OpenAI, previously a close partner of Microsoft, is now officially recognised as a competitor. Microsoft’s recent SEC filing marks the first time the company has publicly acknowledged this shift. OpenAI is now listed alongside tech giants like Google and Amazon as a competitor in both AI and search technologies.
The relationship between the two companies has been under scrutiny, with antitrust concerns arising from the FTC. Microsoft’s decision to relinquish its board observer seat at OpenAI follows a series of significant events, including the brief dismissal of OpenAI’s CEO Sam Altman. The filing may reflect a strategic move to alter public perception amid these investigations.
Silicon Valley has a history of companies navigating complex relationships, balancing roles as both partners and competitors. The dynamic between Yahoo and Google in the early 2000s serves as a notable example. Microsoft and OpenAI might be experiencing a similar evolution, with both entities maintaining competitive and cooperative elements.
Meanwhile, Microsoft continues to expand its own AI initiatives. The hiring of Inflection AI co-founders to lead a new AI division and the development of Microsoft Copilot highlight the company’s broader strategy. The diversification suggests a strategic approach to AI that goes beyond its ties with OpenAI.
As per a report by the World Bank and International Labour Organization, between 2% to 5% of the jobs in Latin America and the Carribean are at risk of being redundant because of automation. The highest risk of automation confronts women and young workers in the formal sector. That is a huge challenge for one of the world’s most unequal regions, where most low-paying jobs are concentrated in the informal economy.
Despite the growth in AI, the report also highlighted how ‘gaps in digital infrastructure and other inequalities could hinder the potential impacts of generative AI in the region’. The figure hovers between 26% and 38% of the total employment in Latin America and the Caribbean regarding jobs being exposed by generative AI and being impacted by it somehow.
On the flip side, researchers also draw attention to the fact that AI could bring many benefits by enhancing workers’ productivity between 8% and 14% of jobs, especially for high-income earners working in the urban formal sector.
The Isle of Man, a self-governing British Crown dependency in the Irish Sea between England and Ireland, has launched a programme to upskill its residents on the use of AI. By tapping on the ‘enhanced productivity’ of the workers, the government intends to improve its GDP by 10%. Chief executive of Digital Isle of Man, Lyle Wraxell, explained how the program and a public roadshow accompanying it will help ensure that people ‘keep up with the rapidly evolving technology’.
The initiative, ‘Activate AI,’ will unfold in three stages: the first will focus on education, the second will enable the island to establish a global positioning, and the final stage will be acceleration. A new platform will launch by the end of August, providing 200 hours of complimentary training for businesses and individuals.
The programme’s applied AI service will help companies pair up with experienced firms to explore AI-driven solutions for their business challenges. Given that this facility will be provided free of cost, board member Jason Bissell highlighted how this approach will enable the creation of a partner ecosystem, allowing local businesses to experiment and understand the technology’s potential value.
Teachers have long worried about ChatGPT enabling students to cheat, with its ability to produce essays and solve problems quickly. According to Chegg, 40% of undergraduates worldwide have used generative AI, with many relying on it daily. However, education experts at the Fortune Brainstorm AI Singapore conference believe that generative AI can now be a valuable tool for educators.
Initially, educators feared widespread plagiarism with the introduction of ChatGPT, said Sonita Jeyapathy from the National University of Singapore. Yet, this concern has shifted as teachers began to see the potential of AI in enhancing their teaching methods. Khairul Anwar, founder of Malaysian edtech startup Pandai, noted that teachers seek AI assistance for lesson planning, student motivation, and professional development.
Pandai’s chatbot, designed to assist with homework, exemplifies this shift. Instead of providing direct answers, it guides students through problems step-by-step, encouraging more profound understanding. Tim Baldwin of the Mohamed bin Zayed University of Artificial Intelligence highlighted further AI advancements, such as personalised tutoring tailored to individual learning styles, making education more accessible.
Panelists acknowledged that AI-enabled cheating isn’t new and emphasised the importance of student motivation and institutional values in deterring dishonesty. Anwar suggested that framing education as a transactional path to material success can encourage cheating, advocating instead for highlighting the intrinsic value of learning.
Meta has informed investors that its heavy investments in generative AI won’t yield revenue this year but are expected to pay off in the long run. Founder Mark Zuckerberg explained that Meta is preparing for future computing needs, particularly its next AI model, Llama 4, which will require significantly more computing power than its predecessor. Despite the high costs, with capital expenditures projected to reach up to $40 billion this year, Meta aims to position Llama 4 as the industry’s most advanced model by next year.
CFO Susan Li acknowledged during the earnings call that generative AI would not contribute to this year’s revenue. However, she emphasised that Meta’s AI infrastructure is designed to be flexible and multifunctional, capable of supporting various AI needs, including content ranking and recommendations. Meta’s existing AI tools have already enhanced user engagement on platforms like Facebook and Instagram, and new video recommendation tools have further boosted interaction with features like Facebook Reels.
Zuckerberg also discussed AI’s potential to transform Meta’s advertising business. He predicted that AI would eventually handle tasks like writing personalised ad copy and managing campaign objectives, simplifying the process for advertisers. This vision aligns with Meta’s broader strategy of leveraging AI to improve user experience and business outcomes.
Why does this matter?
Despite significant losses in its Reality Labs division, which focuses on metaverse-related technology, Meta reported solid financial performance. The company showed robust growth with quarterly revenues of $39 billion and net income of $13.5 billion. Additionally, Meta’s daily user base reached 3.2 billion, and its new social media app, Threads, is nearing 200 million monthly active users, contributing to investor confidence and a rise in Meta’s share price.
Telford and Wrekin Council, the local authority of Telford and Wrekin in the ceremonial county of Shropshire, England, have introduced an upgraded AI phone assistant named Ask Tom, designed to improve customer service by handling queries without the need for human staff.
Initially launched in 2021 as a digital assistant, Ask Tom now has the capability to answer, listen, speak, and send information directly to customers’ devices. The enhancement aims to free up customer service staff to focus on more complex issues, although human advisors will still be available if needed.
The council highlighted that when Ask Tom was first introduced, it significantly reduced customer waiting times by 50%. With the new upgrade, the council expects the system to assist even more people by addressing multiple questions in a single call and preventing the need to contact different numbers for specific information.
Councillor Zona Hannington emphasised that the automated assistant is built on a well-tested, extensive knowledge base of council information. The council can allocate its staff to more critical tasks by automating simple queries, thus improving efficiency and effectiveness. Residents will benefit from 24-hour access to a broader range of council services, enhancing the overall service experience.
Researchers have criticized Elon Musk for claiming that his brain implant technology could eventually provide superior vision compared to normal human sight. Musk’s company, Neuralink, has promised implants that can restore sight to the blind, and Musk recently touted the product, called ‘Blindsight,’ to his 190 million followers on X. He stated that while the initial resolution would be low, it could ultimately exceed human vision.
I should mention that the Blindsight implant is already working in monkeys.
Resolution will be low at first, like early Nintendo graphics, but ultimately may exceed normal human vision.
(Also, no monkey has died or been seriously injured by a Neuralink device!)
However, Ione Fine, a psychology professor at the University of Washington, called Musk’s claims ‘dangerous.’ Fine co-authored a paper using ‘virtual patients’ to model how such implants might work and argued that their impact would be limited by human biology. She emphasized that high-resolution vision cannot be achieved simply by implanting millions of tiny electrodes into the visual cortex, as the process involves creating a complex ‘neural code’ across thousands of cells.
Fine explained that engineers often mistakenly view electrodes as producing pixels, but the biological process of creating images in the brain is far more intricate. She stressed that scientists are not close to discovering the correct neural code in blind individuals, indicating that the effectiveness of these implants would be restricted.
She also highlighted the vulnerability of individuals who become blind later in life and warned against making bold promises about technological advancements. Fine concluded that Musk’s statements about achieving a vision better than human sight could give false hope and are, therefore, dangerous.
Elon Musk announced on Wednesday that his AI startup, xAI, is not considering acquiring chatbot startup Character.AI. The statement was made on the social media platform X, clarifying earlier reports by The Information that suggested xAI was looking into buying Character.AI to enhance testing of its Grok AI models.
The clarification came in response to speculation about xAI’s strategic moves to bolster its AI capabilities. Musk’s announcement aims to put to rest any rumors of a potential acquisition, highlighting that xAI is not pursuing this particular avenue at the moment.
Despite the earlier reports, xAI remains focused on its current projects and strategies, without incorporating Character.AI into its plans. The following development underscores the competitive and rapidly evolving landscape of AI startups as they seek to advance their technologies.
Meta’s AI ambitions have received a significant boost from WhatsApp’s 500 million users in India. During Meta’s second-quarter earnings call, CFO Susan Li highlighted that India has become the largest market for Meta AI usage, a remarkable achievement given the product’s recent launch. Users in India have generated billions of queries, showing high engagement and retention, particularly on WhatsApp.
Meta AI was initially launched in the US and expanded to India and over a dozen other countries with the upgraded Llama 3 model. Despite initial cultural challenges, such as generating images and jokes that were culturally insensitive, Meta has adjusted its algorithm to suit the Indian market better. Additionally, the AI now supports multiple languages beyond English, including Hindi and Spanish, broadening its accessibility.
CEO Mark Zuckerberg emphasised the increasing computational demands for future AI models, stating that training the upcoming Llama 4 model would require nearly ten times the computing power used for Llama 3 and so demonstrating Meta’s commitment to advancing its AI capabilities.
Apart from AI, Meta’s social networks also show promise. The Threads platform is nearing 200 million users, and Facebook usage among young adults in the US is rising, indicating continued growth and engagement across Meta’s suite of products.
The world’s first comprehensive AI law, known as the EU AI Act, officially came into force on 1 August 2024, marking a significant step in regulating AI. This landmark legislation aims to ensure AI’s safe and trustworthy deployment across Europe by setting clear rules and guidelines. While the AI Act is now in effect, it will be fully applicable in two years, with specific provisions, such as bans on prohibited practices, taking effect sooner.
The AI Act establishes a legal framework to address the risks associated with AI while promoting innovation and investment in the technology. It gives AI developers precise requirements, especially for high-risk applications like critical infrastructure, education, and law enforcement. The regulation also includes measures to reduce administrative burdens for small and medium-sized enterprises, encouraging their participation in the AI sector.
Today, the Artificial Intelligence Act comes into force.
Europe's pioneering framework for innovative and safe AI.
It will drive AI development that Europeans can trust.
And provide support to European SMEs and startups to bring cutting-edge AI solutions to market. pic.twitter.com/cRoVoRtEy0
A central aspect of the AI Act is its risk-based approach, categorising AI systems into different risk levels, from minimal to unacceptable. High-risk systems, such as those used in healthcare and law enforcement, face stringent obligations to ensure safety and compliance. Additionally, the Act mandates transparency for general-purpose AI models and requires robust risk management and oversight.
The European AI Office has been established to oversee the enforcement and implementation of the AI Act. This office will work with member states to create an environment that respects human rights and fosters AI innovation. As AI evolves, the regulation is designed to adapt to technological changes, ensuring that AI applications remain trustworthy and beneficial for society.
