One of the central topics of discussion at this year’s World Economic Forum gathering of the global elites at Davos, Switzerland, both on the public platforms and in the private suites where much of the real business is done, is artificial intelligence (AI).
Yann LeCun, Meta’s lead AI scientist and pioneer of AI attends the Annual Meeting of World Economic Forum in Davos, January 16, 2024. [AP Photo/Markus Schreiber]
AI represents a major advance in technology with the capacity to enormously develop the productivity of labour and thereby provide the basis for social advancement.
But its development under the social relations of capitalism, based on the private ownership of the means of production (including so-called intellectual property) and the extraction of private profit, means it will not have this effect but the reverse.
This fact of economic and political life, which poses the need for the establishment of socialist economic relations, is acknowledged, albeit indirectly, in the Global Risks Report prepared by the WEF for this week’s meeting.
It said the convergence of technological advances and geopolitical dynamics, an oblique reference to the rise of militarism led by the US, would likely create a new set of winners and losers in advanced and developing countries alike.
“If commercial incentives and geopolitical imperatives, rather than public interest, remain the primary drivers of the development of… AI and other frontier technologies, the digital gap between high- and low-income countries will drive a stark disparity in the generation of related benefits—and risks. Vulnerable countries and communities would be left further behind, digitally isolated from turbocharged AI breakthroughs impacting economic productivity, finance, climate, education and health care, as well as related job creation.”
In other words, rather than becoming a means to end global social inequality and impoverishment the development of AI, according to the profit motive and the interests of the major capitalist powers, will worsen it.
In another section of the document, it points to the vast implications of AI and other advanced technologies.
“Unchecked proliferation of increasingly powerful general purpose AI technologies will radically reshape economies and societies over the coming decade… It will also interact with parallel developments. Intentional misuse is not required for the implications to be profound.
“Novel risks will arise from self-improving generative AI models that are handed increasing control over the physical world, triggering large-scale changes to socioeconomic structures.”
One is reminded of the observation by Marx in the Communist Manifesto that the bourgeoisie is like the sorcerer’s apprentice who had conjured up spirits from the nether world which he did not know how to control.
And at a deeper level it recalls Marx’s analysis that the objective historical necessity for socialism, achieved through social revolution carried out by the working class, arises from the contradiction between the development of the productive forces and the social relations of capitalism in which they are encased.
The alternative to this perspective is the descent into barbarism of which war is most obvious expression.
AI, as the WEF report pointed to, plays a critical role here.
“The creep of machine intelligence into conflict decision-making—to autonomously select targets and determine objectives—would significantly raise the risk of accidental or intentional escalation over the next decade,” it said.
Others have also been sounding warnings. Back in October, in an interview with the Financial Times (FT), the chair of the US Securities and Exchange Commission, Gary Gensler, said unless a way was found to control the use of AI platforms in the financial system then a crisis was “nearly unavoidable” in the next decade.
He said the use by market participants of the same AI models could generate “herd” behaviour and unleash a crisis.
These warnings were echoed by the governor of the Bank of Spain, and the chair of the Basel Committee in Banking Supervision, Pablo Hernández, in an interview with the FT on the eve of the Davos meeting.
He said fast-developing technology, in particular AI, “could change the course of history, not necessarily for the good.”
The increase in economic problems over the past decade meant that greater international cooperation was needed.
“However, what we are observing at the geopolitical level shows that reaching common agreements is becoming more and more difficult. That is a concern for me, and it is a concern for many people,” he said.
“Financial stability is only one dimension, there are many other potentially more important consequences related to AI.… If we are not able to give a co-ordinated global response, the likelihood of getting the right solution to these challenges will be reduced.”
But as the need for global cooperation increases, the prospect for achieving it founders on a central contradiction of the capitalist system—that between the integrated and interconnected world economy and system of rival nation-state and great powers, each pursuing its own interests.
The increased use of AI in all sections of industry will also lead to what is euphemistically termed the “restructuring” of the labour market.
Last March Goldman Sachs issued a report saying that AI could lead to the automation of a quarter of the work carried out in the US and the euro zone.
It said AI systems that generate content indistinguishable from human output could increase annual gross domestic product by 7 percent over the next decade. But this increase in productivity would result not in the material improvement in living standards but in increased profit.
The report said AI would bring “significant disruption” to the labour market with some 300 million workers in major economies exposed to its effects and that two-thirds of all jobs were exposed to some degree of automation.
A survey conducted by the accounting firm PwC of global chief executives, released as the Davos meeting began, said a quarter of them expected that AI would lead to a reduction in employment of 5 percent this year. Some 46 percent said that the use of generative AI which can generate text, images and code in seconds would boost profits over the course of the next year.
These reports and surveys underscore the enormous potential of AI for increasing wealth but that left in the hands of the capitalist ruling classes it will not bring social advancement but further inequality and misery. Rather than bringing about the global cooperation needed for its harmonious development, it will only intensify the geopolitical conflicts and tensions already manifesting themselves in war.
TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.
The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.
The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.
Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.
Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.
Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.
This report by The Canadian Press was first published Sept. 19, 2024.
Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.
Here’s a timeline of key events in the bread price-fixing case.
Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.
Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.
Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.
Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).
Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.
June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.
Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”
Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.
July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.
Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.
This report by The Canadian Press was first published Sept. 19, 2024.
Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)
TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.
Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.
The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.
As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.
TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.
TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.
This report by The Canadian Press was first published Sept. 19, 2024.
