The SEC Newgate AI Weekly

This week felt dominated by the rules and regulations that govern AI, with an extensive agreement passed by the EU on how to govern the technology.  Social media platforms were also under the spotlight for the use of material created using generative AI tools, whilst Open AI shared that it was looking at criticism that the platform had been getting ‘lazier’. Alongside this, there was also a significant agreement struck between Open AI and with Axel Springer, the giant German multinational mass media company, to offer its content to Open AI for training its AI models. The biggest stories of the past week are as follows:

Legislation

Late last week, the EU agreed on the terms for legislation to regulate artificial intelligence, as the next step in implementing the world’s most restrictive rules on the development of the rapidly developing technology. This outline comes after years of discussions among member states and members of the European parliament on the ways AI should be curbed to have humanity’s interest at the heart of the legislation. It came after marathon discussions that started on Wednesday this week. Analysts have considered whether this ruling is ahead of the curve or behind the times, but commentators have said that this ruling is important as it’s the first, not because it’s the most comprehensive. Whilst there is no public text of the act yet, which should be published in several weeks time, this builds on the EU’s Digital Services Act and Digital Markets Act, which are now being implemented. Notably, the Act has fired the starting gun for considering the environmental impact of AI, with the announcement on the agreement stating that ‘certain environmental standards’ are at the heart of the agreement.  

Regulation

Away from the EU, British regulators have begun to gather information to see if Microsoft’s partnership with OpenAI violates antitrust laws. On Friday, the UK’s competition watchdog, the Competition Marketers Authority, issued a statement inviting commentary about whether Microsoft and OpenAI’s ties have “resulted in a relevant merger situation and, if so, the impact that the merger could have on competition in the UK.” 

Generative AI

The focus on the use of video content developed using AI was under the spotlight again this week, as various social platforms came under scrutiny last week for the use of generative AI, with Meta facing a backlash for training its AI platform with users’ photos from Facebook and Instagram.

Back to OpenAI, the company has said it’s looking into concerns about ChatGPT “getting lazier,” following reports of users finding the chatbot becoming less predictable. This follows numerous complaints online that the system had been getting less useful, less efficient and was returning shorter answers.

This week, Open AI also struck a landmark deal with Axel Springer, the giant German multinational mass media company, to offer its content to Open AI for training its AI models. The content from the media giant’s publications, which include Bild, Politico and Business Insider, will be shared with Open AI to help the company produce text, code and images using its models. In practice, this will result in almost near-time access to its stories, allowing users to ask questions on issues in the media.

In another sign of greater corporate integration of AI tools, McDonald’s has announced that it is using Google Cloud’s generative artificial intelligence (AI) tools at restaurants to improve customer experience, to make operations more efficient and to improve the customer experience. McDonald’s has said that it will look to use the technology for back-office tasks, and to deploy new software for its digital platforms from next year. Called ‘Ask Pickles’, the back-office bot will be trained on the company’s manuals to data in its company’s restaurants, offering restaurant workers quick answers on questions such as ‘how do I change the oil in a fryer?’.