Lloyd’s insurers offer new coverage for AI hallucination damages

A group of Lloyd’s of London insurers has launched a specialized insurance product to cover companies against losses caused by malfunctioning AI tools. As reported by Lee Harris and Melissa Heikkilä in the Financial Times, the policies developed by Y Combinator-backed startup Armilla will pay for damages and legal fees if companies face lawsuits due … Read more

Perplexity partners with PayPal for in-chat shopping

Perplexity AI is integrating PayPal to enable direct purchases within its chat interface. According to MacKenzie Sigalos from CNBC, U.S. customers will soon be able to book travel, buy products, and secure concert tickets without leaving the platform. PayPal will handle payment processing, shipping, tracking, and invoicing through one-click purchases with passkey checkout. This move … Read more

Klarna restores human customer service options alongside AI

Klarna is changing its customer service strategy by reintroducing human representatives after previously touting its AI chatbot as a replacement for 700 workers. According to Kristen Doerer from CX Dive, the buy now, pay later company now wants customers to always have the option to speak with a human. Klarna’s CEO Sebastian Siemiatkowski acknowledged in … Read more

OpenAI: nonprofit keeps control while transitioning to public benefit corporation

OpenAI has announced a significant reversal in its restructuring plans, stating that its nonprofit arm will retain control over the company’s operations even as it transitions its for-profit division to a public benefit corporation (PBC). This announcement represents a major shift from the company’s earlier intentions to convert more fully to a for-profit structure. In … Read more

Study finds LM Arena may favor major AI labs in its benchmarking

A new study by researchers from Cohere, Stanford, MIT, and Ai2 alleges that LM Arena, the organization behind the Chatbot Arena AI benchmark, provided preferential treatment to major AI companies. According to Maxwell Zeff’s TechCrunch report, companies like Meta, OpenAI, Google, and Amazon were allowed to privately test multiple model variants and only publish scores … Read more

Google places ads in AI chatbot conversations

Google has expanded its AdSense for Search network to include advertisements within AI chatbot conversations, according to reporting by Julia Love for Bloomberg. This move is part of Alphabet’s strategy to maintain its digital advertising dominance as generative AI technology grows. Google tested the approach with AI startups including iAsk and Liner before wider implementation. … Read more

Pinterest adds AI content labels and filtering options

Pinterest is introducing new features to help users identify and filter AI-generated content on its platform. Images created or edited with generative AI will now display an “AI modified” label in the bottom left corner when viewed up close. As reported by Jess Weatherbed in The Verge, Pinterest’s Chief Technology Officer Matt Madrigal stated that … Read more

Meta faces court test over LibGen use in AI training

Meta is appearing in court today in a significant legal case that could determine whether tech companies can use copyrighted material to train AI models without permission. According to reporting by Cristina Criddle and Hannah Murphy in the Financial Times, about a dozen authors including Ta-Nehisi Coates and Richard Kadrey are suing the tech giant … Read more

OpenAI rolls back ChatGPT update after backlash over flattery and sycophancy

OpenAI has rolled back a recent update to GPT-4o, the default model powering ChatGPT, following widespread criticism that the AI had become excessively flattering and agreeable. CEO Sam Altman acknowledged the issue on social media, stating that “the last couple of GPT-4o updates have made the personality too sycophant-y and annoying.” Users across various platforms … Read more

Washington Post partners with OpenAI to feature content in ChatGPT

The Washington Post has entered a strategic partnership with OpenAI to make its journalism accessible through ChatGPT. According to Todd Spangler’s article for Variety, the agreement will allow ChatGPT to display summaries, quotes, and links to Washington Post reporting in response to relevant search queries. The deal covers content across politics, global affairs, business, and … Read more