Catch up on select AI news and developments from the past week or so:
FTC launches inquiry into AI chatbots and child safety. The Federal Trade Commission has opened an inquiry into Alphabet, Meta, Snap, OpenAI, xAI, and others regarding the risks of AI chatbots used as companions by children and teens. The probe examines safety measures, parental controls, and potential harms after lawsuits alleging dangerous interactions, including suicides linked to chatbot use. Companies are beginning to adjust chatbot responses for minors, limiting discussions on sensitive topics like self-harm and providing parental oversight tools. Importance for marketers: This scrutiny highlights growing regulatory attention on AI safety and youth audiences—an area marketers must monitor when planning campaigns targeting families or younger demographics.
Roku to flood streaming TV with AI-generated ads. Roku is planning to expand its ad base from 200 major advertisers to 100,000 by using generative AI. Executives say AI will allow more, smaller brands to advertise on its platform, bringing ads that look more like social media spots. Roku claims its devices now account for 20% of all US TV viewing and are present in more than half of US broadband households. Importance for marketers: This signals a major shift in connected TV advertising, opening opportunities for smaller brands to compete alongside established advertisers with AI-driven creative.
Google expands AI Mode in Search to new languages. Google has expanded AI Mode to five additional languages—Hindi, Indonesian, Japanese, Korean, and Brazilian Portuguese—beyond English. Initially launched for subscribers, AI Mode now reaches 180 markets. It incorporates Gemini 2.5 with multimodal and reasoning capabilities, plus early agentic features like booking reservations. Google indicates AI Mode may soon become the default search experience. Importance for marketers: Global marketers must adapt SEO and content strategies as AI-powered search reshapes traffic flows, now across multiple high-population regions beyond English speakers.
Geoffrey Hinton warns AI will drive unemployment and inequality. Nobel laureate Geoffrey Hinton, often called the "godfather of AI," predicted AI will massively increase unemployment and concentrate profits among the wealthy. In an interview with the Financial Times, he argued that AI will replace many jobs, especially entry-level ones, while sparing some high-skill roles. He dismissed universal basic income as insufficient to preserve dignity. Hinton also reiterated his warnings of existential risks from AI misuse. Importance for marketers: These warnings influence public perception and policy discussions, shaping how businesses communicate about AI adoption and its societal impact.
AI reshapes call centers but complex cases still need humans. AI is increasingly taking over call center tasks, with companies like Klarna replacing hundreds of agents. While AI cuts costs and handles routine inquiries, complex cases like identity theft still require skilled human agents. Firms are moving toward hybrid models with fewer but better-trained staff. Bank of America's "Erica" chatbot, now used 3 billion times, exemplifies AI's growing role. Importance for marketers: Customer experience teams must plan for AI-human hybrid service models, ensuring automation enhances rather than harms brand perception.
UK study finds AI assistants benefit neurodiverse workers most. A UK government study found neurodiverse employees, including those with ADHD and dyslexia, reported significantly higher satisfaction with AI assistants like Microsoft Copilot compared with neurotypical colleagues. Users cited benefits like improved report writing, meeting participation, and executive function support. The study suggests AI may fill accessibility gaps that traditional tools missed, though risks of inaccuracy remain. Importance for marketers: These findings highlight accessibility as a potential breakthrough use case, expanding inclusivity narratives and brand positioning for companies deploying AI tools.
OpenAI to launch AI jobs platform and certification program. OpenAI announced plans for a jobs platform connecting AI-skilled workers with employers, plus a certification program developed with Walmart to train staff in AI applications. The goal is to certify 10 million Americans by 2030. Presented at a White House meeting, the initiative positions OpenAI against platforms like LinkedIn. Early use cases include staff scheduling and supply chain optimization. Importance for marketers: This could reshape recruitment, skills development, and talent branding, while signaling new competition in professional networking markets.
AI-animated feature film "Critterz" set for 2026 release. Vertigo Films and Native Foreign are producing "Critterz," an AI-assisted animated feature using OpenAI's tools, based on a 2023 short. With a sub-$30 million budget and small team, it contrasts with traditional $150M+ animation projects. The film aims to show AI's potential for independent cinema. The project reignites debate over AI's role in Hollywood after strikes over the technology's use. Importance for marketers: Demonstrates how AI could disrupt creative industries, cutting production costs and enabling more content creation—while sparking ethical and labor debates.
Judge pauses Anthropic's $1.5B book piracy settlement. A federal judge has temporarily blocked Anthropic's $1.5 billion settlement with authors over book piracy concerns. Judge William Alsup raised issues about fairness, compensation, and potential future lawsuits, requiring further review before approval. The proposed deal would have paid about $3,000 per work to 465,000 affected authors. A hearing is scheduled for September 25. Importance for marketers: Legal uncertainty around AI training data continues, affecting trust in generative AI products and highlighting risks for companies depending on large language models.
Apple sued for allegedly using pirated books to train AI. Authors Grady Hendrix and Jennifer Roberson filed a class action accusing Apple of training its OpenELM language models with pirated books. The lawsuit follows similar claims against Microsoft, Meta, and OpenAI, amid broader copyright disputes in AI training. Apple has not commented on the case. Importance for marketers: Ongoing copyright lawsuits may influence how tech firms source training data, with implications for brand reputation and compliance.
Captions rebrands as Mirage, expands to AI video research. Video creation startup Captions has rebranded as Mirage to reflect broader ambitions in AI video research, especially for short-form platforms like TikTok and Reels. Mirage Studio lets brands create ads with AI-generated avatars and custom content. The company says it has moderation measures against deepfakes but stresses media literacy will be essential. Importance for marketers: Highlights the rapid evolution of AI video tools, providing cost-effective ad creation options while raising ethical and authenticity challenges.
Vivrelle launches AI stylist "Ella" with Revolve and FWRD. Luxury rental platform Vivrelle partnered with Revolve and FWRD to launch Ella, an AI-powered stylist that suggests outfits for events or trips. The tool integrates rental, resale, and retail into one shopping cart. This follows their earlier AI tool "Complete the Look." Vivrelle recently raised $62 million in Series C funding. Importance for marketers: Signals the growing use of AI for personalization in retail, combining convenience and style guidance across multiple shopping formats.
Grammarly adds support for Spanish, French, and more. Grammarly expanded beyond English, adding Spanish, French, Portuguese, German, and Italian grammar correction with AI enhancements. The app also now translates between 19 languages. This expansion follows acquisitions and new AI agents aimed at education. Google and Apple are also advancing multilingual AI tools. Importance for marketers: Expanding language support in widely used tools enhances global content creation, customer communication, and localization strategies.
YC startup Human Behavior raises $5M to analyze user sessions with AI. Human Behavior, founded by 20- and 22-year-olds, raised $5M from General Catalyst and YC to build vision AI that analyzes user session replays. Unlike clickstream analytics, it interprets actual interactions to provide insights on conversions, churn, and bugs. Early clients include fast-growing startups. Importance for marketers: A new frontier in analytics may give product and marketing teams deeper behavioral insights, bypassing traditional event tracking.
Sam Altman: bots make social media feel "fake." OpenAI CEO Sam Altman remarked that bots have made social platforms feel "fake," even when genuine activity exists. He noted how users and LLMs increasingly mimic each other's quirks, blurring lines between human and machine communication. Altman hinted at potential astroturfing and engagement-driven distortions. Importance for marketers: Raises questions about authenticity, bot-driven engagement, and trust in online communities—all critical for social media marketing strategies.
ASML invests $1.5B in French AI startup Mistral. Dutch chipmaking giant ASML invested €1.3 billion ($1.5B) in Mistral AI, taking an 11% stake. The partnership aims to strengthen Europe's AI ecosystem and reduce reliance on US tech. Nvidia also joined the funding round. Importance for marketers: While primarily a tech supply chain story, it underscores Europe's push for AI independence, which may impact regulatory and market dynamics.
Inside the world of AI trainers and data labelers. A report detailed the precarious work of AI data labelers, who train models by annotating outputs and handling disturbing content. Pay varies widely, with many facing unstable conditions. Some companies are shifting to in-house or specialized annotators. Importance for marketers: While not customer-facing, this highlights ethical risks in AI supply chains, which could affect brand perception if exposed.
Amazon developing consumer AR glasses to rival Meta. Amazon is reportedly developing consumer AR glasses, codenamed "Jayhawk," for release in 2026–2027. A delivery-driver version may ship earlier in 2026. The move would compete with Meta's smart glasses line. Importance for marketers: AR glasses remain long-term, but they could become a future marketing channel for immersive brand experiences.
You can find the previous issue of AI Update here.
Editor's note: GPT-5 was used to help compile this issue of AI Update.
