ServiceNow Embroiled In DOJ Probe of Government Contract Award

snydeq shares a report from CIO.com: ServiceNow has reported potential compliance issues to the US Department of Justice “related to one of its government contracts” as well as the hiring of the then-CIO of the US Army to be its head of global public sector, the company said in regulatory filings on Wednesday. The DOJ is looking into the matter. Following an internal investigation, ServiceNow said, its President and COO, CJ Desai, has resigned, while “the other individual has also departed the company.” That executive, Raj Iyer, told CIO.com, “I resigned because I didn’t want to be associated with this fiasco in any way. It’s not my fault.”

CEO Bill McDermott told financial analysts in a conference call Wednesday that someone within ServiceNow had complained about the situation and that an internal probe “determined that our company policy was violated.”

“Acting with total transparency, the company proactively disclosed the findings of the investigation to the proper government entities. And as a result, today, we’re announcing the departure of the individual whose hiring was the subject of the original complaint,” McDermott said. “We also came to a mutual agreement that CJ Desai, our President and COO, would offer his resignation from the company effective immediately. While we believe this was an isolated incident, we are further sharpening our hiring policies and procedures as a result of the situation.”

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California Supreme Court Upholds Gig Worker Law In a Win For Ride-Hail Companies

In a major victory for ride-hail companies, California Supreme Court upheld a law classifying gig workers as independent contractors, maintaining their ineligibility for benefits such as sick leave and workers’ compensation. This decision concludes a prolonged legal battle and supports the 2020 ballot measure Proposition 22, despite opposition from labor groups who argued it was unconstitutional. Politico reports: Thursday’s ruling capped a yearslong battle between labor and the companies over the status of workers who are dispatched by apps to deliver food, buy groceries and transport customers. A 2018 Supreme Court ruling and a follow-up bill would have compelled the gig companies to treat those workers as employees. A collection of five firms then spent more than $200 million to escape that mandate by passing the 2020 ballot measure Proposition 22 in one of the most expensive political campaigns in American history. The unanimous ruling on Thursday now upholds the status quo of the gig economy in California.

As independent contractors, gig workers are not entitled to benefits like sick leave, overtime and workers’ compensation. The SEIU union and four gig workers, ultimately, challenged Prop 22 based on its conflict with the Legislature’s power to administer workers’ compensation, specifically. The law, which passed with 58 percent of the vote in 2020, makes gig workers ineligible for workers’ comp, which opponents of Prop 22 argued rendered the entire law unconstitutional. […] Beyond the implications for gig workers, the heavily-funded Prop 22 ballot campaign pushed the limits of what could be spent on an initiative, ultimately becoming the most expensive measure in California history. Uber and Lyft have both threatened to leave any states that pass laws not classifying their drivers as independent contractors. The decision Thursday closes the door to that possibility for California.

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AI Models Face Collapse If They Overdose On Their Own Output

According to a new study published in Nature, researchers found that training AI models using AI-generated datasets can lead to “model collapse,” where models produce increasingly nonsensical outputs over generations. “In one example, a model started with a text about European architecture in the Middle Ages and ended up — in the ninth generation — spouting nonsense about jackrabbits,” writes The Register’s Lindsay Clark. From the report: [W]ork led by Ilia Shumailov, Google DeepMind and Oxford post-doctoral researcher, found that an AI may fail to pick up less common lines of text, for example, in training datasets, which means subsequent models trained on the output cannot carry forward those nuances. Training new models on the output of earlier models in this way ends up in a recursive loop. In an accompanying article, Emily Wenger, assistant professor of electrical and computer engineering at Duke University, illustrated model collapse with the example of a system tasked with generating images of dogs. “The AI model will gravitate towards recreating the breeds of dog most common in its training data, so might over-represent the Golden Retriever compared with the Petit Basset Griffon Vendéen, given the relative prevalence of the two breeds,” she said.

“If subsequent models are trained on an AI-generated data set that over-represents Golden Retrievers, the problem is compounded. With enough cycles of over-represented Golden Retriever, the model will forget that obscure dog breeds such as Petit Basset Griffon Vendeen exist and generate pictures of just Golden Retrievers. Eventually, the model will collapse, rendering it unable to generate meaningful content.” While she concedes an over-representation of Golden Retrievers may be no bad thing, the process of collapse is a serious problem for meaningful representative output that includes less-common ideas and ways of writing. “This is the problem at the heart of model collapse,” she said.

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World of Warcraft Developers Form Blizzard’s Largest and Most Inclusive Union

Ash Parrish reports via The Verge: More than 500 developers at Blizzard Entertainment who work on World of Warcraft have voted to form a union. The World of Warcraft GameMakers Guild, formed with the assistance of the Communication Workers of America (CWA), is composed of employees across every department, including designers, engineers, artists, producers, and more. Together, they have formed the largest wall-to-wall union — or a union inclusive of multiple departments and disciplines — at Microsoft. This news comes less than a week after the formation of the Bethesda Game Studios union, which, at the time of the announcement, was itself the largest wall-to-wall Microsoft union. […]

The World of Warcraft GameMakers Guild is made up of over 500 members across Blizzard offices in California and Massachusetts. Despite its size — it is the second largest union at Microsoft overall behind Activision’s 600-member QA union — [Paul Cox, senior quest designer and Blizzard veteran] said that Microsoft’s labor neutrality agreement helped get the organization ball rolling. In a statement to The Verge, Microsoft spokesperson Delaney Simmons said, “We continue to support our employees’ right to choose how they are represented in the workplace, and we will engage in good faith negotiations with the CWA as we work towards a collective bargaining agreement.”

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Cyber Firm KnowBe4 Hired a Fake IT Worker From North Korea

In a blog post on Tuesday, security firm KnowBe4 revealed that a remote software engineer hire was a North Korean threat actor using a stolen identity and AI-augmented images. “Detailing a seemingly thorough interview process that included background checks, verified references and four video conference-based interviews, KnowBe4 founder and CEO Stu Sjouwerman said the worker avoided being caught by using a valid identity that was stolen from a U.S.-based individual,” reports CyberScoop. “The scheme was further enhanced by the actor using a stock image augmented by artificial intelligence.” From the report: An internal investigation started when KnowBe4’s InfoSec Security Operations Center team detected “a series of suspicious activities” from the new hire. The remote worker was sent an Apple laptop, which was flagged by the company on July 15 when malware was loaded onto the machine. The AI-filtered photo, meanwhile, was flagged by the company’s Endpoint Detection and Response software. Later that evening, the SOC team had “contained” the fake worker’s systems after he stopped responding to outreach. During a roughly 25-minute period, “the attacker performed various actions to manipulate session history files, transfer potentially harmful files, and execute unauthorized software,” Sjouwerman wrote in the post. “He used a [single-board computer] raspberry pi to download the malware.” From there, the company shared its data and findings with the FBI and with Mandiant, the Google-owned cyber firm, and came to the conclusion that the worker was a fictional persona operating from North Korea.

KnowBe4 said the fake employee likely had his workstation connected “to an address that is basically an ‘IT mule laptop farm.'” They’d then use a VPN to work the night shift from where they actually reside — in this case, North Korea “or over the border in China.” That work would take place overnight, making it appear that they’re logged on during normal U.S. business hours. “The scam is that they are actually doing the work, getting paid well, and give a large amount to North Korea to fund their illegal programs,” Sjouwerman wrote. “I don’t have to tell you about the severe risk of this.” Despite the intrusion, Sjouwerman said “no illegal access was gained, and no data was lost, compromised, or exfiltrated on any KnowBe4 systems.” He chalked up the incident to a threat actor that “demonstrated a high level of sophistication in creating a believable cover identity” and identified “weaknesses in the hiring and background check processes.”

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