An anonymous reader shares a report: Australia's Department of the Treasury has found that Microsoft's Copilot can easily deliver return on investment, but staff exposed to the AI assistant came away from the experience less confident it will help them at work.

The Department conducted a 14-week trial of Microsoft 365 Copilot during 2024 and asked for volunteers to participate. 218 put up their hands and then submitted to surveys about their experiences using Microsoft's AI helpers. Those surveys are the basis of an evaluation report published on Tuesday. The report reveals that after the trial participants rated Copilot less useful than they hoped it would be, as it was applicable to fewer workloads than they hoped would be the case.

Workers' views on Copilot's ability to improve their work also fell. Usage of Copilot was lower than expected, with most participants using it two or three times a week, or less. reported using Copilot 2-3 times per week or less. Treasury thinks it probably set unrealistically high expectations before the trial, and noted that participants often suggested extra training would be valuable.

A BBC study published yesterday (PDF) found that AI news summarization tools frequently generate inaccurate or misleading summaries, with 51% of responses containing significant issues. The Register reports: The research focused on OpenAI's ChatGPT, Microsoft's Copilot, Google's Gemini, and Perplexity assistants, assessing their ability to provide "accurate responses to questions about the news; and if their answers faithfully represented BBC news stories used as sources." The assistants were granted access to the BBC website for the duration of the research and asked 100 questions about the news, being prompted to draw from BBC News articles as sources where possible. Normally, these models are "blocked" from accessing the broadcaster's websites, the BBC said. Responses were reviewed by BBC journalists, "all experts in the question topics," on their accuracy, impartiality, and how well they represented BBC content. Overall:

- 51 percent of all AI answers to questions about the news were judged to have significant issues of some form.
- 19 percent of AI answers which cited BBC content introduced factual errors -- incorrect factual statements, numbers, and dates.
- 13 percent of the quotes sourced from BBC articles were either altered from the original source or not present in the article cited.

But which chatbot performed worst? "34 percent of Gemini, 27 percent of Copilot, 17 percent of Perplexity, and 15 percent of ChatGPT responses were judged to have significant issues with how they represented the BBC content used as a source," the Beeb reported. "The most common problems were factual inaccuracies, sourcing, and missing context." [...] In an accompanying blog post, BBC News and Current Affairs CEO Deborah Turness wrote: "The price of AI's extraordinary benefits must not be a world where people searching for answers are served distorted, defective content that presents itself as fact. In what can feel like a chaotic world, it surely cannot be right that consumers seeking clarity are met with yet more confusion.

"It's not hard to see how quickly AI's distortion could undermine people's already fragile faith in facts and verified information. We live in troubled times, and how long will it be before an AI-distorted headline causes significant real world harm? The companies developing Gen AI tools are playing with fire." Training cutoff dates for various models certainly don't help, yet the research lays bare the weaknesses of generative AI in summarizing content. Even with direct access to the information they are being asked about, these assistants still regularly pull "facts" from thin air.

Most corporate tech leaders are hesitant to deploy AI agents despite vendors' push for rapid adoption, according to a Wall Street Journal CIO Network Summit poll on Tuesday. While 61% of attendees at the Menlo Park summit said they are experimenting with AI agents, which perform automated tasks, 21% reported no usage at all.

Reliability concerns and cybersecurity risks remain key barriers, with 29% citing data privacy as their primary concern. OpenAI, Microsoft and Sierra are urging businesses not to wait for the technology to be perfected. "Accept that it is imperfect," said Bret Taylor, Sierra CEO and OpenAI chairman. "Rather than say, 'Will AI do something wrong', say, 'When it does something wrong, what are the operational mitigations that we've put in place?'" Three-quarters of the polled executives said AI currently delivers minimal value for their investments. Some companies are "having hammers looking for nails," said Jim Siders, Palantir's chief information officer, describing firms that purchase AI solutions before identifying clear use cases.

Anduril will take over management and eventual manufacturing of the U.S. Army's Integrated Visual Augmentation System (IVAS) from Microsoft, a significant shift in one of the military's most ambitious augmented reality projects.

The deal, which requires Army approval, could be worth over $20 billion in the next decade if all options are exercised, according to Bloomberg. The IVAS system, based on Microsoft's HoloLens mixed reality platform, aims to equip soldiers with advanced capabilities including night vision and airborne threat detection.

Under the new arrangement, Microsoft will transition to providing cloud computing and AI infrastructure, while Anduril assumes control of hardware production and software development. The Army has planned orders for up to 121,000 units, though full production hinges on passing combat testing this year.

The program has faced technical hurdles, with early prototypes causing headaches and nausea among soldiers. The current slimmer version has received better feedback, though cost remains a concern - the Army indicated the $80,000 per-unit price needs to "be substantially less" to justify large-scale procurement.

Anduril founder Palmer Luckey, writing in a blog post: This move has been so many years in the making, over a decade of hacking and scheming and dreaming and building with exactly this specific outcome clearly visualized in my mind's eye. I can hardly believe I managed to pull it off. Everything I've done in my career -- building Oculus out of a camper trailer, shipping VR to millions of consumers, getting run out of Silicon Valley by backstabbing snakes, betting that Anduril could tear people out of the bigtech megacorp matrix and put them to work on our nation's most important problems -- has led to this moment. IVAS isn't just another product, it is a once-in-a-generation opportunity to redefine how technology supports those who serve. We have a shot to prove that this long-standing dream is no windmill, that this can expand far beyond one company or one headset and act as a a nexus for the best of the best to set a new standard for how a large collection of companies can work together to solve our nation's most important problems.

An anonymous reader shares a report: Microsoft has offered to widen the price differential between its Office product sold with its chat and video app Teams and its software sold without the app in a bid to avert a possible EU antitrust fine, according to three sources. The move by the U.S. tech giant comes five years after Salesforce-owned Slack complained to the European Commission about Microsoft's tying of Teams with Office. In 2023, German rival alfaview filed a similar grievance to the EU watchdog. Teams, which was added to Office 365 in 2017 for free and eventually replaced Skype for Business, became popular during the pandemic due in part to its video conferencing.

An anonymous reader shares a report: A new paper [PDF] from researchers at Microsoft and Carnegie Mellon University finds that as humans increasingly rely on generative AI in their work, they use less critical thinking, which can "result in the deterioration of cognitive faculties that ought to be preserved."

"[A] key irony of automation is that by mechanising routine tasks and leaving exception-handling to the human user, you deprive the user of the routine opportunities to practice their judgement and strengthen their cognitive musculature, leaving them atrophied and unprepared when the exceptions do arise," the researchers wrote.

Fortune remembers that in 2011 Steve Jobs had told author Walter Isaacson that Microsoft co-founder Bill Gates would "be a broader guy if he had dropped acid once or gone off to an ashram when he was younger."

But The Indendepent notes that in his new memoir Gates does write about two acid trip experiences. (Gates mis-timed his first experiment with LSD, ending up still tripping during a previously-scheduled appointment for dental surgery...) "Later in the book, Gates recounts another experience with LSD with future Microsoft co-founder Paul Allen and some friends... Gates says in the book that it was the fear of damaging his memory that finally persuaded him never to take the drug again." He added: "I smoked pot in high school, but not because it did anything interesting. I thought maybe I would look cool and some girl would think that was interesting. It didn't succeed, so I gave it up."

Gates went on to say that former Apple CEO Steve Jobs, who didn't know about his past drug use, teased him on the subject. "Steve Jobs once said that he wished I'd take acid because then maybe I would have had more taste in my design of my products," recalled Gates. "My response to that was to say, 'Look, I got the wrong batch.' I got the coding batch, and this guy got the marketing-design batch, so good for him! Because his talents and mine, other than being kind of an energetic leader, and pushing the limits, they didn't overlap much. He wouldn't know what a line of code meant, and his ability to think about design and marketing and things like that... I envy those skills. I'm not in his league."

Gates added that he was a fan of Michael Pollan's book about psychedelic drugs, How To Change Your Mind, and is intrigued by the idea that they may have therapeutic uses. "The idea that some of these drugs that affect your mind might help with depression or OCD, I think that's fascinating," said Gates. "Of course, we have to be careful, and that's very different than recreational usage."
Touring the country, 69-year-old Gates shared more glimpses of his life story:

• The Harvard Gazette notes that the university didn't offer computer science degrees when Gates attended in 1973. But since Gates already had years of code-writing experience, he "initially rebuffed any suggestion of taking computer-related coursework... 'It's too easy,' he remembered telling friends."

• "The naiveté I had that free computing would just be this unadulterated good thing wasn't totally correct even before AI," Gates told an audience at the Harvard Book Store. "And now with AI, I can see that we could shape this in the wrong way."

• Gates "expressed regret about how he treated another boyhood friend, Paul Allen, the other cofounder of Microsoft, who died in 2018," reports the Boston Globe. "Gates at first took 60 percent ownership of the new software company and then pressured his friend for another 4 percent. 'I feel bad about it in retrospect,' he said. 'That was always a little complicated, and I wish I hadn't pushed....'"

• Business Insider adds that according to his memoir, Gates "eventually gave his additional 4% stake to [Steve] Ballmer to convince him to quit business school for Microsoft. 'He joined in 1980 and became the 24-hour-a-day partner I needed,' Gates wrote."

• Benzinga writes that Gates has now "donated $100 billion to charitable causes... Had Gates retained the $100 billion he has donated, his total wealth would be around $264 billion, placing him second on the global wealth rankings behind Elon Musk and ahead of Jeff Bezos and Mark Zuckerberg."

• Gates told the Associated Press "I am stunned that Intel basically lost its way," saying Intel is now "kind of behind" on both chip design and fabrication. "They missed the AI chip revolution, and with their fabrication capabilities, they don't even use standards that people like Nvidia and Qualcomm find easy... I hope Intel recovers, but it looks pretty tough for them at this stage."

• Gates also told the Associated Press that fighting a three-year antitrust case had "distracted" Microsoft. "The area that Google did well in that would not have happened had I not been distracted is Android, where it was a natural thing for me. I was trying, although what I didn't do well enough is provide the operating system for the phone. That was ours for the taking."

• The Dallas News reports that in an on-stage interview in Texas, Mark Cuban closed by asking Gates one question. "Is the American Dream alive?" Gates answered: "It was for me."

Keynotes at this year's FOSDEM included free AI models and systemd, reports Heise.de — and also a progress report from Miguel Ojeda, supervisor of the Rust integration in the Linux kernel. Only eight people remain in the core team around Rust for Linux... Miguel Ojeda therefore launched a survey among kernel developers, including those outside the Rust community, and presented some of the more important voices in his FOSDEM talk. The overall mood towards Rust remains favorable, especially as Linus Torvalds and Greg Kroah-Hartman are convinced of the necessity of Rust integration. This is less about rapid progress and more about finding new talent for kernel development in the future.
The reaction was mostly positive, judging by Ojeda's slides:

- "2025 will be the year of Rust GPU drivers..." — Daniel Almedia

- "I think the introduction of Rust in the kernel is one of the most exciting development experiments we've seen in a long time." — Andrea Righi

- "[T]he project faces unique challenges. Rust's biggest weakness, as a language, is that relatively few people speak it. Indeed, Rust is not a language for beginners, and systems-level development complicates things even more. That said, the Linux kernel project has historically attracted developers who love challenging software — if there's an open source group willing to put the extra effort for a better OS, it's the kernel devs." — Carlos Bilbao

- "I played a little with [Rust] in user space, and I just absolutely hate the cargo concept... I hate having to pull down other code that I do not trust. At least with shared libraries, I can trust a third party to have done the build and all that... [While Rust should continue to grow in the kernel], if a subset of C becomes as safe as Rust, it may make Rust obsolete..." Steven Rostedt

Rostedt wasn't sure if Rust would attract more kernel contributors, but did venture this opinion. "I feel Rust is more of a language that younger developers want to learn, and C is their dad's language."

But still "contention exists within the kernel development community between those pro-Rust and -C camps," argues The New Stack, citing the latest remarks from kernel maintainer Christoph Hellwig (who had earlier likened the mixing of Rust and C to cancer). Three days later Hellwig reiterated his position again on the Linux kernel mailing list: "Every additional bit that another language creeps in drastically reduces the maintainability of the kernel as an integrated project. The only reason Linux managed to survive so long is by not having internal boundaries, and adding another language completely breaks this. You might not like my answer, but I will do everything I can do to stop this. This is NOT because I hate Rust. While not my favourite language it's definitively one of the best new ones and I encourage people to use it for new projects where it fits. I do not want it anywhere near a huge C code base that I need to maintain."
But the article also notes that Google "has been a staunch supporter of adding Rust to the kernel for Linux running in its Android phones." The use of Rust in the kernel is seen as a way to avoid memory vulnerabilities associated with C and C++ code and to add more stability to the Android OS. "Google's wanting to replace C code with Rust represents a small piece of the kernel but it would have a huge impact since we are talking about billions of phones," Ojeda told me after his talk.

In addition to Google, Rust adoption and enthusiasm for it is increasing as Rust gets more architectural support and as "maintainers become more comfortable with it," Ojeda told me. "Maintainers have already told me that if they could, then they would start writing Rust now," Ojeda said. "If they could drop C, they would do it...."

Amid the controversy, there has been a steady stream of vocal support for Ojeda. Much of his discussion also covered statements given by advocates for Rust in the kernel, ranging from lead developers of the kernel and including Linux creator Linus Torvalds himself to technology leads from Red Hat, Samsung, Google, Microsoft and others.

An anonymous reader shares a report: Users are now receiving notifications regarding their Microsoft 365 subscriptions and must take action if they wish to avoid Copilot and its extra charges.

The email from Microsoft warns that the cost of a 365 Personal Subscription will jump, however, there is no need to worry -- Microsoft knows what's best and will increase your payment in return for all those AI-powered Copilot services it knows you want.

We noted the upcoming increases last month and how users could turn off the generative AI assistant. At the time, Microsoft said users would be able to switch to plans without Copilot. However, unless a user takes action, the price they pay for their "Current Subscription" will increase, and AI-powered delights will be added to their plan.

The Entertainment Software Association is launching a new gaming event to replace E3, which was permanently canceled in 2023. According to Engadget, the new event is called iicon (short for "interactive innovation conference") and will feature many of the same major gaming companies that once participated in E3. "Sony, Nintendo, Microsoft, Disney, EA, Epic Games, Ubisoft, Square Enix, Take Two Interactive, Amazon Games and Warner Bros. Games are all named as participants." From the report: [T]he announcements on social media promote iicon as being for "visionaries," "changemakers" and "innovators," so our best guess is that this event will swing more toward the corporate side of gaming where people might use that language unironically. If that's the case, this won't really be a replacement for the heyday of E3, when studios big and small would showcase their upcoming projects and drop internet-breaking surprises. Instead, the inaugural event in April 2026 sounds like it will focus more on moving the needle, brand alignments and synergy.

A heated dispute has erupted in the Linux kernel community over the integration of Rust code, with kernel maintainer Christoph Hellwig likening multiple programming languages to "cancer" for the project's maintainability. The conflict centers on a proposed patch enabling Rust-written device drivers to access the kernel's DMA API, which Hellwig strongly opposed. While the dispute isn't about Rust itself, Hellwig argues that maintaining cross-language codebases severely compromises Linux's integrated nature. From a report: "Don't force me to deal with your shiny language of the day," he [Hellwig] wrote. "Maintaining multi-language projects is a pain I have no interest in dealing with. If you want to use something that's not C, be that assembly or Rust, you write to C interfaces and deal with the impedance mismatch yourself as far as I'm concerned." This resistance follows the September departure of Microsoft engineer Wedson Almeida Filho from the Rust for Linux project, citing "nontechnical nonsense."

Microsoft will charge commercial customers $61 per device in the first year to continue receiving Windows 10 security updates after support ends, The Register wrote in a PSA note Wednesday, citing text, with costs doubling each subsequent year for up to three years.

Organizations can't skip initial years to save money, as the updates are cumulative. Some users may avoid fees if they connect Windows 10 endpoints to Windows 365 Cloud PCs. The program also covers Windows 10 virtual machines running on Windows 365 or Azure Virtual Desktop for three years with an active Windows 365 subscription.

Google parent Alphabet plans to spend $75 billion on capital expenditures in 2025, up from $52.5 billion last year, as it races to compete with Microsoft and Meta in AI infrastructure. CNBC: On its earnings call, Alphabet said it expects $16 billion to $18 billion of those expenses to come in the first quarter. Overall, the expenditures will go toward "technical infrastructure, primarily for servers, followed by data centers and networking," finance chief Anat Ashkenazi said.

[...] Alphabet and its megacap tech rivals are rushing to build out their data centers with next-generation AI infrastructure, packed with Nvidia's graphics processing units, or GPUs. Last month, Meta said it plans to invest $60 billion to $65 billion this year as part of its AI push. Microsoft has committed to $80 billion in AI-related capital expenditures in its current fiscal year.

Microsoft has intensified efforts to block unsupported Windows 11 installations, removing documentation about bypassing system requirements and flagging third-party workaround tools as potential malware. The move comes as Windows 10 approaches end of support in October 2025, when users must either continue without updates, upgrade to Windows 11, or purchase new hardware compatible with Windows 11's TPM 2.0 requirement.

Microsoft Defender now identifies Flyby11, a popular tool for installing Windows 11 on incompatible devices, as "PUA:Win32/Patcher." Users are also reporting that unsupported Windows 11 installations are already facing restrictions, with some machines unable to receive major updates. Microsoft has also removed text from its "Ways to install Windows 11" page that had provided instructions for bypassing TPM 2.0 requirements through registry key modifications. The removed section included technical details for users who acknowledged and accepted the risks of installing Windows 11 on unsupported hardware.

New submitter mastazi writes: In his latest post, veteran Microsoft developer Raymond Chen reflects on what it means living in a world where you might need to reboot your toothbrush, or perform a firmware update to your shoes!

A new update is being rolled out to Windows 11 insiders (Build 26120.3073) that introduces a Copilot button in Microsoft Paint. PCWorld reports: Clicking the Copilot button will expand a drop-down menu with all the generative AI features: Cocreator and Image Creator (AI art based on what you've drawn or text prompts), Generative Erase (AI removal of unwanted stuff from images), and Remove Background. Note that these generative AI features have been in Microsoft Paint for some time, but this quick-access Copilot button is a nice time-saver and productivity booster if you use them a lot.

An anonymous reader quotes a report from 404 Media: The Air Force Research Laboratory (AFRL), whose tagline is "Win the Fight," has paid more than a hundred thousand dollars to a company that is providing generative AI services to other parts of the Department of Defense. But the AFRL refused to say what exactly the point of the research was, and provided page after page of entirely blacked out, redacted documents in response to a Freedom of Information Act (FOIA) request from 404 Media related to the contract. [...] "Ask Sage: Generative AI Acquisition Accelerator," a December 2023 procurement record reads, with no additional information on the intended use case. The Air Force paid $109,490 to Ask Sage, the record says.

Ask Sage is a company focused on providing generative AI to the government. In September the company announced that the Army was implementing Ask Sage's tools. In October it achieved "IL5" authorization, a DoD term for the necessary steps to protect unclassified information to a certain standard. 404 Media made an account on the Ask Sage website. After logging in, the site presents a list of the models available through Ask Sage. Essentially, they include every major model made by well-known AI companies and open source ones. Open AI's GPT-4o and DALL-E-3; Anthropic's Claude 3.5; and Google's Gemini are all included. The company also recently added the Chinese-developed DeepSeek R1, but includes a disclaimer. "WARNING. DO NOT USE THIS MODEL WITH SENSITIVE DATA. THIS MODEL IS BIASED, WITH TIES TO THE CCP [Chinese Communist Party]," it reads. Ask Sage is a way for government employees to access and use AI models in a more secure way. But only some of the models in the tool are listed by Ask Sage as being "compliant" with or "capable" of handling sensitive data.

[...] [T]he Air Force declined to provide any real specifics on what it paid Ask Sage for. 404 Media requested all procurement records related to the Ask Sage contract. Instead, the Air Force provided a 19 page presentation which seemingly would have explained the purpose of the test, while redacting 18 of the pages. The only available page said "Ask Sage, Inc. will explore the utilization of Ask Sage by acquisition Airmen with the DAF for Innovative Defense-Related Dual Purpose Technologies relating to the mission of exploring LLMs for DAF use while exploring anticipated benefits, clearly define needed solution adaptations, and define clear milestones and acceptance criteria for Phase II efforts."

AI startup Anthropic has demonstrated a new technique to prevent users from eliciting harmful content from its models, as leading tech groups including Microsoft and Meta race to find ways that protect against dangers posed by the cutting-edge technology. From a report: In a paper released on Monday, the San Francisco-based startup outlined a new system called "constitutional classifiers." It is a model that acts as a protective layer on top of large language models such as the one that powers Anthropic's Claude chatbot, which can monitor both inputs and outputs for harmful content.

The development by Anthropic, which is in talks to raise $2 billion at a $60 billion valuation, comes amid growing industry concern over "jailbreaking" -- attempts to manipulate AI models into generating illegal or dangerous information, such as producing instructions to build chemical weapons. Other companies are also racing to deploy measures to protect against the practice, in moves that could help them avoid regulatory scrutiny while convincing businesses to adopt AI models safely. Microsoft introduced "prompt shields" last March, while Meta introduced a prompt guard model in July last year, which researchers swiftly found ways to bypass but have since been fixed.

In 2023, Microsoft began including a free VPN feature in its "Microsoft Defender" security app for all Microsoft 365 subscribers ("Personal" and "Family"). Originally Microsoft had "called it a privacy protection feature," writes the blog Windows Central, "designed to let you access sensitive data on the web via a VPN tunnel." But.... Unfortunately, Microsoft has now announced that it's killing the feature later this month, only a couple of years after it first debuted...

To add insult to injury, this announcement comes just days after Microsoft increased subscription prices across the board. Both Personal and Family subscriptions went up by three dollars a month, which the company says is the first price hike Microsoft 365 has seen in over a decade. The increased price does now include Microsoft 365 Copilot, which adds AI features to Word, PowerPoint, Excel, and others.

However, it also comes with the removal of the free VPN in Microsoft Defender, which I've found to be much more useful so far.

Friday TechCrunch reported that OpenAI "used the subreddit, r/ChangeMyView to create a test for measuring the persuasive abilities of its AI reasoning models." The company revealed this in a system card — a document outlining how an AI system works — that was released along with its new "reasoning" model, o3-mini, on Friday.... OpenAI says it collects user posts from r/ChangeMyView and asks its AI models to write replies, in a closed environment, that would change the Reddit user's mind on a subject. The company then shows the responses to testers, who assess how persuasive the argument is, and finally OpenAI compares the AI models' responses to human replies for that same post.

The ChatGPT-maker has a content-licensing deal with Reddit that allows OpenAI to train on posts from Reddit users and display these posts within its products. We don't know what OpenAI pays for this content, but Google reportedly pays Reddit $60 million a year under a similar deal. However, OpenAI tells TechCrunch the ChangeMyView-based evaluation is unrelated to its Reddit deal. It's unclear how OpenAI accessed the subreddit's data, and the company says it has no plans to release this evaluation to the public...

The goal for OpenAI is not to create hyper-persuasive AI models but instead to ensure AI models don't get too persuasive. Reasoning models have become quite good at persuasion and deception, so OpenAI has developed new evaluations and safeguards to address it.
Reddit's "ChangeMyView" subreddit has 3.8 million human subscribers, making it a valuable source of real human interactions, according to the article. And it adds one more telling anecdote.

"Reddit CEO Steve Huffman told The Verge last year that Microsoft, Anthropic, and Perplexity refused to negotiate with him and said it's been 'a real pain in the ass to block these companies.'"