In this week's edition, we cover the complexities of supplying Israel with munitions while maintaining commitments to Ukraine and Taiwan, the challenges posed by China's economic slowdown on the international stage, and evolving AI regulations. We also touch on Amazon's Project Kuiper in the satellite internet space, the growth of robotic surgery in medical education, and the rise of hacktivism amid the Israel-Hamas conflict. Furthermore, we explore the increasing number of data breaches in 2023 and the AI industry's growth in San Francisco.

Industrial Policy & International Security

Can the United States Equip Israel while Simultaneously Equipping Ukraine and Taiwan? - CSIS

While President Biden has expressed his intention to provide support to Israel during its war, the United States faces challenges in supplying the nation while also maintaining sufficient stockpiles for other conflicts. Israel's imminent operations in Gaza and on its northern border with Lebanon will require precision munitions and air defenses, making items like JDAM and Iron Dome crucial. Some essential items may be in limited supply. To meet Israel's needs, the U.S. might have to divert resources from its commitments to Ukraine and Taiwan. However, Israel's smaller forces and shorter war duration give it priority. Over time, trade-offs may arise as key systems are diverted to Israel, potentially affecting Ukraine's counteroffensive.

The Dangers of Peak China - Lawfare

As China faces a slowing economy, a historical analysis reveals that "peaking powers" tend to react by limiting dissent and by expanding abroad to secure economic resources. These powers, having both the means and motive to disrupt the international order, often engage in a mercantilist approach to trade. China's current economic challenges, exemplified by slowed growth and high debt, have led to an aggressive campaign of economic aggression and military buildup. The U.S. should compete with China in critical areas  and use available tools and partnerships to address immediate threats.

US Regulation

The AI regulatory toolbox: How governments can discover algorithmic harms | Brookings

Regulators worldwide are addressing the regulation of artificial intelligence (AI) and algorithmic systems. They need to actively understand these systems within their domains and assess their compliance with existing statutory authority. Several agencies, such as the FTC, the Netherlands and Spain's new algorithmic regulators, and the UK's OFCOM, are pioneering novel approaches to AI regulation. The emerging AI regulatory toolbox includes algorithmic transparency requirements, algorithmic investigations and audits, regulatory AI sandboxes, and leveraging the AI assurance industry. Regulators should utilize these tools to effectively govern various AI systems in different sectors, taking into account their strengths and weaknesses.

US Warns EU’s Landmark AI Policy Will Only Benefit Big Tech | Time

The US has warned the European Union that its proposed AI regulation could favor large companies capable of compliance costs, hurting smaller firms. The US position focuses on the European Parliament's version of the AI Act and raises concerns about vague or undefined terms in the legislation. The US prefers an approach that emphasizes risk in AI usage rather than development. The analysis warns that EU regulations could dampen productivity and drive job migration and investment elsewhere, affecting the competitiveness of European firms. The EU Parliament's AI Act seeks to bring more transparency to AI model training. Washington calls for a more innovation-friendly approach.

Innovation

Amazon launches its first internet satellites as Jeff Bezos looks to rival SpaceX's Starlink - Business Insider

Amazon successfully launched the first two prototypes of its Project Kuiper satellites, competing with Elon Musk's Starlink for global broadband internet services. Project Kuiper plans to create a constellation of over 3,200 satellites to provide high-speed, affordable internet to underserved communities. The satellites were launched into orbit from an Atlas V rocket. Amazon's satellite network will rival Starlink, which has more than 2 million customers and over 4,000 satellites in orbit. These satellite internet networks play a crucial role in bringing connectivity to rural areas and serving as disaster communication backups.

Tech innovations help Space Force guardians prepare for the battlefield above |

SpaceNews

The US Space Force is exploring the use of immersive technologies like augmented and virtual reality for more realistic and interactive training. These technologies help guardians understand the congested and contested space environment and prepare for competition with spacefaring global powers. Tools like Kwyn Solar enable trainees to visualize and interact with satellite assets, enhancing situational awareness and understanding satellite roles in military operations. The remote nature of Space Force training and the digital-native generation joining the force make these immersive training tools a valuable addition to traditional methods, ensuring future guardians are well-prepared for competition and conflict in space.

Meet the Next Generation of Doctors—and Their Surgical Robots | WIRED
Robotic surgery has become more prevalent in the medical field, with a 2020 study finding that its use increased from 1.8% in 2012 to 15.1% in 2018. Surgeons are increasingly incorporating robotic systems like the Da Vinci Surgical System into their practice. Medical education is also evolving to include robotic surgery, with students using simulators to practice skills for robotic surgery. Research is ongoing to determine the best methods for teaching these skills and differentiating novice and proficient robot users. High costs and access to simulators are challenges in medical education, but robotic surgery provides students with a better view of the surgery. Advances in robotic surgery are expected to continue, with new robots entering the market.

Cyber

Hacktivism erupts in response to Hamas-Israel war - TechCrunch

Hacktivists have targeted Israeli websites with cyberattacks, including denial of service (DDoS) attacks and defacements, following a recent attack on Israel by the militant group Hamas. While the attacks disrupted websites, they are not attributed to nation-state actors. The cyberattacks coincide with increased international involvement by hacktivist groups from countries such as Bangladesh, Pakistan, and Morocco, supporting Palestine. Additionally, cybercriminal service operators offering DDoS-for-hire and initial access brokering services have been active. One expert notes that these hacktivist activities have limited practical impact on the ongoing conflict.

2023 is already the worst year for hacks—and we’re not out yet - Fast Company

As of September 2023, corporations reported 2,116 data breaches, already surpassing the previous annual record of 1,862 set in 2021. The third quarter had 733 reported breaches, affecting 66,658,764 individuals. The financial services sector recorded the highest number of attacks, topping healthcare for the first time since Q2 2022. These breaches are attributed to factors such as a rise in Zero-Day attacks and the emergence of new ransomware groups. Though the number of breaches has gone up, the total number of victims, at 233.9 million, remains below the 425 million victims at the same time in 2022.

State & Local Tech Ecosystems

Another tech wave is coming for San Francisco’s Mission District | SFGATE
San Francisco's Mission District, known for its diversity, is quietly becoming a hub for the artificial intelligence industry. Companies like Adept AI, OpenAI, Zoox, Ideo, and Embark Trucks have offices in the neighborhood. While San Francisco has seen a decline in tech companies, the AI sector is seeing significant growth in funding. Although the influx of AI companies could raise office space prices, it is expected to benefit the local community, increasing vibrancy and foot traffic. However, concerns have been raised about the potential displacement of traditional businesses in the area.

JPMorgan Has a Master Plan to Beat Competitors in Silicon Valley | Bloomberg

JPMorgan is making a push to become the new financial partner of startups, filling the void left by Silicon Valley Bank (SVB). With the collapse of SVB, JPMorgan received a significant influx of tech companies as clients. The bank aims to serve tech companies at every stage of their growth and is building out a staff of commercial bankers dedicated to the sector. JPMorgan will face competition from other banks like First Citizens BancShares, East West Bancorp, and HSBC Holdings, as well as venture capital firms offering services to startups.

Democracy Online

The Israel-Hamas War Is Drowning X in Disinformation - WIRED
Disinformation related to the Israel-Hamas conflict flooded X as people sought to verify raw video footage and images. Verified content was difficult to find as the scale of disinformation was too large for fact checkers and OSINT researchers to fully parse. Content with blue checkmarks shot to the top of news feeds, further exacerbating the situation. Elon Musk's endorsement of problematic accounts also contributed to the spread of disinformation. The algorithm's focus on engagement incentivized bad actors to share misleading content, and X's reduced effort in combating disinformation added to the problem.

New Laws on Kids and Social Media Are Stymiad by Industry Lawsuits  | The New York Times

A federal judge in California has blocked a state law that aimed to regulate how popular social media and video game platforms treat minors, arguing it "likely violates" the First Amendment. This is part of a broader battle over the regulation of online services' interactions with young users, pitting tech giants and free speech activists against activists, governors, lawmakers, and children's groups. Various states have passed laws restricting minors' access to social media and online pornography sites, resulting in lawsuits that could have significant implications for tech regulation nationwide.

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