerns about the future of artificial intelligence technology.
  • The former executive said he believes AI technology like the metaverse will eventually replace human relationships.

Former Google CEO Eric Schmidt is joining the sea of voices weighing in on Facebook’s metaverse and expressing concern about the future of artificial intelligence technology.

Schmidt, who served as Google’s top executive from 2001 to 2011 and as executive chairman until his departure in May 2020, told the New York Times that while he believes the technology will soon “be everywhere,” he warns it is “not necessarily the best thing for human society.”

“All of the people who talk about metaverses are talking about worlds that are more satisfying than the current world – you’re richer, more handsome, more beautiful, more powerful, faster,” Schmidt told the Times. “So, in some years, people will choose to spend more time with their goggles on in the metaverse. And who gets to set the rules? The world will become more digital than physical. And that’s not necessarily the best thing for human society.”

Schmidt said he views AI technology, which Meta uses to run a majority of its platforms’ algorithms, as a “giant, false god” that can create unhealthy and parasocial relationships.

“It will be everywhere,” he told New York Times opinion columnist Maureen Dowd. “What does an A.I.-enabled best friend look like, especially to a child? What does A.I.-enabled war look like? Does A.I. perceive aspects of reality that we don’t? Is it possible that A.I. will see things that humans cannot comprehend?”

The former Google executive isn’t alone in his concerns about AI. The technology has been increasingly criticized by business leaders in recent months, including Tesla CEO Elon Musk, who said his confidence is “not high”in the transparency and safety of AI within his own company. Meanwhile, some analysts say augmented reality poses even more risks of abuse than social media.

Schmidt’s comments come after Facebook announced Thursday it was changing its corporate name to Meta, and creating the metaverse as a virtual space where people can interact digitally using avatars. The company has been at the center of significant criticism in recent weeks after leaked documents exposed the company’s controversial business practices and technology.

Among the findings in the documents include including Facebook’s ability to counter misinformation, Instagram’s link to eating disorders in young girls and teenagers, and the treatment of politicians and celebrities on its platforms.

Since then, Facebook has increasingly emphasized its metaverse mission in an attempt to distance itself from the controversy. The company has since pushed back against the reports, calling them mischaracterizations. Facebook CEO Mark Zuckerberg told The Verge it was “ridiculous” for people to think that he changed Facebook’s name to Meta because of the backlash surrounding the leaked documents.

“From now on, we’ll be metaverse first, not Facebook first,” CEO Mark Zuckerberg said during the company’s Oculus Connect event. “Over time, you won’t need to use Facebook to use our other services.”

Facebook and Instagram usage among younger populations is already dwindling, as the platforms are increasingly being replaced by apps like TikTok and Snapchat. According to Piper Sandler’s “Taking Stock With Teens”, 81% of teens surveyed said they used Instagram, the highest percentage out of all the platforms. 77% said they use Snapchat and 73% said they use TikTok. Only 27% of respondents said they use Facebook, the least of all the platforms.

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An artificial intelligence tool is helping retailers and manufacturers weather the holidays by simulating supply chain issues before they happen

Visitors watch a digital twins simulation service system for sports venues by Intel at the Apsara Conference, a cloud computing and artificial intelligence (AI) conference, in Hangzhou, in China's eastern Zhejiang province on October 19, 2021.
Visitors watch a digital twins simulation service system for sports venues by Intel at the Apsara Conference, a cloud computing and artificial intelligence (AI) conference, in Hangzhou, in China’s eastern Zhejiang province on October 19, 2021.

  • Digital twins are used by businesses to run simulations and identify issues before they occur.
  • Companies are using digital twins to stress-test their supply chains, Technology Review reported.
  • Digital twins use data on social media, consumers, and global factors to run simulations.

As supply chain disruptions pummel industries across the globe ahead of the holiday season, a simulation tool powered by artificial intelligence (AI) has the power to help businesses predict disruptions to their supply chains and minimize their effects, according to MIT Technology Review.

Digital twins are virtual representations of real-world objects or systems, such as global supply chains, that are used to run simulations and identify issues before they occur. MIT Data Science Lab Director David Simchi-Levi told Technology Review that an increasing number of companies are using this tool to stress-test their supply chains.

“What if there’s a drought in Taiwan and the water shortage shuts down microchip manufacturing? A digital twin could predict the risk of this happening, trace the impact it would have on your supply chain, and – using reinforcement learning – suggest what actions to take to minimize the harm,” Technology Review reported.

From consumer behavior to geopolitical implications and social media trends, digital twins use vast amounts of data on a variety of factors to run simulations, which trains their AIs to analyze the data and make predictions, according to Technology Review.

For example, British consumer goods manufacturer Unilever PLC owns over 400 brands and offers its products in more than 190 countries. The company teamed up with Microsoft in 2019 to create digital twins of its 300 global plants to optimize their operation, The Wall Street Journal reported.

A pilot digital twin was created for a Unilever facility in Valinhos, Brazil, that saved the company $2.8 million dollars by cutting down on energy use and driving productivity, the company told WSJ.

While it’s mostly large companies currently utilizing the technology, Simchi-Levi told Technology Review that with a million dollars and 18 months, a company could enjoy “many of the benefits” of digital twins.

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C3.ai jumps 17% after the company announces a 5-year extension of its partnership with Shell

Tom Siebel
Tom Siebel, CEO of the artificial intelligence firm C3.ai.

  • C3.ai stock jumped as much as 19% on Tuesday before ending the day 17% higher.
  • The share price increase came after the company announced a 5-year extension of its Shell partnership.
  • C3.ai created the Open AI Energy Initiative (OAI) with Shell, Baker Hughes, and Microsoft earlier this year.
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C3.ai shares jumped as much as 19% on Tuesday after the company announced a 5-year extension of its partnership with Shell. The stock closed roughly 17% higher.

The partnership will help accelerate the deployment of enterprise artificial intelligence and machine learning applications on the C3 AI Suite at Shell and across energy markets.

Specifically, it will “address reliability, asset integrity, and process optimization” within energy markets to help enable a transition to clean energy, according to a press release.

The partnership is a “significant expansion of the relationship C3.ai and Shell initially developed several years ago” and will build on on C3.ai’s Open AI Energy Initiative (OAI), which was launched earlier this year.

The OAI is a first-of-its-kind open ecosystem of AI solutions to help transform the energy industry launched by C3.ai in conjunction with Shell, Baker Hughes, and Microsoft.

According to C3.ai’s Chairman and CEO Thomas Siebel, the program will help “ensure climate security” and drive clean energy adoption through “the digital transformation of the energy industry.”

“Together with Shell, we are committed to driving cleaner energy and climate initiatives globally through the power of tried, tested, and scalable enterprise AI-based solutions. Our collaboration will shape the global market for AI/ML applications in the energy and resource industries,” Siebel said in a statement.

Thomas Siebel, C3.ai’s billionaire CEO and a former Oracle exec, founded the artificial intelligence company in 2009. Since then, it’s become a leader in artificial intelligence applications, boasting clients both public and private including the US Air Force, 3M, and Raytheon.

C3.ai went public in December of last year, pricing its initial offering at $42 a share, well above the originally expected range of between $36 and $38 a share.

On its first day of trading, shares opened at $100 and the company ended the day with a 140% gain, boasting a lofty valuation.

In 2021, however, C3.ai’s stock has fallen roughly 51% as its growth figures have failed to live up to expectations.

In its first-quarter earnings report on March 1, the company revealed total revenue growth of just 19%, hitting $49.1 million. For a company that was trading at roughly 70x sales, the figure was hardly what investors were hoping for.

Analysts have given C3.ai mixed reviews as well. Morgan Stanley recently tagged the firm with a “sell” rating and a $60 price target.

Overall, C3.ai holds 7 “buy” ratings, 2 “hold” ratings, and 3 “sell” ratings from analysts.

Shares of C3.ai traded up 15.87% as of 3:53 p.m. ET on Tuesday.

c3.ai stock chart
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