Boris Johnson
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In the wake of the news that U.K.-based AI startup Faculty has raised $42.5 million in a growth funding round, I teased out more from CEO and co-founder Marc Warner on what his plans are for the company.
Faculty seems to have an uncanny knack of winning U.K. government contracts, after helping Boris Johnson win his Vote Leave campaign and thus become prime minister. It’s even helping sort out the mess that Brexit has subsequently made of the fishing industry, problems with the NHS and telling global corporates like Red Bull and Virgin Media what to suggest to their customers. Meanwhile, it continues to hoover up PhD graduates at a rate of knots to work on its AI platform.
But, speaking to me over a call, Warner said the company no longer has plans to enter the political sphere again: “Never again. It’s very controversial. I don’t want to make out that I think politics is unethical. Trying to make the world better, in whatever dimension you can, is a good thing … But from our perspective, it was, you know, ‘noisy,’ and our goal as an organization, despite current appearances to the contrary, is not to spend tonnes of time talking about this stuff. We do believe this is an important technology that should be out there and should be in a broader set of hands than just the tech giants, who are already very good at it.”
On the investment, he said: “Fundamentally, the money is about doubling down on the U.K. first and then international expansion. Over the last seven years or so we have learned what it takes to do important AI, impactful AI, at scale. And we just don’t think that there’s actually much of it out there. Customers are rightly sometimes a bit skeptical, as there’s been hype around this stuff for years and years. We figured out a bunch of the real-world applications that go into making this work so that it actually delivers the value. And so, ultimately, the money is really just about being able to build out all of the pieces to do that incredibly well for our customers.”
He said Faculty would be staying firmly HQ’d in the U.K. to take advantage of the U.K.’s talent pool: “The U.K. is a wonderful place to do AI. It’s got brilliant universities, a very dynamic startup scene. It’s actually more diverse than San Francisco. There’s government, there’s finance, there are corporates, there’s less competition from the tech giants. There’s a bit more of a heterogeneous ecosystem. There’s no sense in which we’re thinking, ‘Right, that’s it, we’re up and out!’. We love working here, we want to make things better. We’ve put an enormous amount of effort into trying to help organizations like the government and the NHS, but also a bunch of U.K. corporates in trying to embrace this technology, so that’s still going to be a terrifically important part of our business.”
That said, Faculty plans to expand abroad: “We’re going to start looking further afield as well, and take all of the lessons we’ve learned to the U.S., and then later Europe.”
But does he think this funding round will help it get ahead of other potential rivals in the space? “We tend not to think too much in terms of rivals,” he says. “The next 20 years are going to be about building intelligence into the software that already exists. If you look at the global market cap of the software businesses out there, that’s enormous. If you start adding intelligence to that, the scale of the market is so large that it’s much more important to us that we can take this incredibly important technology and deploy it safely in ways that actually improve people’s lives. It could be making products cheaper or helping organizations make their services more efficient.”
If that’s the case, then does Faculty have any kind of ethics panel overseeing its work? “We have an internal ethics panel. We have a set of principles and if we think a project might violate those principles, it gets referred to that ethics panel. It’s randomly selected from across faculty. So we’re quite careful about the projects that we work on and don’t. But to be honest, the vast majority of stuff that’s going on is very vanilla. They are just clearly ‘good for the world’ projects. The vast majority of our work is doing good work for corporate clients to help them make their businesses that bit more efficient.”
I pressed him to expand on this issue of ethics and the potential for bias. He says Faculty “builds safety in from the start. Oddly enough, the reason I first got interested in AI was reading Nick Bostrom’s work about superintelligence and the importance of AI safety. And so from the very, very first fellowship [Faculty AI researchers are called Fellows] all the way back in 2014, we’ve taught the fellows about AI safety. Over time, as soon as we were able, we started contributing to the research field. So, we’ve published papers in all of the biggest computer science conferences Neurips, ICM, ICLR, on the topic of AI safety. How to make algorithms fair, private, robust and explainable. So these are a set of problems that we care a great deal about. And, I think, are generally ‘underdone’ in the wider ecosystem. Ultimately, there shouldn’t be a separation between performance and safety. There is a bit of a tendency in other companies to say, ‘Well, you can either have performance, or you can have safety.’ But of course, we know that’s not true. The cars today are faster and safer than the Model T Ford. So it’s a sort of a false dichotomy. We’ve invested a bunch of effort in both those capabilities, so we obviously want to be able to create a wonderful performance for the task at hand, but also to ensure that the algorithms are fair, private, robust and explainable wherever required.”
That also means, he says, that AI might not always be the “bogeyman” the phrase implies: “In some cases, it’s probably not a huge deal if you’re deciding whether to put a red jumper or a blue jumper at the top of your website. There are probably not huge ethical implications in that. But in other circumstances, of course, it’s critically important that the algorithms are safe and are known to be safe and are trusted by both the users and anyone else who encounters them. In a medical context, obviously, they need to be trusted by the doctors and the patients need to make sure they actually work. So we’re really at the forefront of deploying that stuff.”
Last year the Guardian reported that Faculty had won seven government contracts in 18 months. To what does he attribute this success? “Well, I mean, we lost an enormous number more! We are a tiny supplier to government. We do our best to do work that is valuable to them. We’ve worked for many, many years with people at the home office,” he tells me.
“Without wanting to go into too much detail, that 18 months stretches over multiple prime ministers. I was appointed to the AI Council under Theresa May. Any sort of insinuations on this are just obviously nonsense. But, at least historically, most of our work was in the private sector and that continues to be critically important for us as an organization. Over the last year, we’ve tried to step up and do our bit wherever we could for the public sector. It’s facing such a big, difficult situation around COVID, and we’re very proud of the things we’ve managed to accomplish with the NHS and the impact that we had on the decisions that senior people were able to undertake.”
Returning to the issue of politics I asked him if he thought — in the wake of events such as Brexit and the election of Donald Trump, which were both affected by AI-driven political campaigning — AI is too dangerous to be applied to that arena? He laughed: “It’s a funny old funny question… It’s a really odd way to phrase a question. AI is just a technology. Fundamentally, AI is just maths.”
I asked him if he thought the application of AI in politics had had an outsized or undue influence on the way that political parties have operated in the last few years: “I’m afraid that is beyond my knowledge,” he says. But does Faculty have regrets about working in the political sphere?
“I think we’re just focused on our work. It’s not that we have strong feelings, either way, it’s just that from our perspective, it’s much, much more interesting to be able to do the things that we care about, which is deploying AI in the real world. It’s a bit of a boring answer! But it is truly how we feel. It’s much more about doing the things we think are important, rather than judging what everyone else is doing.”
Lastly, we touched on the data science capabilities of the U.K. and what the new fundraising will allow the company to do.
He said: “We started an education program. We have roughly 10% of the U.K.’s PhDs in physics, maths, engineering, applying to the program. Roughly 400 or so people have been through that program and we plan to expand that further so that more and more people get the opportunity to start a career in data science. And then inside Faculty specifically, we think we’ll be able to create 400 new jobs in areas like software engineering, data science, product management. These are very exciting new possibilities for people to really become part of the technology revolution. I think there’s going to be a wonderful new energy in Faculty, and hopefully a positive small part in increasing the U.K. tech ecosystem.”
Warner comes across as sincere in his thoughts about the future of AI and is clearly enthusiastic about where Faculty can take the whole field next, both philosophically and practically. Will Faculty soon be challenging that other AI leviathan, DeepMind, for access to all those PhDs? There’s no doubt it will.
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UK startups concerned the country is about to leave the European Union in just a little over a month’s time with nothing agreed to ensure a smooth transition should point their eyes at this guide — put together by startup policy advocacy group, Coadec.
While a ‘no deal’ brexit is still not inevitable the chances of it happening have stepped up sharply in recent months as the clock winds down towards exit day with no withdrawal agreement in place. Such an outcome has major implications for technology businesses, given the cross-border nature of services startups tend to provide.
“With the UK potentially just over a month away from exiting the EU, no deal remains the default option,” warns Coadec. “We are clear that no deal would be disastrous for the startup community…but that doesn’t mean that it won’t happen. That’s why we have teamed up with the UK Tech Cluster Group & Tech Nation to put together this guidance for the startup community.”
Under current prime minister, Boris Johnson, the UK government has sharply dialled up the brexit rhetoric. Johnson has said — in typical flashy fashion — that he’d rather be “dead in a ditch” than ask for an extension to the October 31st deadline for agreeing a deal with the European Union.
He has also prorogued parliament — illegally — in an attempt to bypass parliamentary scrutiny, which he described in an internal memo as “a rigmarole“.
The prorogation was quashed by the Supreme Court. But since parliament resumed this week ministers have been refusing to clearly state whether the government will abide by a law it passed just before it got closed down — which requires the PM to ask the EU for an extension if he fails to secure a withdrawal deal before October 19.
Speculation is therefore rife over what political chicanery the government might seek to pull to wiggle out of complying with the law and crash the UK out regardless.
Former UK prime minister, John Major, gave a speech this week warning that such a move would be unforgivable. But there are no signs the government is rethinking its approach.
Johnson has been splashing public money on an advertising campaign that instructs the country to “Get ready for brexit” (such as the billboard pictured above). The government also claims to have substantially ramped up domestic preparations for a no deal exit.
While it’s possible this loud show of bullying bravado is a theatrical tactic to try to pressure the EU into shifting position on contested brexit issues (primarily the Irish back-stop) — so Johnson can grab a deal which could pass a vote in parliament — it’s also possible the government isn’t that interested in a deal, and just wants to deliver brexit “do or die”, as the PM has also put it.
Even if it’s theatrics it doesn’t mean the whole high stakes game of chicken might not backfire — resulting in the UK actually crashing out with nothing on Halloween. The only robust legal certainty is that without an extension to Article 50 the UK will indeed leave the EU on October 31, deal or no deal.
Given rising political turmoil in the UK combined with a hard and fast-approaching brexit deadline, startups are well advised to prepare for the worst — which means leaving the EU with no contingencies in place beyond those you’ve put in place yourself.
Coadec’s guide presents a concise overview of ten issues the policy advocacy group believes should be front of mind for startups and scaleups thinking about how to manage no deal risk.
The guide does not (and is not intended) to replace professional legal advice but it does cuts through a lot of the noise and fuzz around brexit — so it’s well worth a read, especially if you’re trying to get up to speed fast.
Top of their list is data flows — a major consideration for tech businesses that receive personal data from the EU or EEA.
“Startups will need to create contract-based legal structures to replace the free flows of data we took for granted under the European system,” Coadec writes, noting that the UK’s data protection agency is advising startups to look at model clauses, binding corporate rules, codes of conduct or certification mechanisms as alternatives for their data flows.
“These complicated legal structures have typically been the preserve of larger businesses and corporations, not startups and scaleups — so will take time to put in place,” it warns. “If you haven’t started preparations for your post-brexit data flows, they should be a priority now.”
Other issues the guide deals with include immigration & visas; taxation & VAT; and the impact of a no deal on specific pieces of EU legislation and strategy that are relevant to startups — such as the e-Commerce Directive and Digital Single Market — as well as related pieces of legislation (such as ePrivacy) that risk being caught in limbo by brexit as they’ve not yet been passed.
There’s also advice for startups that have .eu domain names, and for those who’ve received funding from the EU’s Horizon 2020 R&D fund, as well as links to relevant government resources.
The guide can be downloaded as a PDF here.
How is your startup preparing for brexit? What’s your biggest ‘no deal’ concern? How much is it costing you to manage brexit risk? Let us know by emailing tips@techcrunch.com
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Grab your economic zombie mask: A Halloween “no deal” Brexit is careening into view. New prime minister Boris Johnson has pledged that the country will leave the European Union on October 31 with or without a deal — “do or die” as he put it. A year earlier as the foreign secretary, he used an even more colorful phrase to skewer diplomatic concern about the impact of a hard Brexit on business — reportedly condensing his position to a pithy expletive: “Fuck business.”
It was only a few years ago during the summer of 2016, following the shock result of the UK’s in/out EU referendum, the government’s aspiration was to leave in a “smooth and orderly” manner as the prelude to a “close and special” future trading partnership, as then PM Theresa May put it. A withdrawal deal was negotiated but repeatedly rejected by parliament. The PM herself was next to be despatched.
Now, here we are. The U.K. has arrived at a political impasse in which the nation is coasting toward a Brexit cliff edge. We’re at the brink here, with domestic politics turned upside down, because “no deal” is the only leverage left for “do or die” brexiteers that parliament can’t easily block.
Ironic because there’s no majority in parliament for “no deal.” But the end of the Article 50 extension period represents a legal default — a hard deadline that means the U.K. will soon fall out of the EU unless additional action is taken. Of course time itself can’t be made to grind to a halt. So “no deal” is the easy option for a government that’s made doing anything else to sort Brexit really really hard.
After three full years of Brexit uncertainty, the upshot for U.K. business is there’s no end in sight to even the known unknowns. And now a clutch of unknown unknowns seems set to pounce come Halloween when the country steps into the chaos of leaving with nada, as the current government says it must.
So how is the U.K. tech industry managing the risk of a chaotic exit from the European Union? The prevailing view among investors about founders is that Brexit means uncertain business as usual. “Resilience is the mother of entrepreneurship!” was the almost glib response of one VC asked how founders are coping.
“This is no worse than the existential dread that most founders feel every day about something or other,” said another, dubbing Brexit “just an enormous distraction.” And while he said the vast majority of founders in the firm’s portfolio would rather the whole thing was cancelled — “most realize it’s not going to be so they just want to get on.”
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