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FTC asked to investigate AI summarizers for antitrust violations

A group of Democrat Senators has asked the FTC and DOJ to investigate whether new generative AI features such as summarizers on search platforms violate US antitrust laws.

New features like Google’s AI Overviews and Search GPT are objectively useful in providing quick answers to users’ questions, but at what cost? The Senators, led by Senator Amy Klobuchar, say that the ability of generative AI to summarize or regurgitate existing content harms content creators and journalists.

Their letter addressed to the FTC and DOJ says, “Recently, multiple dominant online platforms have introduced new generative AI features that answer user queries by summarizing, or, in some cases, merely regurgitating online content from other sources or platforms. The introduction of these new generative AI features further threatens the ability of journalists and other content creators to earn compensation for their vital work.”

Generative AI poses new risks for content creators, especially journalists. With local news already in crisis, I urged the DOJ and FTC to investigate whether generative AI products threaten fair competition and innovation by repackaging original content without permission. pic.twitter.com/Jo1KdA45H1

— Senator Amy Klobuchar (@SenAmyKlobuchar) September 10, 2024

They argue that search platforms used to direct users to relevant websites where content creators benefited from the website traffic, but now their content is reworked or summarized by AI without any reward accruing to the person who created it.

The letter explained that “When a generative AI feature answers a query directly, it often forces the content creator—whose content has been relegated to a lower position on the user interface—to compete with content generated from their own work.”

Platforms like Google will respect a robots.txt instruction not to index a content creator’s website but that results in the site not showing up at all in any search queries.

Journalism under threat

The Senators claim “Dominant online platforms in areas like search, social media, e-commerce, operating systems, and app stores already abuse their gatekeeper power over the digital marketplace in ways that harm small businesses and content creators and eliminate choices for consumers.”

They say that AI could make this worse with a “potentially devastating impact” on news organizations and other content creators.

In January, Senator Klobuchar asked Condé Nast CEO Roger Lynch whether his company had any choice over letting AI models scrape their content or not. Lynch said that the “opt-out” feature was introduced after existing models were trained and that it reinforces their dominance.

Lynch said, “The only thing that will do is to prevent a new competitor from training new models to compete with them, so the opt-out of the training is too late, frankly.” Condé Nast has since signed a deal with OpenAI to license its data to train its models.

Generative AI is extremely useful, but it is disrupting creative industries even as it creates new opportunities. AI is doing to online news what the internet did to print media.

A recent study quoted by the Senators says that the US has lost approximately 2,900 newspapers and that a third of those that existed in 2005 will have disappeared by the end of 2024.

AI is undoubtedly making it easier and faster to get answers to our questions but from a fast-diminishing pool of sources.

If the FTC and DOJ agree with the Senators that these generative AI features are a “form of exclusionary conduct or an unfair method of competition in violation of the antitrust laws” then Google, OpenAI, and others like them will need to rethink how they answer our queries.

The post FTC asked to investigate AI summarizers for antitrust violations appeared first on DailyAI.

FRVR AI and GenreX join forces to bring AI music composition to game developers

FRVR AI, a leader in AI-powered game development tools, has announced a groundbreaking partnership with GenreX, a cutting-edge music generation service.

The partnership will directly integrate GenreX’s AI music technology into FRVR AI’s game development platform.

It allows creators to seamlessly incorporate high-quality, adaptive music into their games without musical production expertise.

Simply input a prompt to generate and integrate soundtracks and effects directly into your project.

Chris Benjaminsen, Founder of FRVR AI, stated, “We are excited to partner with Genrex and bring this innovative technology to the gaming industry. Our goal is to empower game creators with the tools they need to create exceptional gaming experiences, and GenreX’s AI-generated music is a game-changer in this regard.”

You can describe audio using natural language within the FRVR editor interface. Source: FRVR.

Music can make or break a game’s atmosphere, but getting it right isn’t always easy or cheap. FRVR’s new feature will relieve some of that pressure, enabling designers to create more fun, immersive games.

The integration of GenreX’s technology into FRVR AI’s platform will allow developers to:

Enhance game atmosphere and immersion with adaptive, high-quality music
Reduce production time and costs associated with traditional music composition
Focus on core game design while AI handles the musical elements

Yihao Chen, Co-Founder at GenreX, added, “We are thrilled to collaborate with FRVR, a company that shares our passion for innovation and elevating the game developer experience. Our generative AI music technology is perfectly suited for the dynamic nature of games, and we are excited to see how it will enhance FRVR’s already impressive game development offerings.”

Audio clips can be edited within FRVR. Source: FRVR.

More About FRVR

FRVR, co-founded in 2014 by industry veterans Chris Benjaminsen and Brian Meidell, has been on a mission to revolutionize how people access and enjoy games.

The company’s AI-powered platform allows anyone to create games simply by interacting with AI using natural language.

In a recent interview with DailyAI, Benjaminsen shared his vision for democratizing game creation: “Rather than having very few people decide what games people should be allowed to play, we want to allow anyone to create whatever they want and then let the users figure out what is fun.”

FRVR’s impact has been momentous, with games created on their platform accessed by 1.5 billion players worldwide.

The company’s cloud-based editor enables users to iterate on games by playing them and providing further instructions to refine gameplay. It’s intuitive to use, not to mention super-fun. We got to try it ourselves earlier in the year.

The platform also vastly simplifies the process of publishing and sharing across more than 30 channels, including web, mobile app stores, and social media platforms.

Those interested in experiencing FRVR AI’s games design platform, including the new music generation features, can join the public beta here.

The post FRVR AI and GenreX join forces to bring AI music composition to game developers appeared first on DailyAI.

Goldman Sachs ChatGPT mistake causes AI market panic

A flawed report by Goldman Sachs analyst Peter Oppenheimer may have been behind the significant negative sentiment for AI shares over the last few days.

There have been rumors of a potential AI bubble as tech prices continue to rise and Oppenheimer’s reports indicated that the tide was about to turn. Oppenheimer’s report relied on a graph that seemed to indicate that the number of users of OpenAI’s ChatGPT was declining.

Here’s the graph that made Oppenheimer believe that ChatGPT was losing users.

Graph erroneously showing decline in ChatGPT users. Source: Similarweb, Data compiled by Goldman Sachs Global Investment Research

In his analysis of the graph, Oppenheimer said, “Furthermore, the original ‘excitement’ about chat-GPT is fading in terms of monthly users (Exhibit 11). This does not mean, of course, that the growth rates in the industry will not be strong, but it does suggest that the next wave of beneficiaries may come from the new products and services that can be created on the back of these foundation models.”

Investors wondering if it was time to take profits or delay investing in OpenAI and related stocks were spooked when they read the report featured in the Financial Times. NVIDIA, which is heavily dependent on the future of AI, saw its shares fall 4% on Friday, hitting their lowest point in weeks.

The problem though is that the graph Oppenheimer used in his report didn’t capture the reality of what was happening. The decline in visitors to chat.openai.com was not because users were leaving ChatGPT. It was because OpenAI was migrating the service to its new URL at chatgpt.com.

Similarweb, which tracks website traffic, noted that even though there was a slight dip in ChatGPT traffic in July, the trend in ChatGPT users continues to grow.

For the first time since December 2023, ChatGPT showed a drop in month-over-month traffic during July 2024. However, as a testament to the significant progress of the OpenAI tool, July’s traffic still increased by 74% year-over-year.https://t.co/dL9iz4jLT6 pic.twitter.com/ODcXb1BF6w

— Similarweb (@Similarweb) August 11, 2024

Not realizing that OpenAI was using a new domain for ChatGPT, Oppenheimer assumed that the good times could be over and his report’s effect on share prices was evident.

It’s an example of how volatile the AI investor market is and how prone it is to announcements, rumors, and disinformation, albeit unintentional in this case.

OpenAI is eyeing new investors with a $100B valuation in its sights and expects revenue of between $3.5 to $4.5 billion this year. If it releases Strawberry in the fall, it could see a continuation of positive AI sentiment which could be good news for tech stocks like NVIDIA.

California’s proposed SB 1047 AI safety bill is on Governor Newsom’s desk waiting for him to either sign it into law or veto it. Employees at OpenAI, Anthropic, Google, Meta, and others came out in support of the bill in an open letter published yesterday.

Newsom’s decision may have an even bigger effect on tech stock prices than a misread ChatGPT user graph.

The post Goldman Sachs ChatGPT mistake causes AI market panic appeared first on DailyAI.