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I used a bot to do my Christmas shopping. It quickly got weird.

A robot putting a poo emoji in a gift box

iStock; Rebecca Zisser/BI

Stumped on what to get my mom for Christmas this year, I turned, desperately, to Perplexity AI's chatbot. In response to my initial broad question: "What should I get my mom for Christmas?," the robo-elf gave me links to several gift guides published on sites including Target and Country Living. Then the chatbot suggested generic favorites like a Stanley mug and a foot massager. But as I scrolled, it also dropped links directly to more esoteric gifts, including a mug with Donald Trump on it. "You are a really, really great mom," the mug read. "Other moms? Losers, total disasters." I hadn't given Perplexity any indication of political ideology among my family, but the bot seemed to think sipping from Trump's visage every morning was a gift any mother would love. Then it suggested I make a jar and stuff it with memories I've written down. A cute idea, but I did let Perplexity know that I'm in my 30s β€” I don't think the made-at-home gift for mom is going to cut it.

'Tis the season to scramble and buy tons of stuff people don't need or really even want. At least that's how it can feel when trying to come up with gifts for family members who have everything already. Money has been forked over for restaurant gift cards that collect dust or slippers and scarves that pile up; trendy gadgets are often relegated to junk drawers by March. As artificial intelligence becomes more integrated into online shopping, this whole process should get easier β€” if AI can come to understand the art behind giving a good gift. Shopping has become one of Perplexity's top search categories in the US, particularly around the holidays, Sara Platnick, a spokesperson for Perplexity, tells me. While Platnick didn't comment directly on individual gift suggestions Perplexity's chatbots makes, she tells me that product listings provided in responses are determined by "ratings and its relevance to a user's request."

There are chatbots to consult for advice this holiday season, like Perplexity and ChatGPT, but AI is increasingly seeping into the entire shopping experience. From customer-service chatbots handling online shopping woes to ads serving recommendations that follow you across the web, AI's presence has ramped up alongside the explosion of interest in generative AI. Earlier this year, Walmart unveiled generative-AI-powered search updates that allow people to search for things like "football watch party" instead of looking for items like chips and salsa individually; Google can put clothes on virtual models in a range of sizes to give buyers a better idea of how they'll look. In a world with more options than ever, there's more help from AI, acting as robo-elves in a way β€” omnipresent and sometimes invisible as you shop across the web.

For the indecisive shopper, AI may be a silver bullet to choosing from hundreds of sweaters to buy, plucking the best one from obscurity and putting an end to endless scrolling β€” or it might help to serve up so many targeted ads that it leads people to overconsume.

AI can help people discover new items they may never have known to buy online, but it can't replace that intuition we have when we find the perfect thing for a loved one.

Either way, AI has been completely changing the e-commerce game. "It allows a company to be who the customer wants it to be," says Hala Nelson, a professor of mathematics at James Madison University. "You cannot hire thousands of human assistants to assist each customer, but you can deploy thousands of AI assistants." Specialization comes from using third-party data to track activity and preferences across the web. In a way, that's the personalized level of service high-end stores have always provided to elite shoppers. Now, instead of a consultation, the expertise is built on surveillance.

Companies also use AI to forecast shopping trends and manage inventory, which can help them prepare and keep items in stock for those last-minute shoppers. Merchants are constantly looking for AI to get them more β€” to bring more eyes to their websites, to get people to add more items to their carts, and ultimately to actually check out and empty their carts. In October and early November, digital retailers using AI tech and agents increased the average value of an order by 7% when compared to sites that did not employ the technology, according to Salesforce data. The company predicted AI and shopping agents to influence 19% of orders during the week of cyber deals around Thanksgiving. And AI can help "level the playing field for small businesses," says Adam Nathan, the founder and CEO of Blaze, an AI marketing tool for small businesses and entrepreneurs.

"They don't want to necessarily be Amazon, Apple, or Nike, they just want to be the No. 1 provider of their service or product in their local community," Nathan says. "They're not worried about AI taking their job β€” they're worried about a competitor using AI. They see it as basically a way to get ahead."

AI early adopters in the e-commerce space benefited last holiday season, but the tech has become even more common this year, says Guillaume Luccisano, the founder and CEO of Yuma AI, a company that automates customer service for sellers that use Shopify. Some merchants that used Yuma AI during the Black Friday shopping craze automated more than 60% of their customer-support tickets, he says. While some people lament having to deal with a bot instead of a person, Luccisano says the tech is getting better, and people are mostly concerned about whether their problem is getting solved, not whether the email came from a real person or generative AI.

After my ordeal with Perplexity, I turned to see how ChatGPT would fare in helping me find gifts for the rest of my family. For my 11-year-old cousin, it suggested a Fitbit or smartwatch for kids to help her "stay active." A watch that tracks activity isn't something I feel comfortable giving a preteen, so I provided some more details. I told ChatGPT she loved the "Twilight" series, so it suggested a T-shirt with the Cullen family crest and a "Twilight"-themed journal to write fan fiction. It told me I could likely find these items on Etsy but it didn't give me direct links. (As her cool millennial cousin who has lived to tell of my own "Twilight" phase in 2007, I did end up buying a makeup bag from Etsy with a movie scene printed on it.) I also asked ChatGPT for suggestions for my 85-year-old grandpa, and it came up with information about electronic picture frames β€” but the bulk of our family photos are stuffed in albums and shoeboxes in his closet and not easily digitized.

I could navigate this list because these are deep contextual things that I know about my family members, something AI doesn't know yet. Many of the best gifts I've ever received are from friends and family members who stumbled upon something they knew I would love β€” a vinyl record tucked in a bin or a print from an independent artist on display at a craft show. AI can play a role in helping people discover new items they may never have known to buy online, but it can't replace that intuition we have when we find the perfect thing for a loved one. "We're still really wrestling with: How accurate is it? How much of a black box is it?" says Koen Pauwels, a professor of marketing at Northeastern University. "Humans are way better still in getting cues from their environment and knowing the context." If you want to give a gift that's really a hit, it looks like you'll still have to give the AI elves a helping hand.


Amanda Hoover is a senior correspondent at Business Insider covering the tech industry. She writes about the biggest tech companies and trends.

Read the original article on Business Insider

Fed up with Twitter, Americans are fleeing to group chats

Newsanchor with contact avatar as head

Getty Images; iStock; Natalie Ammari/BI

In the early days of the pandemic, Josh Kramer and his wife set up a Discord server to stay in touch with their friends. Branched off from the main group of about 20 people are different channels for topics β€” like AI and crypto, which took over a channel previously devoted to "Tiger King," and another called "sweethomies" to talk about their houses and apartments β€” that only some people might want to be notified about to avoid annoying everyone all the time. Now, more than four years later, it's become "essential" for the extended friend group, says Kramer, seeing them through the early anxiety of COVID-19 and two presidential elections.

While the chat is made up of friendly faces, it's not really an echo chamber β€” not everyone has the same ideology or political opinions, Kramer tells me. But it's more productive than screaming into the void on social media. Now, when he has a thought that may have turned into a tweet, he instead takes it to the group, where it can become a conversation.

"It's a way to have conversations about complicated issues, like national politics, but in context with people I actually know and care about," Kramer, who is the head of editorial at New_ Public, a nonprofit research and development lab focusing on reimagining social media, tells me. The success of the server has also informed how he thinks about ways to reform the social web. On election night, for example, using the group chat was less about scoring points with a quippy tweet and "more about checking in with each other and commiserating about our experience, rather than whatever you might take to Twitter to talk about to check in with the broader zeitgeist."

In the month or so since the 2024 election, thousands have abandoned or deactivated their X accounts, taking issue with Elon Musk's move to use the platform as a tool to reelect Donald Trump, as they seek new ways to connect and share information. Bluesky, which saw its users grow 110% in November according to market intelligence firm Sensor Tower, has emerged as the most promising replacement among many progressives, journalists, and Swifties, as it allows people to easily share links and doesn't rely as heavily on algorithmic delivery of posts as platforms like Facebook, X, and TikTok have come to. But some are turning further inward to smaller group chats, either via text message or on platforms like Discord, WhatsApp, and Signal, where they can have conversations more privately and free of algorithmic determinations.

It's all part of the larger, ongoing fracturing of our social media landscape. For a decade, Twitter proved to be the room where news broke. Other upstarts launched after Elon Musk bought the platform in 2022 and tried to compete, luring people with promises of moderation and civility, but ultimately folded, largely because they weren't very fun or lacked the momentum created by the kind of power users that propelled the old Twitter. But for many, there's still safety in the smaller group chats, which take the form of your friends who like to shit talk in an iMessage chain or topic-focused, larger chats on apps like Discord or WhatsApp.

"Group chats have been quite valued," Kate Mannell, a research fellow with the ARC Centre of Excellence for the Digital Child at Deakin University in Australia, tells me. They allow people to chat with selected friends, family members, or colleagues to have much "more context-specific kinds of conversations, which I think is much more reflective of the way that our social groups actually exist, as opposed to this kind of flattening" that happens on social media. When people accumulate large followings on social media, they run into context collapse, she says. The communication breakdown happens as the social platforms launched in the 2000s have taken on larger lives than anyone anticipated.

The candid nature of group chats gives them value and tethers people with looser connections together, but that can also make them unwieldy.

By contrast, some more exclusive chats are seen as cozy, safe spaces. Most of Discord's servers are made up of fewer than 10 people, Savannah Badalich, the senior director of policy at Discord, tells me. The company has 200 million active users, up from 100 million in 2020. What started as a place to hang with friends while playing video games still incentivizes interacting over lurking or building up big followings. "We don't have that endless doomscrolling," Badalich says. "We don't have that place where you're passively consuming content. Discord is about real-time interaction." And interacting among smaller groups may be more natural. Research by the psychologist Robin Dunbar in the 1990s found that humans could cognitively maintain about 150 meaningful relationships. More recent research has questioned that determination, but any person overburdened by our digital age can surely tell you that you can only show up authentically and substantially in person for a small subset of the people you follow online. A 2024 study, conducted by Dunbar and the telecommunications company Vodafone, found that the average person in the UK was part of 83 group chats across all platforms, with a quarter of people using group chats more often than one-to-one messages.

In addition to hosting group chats, WhatsApp has tried more recently to position itself as a place for news, giving publishers the ability to send headlines directly to followers. News organizations like MSNBC, Reuters, and Telemundo have channels. CNN has nearly 15 million followers, while The New York Times has about 13 million. Several publishers recently told the Times that they were seeing growth and traffic come from WhatsApp, but the channels have yet to rival sources like Google or Facebook. While it gives them the power to connect to readers, WhatsApp is owned by Meta, which has a fraught history of hooking media companies and making them dependent on traffic on its social platforms only to later de-emphasize their content.

Victoria Usher, the founder and CEO of Gingermay, a B2B tech communications firm, says she's in several large, business-focused group chats on WhatsApp. Usher, who lives in the UK, even found these chats were a way to get news about the US election "immediately." In a way, the group chats are her way of optimizing news and analysis of it, and it works because there's a deep sense of trust between those in the chat that doesn't exist when scrolling X. "I prefer it to an algorithm," she says. "It's going to be stories that I will find interesting." She thinks they deliver information better than LinkedIn, where people have taken to writing posts in classic LinkedIn style to please the algorithm β€” which can be both self-serving and cringe. "It doesn't feel like it's a truthful channel," Usher says. "They're trying to create a picture of how they want to be seen personally. Within WhatsApp groups or Signal, people are much more likely to post what they actually feel about something."

The candid nature of group chats β€” which some have called the last safe spaces in society today β€” gives them value and tethers people with looser connections together, but that can also make them unwieldy. Some of the larger group chats, like those on Discord, have moderation and rules. But when it comes to just chatting with your friends or family, there's largely no established group-chat etiquette. Group chats can languish for years; there's no playbook for leaving or kicking out someone who's no longer close to the core group. If a couple breaks up, who gets the group chat? How many memes is a person allowed to send a day? What happens when the group texts get leaked? There's often "no external moderator to come in and say, 'That's not how we do things,'" Mannell says.

Kramer, while he likes his Discord chat, is optimistic about the future of groups and new social networks. He says he's also taken over a community Facebook group for his neighborhood that was inactive and made more connections with his neighbors. We're in a moment where massive change could come to our chats and our social networks. "There's been a social internet for 30 years," says Kramer. But there's "so much room for innovation and new exciting and alternative options." But his group chat might still have the best vibes of all. Messaging there "has less to do with being right and scoring points" than on social media, he says. "It has so much value to me on a personal level, as a place of real support."


Amanda Hoover is a senior correspondent at Business Insider covering the tech industry. She writes about the biggest tech companies and trends.

Read the original article on Business Insider

From Brazil to China, Airbnb has its sights set on global dominance

The Airbnb logo on top of a globe

iStock; Rebecca Zisser/BI

Airbnb has its sights set on global domination. In earnings calls this year, its cofounder and CEO, Brian Chesky, mapped out what he sees as the short-term-rental giant's biggest expansion markets: Mexico and Brazil in the Americas; in Asia, Japan, India, South Korea, and China, for Chinese residents looking to travel outside the country; and further into Germany, Italy, and Spain in Europe, where it already has a stronghold.

What's connecting these scattered countries? Dave Stephenson, the chief business officer at Airbnb, says they're all places where the company's footprint is small compared to the amount of money people spend on travel there. The company is working on ways "to show up locally relevant," he says, "so that people think of why it's better to travel on Airbnb." Stephenson maintains that Airbnb, despite its name recognition, has a smaller footprint than hotels. The company says it has 8 million active listings globally, compared to, by one estimate, some 17 million hotel rooms. Airbnb aims to close that gap, continent by continent.

There's something else tying this far-flung strategy together: Airbnb is looking for new frontiers at a time when cities around the world are cracking down on the company and other short-term rental platforms, largely in response to complaints that short-term rentals draw (often unruly) tourists and displace locals. Barcelona, which has an estimated 20,000 Airbnb listings, has said it will ban all short-term rentals by 2028. MΓ‘laga will stop giving out new short-term-rental permits in dozens of neighborhoods. New York enacted a law in 2023 that wiped nearly all short-term rentals off the map. Other cities, like London and Paris, have been enforcing strict limits on the number of nights each year that a property can be listed for short-term renting.

For Airbnb, terra incognita looks more appealing as some of its terra firma becomes less firm.


When Airbnb was new and growing rapidly in the 2010s, there was little regulation on short-term rentals. Many did not anticipate how homeowners, and even renters, would turn Airbnb into overnight miniature business empires. But complaints mounted over the years. Residents reported that short-term renters often had parties that brought trash, noise, and general chaos to buildings and neighborhoods, even after the company barred guests from hosting large gatherings. Locals also blamed the lucrative rentals for pushing up housing prices. Housing costs are influenced by many factors, but in 2020, researchers found that Airbnb growth in the median ZIP code accounted for an increase of $9 in monthly rent and $1,800 in home prices, making up one-fifth of rent growth and one-seventh of property value increases. A report by the New York City comptroller found that between 2009 and 2016, 9.2% of the jump in rental rates could be tied to Airbnb.

At this point, dozens of local governments around the world have enacted laws regulating short-term rentals that are bespoke to their cities. This gives places where Airbnb is looking to expand the advantage of seeing how various regulations have started to affect housing availability elsewhere, should they want to move proactively. "Even though those places that Airbnb could be pushing into may not have a [regulatory] framework, there's at least these examples where governments have recognized the need to protect housing and implemented successful ways of regulating it," says Murray Cox, founder of Inside Airbnb, which scrapes Airbnb data to show its footprint in cities around the world. Cities could take approaches from other playbooks, such as requiring Airbnb to share data with local officials, zoning short-term rentals to more commercial neighborhoods, or allowing hosts to rent out primary residences a limited number of nights a year.

Chesky is more than confident that Airbnb can win over the hearts and minds of the masses anywhere it expands into.

For Airbnb, the patchwork regulation around the world is both "a problem and an opportunity," says Cox. If rentals are curtailed in Paris, the company could look to expand to nearby cities or rural parts of France where there are fewer regulations. For Airbnb, that might mean moving into new countries. "They either can't grow or they're declining in cities or some parts" of their core markets, Cox says. "The only way that they can either maintain their revenues or grow is to push into other markets."

Airbnb isn't opposed to rules outright. If regulations are in place before the company expands to a new market, it could make the process simpler for hosts and guests and spare Airbnb from having to pivot and wipe tens of thousands of listings from its platform in one swoop after a new law passes. "We really do welcome sensible regulation," Stephenson tells me. "In a sensible, reasonable way, it works quite well." Airbnb is still pushing back against what it believes are overreaching regulations, like those in New York City. And despite the regulations, Airbnb is growing. Its revenue is up 10% year over year, and the number of nights booked grew, along with experiences, which include activities provided by local businesses and tour guides, by 8%.

But Airbnb's challenges don't stop at the regulations. It must also get people around the world to buy in. "Each country is going to have its own dynamics," Jamie Lane, the senior vice president of analytics and chief economist at AirDNA, tells me. In some countries, hosting strangers in your home wouldn't be culturally acceptable. Lane also says there are local competitors to Airbnb in some places "that have been impactful and made it hard for them to compete."

Those challenges are partially why Airbnb pulled out of hosting in China in 2022, wiping out 150,000 listings there. For one, the country's strict travel regulations around COVID-19 lasted longer than measures taken by most other nations, which created a drag on travel bookings. But Airbnb struggled to compete with Chinese companies offering short-term rentals long before that. The homegrown alternatives there included Tujia, which was designed to attract Chinese travelers specifically by anticipating peak travel times and rates, Melissa Yang, the company's cofounder, told CNN several years ago.

Chesky is more confident that Airbnb can win over the hearts and minds of the masses anywhere it goes. "Airbnb pretty much resonates pretty equally everywhere once there's the awareness," he told investors in a call earlier this year. "In fact, I could argue that Airbnb might resonate better in Asia because there's a younger travel population that's not predisposed to hotels, and they're on social media. And we are disproportionately on social media versus our competitors. So I'm very, very bullish about that."

While the company isn't telegraphing its expansion strategy in every country, one of its most obvious moves began in Japan this fall. Airbnb ran an ad in English last year promoting travel in Kyoto, but it ramped up its Japanese ads in October. It's looking to court young Japanese travelers who want to take weekend trips, showing photos of a family traveling to a sleek, modern cabin in a wooded area, where they sing karaoke. Stephenson says Airbnb has also learned that local travelers want proximity to onsens, Japanese hot springs and bathing facilities, so listings there now show nearby onsens.

Elsewhere, Airbnb has been implementing payment methods preferred by locals. The company recently added KaKao Pay in South Korea and Vipps in Norway, among dozens of other options. It may seem like a small step, but Airbnb thinks meeting people where and how they pay will make the service more appealing.

Researchers are closely watching Airbnb's ongoing spread. Bianca Tavolari, a researcher and member of the advisory board of the Global Observatory of Short-Term Rentals, a group of Latin American organizations focused on housing, says Brazil has lagged in regulating short-term rentals, though a court ruled last year that hosts must have explicit consent from property owners to list apartments or condos as short-term rentals. Airbnb shares some tourism trend information with local officials through its city portal, but researchers like Tavolari still have questions about Airbnb's full impact. "We are in the dark," she tells me. Yet "cities are seeing it as a great opportunity," particularly those that depend heavily on tourism dollars, she says, and thinking less about the long-term costs to residents.

Cox says he's "hopeful that some of these locations that Airbnb is planning to push to have already started thinking about" how they'll handle its growth. If Chesky's hypothesis is right, Airbnb could continue to spread rapidly once people in other parts of the world get used to couch surfing or navigating a hidden lockbox to let themselves into their rentals. Cities should be ready before more tourists start packing their bags.


Amanda Hoover is a senior correspondent at Business Insider covering the tech industry. She writes about the biggest tech companies and trends.

Read the original article on Business Insider

Everyone used to hate sharing their data. Then came Spotify Wrapped.

Spotify logo with Duolingo and Apple.

Getty Images; Jenny Chang-Rodriguez/BI

Spotify Wrapped arrived on Wednesday, packaged in its usual neon, Instagram-ready glory.

The annual release dominates social-media posts for a day, but beneath the colorful cards (designed to be bespoke but distributed en masse), it's Spotify's brag about the amount of data the company has collected on you, mirrored back in a way that's meant to make surveillance sexy, silly, and shareable.

In recent Decembers, the wrap-ification of our data has spread beyond Spotify. Apple Music, Spotify's main competitor, now has a similar feature called Replay, unveiling this year's version on Tuesday. Starbucks has sent out emails telling people about their favorite beverages and number of store visits, shocking some with exactly how many dozens of Frappuccinos they bought. Duolingo kicked off the Wrapped season earlier this week, showing people how many mistakes they made while trying to learn a new language. The British supermarket chain Tesco has sent Clubcard members a review of what they bought in recent years, called Unpacked. And on Tuesday, Tinder hosted a Year in Swipe party, where it revealed the top trends in online dating the app gleaned from its broad swath of 50 million monthly users, which included people getting specific about what kind of person they're looking for or putting a hand emoji in their bios to indicate they're searching for real connections.

All this is getting weird. The type of lattes we drink and the music we listen to are things we fundamentally know about ourselves. The most common names of men and women on Tinder (Alexes and Daniels dominated among men, Marias and Lauras women) tell us nothing about how to find love. But these year-in-review trends still catch avid attention and, in turn, provide free advertising for companies when they're reshared. About an hour after Spotify unveiled this year's Wrapped, its market cap reached $100 billion for the first time. Spotify did not respond to requests for comment.

"People are so excited about seeing data collected from them and then being shown back to them in a way that feels meaningful and relatable," Taylor Annabell, a researcher with Utrecht University who has studied the Wrapped phenomenon, said. "Wrapped taps into this belief we have that data is meaningful and that we want to see it because it helps us understand ourselves."

Wrapped 2024 included the usual unveiling of top songs and artists, but Spotify has added a "Wrapped AI podcast," which features two voicebot hosts chatting through your listening habits without really saying much about the songs, in particular. There was also a section picking apart how listening styles changed over different months of the year. For me, that meant going from "van life folkie indie" to "mallgoth permanent wave punk," mildly embarrassing phrases that might describe my musical tastes from a distance but tell me little new about myself.

Wrapped content has proven so effective on social media that people are making up new categories themselves, packaging parts of their private lives not captured by apps.

Of course, Spotify can't capture everything about your tastes β€” maybe you played a vinyl record on repeat or shared a streaming account with someone in your family. ("It's not me who can't stop listening to Chumbawamba. It's my cousin, I swear!") Maybe you opted for a mysterious approach and kept your Tinder bio short and sweet.

But where data is lacking, some have set out to create it themselves. Wrapped content has proved so effective and viral on social media that people have taken to making up new categories, packaged parts of their lives not captured by apps, and turned it over to their followers. Here, at least, these people get to curate their experiences and post them as they wish. Last December and already this week, some people took to TikTok to talk through how many first dates they went on during the course of a year, using cute and colorful slideshows to walk their users through their year of bad dates, situationships, and ghosting. A third-party project called Vantezzen takes TikTok data and generates a Wrapped-like analysis for those who want to know how many minutes they spent doom scrolling.

All this comes as people have largely thrown up their hands and given in to sharing their data with their apps. Companies have "gotten us to move past just accepting that they are spying on us to celebrating it," said Evan Greer, the director of the digital-rights advocacy group Fight for the Future and a vocal opponent of Spotify who released an album called "Spotify Is Surveillance" in 2021. "That's the shift we're seeing with this explosion of these types of year-end Wrapped viral gimmicks," Greer added. "They're actually about hypernormalizing the fact that the online services that we use know so very much about us."

Tinder's year in review looked at data from profiles in the US and globally and its own survey results, determining the most popular love languages and zodiac signs, the fastest-growing words mentioned in bios (freak, pickleball, and finance all soared this year), and how people like to communicate (ironically, "better in person" won out over the messaging app). It also created an interactive vision-board feature for people to set intentions for their 2025 dating plans. The company's in-person Year in Swipe party was held in a moody Manhattan bar, where attendees could make charm bracelets or have a tarot-card reading, and each sported a button designed to correspond with their dating vibe, like a black cat or delusional. Tinder did not respond to a request for comment about whether people could opt out of being used in the aggregate data.

But Spotify, in particular, wants to tell its users more about themselves throughout the year. In September 2023, the company began making "daylists," or curated playlists released multiple times throughout the day. While they don't come with the sharable, flashy cards to post on Instagram, they're given catchy names that hint at something about you, changing several times a day. Just this week, Spotify has dubbed me a "Laurel Canyon hippie" and crafted a vibe for a "yearning poetry Tuesday afternoon."

The daylists feel like Spotify's attempt to take the Wrapped success "to the next level," said Nina Vindum Rasmussen, a fellow at the London School of Economics and Political Science who worked on the Spotify research with Annabell. It's "data fiction that accompanies people throughout the day," she said, adding: "What does it mean for them to have this mirror constantly shoved in their face?"

Most of us have gotten comfortable with β€” or at least resigned to β€” the fact that Big Tech is watching our every move. Wrapped season is a shiny reminder of all we've done, seemingly in private, on our phones. But don't count on your friends to stop sharing their elite spot as a 0.05% top listener of Taylor Swift anytime soon.


Amanda Hoover is a senior correspondent at Business Insider covering the tech industry. She writes about the biggest tech companies and trends.

Read the original article on Business Insider

Drake lost his rap battle with Kendrick Lamar. Now he's going to war with Spotify.

Photo collage of Drake, a sign reading 'Stop the Steal' and Kendrick Lamar performing in the background

Prince Williams/Wireimage; Bill Clark; Astrida Valigorsky/Getty Images; Alyssa Powell/BI

If it didn't already look like Drake had lost the feud of the year, it certainly does now.

In a legal filing Monday, an LLC owned by Drake called Frozen Moments alleged that Universal Music Group and Spotify worked together to make "Not Like Us" β€” a viral diss track Kendrick Lamar released about Drake earlier this year β€” a bigger hit than it naturally would have been. The petition, filed three days after Drake's rival released the critically acclaimed surprise album "GNX," claims UMG did this by offering lower licensing rates on the song to Spotify in return for promotion, then paying third-party companies to have bots inflate streams of it; "Not Like Us" has surpassed 900 million plays on Spotify. ("Family Matters," a Drake diss track about Lamar released around the same time, has 122 million plays.) The filing also accuses UMG of using pay-to-play tactics to increase the song's radio play and have influencers promote it across social media. It's not a lawsuit yet, but a petition seeking more information about the alleged practice.

"Streaming and licensing is a zero-sum game," Drake's filing says. "Every time a song 'breaks through,' it means another artist does not. UMG's choice to saturate the music market with 'Not Like Us' comes at the expense of its other artists, like Drake."

The twist: UMG doesn't just represent Lamar but also Drake. And Drake is one of the biggest artists streaming on Spotify, with about 10 million more monthly listeners than Lamar. If major companies like UMG and Spotify really are conspiring to help one artist over another, they would be severely disrupting the way people discover and come to love music and risking the entire streaming model the music industry now relies on.

Hip-hop fans are mocking Drake's litigiousness as petty and destructive to his street cred. "This is Drake's Jan. 6," the musical artist and former NFL running back Arian Foster posted on X. Music industry insiders, meanwhile, are skeptical of the allegations themselves.

"It's not in Spotify's interest for their model to be undermined by people not getting paid fairly," Tony Rigg, a music industry advisor and lecturer at the University of Central Lancashire, tells me. "Bots, potentially, would undermine both" Spotify and UMG. In other words, for the top of the music industry, rigging with bots would be "not like us."

The kind of manipulation, also called artificial listening, that Drake is talking about does happen. Some artists use third-party companies that enlist accounts made by bots to listen to the same playlist on repeat. That's an issue because of how streaming companies pay. They divide up royalty payments from a limited pool of cash. More plays means more of the pie. And as more people have taken to uploading AI-generated slop to streaming platforms like Spotify, they risk becoming more diluted. In September, a North Carolina musician was charged with music streaming fraud; the US Attorney for the Southern District of New York claims he made more than $10 million using those kinds of tactics. (The case is ongoing.) Smaller artists looking to make money off streaming can suffer. But it's harder to know how it could affect megastars like Drake and Lamar, who are already among the top performers in Spotify's streaming ranks.

In the end, the attention, and ears, on the two artists' beef may have made Spotify and UMG both winners.

There are more than 100 million songs each on popular streaming platforms like Spotify, Apple Music, and SoundCloud. Last year, Spotify booted tens of thousands of songs from its platform reported to be generated by AI and also listened to by bots β€” essentially, computer music for computers. UMG itself has pushed back against AI-generated music, trying to block AI from training on its catalogs on streaming platforms.

Spotify declined to comment, but the company does have policies in place to detect and combat artificial streaming. A UMG spokesperson told me that "the suggestion that UMG would do anything to undermine any of its artists is offensive and untrue. We employ the highest ethical practices in our marketing and promotional campaigns. No amount of contrived and absurd legal arguments in this pre-action submission can mask the fact that fans choose the music they want to hear."

Fans can argue whether Drake or Lamar won the feud. By throwing lawyers and corporations into the rap battle, Drake has made it much less street and much more corporate. It's hard to imagine bots would be driving so many listeners to Lamar, a 17-time Grammy award winner. The song itself has been nominated for five Grammys, has been used at political events and protests around the world, and became a hit on TikTok. In the end, the attention, and ears, on the two artists' beef may have made Spotify and UMG both winners.


Amanda Hoover is a senior correspondent at Business Insider covering the tech industry. She writes about the biggest tech companies and trends.

Read the original article on Business Insider

Product managers rule Silicon Valley. Not everyone is happy about it.

4 men in suits standing over someone at a computer

Getty Images; Rebecca Zisser/BI

Elle took a job in the tech industry about seven years ago, right when product management was "getting hot," she says. While the companies she's since worked for have had vastly different expectations of her, one thing has been consistent: clashes with other teams. Product managers serve as a bridge between engineers, salespeople, customer-service agents, and workers in other departments, and getting them to work together to build products that people actually need can be fractious.

"If you're an engineer and you have an idea, and then you have this outside figure come in and say, 'Why are you doing it this way?' β€” some can see that as great collaboration," says Elle, who asked that I use only her first name. "Other people are like, 'Whoa, you're slowing me down.'"

The product manager has become a powerful, highly paid, and polarizing figure. At some tech companies their colleagues refer to them, both affectionately and disparagingly, as "mini-CEOs" of the products they manage. Google's Sundar Pichai, Microsoft's Satya Nadella, and YouTube's Neal Mohan climbed their way up from product manager to CEO, and they deploy legions of PMs to help run their companies.

Coworkers don't always have fuzzy feelings about product managers. X abounds with snarky memes about their purposelessness, their illiteracy of Python and C++, their penchant for saying "no updates from me" in update meetings. On forums and subreddits, their more-technical colleagues belittle their work as fluff. "Is product manager the most useless role in tech?" an engineer posted on Blind. Another accused product managers of "stealing a living": "As an engineer, I feel I can easily do their job in addition to mine with not much extra effort," they wrote. One person on Reddit argued that product managers "just attend meetings and get paid more than the actual people doing the work."In a LinkedIn post titled "Product is too important. So we got rid of product managers," the founder of a digital banking startup wrote, "Any function that needs a decade to explain what it actually is or isn't doing is at very high risk of somehow being lost."

Several companies, from Airbnb to Snap, are now reconsidering the utility of product managers entirely, while others claim that the product manager's reign will only expand in the age of AI. How did a role that barely existed before the 2000s become one of the most influential and controversial presencesΒ in tech?


The seed of product management dates back to at least the 1930s, when Procter & Gamble created a position called the "brand man" whose job it was to understand customer problems. Inspired by this, Hewlett-Packard pioneered the tech product manager role in the 1960s. Microsoft began hiring what it called "program managers" in the 1980s. In the 2000s, as companies like Apple, Google, and Amazon expanded to create ever more products, product managers proliferated. Hardware and software also became more complicated, and the engineers and developers building it had less time to figure out what was actually useful β€” companies realized they needed someone dedicated to translating customer needs.

Product became a path into tech for people with backgrounds in consulting or MBAs. A "golden era" of product management emerged in the run of zero interest rates in the 2010s. Companies gobbled up talent, sometimes hiring beyond their needs just to keep smart workers from going to competitors. Big Tech companies became bloated, paying middle managers high salaries to optimize products and development. Carnegie Mellon University began offering what it calls a first-of-its-kind master's degree in product management in 2018. The next year, U.S. News and World Report named product manager a top-five job for MBA grads.

"The shift in power moved from engineering to product managers," says Hubert Palan, the CEO of Productboard, a company that provides software for product managers. That's part of the friction: Those on the tech side often think the product manager doesn't understand how things work, but the product manager may think the engineers are building tools that people don't actually want or need, even if they're feats in coding.

"The product manager is at the center of everything," says Avi Siegel, a former product manager who's working on his own startup, Momentum. "If sales wants one thing and marketing wants one thing and customer success wants one thing, they disagree, and you can only choose one of the groups to side with β€” you're only going to keep one of those people happy."

"Product management is mostly necessary, but it can be done very badly," says Aaron, a software engineer who asked me to use only his first name. He says he's worked with both excellent and terrible product managers. At best, they bear the burden of understanding the tech a market needs. At worst, they don't acknowledge how technically difficult a solution they demand might be, which leads to ire, fatigue, and failure. "We would be asked for the moon with no collaboration," Aaron says.

Whether their coworkers are happy about it or not, product managers are gaining recognition. A 2007 study found that as the product-management role became more formalized at companies, projects were finished closer to deadlines and with more predictability. A 2020 report from McKinsey said that "creating a comprehensive product-management function" was one of the four most important things a company could do to grow its software business faster. According to ZipRecruiter, the average product manager in the US makes about $160,000. Software engineers, meanwhile, average about $147,000, and tech marketing specialists average about $87,000.

Product managers described the role to me as more intuitive and right-brained than left-brained (though there are plenty of technical PMs, many of them former engineers). The career site Zippia says the proportion of women working in product management rose to nearly 35% in 2021 from about 19% in 2010. That's compared to just 22% of all tech workers. Some women in product management I spoke to say part of the suspicion of their role's utility could be rooted in sexism. In 2022, two women who worked as product managers posted a TikTok explaining what they did for work, while they worked from a pool. The video drew hundreds of harsh comments. "Dealing with most product managers is a headache and a half and we usually hate talking to you," one person responded.

"Every woman that I've met with, if they're interested in a company, their first question is: Am I technical enough?" Elle says. "Every guy I've met, that question doesn't cross their mind." It makes her wonder if it's easier for men in product management to push back and say no to some ideas without looking like naysayers.

Empathy came up in every conversation I had for this story. Like a deft diplomat, a good product manager can empathize with the needs and concerns of every stakeholder, Palan says. Meg Watson, a product manager who has worked for Spotify and Stitch Fix, says product managers who try to rule with an iron fist "quickly learn that doesn't work." She describes working as a product manager as emotional and intense and says many of them experience the tension of their role daily. When she asks people looking for advice on getting into product management why they want to, they say they want power. "You will have power," Watson says. "You will also have accountability and pressure and stress."

And now some companies are ditching them. The Airbnb cofounder Brian Chesky said last year that the company had combined the product-management function with product marketing. The rising call for executives to go "founder mode" β€” a concept touted by Chesky and coined by the Y Combinator founding partner Paul Graham β€” has some questioning whether they should be delegating product decisions to product managers. A spokesperson for Snap told The Information last fall that it laid off 20 product managers to help speed up the company's decision-making. Smaller firms ponder the utility of bringing on product managers at all.

But others say the scope of product managers, though it may draw engineers' ire, is more likely to expand across the industry. "The future really does belong to product managers," says Frank Fusco, a product manager turned CEO of a software company called Silicon Society. As artificial intelligence gets more adept at coding, he says, some engineering tasks could become redundant β€” and that could be a boon for product managers. (Pichai, a former product manager, said last month that more than a quarter of Google's new code was created by AI.) Fusco says the AI boom is a classic product-manager problem: What do customers actually want the tech to do? As investors and executives are hungry for AI and many consumers are skeptical, Fusco predicts a rising demand for product managers to help bridge that gap.

"The revenge of the PMs is coming," he says. "I would expect to see PMs becoming more prestigious and empowered."


Amanda Hoover is a senior correspondent at Business Insider covering the tech industry. She writes about the biggest tech companies and trends.

Read the original article on Business Insider

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