AI Experts Acknowledge Risks, but Disagree on Solutions, Say Scientists
Good morning! Happy Cinco de Mayo! Today, we celebrate the Mexican army's victory over the French forces at the Battle of Puebla on May 5, 1862. This day is now widely recognized in the United States as a celebration of Mexican culture and heritage.
As we honor this important holiday, it's important to also consider the impact of supply chain management in the production and distribution of the goods and services that are integral to this celebration. So, let's raise a glass and dive into the world of Cinco de Mayo supply chain management! 🇲🇽
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Computer scientists who helped develop artificial intelligence are warning of the dangers of the technology but do not agree on what the dangers are or how to prevent them. Geoffrey Hinton, the “Godfather of AI”, expressed concerns about “smart things” that can manipulate people and warned of a threat to humanity. However, he did not offer a solution. Fellow AI pioneer Yoshua Bengio shares Hinton’s concerns but said “we’re doomed” was not the solution, urging governments and the population to take the dangers of AI seriously. Other researchers believe that fears around AI are detached from the reality of its capabilities.
Check out today’s featured article from AP News to read about the concerning warnings being issued by the “Godfather of AI”. Has humanity gone too far for the sake of efficiency? Or is AI simply the tool many experts indicate it is?
Featured Article:
Scientists warn of AI dangers but don’t agree on solutions | AP News
“Computer scientists who helped build the foundations of today’s artificial intelligence technology are warning of its dangers, but that doesn’t mean they agree on what those dangers are or how to prevent them.”
Inflation & Loans 💰
Federal Reserve Raises Rates by 0.25 Points and Hints at Possible Conclusion to Rate Hiking
The Federal Reserve has approved its 10th interest rate increase, raising its benchmark borrowing rate by 0.25 percentage point to 5%-5.25%, the highest since August 2007. However, the Fed has hinted that the current tightening cycle is at an end, with the statement omitting a sentence present in the previous statement saying that "the Committee anticipates that some additional policy firming may be appropriate" for the Fed to achieve its 2% inflation goal. Though central bank officials insist that the industry as a whole is stable, an expected tightening in credit conditions and heightened regulations ahead are expected to weigh further on economic growth.
The statement from this week's meeting also reiterated that economic growth has been "modest" while "job gains have been robust" and inflation is "elevated." Markets are anticipating that slower growth and the possibility of recession will force the Fed to cut rates later this year.
Electric Vehicles & Sustainability ♻️
Tesla unveils supply chain emission detail
Tesla has released its 2022 impact report, which for the first time details its Scope 3 emissions. The report reveals that most of Tesla’s carbon footprint comes from its supply chain, with the goods and services procured from third-party vendors accounting for around 22.3 million tons of carbon emissions in 2022. The biggest source of Scope 3 emissions comes from battery emissions, which accounted for 27% of the total, followed by emissions from aluminum and steel, which accounted for 18% and 8% respectively. Tesla’s fuel-related activities, waste, and upstream transportation and distribution also contributed hundreds of thousands of tons of additional carbon emissions each.
Tesla’s supply chain emissions for 2022 were far smaller than those of traditional car manufacturers. For example, Ford's carbon emissions from the goods and services it procures stood at 40.5 million metric tons in 2022, despite selling fewer cars than Tesla. On the other end of the value chain, Tesla’s customers avoided releasing around 13.4 million metric tons of carbon emissions in 2022, equivalent to 33 billion miles of driving by gasoline-powered cars. The total emissions from consumers’ use of Tesla products were 3.4 million tons of carbon dioxide in 2022, in contrast to Ford, whose sold products emitted 286.5 million metric tons of carbon, accounting for more than 85% of its total 334.8 million metric tons in carbon emissions, which includes Scopes 1, 2 and 3.
Let’s Get Global 🌎
🚢 Shipping Industry Advocates for Prudence in Climate Targets. The International Chamber of Shipping (ICS), which represents 80% of the world's commercial fleet, has advised its members to consider the implications of a new plan to reduce maritime emissions before committing to it. Under the plan, shipping companies will input all their vessels’ emissions into a new software tool and will have to improve efficiency or use cleaner fuel to reduce their emissions by 60% by 2036. The ICS has put forward its own decarbonization proposals, including a $5 billion research and development fund, but critics have argued that the targets are insufficiently ambitious.
iLevel With You 🏡
More topics for the average American household to consider…
🚕 Waymo Autonomous Taxis Continue to Expand in Phoenix and San Francisco. Waymo has announced the expansion of its self-driving taxi services, with its robotaxis now covering an area of 180 square miles in Phoenix, double the size since late 2020. The company has also begun testing robotaxis in San Francisco, one of the US’ most densely populated cities with a reputation for challenging driving conditions. Waymo’s robots are providing 10,000 rides per week with no humans in the vehicles other than passengers, and the company expects its robotaxi fleet to provide 100,000 weekly rides by the summer of 2024.
📦 UPS to Open Seven Healthcare Logistics Facilities in 2023, According to Report. UPS aims to become the leading healthcare logistics provider in the world, according to CEO Carol Tomé. The healthcare logistics segment is more profitable on a per-shipment basis than business-to-consumer deliveries, which makes it attractive for carriers to invest in. UPS will open seven healthcare logistics facilities this year, adding 2.3 million square feet of healthcare logistics space to its global network.
🤝 Flexport acquires Shopify's logistics business to compete with Amazon. Flexport is acquiring Shopify’s logistics business, which includes dozens of warehouses and sorting centers, as the digital freight forwarder aims to expand its e-commerce fulfillment operations. The deal will enable Flexport to become a potential rival to Amazon for fulfillment services for online merchants. The acquisition also marks a move away from logistics for Shopify, which is effectively abandoning efforts to create its own logistics operation.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🏆 There are five key factors for CPG Companies to Improve Profit. For Consumer Packaged Goods (CPG) companies, optimizing their complex supply chain is a critical challenge that requires end-to-end visibility and rich data to make informed decisions. The right supply chain management (SCM) platform is key to success, allowing companies to get products to market faster, build a resilient supply chain, improve brand loyalty, enhance operational efficiency, and lower costs. Selecting the right platform is crucial for CPG companies to stay competitive in a rapidly changing market.
🚢 Current Developments of Cargo Diversions in the US. According to port and real estate data, the efforts to keep cargo moving over the past few years have left a significant impact on US cargo flows. Shippers have reconfigured their logistics networks to seek reliability in their supply chains, with many diverting cargo away from congested gateways and towards facilities near fast-growing population hubs. This has benefited dozens of ports nationwide, but the question remains whether these trends will continue.
🤖 Gartner warns that smart factories can create obstacles despite their ability to revolutionize supply chains. According to a report from Gartner Inc., smart factory operations can help achieve high priorities, but many companies underestimate the challenges of running such a facility. Successful smart factory initiatives require cultural and operational transformations that can be slow and will require entirely new organizational designs to integrate the new capabilities within the broader supply chain. Gartner drafted five top risks to avoid when launching new smart factory initiatives.
The Workday Dash is an aggregation of articles regarding the transportation logistics, trucking, and supply chain industries for November 27, 2024, from iLevel Logistics Inc.