Catch up on select AI news and developments from the past week or so. Stay in the know.

1. Apple has launched a series of open-source large language models called OpenELM, designed to operate directly on devices, leveraging Apple's silicon. These models are hosted on the Hugging Face Hub, promoting open research and collaboration. OpenELM uses a layer-wise scaling strategy to enhance efficiency and accuracy, requiring fewer resources compared with traditional models.

Importance for marketers: For marketers, Apple's OpenELM presents a strategic opportunity to leverage advanced on-device AI for personalized marketing solutions and customer engagement without compromising privacy. This can lead to more effective and secure applications directly on consumer devices, potentially transforming customer interaction strategies.

2. Microsoft and Amazon are under scrutiny by the UK's Competition and Markets Authority (CMA) over recent AI acquisitions and investments. The CMA is investigating Microsoft's partnerships and key personnel hires, specifically with France's Mistral AI and Inflection AI, as well as Amazon's $4 billion investment in Anthropic. These actions have raised concerns about potential anticompetitive behavior in the rapidly growing AI sector. The inquiry will determine whether these deals fall within UK merger rules and their impact on competition.

Importance for marketers: Marketers should pay attention to these investigations as they could reshape the competitive landscape of the AI industry, affecting available tools and technologies. A crackdown on big tech could open opportunities for smaller AI companies and influence how AI solutions are integrated into marketing strategies.

3. Adobe has introduced a new feature in Photoshop called "Generate Image," allowing users to create images from text prompts directly within the software. This feature, powered by Adobe's Firefly Image 3 model, expands the capabilities of Photoshop to include generating and modifying images using simple text directions. This marks a significant advancement in Adobe's integration of AI into its flagship software, enabling creative professionals to enhance their workflows with AI-driven tools.

Importance for marketers: Marketers can utilize this tool for rapid content creation and customization, streamlining the design process for campaigns and social media content. The ability to generate high-quality images from text reduces dependency on extensive graphic design resources, potentially lowering costs and increasing efficiency.

4. Microsoft has launched Phi-3 Mini, a compact AI model with 3.8 billion parameters, available on Azure and Hugging Face. Despite its smaller size, it performs comparably to larger models for custom applications using companies' internal data sets. This release is part of Microsoft's strategy to develop lightweight, powerful AI models suitable for a wide range of applications, from consumer electronics to enterprise solutions.

Importance for marketers: The availability of smaller, efficient AI models like Phi-3 Mini allows marketers to deploy advanced AI capabilities for their specific needs without heavy computational costs.

5. Cisco Systems has signed the "Rome Call for AI Ethics," a pledge endorsed by Microsoft, IBM, and others under Vatican sponsorship to ensure AI is developed and used ethically. This agreement emphasizes AI transparency, inclusion, responsibility, impartiality, and security to safeguard human dignity and environmental protections. The Rome Call aligns with global efforts to address the ethical challenges posed by AI, such as privacy concerns, bias, and the potential for misuse.

Importance for marketers: Marketers must be mindful of these ethical considerations as AI becomes more integral to marketing strategies. Adhering to these principles can enhance brand trust and customer loyalty. Furthermore, as public awareness of AI ethics grows, companies committed to ethical practices are likely to be favored by consumers, influencing brand choices and marketing effectiveness.

6. Perplexity, an AI search engine startup, is raising $250 million, pushing its valuation to between $2.5 billion and $3 billion. This funding round follows significant valuation increases due to heightened market interest in AI technologies. Perplexity stands out by integrating multiple large language models to enhance search capabilities, positioning itself as a leading tool in AI-driven search solutions.

Importance for marketers: For marketers, Perplexity's advancements in AI search technology suggest a shift toward more sophisticated, AI-powered search tools that could redefine consumer search behavior and SEO strategies.

7. A24's marketing for its new film "Civil War" has generated controversy by using AI-generated images in its ads (i.e., posters) of post-apocalyptic US cities—scenes not actually in the film. This has sparked a debate on the ethical use of AI in marketing, especially regarding the accuracy and truthfulness of promotional materials. The campaign has been criticized for potentially misleading audiences about the film's content.

Importance for marketers: This controversy serves as a cautionary tale for marketers about the potential backlash from using AI-generated content in misleading ways. It's crucial for marketing professionals to ensure that AI tools are used to enhance genuine and accurate representations to maintain public trust and compliance with advertising standards.

8. Apple has acquired Datakalab, a Paris-based AI startup specializing in on-device AI processing. This acquisition is part of Apple's strategic push to enhance its AI capabilities on devices like iPhones and iPads, focusing on privacy-centric AI applications that process data locally rather than in the Cloud.

Importance for marketers: Apple's acquisition indicates a growing trend toward on-device AI, which could lead to new marketing technologies that operate faster and more privately. Marketers might soon harness these advancements for more personalized and secure consumer interactions, potentially offering a better customer experience while adhering to strict data privacy.

9. Microsoft Research Asia has unveiled VASA-1, a groundbreaking AI that generates realistic talking faces from photos and speech audio in real-time. This technology promises significant advancements in digital communications and media creation, allowing for the creation of lifelike digital personas and enhancing virtual interactions.

Importance for marketers: VASA-1's capabilities open new avenues for marketers in terms of personalized communication and advertising. Interactive AI avatars can be used in customer service, virtual assistance, and campaign promotions, providing a more engaging user experience and enhancing brand connectivity with audiences.

10. Stanford University's AI Index report has highlighted that AI now exceeds human performance in various benchmarks. The report discusses AI's impact across multiple sectors and the need for new challenges to better understand AI capabilities. It also addresses AI's role in job displacement and public perception issues.

Importance for marketers: The rapid advancement in AI capabilities as detailed in the report suggests that marketers need to prepare for a future where AI plays a central role in strategy development, consumer insights, and personalized marketing. Understanding AI's capabilities and limitations will be crucial for developing effective marketing strategies that leverage AI responsibly and innovatively.

11. Google has announced a major reorganization by merging its Android, Chrome, and hardware divisions into a new team called "Platforms and Devices." This move aims to enhance integration and innovation across Google's software and hardware projects, particularly in embedding AI more deeply into its products. Rick Osterloh will lead the new division, focusing on accelerating AI innovations within the Android ecosystem, emphasizing collaboration with major partners like Qualcomm.

Importance for marketers: For marketers, this consolidation means Google will likely introduce more unified and advanced AI features across its platforms, enhancing the capabilities of devices and applications. This could lead to new marketing tools and platforms that utilize AI to offer more personalized user experiences and improved analytics. Marketers should anticipate changes in mobile marketing, user engagement, and cross-device functionality.

12. Intel has developed Hala Point, the world's largest neuromorphic system, designed to mimic brain-like processing to tackle complex AI tasks efficiently. Housed at Sandia National Laboratories, Hala Point incorporates Intel's Loihi 2 processors and aims to revolutionize AI applications by dramatically reducing the energy consumption and improving the performance of AI systems. This development reflects a significant leap in creating sustainable and scalable AI technologies.

Importance for marketers: Hala Point's introduction suggests a future where AI can be deployed more sustainably, which is crucial as environmental concerns become more prominent. This could be particularly appealing to eco-conscious consumers.

13. Anthropic CEO Dario Amodei expressed that AI models might soon achieve the capability to "replicate and survive in the wild," indicating a level of autonomy and resilience that could result in AI's performing complex tasks independently. This discussion highlights ongoing debates about the rapid advancement of AI and the ethical implications of its development, including the potential for misuse by state-level actors and the importance of robust governance.

Importance for marketers: The prospect of more autonomous AI models suggests that marketing strategies could become highly data-driven and personalized, operating in real-time to adapt to consumer behavior. However, it also raises ethical considerations that marketers must navigate to maintain trust.

14. The US AI Safety Institute has appointed Paul Christiano, known for his cautionary "doomer" views on AI risks, as its head of AI safety. This decision reflects growing concerns about the potential dangers of advanced AI, including its ability to influence or harm humans. Christiano's role will focus on evaluating AI risks and implementing safety measures to mitigate potential threats.

Importance for marketers: The appointment signals increased governmental focus on AI safety, which could lead to stricter regulations on AI applications, including those used in marketing. Marketers should prepare for potential new compliance requirements and consider how these might impact the use of AI in their strategies. Staying ahead of these changes can help companies navigate the regulatory landscape effectively.

15. Microsoft's $13 billion investment in OpenAI is set to avoid a formal EU probe, assuaging fears of antitrust challenges. The European Commission concluded that the investment does not constitute a takeover and therefore does not merit deeper investigation. This decision allows Microsoft to continue its collaboration with OpenAI, focusing on advancing AI technologies without facing regulatory setbacks.

Importance for marketers: This development is significant for marketers as it likely solidifies Microsoft's position in the AI landscape, potentially leading to more advanced AI tools and platforms available for marketing purposes.

You can find last week's AI Update here.

Editor's note: GPT-4 was used to help compile this week's AI Update.