Concerns rise as Google implements AI for search engine answers

Google’s deployment of AI to condense search results is causing publishers’ concern about potential website traffic declines. The update to Google’s search engine, recently announced, will introduce AI-generated summaries of online queries in the US, with plans to expand globally. The implementation of AI in Google browsers could diminish the significance of links and web pages for over a billion users, potentially reducing audiences for bloggers, news outlets, and other online content creators who rely on Google referrals.

The AI-generated summaries, produced by Google’s Gemini technology, will offer concise insights from various online sources with minimal links. Google claims the change will encourage users to explore a wider range of websites, but critics, including Marketing AI Institute CEO Paul Roetzer, anticipate negative impacts on publishers and advertisers. With little information Google provides about the implications for these stakeholders, uncertainty looms over the future of online visibility and revenue generation.

Despite concerns, some experts see potential opportunities for collaboration between AI companies and news outlets to leverage real-time data for AI models.

Jeff Jarvis, a professor at CUNY Graduate School of Journalism, suggests that news organisations with credible information could benefit from partnerships with AI giants. However, the advertising industry faces uncertainties, with Semasio CEO Jeff Ragovin warning of potential revenue losses and the need for better-targeted ads amidst the AI-driven search landscape.

Elon Musk deepfake crypto scam raises concerns in Hong Kong

The Hong Kong Securities and Futures Commission (SFC) recently warned about a scam involving deepfake videos of Elon Musk promoting a cryptocurrency trading platform called ‘Quantum AI.’ The scam, which promises unrealistic returns, highlights the growing use of AI for fraudulent activities, particularly in Asia. The SFC has requested the Hong Kong Police to block access to the associated websites and social media pages, many of which are now inaccessible.

Deepfake-related fraud incidents have surged in the Asia-Pacific region, with a 1,530 percent increase last year, notably affecting Vietnam and Japan. Penny Chai, Sumsub’s vice president for business development in APAC, noted that the high volume of digital financial transactions in emerging Asian markets creates a fertile ground for such scams. Videos promoting Quantum AI, often featuring altered footage of Musk, have been debunked and traced back to old appearances of Musk at events like the 2019 World AI Conference.

Why does it matter?

The use of deepfakes in fraud has become more prevalent, with Hong Kong identified as a major target. The rate of identity fraud in Hong Kong was 3.3% last year, with significant financial losses reported. In one case, a Japanese bank manager was tricked into transferring $35 million due to a deepfake audio mimicking his director’s voice. The SFC has been vigilant in flagging suspicious virtual asset trading platforms, issuing numerous warnings this year alone, particularly after the significant JPEX cryptocurrency exchange fraud.

Additionally, the SFC warned about other risky crypto-related products, such as the LENA Network, which involves cryptocurrency staking, borrowing, and lending. The regulator emphasised that these arrangements might be unauthorised collective investment schemes and carry high risks.

US voice actors claim AI firm illegally copied their voices

Two voice actors have filed a lawsuit against AI startup Lovo in Manhattan federal court, alleging that the company illegally copied their voices for use in its AI voiceover technology without permission. Paul Skye Lehrman and Linnea Sage claim Lovo tricked them into providing voice samples under false pretences and is now selling AI versions of their voices. They seek at least $5 million in damages for the proposed class-action suit, accusing Lovo of fraud, false advertising, and violating their publicity rights.

The actors were approached via the freelance platform Fiverr for voiceover work, with Lehrman being told his voice would be used for a research project and Sage for test scripts for radio ads. However, Lehrman later discovered AI versions of his voice in YouTube videos and podcasts, while Sage found her voice in Lovo’s promotional materials. It was revealed that their Fiverr clients were actually Lovo employees, and the company was selling their voices under pseudonyms.

The mentioned lawsuit adds to the growing list of legal actions against tech companies for allegedly misusing content to train AI systems. Lehrman and Sage seek to prevent similar misuse of voices by Lovo and other companies, emphasising the need for accountability in the AI industry. Lovo has not yet responded to the allegations.

Reddit partners with OpenAI for ChatGPT integration

Reddit has announced a new partnership with OpenAI, allowing the popular chatbot ChatGPT to access Reddit’s content. The partnership caused Reddit’s shares to surge by 12% in extended trading, and it is part of Reddit’s strategy to diversify its revenue streams beyond advertising, complementing its recent agreement with Alphabet, which enables Google’s AI models to use Reddit’s data.

OpenAI will utilise Reddit’s application programming interface (API) to access and distribute content, marking a big step in integrating AI with social media data. Additionally, OpenAI will serve as a Reddit advertising partner, potentially boosting Reddit’s advertising revenue.

Why does it matter?

The development follows Reddit’s IPO in March and its lucrative deal with Alphabet worth around $60 million annually. Investors see these partnerships as crucial for generating revenue from data sales, supplementing the company’s advertising income. Reddit’s recent financial reports indicate strong revenue growth and improving profitability, reflecting the success of its AI data deals and advertising initiatives. Consequently, Reddit’s stock has risen by 10.5% to $62.31, showing a significant increase since its market debut.

University researchers develop AI platform to detect sarcasm

Researchers from the Netherlands have developed an AI platform capable of recognising sarcasm. The project was presented at a meeting of the Acoustical Society of America and the Canadian Acoustical Association in Ottawa. Using video clips and text from American sitcoms such as ‘Friends’ and ‘The Big Bang Theory,’ the researchers trained a neural network with the Multimodal Sarcasm Detection Dataset (MUStARD), previously annotated by another research team from the US and Singapore.

After being trained on this data, the AI model successfully detected sarcasm in unlabeled exchanges about 75% of the time. Further improvements using synthetic data have reportedly enhanced this accuracy, though these findings are yet to be published. Notable scenes used for training included moments from ‘The Big Bang Theory’ and ‘Friends’ that exemplified sarcastic interactions.

The research team at the University of Groningen aims to advance their sarcasm detection capabilities. By incorporating visual cues such as facial expressions, they aim to refine the AI’s ability to detect sarcasm more accurately. The project could significantly improve AI assistants’ interactions by enabling them to understand negative or hostile tones in human speech.

Why does it matter?

Sarcasm generally takes the form of an ironic remark, often rooted in humour, that is intended to mock or satirise something. When a speaker is being sarcastic, they say something different than what they actually mean, and that’s why it is hard for a large language machine to detect such nuances in someone’s speech.

The project aligns with similar research initiatives, such as those by the US Department of Defense’s DARPA, which developed an AI model for detecting sarcasm in text. The success of these projects is a significant achievement since it underscores the importance of understanding sarcasm in human communication, which could enhance the development of more nuanced and compelling AI systems.

European Central Bank advocates monitoring and regulation of AI in finance

The European Central Bank (ECB) has issued a call for increased vigilance and potential regulation regarding the use of AI (AI) in the financial sector. While acknowledging the potential benefits of AI, the ECB emphasises the need to mitigate risks to consumers and ensure market stability. 

The ECB acknowledges that AI, particularly generative AI, offers several advantages for banks and financial institutions. These include superior information processing capabilities, improved customer service efficiency, and enhanced cybersecurity measures. 

However, the ECB highlights several risks associated with the adoption of AI in finance. These risks include herding behaviour, over-reliance on a limited number of AI providers, and increased susceptibility to sophisticated cyberattacks. 

Given the potential risks, the ECB advocates for close monitoring of AI implementation in the financial system. It suggests that regulatory initiatives may be necessary to address any market failures that emerge and cannot be adequately managed within the existing regulatory framework.

The use of AI in the EU is regulated by the AI Act, which is the world’s first comprehensive AI law.  The regulation imposes transparency obligations and compliance requirements with EU copyright laws on general-purpose and high-risk AI systems. These regulations aim to ensure accountability and mitigate potential harms associated with AI technologies.

The ECB notes that the adoption of AI systems by European financial companies is still in its early stages. Market contacts suggest that some hesitation exists among the Euro area financial institutions, partly due to perceived risks and potential reputational concerns.

Workplace app discontinued as Meta invests in AI and metaverse

Meta Platforms, the parent company of Facebook, announced that it will discontinue its Workplace app, a platform geared towards work-related communications. The social media platform made this decision as it shifted its focus towards developing AI and metaverse technologies. The Workplace app will be phased out for customers starting in June 2026, although Meta will continue to utilise it internally as a messaging board until August 2025, according to a statement from the company.

A spokesperson for Meta stated that they are discontinuing Workplace to focus on building AI and metaverse technologies that they believe will fundamentally reshape the way they work. Over the next two years, Workplace customers will have the option to transition to Zoom’s Workvivo product, which Meta has designated as its preferred migration partner. Workplace was initially launched in 2016 to cater to businesses, offering features such as multi-company groups and shared spaces to facilitate collaboration among employees from different organizations.

Why does it matter?

The discontinuation of Workplace aligns with Meta’s strategic emphasis on advancing AI and metaverse technologies, which it views as integral to the future of digital communication. The strategic change of business direction has raised concerns about escalating costs that could potentially impact the company’s growth trajectory. Despite the discontinuation of Workplace, Meta has assured customers that billing and payment arrangements will remain unchanged until August of this year. Currently, Workplace offers a core plan priced at $4 per user per month, with additional add-ons available starting from $2 per user per month, with monthly bills calculated based on the number of billable users unless a fixed plan is in place.

Microsoft offers relocation to AI employees in China amidst US-China tech tensions

Microsoft is offering its China-based employees working in AI the opportunity to relocate to overseas locations such as the US, Australia, and Ireland, according to sources familiar with the matter. The offer extends to Azure cloud computing team employees, who were notified earlier this week and have until 7 June to decide. Those who opt not to relocate can remain with the China team, although Microsoft has halted new hiring in China, eliminating job openings.

The relocation program affects approximately 700 to 800 people, primarily those engaged in machine learning. Microsoft has offices in Beijing, Shanghai, and Suzhou but has not responded to requests for comment regarding the relocation offer. Last year, Microsoft relocated some of its top AI researchers from China to a new research lab in Vancouver, Canada, as part of its broader AI strategy.

Why does it matter?

The offer to the employees comes amidst escalating geopolitical tensions between the US and China, which have increasingly impacted corporate decisions. At a bilateral meeting in Geneva, US officials expressed concerns about the misuse of AI, particularly by China. The Biden administration is considering new restrictions on exporting proprietary AI models to China, reflecting growing scrutiny over technology transfer.

Despite these tensions, Microsoft remains committed to its AI services in mainland China and Hong Kong, distinguishing itself from competitors like OpenAI and Google, which have restricted access to their AI products in these regions. The potential restrictions on AI software exports would add to existing limitations on Chinese firms’ access to advanced semiconductor technology, further complicating US-China relations in the tech sector.

Bipartisan senators push for $32 billion boost in AI research funding

A bipartisan coalition of US senators, including Majority Leader Chuck Schumer, called on Wednesday for a significant boost in government research funding for A.

Joined by Republicans Mike Rounds and Todd Young, along with Democrat Martin Heinrich, Schumer presented a strategic plan derived from expert consultations to address the rapid advancements and associated challenges of AI. The senators endorsed the national security commission on artificial intelligence report‘s recommendation to allocate at least $32 billion annually for non-defense AI innovation.

‘This is a time in which the dollars related to this particular investment will pay dividends to the taxpayers of this country long term,’ Rounds stated. He emphasised the urgency of matching or surpassing China’s substantial investment in AI, which exceeds US spending by a factor of ten, according to him. 

Schumer underscored the importance of this “surge emergency funding” to solidify America’s leadership in AI, particularly in competition with China. He also mentioned that Congress is considering additional significant funding for defense-related AI.

The proposed funding aims to establish a cross-government AI research and development initiative, including an ‘AI-ready data‘ program and enhanced infrastructure for government AI testing and evaluation. The senators highlighted AI’s transformative potential to eliminate debilitating diseases, alleviate traffic congestion, and deliver personalised education for all students.

Efforts to develop consensus on AI policy included a series of forums with industry leaders and experts. Despite these initiatives, progress on AI legislation has been slow, with the Biden administration and lawmakers expressing concerns over AI’s potential to affect elections and societal norms. The administration is separately working on regulatory measures.

Schumer expressed his hope that Congress would pass some form of AI-related legislation by the end of the year, stating, “We’re not going to wait on legislation that addresses every aspect of AI in society.”

US officials have warned about the risks of AI exacerbating biases and enabling election interference through sophisticated deepfakes. They also fear that advanced AI could be weaponized to create bioweapons or launch cyber attacks, with particular concern about China’s capabilities.

In response, the Senate Rules Committee is set to consider legislation aimed at mitigating AI’s impact on elections, including measures to prevent deceptive AI-generated content in campaign advertisements.

TikTok tests AI-powered search feature

TikTok is experimenting with an enhanced search feature, utilising generative AI to provide more comprehensive search results. Dubbed ‘search highlights’, this feature showcases AI-generated snippets at the top of certain search result pages, offering users a glimpse into the full response by clicking through. Initial tests reveal AI-generated responses for queries ranging from recipes to product recommendations, such as ‘best laptops 2024’.

Powered by ChatGPT, TikTok’s AI search results aim to surface relevant content based on user queries. However, the feature has limitations, with not all searches yielding AI-generated answers. Some search queries display results generated by ChatGPT alongside a broader ‘search highlights’ feature.

The birth of the new search tool, backed by AI, reflects TikTok’s ongoing efforts to enhance its in-app search functionality, aligning with users’ habits, particularly among younger demographics. Recognising TikTok’s role as a search destination for recommendations and information, the platform previously experimented with integrating Google Search results and direct links to external websites like Wikipedia and IMDb. By incorporating AI-driven results prominently, TikTok aims to cater to users’ preferences and further solidify its position as a go-to platform for discovering diverse content.