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Issue #013 · April 8, 2026

The Line Item Called Payroll

Ring turns every doorbell into a face database, and Brazil's predictive-policing pilots point their models at the neighborhoods they already over-police.

ACCESS_DENIED

Amazon Turns Ring Doorbells Into Face Database

Amazon's Ring has begun rolling out Familiar Faces, an AI-powered facial recognition feature that lets doorbell owners build a catalog of up to 50 faces — family, friends, neighbors, delivery drivers, housekeepers — and get push alerts when those people approach the door. The biometric processing happens in Amazon's cloud, not on-device, and the feature is now live for opt-in users across most of the United States (Source: TechCrunch).

State biometric privacy laws have already carved holes in the rollout. Familiar Faces is blocked in Illinois, Texas, and Portland, Oregon, where statutes require explicit consent before collecting biometric identifiers. Amazon's own privacy policy applies only to the device owner; the delivery driver, the kid selling cookies, and the neighbor walking their dog have no notice, no consent, and no way to opt out of being catalogued (Source: Biometric Update).

Senator Ed Markey (D-Mass.) sent Amazon CEO Andy Jassy a letter on February 11 demanding the company kill the feature, writing that Ring "inadvertently revealed the serious privacy and civil liberties risks attendant to these types of Artificial Intelligence-enabled image recognition technologies" and warning that the doorbells can now "collect biometric information on anyone in their video range — without the individual's consent and often without their knowledge" (Source: Office of Senator Ed Markey).

Ring has maintained more than 400 data-sharing partnerships with police departments. The new capability turns millions of private front porches into nodes in a decentralized face-recognition network with no federal rules governing what Amazon — or law enforcement — can do with the data.

NULL_POINTER

Brazil Piloting Predictive Policing in Cities Where 64% of Prisoners Are Black

State police forces across Brazil are rolling out crime-forecasting pilots that mix machine learning with historical crime datasets to predict where officers should be sent next. Programs are already active in Rio de Janeiro, Fortaleza, and Santa Catarina, and a Belo Horizonte pilot using a Japanese system called Crime Nabi has expanded after reducing construction-site cable theft. São Paulo continues to operate two older systems, InfoCrime and Detecta, that feed the same prediction pipeline (Source: Americas Quarterly).

The math underneath these systems is circular. Brazilian crime data reflects where police have historically patrolled, and vast stretches of low-income neighborhoods suffer "information blackouts" where no officers are present, and no crimes are recorded. Feed that asymmetry into a prediction model, and it recommends more policing of the same neighborhoods already being policed, then interprets the resulting arrests as confirmation that its forecasts were right (Source: Instituto Igarapé).

The demographics make the stakes concrete. Black Brazilians make up 64% of the prison population. Commercial facial-recognition systems still post error rates as high as 34.7% for Black women compared to 0.8% for white men, per MIT researcher Joy Buolamwini's benchmark work.

Brazil's federal AI bill would nominally ban predictive policing as an "excessive risk," but the pilots are already running under state authority while the legislation sits unpassed (Source: Americas Quarterly).

DEPRECATED

EU Can Now Fine Foundation Model Companies 3% of Global Revenue for Bad Paperwork

The EU AI Act's general-purpose AI obligations become enforceable on August 2, 2026, giving the European Commission's AI Office the authority to request information from foundation model providers, evaluate their systems, and fine violators up to 3% of global annual turnover or €15 million, whichever is higher. The penalty applies even to models that aren't classified as high-risk; documentation and transparency failures alone are enough to trigger it (Source: EU Artificial Intelligence Act).

Providers who signed the GPAI Code of Practice, finalized in July 2025, get a "presumption of conformity" across the transparency, copyright, and safety chapters. Providers who refused to sign — most notably xAI — will face the full evidentiary burden when the AI Office comes knocking.

The Commission can also order immediate market interventions, including recall and withdrawal, alongside the financial penalty (Source: ThinkAutomated).

Stack Trace

Tesla showed off Optimus Gen 3 at AWE 2026 in Shanghai on March 12 and has quietly started Gen 3 production at its Fremont factory, but Elon Musk admitted on the Q4 2025 earnings call that none of the robots are doing "useful work" yet; they exist for learning and data collection only. Tesla expects to build only a few hundred units this year before scaling to thousands in 2027 (Source: Teslarati). The humanoid robot that was supposed to cut manufacturing costs is, for now, an expensive intern.

California Attorney General Rob Bonta sent xAI a cease-and-desist letter demanding Elon Musk's company stop producing sexually explicit deepfakes of women and children through Grok's so-called "spicy mode," giving xAI five days to confirm it had complied. The investigation followed documented cases of Grok users uploading ordinary photos of public figures, minors, and private individuals and generating nude imagery without consent — a feature xAI has marketed rather than suppressed (Source: Office of the California Attorney General).

Pinterest cut roughly 700 workers — about 15% of its staff — explicitly to "reallocate resources to AI-focused roles and teams that drive AI adoption," and then fired the internal engineers who built an unauthorized tool for employees to track the layoff rumors. More than 61,000 AI-attributed layoffs have been announced in 2026 so far, with 20.4% of all tech cuts now explicitly tied to automation — up from under 8% in 2025 (Source: TechCrunch).

Source: TechCrunch · Fortune

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