Competition regulation

OpenAI pulls searchable chats from ChatGPT

OpenAI has removed a feature that allowed users to make their ChatGPT conversations publicly searchable, following backlash over accidental exposure of sensitive content.

Dane Stuckey, OpenAI’s CISO, confirmed the rollback on Thursday, describing it as a short-lived experiment meant to help users find helpful conversations. However, he acknowledged that the feature posed privacy risks.

‘Ultimately, we think this feature introduced too many opportunities for folks to accidentally share things they didn’t intend to,’ Stuckey wrote in a post on X. He added that OpenAI is working to remove any indexed content from search engines.

The move came swiftly after Fast Company and privacy advocate Luiza Jarovsky reported that some shared conversations were appearing in Google search results.

Jarovsky posted examples on X, noting that even though the chats were anonymised, users were unknowingly revealing personal experiences, including harassment and mental health struggles.

To activate the feature, users had to tick a box allowing their chat to be discoverable. While the process required active steps, critics warned that some users might opt in without fully understanding the consequences. Stuckey said the rollback will be complete by Friday morning.

The incident adds to growing concerns around AI and user privacy, particularly as conversational platforms like ChatGPT become more embedded in everyday life.

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As Meta AI grows smarter on its own, critics warn of regulatory gaps

While OpenAI’s ChatGPT and Google’s Gemini dominate headlines, Meta’s AI is making quieter, but arguably more unsettling, progress. According to CEO Mark Zuckerberg, Meta’s AI is advancing rapidly and, crucially, learning to improve without external input.

In a blog post titled ‘Personal Superintelligence’, Zuckerberg claimed that Meta AI is becoming increasingly powerful through self-directed development. While he described current gains as modest, he emphasised that the trend is both real and significant.

Zuckerberg framed this as part of a broader mission to build AI that acts as a ‘personal superintelligence’, a tool that empowers individuals and becomes widely accessible. However, critics argue this narrative masks a deeper concern: AI systems that can evolve autonomously, outside human guidance or scrutiny.

The concept of self-improving AI is not new. Researchers have previously built systems capable of learning from other models or user interactions. What’s different now is the speed, scale and opacity of these developments, particularly within big tech companies operating with minimal public oversight.

The progress comes amid weak regulation. While governments like the Biden administration have issued AI action plans, experts say they lack the strength to keep up. Meanwhile, AI is rapidly spreading across everyday services, from healthcare and education to biometric verification.

Recent examples include Google’s behavioural age-estimation tools for teens, illustrating how AI is already making high-stakes decisions. As AI systems become more capable, questions arise: How much data will they access? Who controls them? And can the public meaningfully influence their design?

Zuckerberg struck an optimistic tone, framing Meta’s AI as democratic and empowering. However, that may obscure the risks of AI outpacing oversight, as some tech leaders warn of existential threats while others focus on commercial gains.

The lack of transparency worsens the problem. If Meta’s AI is already showing signs of self-improvement, are similar developments happening in other frontier models, such as GPT or Gemini? Without independent oversight, the public has no clear way to know—and even less ability to intervene.

Until enforceable global regulations are in place, society is left to trust that private firms will self-regulate, even as they compete in a high-stakes race for dominance. That’s a risky gamble when the technology itself is changing faster than we can respond.

As Meta AI evolves with little fanfare, the silence may be more ominous than reassuring. AI’s future may arrive before we are prepared to manage its consequences, and by then, it might be too late to shape it on our terms.

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Delta’s personalised flight costs under scrutiny

Delta Air Lines’ recent revelation about using AI to price some airfares is drawing significant criticism. The airline aims to increase AI-influenced pricing to 20 per cent of its domestic flights by late 2025.

While Delta’s president, Glen Hauenstein, noted positive results from their Fetcherr-supplied AI tool, industry observers and senators are voicing concerns. Critics worry that AI-driven pricing, similar to rideshare surge models, could lead to increased fares for travellers and raise serious data privacy issues.

Senators like Ruben Gallego, Mark Warner, and Richard Blumenthal, highlighted fears that ‘surveillance pricing’ could utilise extensive personal data to estimate a passenger’s willingness to pay.

Despite Delta’s spokesperson denying individualised pricing based on personal information, AI experts suggest factors like device type and Browse behaviour are likely influencing prices, making them ‘deeply personalised’.

Different travellers could be affected unevenly. Bargain hunters with flexible dates might benefit, but business travellers and last-minute bookers may face higher costs. Other airlines like Virgin Atlantic also use Fetcherr’s technology, indicating a wider industry trend.

Pricing experts like Philip Carls warn that passengers won’t know if they’re getting a fair deal, and proving discrimination, even if unintended by AI, could be almost impossible.

American Airlines’ CEO, Robert Isom, has publicly criticised Delta’s move, stating American won’t copy the practice, though past incidents show airlines can adjust fares based on booking data even without AI.

With dynamic pricing technology already permitted, experts anticipate lawmakers will soon scrutinise AI’s role more closely, potentially leading to new transparency mandates.

For now, travellers can try strategies like using incognito mode, clearing cookies, or employing a VPN to obscure their digital footprint and potentially avoid higher AI-driven fares.

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EU AI Act oversight and fines begin this August

A new phase of the EU AI Act takes effect on 2 August, requiring member states to appoint oversight authorities and enforce penalties. While the legislation has been in force for a year, this marks the beginning of real scrutiny for AI providers across Europe.

Under the new provisions, countries must notify the European Commission of which market surveillance authorities will monitor compliance. But many are expected to miss the deadline. Experts warn that without well-resourced and competent regulators, the risks to rights and safety could grow.

The complexity is significant. Member states must align enforcement with other regulations, such as the GDPR and Digital Services Act, raising concerns regarding legal fragmentation and inconsistent application. Some fear a repeat of the patchy enforcement seen under data protection laws.

Companies that violate the EU AI Act could face fines of up to €35 million or 7% of global turnover. Smaller firms may face reduced penalties, but enforcement will vary by country.

Rules regarding general-purpose AI models such as ChatGPT, Gemini, and Grok also take effect. A voluntary Code of Practice introduced in July aims to guide compliance, but only some firms, such as Google and OpenAI, have agreed to sign. Meta has refused, arguing the rules stifle innovation.

Existing AI tools have until 2027 to comply fully, but any launched after 2 August must meet the new requirements immediately. With implementation now underway, the AI Act is shifting from legislation to enforcement.

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Apple’s $20B Google deal under threat as AI lags behind rivals

Apple is set to release Q3 earnings on Thursday amid scrutiny over its Google search deal dependencies and ongoing struggles with AI progress.

Typically, Apple’s fiscal Q3 garners less investor attention, with anticipation focused instead on the upcoming iPhone launch in Q4. However, this quarter is proving to be anything but ordinary.

Analysts and shareholders alike are increasingly concerned about two looming threats: a potential $20 billion hit to Apple’s Services revenue tied to the US Department of Justice’s (DOJ) antitrust case against Google, and ongoing delays in Apple’s AI efforts.

Ahead of the earnings report, Apple shares were mostly unchanged, reflecting investor caution rather than enthusiasm. Apple’s most pressing challenge stems from its lucrative partnership with Google.

In 2022, Google paid Apple approximately $20 billion to remain the default search engine in the Safari browser and across Siri.

The exclusivity deal has formed a significant portion of Apple’s Services segment, which generated $78.1 billion in revenue that year, making Google’s contribution alone account for more than 25% of that figure.

However, a ruling expected next month from Judge Amit Mehta in the US District Court for the District of Columbia could threaten the entire arrangement. Mehta previously found Google guilty of operating an illegal monopoly in the search market.

The forthcoming ‘remedies’ ruling could force Google to end exclusive search deals, divest its Chrome browser, and provide data access to rivals. Should the DOJ’s proposed remedies stand and Google fails to overturn the ruling, Apple could lose a critical source of Services revenue.

According to Morgan Stanley’s Erik Woodring, Apple could see a 12% decline in its full-year 2027 earnings per share (EPS) if it pivots to less lucrative partnerships with alternative search engines.

The user experience may also deteriorate if customers can no longer set Google as their default option. A more radical scenario, Apple launching its search engine, could dent its 2024 EPS by as much as 20%, though analysts believe this outcome is the least likely.

Alongside regulatory threats, Apple is also facing growing doubts about its ability to compete in AI. Apple has not yet set a clear timeline for releasing an upgraded version of Siri, while rivals accelerate AI hiring and unveil new capabilities.

Bank of America analyst Wamsi Mohan noted this week that persistent delays undermine confidence in Apple’s ability to deliver innovation at the pace. ‘Apple’s ability to drive future growth depends on delivering new capabilities and products on time,’ he wrote to investors.

‘If deadlines keep slipping, that potentially delays revenue opportunities and gives competitors a larger window to attract customers.’

While Apple has teased upcoming AI features for future software updates, the lack of a commercial rollout or product roadmap has made investors uneasy, particularly as rivals like Microsoft, Google, and OpenAI continue to set the AI agenda.

Although Apple’s stock remained stable before Thursday’s earnings release, any indication of slowing services growth or missed AI milestones could shake investor confidence.

Analysts will be watching closely for commentary from CEO Tim Cook on how Apple plans to navigate regulatory risks and revive momentum in emerging technologies.

The company’s current crossroads is pivotal for the tech sector more broadly. Regulators are intensifying scrutiny on platform dominance, and AI innovation is fast becoming the new battleground for long-term growth.

As Apple attempts to defend its business model and rekindle its innovation edge, Thursday’s earnings update could serve as a bellwether for its direction in the post-iPhone era.

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Alignment Project to tackle safety risks of advanced AI systems

The UK’s Department for Science, Innovation and Technology (DSIT) has announced a new international research initiative aimed at ensuring future AI systems behave in ways aligned with human values and interests.

Called the Alignment Project, the initiative brings together global collaborators including the Canadian AI Safety Institute, Schmidt Sciences, Amazon Web Services (AWS), Anthropic, Halcyon Futures, the Safe AI Fund, UK Research and Innovation, and the Advanced Research and Invention Agency (ARIA).

DSIT confirmed that the project will invest £15 million into AI alignment research – a field concerned with developing systems that remain responsive to human oversight and follow intended goals as they become more advanced.

Officials said this reflects growing concerns that today’s control methods may fall short when applied to the next generation of AI systems, which are expected to be significantly more powerful and autonomous.

This positioning reinforces the urgency and motivation behind the funding initiative, before going into the mechanics of how the project will work.

The Alignment Project will provide funding through three streams, each tailored to support different aspects of the research landscape. Grants of up to £1 million will be made available for researchers across a range of disciplines, from computer science to cognitive psychology.

A second stream will provide access to cloud computing resources from AWS and Anthropic, enabling large-scale technical experiments in AI alignment and safety.

The third stream focuses on accelerating commercial solutions through venture capital investment, supporting start-ups that aim to build practical tools for keeping AI behaviour aligned with human values.

An expert advisory board will guide the distribution of funds and ensure that investments are strategically focused. DSIT also invited further collaboration, encouraging governments, philanthropists, and industry players to contribute additional research grants, computing power, or funding for promising start-ups.

Science, Innovation and Technology Secretary Peter Kyle said it was vital that alignment research keeps pace with the rapid development of advanced systems.

‘Advanced AI systems are already exceeding human performance in some areas, so it’s crucial we’re driving forward research to ensure this transformative technology is behaving in our interests,’ Kyle said.

‘AI alignment is all geared towards making systems behave as we want them to, so they are always acting in our best interests.’

The announcement follows recent warnings from scientists and policy leaders about the risks posed by misaligned AI systems. Experts argue that without proper safeguards, powerful AI could behave unpredictably or act in ways beyond human control.

Geoffrey Irving, chief scientist at the AI Safety Institute, welcomed the UK’s initiative and highlighted the need for urgent progress.

‘AI alignment is one of the most urgent and under-resourced challenges of our time. Progress is essential, but it’s not happening fast enough relative to the rapid pace of AI development,’ he said.

‘Misaligned, highly capable systems could act in ways beyond our ability to control, with profound global implications.’

He praised the Alignment Project for its focus on international coordination and cross-sector involvement, which he said were essential for meaningful progress.

‘The Alignment Project tackles this head-on by bringing together governments, industry, philanthropists, VC, and researchers to close the critical gaps in alignment research,’ Irving added.

‘International coordination isn’t just valuable – it’s necessary. By providing funding, computing resources, and interdisciplinary collaboration to bring more ideas to bear on the problem, we hope to increase the chance that transformative AI systems serve humanity reliably, safely, and in ways we can trust.’

The project positions the UK as a key player in global efforts to ensure that AI systems remain accountable, transparent, and aligned with human intent as their capabilities expand.

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Brainstorming with AI opens new doors for innovation

AI is increasingly embraced as a reliable creative partner, offering speed and breadth in idea generation. In Fast Company, Kevin Li describes how AI complements human brainstorming under time pressure, drawing from his work at Amazon and startup Stealth.

Li argues AI is no longer just a tool but a true collaborator in creative workflows. Generative models can analyse vast data sets and rapidly suggest alternative concepts, helping teams reimagine product features, marketing strategies, and campaign angles. The shift aligns with broader industry trends.

A McKinsey report from earlier this year highlighted that, while only 1% of companies consider themselves mature in AI use, most are investing heavily in this area. Creative use cases are expected to generate massive value by 2025.

Li notes that the most effective use of AI occurs when it’s treated as a sounding board. He recounts how the quality of ideas improved significantly when AI offered raw directions that humans later refined. The hybrid model is gaining traction across multiple startups and established firms alike.

Still, original thinking remains a hurdle. A recent study by PsyPost found human pairs often outperform AI tools in generating novel ideas during collaborative sessions. While AI offers scale, human teams reported more substantial creative confidence and profound originality.

The findings suggest AI may work best at the outset of ideation, followed by human editing and development. Experts recommend setting clear roles for AI in the creative cycle. For instance, tools like ChatGPT or Midjourney might handle initial brainstorming, while humans oversee narrative coherence, tone, and ethics.

The approach is especially relevant in advertising, product design, and marketing, where nuance is still essential. Creatives across X are actively sharing tips and results. One agency leader posted about reducing production costs by 30% using AI tools for routine content work.

The strategy allowed more time and budget to focus on storytelling and strategy. Others note that using AI to write draft copy or generate design options is becoming common. Yet concerns remain over ethical boundaries.

The Orchidea Innovation Blog cautioned in 2023 that AI often recycles learned material, which can limit fresh perspectives. Recent conversations on X raise alarms about over-reliance. Some fear AI-generated content will eradicate originality across sectors, particularly marketing, media, and publishing.

To counter such risks, structured prompting and human-in-the-loop models are gaining popularity. ClickUp’s AI brainstorming guide recommends feeding diverse inputs to avoid homogeneous outputs. Précis AI referenced Wharton research to show that vague prompts often produce repetitive results.

The solution: intentional, varied starting points with iterative feedback loops. Emerging platforms are tackling this in real-time. Ideamap.ai, for example, enables collaborative sessions where teams interact with AI visually and textually.

Jabra’s latest insights describe AI as a ‘thought partner’ rather than a replacement, enhancing team reasoning and ideation dynamics without eliminating human roles. Looking ahead, the business case for AI creativity is strong.

McKinsey projects hundreds of billions in value from AI-enhanced marketing, especially in retail and software. Influencers like Greg Isenberg predict $100 million niches built on AI-led product design. Frank$Shy’s analysis points to a $30 billion creative AI market by 2025, driven by enterprise tools.

Even in e-commerce, AI is transforming operations. Analytics India Magazine reports that brands build eight-figure revenues by automating design and content workflows while keeping human editors in charge. The trend is not about replacement but refinement and scale.

Li’s central message remains relevant: when used ethically, AI augments rather than replaces creativity. Responsible integration supports diverse voices and helps teams navigate the fast-evolving innovation landscape. The future of ideation lies in balance, not substitution.

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Italy investigates Meta over AI integration in WhatsApp

Italy’s antitrust watchdog has investigated Meta Platforms over allegations that the company may have abused its dominant position by integrating its AI assistant directly into WhatsApp.

The Rome-based authority, formally known as the Autorità Garante della Concorrenza e del Mercato (AGCM), announced the probe on Wednesday, stating that Meta may have breached European Union competition regulations.

The regulator claims that the introduction of the Meta AI assistant into WhatsApp was carried out without obtaining prior user consent, potentially distorting market competition.

Meta AI, the company’s virtual assistant designed to provide chatbot-style responses and other generative AI functions, has been embedded in WhatsApp since March 2025. It is accessible through the app’s search bar and is intended to offer users conversational AI services directly within the messaging interface.

The AGCM is concerned that this integration may unfairly favour Meta’s AI services by leveraging the company’s dominant position in the messaging market. It warned that such a move could steer users toward Meta’s products, limit consumer choice, and disadvantage competing AI providers.

‘By pairing Meta AI with WhatsApp, Meta appears to be able to steer its user base into the new market not through merit-based competition, but by ‘forcing’ users to accept the availability of two distinct services,’ the authority said.

It argued that this strategy may undermine rival offerings and entrench Meta’s position across adjacent digital services. In a statement, Meta confirmed cooperating fully with the Italian authorities.

The company defended the rollout of its AI features, stating that their inclusion in WhatsApp aimed to improve the user experience. ‘Offering free access to our AI features in WhatsApp gives millions of Italians the choice to use AI in a place they already know, trust and understand,’ a Meta spokesperson said via email.

The company maintains its approach, which benefits users by making advanced technology widely available through familiar platforms. The AGCM clarified that its inquiry is conducted in close cooperation with the European Commission’s relevant offices.

The cross-border collaboration reflects the growing scrutiny Meta faces from regulators across the EU over its market practices and the use of its extensive user base to promote new services.

If the authority finds Meta in breach of EU competition law, the company could face a fine of up to 10 percent of its global annual turnover. Under Article 102 of the Treaty on the Functioning of the European Union, abusing a dominant market position is prohibited, particularly if it affects trade between member states or restricts competition.

To gather evidence, AGCM officials inspected the premises of Meta’s Italian subsidiary, accompanied by Guardia di Finanza, the tax police’s special antitrust unit in Italy.

The inspections were part of preliminary investigative steps to assess the impact of Meta AI’s deployment within WhatsApp. Regulators fear that embedding AI assistants into dominant platforms could lead to unfair advantages in emerging AI markets.

By relying on its established user base and platform integration, Meta may effectively foreclose competition by making alternative AI services harder to access or less visible to consumers. Such a case would not be the first time Meta has faced regulatory scrutiny in Europe.

The company has been the subject of multiple investigations across the EU concerning data protection, content moderation, advertising practices, and market dominance. The current probe adds to a growing list of regulatory pressures facing the tech giant as it expands its AI capabilities.

The AGCM’s investigation comes amid broader EU efforts to ensure fair competition in digital markets. With the Digital Markets Act and AI Act emerging, regulators are becoming more proactive in addressing potential risks associated with integrating advanced technologies into consumer platforms.

As the investigation continues, Meta’s use of AI within WhatsApp will remain under close watch. The outcome could set an essential precedent for how dominant tech firms can release AI products within widely used communication tools.

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EU Commission accuses Temu of failing DSA checks

The European Commission has accused Temu of breaching the Digital Services Act by failing to assess and address the sale of illegal or dangerous products.

The accusation follows months of investigation and a review of a required risk report submitted by Temu, which the Commission found too vague.

A mystery shopping exercise by the EU uncovered unsafe toys and electronics on the platform, raising concerns over consumer safety.

Additional parts of the probe are ongoing, including scrutiny of Temu’s use of addictive designs, algorithmic transparency and product recommendations.

Temu now has a few weeks to respond to the preliminary findings, though no final deadline has been given. Under the DSA, confirmed violations could result in fines of up to 6% of a company’s global turnover.

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The US push for AI dominance through openness

In a bold move to maintain its edge in the global AI race—especially against China—the United States has unveiled a sweeping AI Action Plan with 103 recommendations. At its core lies an intriguing paradox: the push for open-source AI, typically associated with collaboration and transparency, is now being positioned as a strategic weapon.

As Jovan Kurbalija points out, this plan marks a turning point where open-weight models are framed not just as tools of innovation, but as instruments of geopolitical influence, with the US aiming to seed the global AI ecosystem with American-built systems rooted in ‘national values.’

The plan champions Silicon Valley by curbing regulations, limiting federal scrutiny, and shielding tech giants from legal liability—potentially reinforcing monopolies. It also underlines a national security-first mentality, urging aggressive safeguards against foreign misuse of AI, cyber threats, and misinformation. Notably, it proposes DARPA-led initiatives to unravel the inner workings of large language models, acknowledging that even their creators often can’t fully explain how these systems function.

Internationally, the plan takes a competitive, rather than cooperative, stance. Allies are expected to align with US export controls and values, while multilateral forums like the UN and OECD are dismissed as bureaucratic and misaligned. That bifurcation risks alienating global partners—particularly the EU, which favours heavy AI regulation—while increasing pressure on countries like India and Japan to choose sides in the US–China tech rivalry.

Despite its combative framing, the strategy also nods to inclusion and workforce development, calling for tax-free employer-sponsored AI training, investment in apprenticeships, and growing military academic hubs. Still, as Kurbalija warns, the promise of AI openness may clash with the plan’s underlying nationalistic thrust—raising questions about whether it truly aims to democratise AI, or merely dominate it.

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