The Week in Generative AI: August 23, 2024 edition

Welcome to TheWeek in Generative AI,a weekly roundup for marketers from Quad Insights that sums up the latest news surrounding this rapidly evolving technology.

Brands should avoid the AI product label, study says

The AI hype train keeps a-rollin', but a new Washington State University study suggests that brands should think twice before slapping the "AI" label on their products, CNN Business' Erika Tulfo reports. In the study, Tulfo notes, participants across age groups were shown the same products or services with one key difference: One was described as "high tech" while the other used either "AI" or "artificial intelligence" in the description. "In every single case, the intention to buy or use the product or service was significantly lower whenever we mentioned AI in the product description," WSU professor and author of the study Dogan Gursoy told CNN. Tulfo offers that the result "highlights consumers' hesitance to incorporate AI into their daily lives - a marked divergence from the enthusiasm driving innovations in big tech." Find the full story here.

Previously:"Deloitte report: Gen AI poised to transform retail investing" from the Aug. 9 edition of this column.

See also:"eMarketer forecast: U.S. AI users to top 100 million this year" from the Aug. 2 edition of this column.

More AI trends:

• "The unstoppable rise of Chubby: Why TikTok's AI-generated cat could be the future of the internet"(BBC)

OpenAI partners with CondéNast

OpenAIon Wednesday announceda partnership with publisher Condé Nast, allowing the AI leader's ChatGPTand its SearchGPTprototype to leverage content from the media giant's publications (Vogue, GQ, The New Yorker, Vanity Fairand more). The partnership means both OpenAI models can output direct links to Condé Nast news stories "to give you fast and timely answers with clear and relevant sources," per the announcement.

As publishers trend toward entering licensing agreements with AI companies to protect their content and capitalize on an emerging revenue stream, Condé Nast joins a list of OpenAI partners that, per the announcement, already includes The Atlantic, Dotdash Meredithand TIME, among others.

Previously:"When AI goes mad: Models suffer without fresh data, study finds" from the Aug. 9 edition of this column.

See also:"OpenAI to Let Companies Customize Its Most Powerful AI Model"(Bloomberg)

Quote of the week

"It's just changing so quickly that now there needs to be an AI clause, and creators need to make sure that that's covered in there."

-Lindsay Calabrese, brand partnerships and culture director at ad agency Team One, inan interview with Digidayabout current challenges for creators and influencers, and the need for AI-specific language in partnership contracts.

More AI controversy:

• "Trump Promotes A.I. Images to Falsely Suggest Taylor Swift Endorsed Him"(The New York Times)
• "This founder had to train his AI not to Rickroll people"(TechCrunch)

170.3 million

The projected number of voice assistant users in the U.S. by 2028 - up from 145.1 million in 2023, per eMarketer's Voice Assistant User Forecast 2024. AI enhancements are seen as a major driver behind the continuing growth.

Walmart: Early gen AI investments already paying off

In Walmart's Q2 2024 earnings call, CEO Doug McMillan detailed how early AI investments are enhancing both customer- and employee-facing experiences for Walmart and Sam's Club, Consumer Goods Technology's Lisa Johnston reports. For instance, the retail giant has leveraged large language models to improve or create over 850 million product-attribute data points - "a task McMillon said would have required nearly 100 times the current headcount to complete in the same amount of time," Johnston notes, adding that McMillan also attributed a rise in digital impulse purchases to gen AI's ability to increase the effectiveness of cross-category search.

Previously:"Sam's Club expands rollout of AI-powered verification technology to replace physical receipt checks" from the May 3 edition of this column.

More AI financial results:

• "Meta Shares Are Flying High as Zuckerberg Sells His AI Vision"(Bloomberg via Yahoo Finance)
• "Creatopy, which automates ad creation using AI, raises a $10M Series A"(TechCrunch)

AMD to acquireZT Systems

Chipmaker AMDjust announcedit will acquire AI infrastructure and cloud computing company ZT Systemsfor $4.9 billion, TechCrunch's Ingrid Lunden reports. The move furthers AMD's investment in its broader ecosystem, giving "it a deeper bench of expertise in AI systems," Lunden notes.

Previously:"AMD unveils AI chips for business laptops and desktops" from the Apr. 19 edition of this column.

More AI industry strategy:

• "Canva Steps Up To Challenge Adobe With AI Acquisition And Partnerships"(Forbes)
• "The three categories of enterprise AI demand, according to Lenovo"(The Stack)
• "Microsoft is rebranding Copilot in the most Microsoft way possible"(The Verge)

Further reading

AI tools and advancements:

• "ElevenLabs' text-to-speech app Reader is now available globally"(TechCrunch)
• "GrubMarket Launches AI-Powered Chatbot"(Progressive Grocer)
• "Epic Systems is building more than 100 new AI features for doctors and patients. Here's what's coming"(CNBC)
• "X Launches Grok 2 To Boost Premium Sign-Ups"(Social Media Today)