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Though small in volume, gallium and germanium hold big potential for the global critical minerals market

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Though small in volume, gallium and germanium hold big potential for the global critical minerals market


Critical minerals: the quiet achievers gallium and germanium
According to CRU, global gallium demand in 2023 was 708 metric tons, and is expected to reach 1,180 metric tons by 2030. Credit: CRU Group

Australia exports about 1 billion metric tons of iron ore each year and 300 metric tons of gold. Yet, beyond these well-known commodities lies a suite of lesser-known minerals, which are critical for the world’s advancement.

Critical minerals are designated critical for their essential role in modern technologies. They are identified as critical based on a number of factors including supply chain security, economic benefits and strategic importance.

Australia already packs a punch in global critical mineral supply, producing 14 of the 31 minerals listed in Australia’s Critical Minerals List. However, as the world’s reliance on technology increases, and countries transition to renewable energy, there is an opportunity for Australia to grow its stake further.

The hidden gems: Gallium and germanium

Among Australia’s unsung critical minerals are gallium and germanium. Like many critical minerals, they are not typically mined directly but are by-products of the processing of other minerals.

Both minerals hold significant growth potential for Australia, despite the country’s current limited production.

Despite gallium being as abundant on earth as copper, it never occurs at high enough concentrations to mine. It occurs in small but appreciable quantities in bauxite which is the main ore source of alumina.

Global demand for gallium is only about 708 metric tons, so even small amounts are valuable.

Gallium is crucial for producing high-speed semiconductor chips and LEDs. It is also used to create solar photovoltaic (PV) cells and electronic devices that operate at high frequencies and temperatures, making it ideal for military and satellite communications.

Germanium is a by-product of lead and zinc mining. This mineral plays a pivotal role in renewable technologies, particularly in solar cells and fiber optics, enhancing their efficiency and performance.

The global production of germanium is currently around 220 metric tons annually.

Unlocking Australia’s critical mineral potential

Dr. Chris Vernon is our Australian Critical Minerals R&D Hub Lead. He said Australia had most of the critical minerals on any country’s list so there was huge potential to grow.

“Gallium and germanium have recently gained attention because China is the main producer of each and the Chinese government has indicated that it will control export for strategic reasons. However, there are many other critical mineral markets Australia could have a role in,” Chris said.

“Large amounts of potential byproduct is either left in the ground, goes to tailings, or is exported as a contaminant in the primary product because they don’t usually cooperate, or separate easily, so you need process technology, and equipment.

“The cost of separating can be significant, and there’s a lot of competition on price, so the decision to separate out some of these materials is often made on strategic grounds, rather than on economics.”

Critical minerals: the quiet achievers gallium and germanium
CRU’s data shows in 2023, global germanium consumption was 220 metric tons, and by 2030 it will reach 280 metric tons. Credit: CRU Group

The need for strategic mineral management

As part of the Australian Critical Minerals Research and Development Hub launched late last year, a project is underway with Geoscience Australia and ANSTO. It sets out to estimate the resource potential of critical minerals like gallium, germanium and indium in Australian zinc deposits.

The project aims to evaluate the techno-economic opportunities for Australia to produce these minerals from existing operations and explore the technical recovery of gallium from existing bauxite refineries.

The goal is to make the extraction process economically viable while meeting the growing demand for these critical minerals.

One significant challenge in such small critical minerals markets is the risk of oversupply. Processing too much of a particular mineral can flood the market, driving down prices and making the extraction process economically unviable. This delicate balance requires careful management to ensure a steady supply without overwhelming the market.

Jason Needham is Principal Consultant at global mineral economics firm CRU International. He said supply and demand shocks were usually the cause of price volatility in the critical minerals market.

“Over-supply will generally cause a price decrease, whereas higher demand will often result in price increases,” Jason said.

“Small-volume markets, especially with niche critical minerals, are particularly sensitive. New mines or downstream plants coming online can drive a rapid increase in supply or even over-supply, resulting in a price drop. Often, market prices can also be affected by sentiment.”

“A good recent example of this is the nickel market, which saw a moderate price increase largely brought about by the civil unrest in New Caledonia, despite the jurisdiction only producing around five percent of global supply,” Jason said.

Developing strategies around Australia’s critical minerals is crucial, particularly for those produced in smaller quantities like our quiet achievers, germanium and gallium.

Without strategic planning, these valuable resources might lose their value, making them uneconomical to extract.

Australia’s growing role in critical mineral processing

“I expect Australia’s role in the critical mineral supply chain will mostly remain in the mining of raw materials. However, with the introduction of Government incentives we will increasingly see Australia adding value through downstream mineral processing and refining,” Jason said.

“A good example of this is lithium. In 2023, Australia produced 37% of global lithium raw materials in the form of mineral spodumene concentrates. However, Australia currently supplies only 5% of global lithium hydroxide. By 2028, CRU expects the country’s market share will increase to 12%, representing a five-fold increase in refining capacity.”

Extracting critical minerals was generally a challenging process, Chris said. Yet, processing them and turning them into engineered or functional materials would provide a massive uplift in value.

“An analogy is selling the wool, versus selling the yarn, versus selling the cloth, versus selling the suit,” Chris said.

“The wool might be worth something and you don’t need much processing to harvest it, but how much more is it worth if we take another step? These are some of the issues we have to consider. How far along the value chain does it make sense to go?”

Australia’s potential in the critical minerals market is immense. Particularly now, with lesser-known minerals like gallium and germanium playing pivotal roles in modern technology and renewable energy.

By strategically developing these resources, enhancing processing technologies, and moving further up the value chain, Australia can significantly bolster its economic resilience and global market position.

Leveraging these quiet achievers not only secures a stable supply for high-tech industries, but also ensures Australia’s sustainable and economically viable future in the critical minerals landscape.

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Though small in volume, gallium and germanium hold big potential for the global critical minerals market (2024, June 20)
retrieved 24 June 2024
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New all-optical approach could miniaturize night vision technology

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New all-optical approach could miniaturize night vision technology


New all-optical approach to revolutionize night vision technology
Infrared (IR) to visible (VIS) up-conversion for vision applications. a) Schematic of the nonlinear up-converter for infrared imaging, where infrared light illuminating an object and passing through a lens (L1) is coherently up-converted to visible light and captured by another lens (L2) to be finally observed on a conventional silicon-based camera. b) The ideal up-converter shall convert all rays, incident at different angles, with the same efficiency, i.e., H(k) = constant. Credit: Advanced Materials (2024). DOI: 10.1002/adma.202402777

Researchers from TMOS, the ARC Center of Excellence for Transformative Meta-Optical Systems, have made significant progress in their journey to deliver a new approach to night vision technology, creating an infrared filter that is thinner than a piece of cling wrap, and that could one day be placed on everyday eyewear, allowing the user to view the infrared and visible light spectrum at the same time.

Night vision devices have primarily been used by the military, hunting enthusiasts willing to lug around multipurpose binoculars, or photographers happy to carry around heavy lenses. This is due to the weight and bulk of the technology. The average person is not going for a night-time run with an additional kilo strapped to their forehead.

Miniaturizing night vision could therefore lead to widespread adoption. Creating night vision filters that weigh less than a gram and can sit as a film across a pair of traditional spectacles opens up new, everyday applications.

Consumer night vision glasses that allow the user to see the visible and infrared spectrum at the same time could result in safer driving in the dark, safer nighttime walks, and less hassle working in low-light conditions that currently require bulky and often uncomfortable headlamps.

In research published in Advanced Materials, TMOS researchers from the Australian National University demonstrate enhanced infrared vision non-linear upconversion technology using a non-local lithium niobate metasurface.

Traditional night vision technology, specifically image intensifiers, requires infrared photons to pass through a lens, encounter a photocathode that transforms these photons into electrons, and then go through a microchannel plate to increase the number of electrons generated. These electrons travel through a phosphor screen to be reconverted back to photons, producing an intensified visible image that can be seen by the eye.

Unlike thermal imaging systems, which operate at much longer wavelengths and often require cryogenic cooling to prevent thermal noise, image intensifiers used in night vision devices do not generally require such cooling. However, a high-quality night vision system, like the one described above, is heavy and bulky. Additionally, these systems often block visible light.

The metasurface-based upconversion technology requires fewer elements, drastically reducing its footprint. Photons pass through a single resonant metasurface where they are mixed with a pump beam. The resonant metasurface enhances the energy of the photons, drawing them into the visible light spectrum—no conversion of electrons needed. It also works at room temperature, eliminating the need for bulky and heavy cooling systems.

In addition, traditional infrared and visible imaging systems cannot produce identical images, as they capture images from each spectrum side-by-side. By using up-conversion technology, imaging systems can capture both the visible and non-visible in one image.

The work is an improvement on the researchers’ original technology, which featured a gallium arsenide metasurface. Their new metasurface is made from lithium niobate, which is fully transparent in the visible range, making it far more efficient. In addition, the photon beam is spread over a wider surface area, limiting angular loss of data.

Lead author Laura Valencia Molina says, “People have said that high efficiency up-conversion of infrared to visible is impossible because of the amount of information not collected due to the angular loss that is inherent in non-local metasurfaces. We overcome these limitations and experimentally demonstrate high efficiency image up-conversion.”

Author Rocio Camacho Morales says, “This is the first demonstration of high resolution up-conversion imaging from 1550 nm infrared to visible 550 nm light in a non-local metasurface. We choose these wavelengths because 1550 nm, an infrared light, is commonly used for telecommunications, and 550 nm is visible light to which human eyes are highly sensitive.

“Future research will include expanding the range of wavelengths the device is sensitive to, aiming to obtain broadband IR imaging, as well as exploring image processing, including edge detection.”

Chief Investigator Dragomir Neshev says, “These results promise significant opportunities for the surveillance, autonomous navigation, and biological imaging industries, among others. Decreasing the size weight and power requirements of night vision technology is an example of how meta-optics, and the work TMOS is doing, is crucial to Industry 4.0 and the future extreme miniaturization of technology.”

More information:
Laura Valencia Molina et al, Enhanced Infrared Vision by Nonlinear Up‐Conversion in Nonlocal Metasurfaces, Advanced Materials (2024). DOI: 10.1002/adma.202402777

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ARC Centre of Excellence for Transformative Meta-Optical Systems (TMOS)

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New all-optical approach could miniaturize night vision technology (2024, June 3)
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The limits of ChatGPT for scriptwriting

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The limits of ChatGPT for scriptwriting


Censoring creativity: The limits of ChatGPT for scriptwriting
This diagram shows the process by which the researchers audited ChatGPT, using the first episode of Game of Thrones as an example. Credit: Yaaseen Mahomed, Charlie M. Crawford, Sanjana Gautam, Sorelle A. Friedler, Danaë Metaxa

Last year, the Writers Guild of America (WGA) labor union, which represents film and TV writers, went on strike for nearly five months, in part to regulate AI’s role in scriptwriting. “Alexa will not replace us,” read one picket sign.

Now, researchers at Penn Engineering, Haverford College, and Penn State have presented a paper at the 2024 Association of Computing Machinery Conference on Fairness, Accountability and Transparency (ACM FAccT) that identifies a previously unreported drawback to writing scripts using OpenAI’s ChatGPT: content moderation so overzealous that even some PG-rated scripts are censored, potentially limiting artistic expression.

The research is published in The 2024 ACM Conference on Fairness, Accountability, and Transparency.

The guidelines established by the agreement between the WGA and the Association of Motion Picture and Television Producers (AMPTP) that ended the strike permitted certain uses of AI in scriptwriting. While both the WGA and AMPTP agreed that AI cannot be credited as a writer, they allowed the use of AI as a tool in the creative process.

The new study raises questions about the efficacy of this approach, showing that automated content moderation restricts ChatGPT from producing content that has already been permitted on television. ChatGPT’s automated content moderation filters for topics including violence, sexuality and hate speech to prevent the generation of inappropriate or dangerous content.

In the study, which examined both real and ChatGPT-generated scripts for IMDb’s 100 most-watched television shows, including Game of Thrones, Stranger Things and 13 Reasons Why, ChatGPT flagged nearly 20% of scripts that ChatGPT itself generated for content violations, and nearly 70% of actual scripts from the TV shows on the list, including half of tested PG-rated shows.

“If AI is used to generate cultural content, such as TV scripts, what stories won’t be told?” write the paper’s co-senior authors, Danaë Metaxa, Raj and Neera Singh Assistant Professor in Computer and Information Science (CIS) at Penn Engineering, and Sorelle Friedler, Shibulal Family Computer Science Professor at Haverford College.

“We tested real scripts,” says Friedler, “and 69% of them wouldn’t make it through the content filters, including even some of the PG-rated ones. That really struck me as indicative of the system being a little overager to filter out content.”

Censoring creativity: The limits of ChatGPT for scriptwriting
Researchers found that even shows rated TV-PG were flagged by ChatGPT for content violations. Credit: University of Pennsylvania

Prompted by the writers’ strike, the project began with Friedler and Metaxa wondering if a large language model (LLM) like ChatGPT could actually produce a high-quality script. “We started trying to produce scripts with LLMs,” recalls Metaxa, “and we found that before we could even get to the question of whether the script is high quality, in many cases we were not able to get the LLM to generate a script at all.”

In one instance, given a prompt drawn from a summary of an episode of Game of Thrones, ChatGPT declined to produce the script and responded with a red warning, “This content may violate our usage policies.”

To study ChatGPT’s content moderation system, the researchers employed a technique known as an “algorithm audit,” which draws conclusions about software whose internal workings remain proprietary by analyzing the software’s outputs.

The team, which also included first author Yaaseen Mahomed, a recent master’s graduate in CIS at Penn Engineering, Charlie M. Crawford, an undergraduate at Haverford, and Sanjana Gautam, a Ph.D. student in Informatics at Penn State, repeatedly queried ChatGPT, asking it to write scripts based on summaries of TV show episodes pulled from the Internet Movie Database (IMDb) and Wikipedia.

For each script request, the team probed ChatGPT’s “content moderation endpoint,” a tool accessible to programmers that returns a list of 11 categories of prohibited content (including “hate,” “sexual” and “self-harm“) and indicates which categories, if any, were triggered by the prompt, as well as a score between 0 and 1 of ChatGPT’s confidence in its assessment of a violation for each category.

In effect, this approach allowed the team to determine why certain script-writing requests were censored, and to deduce the sensitivity of ChatGPT’s content moderation settings to particular topics, genres and age ratings.

As the paper’s authors acknowledge, content moderation is an essential part of LLMs, since removing inappropriate content from the models’ training data is extremely difficult. “If you don’t bake in some form of content moderation,” says Friedler, “then these models will spew violent and racist language at you.”

Still, as the researchers found, overzealous content moderation can easily tip into censorship and limit artistic expression. Aggregating over 250,000 outputs from the content moderation endpoint allowed the researchers to observe patterns in ChatGPT’s choice to permit (or not permit) itself to write certain scripts.

Censoring creativity: The limits of ChatGPT for scriptwriting
Certain categories were flagged for content violations more than others; real scripts had the highest rates of content violations. Credit: University of Pennsylvania

Among the researchers’ most notable findings is that different categories of potentially harmful content flag at different rates. The researchers found that scripts were very frequently flagged for violent content, driving many of the other findings, such as a high likelihood of flagging for crime and horror shows. Real scripts had high relative scores for sexual content, while GPT-generated scripts were less likely to generate content deemed inappropriately sexual in the first place.

In many cases, content seen as appropriate for TV viewers—and watched by millions of fans—was still identified as a content violation by Open AI.

TV scripts that mention self-harm, for instance, could be dangerous, or a form of artistic expression. “We need to be talking about topics like self-harm,” says Metaxa, “but with a level of care and nuance, and it’s just not in the interest of a company producing this kind of tool to put in the enormous amount of effort that it would require to walk that line carefully.”

One aspect of ChatGPT that the researchers hope to explore further is the extent to which the software’s content moderation settings filter out content related to marginalized identities. As Friedler puts it, “This type of filtering may filter out some voices and some representations of human life more than others.”

Indeed, the researchers found that ChatGPT was more likely to flag scripts describing female nudity as improperly sexual than scripts describing male nudity, and that ChatGPT was more likely to rate scripts that included descriptions of disabilities and mental illness as violent, although the researchers say that both trends need to be further investigated.

“Ironically,” says Metaxa, “the groups that are likely to be hurt by hate speech that might spew from an LLM without guardrails are the same groups that are going to be hurt by over-moderation that restricts an LLM from speaking about certain types of marginalized identities.”

In the context of the recent strike, the researchers affirm the necessity of both content moderation and artistic expression, neither of which they believe should be left entirely in the hands of autonomous systems. “Content moderation is far from a solved problem and undeniably important,” the researchers conclude. “But the solution to these issues must not be censorship.”

This study was conducted at the University of Pennsylvania School of Engineering and Applied Science, Haverford College and The Pennsylvania State University.

More information:
Yaaseen Mahomed et al, Auditing GPT’s Content Moderation Guardrails: Can ChatGPT Write Your Favorite TV Show?, The 2024 ACM Conference on Fairness, Accountability, and Transparency (2024). DOI: 10.1145/3630106.3658932

Citation:
Censoring creativity: The limits of ChatGPT for scriptwriting (2024, June 12)
retrieved 24 June 2024
from https://techxplore.com/news/2024-06-censoring-creativity-limits-chatgpt-scriptwriting.html

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A novel elderly care robot could soon provide personal assistance, enhancing seniors’ quality of life

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A novel elderly care robot could soon provide personal assistance, enhancing seniors' quality of life


A novel elderly care robot could soon provide personal assistance, enhancing seniors' quality of life
General scheme of ADAM elements from back and front view. Credit: Frontiers in Neurorobotics (2024). DOI: 10.3389/fnbot.2024.1337608

Worldwide, humans are living longer than ever before. According to data from the United Nations, approximately 13.5% of the world’s people were at least 60 years old in 2020, and by some estimates, that figure could increase to nearly 22% by 2050.

Advanced age can bring cognitive and/or physical difficulties, and with more and more elderly individuals potentially needing assistance to manage such challenges, advances in technology may provide the necessary help.

One of the newest innovations comes from a collaboration between researchers at Spain’s Universidad Carlos III and the manufacturer Robotnik. The team has developed the Autonomous Domestic Ambidextrous Manipulator (ADAM), an elderly care robot that can assist people with basic daily functions. The team reports on its work in Frontiers in Neurorobotics.

ADAM, an indoor mobile robot that stands upright, features a vision system and two arms with grippers. It can adapt to homes of different sizes for safe and optimal performance. It respects users’ personal space while helping with domestic tasks and learning from its experiences via an imitation learning method.

On a practical level, ADAM can pass through doors and perform everyday tasks such as sweeping a floor, moving objects and furniture as needed, setting a table, pouring water, preparing a simple meal, and bringing items to a user upon request.






Credit: Gonzalo Espinoza / Universidad Carlos III Robotics Lab

In their review of existing developments in this arena, the researchers describe several robots that have been recently developed and adapted to assist elderly individuals with both cognitive tasks (such as memory training and games to help alleviate dementia symptoms) and physical tasks (such as detection of falls by users, followed by notification actions; monitoring and assisting users with managing usage of home automation systems; and providing assistance such as retrieving items from the floor and storing items in user-inaccessible areas in the home).

Against this backdrop, the team behind this new work aimed to design a robot with unique features to assist users with physical tasks in their own homes.

Next-level personal care through modular design and a learning platform

Several features set ADAM apart from existing personal care robots. The first is its modular design, which includes a base, cameras, arms and hands providing multiple sensory inputs. Each of these units can work independently or cooperatively at a high or low level. Importantly, this means that the robot can support research while meeting users’ personal care needs.

In addition, ADAM’s arms themselves are collaborative, allowing for user operation, and can move according to the parameters of the immediate environment. Moreover, as a basic safety feature of the robot’s design, it continuously considers the people present in the environment in order to avoid collisions while providing personal care.

A novel elderly care robot could soon provide personal assistance, enhancing seniors' quality of life
Visual description of the ADAM service robotic platform and its four main capabilities for the development of elderly care tasks: perception of the environment, navigation and environmental comprehension, social navigation and manipulation learning. Credit: Frontiers in Neurorobotics (2024). DOI: 10.3389/fnbot.2024.1337608

Technical aspects

ADAM stands 160 cm tall—about the height of a petite human adult. Its arms, whose maximum load capacity is 3 kg, extend to a width of 50 cm. The researchers point out that they designed the robot to “simulate the structure of a human torso and arms. This is because a human-like structure allows it to work more comfortably in domestic environments because the rooms, doors, and furniture are adapted to humans.”

Batteries in ADAM’s base power its movements, cameras, and 3D LiDAR sensors. With all systems running, the robot’s minimum battery life is just under four hours, and battery charging takes a little over two hours. It can rotate in place and move forward and backward, but not laterally.

ADAM includes two internally connected computers—one for the base and the other for the arms—and a WiFi module for external communication. An RGBD camera and 2D LiDAR help to control basic forward movement, complemented by additional RGBD and LiDAR sensors positioned higher in the unit that expand its perception angle and range.

A novel elderly care robot could soon provide personal assistance, enhancing seniors' quality of life
Visualization of the ADAM model in simulation, where the reference systems of the base and arms can be seen. The reference frame transformations between them are schematically represented. Credit: Frontiers in Neurorobotics (2024). DOI: 10.3389/fnbot.2024.1337608

The additional RGBD sensor is a Realsense D435 depth camera that includes an RGB module and infrared stereo vision, while the additional LiDAR sensor provides 3D spatial details that work with a geometric mapping algorithm to map the entirety of objects in the environment.

The approximate range of motion of ADAM’s arms is 360o, and a parallel gripper system (the “Duck Gripper”) comprises its hands. Within this system is an independent power supply and a Raspberry Pi Zero 2 W board that communicates via WiFi to a corresponding robot operating system (ROS) node. Force-sensing resistors (FSRs) on each gripper jaw help the hands grasp and pick up objects with appropriate amounts of force.

Acing an early test involving collaboration

The researchers report that they have successfully tested ADAM as part of the Heterogeneous Intelligent Multi-Robot Team for Assistance of Elderly People (HIMTAE) project. Collaborating with researchers from Spain’s University of Cartagena and Sweden’s University of Örebro, they presented ADAM as an integral part of a team including multiple robots and home automation systems.

A novel elderly care robot could soon provide personal assistance, enhancing seniors' quality of life
Information captured by the perception system. The main sources of information are the RGB image and the corresponding depth values from the RGBD sensor and the 3D spatial information from the LiDAR sensor, which covers a full room. Credit: Frontiers in Neurorobotics (2024). DOI: 10.3389/fnbot.2024.1337608

Within the test, another robot (“Robwell”) had established an “empathetic relationship” with users, who wore bracelets to monitor their mental and physical states and communicate them to Robwell.

Roswell, in turn, would remind the users to drink water when needed and communicate with both the home automation system and ADAM regarding specific user needs. ADAM’s role was to perform tasks within the kitchen, preparing and delivering food or water to Robwell, which would then provide it to the users.

The users who participated in the test returned an average value of 93% satisfaction with its outcome. The researchers note that employing two robots was effective; Robwell could monitor and engage with users while ADAM worked in the kitchen. Users were also able to enter the kitchen and interact with ADAM while it performed tasks, and ADAM could likewise interact with users while they performed tasks.

  • A novel elderly care robot could soon provide personal assistance, enhancing seniors' quality of life
    Duck Gripper final design with an exploded view of the gripper and its main components. Credit: Frontiers in Neurorobotics (2024). DOI: 10.3389/fnbot.2024.1337608
  • A novel elderly care robot could soon provide personal assistance, enhancing seniors' quality of life
    Duck Gripper performance test movements. From left to right, and from top to bottom. The gripper grabs the object on the workstation. The gripper displaces away from the robot. The end effector rotates 90° clockwise. The gripper displaces toward the robot. The end effector rotates 90° counterclockwise. The gripper opens to release the object. Credit: Frontiers in Neurorobotics (2024). DOI: 10.3389/fnbot.2024.1337608

What’s needed next?

As the HIMTAE test results were obtained within a controlled laboratory environment, the team cautions that future tests must take place in authentic domestic environments to determine user satisfaction with ADAM’s performance.

Looking ahead, the researchers observe, “The perception system is fixed, so in certain situations, ADAM will not be able to detect specific parts of the environment. The bimanipulation capabilities of ADAM are not fully developed, and the arms configuration is not optimized.” In addition to focusing on improvements in these areas, they write that “new task and motion planning strategies will be implemented to deal with more complex home tasks, which will make ADAM a much more complete robot companion for elderly care.”

More information:
Alicia Mora et al, ADAM: a robotic companion for enhanced quality of life in aging populations, Frontiers in Neurorobotics (2024). DOI: 10.3389/fnbot.2024.1337608

© 2024 Science X Network

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A novel elderly care robot could soon provide personal assistance, enhancing seniors’ quality of life (2024, February 19)
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Car dealers across US are crippled by a second cyberattack

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Car dealers across US are crippled by a second cyberattack


car dealership
Credit: Unsplash/CC0 Public Domain

Auto retailers across the U.S. suffered a second major disruption in as many days due to another cyberattack at CDK Global, the software provider on which thousands of dealers rely to run their stores.

CDK informed customers on Thursday of the incident that had occurred late the prior evening. The company shut down most of its systems again, saying in a recorded update that it doesn’t have an estimate for how long it will take to restore services.

“Our dealers’ systems will not be available at a minimum on Thursday,” the company said.

On what otherwise would have been a busy U.S. holiday for business, dealers reliant on CDK were unable to use its systems to complete transactions, access customer records, schedule appointments or handle car-repair orders. The company serves almost 15,000 dealerships, supporting front-office salespeople, back-office support staff and parts-and-service shops.

AutoNation Inc. led shares of publicly listed dealership groups lower Thursday, falling as much as 4.6% in intraday trading. Lithia Motors Inc., Group 1 Automotive Inc. and Sonic Automotive Inc. also slumped.

Greg Thornton, the general manager of a dealership group in Frederick, Maryland, said his stores’ CDK customer-relations software had been down since early Wednesday morning.

“I can only assume that CDK is working all hands on deck to resolve this,” said Thornton, whose group includes Audi and Volvo stores. “We’ve had no conversations with them in person or over the phone.”

Sam Pack’s Five Star Chevrolet outside Dallas sold four vehicles on Wednesday despite the initial outage, but has had to adapt, such as by handling some tasks on paper until service is restored, said Alan Brown, the store’s general manager. While sales staff are able to submit approvals to lenders, the outage has blocked other elements of a transaction, such as obtaining titles.

“We’re still doing business,” Brown said. “It’s just not our normal flow.”

The CDK provider hasn’t yet provided a timeline for when its systems will be available again, he said.

The National Automobile Dealers Association said Wednesday it was actively seeking information from CDK to determine the nature and scope of the cyber-incident.

CDK was spun off by Automatic Data Processing Inc. in 2014, then agreed to be acquired in April 2022 by the investment company Brookfield Business Partners in an all-cash deal valued at $6.4 billion.

2024 Bloomberg L.P. Distributed by Tribune Content Agency, LLC.

Citation:
Car dealers across US are crippled by a second cyberattack (2024, June 20)
retrieved 24 June 2024
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