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“We are truly fucked.” That was Motherboard’s spot-on reaction to deep fake sex videos (realistic-looking videos that swap a person’s face into sex scenes actually involving other people). And that sleazy application is just the tip of the iceberg. As Julian Sanchez tweeted, “The prospect of any Internet rando being able to swap anyone’s face into porn is incredibly creepy. But my first thought is that we have not even scratched the surface of how bad ‘fake news’ is going to get.” Indeed. Recent events amply demonstrate that false claims—even preposterous ones—can be peddled with unprecedented success today thanks to a combination of social media ubiquity and virality, cognitive biases, filter bubbles, and group polarization. The resulting harms are significant for individuals, businesses, and democracy. Belated recognition of the problem has spurred a variety of efforts to address this most recent illustration of truth decay, and at first blush there seems to be reason for optimism. Alas, the problem may soon take a significant turn for the worse thanks to deep fakes. Get used to hearing that phrase. It refers to digital manipulation of sound, images, or video to impersonate someone or make it appear that a person did something—and to do so in a manner that is increasingly realistic, to the point that the unaided observer cannot detect the fake. Think of it as a destructive variation of the Turing test: imitation designed to mislead and deceive rather than to emulate and iterate.

Fueled by artificial intelligence, digital impersonation is on the rise. Machine-learning algorithms (often neural networks) combined with facial-mapping software enable the cheap and easy fabrication of content that hijacks one’s identity—voice, face, body. Deep fake technology inserts individuals’ faces into videos without their permission. The result is “believable videos of people doing and saying things they never did.” Not surprisingly, this concept has been quickly leveraged to sleazy ends. The latest craze is fake sex videos featuring celebrities like Gal Gadot and Emma Watson. Although the sex scenes look realistic, they are not consensual cyber porn. Conscripting individuals (more often women) into fake porn undermines their agency, reduces them to sexual objects, engenders feeling of embarrassment and shame, and inflicts reputational harm that can devastate careers (especially for everyday people). Regrettably, cyber stalkers are sure to use fake sex videos to torment victims. What comes next? We can expect to see deep fakes used in other abusive, individually-targeted ways, such as undermining a rival’s relationship with fake evidence of an affair or an enemy’s career with fake evidence of a racist comment.

At decade's end, the trusty landline telephone could be nothing more than a memory. Telecom giants AT&T T +0.31% AT&T Inc. U.S.: NYSE $35.07 +0.11 +0.31% March 28, 2014 4:00 pm Volume (Delayed 15m) : 24.66M AFTER HOURS $35.03 -0.04 -0.11% March 28, 2014 7:31 pm Volume (Delayed 15m): 85,446 P/E Ratio 10.28 Market Cap $182.60 Billion Dividend Yield 5.25% Rev. per Employee $529,844 03/29/14 Prepare to Hang Up the Phone, ... 03/21/14 AT&T Criticizes Netflix's 'Arr... 03/21/14 Samsung's Galaxy S5 Smartphone... More quote details and news » T in Your Value Your Change Short position and Verizon Communications VZ -0.57% Verizon Communications Inc. U.S.: NYSE $47.42 -0.27 -0.57% March 28, 2014 4:01 pm Volume (Delayed 15m) : 24.13M AFTER HOURS $47.47 +0.05 +0.11% March 28, 2014 7:59 pm Volume (Delayed 15m): 1.57M

The two providers want to lay the crumbling POTS to rest and replace it with Internet Protocol-based systems that use the same wired and wireless broadband networks that bring Web access, cable programming and, yes, even your telephone service, into your homes. You may think you have a traditional landline because your home phone plugs into a jack, but if you have bundled your phone with Internet and cable services, you're making calls over an IP network, not twisted copper wires. California, Florida, Texas, Georgia, North Carolina, Wisconsin and Ohio are among states that agree telecom resources would be better redirected into modern telephone technologies and innovations, and will kill copper-based technologies in the next three years or so. Kentucky and Colorado are weighing similar laws, which force people to go wireless whether they want to or not. In Mantoloking, N.J., Verizon wants to replace the landline system, which Hurricane Sandy wiped out, with its wireless Voice Link. That would make it the first entire town to go landline-less, a move that isn't sitting well with all residents.

New Jersey's legislature, worried about losing data applications such as credit-card processing and alarm systems that wireless systems can't handle, wants a one-year moratorium to block that switch. It will vote on the measure this month. (Verizon tried a similar change in Fire Island, N.Y., when its copper lines were destroyed, but public opposition persuaded Verizon to install fiber-optic cable.) It's no surprise that landlines are unfashionable, considering many of us already have or are preparing to ditch them. More than 38% of adults and 45.5% of children live in households without a landline telephone, says the Centers for Disease Control and Prevention. That means two in every five U.S. homes, or 39%, are wireless, up from 26.6% three years ago. Moreover, a scant 8.5% of households relied only on a landline, while 2% were phoneless in 2013. Metropolitan residents have few worries about the end of landlines. High-speed wire and wireless services are abundant and work well, despite occasional dropped calls. Those living in rural areas, where cell towers are few and 4G capability limited, face different issues.

The opening panel of the Stigler Center’s annual antitrust conference discussed the source of digital platforms’ power and what, if anything, can be done to address the numerous challenges their ability to shape opinions and outcomes present. 

Google CEO Sundar Pichai caused a worldwide sensation earlier this week when he unveiled Duplex, an AI-driven digital assistant able to mimic human speech patterns (complete with vocal tics) to such a convincing degree that it managed to have real conversations with ordinary people without them realizing they were actually talking to a robot.   While Google presented Duplex as an exciting technological breakthrough, others saw something else: a system able to deceive people into believing they were talking to a human being, an ethical red flag (and a surefire way to get to robocall hell). Following the backlash, Google announced on Thursday that the new service will be designed “with disclosure built-in.” Nevertheless, the episode created the impression that ethical concerns were an “after-the-fact consideration” for Google, despite the fierce public scrutiny it and other tech giants faced over the past two months. “Silicon Valley is ethically lost, rudderless and has not learned a thing,” tweeted Zeynep Tufekci, a professor at the University of North Carolina at Chapel Hill and a prominent critic of tech firms.   The controversial demonstration was not the only sign that the global outrage has yet to inspire the profound rethinking critics hoped it would bring to Silicon Valley firms. In Pichai’s speech at Google’s annual I/O developer conference, the ethical concerns regarding the company’s data mining, business model, and political influence were briefly addressed with a general, laconic statement: “The path ahead needs to be navigated carefully and deliberately and we feel a deep sense of responsibility to get this right.”

Google’s fellow FAANGs also seem eager to put the “techlash” of the past two years behind them. Facebook, its shares now fully recovered from the Cambridge Analytica scandal, is already charging full-steam ahead into new areas like dating and blockchain.   But the techlash likely isn’t going away soon. The rise of digital platforms has had profound political, economic, and social effects, many of which are only now becoming apparent, and their sheer size and power makes it virtually impossible to exist on the Internet without using their services. As Stratechery’s Ben Thompson noted in the opening panel of the Stigler Center’s annual antitrust conference last month, Google and Facebook—already dominating search and social media and enjoying a duopoly in digital advertising—own many of the world’s top mobile apps. Amazon has more than 100 million Prime members, for whom it is usually the first and last stop for shopping online.   Many of the mechanisms that allowed for this growth are opaque and rooted in manipulation. What are those mechanisms, and how should policymakers and antitrust enforcers address them? These questions, and others, were the focus of the Stigler Center panel, which was moderated by the Economist’s New York bureau chief, Patrick Foulis.