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Friday’s top story: The EU’s risk-based AI Act is officially in force, giving tech companies 4-6 months to comply, or risk major fines.

🌤️ This Morning on AI Tool Report

1. 💼 EU’s AI law in force now!

2. 🎯 How to supercharge market research with AI

3. 🔥 Reddit's big AI move

4. 🎓 How to get educated in AI

5. 👯 How to plan a virtual event using ChatGPT

6. ⚠️ Intel cuts 15K jobs

7. 🤔 Microsoft vs. OpenAI: Rivals?

Read Time: 5 minutes

STOCK MARKETS

✂️ The Bank of England drops interest rates hinting at the upcoming cuts that are around the corner for the US markets. Meta outperformed its peers during Thursday’s session which saw many of the big AI names give back some of the gains made on Wednesday. Learn more.

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REGULATIONS

💼 EU’s AI law in force now!

Our Report: In March, the European Union (EU) announced it was developing new risk-based legislation—The AI Act—to regulate the development, use, and applications of AI in the EU and make sure AI systems that are either used or developed in the EU are safe and trustworthy, which the European Commission passed in May, and is now officially in force.

🔑 Key Points:

• The legislation follows a “risk-based” approach meaning “high-risk” AI (like critical infrastructure and biometric identification systems) will face strict regulations, and “minimal-risk” AI (like chatbots) will face fewer.

• AI systems that use biometric data (like race and sexual orientation) to forecast crime and that can be used for cognitive behavioral manipulation and social scoring are banned under the new law.

• The EU is giving tech companies 3-6 months to comply with the new rules, or they will face potential fines ranging from $8.1M (or 1% of their global annual turnover) to $38M (or 7% of their global annual turnover).

🤔 Why you should care: Although this new legislation is designed to protect the EU and its citizens, it will have a major impact on global tech companies, particularly in the US, as the majority of advanced AI systems come from US companies (like Apple, OpenAI, Google, and Meta), with Meta and Apple already delaying launches of their AI systems in the EU due to the “unpredictable nature of the European regulatory environment.”

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ACQUISITIONS

🔥 Reddit's big AI move

Our Report: In its first acquisition since going public in March, Reddit has acquired AI start-up—Memorable AI—to help its advertisers create better, tailored, and more engaging ads.

🔑 Key Points:

• Used by companies like Unilever, Mars, and ExxonMobil, Memorable AI leverages AI and ML to analyze human behavior and uses those insights to create effective ads and predict how often they will convert.

• This tech will be available to Reddit advertisers, providing them with data-driven feedback on ad creatives and analyzing past ad campaign data to give improvement suggestions that drive progress toward KPIs.

• All 15 Memorable AI employees will join the Reddit ad team, and the acquisition allows Reddit “to accelerate optimizing, generating, and selecting ad creative to deliver even better results for advertisers.”

🤔 Why you should care: This follows Reddits previous acquisitions of Spell, MeaningCloud, and Spiketrap (all AI startups that helped improve content recommendations and ad placements), and puts Reddit in a more competitive position against Google, Meta, Amazon, and TikTok (who have all expanded their AI-powered ad creation and optimization tools over the last year), and will further bolster their ad revenue (which brought in $804M in ad sales, in 2023).

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Friday’s Prompt: How to plan a virtual event using ChatGPT

Type this prompt into ChatGPT:

Results: After typing this prompt, you will learn how to plan a virtual event, with best practice technology and participant engagement ideas.

P.S. Use the Prompt Engineer GPT by AI Tool report to 10x your prompts.

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RESTRUCTURING

⚠️ Intel cuts 15K jobs

• AI chipmaker, Intel, is laying off 15% of its workforce (around 15,000 jobs) as part of a $10B saving plan to turn the business around after a $1.6B loss last quarter and to compete with rivals NVIDIA and AMD.

• Despite receiving $8.5B from the US CHIPS Act to advance its AI chip manufacturing and development projects, almost all its losses came from its chipmaking foundry business, as it continued to invest in new factories.

• Alongside the restructuring, it plans to “stop non-essential work” and “fundamentally change” the way it operates, as it’s “yet to fully benefit from powerful trends, like AI” which means “revenues have not grown as expected.”

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COMPETITION

🤔 Microsoft vs. OpenAI: Rivals?

• Microsoft and OpenAI are usually referred to as partners (after Microsoft invested $13B into OpenAI in return for the use of its models, as part of a long-term partnership), but Microsoft is now calling OpenAI a competitor.

• In its annual fiscal report, Microsoft added OpenAI to its list of competitors—alongside Anthropic, Amazon, and Meta—and listed them as a search competitor, after its new SearchGPT feature, announced last week.

• This comes after it also recently gave up its observatory seat on OpenAI’s board, fueling further speculation that this could be another ploy to get antitrust regulators off their backs about its relationship with OpenAI.

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