ChatGPT in trouble with the EU again

Welcome to AI Tool Report!

Monday’s top story: OpenAI has come under fire from EU data and privacy regulators as it has refused to rectify misinformation generated by ChatGPT.

🌤️ This Morning on AI Tool Report

1. 😵‍💫 ChatGPT in trouble with the EU again

2. 💄 Microsoft and Estee Lauder changing beauty with AI

3. 📱 iPhone to get ChatGPT and Gemini features?

4. 😕 Advertiser confidence in Meta AI ads drops

Read Time: 5 minutes

STOCK MARKET

LEGISLATION

😵‍💫 ChatGPT in trouble with the EU again

Our Report: OpenAI is facing another EU privacy complaint, this one has been filed by privacy rights nonprofit—NOYB—on behalf of a ‘public figure’, for failing to fix incorrect information given by ChatGPT, breaching EU GDPR and privacy laws.

🔑 Key Points:

• NOYB is filing its complaint with the Austrian Data Protection Authority (DPA) after ChatGPT produced an incorrect birth date for the complainant, and OpenAI refused to rectify the data.

• OpenAI said it was ‘technically impossible’ to correct the data, instead offering to filter or block the data on certain prompts, involving the complainant's name.

• It’s asking the DPA to investigate OpenAI’s data processing methods and how it ensures personal data is accurate, and is urging it to impose a fine to ensure future compliance.

🤨 Why you should care: This comes after OpenAI was forced to shut down last year, after Italy’s DPA believed it had violated GDPR laws after producing misinformation, a case which is still open, with a final decision pending.

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BEAUTY

💄 Microsoft and Estee Lauder changing beauty with AI

• Microsoft and Estee Lauder have launched an AI Innovation Lab so both companies can work together to create AI systems for Estee Lauder’s beauty brands.

• These systems will help Estee Lauder develop products, build better customer relationships, increase speed to market, and confirm item suitability for local areas.

• Estee Lauder has already used Microsoft’s Azure service to build an AI chatbot—used internally—that monitors beauty trends and navigates its product database.

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MOBILE DEVICES

📱 iPhone to get ChatGPT and Gemini features?

• Apple is reportedly in talks with Google and OpenAI to integrate AI-powered features into its latest operating system—iOS18—which is rumored to be launching in June.

• Google has already brought Gemini features to Samsung, so it's expected that iOS 18 will get some of the features that the Pixel 8 and Galaxy S24 series have.

• It’s also rumored that Apple is working on a lightweight language model (like Microsoft’s recent Phi-3 Mini) that can understand context but runs with less computing power.

ADVERTISING

😕 Advertiser confidence in Meta AI ads drops

• Advertisers are losing confidence in Meta’s AI-powered ad tools (particularly the Advantage Plus) claiming they’re misfiring, leading to a waste of ad budget and a decline in sales.

• Meta positioned ‘Advantage Plus shopping campaigns’ as a “set it and forget it” AI resolution to online advertising, but these glitches mean the reality hasn’t matched the hype.

• Although it refunded some advertisers, Meta is insisting the tool is functioning as intended, and their unwillingness to be accountable is causing mass uncertainty among advertisers.

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