Google’s release of Gemini 3 Pro has proven disruptive enough that even Sam Altman is acknowledging the pressure

Posted on by Editorial Team

According to reporting from The Information, the OpenAI CEO warned employees in an internal memo that the company is heading into “tough times,” with revenue growth potentially dropping to around 5%, a sharp contrast to the triple-digit expansion the company previously enjoyed.

Google’s Gemini 3 Pro resets expectations

Gemini 3 Pro’s performance has positioned Google as the current pace-setter in large-scale AI, particularly in pre-training efficiency and multimodal reasoning. Altman, who has typically projected confidence bordering on inevitability, admitted internally that Google has “done excellent work across the board recently.” The memo frames this as a pivotal moment: the company that once felt unstoppable now needs to “catch up quickly” and make “bold strategic decisions”, even if that means temporarily falling behind competitors.

A morale shift inside OpenAI

Employees reportedly reacted with a mix of appreciation for the transparency and concern over what it signals. Mentions of a potential hiring freeze underscore that the tone inside the company has shifted. OpenAI is simultaneously pushing ahead on a new model, codenamed Shallotpeat, rumoured to improve error correction in early training phases, though details remain scarce.

Revenue expectations cool

The most tangible sign of a slowdown is financial. Internal forecasts indicate that revenue growth by 2026 could fall to 5–10%, despite earlier projections of $13 billion in revenue by 2025. This is especially striking given Altman’s previous stance that profitability was a distant priority; he once projected a cumulative loss of $74 billion by 2028. But with Anthropic reportedly targeting break-even around the same timeframe, OpenAI may find itself reevaluating its appetite for long-term losses.

Enterprise AI demand is flattening

The broader generative-AI market is also showing signs of cooling. Microsoft delayed deeper AI integrations into Azure due to infrastructure constraints, and Salesforce is scaling back GPT pilots that failed to progress beyond experimentation. Analysts estimate that roughly 95% of enterprise AI initiatives never make it to full deployment. Meanwhile, data-center capital expenditures are approaching $400 billion – quadruple previous cycles – without proportional revenue returns, according to Morgan Stanley.

For OpenAI, this combination of rising infrastructure costs, slower enterprise adoption, and renewed pressure from Google forms a significant strategic crossroads. The company that had become accustomed to launching products into insatiable demand now has to operate in a market where enthusiasm alone no longer guarantees adoption.

Meta Had Evidence of Instagram’s Psychological Harm, and Buried It, New Documents Suggest

Posted on by Editorial Team

A newly unredacted court filing in the United States sheds fresh light on how *Meta evaluated the impact of its platforms and why some of those findings never reached the public. The documents, part of a lawsuit brought by multiple school districts against *Meta, Google, TikTok, and Snapchat, reveal that *Meta obtained direct internal evidence that *Instagram and *Facebook negatively affect users’ mental health.

Inside “Project Mercury”

At the centre of the claims is Project Mercury, an internal study conducted roughly five years ago. According to the filing, Meta analysed what happened when users stepped away from its platforms for a week. The result: reported drops in depression, anxiety, loneliness, and the relentless comparison loop many users describe.

The plaintiffs argue that these results were so damaging that *Meta shut the project down. Internally, executives reportedly attributed the decision to “a negative media narrative”, suggesting the data was tainted by public criticism, an explanation the lawsuit challenges.

Why It Matters: Potentially Misleading Congress

If the claims hold up, they directly contradict Meta’s previous testimony before the U.S. Congress. The company has repeatedly stated that it could not quantify the impact of its products on teenage mental health. The unredacted documents indicate that it could, and did.

The filing also outlines a number of internal shortcomings:

Child-safety systems were designed in ways that made them rarely activated.

Potentially harmful product features received limited testing.

Moderation tools sometimes acted only after severe or repeated violations; in one cited case, an account allegedly made 17 attempts to facilitate human trafficking before being removed.

Internal teams knew that harmful content increased teen engagement but continued surfacing it because it improved metrics.

One particularly stark allegation: in 2021, Mark Zuckerberg reportedly said that child safety was not his priority, as Meta’s top resources were directed toward building the metaverse.

Meta’s Response

Meta denies the accusations outright. Company spokesperson Andy Stone said the internal excerpts were “taken out of context” and that Project Mercury was discontinued due to flawed methodology, not inconvenient results. He also emphasized that teen safety is a core priority and that Meta’s anti-trafficking policy now mandates immediate removal of accounts following verified complaints.

What Happens Next

A hearing is scheduled for January 26, 2026, in federal court in Northern California. Meta has already asked the court to dismiss the internal documents from the case. If the judge allows them in, Meta will face significant questions: why its internal research reportedly conflicted with its public stance, and why product decisions continued even as evidence of harm accumulated.

This case could become one of the most consequential legal examinations of platform accountability in the social-media era.

How SEPA Instant Credit Transfer is Reshaping the Future of Banking Services

Posted on by Editorial Team

Grigory Alekseev is a highly skilled back-end developer specializing in Java and Scala, with extensive experience in fintech and information security. He has successfully delivered complex, high-performance systems, including spearheading the integration of SEPA Instant Credit Transfer at Revolut, enabling instant money transfers for over 300K customers.

There is a fundamental change taking place in the European payments landscape. SEPA Instant Credit Transfer (SCT Inst) has changed from being an optional feature to a crucial part of the banking infrastructure as 2025 draws near. Working with various financial institutions during their instant payments journey, I have witnessed how this shift is changing the paradigm for banking services as a whole, not just payment processing.

Why SEPA Instant Is a Game-Changer for Banks

The appeal of SEPA Instant extends far beyond just facilitating quicker payments. The 10-second settlement window is impressive, but what’s really changed is how this capability is changing the competitive landscape and customer expectations in European banking.

Batch-processed traditional SEPA credit transfers are a thing of the past. Customers of today demand the same immediacy from their financial transactions because they are used to instant messaging and real-time notifications. SEPA Instant allows banks to provide services that were previously unattainable, such as real-time marketplace settlements and instant loan disbursements, by delivering payments in less than 10 seconds.

Perhaps more revolutionary than speed is availability. SEPA Instant is open 24/7. Because of this, banks are now able to provide genuinely continuous services, catering to the gig economy, global trade, and evolving lifestyles where financial demands don’t adhere to regular banking hours. This greatly increases customer retention and satisfaction while generating new revenue streams for banks.

The Challenges: Navigating the Real-Time Reality

SEPA Instant integration has advantages, but it also has drawbacks that call for careful preparation and implementation.

Real-time processing has significant technical requirements. Instant payments necessitate quick decision-making skills, in contrast to batch processing, where mistakes can be fixed overnight. To manage high-frequency, low-latency transactions while upholding the same reliability standards as conventional payments, banks must modernize their core systems. This frequently entails restoring the core infrastructure that banks have relied on for many years.

SEPA Instant operates under strict regulatory frameworks, such as the updated Payment Services Directive (PSD2) and several anti-money laundering (AML) regulations. In order to maintain thorough audit trails, banks must make sure their systems can conduct compliance checks within the allotted 10-second window. When taking into account the various regulatory interpretations among EU member states, the difficulty increases.

Predictable batch processing windows are the lifeblood of traditional liquidity management. As SEPA Instant allows money to flow around the clock, banks must essentially rethink their cash management strategies. Since the traditional end-of-day balancing is no longer adequate to achieve accurate financial reporting and risk management, real-time reconciliation becomes essential.

Even well-designed systems can be stressed by high transaction volumes. Banks must design their systems to withstand unexpected spikes (think Black Friday sales or emergencies) without sacrificing security or performance. This calls for thorough capacity planning, stress testing, and reliable technology.

The smooth integration of several systems, including payment processors, fraud detection systems, third-party service providers, and core banking platforms, is essential to SEPA Instant success. One of the biggest architectural challenges is making sure these systems function well together in real time.

SEPA Instant’s speed, which draws users in, also opens up new avenues for fraud. Conventional fraud detection systems may have trouble making decisions in real time because they are made for batch processing. Because instant payments are irreversible, it is very difficult to recover from a fraudulent transaction once it has been authorized.

Solutions and Best Practices: Building for the Real-Time Future

Successful SEPA Instant integration requires a multi-faceted approach combining technology innovation, process redesign, and strategic partnerships.

Modern fraud prevention for instant payments employs a sophisticated multi-tier approach that balances speed with security. The first tier provides immediate risk assessment, categorizing incoming payments as green (low risk), yellow (medium risk), or red (high risk) within milliseconds. This rapid initial screening allows banks to approve low-risk transactions instantly while adhering to the SEPA Instant protocol requirements.

In order to process yellow-category payments, the second tier conducts more in-depth analysis concurrently with payment processing. Even though the payment may have already been made, this more thorough examination may lead to post-settlement procedures like account monitoring, further verification requests, or, in the worst situations, fund freezing while an investigation is conducted. This strategy maintains strong fraud protection without sacrificing the customer experience.

Transactions that are red-flagged are instantly rejected, and the system gives the sending bank the relevant reason codes. These classifications are constantly improved by machine learning algorithms based on consumer behavior, transaction patterns, and new fraud trends.

Real-time payments are simply too fast for manual processes. End-to-end automation is being used by banks for routine tasks like handling exceptions and onboarding new customers. This includes intelligent routing based on transaction characteristics, real-time limit management, and automated compliance checking.

In the context of instant payments, handling exceptions becomes especially important. Banks are creating intelligent escalation systems that can swiftly route complex cases to human operators with all pertinent context pre-populated, while also making decisions on their own for common scenarios.

Successful banks are establishing strategic alliances with fintech firms, payment processors, and technology vendors rather than developing all of their capabilities internally. In addition to offering access to specialized knowledge in fields like fraud detection, regulatory compliance, or customer experience design, these collaborations can shorten time-to-market.

Many banks are also participating in instant payment schemes and industry initiatives that promote standardization and interoperability, reducing individual implementation burdens while ensuring broader ecosystem compatibility.

The Long-Term Outlook: Beyond Basic Instant Payments

SEPA Instant is only the start of a larger financial services revolution. Next-generation banking services are built on the infrastructure and capabilities created for instant payments.

Request-to-Pay services, which allow companies to send payment requests that clients can immediately approve, are made possible by the real-time infrastructure. By removing the hassle of conventional payment initiation procedures, this capability is revolutionizing business-to-business payments, subscription services, and e-commerce.

Cross-border instant payments are on the horizon, with initiatives to connect SEPA Instant with similar systems in other regions. The best-positioned banks to take advantage of this growing market will be those that have mastered domestic instant payments.

The embedded finance trend, which involves integrating financial services directly into non-financial applications, is well suited to SEPA Instant’s API-driven architecture. Banks can provide mobile applications, accounting software, and e-commerce platforms with instant payment capabilities, generating new revenue streams and strengthening client relationships.

As central bank digital currencies (CBDCs) move from concept to reality, the infrastructure developed for SEPA Instant provides a natural foundation for CBDC integration. Banks with mature real-time payment capabilities will be better positioned to participate in the digital currency ecosystem as it evolves.

The competitive landscape is clear: institutions that delay SEPA Instant integration risk falling behind in the customer experience race. Early adopters are already using instant payment capabilities to differentiate their services, attract new customers, and enter new markets.

Predictive Network Maintenance: Using AI for Forecasting Network Failures

Posted on by Editorial Team

Author: Akshat Kapoor is an accomplished technology leader and the Director of Product Line Management at Alcatel-Lucent Enterprise, with over 20 years of experience in product strategy and cloud-native design.

In today’s hyper-connected enterprises—where cloud applications, real-time collaboration and mission-critical services all depend on robust Ethernet switching—waiting for failures to occur simply is no longer tenable. Traditional, reactive maintenance models detect switch faults only after packet loss, throughput degradation or complete device failure. By then, customers have already been affected, SLAs breached and costly emergency fixes mobilized. Predictive maintenance for Ethernet switching offers a fundamentally different approach: by continuously harvesting switch-specific telemetry and applying advanced analytics, organizations can forecast impending faults, automate low-impact remediation and dramatically improve network availability.

Executive Summary

This white paper explores how predictive maintenance transforms Ethernet switching from a break-fix paradigm into a proactive, data-driven discipline. We begin by outlining the hidden costs and operational challenges of reactive maintenance, then describe the telemetry, analytics and automation components that underpin a predictive framework. We’ll then delve into the machine-learning lifecycle that powers these capabilities—framing the problem, preparing and extracting features from data, training and validating models—before examining advanced AI architectures for fault diagnosis, an autonomic control framework for rule discovery, real-world benefits, deployment considerations and the path toward fully self-healing fabrics.

The Cost of Reactive Switching Operations

Even brief interruptions at the leaf-spine fabric level can cascade across data centers and campus networks:

  • Direct financial impact
     A single top-of-rack switch outage can incur tens of thousands of pounds in lost revenue, SLA credits and emergency support.
  • Operational overhead
     Manual troubleshooting and unscheduled truck rolls divert engineering resources from strategic projects.
  • Brand and productivity erosion
     Repeated or prolonged service hiccups undermine user confidence and degrade workforce efficiency.

Reactive workflows also struggle to keep pace with modern switching architectures with high speed networks, multivendor, multi-os environments and overlay fabrics (VXLAN-EVPN, SD_WAN) obscuring the root causes.

By the time alarms trigger, engineers may face thousands of error counters, interface statistics and protocol logs—without clear guidance on where to begin.

A Predictive Maintenance Framework

Predictive switching maintenance reverses the order of events: it first analyzes subtle deviations in switch behavior, then issues alerts or automates remediation before packet loss materializes. A robust framework comprises four pillars:

1. Comprehensive Telemetry Collection

– Physical-layer metrics: per-port CRC/FEC error counts; optical power, temperature and eye-diagram statistics for SFP/SFP28/SFP56 transceivers; power-supply voltages and currents.
– ASIC and fabric health: queue-depth and drop-statistics per line card; ASIC-temperature and control-plane CPU/memory utilization; oversubscription and arbitration stalls.
– Control-plane indicators: BGP route-flap counters; OSPF/IS-IS adjacency timers and hello-loss counts; LLDP neighbor timeouts.
– Application-level signals: NetFlow/sFlow micro-burst detection; per-VLAN or per-VXLAN-segment flow duration and volume patterns.

Real-time streams and historical archives feed into a centralized feature store, enabling models to learn seasonal patterns, rare events and gradual drifts.

2. Machine-Learning Lifecycle for Networking

Building an effective predictive engine follows a structured ML workflow—crucial to avoid ad-hoc or one-off models. This lifecycle comprises: framing the problem, preparing data, extracting features, training and using the model, then feeding back for continuous improvement .

  • Frame the problem: Define whether the goal is classification (e.g., fault/no-fault), regression (time-to-failure), clustering (anomaly grouping) or forecasting (traffic volume prediction).
  • Prepare data: Ingest both offline (historical fault logs, configuration snapshots) and online (real-time telemetry) sources: flow data, packet captures, syslogs, device configurations and topology maps.
  • Feature extraction: Compute statistical summaries—packet-size variance, flow durations, retransmission rates, TCP window-size distributions—and filter out redundant metrics.
  • Train and validate models: Split data (commonly 70/30) for training and testing. Experiment with supervised algorithms (Random Forests, gradient-boosted trees, LSTM neural nets) and unsupervised methods (autoencoders, clustering). Evaluate performance via precision, recall and F1 scores.
  • Deploy and monitor: Integrate models into streaming platforms for real-time inference and establish MLOps pipelines to retrain models on schedule or when topology changes occur, preventing drift.

3. Validation & Continuous Improvement

– Pilot deployments: A/B testing in controlled segments (e.g., an isolated VLAN or edge cluster) validates model accuracy against live events.
– Feedback loops: NOC and field engineers annotate false positives and missed detections, driving iterative retraining.
– MLOps integration: Automated pipelines retrain models monthly or after major topology changes, monitor for drift, and redeploy updated versions with minimal disruption.

4. Automated Remediation

– Context-rich alerts: When confidence thresholds are met, detailed notifications pinpoint affected ports, line cards or ASIC components, and recommend low-impact maintenance windows.
– Closed-loop actions: Integration with SD-WAN or EVPN controllers can automatically redirect traffic away from at-risk switches, throttle elephant flows, shift VLAN trunks to redundant uplinks or apply safe hot-patches during off-peak hours.
– Escalation paths: For scenarios outside modelled cases or persistent issues, the platform escalates to on-call teams with enriched telemetry and root-cause insights, accelerating manual resolution.

Advanced AI Architectures for Fault Diagnosis

While traditional predictive maintenance often relies on time-series forecasting or anomaly detection alone, modern fault-management platforms benefit from hybrid AI systems that blend probabilistic and symbolic reasoning:

  • Alarm filtering & correlation
     Neural networks and Bayesian belief networks ingest streams of physical- and control-plane alarms, learning to compress, count, suppress or generalize noisy event patterns into high-level fault indicators.
  • Fault identification via case-based reasoning
     Once correlated alarms suggest a probable fault category, a case-based reasoning engine retrieves similar past “cases,” adapts their corrective steps to the current context, and iteratively refines its diagnosis—all without brittle rule sets .
  • Hybrid control loop
     This two-stage approach—probabilistic correlation followed by symbolic diagnosis—yields greater robustness and adaptability than either method alone. New fault outcomes enrich the case library, while retraining pipelines update the neural or Bayesian models as the fabric evolves.

Real-World Benefits

Organizations that have adopted predictive switching maintenance report tangible improvements:

  • Up to 50 percent reduction in unplanned downtime through pre-emptive traffic steering and targeted interventions.
  • 80 percent faster mean-time-to-repair (MTTR), thanks to enriched diagnostics and precise root-cause guidance.
  • Streamlined operations, with fewer emergency truck rolls and lower incident-management overhead.
  • Enhanced SLA performance, enabling “five-nines” (99.999 percent) availability that would otherwise require significant hardware redundancies.

Deployment Considerations

Transitioning to predictive maintenance requires careful planning:

  1. Data normalization
     – Consolidate telemetry formats across switch vendors and OS versions.
    – Leverage streaming telemetry protocols (gNMI, OpenConfig, InfluxDB) to reduce polling overhead.
  2. Stakeholder engagement
     – Demonstrate quick wins (e.g., detecting degrading optics) in pilot phases to build trust.
    – Train NOC teams on new alert semantics and automation workflows.
  3. Scalability & architecture
     – Use cloud-native ML platforms or on-prem GPU clusters to process terabytes of telemetry without impacting production controllers.
    – Implement a feature-store layer that supports low-latency lookups for real-time inference.
  4. Security & compliance
     – Secure telemetry streams with encryption and role-based access controls.
    – Ensure data retention policies meet regulatory requirements.

Toward Self-Healing Fabrics

Autonomic Framework & Rule Discovery

By embedding predictive analytics, hybrid AI architectures and an autonomic control framework at the switch level, organizations lay the groundwork for networks that not only warn of problems, but actively heal themselves—ensuring uninterrupted service, lower operational costs and greater agility in an ever-more demanding digital landscape.

To achieve true self-healing fabrics, predictive maintenance must operate within an autonomic manager—a control-loop component that senses, analyzes, plans and acts upon switch telemetry:

  1. Monitor & Analyze
     Streaming telemetry feeds are correlated into higher-order events via six transformations (compression, suppression, count, Boolean patterns, generalization, specialization). Visualization tools and data-mining algorithms work in concert to surface candidate correlations .
  2. Plan & Execute
     Confirmed correlations drive decision logic: high-confidence predictions trigger SD-WAN or EVPN reroutes, firmware patches or operator advisories, while novel alarm patterns feed back into the rule-discovery lifecycle.
  3. Three-Tier Rule-Discovery
     – Tier 1 (Visualization): Human experts use Gantt-chart views of alarm lifespans to spot recurring patterns.
    – Tier 2 (Knowledge Acquisition): Domain specialists codify and annotate these patterns into reusable correlation rules.
    – Tier 3 (Data Mining): Automated mining uncovers less obvious correlations, which experts then validate or refine—all maintained in a unified rule repository .

Embedding this autonomic architecture at the switch level ensures the predictive maintenance engine adapts to new hardware, topologies and traffic behaviours without manual re-engineering.

Predictive maintenance for Ethernet switching is a key stepping stone toward fully autonomic networks. Future enhancements include:

  • Business-aware traffic steering
     Models that incorporate application-level SLAs (e.g., voice quality, transaction latency) to prioritize remediation actions where they matter most.
  • Intent-based orchestration
     Declarative frameworks in which operators specify high-level objectives (“maintain sub-millisecond latency for video calls”), and the network dynamically configures leaf-spine fabrics to meet those goals.
  • Cross-domain integration
     Unified intelligence spanning switches, routers, firewalls and wireless controllers, enabling end-to-end resilience optimizations.

By embedding predictive analytics and automation at the switch level—supported by a rigorous machine-learning lifecycle—organizations lay the groundwork for networks that not only warn of problems but actively heal themselves. The result is uninterrupted service, lower operational costs and greater agility in an ever-more demanding digital landscape.

References

·  S. Iyer, “Predicting Network Behavior with Machine Learning,” Proceedings of the IEEE Network Operations and Management Symposium, June 2019
·  Infraon, “Best Ways to Predict and Prevent Network Outages with AIOps,” 2024

·  Infraon, “Top 5 AI Network Monitoring Use Cases and Real-Life Examples in ’24,” 2024

·  “Predicting Network Failures with AI Techniques,” White Paper, 2024

·           Denise W. Gürer, Irfan Khan, Richard Ogier, An Artificial Intelligence Approach to Network Fault Management


Failing Forward with Frameworks: Designing Product Tests That Actually Teach You Something

Posted on by Editorial Team

Contributed by Sierrah Coleman.
Sierrah is a Senior Product Manager with expertise in AI/ML, predictive AI, and recommendation systems. She has led cross-functional teams at companies like Indeed, Cisco, and now Angi, where she developed and launched scalable, data-driven products that enhanced user engagement and business growth. Sierrah specialises in optimising recommendation relevance, driving AI-powered solutions, and implementing agile practices.

In product management, people often say: “fail fast,” “fail forward,” and “fail better.” But the reality is that failure isn’t valuable unless you learn something meaningful from it.

Product experiments are often viewed through a binary lens: Did the test win or lose? This yes-or-no framing may work for go/no-go decisions, but it’s an ineffective approach to driving real progress. The most powerful experiments aren’t verdicts—they’re diagnostics. They expose hidden dynamics, challenge assumptions, and reveal new opportunities for your platform. To build more innovative products, we must design experiments that teach, not just decide.

Learning > Winning

Winning an experiment feels rewarding. It validates the team’s work and is often seen as a sign of success. However, important questions may remain: What exactly made it successful?

Conversely, a “losing” test is sometimes dismissed without extracting insight from the failure—a missed opportunity. Whether a test “wins” or “loses,” its purpose should be to deepen the team’s understanding of users, systems, and the mechanics of change.

Therefore, a strong experimentation culture prioritizes learning over winning. Teams grounded in this mindset ask: What will this experiment teach us, regardless of the result?

When teams focus on learning, they uncover product insights on a deeper level. For example, suppose a new feature meant to increase engagement fails. To understand the underlying issue, a dedicated team might analyze user feedback, session recordings, and drop-off points. In doing so, each experiment becomes a stepping stone for progress.

Experiments also foster curiosity and resilience. Team members become more comfortable with uncertainty, feel encouraged to try unconventional ideas, and embrace unexpected outcomes. This mindset reframes failure as a source of knowledge—not a setback.

How to Design Tests That Teach

To make experimentation worthwhile, you need frameworks that move beyond binary outcomes. Well-designed experiments should explain why something worked—or why it didn’t. Below are three frameworks I’ve used successfully:

  1. Pre-mortems: Assume Failure, Learn Early

Before launching a test, pause and imagine it fails. Then ask: Why? This pre-mortem approach reveals hidden assumptions, uncovers design flaws, and helps clarify your learning goals. Why are you really running this experiment?

By predicting failure scenarios, teams can better define success criteria and prepare backup hypotheses in advance.

Pre-mortems are especially useful when diverse perspectives are involved. For example, designers, product managers, and customer support specialists may surface unique risks and blind spots that a single-function team could miss.

  1. Counterfactual Thinking

Instead of asking, “Did the experiment win or lose?”, ask: “What would have happened if we hadn’t made this change?” This mindset—known as counterfactual thinking—encourages deeper analysis.

When paired with historical data or simulations, teams can “replay” user interactions under different conditions to isolate the impact of a specific change. This approach not only identifies whether something worked—it reveals how and why it worked.

Counterfactual analysis also helps teams avoid false positives. By comparing actual results against initial hypotheses, they can separate the true effect of a change from external factors like seasonality, market shifts, or concurrent product releases. The result? More accurate experimental conclusions.

  1. Offline Simulations

When live testing is slow, expensive, or risky—simulate instead. Offline simulations allow you to control variables, model edge cases, and iterate quickly without exposing real users to unproven changes.

Simulations improve precision by offering detailed environment breakdowns, isolating variables, and uncovering scenarios that live tests might miss. They also create a low-risk space for new team members to explore ideas and build confidence through iteration.

Case Study: Building an Offline Simulator to Learn Faster, Not Just Fail Faster

At Indeed, our recommender systems powered job search experiences by ranking results, suggesting jobs, and personalizing interactions. Improving these models was a priority. However, the process was slow—each change required a live A/B test, which meant long timelines, engineering overhead, and user risk.

This limited the number of experiments we could run and delayed learning when things didn’t work. We needed a better path forward.

The Solution: Build an Offline Simulator

I partnered with our data science team to build an offline simulation platform. The idea was simple: What if we could test recommendation models without real users?

Together, we applied the three strategies above:

  • Pre-mortem mindset: We assumed some models would underperform and defined the insights we needed from those failures.
  • Synthetic user journeys: We modeled realistic and edge-case behaviors using synthetic data to simulate diverse search patterns.
  • Counterfactual analysis: We replayed past user data through proposed models to evaluate performance under the same conditions, uncovering hidden trade-offs before deployment.

This approach didn’t just predict whether a model would win—it helped explain why by breaking down performance across cohorts, queries, and interaction types.

The Impact

The simulation platform became a key pre-evaluation tool. It helped us:

  • Reduce reliance on risky live tests in early stages
  • Discard underperforming model candidates before they reached production
  • Cut iteration timelines by 33%, accelerating improvement cycles
  • Design cleaner, more purpose-driven experiments

It shifted our mindset from “Did it work?” to “Why did it—or didn’t it—work?”

Culture Shift: From Testing to Teaching

If your experimentation culture revolves around shipping winners, you’re missing half the value. A true experiment should also educate. When every test becomes a learning opportunity, the return on experimentation multiplies.

So ask yourself: Is your next experiment designed to win, or designed to teach? If the answer is “to win,” then refocus it—because it should also teach.

Let your frameworks reveal more than just outcomes—let them reveal opportunities.

Finally, remember: designing tests that teach is a skill. It gets stronger with practice. Encourage teams to reflect on their hypotheses, iterate on setups, and keep refining their methods. The more you focus on learning, the more valuable your product insights will be.

Over time, your team will be better equipped to tackle complex challenges with confidence, curiosity, and creativity.

Data quality for unbiased results: Stopping AI hallucinations in their tracks

Posted on by Editorial Team

Artificial Intelligence is changing customer-facing businesses in big ways, and its impact keeps growing. AI-powered tools deliver real benefits for both customers and company operations. Still, adopting AI isn’t without risks. Large Language Models often produce hallucinations, and if these are fed biased or incomplete data, they can lead to costly mistakes for organizations.  

For AI to produce reliable results, it needs data that is full, precise, and free of bias. When training or operational data is biased, sketchy, unlabeled, or just plain wrong, AI can still spew hallucinations. That means statements that sound plausible yet lack fact or that carry hidden bias; these distort the insight and harm decision-making. Clean data in daily operations can’t safeguard against hallucinations if the training data is off or if the review team lacks strong reference data and background knowledge. That is why businesses now rank data quality as the biggest hurdle for training, launching, scaling, and proving the value of AI projects. The growing demand for tools and techniques to verify AI output is both clear and critical.

Following a clear set of practical steps with medical data shows how careful data quality helps AI produce correct results. First, examine, clean, and improve both training data and operational data using automatic rules and reasoning. Next, bring in expert vocabulary and visual retrieval-augmented generation in these clean data settings so that supervised quality assurance and training can be clear and verifiable. Then, set up automated quality control that tests, corrects, and enhances results using curated content, rules, and expert reasoning.  

To keep AI hallucinations from disrupting business, a thorough data quality system is essential. This system needs “gold standard” training data, business data that is cleaned and continuously enriched, and supervised training based on clear, verifiable content, machine reasoning, and business rules. Beyond that, automated outcome testing and correction must rely on quality reference data, the same business rules, machine reasoning, and retrieval-augmented generation to keep results accurate.

Accuracy in AI applications can mean the difference between life and death for people and for businesses

Let’s look at a classic medical example to show why correct AI output matters so much. We need clean data, careful monitoring, and automatic result checks to stay safe.

In this case, a patch of a particular drug is prescribed, usually at a dose of 15 milligrams. The same drug also comes as a pill, and the dose for that is 5 milligrams. An AI tool might mistakenly combine these facts and print, “a common 15 mg dose, available in pill form.” The error is small, but it is also very dangerous. Even a careful human might miss it. A medical expert with full focus would spot that the 15 mg pill dose is three times too much; taking it could mean an overdose. If a person with no medical training asks an AI about the drug, they might take three 5 mg pills, thinking that’s safe. That choice could lead to death.

When a patient’s health depends on AI results, the purity, labeling, and accuracy of the input data become mission-critical. These mistakes can be thwarted by merging clean, well-structured training and reference datasets. Real-time oversight, training AI feedback loops with semantic reasoning and business rules, and automated verification that cross-checks results against expert-curated resources all tighten the screws on system reliability.  

Beyond the classic data clean-up tasks of scrubbing, merging, normalizing, and enriching, smart semantic rules, grounded in solid data, drive precise business and AI outputs. Rigorous comparisons between predicted and actual results reveal where inaccuracies lurk. An expert-defined ontology, alongside reference bases like the Unified Medical Language System (UMLS), can automatically derive the correct dosage for any medication, guided solely by the indication and dosage form. If the input suggests a pill dosage that violates the rule—say a 10-milligram tablet when the guideline limits it to 5—the system autonomously flags the discrepancy and states, “This medication form should not exceed 5 milligrams.”

To guarantee that our training and operational datasets in healthcare remain pure and inclusive, while also producing reliable outputs from AI, particularly with medication guidelines, we must focus on holistic data stewardship. The goal is to deliver the ideal pharmaceutical dose and delivery method for every individual and clinical situation.  

The outlined measures revolve around this high-stakes objective. They are designed for deployment within low-code or no-code ecosystems, thereby minimizing the burdens on users who must uphold clinical-grade data integrity while already facing clinical and operational pressure. Such environments empower caregivers and analysts to create, monitor, and refine data pipelines that continuously cleanse, harmonize, and enrich the streams used to train and serve the AI.

Begin with thoroughly cleansed and enhanced training data

To deliver robust models, first profile, purify, and enrich both training and operational data using automated rules together with semantic reasoning. Guarding against hallucinations demands that training pipelines incorporate gold-standard reference datasets alongside pristine business data. Inaccuracies, biases, or deficits in relevant metadata within the training or operational datasets will, in turn, compromise the quality and fairness of the AI applications that rely on them.

Every successful AI initiative must begin with diligent and ongoing data quality management: profiling, deduplication, cleansing, classification, and enrichment. Remember, the principle is simple: great data in means great business results out. The best practice is to curate and weave training datasets from diverse sources so that the resulting demographic, customer, firmographic, geographic, and other pertinent data pools are of consistently high quality. Moreover, data quality and data-led processes are not one-off chores; they demand real-time attention. For this reason, embedding active data quality – fully automated and embedded in routine business workflows – becomes non-negotiable for any AI-driven application. Active quality workflows constantly generate and execute rules that detect problems identified during profiling, letting the system cleanse, integrate, harmonize, and enrich the data that the AI depends on. These realities compel organizations to build AI systems within active quality frameworks, ensuring the insights they produce are robust and the outcomes free of hallucinations.

In medication workflows, the presence of precise, metadata-enriched medication data is non-negotiable, and the system cites this reference data at every turn. Pristine reference data can seamlessly integrate at multiple points in the AI pipeline: 

  • First, upstream data profiling, cleansing, and enrichment clarify the dosing and administration route, guaranteeing that only accurate and consistent information flows downstream. 
  • Second, this annotated data supplements both supervised and unsupervised training. By guiding prompt and result engineering, it ensures that any gap or inaccuracy in dose or administration route is either appended or rectified. 
  • Finally, the model’s outputs can be adjusted in real time. Clean reference data, accessed via retrieval-augmented generation (RAG) techniques or observable supervision with knowledge-graph-enhanced GraphRAG, serves as both validator and corrector. 

Through these methods, the system can autonomously surface, flag, or amend records or recommendations that diverge from expected knowledge—an entry suggesting a 15-milligram tablet in a 20-milligram regimen, for instance, is immediately flagged for review or adjusted to the correct dosage.

Train your AI application with expert-verified, observable semantic supervision  

First, continuously benchmark outputs against authoritative reference data, including gritty semantic relationships and richly annotated metadata. This comparison, powered by verifiable and versioned semantic resources, is non-negotiable during initial model development and remains pivotal for accountable governance throughout the product’s operational lifetime.  

Integrate high-fidelity primary and reference datasets with aligned ontological knowledge graphs. Engineers and data scientists can then dissect flagged anomalies with unprecedented precision. Machine reasoning engines can layer expert-curated data quality rules on top of the semantic foundation – see the NCBO’s medication guidelines – enabling pinpointed, supervision-friendly learning. For example, a GraphRAG pipeline visually binds retrieval and generation, fetching relevant context to bolster each training iteration.  

The result is a transparent training loop fortified by observable semantic grounding. Business rules, whether extant or freshly minted, can be authored against this trusted scaffold, ensuring diverse outputs converge on accuracy. By orchestrating training in live service, the system autonomously detects, signals, and rectifies divergences before they escalate.

Automate oversight, data retrieval, and enrichment/correction to scale AI responsibly

Present-day AI deployments still rely on human quality checks before results reach customers. At enterprise scale, we must embed automated mechanisms that continually assess outputs and confirm they satisfy both quality metrics and semantic consistency. To reach production, we incorporate well-curated reference datasets and authoritative semantic frameworks that execute semantic entailments—automated enrichment or correction built on domain reasoning—from within ontologies. By leveraging trusted external repositories for both reference material and reasoning frameworks, we can apply rules and logic to enrich, evaluate, and adjust AI-generated results at scale. Any anomalies that exceed known thresholds can still be flagged for human review, but the majority can be resolved automatically via expert ontologies, validated logic, and curated datasets. The gold-standard datasets mentioned previously support both model training and automated downstream supervision, as they enable real-time comparisons between generated results and expected reference patterns.

While we acknowledge that certain sensitive outputs—like medical diagnoses and treatment recommendations—will always be reviewed by physicians, we can nevertheless guarantee the accuracy of all mission-critical AI when we embed clean, labeled reference data and meaningful, context-aware enrichment at every stage of the pipeline.

To make AI applications resistant to hallucinations, start with resources that uphold empirical truth. Ground your initiatives in benchmark reference datasets, refined, clean business records, and continuous data quality practices that yield transparent, semantically coherent results. When these elements work in concert, they furnish the essential groundwork for the automated, measurable, and corrective design, evaluation, and refinement of AI outputs that can be trusted in practice.

How AI is reshaping e-commerce experiences with data-driven design

Posted on by Editorial Team

In today’s fast-moving e-commerce environment, artificial intelligence is changing the game-leveraging real-time analytics, behavioural modelling, and hyper-personalisation to craft smarter shopping experiences. While online retail keeps gaining momentum, AI-driven systems empower brands to build interfaces that feel more intuitive, adaptive, and relevant to every shopper. This article examines how data-centric AI tools are rewriting the blueprint of e-commerce design and performance, highlighting pivotal use cases, metrics that matter, and fresh design breakthroughs.

Predictive personalization powered by big data

A key space where AI drives value in e-commerce is predictive personalisation. By crunching huge data troves – everything from past purchase logs to live clickstream data – machine-learning models can foresee what customers want next and tweak the user interface in real time. AI can rearrange product grids, flag complementary items, and customise landing pages to reflect each shopper’s unique tastes. This granular personalisation correlates with higher conversion rates and reduced bounce rates, particularly when the experience flows seamlessly across devices and touchpoints.

With over 2 billion active monthly online shoppers, the knack for forecasting intent has turned into a vital edge. By marrying clustering techniques with collaborative filtering, merchants can deliver recommendations that align closely with shopper expectations, while also smoothing the path for upselling and cross-selling.

Adaptive user interfaces

In contrast to fixed design elements, adaptive interfaces react on-the-fly to incoming user data. If, for example, a shopper habitually explores eco-conscious apparel, the display may automatically promote sustainable labels, tweak default filter settings, and elevate pertinent articles. By harnessing reinforcement learning, the system incrementally fine-tunes the entire user path in a cycle of real-time refinement.

Retail websites are increasingly adopting these adaptive architectures to refine engagement—from consumer electronics portals to curated micro-boutiques. To gauge the effectiveness of every adjustment, practitioners employ A/B testing combined with multivariate testing, generating robust analytics that guide the ongoing, empirically driven maturation of the interface.

AI-enhanced content generation  

AI-driven tools aren’t only reimagining user interfaces; they’re also quietly reshaping the material that fills them. With natural language generation, e-commerce brands can automatically churn out product descriptions, FAQs, and blog entries that are already SEO-tight. Services such as Neuroflash empower companies to broaden their content output while keeping language quality and brand voice on point.  

When generative AI becomes part of the content production chain, editing and testing cycles speed up. This agility proves invaluable for brands that need to roll out new campaigns or zero in on specialised audiences. A retailer with an upcoming seasonal line, for instance, can swiftly create several landing-page drafts, each tailored to a distinct demographic or buyer persona.

Sophisticated search and navigation

Modern search engines have crossed the limit of simple keyword spotting. With semantic understanding and behavioural modelling, these intelligent engines parse questions with greater finesse, serving results that matter rather than just match. Voice activation, image-based search, and conversational typing are emerging as the primary ways shoppers browse and discover products.

These innovations matter most for the mobile-first audience, who prioritise speed and precision on small screens. Retailers are deploying intelligent tools that simplify every tap, drilling into heatmaps, click trails, and conversion funnels to reshape menus, filters, and overall page design for minimal friction.

Optimising Design Workflows with AI

AI is quietly transforming how teams craft and iterate on product experiences. In tools like Figma and Adobe XD, machine learning now offers on-the-fly recommendations for layouts, colour palettes, and spacing grounded in established usability and conversion heuristics. As a result, companies sizing up the expense of a new site are starting to treat AI features the same way they’d treat CDN costs: essential ways to trim repetitive toil and tighten the pixel grid.

Shifting to web design partners who bake AI into their processes often pays off when growth is the goal. By offloading the choice of grid systems and generating initial wireframe iterations, AI liberates creative talent, allowing them to invest time in nuanced storytelling and user empathy rather than grid alignments. Scalability then becomes a design layer that pays dividends instead of a later headache.

From instinct to engineered insight

AI is steering e-commerce into a phase where every customer journey is informed – not by instinctive hunches, but by relentless, micro-level data scrutiny. Predictive preference mapping, real-time interface adaptation, smart search refinement, and automatic content generation now converge, helping retailers replace broad segmentation with hyper-precise, living experiences.  

With customer demands climbing and margin pressure intensifying, data-driven, AI-backed design now equips brands to create expansive, individualised, and seamless shopping landscapes without proportional cost escalations. Astute retailers recognise that adopting these generative capabilities is not a question of optional upgrade, but a foundational pivot they must complete to retain competitive relevance.

What is social engineering?

Posted on by Editorial Team

Social engineering is a fancy way of saying that hackers trick real people into giving away secrets they shouldn’t share. Instead of breaking through a locked computer system, these tricks play with human feelings, asking someone to click a sketchy link, wire money, or spill private data.

Picture an email that looks exactly like it came from your favorite co-worker, an urgent voicemail that seems to be from the IRS, or even a wild promise of riches from a distant royal. All of those messages are classic social-engineering scams because they don t bend code; they bend trust. That’s why experts sometimes call it human hacking.

Once criminals have the information they crave-email passwords, credit card numbers, or Social Security digits-they can steal a person’s identity in a heartbeat. With that stolen identity they can charge new buys, apply for loans, and even file phony unemployment claims while the real victim is left puzzled and broke.

A social engineering scheme often serves as the opening act in a much bigger cyber show. Imagine a hacker convincing a worker to spill her email password; the crook then slides that login into the door and drops ransomware onto the entire company’s network.

These tactics bedazzle criminals because they skip the heavy lifting usually needed to break through firewalls, antivirus programs, and other technical shields.

It’s one big reason social engineering sits at the top of network breaches today, as ISACAs State of Cybersecurity 2022 report makes clear. IBM’s Cost of a Data Breach also shows that attacks built on tricks like phishing or fake business emails rank among the priciest for companies to clean up.

How and why social engineering works

Social engineers dig into basic, everyday feelings to trick people into doing things they normally would never do. Instead of stealing software or breaking a lock, these attackers use goodwill, fear, and curiosity as their main tools.

Usually, an attack leans on one or more of these moves:

Spoofing a trusted brand: Crooks build near-perfect fake websites and emails that look almost identical to the real McCoy, letting them slip past busy eyes. Because victims already know the company, they follow instructions quickly, often without checking the URL or the sender. Hackers can buy kits online that make this cloning easy, so impersonating a huge brand has never been simpler.

Claiming to be an authority or government agency: Most of us listen when a badge or a big title speaks, even if we have never met the person. Scammers exploit that trust by sending notes that look like they came from the IRS, the FBI, or even a celebrity the victim admires, naming high-pressure deadlines or scary fines that push quick reactions.

Evoking fear or a sense of urgency: Pushing people to feel scared or rushed makes them move fast, often too fast. A lot of social-engineering scams feed off that shaky feeling. For example, a scammer might say a big credit charge got denied, a virus has locked a computer, or a picture online is breaking copyright rules. Those stories sound real enough to hook someone right away. That same fear-of-missing-out, or FOMO, is another trick, making victims act before they lose out on something special.

Grabbing Greed: The classic Nigerian Prince email-begging note from someone claiming to be an exiled royal and promising a huge payday if you share your bank details or send a small upfront fee-is perhaps the most famous scam that feeds on greed. Variants of this trick appear daily, especially when a fake authority figure shows up in the story and pushes an urgent deadline, creating twice the pressure to act. Though this scheme is nearly as old as e-mail, researchers say it still fleeced victims out of 700k dollars in 2018 alone.

Tapping Helpfulness and Curiosity: Not every con targets a dark impulse-some play on a softer side of human nature, and those may fool even cautious people. A fake message from a friend or spoofed social media alert can promise tech support, ask for survey votes, brag that your post went viral, then steer you to a phony page or silent malware download.

Types of social engineering attacks

Phishing

Phishing is the quick name we give to fake emails, text, or even phone calls designed to trick you into giving up private data, opening a dangerous download, or moving money somewhere it shouldn’t go. Scammers usually dress these messages up to look as if they come from a bank, a coworker, or any other name you would trust. In some cases, they may even copy a friend you talk to all the time so the alert radar never goes off.

Several kinds of phishing scams float around the Internet:

– Bulk phishing emails flood inboxes by the millions. They’re disguised to look like they come from trusted names-a big bank, a worldwide store, or a popular payment app. The message usually contains a vague alert like, “We can’t process your purchase. Please update your card information.” Most of the time, the email hides a sneaky link that sends victims to a fake site, where usernames, passwords, and card details are quietly stolen.

– Spear phishing zeroes in on one person- usually someone who has easy access to sensitive data, the company network, or even money. The crook spends time learning about the target, pulling details from LinkedIn, Facebook, or other social sites, then crafts a note that looks like it comes from a buddy or a familiar office issue. Whale phishing is just a fancy name for the same trick when the victim is a VIP-level person like a CEO or a high-ranking official. Business email compromise, often shortened to BEC, happens when a hacker gets hold of login info and sends messages straight from a trusted boss’s real account, so spotting the scam becomes a lot harder.

– Voice phishing – vishing, for short, is when scammers call you instead of sending an email. They often use recorded messages that sound urgent, even threatening, and claim to be from the FBI or other big names.

– SMS phishing, or smishing, happens when an attacker slips a shady link into a text message that seems like it comes from a friend or trusted company.

– In search-engine phishing, hackers build fake sites that pop up at the top of the results for hot keywords so that curious people land there and hand over private details without knowing they are being played.

– Angler phishing works over social media, where the con artist sets up a look-alike support account and talks to worried customers who think they are chatting with the real brand’s help team.

IBM’s X-Force Threat Intelligence Index says phishing is behind 41% of all malware incidents, making it the top way bad actors spread malicious code. The Cost of a Data Breach report shows that even among expensive breaches, phishing is almost always where the trouble first starts.

Baiting

Baiting is a trick where bad actors dangle something appealing-stuffed with malware or data-requesting links-so people either hand over private info or accidentally install harmful software.

The classic “Nigerian Prince” letter sits at the top of these scams, promising huge windfalls in exchange for a small advance payment. Today, free downloads for popular-looking games, tunes, or apps spread nasty code tucked inside the package. Other times the jobs are sloppier; a crook just drops an infected USB stick in a busy cafe and waits while curious patrons plug it in later because, well, it’s a “free flash drive.”

 Tailgating

Tailgating, sometimes called “piggybacking,” happens when someone who shouldn’t be there slips in behind a person who does have access. The classic example is a stranger trailing an employee through an unlocked door to a secure office. Trailgating can show up online, too. Think about someone walking away from a computer that’s still logged into a private email or network-the door was left open.

Pretexting

With pretexting, a scammer invents a reason that makes them look like the trustworthy person the victim should help. Ironically, they often claim the victim suffered a security breach and offer to fix it-for a password, a PIN, or remote access to the victims device. In practice, almost every social engineering scheme leans on some form of pretexting.

Quid Pro Quo

A quid pro quo scam works when a hacker offers something appealing, like a prize, in return for personal details. Think of fake contest wins or sweet loyalty messages, even a “Thanks for your payment, enjoy this gift!” These tactics sound helpful, but really they steal your info while you believe you are just claiming a reward.

Scareware

Scareware acts like malware, using pure fear to push people into giving up secrets or installing real threats. You might see a bogus police notice claiming you broke a law or a fake tech-support alert saying your device is crawling with viruses. Both pop-ups freeze your screen, hoping you panic and click something that deepens the problem.

Watering Hole Attack

The term watering hole attack comes from the idea of poisoning a spot where prey often drinks . Hackers sneak bad code onto a trusted site their target visits every day. Once the victim arrives, unwanted links or hidden downloads steal passwords or even install ransomware without the user ever realizing.

Social Engineering Defenses  

Because social engineering scams play on human emotions instead of code or wires, they are tough to block completely. That’s a big headache for IT teams: Inside a mid-sized company, one slip-up by a receptionist or intern can open the door to the entire corporate network. To shrink that risk, security experts suggest several common-sense steps that keep people aware and alert.  

– Security awareness training: The average employee has never seen a phishing email in a workshop, so it’s easy to miss the red flags. With so many apps asking for personal details, it feels normal to share a birthday or phone number; what people often forget is that that bit of info lets crooks crack a deeper account later. Regular training sessions mixed with clear, written policies arm staff with the Know-How to spot a con before it lands.

– Access control policies: Strong access rules-such as having users show a password and a second form of ID, letting devices prove their trust level, and following a Zero Trust mindset – weaken the power of stolen login details. Even if crooks land a username and passcode, these layered steps limit what they can see and do across a company’s data and systems.

Cybersecurity technologies: Reliable anti-spam tools and secure-email gateways block many phishing emails before workers ever click them. Traditional firewalls and up-to-date antivirus programs slow down any harm that creeps past those front lines. Regularly patching everyday operating systems seals popular holes that attackers exploit through social tricks. On top of that, modern detection-and-response systems-like endpoint detection and response (EDR) and the newer extended detection and response (XDR)-give security teams fast visibility so they can spot and shut down threats that sneak in under a social-engineering mask.

How China’s Generative AI Advances Are Transforming Global Trade

Posted on by Editorial Team

Contributed by: Sharon Zheng, FinTech Expert

The evolving Chinese Generative AI technology is emerging as a distinct component of innovation that is set to transform China’s international trade. Given my background as an independent consultant on the intersection of technology, trade, and globalisation, I will discuss how China’s regulatory policy on generative AI is transforming global business from a qualitative perspective.

China’s Supremacy in Generative AI Patents

During the period of 2014 to 2023, China submitted around 38000 applications for patent on generative AI technology, which constitutes nearly 70% of that filed globally. The number is six times that of the United States which filed 6276 patents within the same time frame. Out of the top ten applicants of generative AI patents in the world, 6 are Chinese companies which include Tencent, Ping An Group, Baidu and the Chinese Academy of Sciences. 

This drastic increase in the number of patent applications demonstrates China’s relentless expansionist agenda in AI technology. China has been pursuing a dominant position in AI technology. Nevertheless, the enormous number of patents raises issues concerning their value and possible use. In the past, China’s strategy regarding patents leaned more toward quantity which came at the cost of quality. The most crucial issue remains whether these generative AI patents will be transformed into actual real world applications and to what extent will they hold relevance internationally as well as domestically.

Evaluating The Quality and Commercialization of Patents

Although China has an impressive number of patents, their strategic business value and quality are critical considerations. In the past, China’s patent policy focused on the quantity of patents filed over their quality, but the data shows increasing positive trends. The patent grant ratio for applicants from China improved to 55% in 2023 from 30% in 2019, and the rate of commercialisation in high-tech industries improved too. This implies a positive change in the rate of innovation for generative AI.

This trend can be illustrated with a few examples. For instance, research from China developed an AI powered algorithm that can make the process of drug development faster, which means cures for different diseases can be made available to patients in a timely manner. Another example is Ping An Insurance Group that has taken a leading role in AI patenting in China by applying for 101 generative AI patents in areas of application in banking and finance, which make up 6% of their portfolio. These results are a demonstration of China’s increasing willingness to improve the standard of quality and real-world impact of their generative AI innovations.

Challenges in patent quality 

An analysis on a country’s advancement in AI domestically and abroad can be seen through the lens of its patent filings. China’s enormous surge in patent registration is an indicator of its aggressive support in developing technology innovation. WIPO studies attribute 47% of patent applications globally to China in 2023, indicating that the country is looking to step ahead and dominate the technological arms race. At the same time, focussing on the influence China will have on the AI ecosystem internationally reveals multifaceted issues in patenting. 

Issues In Patent Quality

While one may focus on the sheer quantity of patents being applied for, WIPO attests that there persists a problem in the relevancy of these patents internationally. The grant ratio – a measure of how many patents are issued in proportion to how many are applied for – brings further granularity into this. In China, the grant ratio of new-generation AI patents is roughly 32%. Leading tech players like Huawei and Baidu have grant ratios of 24% and 45% respectively. In comparison, developed nations like Japan and Canada have much higher grant ratios sitting at 77% and 70% respectively. This shows that a large number of Chinese corporations are making patent applications but a large portion of these applications fail to pass the assessment requirements that come with them.

At the same time, Chinese patents do not have effective international reach. China only files 7.3% of its patent applications overseas, which indicates a concentration on the domestic market. This is in stark contrast to countries like Canada and Australia which file a large percentage of their patents overseas, which illustrates a proactive approach to fostering multiple jurisdictions for intellectual property protection. The lack of international Chinese patents can limit their relevance and use in other countries which undermines the possibility of commercially marketing Chinese AI technologies abroad. 

Impact on international Trade

Global competitiveness is determined by trade relations of a country suffering from lack of quality and scope of internationally imposed patents. Internationally enforced high-quality patents form the axis of competitive advantage provided to a specific firm enabling them to strategically license technologies, penetrate new markets, and consolidate globally with other firms. On the other hand, commercially unproductive patents without tangible attributes and unprotected in vital markets yield no benefit at all and stagnate business activities. 

China emphasizing the quantity of patents filed rather than their quality or international scope economically has some consequences: 

  • Local Emphasis: The high number of domestically filled famed patents demonstrates that Chinese inventions are designed primarily for domestic consumption. All these factor enhancements will arguably lead to the reduced global influence of China’s AI technologies and limit participation in the global value chain.
  • Lack of Market Defense: Without having a patent to secure their interests, Chinese companies face the risk of not being able to commercialize their technologies in foreign countries due to technology spoofing leading to loss of revenue.
  • Impression of Innovation Value: Limited international applications coupled with lower grant ratios may have an impact on the Chinese innovation value perception which may affect foreign investments and partnerships.

Strategic Approaches

China can consider the following approaches in order to boost the impact of its AI innovations globally:

  • Improving Patent Standards: Moving from quantity to quality focus increases grant ratios and more innovations are likely to pass international standards. Such a strategy is likely to require more rigorous internal review processes accompanied by more funding of research and development.
  • Increasing International Applications: It is important to motivate businesses and corporations to file for patents in various jurisdictions which promote global IP protection which in turn aids in commercialization and collaboration internationally.
  • Toughening Enforcement Frameworks: Enforcement of IP rights is one the most effective ways to increase the attractiveness of Chinese patents to foreign investors and/ or partners.

Global Competitiveness and Strategic Considerations

The global technology landscape has become significantly different because of the improvements of China in artificial intelligence (AI) in recent years. One of the most important transformations is the development of DeepSeek, a new Chinese AI model ready to compete with Western models in terms of price, and effectiveness with American tech behemoths. This shift indicates that China has set its sights on improving the grade and global Anglo-Saxon relevance of its AI technology to remain competitive internationally. 

DeepSeek: A Disruptive Force in AI 

DeepSeek burst onto the scene in December 2024 and received massive recognition for its capability to match the performance of the best Western AI models, particularly  OpenAI’s GPT-4, while being significantly cheaper to develop. This is impressive particularly because China doesn’t have access to advanced AI chips and many  extensive datasets which have always been barriers to China’s development of AI. The achievement of DeepSeek indicates that Chinese corporations are increasingly discovering novel ways to deal with these obstacles and change the scope of deep learning and artificial intelligence.

DeepSeek’s approach deeply altered conversations and business practices within the industry. NVIDIA and other dominant industry players’ stocks were subjected to huge fluctuations as capital interrogated the market regarding DeepSeek’s entry. This has been called an “AI Sputnik moment” and now serves as a marker in the significant change in the AI competition. 

Strategic Repercussions 

DeepSeek’s rise shifts the most critical perceptions following the scaling expectations of OpenAI. Active users increased to more than 400 mln weekly in February 2025, from 300 million in December 2024. This growth is another illustration of the already aggressive nature of AI competition and has proven to be even more dominant when it comes to innovation politics. 

Pressure competition stemming from DeepSeek’s calculated attacks equally shifted strategy among Western tech leaders, the most notable being Musk’s unbidden OpenAI stock buyout bid of 97 billion dollars when the AI company was valued at about 300 billion dollars. This best demonstrates the rush towards integrating AI to thwart unforeseen competitors. 

Improving Parenting Standards and Global Scope

It is well known that China leads in the amount of AI-related patent applications, however, there are serious concerns about the relevance and overall quality of these patents.

The achievement of DeepSeek demonstrates progress towards not just boosting the volume, but also the quality and usefulness of AI patents. This tactic assists in ensuring that such innovations are not only useful in the country, but are also competitive internationally. 

On the other hand, there are still gaps. The inability to access advanced AI chips, a staggering amount of quality data, and the complex algorithms required for large model training remain considerable obstacles. Such restrictions could prevent the effective deployment and international outreach of China’s AI technologies, which could make China’s generative AI patents less effective in contributing to the advancement of AI technology globally. 

DeepSeek’s creation serves as an example of China’s increasing competitiveness in the technology field. China’s innovation capabilities, in spite of constraints, was showcased when it developed a low-cost AI model that surpassed the efforts of the West. Subsequently, this change forces large technology companies around the world to revise their strategic plans in light of yet another strong competitor.

In order to maintain and improve its position within the global AI landscape, however, China will first need to overcome dire obstacles. Advanced technology access, enhanced data quality, innovation-friendly environments, and newly formulated patent strategies contingent on quality and international focus are all necessary. These changes would allow the technological advancements to be utilized and for China to gain global competitiveness.

Conclusion

AI technology advancements from China are changing the dynamics of international trade. China is improving AI technologies and automating trade functions to improve efficiency and set new trade standards. However, China’s long-term impact on AI will largely depend on the quality and scope of China’s generative AI patents and their relevance outside the country. With the constant evolution of these technologies, it’s easy to see their direct integration into global commerce, which makes it increasingly important for stakeholders worldwide to take notice and strategize accordingly.

Data science is crucial for shielding biometric authentication systems from evolving threats

Posted on by Editorial Team

Biometric authentication  systems are now commonplace in everything from smartphones to smart locks, moving far beyond simple face and fingerprint scans. Their growing adoption creates a pressing need for continual, rigorous protection.

Data science drives this need, revealing how biometric verification can fortify privacy while streamlining access. The pressing question is how these scans translate into a safer digital world.

Biometric fusion is layered verification

Most of us have unlocked a phone with a fingerprint or a face scan, but attackers also know that single traits can be spoofed. Biometric fusion answers this by demanding multiple identification traits at once, so access is granted only when several independent points are satisfied.

By expanding the set of factors a system weighs, fusion raises the bar on fabrication success; studies confirm that multimodal cues slash the odds of attacker victory. Devices can stack visual traits with behavioral signals, movements, or keystroke patterns, soon expanding to the rhythm of a user’s speech or the pressure of a press.

This makes the 33% of users  who now find traditional two-factor prompts a chore much more likely to engage. Behavioural metrics can be captured through accelerometers, microphones, or subtle signal processing, creating a seamless shield that continues to verify without interrupting the user’s flow.

Innovations in models and algorithms are steadily raising recognition accuracy in biometric systems 

Data scientists are exploring varied approaches. One long-serving technique is principal component analysis (PCA), which compresses the user’s most significant identifying characteristics into a slimmed-down computational form. Though PCA’s image extrapolation is fast, the recognition precision it delivers still invites fine-tuning.  

Emerging alongside PCA, artificial firefly swarm optimization leverages a different logic. When this algorithm identified and matched faces, it hit 88.9% accuracy, comfortably ahead of PCA’s 80.6%. The swarm imitates colonies of fireflies, tracking the dynamics of light and shadow across facial landmarks and treating these fluctuations as cues to the face’s changing proportions.  

Armoring accuracy against critical use-cases is essential. As biometric, AI, and other technologies edge into sensitive arenas like law enforcement, the stakes rise. Courts and correctional facilities trial facial recognition to scan criminal records, yet earlier models struggled, leaving 45% of adults wary of the same system spreading in policing.

Adaptive biometrics acknowledge the constant march of time

Someone who keeps the same device for ten years may find their biometric traits drifting beyond the algorithms’ reach. Authentication systems will face growing trouble with distinctive shifts like:

  •  Long-term health changes that loosen the ridges of a fingerprint
  •  Clouded vision from cataracts that distort the iris’ geometric signature
  •  Hand joints that drift and enlarge from arthritis, altering the geometry of a palm
  •  A voice that drops or broadens from changes in lung function or the voice-cracking years of adolescence

Most of these changes can’t be postponed or masked. Data scientists are investigating adaptive models that learn to accommodate them. A smooth adaptive response keeps doors from slamming shut on travelers whose traits are still theirs, just a little altered. Avoiding service interruptions and phantom alerts is a matter of preserving the everyday trust users deserve.

Both the developers of these systems and the users who depend on them must reckon with the long arc of biometric evolution. Like all defenses, they will be probed, spoofed, and stretched. Every breakthrough invites a fresh wave of inventive attacks, therefore a layered, device-spanning security net remains the only wise posture. Strong passwords, continuous phish awareness, and now adaptive biometrics must all be rehearsed with equal vigilance – even as the threats keep mutating with the passage of years.

Securing data can cut down false positives 

Misidentifications can arise from shifting light, mask-wearing, or sunglasses. Engineers have refined biometric data storage so the system learns these variations. The result is sharper accuracy and fewer chances of false acceptance.  

Differential privacy safeguards sensitive traits while tuning authentication performance, especially for fingerprints. It gathers biometric samples in noisy visuals or weak signal zones. Later, the verifier matches the true person without confusing them for a fake, achieving solid recognition without giving up safety.

Biometric authentication can align seamlessly with anomaly detection enhanced by machine and deep learning systems. As the framework matures, it continually assimilates the subtle variations that define the legitimate user, retaining defensive integrity all the while.  

Incorporating behavioural biometrics enriches this multilayered approach. Suppose a user seldom requests enrolment in a particular country. The authentication engine can flag that attempt as anomalous even though the extracted face or fingerprint otherwise meets the enrolment standard. Similarly, an unusual cadence of retries – say, a user suddenly trying every hour instead of every week—triggers the model, suggesting that the same face or voice print, while technically correct, is accompanied by a behavioural signal that demands a second factor or a cooling-off period. Each flagged instance reinforces the model, sharpening its ability to discern between legitimate variability and fraught deviations.

Data science strengthens biometric authentication

Cybersecurity analysts and data specialists know that biometric protection requires a variety of strategies. In the future, biometric security technologies will become increasingly effective in terms of accurate data analysis and expanding the capabilities of other security strategies. The application of biometric authentication will become more flexible than ever, making electronics more secure in any environment.