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AI companies lose $190 billion in market value

PLUS: ChatGPT continues to be a bad lawyer

Author

Lavena Xu-Johnson
February 01, 2024

AI trading bots promise lucrative returns in investment management, but experts urge caution due to their novelty, potential biases, and inability to predict unforeseen market events. While AI offers advanced data analysis, its effectiveness is limited by the quality of its initial programming and it's not immune to errors or external disruptions, highlighting the continued importance of human oversight in investment strategies.

⏰ Top Headlines

🔗 The FCC is proposing a ban on robocalls using AI-generated voices. If approved, it would make robocalls that use voice cloning technology illegal.

🔗 Shopify's 'Magic' AI editor transforms e-commerce by allowing sellers to effortlessly create professional product images, enriching its suite of user-friendly AI tools for online retail.

🔗 ChatGPT continues to be a bad lawyer. New York lawyer Jae Lee will face an attorney grievance panel after trusting known liar ChatGPT for case research.

🔗 Replika's new app, Tomo, merges AI with wellness, offering a virtual meditation retreat and therapy, yet its impact and privacy safeguards are under examination.

🔗 Italy's privacy watchdog confronts OpenAI over potential EU data breaches, seeking clarification within 30 days, while OpenAI maintains its commitment to GDPR compliance.

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MUSIC / GENERATIVE AI

TikTok loses Taylor Swift, Drake, and other major Universal Music artists

Universal Music Group (UMG) has removed music by top artists, including Taylor Swift and Drake, from TikTok due to a licensing disagreement. The dispute revolves around artist compensation, concerns about AI-generated music, and online safety.

  • Expired licensing agreement: UMG pulled music catalogs after failing to renew its licensing deal with TikTok, which ended on January 31st.

  • UMG's allegations: UMG accused TikTok of pressuring them into an unfair deal that didn't adequately address issues like artist compensation, protection against AI-generated music, and online safety for artists.

  • TikTok's response: TikTok expressed disappointment in UMG's decision, citing its massive user base and implying that the label prioritized its own interests over artists and songwriters.

  • Muted UMG music: UMG-owned music on TikTok is now muted, requiring users to find alternative tracks from different music labels.

Why it matters: The conflict highlights the challenges of balancing interests between artists, record labels, and tech platforms in the digital music era, raising questions about fair compensation and content safety.

MEDIA

The New York Times is building a team to explore AI in the newsroom

The New York Times is establishing a team to explore the integration of generative AI in its newsroom. Led by Zach Seward, the head of AI initiatives, the team will prototype AI applications to enhance reporting and reader experience. Job openings are available for engineers and editors to join this initiative.

  • Team composition: The Times is recruiting professionals to work on AI projects, bridging engineering, design, and editorial roles. They will collaborate with other teams to transition prototypes into production.

  • Editorial integrity: AI tools will assist but not replace human journalists, ensuring that core journalism remains the work of experienced professionals.

  • AI history: The Times has a history with generative AI, including legal disputes with OpenAI and Microsoft. Whether they build their AI tools or partner with external providers remains unclear.

  • AI in newsrooms: This initiative represents the ongoing intersection of AI and journalism, with the Times focusing on augmenting human reporting with AI to enhance news content and presentation.

Why it matters: The Times' approach signifies the evolving role of AI in journalism, emphasizing its potential as a tool to enhance journalistic practices rather than a replacement. It aims to maintain the authenticity of news content while leveraging AI for innovation.

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MARKET VALUE

AI companies lose $190 billion in market value – is peak AI approaching?

After disappointing financial reports from tech giants like Microsoft and Alphabet, AI-related companies collectively lost $190 billion in market value. This raises concerns about tech firms overselling AI without clear monetization plans.

  • Mixed reactions: Microsoft's AI promises led to a slight stock drop, while Alphabet faced a significant 5.6 percent decline due to missed ad revenue expectations. Even AI chip producer AMD was affected.

  • Peak AI?: Some analysts see the downturn as a sign of potential overextension in the tech industry's AI hype, while others believe it's a temporary setback.

  • Monetization challenge: The high costs of expanding AI infrastructure pose challenges for AI companies in achieving profitability.

Why it matters: The market's reaction highlights uncertainties about the future of AI and the need for clear monetization strategies to sustain growth.

💬 More on AI…

🔗 Over a third of EU firms adopt AI, bringing digital goals in reach.

🔗 Ideation to design is now easier than ever (Try Uizard)*

🔗 7 ways marketers should be using generative AI now.

🔗 4 paths to sustainable AI.

🔗 The Samsung Galaxy S24 Ultra's AI features feel like an afterthought.

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