Tag Archives: algorithms

Who is Ready for Q-Day?

It isn’t certain when quantum computers will be able to break the encryption used to protect the world’s most sensitive data, but corporate technology leaders need to assess the risks of this scenario now…Even the most powerful traditional computers use binary digits, or bits, which can either be 0s or 1s. Quantum computers use quantum bits, or qubits, which represent and store information in both 0s and 1s simultaneously, known as superposition. Such machines have the potential to sort through a vast number of possible solutions to a problem within a fraction of a second to come up with a likely answer…

A fault tolerant quantum computer will be able to hammer away at problems indefinitely, giving them wherewithal to break encryption algorithms that companies and governments use to protect their most price-sensitive and important information… That moment might reasonably occur by around 2035

Why worry about a scenario that’s looming perhaps a decade or more in the future? Because of a scenario some call “harvest now, decrypt later.” It envisions hackers stealing encrypted data today and sitting on it for years, hoping to realize its value at some point in the future when quantum computers are able to decrypt the information…Quantum computing has already progressed enough that companies can begin strategizing now for Q Day, the point at which quantum computers can break classic encryption…In August 2024, the National Institute of Standards and Technology (NIST), an agency of the Commerce Department, published three new algorithms for post-quantum encryption. Some companies are already moving ahead, including IBM and Apple….

Excerpts from Steven Rosenbush, Q Day’ Is Coming. It’s Time to Worry About Quantum Security, WSJ, Oct. 9, 2024

Algorithmic Cartels and the Rentiers

Legal pressure is mounting on a property-management software company, RealPage, facing allegations that it illegally fixes apartment rent prices at buildings across the U.S….The Justice Department  has opened a criminal investigation into the company, according to people familiar with the matter….RealPage’s algorithmic pricing system analyzes huge troves of information about the apartment rental market. It then recommends to landlords how much to increase rent for each lease renewal, or what to ask for newly vacated apartments. At issue is whether the use of this pricing system amounts to an illegal rent-setting cartel among landlords, artificially boosting the rents paid by apartment tenants over many years. 

Arizona Attorney General Kris Mayes alleges that, in Phoenix and Tucson, RealPage pooled nonpublic pricing data from competing building owners, then fed the data into an algorithm that told landlords to push rents higher than they might have otherwise. RealPage then discouraged landlords from deviating from the algorithm’s suggested rents, according to the attorney general’s filing.“There is no competitive rental market in Arizona anymore, ” Mayes said in an interview. “Because RealPage sets the price.”

Texas-based RealPage was founded in 1998. It acquired the YieldStar pricing platform from publicly traded landlord Camden Property Trust in 2002. Private-equity firm Thoma Bravo purchased RealPage in 2021 for nearly $10 billion.  Federal charges could prove disastrous not only for RealPage but also for the many landlords and property managers who use its technology. That includes some of the largest real-estate companies on Wall Street. 

Excerpts from Will Parker, Alleged Rent-Fixing of Apartments Nationwide Draws More Legal Scrutiny, WSJ, Apr. 15, 2024

Algorithms as Weapons –Tracking,Targeting Nuclear Weapons

 
New and unproved technologies—this time computer systems capable of performing superhuman tasks using machine learning and other forms of artificial intelligence (AI)—threaten to destabilise the global “strategic balance”, by seeming to offer ways to launch a knockout blow against a nuclear-armed adversary, without triggering an all-out war.

A report issued in November by America’s National Security Commission on Artificial Intelligence, a body created by Congress and chaired by Eric Schmidt, a former boss of Google, and Robert Work, who was deputy defence secretary from 2014-17, ponders how AI systems may reshape global balances of power, as dramatically as electricity changed warfare and society in the 19th century. Notably, it focuses on the ability of AI to “find the needle in the haystack”, by spotting patterns and anomalies in vast pools of data…In a military context, it may one day find the stealthiest nuclear-armed submarines, wherever they lurk. The commission is blunt. Nuclear deterrence could be undermined if AI-equipped systems succeed in tracking and targeting previously invulnerable military assets. That in turn could increase incentives for states, in a crisis, to launch a devastating pre-emptive strike. China’s rise as an AI power represents the most complex strategic challenge that America faces, the commission adds, because the two rivals’ tech sectors are so entangled by commercial, academic and investment ties.

Some Chinese officials sound gung-ho about AI as a path to prosperity and development, with few qualms about privacy or lost jobs. Still, other Chinese fret about AI that might put winning a war ahead of global stability, like some game-playing doomsday machine. Chinese officials have studied initiatives such as the “Digital Geneva Convention” drafted by Microsoft, a technology giant. This would require states to forswear cyber-attacks on such critical infrastructure as power grids, hospitals and international financial systems.  AI would make it easier to locate and exploit vulnerabilities in these…

One obstacle is physical. Warheads or missile defences can be counted by weapons inspectors. In contrast, rival powers cannot safely show off their most potent algorithms, or even describe AI capabilities in a verifiable way….Westerners worry especially about so-called “black box” algorithms, powerful systems that generate seemingly accurate results but whose reasoning is a mystery even to their designers.

Excerpts from Chaguan: The Digital Divide, Economist, Jan 18, 2019