Ian Welsh

The horizon is not so far as we can see, but as far as we can imagine

Tag: Google

Google Neural Net “AI” Is About To Destroy Half The Independent Web

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On May 11, 2023

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As various folks have quipped the safest place to hide a body is on the second page of Google search results, because no one goes there.

Google is about to role out its “AI” for search (I’ll be saying AI in quotes as policy when referring to neural nets because they aren’t intelligent) and if it stays as it is it’s going to destroy most sites that provide information or analysis. (I’ll feel some hit, but will survive as I have my own audience.)

That screen-shot is the kicker. It takes up too much of the page. Worst, people don’t like to click, so if Google presents the info they want, they’ll just stay on Google.

Now, of course, Google is summarizing data that the neural net has scraped from the Web, much like when you used to read some books then summarize them for your term paper. None of the information Google’s “AI” will present in answer to questions is information from Google, it’s scraped, swallowed and regurgitated from the websites which won’t be getting the traffic any more, who will then die. The perfect parasite.

There’s going to be lawsuits, and I’m no lawyer, but my understanding is that just as if you do your research and re-write to summarize this probably doesn’t fall under current copyright law. That law is entirely reasonable, for people, but for neural nets it seems like a huge gap, but without a change in the law, it seems unlikely there’s a legal remedy.

I’m thinking about this. I may decide to keep most of my site off search engines (which is a problem in the sense that I use search engines to find my own articles, I’ve written so many).

But in the larger sense “AI” is a giant parasite (well, Google won’t be the only one) devouring other people’s expertise and denying them a living. Google controls about 45% of the internet ad market already with most of the rest divided up between various social median giants, and doing so destroyed a vast swathe of sites. Now they are set to kill much of what remains.

Tacitus’s line, supposedly quoting Calgacus, about the Roman Empire, was that the Romans “made a desert and called it peace”, Google and “AI” is making an internet wasteland and calling it profits.

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What App Stores Have Cost All Of US

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On September 29, 2021

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There’s a very old Canadian joke. A farmer is angry at the weather, so he raises his fist to the sky, and yells, “Goddamn you, CP Rail!”

Back in the age of rail if you were a farmer the only way to get your product to market unless you lived very close to a city, was by rail. There were few railroad companies, probably only one near you, and whatever they charged, you had to pay.

Rail company freight prices were based on maximizing profit for them, and that price drove a lot of farmers out of businesses, and left many others working for poverty wages.

App stores are, effectively, the only way many software developers can get their products to market. Most of them charge 30%.

A lot of consumers think this doesn’t matter, “who cares how they split the price?”

But that 30% is a cost, a high cost, for a service which costs companies like Apple and Steam almost nothing. (Apple also insists on a cut of all in-App purchases.)

Thirty percent is actually about a 42% price increase (30/70). It is HUGE. It is absolutely a cost; apps are not viable at all price points: you can’t just charge whatever, because most of them aren’t “must haves.” Running app stores costs almost nothing compared to the profits (not for the monopoly or near-monopoly providers, like Google, Apple and Steam).

Anyone who is the least familiar with business knows that increasing your production costs so much absolutely means that many products will never see the light of  day; they aren’t profitable. Entire companies will not come into existence because when the initial costing is done, the 30% makes their offerings unprofitable. Other companies will go out of business because their product(s) don’t make a profit or enough of a profit with that 30% in place, where they would at 15% or 10% or 5%.

Even businesses which do exist, and prosper, would prosper more if the charge was less, AND Apple and Steam and Google would all still be fine, and able to provide just as good services. (All these businesses are infamous for their profits, and their app stores are nearly pure profit.)

So what app stores at 30% has cost us is a lot of businesses: many which never existed and we can’t miss, others that went out of business. Thirty-percent app stores have also cost existing businesses a lot of profits they could have reinvested in new employees, or given to shareholders (or, admittedly, wasted on their executives.) They have also cost us a lot of apps, both from companies that never existed and from existing companies, because the 30% made them unprofitable right at conception.

App store fees are taxes; all major app stores that I can think of off-hand are near monopolies or part of oligopolies. We don’t know what Apple’s profits from the app store are, but one expert guessed around 80% (Apple said “no” but never gave the necessary data to refute.)

No one makes that sort of profit except in brief periods or when they have a huge, and unfair, market advantage. There is no way in any reasonable market theory to justify such profits over a period of more than a couple years. These are pure market position/monopoly/oligopoly profits.

So, yes, my friends, unless you are attached to the spigot (not necessarily the App spigot, but the general oligopoly spigot), the App store has cost you something: a world with a lot more jobs, companies and apps. You don’t even know what you lost, because what App store companies have done is mostly akin to strangling newborns: you never got to see what they killed, just by existing and taking extortionate profits.

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How Internet Monopolies Are Destroying the Web

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On December 6, 2017

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The actual enemy of entrenched interests is not the right, or “Russia” (a country with half the GDP of California), it is the left, who are the people who would tax them and break their power.

Thus, it is not surprising that when Google decided to attack “fake news” they hit the left.

The estimated declines in traffic generated by Google searches for news sites are striking:

I have noticed declines in my own search traffic, though I’m a bit player.

The left, in general, favors high tax rates and either very strict regulation of large corporations or breaking them up. Google, certainly, needs to be broken up, at the least back into its constituent parts (i.e., sever the search engine from everything else.)

But Google is a particularly bad actor: For years it has been evident to everyone in the space that they are hoovering up most of ad revenue. In the early 00s, until 2006/7 it was fairly easy for relatively small websites to make money from ads. That went away as Google cornered much of the market and it’s only gotten worse since then.

Google’s relationship to web sites is almost identical to railroads and farmers in the 19th and early 20th century: Without railroad shipping, farmer’s products couldn’t make it to market, so the railroads set rates that maximized their profit, driving many farms into bankruptcy and keeping most in penury. They took virtually all of the profit.

For smaller, and even mediums-sized web sites Google (and Facebook, to a lesser degree) are in the same position. They determine who gets traffic, especially to newer web sites without established audiences. Because without them you get little to nothing, they get the money.

That means, in effect, that Google and Facebook and other similar companies, exist by taking away the value of other people’s labor–value without which they would have no business or profits. The web’s content comes first; Google’s “finding” it comes second.

There is a lot of gloating in the tech world about how good they are with information, but the basic information problem has not been fixed. Finding what you want or need or what would suit you best is really hard when there are so many options, and no one has figured out how to do it.

This is, at least in part, a matter of incentives. It is in Google’s interest to match you to whatever site benefits Google most, not the site that benefits you most. Just as Amazon doesn’t show everyone the cheapest alternatives for their search (if you can pay more, why show you cheap?), Google wants to make money for Google, and serving you is only important to the extent it makes them money.

As Google has gotten older, it feels as if their results have gotten worse, because they are now in a monopoly situation in most Western countries. People use Google to search, there is no major alternative.

Unregulated monopolies are bad. Unregulated, bundled monopolies are worse (as in, Google and Facebook buying up other market dominant firms, like YouTube).

This problem, combined with the FCC getting rid of network neutrality, is going to destroy a ton of livelihoods (no, not such money as I get from donors; I’m grandfathered in). It has already made the net far less interesting. Every year more stuff is on the Web, yeah, but it’s more mainstream commercial stuff. The weird web of the 90s and early 00s withers.

And it withers because it is in the interest of almost every big actor, from Facebook to Google to the major ISPs, that it does so. They don’t all have identical interests, no, but they all want a Web where either everyone pays a toll, or you have to go to them to get a specific type of content.

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The Only Person with Sense in the Trump Administration…

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On July 29, 2017

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Steve Bannon

…is Steve Bannon. (Yes, he’s a nasty nativist as well.)

In the last few days, Bannon has suggested increasing the top marginal rate to 44 percent and regulating Google and Facebook.

Both of these are good ideas. I’m sure that Bannon’s regulations of Facebook and Google might not be what I’d want, but the bottom line is that these are now the primary media organizations of the world: What people read or see is mostly determined by Google or Facebook–their algorithms and employees.

For example, three months ago, Google put out a new algo to reduce fake news. Result?

In the three months since Google implemented the changes to its search engine, fewer people have accessed left-wing and anti-war news sites. Based on information available on Alexa analytics, other sites that have experienced sharp drops in ranking include WikiLeaks, Alternet, Counterpunch, Global Research, Consortium News and Truthout. Even prominent democratic rights groups such as the American Civil Liberties Union and Amnesty International appear to have been hit.

Hey! What a surprise. Major corporation does something which makes people who tend to think badly of major corporations read less!

The bottom line is simple: Two companies control most of what people read and that should be under democratic control. And that’s before we even get to how Google and Facebook have systematically taken control of advertising, diverting more and more of the profit to them and away from actual content creators.

This is similar to the problem of railroads before major highways and trucking: farmers could only get crops to market through railroads, so railroads took almost all the profits. We have forgotten, but farmers hated the railroads with a sickly passion, and for good reason.

Google and Facebook determine who gets read, the political and economic repercussions of which are massive. (And Facebook’s CEO quite clearly wants to be President.)

Bannon is right, whether you like his other politics or not.

As far as the Trump admin goes, Ivanka and Jared are the ones who try to mitigate the nasty social stuff (often failing) and Bannon is the only one who wants ordinary Americans to do well.

You can despise all three, with good reason, but understand the reality.

Oh, and “fake news”? It exists, but the hysteria around it is being ridden heavily by people you want nothing to do with. And no fake news so far has ever equaled the New York Times lies which helped sell the Iraq war.

Fake news hysteria among elites is really just them saying: “Our monopoly on lies is being taken away from us! Only approved lies should be allowed!”

The results of the work I do, like this article, are free, but food isn’t, so if you value my work, please DONATE or SUBSCRIBE.

 

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