Tech News Summary:
- Google ends contract with Australian-listed data company Appen, impacting AI tools
- Financial impact on Appen is significant, with $82.8 million in revenue from Google in 2023
- Google’s decision reflects broader efforts to streamline operations and cut costs, amidst controversies in AI services
MELBOURNE, Nov 4 (Reuters) – Google has decided to end its relationship with Australian-listed artificial intelligence (AI) company Appen, a move that will have a significant impact on the development of AI tools.
The decision comes as a blow to Appen, which has been a key player in providing training data for AI algorithms to companies like Google. The company’s stock price plummeted in response to the news, dropping by 15% in early trading.
Google’s decision to sever ties with Appen is reportedly due to concerns about the quality of the data provided by the company. In recent years, there has been growing scrutiny and criticism of the accuracy and biases present in AI training data, leading to a push for more transparent and accountable practices in the industry.
The move will have significant implications for Appen, as it relies heavily on its relationship with major tech companies like Google for a substantial portion of its revenue. Additionally, this development could potentially disrupt the development of AI tools and applications that rely on Appen’s training data.
In response to the news, Appen has stated that it is working to address Google’s concerns and is committed to improving the quality of its data to maintain its competitive position in the industry.
The decision highlights the growing importance of ethical and high-quality AI training data in the development of AI technologies, and the impact that such decisions can have on the companies involved. It also serves as a reminder of the power and influence that major tech companies like Google hold in the AI industry.