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The Pope Heads To G7 For First Time To Talk About AI—After ‘Balenciaga Pope’ Meme

Topline

Pope Francis is set to attend the G7 summit on Friday and is expected to urge world leaders to adopt AI regulations, a subject the Pope has spoken about several times in the past, including after he was the subject of viral AI-generated images that many believed were real.

Key Facts

  • The Vatican announced Pope Francis would attend the Group of 7 conference in Italy on Friday to discuss ethical concerns surrounding artificial intelligence during a session dedicated to AI, becoming the first pope to participate in the summit of leaders.
  • The Pope fell victim to AI in the past: AI-generated deepfake images of the Pope in a white puffer jacket and bedazzled crucifix—dubbed the “Balenciaga Pope”—went viral last year and racked up millions of views online, causing some people to believe the pictures were real.
  • He spoke about the fake images during a speech in Vatican City in January, warning about the rise of “images that appear perfectly plausible but false (I too have been an object of this).”
  • Pope Francis has spoken out about the danger of AI before, and he’s expected to urge world leaders at the G7 conference to work together to create AI regulations.
  • During the G7 meetings, Italy is expected to advocate for the development of homegrown AI systems in African countries, further work is expected to be done on the Hiroshima Process—a G7 effort to safeguard the use of generative AI—and leaders from places like the U.S. and the U.K. are expected to promote AI regulations introduced in their countries, according to Politico.
  • Giorgia Meloni, Italy’s prime minister, said in a statement in April the Pope was invited to the G7 conference to help “make a decisive contribution to defining a regulatory, ethical and cultural framework for artificial intelligence.”
  • The Vatican also announced Pope Francis will have bilateral conversations with leaders of other countries, including President Joe Biden, President Samoei Ruto of Kenya and India’s Prime Minister Narenda Modi.

Key Background

The Pope has been speaking out about the need for artificial intelligence regulation for years. The Vatican has been promoting the “Rome Call for AI Ethics” since 2020, which lays out six principles for AI ethics, which include transparency, inclusion, impartiality, responsibility, reliability and security and privacy. As part of the August 2023 announcement for this year’s World Day of Peace of the Catholic Church—which was held on Jan. 1—-the Pope warned of the dangers of AI, saying it should be used as a “service of humanity.” He called for “an open dialogue on the meaning of these new technologies, endowed with disruptive possibilities and ambivalent effects.” In December 2023, the Pope called for an international treaty to regulate AI as part of his World Day of Peace message. He urged world leaders to “adopt a binding international treaty” to regulate AI development, adding it shouldn’t just focus on preventing harm, but should also encourage “best practices.” The Pope noted that although advancements in technology and science lead to the betterment of humanity,” they can also give humans “unprecedented control over reality.”

Tangent

Italy—one of the G7 summit’s rotating hosts—became the first country to temporarily ban AI chatbot ChatGPT in March 2023 after Garante, an Italian data protection regulator, claimed the chatbot violated the European Union’s privacy laws. Garante claimed ChatGPT exposed payment information and messages, and allowed children to access inappropriate information. Other countries that have passed or introduced laws regulating AI include Australia, China, the European Union, the U.S., Japan and the U.K.

Original news here.

Bitcoin Surges 23% In A Week As Investor Optimism Returns

Bitcoin was on track for a weekly gain of around 23% on Friday as a series of positive macroeconomic and policy developments boosted investor sentiment.

The cryptocurrency was trading about 6% higher at roughly $77,000, up from around $62,800 at the start of the week. Crypto-related stocks also rallied, with Coinbase and Circle gaining more than 9%, while Strategy rose 7%.

Macro Factors Fuel Rally

Bitcoin’s latest surge began Wednesday after Treasury yields fell sharply following a major intervention by the U.S. Treasury in the bond market. Lower yields eased pressure on risk assets and helped trigger a broader move into cryptocurrencies.

The rally was further amplified by a major short squeeze. Around $2.7 billion in crypto short positions were liquidated, according to CoinGlass.

Max Stuedlein, head of Partnerships at Sygnum APAC, said the move reflected an alignment of macroeconomic and policy catalysts, including the Treasury’s decision to increase buybacks of longer-dated government debt.

Clarity Act Boosts Sentiment

Investor confidence improved further on Thursday as the White House and crypto industry leaders made a final push to advance the Clarity Act in the coming weeks.

The legislation is widely viewed as a potential catalyst for the crypto market, although its chances of passing remain relatively limited.

Despite the rally, bitcoin remains well below its 2026 high of $94,820 reached in January and its all-time high of $126,198, set last October.

Analysts See More Volatility Ahead

Lucy Gazmararian, founder and managing partner at Token Bay Capital, said the crypto market may be approaching the end of its bear cycle.

She expects bitcoin could experience one more decline of around 20% before the market turns, pointing to historical cycles and the recent liquidation of heavily leveraged short positions.

Gazmararian also described bitcoin as a long-term hedge against monetary debasement, while warning that its short-term price remains highly volatile and driven by market cycles.

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