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The budget bill opens the floodgates for state surveillance tech and bad AI

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Hello out there,

Another week, another fusillade of grim news, at least stateside here. Hope folks can take the 4th of July holiday weekend to recharge and get out to the beach or the lake or wherever. I’m certainly going to. In fact, I’m embarking on a long-planned family trip—I have a draft of a piece that’s in decent shape that I may try to schedule for next week, but if I don’t wrap it in time, hope everyone can cut me some slack for taking the time off. I may take inspiration from what my pals at 404 Media did this week and log all the way off. And speaking of family: My 9 year-old son just recommended a book to me for the first time. He brought me “Dog Man: The Scarlet Shredder” and said “dad, I think you’ll like this, it’s about an AI army that tries to take over the world and the good guys stop them.” What can I say? He gets me.

Thanks as always to everyone who reads and supports this work—and an extra-massive thanks to everyone who chips in a little each month so I can keep the lights on. You make it possible for me to do things like take some days off with the fam. If you too would like to make such things possible, and you’re able, consider upgrading to a paid subscription so I can continue training the next generation of AI critics. Cheers, and onwards.

So the House of Representatives has passed the big bill, which means it’s headed to Trump’s desk where he will adorn it with a loping signature and smile for a photo op like he’s at the grand opening of a used car lot. Thanks to said bill, tax cuts for the rich will be extended and made permanent, 12 million Americans will be kicked off their insurance, food assistance programs will be gutted, and ICE and other federal law enforcement agencies will be given many billions of dollars. (The smallest of comforts is knowing that the 10-year AI law ban once lodged in it is dead.)

The bill allocates $45 billion for “immigration detention capacity,” $31 billion to fund ICE operations, $13 billion for state and local grants and $6.3 for “border surveillance technology.” There’s also $66 billion for Customs and Border Patrol (CBP), for personnel and digital infrastructure.

There is, in other words, a record-breaking store of federal funds dedicated to policing, detaining, and deporting people who live in this country. As has widely been pointed out, this bill makes ICE the single largest federal law enforcement agency in the country by a significant margin. Aaron Reichlin-Melnick, a senior fellow at the American Immigration Council notes that ICE now has “more money per year at its disposal over the next four years than the budgets of the FBI, DEA, ATF, US Marshals, and Bureau of Prisons combined.”

And here is one thing that you can bet with 100% certitude that those agencies will do with that money: Purchase high-tech “AI-powered” systems for surveilling, monitoring, and tracking the nation’s population, in the name of ferreting out non-citizens.

The betting part is cheating a little bit, because ICE and CBP et al already have large contracts with tech companies like Palantir, Anduril, and Cellebrite to do exactly that. But this budget bill has opened the floodgates in a way that the tech companies willing to operate in this space have only dreamed of. With tens of billions of dollars to spend by 2029, when much of the funding is to be cut off—and the Trump administration closer than ever to Silicon Valley—I think we can expect to see a good deal of it invested in AI and surveillance systems whose manufacturers promise to expedite and accelerate Trump’s deportation program.

In fact, that’s already what’s happening.

On the same day that news broke of the budget bill’s passage, WIRED’s Caroline Haskins published a story about how the CBP “is asking tech companies to pitch digital forensics tools that are designed to process and analyze text messages, pictures, videos, and contacts from seized phones, laptops, and other devices at the United States border.”

There’s more:

The agency said in a federal registry listing that the tools it’s seeking must have very specific capabilities, such as the ability to find a “hidden language” in a person’s text messages; identify specific objects, “like a red tricycle,” across different videos; access chats in encrypted messaging apps; and “find patterns” in large datasets for “intel generation.” The listing was first posted on June 20 and updated on July 1.

CBP has been using Cellebrite to extract and analyze data from devices since 2008. But the agency said that it wants to “expand” and modernize its digital forensics program. Last year, CBP claims, it did searches on more than 47,000 electronic devices—which is slightly higher than the approximately 41,500 devices it searched in 2023 but a dramatic rise from 2015, when it searched just more than 8,500 devices.

With $66 billion in funding, expect the CBP to be able to scan a lot more devices than 50,000 a year.

Over at Tech Policy Press, Jai Dulani highlights how the bill is a gift to big tech:

This budget reveals the intersection at which the anti-immigrant Right and the tech Right converge. Under the version of the bill headed to the president’s desk, US Customs and Border Protection’s (CBP) 2024 budget of $23 billion would nearly triple. Some portion of this supplemental funding, which is estimated to exceed $60 billion, would result in bigger contracts to surveillance technology corporations. An additional $2.8 billion is allocated for “other surveillance technologies” along the southwest, northern, and maritime borders. This may include an expansion of the “surveillance towers” operated by Anduril Industries. Anduril was founded by Trump supporter Palmer Luckey, who has raked in billions of dollars worth of contracts since Trump took office.

Some $700 million is earmarked for ICE’s “information technology investments to support enforcement and removal operations,” Dulani notes—the kind of contracts that have been held by Peter Thiel and Joe Lonsdale’s (both ardent Trump supporters) Palantir through the last two administrations. Dulani continues:

The bill provides $6.2 billion for border technology and screening, which includes the deployment of biometric technology. Information derived from facial recognition, iris scans, and DNA will be collected and fed into DHS’ centralized biometric repository, the Automated Biometric Identification System (IDENT). IDENT is accessed not only by ICE, but also the Department of Justice (DOJ) and state and local law enforcement. This data will be used for tracking, profiling, and policing, despite an abundance of documentation of the ways in which this technology does not work; it infamously misidentifies people, especially people of color, leading to wrongful arrests and detentions.

These investitures will necessarily expand the surveillance of *everyone* not just migrants, and that immigration surveillance is just one piece of the pie. The Department of Defense stands to receive its biggest budget in history, and may ultimately wind up with more than $1 trillion. Dulani concludes that “this bill makes one thing crystal clear: corporate-state collusion is accelerating, threatening to fully convert the US into an authoritarian state.”

And Silicon Valley companies are playing a central role. Google runs AI and cloud services to the US military. OpenAI inked a $200 million defense contract just weeks ago. Executives at Meta, OpenAI, and Palantir have officially enlisted in the US Army as part of its innovation initiative. Anthropic, Palantir, and Amazon partnered to sell AI tools to the federal government for intelligence and defense operations. The list goes on.

Ten years ago, any of those items would have caused some blowback and even outrage—Google faced protests and open revolt among its employees when it announced that it was becoming a defense contractor in 2018, during the first Trump term. Now, big tech is open about collaborating with an administration that is building out state capacity for surveillance, policing, and mass deportation. Most gave money to Trump’s inauguration fund, they’ve paid personal visits to Mar-A-Lago, they campaigned to pass a bill that would have banned states from legislating or regulating their AI products.

We can only begin to imagine the new scope of state-sponsored AI surveillance tools and inter-agency databases and facial recognition technologies that this new budgetary largesse, and a Silicon Valley unafraid of capitalizing on it, will beget. One slim consolation is that a lot of them will be useless. Many new contracts will go to over-promising opportunists and grifters who spin up companies and divisions to get in on the budgetary gold rush. Many projects will suffer rampant dysfunction and mismanagement. Many won’t get off the ground. Many of the AI tools simply won’t work as advertised, in the same ways that many AI tools do not work as advertised in many other fields and capacities.

But this is the smallest consolation. As readers of this newsletter know, it often will not matter whether AI or automation tools work well or at all—they nonetheless can be used to justify more expansive dragnets to scoop up, administer, and weaponize our data and more aggressive intrusions into our daily lives. They will offer their administrators an avenue through which to dodge accountability; ‘it was not the state that accidentally flagged someone for deportation, it was the AI.’ And so on.

I think it’s not hyperbole to say that what we’re witnessing is a radical restructuring of the American state. DOGE’s hollowing out of nonpartisan civil servants, the administration’s attacks on universities, and the wealth transfer are severe enough, but the formation of a new and extraordinarily financed paramilitary force, the erection of detention centers for migrants on US soil, the drive to “de-naturalize” US citizens; these are new authoritarian frontiers not so vigorously explored ever in my lifetime. And the Silicon Valley giants, which, I might add, have spent the last decades collecting and storing data on every user in the nation, are demonstrating enthusiasm for abetting the project. The floodgates are open.

I’m a talking head in this short More Perfect Union documentary about how Silicon Valley is using AI to concentrate power, along with my colleague at AI Now, Sarah Myers West, and some other very smart folks. It’s a good doc, and very much worth watching in full:

Thanks to everyone who has sent in more AI Killed My Jobs stories—so many good ones. I’m narrowing down which industry or profession(s) to do next, and it’s tough, for a lot of reasons. But seriously, really appreciate everyone’s candor, wisdom, and perspective. Keep them coming; address is AIKilledMyJob@pm.me.

Expect the next installment in a couple weeks. Oh and keep an eye out for an abridged version of the last one that the Guardian is aiming to run next week. They’re co-publishing the piece, which should help get more eyes on everyone’s stories, and further spread the word about what management, executives, and their AI initiatives are doing to workers in the tech world—and to the industry in general.

Okay okay, That’s it for now—see you next week, or the week after, if I run out of gas. Hang in there everyone, and hammers up.



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AI Technology-Focused Training Campaigns : Raspberry Pi Foundation

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The Raspberry Pi Foundation has issued a compelling report advocating for sustained emphasis on coding education despite the rapid advancement of AI technologies. The educational charity challenges emerging arguments that AI’s growing capability to generate code diminishes the need for human programming skills, warning against potential deprioritization of computer science curricula in schools.

The Raspberry Pi Foundation’s analysis presents coding as not merely a vocational skill but a fundamental literacy that develops critical thinking, problem-solving abilities, and technological agency — competencies argued to be increasingly vital as AI systems permeate all aspects of society. The foundation emphasizes that while AI may automate certain technical tasks, human oversight remains essential for ensuring the safety, ethics, and contextual relevance of computer-generated solutions.

For educators, parents, and policymakers, this report provides timely insights into preparing younger generations for an AI-integrated future.

Image Credit: Raspberry Pi Foundation



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Yum China Goes High-Tech: KFC and Pizza Hut Boost Efficiency with AI!

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AI dishes up savings and smiles at KFC and Pizza Hut

Last updated:

Edited By

Mackenzie Ferguson

AI Tools Researcher & Implementation Consultant

Yum China, the operator of popular fast-food franchises like KFC and Pizza Hut, is diving into the AI world to enhance efficiency and profitability. The company is leveraging AI technology to optimize everything from supply chain processes to in-store operations. As a result, customers can expect faster service and more personalized experiences. This tech rollout represents a significant move towards incorporating cutting-edge technology into everyday business operations.

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Background and Context

Yum China, the operator of well-known fast-food chains such as KFC and Pizza Hut, is leveraging artificial intelligence to enhance efficiency and drive profitability in its operations. By incorporating AI technologies, Yum China aims to streamline processes and optimise various aspects of its business strategies. This move not only highlights the company’s commitment to innovation but also its adaptability in an ever-evolving business landscape. For more details on this initiative, you can check the original source here.

In a rapidly changing market, such technological advancements are indispensable for businesses aiming to stay competitive. Yum China’s integration of AI is a strategic move to not only increase operational efficiency but also enhance customer experience, allowing the company to better respond to consumer needs and preferences. This adoption of AI showcases a growing trend among major corporations to harness technology for maintaining relevance and achieving business goals in a digital age.

The initiative by Yum China to embrace AI technologies is also reflective of the broader shift within the restaurant industry towards automation and data-driven decision-making. As companies look to streamline operations and improve margins, artificial intelligence offers a pathway to achieve these objectives. This transformation is crucial for building resilience against market fluctuations and for ensuring long-term sustainability of business models.

Summary of the Article

Yum China, the operator of fast-food chains KFC and Pizza Hut, is increasingly integrating artificial intelligence (AI) into its operations as part of a strategy to enhance efficiency and profitability. The adoption of AI technologies by Yum China is a significant move in the restaurant industry, aiming to streamline processes and improve customer service dynamics. By leveraging AI, the company can not only predict customer preferences more accurately but also manage supply chains more effectively, ensure food quality, and potentially increase sales figures. This strategic embrace of AI underscores Yum China’s commitment to staying ahead in a competitive market landscape where technological adaptation is crucial for business success.

Related Events

The recent initiatives undertaken by Yum China, the operator of KFC and Pizza Hut, in embracing AI technologies have sparked a series of related events across the business landscape in China. As highlighted in their recent strategies, the integration of AI is not merely about enhancing operational efficiency but also about revolutionizing customer experience. This shift is setting a precedent for other major players in the fast-food industry, encouraging them to explore similar technological advancements.

In response to Yum China’s adoption of AI, various technology firms in China are collaborating with fast-food chains to offer AI solutions tailored to the food and beverage sector. This burgeoning collaboration marks a significant trend in tech-driven partnerships aimed at bringing innovation to everyday consumer experiences. Such alliances are fostering a new era where technology and gastronomy intersect to redefine dining experiences.

Furthermore, this movement is influencing policy discussions at a governmental level, where the focus is increasingly on supporting AI development across different industries. The Chinese government’s enthusiasm for AI as a tool for modernization and efficiency is further emphasized by such corporate moves, thereby reinforcing national goals for technological advancement and self-reliance.

The ripple effects of Yum China’s AI integration are also evident in academic circles, where institutions are emphasizing AI research geared towards practical applications in commercial settings. This academic interest not only fuels future innovations but also ensures a steady supply of skilled professionals ready to meet the demands of a tech-driven economy. In essence, Yum China’s AI strategies are not just operational choices but are contributing to wider societal and economic shifts.

Expert Opinions

In the rapidly evolving landscape of the restaurant industry, particularly in China, expert opinions highlight significant opportunities for leveraging technology to enhance operational efficiency and profitability. Yum China, the operator behind fast-food giants KFC and Pizza Hut, is at the forefront of this transformation. As noted by industry analysts, the company’s strategic integration of AI solutions not only streamlines operations but also personalizes customer experiences. This move is seen as a response to the competitive market pressures and a shift towards more digital-savvy consumer preferences.

Public Reactions

The integration of AI by Yum China, the operator of KFC and Pizza Hut in China, has sparked varied public reactions. Many customers have expressed excitement about the increased efficiency and improved service that AI can bring to their dining experience. Some diners appreciate the novelty and technological advancement, which they believe could streamline operations and enhance their overall experience at these popular food chains.

However, not all reactions have been positive. Some consumers have voiced concerns about privacy and data security, as AI systems often require extensive data collection to function effectively. These customers are wary of how their information might be used or shared and are calling for clearer policies and assurances from Yum China regarding data protection.

Moreover, there is a segment of the public that is apprehensive about the potential impact of AI on employment. With AI taking on tasks traditionally handled by human workers, concerns about job displacement have arisen, leading to discussions on how Yum China plans to balance technology integration with human resource management. This sentiment is shared by many globally, reflecting a broader anxiety about the rise of automation in various industries.

Overall, while the use of AI in Yum China’s operations presents exciting opportunities for innovation and growth, it also highlights significant issues that resonate with a global audience. For an in-depth look at Yum China’s AI strategy and public reaction, the South China Morning Post provides more insights here.

Future Implications

The integration of artificial intelligence (AI) into business operations is increasingly transforming industries across the globe. Yum China, the operator of fast-food giants like KFC and Pizza Hut, is a prime example of this trend. By leveraging AI to streamline their processes, they are setting a precedent for other companies to follow. This move is expected to significantly enhance their operational efficiency and profitability, as highlighted in a detailed article by the South China Morning Post.

Looking ahead, the adoption of AI by Yum China could have broader implications for the fast-food industry both in China and globally. As other companies observe Yum China’s successful integration of AI technologies, there may be a ripple effect, prompting more industry players to invest in AI solutions to remain competitive. This could lead to a revolution in customer service, supply chain management, and even menu personalization, driven by AI-driven insights.

Moreover, the shift towards AI can potentially reshape employment dynamics within the sector. While automation may reduce certain manual roles, it also opens up new opportunities for tech-savvy professionals who can develop, manage, and optimize these AI systems. This transformation necessitates a recalibration of workforce skills and continued education for employees to adapt to a tech-driven environment, as noted in discussions surrounding similar advancements.



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Hangzhou: China’s Emerging AI Powerhouse

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Hangzhou, the picturesque capital of Zhejiang Province, is quickly emerging as a key pillar in China’s artificial intelligence (AI) revolution. Once known primarily for its cultural heritage and as the headquarters of e-commerce giant Alibaba, the city is now transforming into a powerful AI hub, driven by visionary government policies, a dynamic startup ecosystem, cutting-edge academic institutions, and high levels of private and public investment. Its rapid evolution exemplifies China’s broader strategy to lead the global race in artificial intelligence.

Government Initiatives and Strategic Policy Support

A major driver behind Hangzhou’s AI rise is the strong backing of the Chinese government, both at national and provincial levels. The “Hangzhou AI Industry Chain High-Quality Development Action Plan” has set bold objectives: certifying more than 2,000 new high-tech enterprises, launching over 300 large-scale technological projects, and injecting an impressive 300 billion RMB (approx. US$40 billion) into innovation annually. This funding supports AI research, development of cutting-edge applications, infrastructure, and talent cultivation.

Further cementing Hangzhou’s AI ambitions is the revitalization of “Project Eagle,” a policy initiative that allocates 15% of industrial development funds to future industries, with AI being a priority. These initiatives are not only helping to establish Hangzhou as a hub of AI innovation but are also attracting domestic and international investors eager to tap into this growth.

The Rise of the “Six Little Dragons”

One of the most notable signs of Hangzhou’s AI success story is the emergence of six pioneering startups, collectively referred to as the “Six Little Dragons.” These companies represent the city’s growing diversity and sophistication in AI application:

DeepSeek – Known for its work in natural language processing and large language models.

Game Science – A game development firm leveraging AI in next-gen interactive experiences.

Unitree Robotics – Specializes in agile AI-powered robots for various industrial and consumer applications.

DEEP Robotics – Develops quadruped robots capable of complex navigation and movement, often used for security and research.

BrainCo – Focuses on brain-computer interface (BCI) technologies that merge neuroscience and machine learning.

Manycore Tech – A hardware and software AI solutions provider with strengths in chip design and high-performance computing.

These companies are not only rapidly scaling within China but are also attracting international attention for their technological advancements and commercialization potential. Their presence underscores Hangzhou’s strength in fostering both technical excellence and business scalability.

Academic Foundations and Skilled Talent Pipeline

Hangzhou’s AI ecosystem is further bolstered by a solid academic foundation. Zhejiang University, one of China’s top-tier institutions, plays a critical role in producing AI talent and thought leadership. The university houses cutting-edge research labs and has established partnerships with top tech firms for collaborative innovation.

Graduates from Zhejiang University and other local institutions often go on to found startups or take leadership roles in the AI industry. The close connection between academia and industry ensures a continuous exchange of ideas, innovation, and expertise, which is essential for sustained growth in emerging technologies like AI.

In addition, Hangzhou has invested in AI-focused education and vocational training programs to ensure that its workforce remains competitive. This comprehensive talent strategy allows the city to meet the growing demand for data scientists, machine learning engineers, and AI researchers.

Industry Collaboration and Corporate Investments

Beyond startups and academia, major corporate players are betting big on Hangzhou’s AI future. Most notably, Alibaba, headquartered in the city, has been at the forefront of this transformation. Under the leadership of Eddie Wu, the company has pledged to deepen its involvement in generative AI and has launched internal initiatives aimed at developing new AI products and services.

In parallel, Alibaba has worked to attract foreign capital to Hangzhou’s AI sector, especially in connection with the Six Little Dragons. Following Jack Ma’s involvement in a high-level business symposium with President Xi Jinping, Alibaba’s influence in shaping Hangzhou’s AI roadmap has only increased.

Other corporations and venture capital firms are also taking notice. Investment funds are flowing into AI development zones, incubators, and innovation labs across Hangzhou, helping to establish a robust support system for tech entrepreneurship and research.

Infrastructure, Challenges, and Long-Term Outlook

Despite these promising developments, Hangzhou faces several challenges that come with rapid growth. Talent retention remains a concern, as other Chinese cities like Beijing and Shenzhen compete for the same AI professionals. Furthermore, as AI technology demands powerful computing infrastructure, continued upgrades in data centers, power grids, and 5G connectivity are essential.

Additionally, navigating regulatory uncertainty and ensuring responsible AI development will be key for Hangzhou to maintain sustainable growth. The city must also remain agile in adapting to global shifts, including trade policies, technology standards, and geopolitical tensions that may impact international partnerships and supply chains.

Nonetheless, the city’s proactive governance, talent pool, and innovative momentum offer strong indicators that Hangzhou is well-positioned to become a global AI innovation hub. As China continues to push its national AI ambitions, Hangzhou stands out as a leading example of how a regional city can emerge as a technological powerhouse through visionary planning, strong public-private partnerships, and relentless innovation.



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