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Why Booz Allen’s CTO used generative AI to make a deepfake video of himself

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To ensure Booz Allen Hamilton’s global workforce of more than 35,000 can guard against deepfakes and avoid potential financial fraud, the consulting firm’s chief technology officer, Bill Vass, embraced an unconventional approach.

He created a deepfake video of himself.

This week, Vass will promote a 30-second deepfake video where “he” briefly speaks to the camera to show Booz Allen employees and other workers how easy it is to create fake audio and video content. Vass contends that generative AI technology has gotten so advanced that a popular refrain, “believe none of what you hear and half of what you see,” isn’t cynical enough.

“You’re at a point with AI and these deepfakes where you are not going to be able to believe any video you see or audio you hear,” Vass says. The deepfake video of Vass will be promoted internally at Booz Allen so that employees “better understand the capabilities and how strong a deepfake can be,” he adds.

Booz Allen has previously trained workers to spot deepfakes by showing videos of celebrities, who tend to be easy targets given the vast prominence of their likeness in the public domain. But there are also hours upon hours of video and audio of Vass uploaded to YouTube, and it only takes a couple of minutes of content for criminals to make a deepfake that can trick workers.

The stunt deepfake video of Vass was created by Booz Allen in partnership with Reality Defender, a deepfake detection company that sells tools to identify AI-generated content within seconds to clients including IBM, Visa, and Comcast. Last year, Reality Defender expanded its Series A funding round, raising $33 million in total capital (from investors including Booz Allen’s venture capital arm) to further develop the startup’s technologies.

Vendors like Reality Defender are betting that processes for authenticating audio and video interactions will become as essential as other cybersecurity tactics like multi-factor authentication, a two-step verification process, and zero-trust authentication, which requires continuous verification of identity.

Alex Lisle, who became CTO at Reality Defender last week, says there is a growing list of risks CEOs and other C-suite executives must confront when it comes to deepfakes. While much of the attention is on social engineering cyberattacks that prey on workers, cybercriminals can also use AI to craft audio files where a CFO “announces” manipulated earnings results, which could move the stock. AI videos can be generated that depict a CEO issuing a fake public statement that could hurt a brand’s reputation.

“Unlike other emerging cybercriminal threats, which require an incredible amount of technical knowledge and foresight, this doesn’t,” Lisle says. Deepfakes, he adds, can be done with “off-the-shelf software and a basic knowledge of technology.”

Top executives at WPP, Accenture, and Ferrari have been targeted by deepfakes, though in the corporate world, the banking sector is a favored target. Half of finance professionals in the U.S. and U.K. have reported that they’ve experienced an attempted deepfake scanning attack. Accounting giant Deloitte has estimated that generative AI-enabled fraud losses could reach $40 billion by 2027, a compound annual growth rate of 32% from 2023’s level.

The cautionary tale that security executives frequently cite is a Hong Kong incident where a financial worker was fooled into paying $25 million to fraudsters that used a deepfake video call to impersonate the company’s chief financial officer. To avoid these types of scams, chief information security officers and other technologists have been investing in defensive systems and better employee training to detect attacks.

Vass, who joined Booz Allen in 2024 after previously serving as VP of engineering at Amazon Web Services, says social engineering attacks would even trip up employees at the Pentagon, where he worked as a senior executive in the office of the CIO in the late 1990s. The Department of Defense would hire external parties to attempt attacks, and Vass says it always amazed him how many times those teams would succeed, even after all of the training.

He recalls another incident at a startup he led, where a former employee sent a deepfake email that was purportedly sent from Vass, while also pretending to loop in the CFO. The note was sent to the procurement office, and a worker ended up processing a fake $25,000 invoice payment.

Generative AI, Vass adds, will only make cases like these all that more common. “People are going to have to learn to change their psyche to be more skeptical.”

John Kell

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NEWS PACKETS

Samsung, Tesla ink $16.5 billion AI chips deal. Samsung has agreed to make AI chips for electric vehicle manufacturer Tesla under a multiyear deal that is billed as a major win for the South Korean electronics giant’s U.S. foundry business. Tesla CEO Elon Musk confirmed on his social media platform X that Samsung’s new Texas semiconductor plant would be dedicated to making the auto company’s next-generation AI6 chip, which is expected to be used in humanoid robots, self-driving cars, and AI data centers, reports WSJ. The win is huge for Samsung, which has lost ground in chip manufacturing, most notably to Taiwan Semiconductor Manufacturing Co., which holds roughly two-thirds of the global foundry market and reportedly still can’t meet all demand. Samsung’s investors cheered the news, adding billions to the company’s market value.

Anthropic in talks to more than double valuation to over $170 billion. Anthropic is in talks with numerous investors about raising as much as $5 billion in a funding round that would value the four-year-old AI developer at $170 billion, according to the Financial Times. Fortune, meanwhile, separately reports this week on a class-action lawsuit against Anthropic that could expose the AI company to billions in copyright damages for allegedly using pirated books to train its models. Anthropic didn’t immediately respond to Fortune’s request for comment.

Walmart is “all in” on AI agents. Retail behemoth Walmart last week rolled out the company’s vision for how AI agents will overhaul the way customers shop, the ways that corporate and store employees work, and how vendors sell and track their merchandise performance within the Walmart ecosystem. This range of four AI agents, displayed at a media event attended by Fortune, included a generative AI digital assistant named Sparky that can answer product questions for customers. There were also some internal agentic use cases that can accomplish mundane and repetitive tasks, which is where much of the focus on AI agents has been since companies started to embrace the technology in earnest earlier this year. In yet another sign of Walmart’s seriousness when it comes to AI, the Wall Street Journal reports of key hires, including Daniel Danker, an executive at Instacart, who will steer global AI acceleration, product, and design.

Microsoft-OpenAI contract talks advance. Bloomberg reports this week that Microsoft is in “advanced talks” to secure an agreement that would give the tech giant ongoing access to OpenAI’s technology. The new terms, people familiar with the matter say, would give Microsoft use of OpenAI’s latest models, including if the startup achieves its goal of building a more powerful artificial general intelligence (AGI), a theoretical concept in which an AI system would have capabilities that rival those of a human. The news outlet reports that the pair have been meeting regularly and that a deal could come together within a matter of weeks. Microsoft has already invested $13.75 billion into OpenAI, and these negotiations would also avoid losing access to the latter company’s technology before the end of the current deal terms, which is set to expire in 2030.

ADOPTION CURVE

Majority of business leaders believe agentic AI can manage entire business divisions. EY’s latest U.S. AI Pulse survey, released this week, found that 73% of the 500 U.S.-based decision-makers say they believe agentic AI, which can act autonomously and perform complex tasks with little-to-no human supervision, will “manage entire business units.” But the business community is still quite a bit away from making that level of automation a reality. The consulting firm also reports that 34% of senior leaders say their companies have already started to implement agentic AI technology, though it is only fully implemented at 14% of those organizations.

Dan Diasio, EY’s global consulting AI leader, tells Fortune that the firm’s clients are quite bullish on agentic AI’s potential, but that most still keep a human in the loop to monitor tasks. “The parts of transforming and changing the way the business operates around the technology—creating new jobs, creating new controls that can ensure the technology works responsibly—are still lagging the implementation,” Diasio says.

A big hurdle to overcome remains human change management. Sixty-four percent of senior leaders agreed that the fear of replacement, as opposed to augmentation with agentic AI, will stifle adoption. Yet only 24% said that employee resistance is one of the biggest barriers, as cybersecurity and data privacy concerns each ranked higher, at 35% and 30%, respectively.

Courtesy of EY

JOBS RADAR

Hiring:

Northwestern Mutual is seeking a VP, chief information security officer, based in Milwaukee. Posted salary range: $308K-$572K/year.

The Minneapolis Star Tribune is seeking a chief product and technology officer, based in Minneapolis. Posted salary: $300K/year.

Northeast Arc is seeking a chief information and technology officer, based in Danvers, Mass. Posted salary range: $155K-$175K/year.

Nebraska Department of Health and Human Services is seeking a CIO, based in Lincoln, Neb. Posted salary range: $150K-$200K/year.

Hired:

Norwegian Cruise Line appointed Daniel Henry to serve as EVP and chief digital and technology officer, where he will navigate the integration of the travel company’s IT and digital experience teams. Previously, he served as EVP and global CIO for fast-food giant McDonald’s and spent 17 years in various technology leadership roles at American Airlines, including as a VP of customer technology.

Fulton Bank named Kevin Gremer as chief operations and technology officer, joining the Mid-Atlantic regional bank to oversee the IT and operations teams. Since 2022, he has served as SVP and head of operations of banking and investment services at City National Bank, a subsidiary of Canadian bank RBC. He also has more than 20 years of management experience at Capital One.

CIQ announced the appointment of Peter Nelson as CTO, joining the software infrastructure firm after most recently serving as VP of engineering at Apple’s Claris software development subsidiary. Before that, he served as the chief product officer at headphones and speakers manufacturer Bowers & Wilkins.

Everon appointed Ibrahim Kassem as CTO, where he will oversee the development of the company’s commercial security, fire, and sprinkler safety systems. Previously, Kassem served as CIO at security company Stealth Monitoring, as SVP of IT at home and business security systems provider ADT, and as VP of IT at Protection 1 Security Solutions, which merged with ADT in 2016.

Candescent named Satheesh Ravala as CTO, joining the digital banking services provider after most recently serving as CTO at corporate-governance software company Diligent. He previously held senior leadership roles at financial services company Intercontinental Exchange (ICE) Mortgage Technology and mortgage software provider Ellie Mae.

Arch Insurance promoted David Maher to the role of CIO, effective immediately. In this role, Maher will lead the delivery of the global insurance company’s IT strategy and infrastructure. He joined Arch in 2024 as international head of delivery. Previously, he served as a head of engineering at Lloyds Banking Group and also held technology leadership roles at banking giants including Bank of America and Merrill Lynch.

InspereX appointed Ira Lehrman as CTO, where he will spearhead the financial technology company’s product roadmap. Lehrman joins InspereX from digital capital marketplace Clear Bid Global Markets, where he served as CTO. Previously, he held senior positions at fintech company Broadridge, investment manager Nuveen, and Merrill Lynch.



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AI labs like Meta, Deepseek, and Xai earned worst grades possible on an existential safety index

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A recent report card from an AI safety watchdog isn’t one that tech companies will want to stick on the fridge.

The Future of Life Institute’s latest AI safety index found that major AI labs fell short on most measures of AI responsibility, with few letter grades rising above a C. The org graded eight companies across categories like safety frameworks, risk assessment, and current harms.

Perhaps most glaring was the “existential safety” line, where companies scored Ds and Fs across the board. While many of these companies are explicitly chasing superintelligence, they lack a plan for safely managing it, according to Max Tegmark, MIT professor and president of the Future of Life Institute.

“Reviewers found this kind of jarring,” Tegmark told us.

The reviewers in question were a panel of AI academics and governance experts who examined publicly available material as well as survey responses submitted by five of the eight companies.

Anthropic, OpenAI, and GoogleDeepMind took the top three spots with an overall grade of C+ or C. Then came, in order, Elon Musk’s Xai, Z.ai, Meta, DeepSeek, and Alibaba, all of which got Ds or a D-.

Tegmark blames a lack of regulation that has meant the cutthroat competition of the AI race trumps safety precautions. California recently passed the first law that requires frontier AI companies to disclose safety information around catastrophic risks, and New York is currently within spitting distance as well. Hopes for federal legislation are dim, however.

“Companies have an incentive, even if they have the best intentions, to always rush out new products before the competitor does, as opposed to necessarily putting in a lot of time to make it safe,” Tegmark said.

In lieu of government-mandated standards, Tegmark said the industry has begun to take the group’s regularly released safety indexes more seriously; four of the five American companies now respond to its survey (Meta is the only holdout.) And companies have made some improvements over time, Tegmark said, mentioning Google’s transparency around its whistleblower policy as an example.

But real-life harms reported around issues like teen suicides that chatbots allegedly encouraged, inappropriate interactions with minors, and major cyberattacks have also raised the stakes of the discussion, he said.

“[They] have really made a lot of people realize that this isn’t the future we’re talking about—it’s now,” Tegmark said.

The Future of Life Institute recently enlisted public figures as diverse as Prince Harry and Meghan Markle, former Trump aide Steve Bannon, Apple co-founder Steve Wozniak, and rapper Will.i.am to sign a statement opposing work that could lead to superintelligence.

Tegmark said he would like to see something like “an FDA for AI where companies first have to convince experts that their models are safe before they can sell them.

“The AI industry is quite unique in that it’s the only industry in the US making powerful technology that’s less regulated than sandwiches—basically not regulated at all,” Tegmark said. “If someone says, ‘I want to open a new sandwich shop near Times Square,’ before you can sell the first sandwich, you need a health inspector to check your kitchen and make sure it’s not full of rats…If you instead say, ‘Oh no, I’m not going to sell any sandwiches. I’m just going to release superintelligence.’ OK! No need for any inspectors, no need to get any approvals for anything.”

“So the solution to this is very obvious,” Tegmark added. “You just stop this corporate welfare of giving AI companies exemptions that no other companies get.”

This report was originally published by Tech Brew.



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Hollywood writers say Warner takeover ‘must be blocked’

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Hollywood writers, producers, directors and theater owners voiced skepticism over Netflix Inc.’s proposed $82.7 billion takeover of Warner Bros. Discovery Inc.’s studio and streaming businesses, saying it threatens to undermine their interests.

The Writers Guild of America, which announced in October it would oppose any sale of Warner Bros., reiterated that view on Friday, saying the purchase by Netflix “must be blocked.”

“The world’s largest streaming company swallowing one of its biggest competitors is what antitrust laws were designed to prevent,” the guild said in an emailed statement. “The outcome would eliminate jobs, push down wages, worsen conditions for all entertainment workers, raise prices for consumers, and reduce the volume and diversity of content for all viewers.”

The worries raised by the movie and TV industry’s biggest trade groups come against the backdrop of falling movie and TV production, slack ticket sales and steep job cuts in Hollywood. Another legacy studio, Paramount, was sold earlier this year.

Warner Bros. accounts for about a fourth of North American ticket sales — roughly $2 billion — and is being acquired by a company that has long shunned theatrical releases for its feature films. As part of the deal, Netflix co-CEO Ted Sarandos has promised Warner Bros. will continue to release moves in theaters.

“The proposed acquisition of Warner Bros. by Netflix poses an unprecedented threat to the global exhibition business,” Michael O’Leary, chief executive officer of the theatrical trade group Cinema United, said in en emailed statement Friday. “The negative impact of this acquisition will impact theaters from the biggest circuits to one-screen independents.”

The buyout of Warner Bros. by Netflix “would be a disaster,” James Cameron, the director of some of Hollywood’s highest-grossing films in history including Titanic and Avatar, said in late November on The Town, an industry-focused podcast. “Sorry Ted, but jeez. Sarandos has gone on record saying theatrical films are dead.”

On a conference call with investors Friday, Sarandos said that his company’s resistance to releasing films in cinemas was mostly tied to “the long exclusive windows, which we don’t really think are that consumer friendly.”

The company said Friday it would “maintain Warner Bros.’ current operations and build on its strengths, including theatrical releases for films.”

On the call, Sarandos reiterated that view, saying that, “right now, you should count on everything that is planned on going to the theater through Warner Bros. will continue to go to the theaters through Warner Bros.” 

Competition from online outfits like YouTube and Netflix has forced a reckoning in Hollywood, opening the door for takeovers like the Warner Bros. deal announced Friday. Media giants including Comcast Corp., parent of NBCUniversal, are unloading cable-TV networks like MS Now and USA, and steering resources into streaming. 

In an emailed note to Warner Bros. employees on Friday, Chief Executive Officer David Zaslav said the board’s decision to sell the company “reflects the realities of an industry undergoing generational change in how stories are financed, produced, distributed, and discovered.”

The Producers Guild of America said Friday its members are “rightfully concerned about Netflix’s intended acquisition of one of our industry’s most storied and meaningful studios,” while a spokesperson for the Directors Guild of America raised concerns about future pay at Warner Bros.

“We will be meeting with Netflix to outline our concerns and better understand their vision for the future of the company,” the Directors Guild said.

In September, the DGA appointed director Christopher Nolan as its president. Nolan has previously criticized Netflix’s model of releasing films exclusively online, or simultaneously in a small number of cinemas, and has said he won’t make movies for the company.

The Screen Actors Guild said Friday that the transaction “raises many serious questions about its impact on the future of the entertainment industry, and especially the human creative talent whose livelihoods and careers depend on it.”

Oscar winner Jane Fonda spoke out on Thursday before the deal was announced. 

“Consolidation at this scale would be catastrophic for an industry built on free expression, for the creative workers who power it, and for consumers who depend on a free, independent media ecosystem to understand the world,” the star of the Netflix series Grace and Frankie wrote on the Ankler industry news website.

Netflix and Warner Bros. obviously don’t see it that way. In his statement to employees, Zaslav said “the proposed combination of Warner Bros. and Netflix reflects complementary strengths, more choice and value for consumers, a stronger entertainment industry, increased opportunity for creative talent, and long-term value creation for shareholders.”



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4 times in 7 seconds: Trump calls Somali immigrants ‘garbage’

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He said it four times in seven seconds: Somali immigrants in the United States are “garbage.”

It was no mistake. In fact, President Donald Trump’s rhetorical attacks on immigrants have been building since he said Mexico was sending “rapists” across the border during his presidential campaign announcement a decade ago. He’s also echoed rhetoric once used by Adolf Hitler and called the 54 nations of Africa “s—-hole countries.” But with one flourish closing a two-hour Cabinet meeting Tuesday, Trump amped up his anti-immigrant rhetoric even further and ditched any claim that his administration was only seeking to remove people in the U.S. illegally.

“We don’t want ‘em in our country,” Trump said five times of the nation’s 260,000 people of Somali descent. “Let ’em go back to where they came from and fix it.” The assembled Cabinet members cheered and applauded. Vice President JD Vance could be seen pumping a fist. Defense Secretary Pete Hegseth, sitting to the president’s immediate left, told Trump on-camera, “Well said.”

The two-minute finale offered a riveting display in a nation that prides itself as being founded and enriched by immigrants, alongside an ugly history of enslaving millions of them and limiting who can come in. Trump’s U.S. Immigration and Customs Enforcement raids and deportations have reignited an age-old debate — and widened the nation’s divisions — over who can be an American, with Trump telling tens of thousands of American citizens, among others, that he doesn’t want them by virtue of their family origin.

“What he has done is brought this type of language more into the everyday conversation, more into the main,” said Carl Bon Tempo, a State University of New York at Albany history professor. “He’s, in a way, legitimated this type of language that, for many Americans for a long time, was seen as outside the bounds.”

A question that cuts to the core of American identity

Some Americans have long felt that people from certain parts of the world can never really blend in. That outsider-averse sentiment has manifested during difficult periods, such as anti-Chinese fear-mongering in the late 19th century and the imprisonment of some 120,000 Japanese Americans during World War II.

Trump, reelected with more than 77 million votes last year, has launched a whole-of-government drive to limit immigration. His order to end birthright citizenship — declaring that children born to parents who are in the United States illegally or temporarily are not American citizens despite the 14th Amendment — is being considered by the Supreme Court. He has largely frozen the country’s asylum system and drastically reduced the number of refugees it is allowed to admit. And his administration this week halted immigration applications for migrants from 19 travel-ban nations.

Immigration remains a signature issue for Trump, and he has slightly higher marks on it than on his overall job approval. According to a November AP-NORC poll, roughly 4 in 10 adults — 42% — approved of how the president is handling the issue, down from about half who approved in March. And Trump has pushed his agenda with near-daily crackdowns. On Wednesday, federal agents launched an immigration sweep in New Orleans,

There are some clues that Trump uses stronger anti-immigration rhetoric than many members of his own party. A study of 200,000 speeches in Congress and 5,000 presidential communications related to immigration between 1880 and 2020 found that the “most influential” words on the subject were terms like “enforce,” “terrorism” and “policy” from 1973 through Trump’s first presidential term.

The authors wrote in the Proceedings of the National Academy of Sciences that Trump is “the first president in modern American history to express sentiment toward immigration that is more negative than the average member of his own party.” And that was before he called thousands of Somalis in the U.S. “garbage.”

The U.S. president, embattled over other developments during the Cabinet meeting and discussions between Russian President Vladimir Putin and U.S. envoys, opted for harsh talk in his jam-packed closing.

Somali Americans, he said, “come from hell” and “contribute nothing.” They do “nothing but bitch” and “their country stinks.” Then Trump turned to a familiar target. Rep. Ilhan Omar, D-Minn., an outspoken and frequent Trump critic, “is garbage,” he said. “Her friends are garbage.”

His remarks on Somalia drew shock and condemnation from Minneapolis to Mogadishu.

“My view of the U.S. and living there has changed dramatically. I never thought a president, especially in his second term, would speak so harshly,” Ibrahim Hassan Hajji, a resident of Somalia’s capital city, told The Associated Press. “Because of this, I have no plans to travel to the U.S.”

Omar called Trump’s “obsession” with her and Somali-Americans “creepy and unhealthy.”

“We are not, and I am not, someone to be intimidated,” she said, “and we are not gonna be scapegoated.”

Trump’s influence on these issues is potent

But from the highest pulpit in the world’s biggest economy, Trump has had an undeniable influence on how people regard immigrants.

“Trump specializes in pushing the boundaries of what others have done before,” said César Cuauhtémoc García Hernández, a civil rights law professor at Ohio State University. “He is far from the first politician to embrace race-baiting xenophobia. But as president of the United States, he has more impact than most.” Domestically, Trump has “remarkable loyalty” among Republicans, he added. “Internationally, he embodies an aspiration for like-minded politicians and intellectuals.”

In Britain, attitudes toward migrants have hardened in the decade since Brexit, a vote driven in part by hostility toward immigrants from Eastern Europe. Nigel Farage, leader of the hard-right Reform U.K. party, has called unauthorized migration an “invasion” and warned of looming civil disorder.

France’s Marine Le Pen and her father built their political empire on anti-immigrant language decades before Trump entered politics. But the National Rally party has softened its rhetoric to win broader support. Le Pen often casts the issue as an administrative or policy matter.

In fact, what Trump said about people from Somalia would likely be illegal in France if uttered by anyone other than a head of state, because public insults based on a group’s national origin, ethnicity, race or religion are illegal under the country’s hate speech laws. But French law grants heads of state immunity.

One lawyer expressed concerns that Trump’s words will encourage other heads of state to use similar hate speech targeting people as groups.

“Comments saying that a population stinks — coming from a foreign head of state, a top world military and economic power — that’s never happened before,” said Paris lawyer Arié Alimi, who has worked on hate speech cases. “So here we are really crossing a very, very, very important threshold in terms of expressing racist … comments.”

But the “America first” president said he isn’t worried about others think of his increasingly polarizing rhetoric on immigration.

“I hear somebody say, ‘Oh, that’s not politically correct,’” Trump said, winding up his summation Tuesday. “I don’t care. I don’t want them.”

___

Contributing to this report are Associated Press writers Will Weissert and Linley Sanders in Washington, John Leicester in Paris, Jill Lawless in London, Evelyne Musambi in Nairobi, Kenya, and Omar Faruk in Mogadishu.



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