Online fashion retailers are increasingly using artificial intelligence to tackle the costly issue of clothing returns, with up to 30% of purchases being sent back due to sizing problems. A study by McKinsey estimates that each return costs between $21 and $46, significantly affecting profit margins. Many customers order multiple sizes and return those that don’t fit, creating logistical headaches for retailers.
To address this, companies are adopting AI-driven sizing tools. French start-up Fringuant, for instance, uses an algorithm that analyses a shopper’s height, weight, and a quick selfie to predict the best size. Zalando, a German e-commerce giant, has also implemented its own AI-powered tool that guides customers by comparing their body shape with garment dimensions. These technologies are already helping some brands reduce return rates significantly.
Beyond sizing, AI is also improving warehouse operations to prevent shipping mistakes. Smart cameras on order pickers’ trolleys at logistics firms help ensure the right product is selected, while AI-equipped robots track stock levels, reducing errors that lead to returns. As online shopping continues to grow, retailers hope these innovations will streamline processes and boost efficiency.
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The European Commission has removed the AI Liability Directive from its 2025 work program due to stalled negotiations, though lawmakers in the European Parliament’s Internal Market and Consumer Protection Committee (IMCO) have voted to continue working on the proposal. A spokesperson confirmed that IMCO coordinators will push to keep the directive on the political agenda, despite the Commission’s plans to withdraw it. The Legal Affairs committee has yet to make a decision on the matter.
The AI Liability Directive, proposed in 2022 alongside the EU’s AI Act, aimed to address the potential risks AI systems pose to society. While some lawmakers, such as German MEP Axel Voss, criticised the Commission’s move as a ‘strategic mistake,’ others, like Andreas Schwab, called for more time to assess the impact of the AI Act before introducing separate liability rules.
The proposal’s withdrawal has sparked mixed reactions within the European Parliament. Some lawmakers, like Marc Angel and Kim van Sparrentak, emphasised the need for harmonised liability rules to ensure fairness and accountability, while others expressed concern that such rules might not be needed until the AI Act is fully operational. Consumer groups welcomed the proposed legislation, while tech industry representatives argued that liability issues were already addressed under the revamped Product Liability Directive.
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Baidu has announced plans to open-source its upcoming Ernie 4.5 chatbot series, citing inspiration from the success of AI firm DeepSeek. The move is aimed at encouraging greater adoption of its technology by making it more accessible.
Baidu also plans to provide premium chatbot services free of charge starting in April, with the open-source launch scheduled for June.
DeepSeek’s open-source approach, combined with its innovative R1 model, has gained widespread attention and increased adoption of foundational AI tools. Baidu CEO Robin Li highlighted the significance of this strategy in shaping the company’s decision.
He expressed confidence in the technology behind Ernie 4.5, which Baidu claims will be its most advanced model to date.
Despite advancements in AI, Baidu’s Q4 2024 results revealed a 2% revenue decline to 34.12 billion yuan, slightly ahead of expectations. Growth in the Cloud AI sector, up 26% year-on-year, partly offset a 7% drop in its online marketing business.
Weakness in China’s economy, particularly the property market, has contributed to reduced advertising demand.
Baidu handled 1.65 billion daily interactions on its Ernie platform in December, up from 600 million in August. However, its US-listed shares dropped 7% in early trading after the results.
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A growing number of young Europeans are turning to social media platforms like TikTok, Instagram, and YouTube as their primary news source, surpassing traditional outlets such as TV and print media. According to the latest European Parliament Youth Survey, 42% of people aged 16 to 30 rely on social media for news about politics and social issues. This shift highlights changing preferences toward fast-paced, accessible content but also raises concerns about the growing risk of disinformation among younger generations.
Younger users, especially those aged 16 to 18, are more likely to trust platforms like TikTok and Instagram, while those aged 25 to 30 tend to rely more on Facebook, online press, and radio for their news. However, the rise of social media as a news source has also led to increased exposure to fake news. A report from the Reuters Institute revealed that 27% of TikTok users struggle to identify misleading content, while Instagram has faced criticism for relaxing its fact-checking systems.
Despite being aware of the risks, young Europeans continue to engage with social media for news. A significant 76% of respondents reported encountering fake news in the past week, yet platforms like Instagram remain the most popular news sources. This trend is impacting trust in political institutions, with many young people expressing scepticism toward the EU and skipping elections due to a lack of information.
The reliance on social media for news has shifted political discourse, as fake news and AI-generated content have been used to manipulate public opinion. The constant exposure to sensationalised false information is also having psychological effects, increasing anxiety and confusion among young people and pushing some to avoid news altogether.
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Google Meet’s AI-driven note-taking feature is getting a major upgrade with the ability to generate action items from meeting transcripts. The update, powered by Google’s Gemini AI, will automatically identify key tasks, assign deadlines, and designate responsible individuals at the end of each meeting.
Originally launched in August 2024, the AI transcription tool already provides accurate speaker separation and structured summaries in Google Docs. With this latest enhancement, the technology aims to improve productivity by ensuring that key takeaways are actionable and well-organised.
The feature begins rolling out today but at a slower pace than usual, as Google closely monitors its performance and quality. While AI-generated notes can be a helpful time-saver, some users may still prefer manual control over meeting documentation, especially when handling sensitive information.
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Former OpenAI chief technology officer Mira Murati has launched a new AI startup called Thinking Machines Lab, backed by a team of around 30 researchers and engineers from companies such as OpenAI, Meta, and Mistral. The startup aims to create AI systems that encode human values and address a wider range of applications than existing rivals, according to a blog post from the company.
Murati’s new venture demonstrates her ability to attract top talent, with two-thirds of the team made up of former OpenAI employees. Among them are Barret Zoph, a well-known researcher who joined Murati in leaving OpenAI in September, and John Schulman, OpenAI’s co-founder and the startup’s chief scientist. Schulman previously left OpenAI for Anthropic to focus on AI alignment, a key goal of Thinking Machines Lab.
The company’s approach differentiates itself by combining research and product teams in the design process. Thinking Machines Lab plans to contribute to AI alignment research by sharing code, datasets, and model specifications. Murati, now CEO of the startup, has previously played a major role in developing ChatGPT, and her exit from OpenAI reflects a broader trend of high-profile departures amid changes at the company.
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Freelance marketplace Fiverr is rolling out new AI tools designed to help gig workers streamline their work and maintain competitiveness. The ‘Personal AI Creation Model’ allows freelancers to train AI systems on their own work, offering clients either automated or blended content.
Freelancers retain ownership of the generated content and can set prices for its use, with the service costing $25 per month.
The tools aim to address challenges in the gig economy, where generative AI has increased competition while reducing opportunities. Fiverr highlights that the AI creation model prioritises freelancers’ control, ensuring their data is not misused.
Additionally, a ‘Personal AI Assistant’ is available to help with routine tasks and client communication, priced at $29 per month or included with Fiverr’s premium subscription.
Fiverr is also introducing a programme granting company shares to its top-performing freelancers. While the specifics remain undisclosed, the initiative reflects efforts to support gig workers in an increasingly competitive market.
As generative AI reshapes industries, Fiverr’s initiatives could help freelancers navigate the evolving landscape while enhancing their earning potential and safeguarding their creative work.
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Despite 61 percent of Japanese people being aware of generative AI, only 9 percent have used it, a recent survey by the Nomura Research Institute revealed. Younger generations show higher adoption rates, but overall public hesitation remains, particularly among older age groups.
As Japan faces a declining workforce, the government and businesses see AI as a potential solution to boost productivity. However, concerns over privacy, security, and misinformation have slowed adoption. Financial market disruptions and regulatory actions against AI models, such as China’s DeepSeek, have further intensified scepticism.
While some companies, particularly in labour-strapped industries, are beginning to implement AI, a shortage of specialists and a lack of reliable information present significant challenges. Despite these hurdles, Japan is pushing forward with AI development, with initiatives like SoftBank’s partnership with OpenAI and government plans to regulate and promote AI use in a ‘safe and secure’ manner.
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A cybersecurity firm co-founded by former Austrian Chancellor Sebastian Kurz and Israeli entrepreneurs has reached a valuation of $1.1 billion after securing $100 million in a new funding round.
The company, known as Dream, focuses on AI-driven cybersecurity solutions for governments and critical infrastructure. Bain Capital Ventures led the Series B investment, with additional backing from Group 11, Tru Arrow, Tau Capital, and Aleph.
Founded in January 2023, Dream has reported over $130 million in annual sales to government and national cybersecurity agencies in 2024.
The company was established by Kurz, former NSO Group CEO Shalev Hulio, and cybersecurity expert Gil Dolev. It operates out of Tel Aviv, Vienna, and Abu Dhabi, positioning itself as a key player in global cybersecurity.
Kurz, who became Austria‘s chancellor in 2017 at the age of 31, resigned in 2021 and was later convicted of perjury in a political case. He received an eight-month suspended sentence, which he is currently appealing. Despite his legal troubles, his latest business venture is rapidly growing in the cybersecurity industry.
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French AI company Mistral has introduced Mistral Saba, a language model tailored for Arabic-speaking users. Unlike its previous general-purpose models, Saba is designed to handle Arabic content more naturally and effectively, positioning Mistral as a competitor to US-based AI giants. The model also demonstrates strong performance in certain Indian languages due to cultural and linguistic overlaps.
The move signals Mistral’s growing interest in the Middle East, a region with increasing demand for AI-driven services. By offering an off-the-shelf model for Arabic-language support and content generation, the company aims to attract regional businesses and potential investors. Mistral has already secured funding from major US firms, but future investments from Middle Eastern partners could strengthen its global standing.
Mistral Saba is accessible via API and can be deployed on-premise, making it particularly appealing to industries such as finance, healthcare, and energy, where data privacy is crucial. The company has hinted at plans to develop more regional AI models, reinforcing its commitment to multilingual AI solutions, not just in France.
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