Frank Pasquale

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There’s an obvious question without an easy answer of whether traditional economic systems will be able to service the needs of the 21st century, at least the needs of those people who aren’t, in Romney-speak, corporations. Early in the Industrial Age, capitalism’s brutish excesses were curbed by labor unions and newspaper muckrakers and tax codes. In the Digital Age, many of those safety nets have come undone, and it’s not clear if they would have on their own been adequate to deal with the gathering storm.

The Uber business model produces some good at high costs, destabilizing businesses and replacing solid jobs with piecework. AI’s continued development will likely bring exceptional benefits to us but also further hollow out the middle. Even if some plans for automation fall by the wayside, enough will probably succeed to upset Labor, causing industries to rise and fall with shocking speed.

If, for example, driverless autos can be perfected in the next 20 years and proliferate, tens of millions of jobs will quickly be gone from every developed country in trucking, taxis, delivery, etc. In fact, a driverless taxi fleet needn’t even have an owner. The cars could “own” themselves, using the fares to automatically pay for repairs and purchase new vehicles. The operation could entirely run itself. Prices for trips from such outfits will be cheap, which is a good thing, since you might not have a job. 

From Antony Funnell’s smart Radio National’s Future Tense piece about the question of capitalism in the Digital Age:

University of Maryland legal academic Frank Pasquale, who focuses on the ethical, legal and social implications of information technology, calls them the ‘Silicon Valley oligarchs’.

‘I think the fundamental problem is that people don’t like to face up to the reality of monopolisation,’ says Pasquale, speaking about the global rise of Uber, Airbnb and other so-called sharing economy companies. ‘It’s much more convenient to believe the comforting myth that these markets are always contestable.

‘A firm like Uber is an appeal to venture capitalists—speculative capital—that wants to see massive returns via monopolisation. Let’s not mistake the business model here. The model here is for one of these firms to come in and to take over various aspects of commerce, to take over the rides that are in an area, to take over availability of non-hotel rooms to sleep in, et cetera. I think that this is really a perversion of the original aspirations of the sharing economy.’

The perils of corporate capitalism ‘running on digital steroids’

For Pasquale, the rise of the oligarchs signals lost potential—the opportunity to enhance genuine sharing and competition through the use of new technologies. But leading US media theorist Douglas Rushkoff goes one step further. In his newly released book Throwing Rocks at the Google Bus, he warns that the promise of the digital age is being hijacked by a rampant form of old-style capitalism, a modus operandi akin to that of the robber-barons of the 19th century.•

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Prelude to layoffs in the media industry (and all others) is the influx of efficiency experts and consultants. Conde Nast employees are preparing for just such a plague of analysts, in which each of them will have to account for every hour of their day. Scary for them that they’ll be quantified, even if in such a quaint, old-fashioned way.

The new normal is, of course, to let algorithms measure us at work and, ultimately, at home. Human management in all levels of business is so godawful, plagued by pettiness, bias and incompetence, it’s valid to ask whether algorithms could really do a worse job. Maybe not. But you know when a supervisor is messing with you, and you can appeal to a sense of fairness, even if that’s sometimes futile. It’s really difficult to argue with computer code, which can certainly contain its own biases. In fact, they almost certainly do. Further, there’s no way current AI can truly judge the dynamics of office space, the little things that go into making a company successful or even just a pleasant place to be, something important to us if not our silicon brothers and sisters.

In a smart Aeon essay, Frank Pasquale wonders about the quiet insinuation into our lives of this next-level judge, jury and executioner. He has more hope than I do that these new tools of accountability will themselves be held accountable. An excerpt:

The infancy of the internet is over. As online spaces mature, Facebook, Google, Apple, Amazon, and other powerful corporations are setting the rules that govern competition among journalists, writers, coders, and e-commerce firms. Uber and Postmates and other platforms are adding a code layer to occupations like driving and service work. Cyberspace is no longer an escape from the ‘real world’. It is now a force governing it via algorithms: recipe-like sets of instructions to solve problems. From Google search to OkCupid matchmaking, software orders and weights hundreds of variables into clean, simple interfaces, taking us from query to solution. Complex mathematics govern such answers, but it is hidden from plain view, thanks either to secrecy imposed by law, or to complexity outsiders cannot unravel.

Algorithms are increasingly important because businesses rarely thought of as high tech have learned the lessons of the internet giants’ successes. Following the advice of Jeff Jarvis’s What Would Google Do, they are collecting data from both workers and customers, using algorithmic tools to make decisions, to sort the desirable from the disposable. Companies may be parsing your voice and credit record when you call them, to determine whether you match up to ‘ideal customer’ status, or are simply ‘waste’ who can be treated with disdain. Epagogix advises movie studios on what scripts to buy, based on how closely they match past, successful scripts. Even winemakers make algorithmic judgments, based on statistical analyses of the weather and other characteristics of good and bad vintage years.

For wines or films, the stakes are not terribly high. But when algorithms start affecting critical opportunities for employment, career advancement, health, credit and education, they deserve more scrutiny.•

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It’s not always easy to distinguish between a nudge and a shove, as we well know already from the advertising age and will know even better once the Internet of Things becomes the thing. In “The Algorithmic Self,” Frank Pasquale’s expansive Hedgehog Review piece about how the new, non-humming machine we’ve built can quietly quantify us–direct us, even–while making it impossible to opt out. He surveys the landscape, looking at therapeutic robots, invasions of privacy, the dawn of a new type of surveillance, etc. An excerpt:

For many technology enthusiasts, the answer to the obesity epidemic—and many other problems—lies in computational countermeasures to the wiles of the food scientists. App developers are pioneering behavioristic interventions to make calorie counting and exercise prompts automatic. For example, users of a new gadget, the Pavlok wristband, can program it to give them an electronic shock if they miss exercise targets. But can such stimuli break through the blooming, buzzing distractions of instant gratification on offer in so many rival games and apps? Moreover, is there another way of conceptualizing our relationship to our surroundings than as a suboptimal system of stimulus and response?

Some of our subtlest, most incisive cultural critics have offered alternatives. Rather than acquiesce to our manipulability, they urge us to become more conscious of its sources—be they intrusive advertisements or computers that we (think we) control. For example, Sherry Turkle, founder and director of the MIT Initiative on Technology and Self, sees excessive engagement with gadgets as a substitution of the “machinic” for the human—the “cheap date” of robotized interaction standing in for the more unpredictable but ultimately challenging and rewarding negotiation of friendship, love, and collegiality. In The Glass Cage, Nicholas Carr critiques the replacement of human skill with computer mediation that, while initially liberating, threatens to sap the reserves of ingenuity and creativity that enabled the computation in the first place.

Beyond the psychological, there is a political dimension, too. Legal theorist and Georgetown University law professor Julie Cohen warns of the dangers of “modulation,” which enables advertisers, media executives, political consultants, and intelligence operatives to deploy opaque algorithms to monitor and manipulate behavior. Cultural critic Rob Horning ups the ante on the concerns of Cohen and Turkle with a series of essays dissecting feedback loops among surveillance entities, the capture of important information, and self-readjusting computational interventions designed to channel behavior and thought into ever-narrower channels. Horning also criticizes Carr for failing to emphasize the almost irresistible economic logic behind algorithmic self-making—at first for competitive advantage, then, ultimately, for survival.6

To negotiate contemporary algorithms of reputation and search—ranging from resumé optimization on LinkedIn to strategic Facebook status updates to OkCupid profile grooming—we are increasingly called on to adopt an algorithmic self, one well practiced in strategic self-promotion. This algorithmic selfhood may be critical to finding job opportunities (or even maintaining a reliable circle of friends and family) in an era of accelerating social change. But it can also become self-defeating. Consider, for instance, the self-promoter whose status updates on Facebook or LinkedIn gradually tip from informative to annoying. Or the search engine−optimizing website whose tactics become a bit too aggressive, thereby causing it to run afoul of Google’s web spam team and consequently sink into obscurity. The algorithms remain stubbornly opaque amid rapidly changing social norms. A cyber-vertigo results, as we are pressed to promote our algorithmic selves but puzzled over the best way to do so.•

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