Morning Brew Daily - AI Catching Students Cheating & Costco Banks on Gold Bars

Episode Date: April 10, 2024

Episode 298: Neal and Toby dive into the latest study that says millions of students are using AI for their papers and institutions might have a tool to detect it…AI. Then, circling back on some lat...est developments on a Boeing whistleblower, Tesla settles for a fatal autopilot accident, the Ohio train accident settlement, and Costco gold shines bright. Also, a chili crunch conflict that has Momofuku’s David Chang (hot) in the middle of it all. Next, Dude Perfect is moving onto bigger and better things with their latest $100M funding. Lastly, in case you wanted to step out of your house for a quick bite because you’ve been in back-to-back Zoom meetings, you’ll be shocked to get one more Zoom meeting, except this time it’s with the restaurant’s cashier.  00:00 - Intro 2:30 - AI detection tools 7:00 - Circling back on big stories 14:30 - Chili crunch conflict 18:20 - Dude Perfect World? 21:20 - Zoom cashier Get your Morning Brew Daily Merch HERE: https://shop.morningbrew.com/products/morning-brew-daily-sweatshirt?utm_medium=multimedia&utm_source=podcast&utm_campaign=mbd&utm_content=shownotes Listen to Morning Brew Daily Here: https://link.chtbl.com/MBD Watch Morning Brew Daily Here: https://www.youtube.com/@MorningBrewDailyShow Disclosures: Robinhood Gold Card is offered by Robinhood Credit, Inc., and is issued by Coastal Community Bank, pursuant to a license from Visa U.S.A. Inc. Terms apply to the Robinhood Gold Card rewards program and are available at http://robinhood.com/creditcard. Fee applies to Robinhood Gold subscription. Annual Robinhood Gold subscription is required to apply for and maintain the card and does not include a 30 day free trial. Visit http://robinhood.com/gold for more information. Some limitations or conditions may apply. Robinhood Financial brokerage account required to redeem cash back. See rewards program terms for details. Rewards program terms are subject to change. Investing involves risk. Other fees may apply. Robinhood Gold is offered through Robinhood Financial LLC and is a subscription offering premium services for a fee. Robinhood Financial LLC (member SIPC) is a registered broker dealer. Learn more about your ad choices. Visit megaphone.fm/adchoices

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Starting point is 00:00:28 Good morning, Brudeaily Show. I'm Neil Fryman. And I'm Toby Howell. Today, can you own the trademark to a condiment? David Chang wants to find out, and he's burning bridges along the way. Then teachers are catching students using AI to write their papers at an alarming rate, but are the tools they are using reliable? It's Wednesday, April 10th.
Starting point is 00:00:48 Let's ride. The viewership numbers for the men's and women's college basketball national title games are in, and the women have won. The men's title game on Monday between Yukon and Purdue average 14. point 82 million viewers. A far cry from the record 18.87 million that tuned in to watch Iowa take on South Carolina. Neil, are we even surprised? This is a remarkable milestone that reflects the rise of women's college basketball.
Starting point is 00:01:18 It's the first time that the women have outdrew the men in the national title game. There were some structural factors at play here. The men's game was at 920 on a Monday. I mean, I did not stay up for it. And it was also on cable TV. It was on TBS. Meanwhile, the women were at 3.30 on a Sunday and they were on ABC. So just a wider viewership possible, the denominator was bigger. I still don't think that takes away from how big the women's gain
Starting point is 00:01:45 has grown. And even all things being equal, the women still might have outdrew the men. Absolutely. Now, all that's left is for the TV contracts to kind of catch up and reflect the reality of the situation. Now let's hear from our friends over at Robin Hood. Today, I want to talk about the new Robin Hood gold card. There are a lot of great credit cards out there, but Robin Hood's precious piece of metal stands out. The gold card gives you 3% unlimited cashback on not just one, but all purchase categories. Of course, terms apply. Your morning coffee, 3% cash back. That small tote bag that that looks like a fish, 3% cash back. Always knew you were a tote bag guy, Toby. Robin Hood has always been about low or no fees. Now they're also giving you a little sugar back every time you swipe.
Starting point is 00:02:30 not too shabby. Not too shabby at all. But you haven't even mentioned the best part yet. 5% cashback on travel when you book through their travel portal. The card is dropping soon. So get on the wait list now and start planning that travel. You can even bring your fish tote bag. Don't tempt me, Neil.
Starting point is 00:02:46 I'll be out of office before you know it. Well, don't go yet. Learn more about Robin Hood Gold card in the Robin Hood app in the App Store or Google Play Store. And you can find all the terms and conditions in the description of this podcast. It's time to refresh your yard. during spring backyard days at the Home Depot. Get low prices guaranteed on propane grills starting at $179, like the next grill
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Starting point is 00:03:24 Exclusion supplies to homedipo.com slash price match for details. Remember when chat, GBT, came out a year and a half ago, and your first thought was, dang, I bet people are going to use that to cheat a lot. Well, it turns out you are 100% correct. Students have submitted more than 22 million papers this past year that most likely use the assistance of generative AI, according to the plagiarism checker turned it in. Since Turned It In rolled out its AI detection software last year. It is reviewed more than 200 million papers, mostly written by high school and college students. 11% contain language,
Starting point is 00:03:57 likely written by AI, while 3% of papers were flagged for having 80% or more of their content written by AI. But the flip side of using AI-powered programs like the one Turned in offers to detect AI software can still misplagiarized work or worse, spit out false positives that can unnecessarily damage a student's academic career. Neil, this was always going to be an issue as soon as generative AI entered our lives. But are these tools to catch plagiarism, a net positive for teachers? Yeah, it's absolutely a really interesting debate. One thing that is clear, though, I think from Turnitin's data and just broadly, students are using chat GPT a lot. If you look at chat GPT usage charts, it certainly fluctuates throughout the year. I remember last summer,
Starting point is 00:04:44 there was a dip in chat GPT usage and everyone was wondering, oh my God, is chat GPT just not popular anymore? People moving on. Is the AI boom over? And then it started ticking back up in September and everyone was like, oh, yeah, people, people used it in school. So that was, it definitely fluctuates based on school. So I think from this turn it in data and from the chat GPT usage data, let's just establish one thing that it is being used a lot in schools and by students for maybe kosher purposes, but maybe not. Right. And detecting the use of AI is not as cut and dry as detecting plagiarism because generated text that has spit out of these chatGBT and other generative AI programs. It is original text. It's not directly pulled from any sources. And there's
Starting point is 00:05:30 also a little bit of nuance on how students actually use it. Some ask chatbots to write their paper and they pull large chunks from it, but other people may just use it as a brainstorm partner or someone to check their sentence structure or something like that. So there definitely is a gray area there, which has caught a lot of students off guard. There was one video that went very viral on TikTok of a student that said, I was using Grammarly to help check my sentence structure and help check my grammar. I ended up getting my whole paper flagged for using AI. And you don't really think of Grammarly as this generative AI software,
Starting point is 00:06:04 but these turn it in and other software checkers are picking up on that. It can lead to really disastrous outcomes for students who get flagged for cheating. Yeah. And I thought it was interesting. that Turnitin was boasting about how many papers it caught using ChatGPT because this tool has been under a lot of criticism by universities and colleges. It's been dropped by some really big names over the past year. Vanderbilt, Michigan State Northwestern University of Texas all said they were not using Turnitin anymore because of the risk of false positives. Turnitin said that it may
Starting point is 00:06:38 not. It may flag 1% of all papers that did not use chat GPT as using it. And Vanderbilt in its blog post explaining its decision said that, you know, over the course of a semester, it may get 75,000 papers turned in, which means for the 1% false positive rate, you get 750 papers that were flagged as using AI that weren't. And as you mentioned before, there's no way of confirming that this was used, used AI. So it's literally your word against the students. word, and you're just in this weird position where you may say, look, student, you used AI, and they go, no, I didn't. But so the reason, the way you get around this is you just don't use it.
Starting point is 00:07:19 Right. I mean, that is a big thing. We'll see if students actually follow through on that. The final thing I wanted to emphasize here is that a study found last year that of the AI detecting tools out there, 61% had false positives rates when reviewing exams that test non-native English speakers. So if English is not your first language, you are more likely to set off an AI detector, which is just another layer on this new problem of using AI to check if you're using AI.
Starting point is 00:07:48 It's just a lot more nuanced and complicated than maybe turn it and wants you to think. All right. Sometimes you may hear a news story on the show and think, well, that was interesting. I wonder whatever happened with that. Well, we'll give you the latest updates in a segment we're calling circle back to borrow your favorite corporate email jargon. First, let's circle back to Boeing, whose safety culture is being put under the microscope yet again. A whistleblower went public yesterday, alleging that the sections of the fuselage for the 787 dreamliner were improperly fastened together and could break apart mid-flight after years of service. Boeing said it knew about the issue, had fixed it, the claims were inaccurate and that its 787s are 100% safe for flying.
Starting point is 00:08:30 Still, lawmakers are not giving Boeing the benefit of the doubt and have already invited the whistleblower a veteran quality engineer named Sam Salipur to testify at a hearing on Capitol Hill next week to explain what he saw. And if that wasn't enough trouble for Boeing in one day, it announced miserable delivery numbers for Q1, 83 planes down significantly from 130 last year. Feels like there's something new each day with this company. Yeah, Salapur's allegations are pretty, not catastrophic for Boeing, but it is interesting to see what he's saying. The meat of his claims are that crews assembling the plane are failing to fill these tiny gaps
Starting point is 00:09:09 of the manufactured parts that you have to put together to create a fuselage. These allegations aren't new. As you mentioned, FAA has already looked into. They've halted deliveries of Dreamliners while it looked in the gaps. It eventually cleared it once again. But Salipur says he's seen some stuff that the FAA maybe hasn't. This is a quote from him. I literally saw people jumping on the pieces of the airplane to get them to align by jumping up and down.
Starting point is 00:09:32 You're deforming parts so those holes align temporarily, but that's not how you build an airplane. That is quite the claim to say that Boeing engineers were literally using their feet to jump up and down to fit the pieces together. But we'll see if that kind of passes up to the muster as he talks to Congress. Yeah, it absolutely is just another blow to the crisis of confidence for Boeing. The 787 has been under the microscope for a while now. It had to halt production for two years at this South Carolina plant. It's also the first plane that Boeing built where they farmed out all of the components to various suppliers across the country.
Starting point is 00:10:08 They didn't build it all in house. So they're getting all these huge components from various companies that are giving it to them. They're assembling it in South Carolina. And it has not worked out perfectly. This plane has had a lot of trouble. For our next circle back segment, Tesla has settled the high-profile wrongful death lawsuit brought against the company.
Starting point is 00:10:27 by the family of a father of two who died in 2018 after crashing into a highway barrier with the autopilot feature switched on. Remember, this was the crash that the National Transportation Safety Board investigated and came to the conclusion in 2020 that Tesla's self-driving system was at least partly to blame for the accident. It was a high-profile case that put Tesla's tech in the spotlight, especially the way Elon and the company markets it, which has been criticized for making people think it's safe to drive without needing to stay attentive to the the road. But right as jury selection in the trial were set to get underway on Monday, a settlement was reached, and now Tesla can avoid airing out any evidence or testimonies that came
Starting point is 00:11:06 up during the case. Yeah, this is big that Tesla settled it because this trial would have given the public a view of the tech behind autopilot, which it certainly does not want to happen. But there's, Tulsa's self-driving tech is really the future of this company. It's not really making that many new cars anymore, which has hammered its valuation over the course. course of this year. So Elon needs to drum up support and enthusiasm for self-driving tech. One way he did that is saying that they're going to unveil Robotaxy, which no one really knows what that means, but Robotaxy, capital R, is coming, will be introduced on August 8th. And that helps Tesla stock a little bit because right now, if you look at how Tesla is valued at
Starting point is 00:11:48 a company, its automated driving software specifically is valued at more than its auto business. So it kind of needs to figure this. And Elon Musk himself, Elon Musk himself has said that their market cap relies 100% on this automated driving software. So yes, this case does fit into that larger piece of the puzzle. And Tesla has done well across cases that are similar, where it's face-a-case last April where a jury cleared Tesla responsibility for crash in the previous years. And then in October, it won another case. So it has been winning these autopilot cases, which are, as you said, absolutely key to the future of the company. Now let's circle back to the toxic train derailment in East Palestine, Ohio last February.
Starting point is 00:12:34 Yesterday offered some closure. The company who's trained derailed Norfolk Southern agreed to pay $600 million to settle a class action lawsuit stemming from the accident when hazardous chemicals were released into the community, sparking health and environmental concerns. If this settlement is approved by a judge, tens of thousands of people in the area will be eligible for compensation, and the plaintiff's lawyers say this is a big step in putting this traumatic period behind them. Notably, Norfolk Southern did not admit liability or fault as part of the deal. Still, it's a hefty sum that comes on top of more than $1 billion in costs for an
Starting point is 00:13:09 accident that has shown a harsh light on safety standards in the rail industry. Right. This was circling back to this story. Remember there's that period where it seemed like trains were derailing left and right. This was a big, big disaster. We remember the photos that came out of this where just the massive mushroom crowd of these chemicals burning. And now, hopefully, that community is getting some closure around it. The National Transportation Safety Board is still conducting that full investigation into it, but it looks like they do think there's this overheating of a wheeled train bearing on one of the rail cars that caused it to happen.
Starting point is 00:13:43 So still looking into it, but hopefully this community, East Palestine, gets a little closure around that accident. Our final circle back story takes us to the wide and expansive aisles of Costco. where free samples fall from the sky and gold bars spill from itself. That last part is only a slight exaggeration because, if you recall, Costco began selling one ounce bars made of nearly pure 24-carat gold online last year, and boy, has it gone well. According to an estimate from Wells Fargo, Costco is selling as much as $200 million worth of gold bars per month right now.
Starting point is 00:14:17 At an estimated $2,400 a bar based on the current price of gold, that means Costco is moving somewhere in the neighborhood of $83,000. bars a month. My question is, when are they going to start handing out free samples of that meal? That'd be nice to walk into a Costco one Saturday, and you're like, all right, there's my taquitos, there's my fish tacos, and I'll take a gold bar. This is very helpful for the top line if you want to boost your revenue numbers. For the bottom line, in terms of profit, this isn't the most high margin business because when someone buys a stick of gold, what is it, a gold bar, you have to ship it. And they're not. They're not.
Starting point is 00:14:53 really charging that much more than the list price for gold. They're just charging 2% more. And Costco offers all of these cashback opportunities. So in terms of profit, they're not making a huge profit. But it's accounting for 3% now of their total general merchandise sales, these gold bars. Yeah, it's definitely a popular time for gold in general. So it's almost a marketing tactic as well because gold is seen as an inflation head. It's seen as a hedge against uncertainty. And obviously, there's a lot of uncertainty in the global economic markets right now. Up next, a spicy trademark battle over the name Chili Crunch, plus a look into the YouTube empire of Dude Perfect.
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Starting point is 00:16:26 When you want savings, not surprises. It matters where you stay. Hilton, for the stay. Celebrity chef, David Chang's Momo Fuku Food Empire is being roughed up more than the diners in the menu for its attempt to own the trademark to a condiment. That condiment is chili crunch. The oily, garlicky concoction you drizzle on your dumplings,
Starting point is 00:16:49 noodles, eggs goes with everything. Some mom-and-pop producers of chili crunch said they received cease and desist letters from Momofuku, telling them to knock it off with that name or face the legal wrath of David Chang's well-resourced machine. Momofuku sells a popular brand of Chili Crunch, and it recently applied with the U.S. Patent Trademark Office for a trademark. In practical terms, it wants to be the only chili crunch in town. But it's facing an uproar from the food industry, which says,
Starting point is 00:17:18 chili crunch isn't yours to own. You're literally trying to control a condiment like ketchup, mustard, or mayo. Imagine going into a grocery store and hot sauce is a capital H. And there's only one brand that ever sells it. That is what David Chang is being accused of with chili crunch. In response, Momofuku says it's created a differentiated product from what's out there. And it's doing what any reasonable company would do and protecting its brand. Still, Chang might be the most hated man in food right now.
Starting point is 00:17:45 Yeah, it's definitely, it feels like a David versus Goliath story. You never want to be the Goliath here who is hitting down and sending cease and letters to what people think is not something that a trademark should be granted for at all. Like, you wouldn't trademark ketchup. You wouldn't trademark mayonnaise or anything like that. So why is David Chang trying to trademark Chili Crunch? And that is kind of where that has a lot of lawyers confused because David Chang did actually secure the trademark for Chili Crunch. Chili with an E though. Now he's going after chili with an I. He negotiated getting that chili with an E deal from another company. And a lot of lawyers were looking at
Starting point is 00:18:24 in this and saying like, how did that one even get granted in the first place? So it's all this legal gray area. David Chang saying, listen, I'm just trying to create a brand here. We think we've created a unique product, but a lot of people are seeing it differently. Right. To get a trademark, you need to be, you need to have this particular product associated with a single brand. So when I think of chili crunch, I should immediately be thinking of Momo Fuku's chili crunch. It should be the only thing I think about. But when you see chili crunch or chili crisp or any of these wide variety of ways you call it because it is untranslatable from China and Asia where it originally came from. You don't really think about who made it. You think,
Starting point is 00:19:03 okay, that's what's in the jar. I'm buying chili crisp. I went into her chili crunch. I went into my refrigerator yesterday because I have a bunch of these bottles. And I didn't, I hadn't heard of any of these brands before. You know, I had no affiliation or there's no conception of what particular brand makes this. And I think that's what the argument is, is this is a condiment. It's not a particular product or brand associated with Momofuku. The one thing I can see on David Chang's side here is that some companies have actually defended the rights to call their product something that has become shorthand for an entire category of products. The examples that come to mind are Xerox, Band-Aid, Velcro. Those are brands that have become just, or like Kleenex, for instance.
Starting point is 00:19:47 That is a brand of tissue, but you just call them Kleenexes at this point. So I think David Chang's thinking that maybe if we just exert our might here and we say chili crunch is ours, people will start thinking of him. But I think you're right. It's definitely a bit of an uphill battle. And it's also just not a great PR look at it. No, they're calling him a trademark bully. But a lot of so much money is at stake. This category of condiment hot sauce is just booming right now. It is certainly delicious. But the hot sauce industry is at $3 billion and it's expected to double over the next 10 years. So there's a lot of money at stake. And this branding is so important and marketing is big in the particular food industry.
Starting point is 00:20:24 If you've been on YouTube anytime in the last 15 years, you no doubt have come across a video from a gaggle of guys who specialize in trick shots and call themselves Dude Perfect. If you haven't heard of them, imagine what a group of mid-30s guys who call themselves Dude Perfect might look like, and you've probably nailed it. Dude Perfect is in the news because they just raised $100 million from the private investment firm Highmount Capital.
Starting point is 00:20:49 It's part of their goal to move from a one-dimensional. 60 million subscriber YouTube channel to a full-fledged media empire. And they're well on their way. This is Dude Perfect's first raise, but revenue is expected to top $50 million this year, up from $25 million just two years ago. And it currently has a team of 25 people working for the company. Neal, Dude Perfect is one of those groups that is synonymous with YouTube. So it's interesting to see them take the leap into racism cast to really try to scale this thing. Yeah, I mean, go back to 2009 in the early days of YouTube. It was just four years old. and they did this trick shot, the longest basketball shot ever was it?
Starting point is 00:21:24 At the time. At the time, they were undergrads at Texas A&M. They went to Kyle Field, the football field there, and pulled off this trick shot. It absolutely blew up. And they've just been carrying that momentum since with really smart business plays. I don't think they're one-dimensional on YouTube right now at all. They have their own smoothie at Smoothie King.
Starting point is 00:21:43 They have a line of nerve products. They have their own board game. They've been dabbling and doing things outside of YouTube because I think there's a growing recognition among YouTube. creators. We've seen this with Mr. Bees that YouTube has a ceiling. You can only make so much money. And you can make a lot of money on YouTube, but it's getting very saturated. And it's time, if you have a strong enough brand, which they think they do, it's time to become a fully-fledged business and do more in real life activations. I can't believe I just said the word activations.
Starting point is 00:22:09 But do more things outside of the YouTube empire if you really want to become a serious company. Right. It's also very interested in global growth. Do Perfect says half of its YouTube audience is international. And I do want to talk about that brand affinity. a little bit because high amount capitals, their chief investment officer, told Axios that they wanted to and were attracted to the Dude Perfect investment because he literally called out his kids age 5, 8, and 10, they are super fans and that he trusts Dude Perfect. And that trust is something that Dude Perfect knows it's cultivated over 15 years. It's a very family friendly, very approachable brand. And there's not that many just pure family friendly brands out there. But we have seen
Starting point is 00:22:48 the ones that are out there do very well. Cocoa Mellon has. done well. We've talked about Bluey on this show before. So there's clearly this demand for wholesome, kid friendly, family friendly fun and Dude Perfect embodies that to a T. Absolutely. I mean, they also want to build a $100 million theme park in North Texas. Seems fun. It does seem fun. I mean, I don't really follow Dude Perfect. You know, I feel like I would be in the demographic of just like shooting, shooting hoops, doing weird things and just overall goofing around with sports. But, you know, I guess if they open that up, I'll take my, I'll go there and maybe take my kids one day. All right, finally, I want you to imagine this scenario. You walk into a food spot
Starting point is 00:23:27 for takeout, but instead of placing an order with a human being behind the counter, you encounter a screen with a woman on Zoom who greets you and asks you what you want to eat. Well, you need not imagine because in New York, this is actually happening. A new restaurant chain with several locations across the city is deploying hostesses from the Philippines on Zoom to help with checkout. These work from home cashiers went viral on social media last weekend, prompting many people to ask, is this the plot of a bad back black mirror episode, or is this the future of customer service? To work toward an answer, let's establish one thing. Zoom cashiers working abroad are way cheaper than workers in New York City, so you can see why this might be attractive
Starting point is 00:24:08 to business owners. The minimum wage in New York is $16 per hour compared to the $3.75 average pay in the Philippines. Not to mention, these virtual employees can work at multiple locations at lunch, which is impossible for a human not name the flash. But you can expect significant pushback from Americans who say this is taking away local jobs because if there's due things that get us riled up, it's automation and outsourcing. And Zoom cashiers does both. It does both. I don't think we are that far away from this becoming more widespread because think about what your experience is when you walk into a McDonald's these days or any other fast food place. You're going to be confronted with one of those kiosks where you do your order there.
Starting point is 00:24:48 So it's a very natural thing for a lot of people is this kiosk ordering. It's not supernatural to see someone literally on a television screen saying, hello, welcome to San San Chicken. And they're not physically there. They're not even physically in the same country. So that's where you get those black mirror comparisons. But also, I don't know if there is really a company that is doing a sophisticated setup for this because the way that the one that went viral at San San San Chicken was
Starting point is 00:25:17 kind of a DIY setup where they literally had the Zoom call and link. The person was zooming in. So it's not a really sophisticated thing right now. But I don't think we're as far away from this as you might imagine. No. And this is not the only place where this is happening. Apparently in Uruguay and Argentina, these Zoom workers are not taking food orders, but they are security people and doormen or door women for buildings, for apartment buildings. And they're looking over hundreds or thousands all at once. So you walk down a street there and you see the same woman who's the security person for a building and then you walk next door and you see the same person in the window.
Starting point is 00:25:57 So it's very weird. It's very bizarre. There's also a chain in Toronto called Freshie. And in 2022, they were not caught, but they were observed to have used these Zoom workers as well. And that led to a brief boycott Freshie moment. So there's going to be a lot of tension around these things if they do proliferate a little bit more. Before you know it, you and I are going to be both zooming in from some unknown location.
Starting point is 00:26:24 We'll have our TV set up here so you can still watch us on YouTube, but we will no longer physically be in person. It's just weird that they would automate it, but also still use a person. Yeah, interesting. All right, let's wrap it up there. Thanks so much for listening. Have a wonderful Wednesday, Aid Mubarak for everyone celebrating the end of Ramadan. And remember, you can always send feedback or questions about the show to Morningbrew Daily at morning brew.com. Yesterday, many of you accused Toby of saying, it's Monday instead of
Starting point is 00:26:49 it's Tuesday. Toby, any comment? I had no comments, please, but thank you for holding me accountable. All right, let's roll the credits. Emily Milliron is our executive producer. Raymond Liu is our producer. Olivia Graham is our associate producer. Yuchenoa Ogu is our technical director. Billy Minino is on audio. We'll never replace hair and makeup with a Zoom worker. Devin Emery is our chief content officer and our show is a production of Morning Brew. Great show today, Neil. Let's run it back tomorrow. Yamava Resort and Casino at San Manuel is California's number one entertainment destination for today's superstars. Catch the Jonas Brothers return to the Yamava Theater stage on April 30th,
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