This is "The AI Economy," a weekly LinkedIn-first newsletter about AI's influence on business, work, society and tech and written by Ken Yeung. Sign up here.
IN THIS ISSUE: Those in the arts, media, and entertainment industries are among the more vocal regarding AI, behaving as doomsayers and calling for more protection for their work. Plus, iPhone users will finally get AI on their devices when the first set of Apple Intelligence features are released next week; OpenAI may soon release its next flagship model in December; and be sure to check out this week’s roundup of AI news you may have missed.
The Prompt
The SAG-AFTRA strike in 2023 was only the start of celebrities highlighting the dangers of artificial intelligence. Last November, the trade union approved a contract that would install regulations on AI, but that hasn’t diminished the efforts of actors and creative professionals to continue warning about the technology’s risk to their livelihood.
“The unlicensed use of creative works for training generative AI is a major, unjust threat to the livelihoods of the people behind those works, and must not be permitted.”
More than 10,000 artists this week signed a statement decrying AI companies’ unlicensed use of their work poses a “major, unjust threat” to their profession. Signatories include actor Julianne Moore, Radiohead singer Thom Yorke, Abba’s Bjorn Ulvaeus, and comedian Kate McKinnon. The American Federation of Musicians, SAG-AFTRA, the European Writers’ Council, and Universal Music Grop also support the statement.
The petition’s organizer, Ed Newton-Rex, a British composer and the former vice president of audio at Stability AI, told The Guardian:
“There are three key resources that generative AI companies need to build AI models: people, compute, and data. They spend vast sums on the first two—sometimes a million dollars per engineer and up to a billion dollars per model. But they expect to take the third—training data—for free.”
Actor Joseph Gordon-Levitt has also joined the growing chorus of AI critics. The “Inception” star spoke at the WSJ Tech Live conference, saying what AI companies are doing is the equivalent of sleight of hand—it “makes you ignore the fact that these were created by humans.” He called for all licensing deals to be “renegotiated in light of this new technology.”
Billie Eilish, Kacey Musgraves, J Balvin, Ja Rule, Jon Bon Jovi, The Jonas Brothers, Katy Perry, Miranda Lambert and hundreds of other artists have previously voiced concern about AI. Nicholas Cage has also urged young actors to protect themselves from the technology. And let’s not forget about the Recording Industry Association of America (RIAA) suing two AI startups this summer over copyright infringement.
These are some of the most recent displays of opposition the entertainment industry has put on as AI continues to proliferate. However, not every actor and artist is against it: Awkwafina, Dame Judi Dench, John Cena, Keegan Michael Key, and Kristen Bell have lent their voices to Meta’s AI assistant. Last year, the musician Grimes invited fans to make songs using an AI-generated version of her voice. And soccer superstar David Beckham and actor Bruce Willis have toyed with using deepfake technology.
As new contracts are negotiated, artists are asking their unions to ensure that future deals codify protections. This week, SAG-AFTRA successfully ensured that more than 120 games from 49 companies have agreed to AI protections.
Companies are continuing to push the boundaries of AI with new models and applications, which will likely draw more criticism from the creative industry. And it’s not just with voice assistants, but from text-to-audio and text-to-video generation apps. Increased legal action may also follow until a framework is established that safeguards artists’ rights while helping tech companies access the data they need to train their models and remain competitive.
Apple Intelligence Is Coming Next Week
Generative AI is coming to the iPhone, iPad, and Mac with the public release of iOS 18.1, iPadOS 18.1 and macOS Sequoia 15.1. Introduced in June, Apple Intelligence brings a revamped Siri, Genmojis, Visual Intelligence, Image Wand, and other gen AI features. However, some features may not be available until 2025, and not every iPhone, Mac, or iPad immediately supports Apple Intelligence.
To use it, you’ll need to have:
- At least an iPhone 15 Pro and Pro Max
- iPads with an A17 Pro chip or an M1 chip and later
- Mac with an M1 or later
If you’re eager to try out Apple Intelligence on your iPhone, you can install the beta versions of iOS 18.2, even with the bugs. Keep in mind, though, that when the AI is officially released, it will include only a limited set of features. The rest of the capabilities in 18.2 will be officially added later.
Apple Intelligence’s debut will usher Apple into the generative AI space. Its entry further brings sophisticated AI models and their features to more edge devices. While an overwhelming number of mobile phones and laptops have generative AI tech installed, many consumers apparently are unimpressed by what it can do.
Related Reading:
- Apple’s first iOS 18.2 beta adds more AI features and ChatGPT integration (The Verge)
- Apple Intelligence isn’t very smart yet—and Apple’s ok with that (The Wall Street Journal)
- Apple Intelligence bug bounty invites researchers to test its privacy claims (The Verge)
OpenAI May Release Its Next Flagship Model in December—Or Not?
Sources tell The Verge that OpenAI is getting ready to release Orion, its next model, in two months. If accurate, it would arrive on the second anniversary of ChatGPT, though it’s said that Orion won’t initially be available on the popular AI chatbot. Instead, the company could make it initially available to select partners, allowing them to build their own products and features.
The reporting is also unclear as to whether Orion is considered to be GPT-5.
However, hours after the news broke, OpenAI attempted to refute The Verge’s reporting. On X, chief executive Sam Altman replied to one of the reporters that their article was “fake news out of control.” As my former colleague Carl Franzen outlines, Altman’s comment appeared vague and not exactly a “direct denial of the claims:”
He didn’t write “No” or “this is false,” much less describe which part of the detailed article is wrong: is OpenAI not working on a new frontier model called Orion? That would contradict prior reporting from outlets including The Information that it does have such an effort internally — which to my knowledge, OpenAI never directly denied. Is it not planning to release later this year? But it is clearly an attempt to push back on the reporting as it stands.
Orion would be the latest model from OpenAI, several months after the introduction of its reasoning model series, o1 (“Strawberry”). The company may be leveraging o1 to generate synthetic data to train Orion.
Updated as of Oct. 25 at 10:37 a.m. PT: OpenAI officially denied plans to release Orion this year. In a statement to TechCrunch, the company revealed it plans “to release a lot of other great technology.”
Today’s Visual Snapshot
Venture capitalists are spending a lot on artificial intelligence startups. According to Crunchbase, over the past couple of years, at least 23 private companies raised more than $1 billion. Five of them have raised over $6 billion.
Underscoring how hot the AI industry is right now, it’s reported that VCs have invested $3.9 billion in generative AI startups, spanning 206 deals, excluding OpenAI.
Quote This
“The incredible progress in AI over the past five years can be summarized in one word: Scale. Yes, there have been uplink advances, but the frontier models of today are still based on the same transformer architecture that was introduced in 2017. The main difference is the scale of the data and the compute that goes into it.
— OpenAI lead research scientist Noam Brown at the TED AI conference in San Francisco, where he spoke about the future of AI and how OpenAI’s o1 model may transform industries through strategic reasoning, advanced coding, and scientific research (VentureBeat)
This Week’s AI News
🏭 AI Trends and Industry Impacts
- ARM CEO Rene Haas sees AI transforming the world much faster than the internet (Bloomberg)
- Generative AI will help with 1 in 3 entry-level tasks by next year, employees say (CIO Dive)
- How on-device AI could shake up the phone app business (Axios)
- 3 AI challenges and trends on the mind of Microsoft Research’s president (GeekWire)
- Nobel laureate and DeepMind CEO Demis Hassabis sees “watershed moment” for AI (Axios)
- AI Agents: A comprehensive introduction for developers (The New Stack)
🤖 AI Models and Technologies
- Anthropic’s new AI model Claude 3.5 Sonnet can control your PC (TechCrunch)
- IBM debuts open-source Granite 3.0 models for enterprise AI (VentureBeat)
- Meta releases slimmed-down Llama models for low-powered devices (Silicon Angle)
- Hugging Face aims to reduce AI costs with open source offering (Reuters)
- Cohere announces Aya Expanse multilingual AI model family for researchers (Silicon Angle)
- OpenAI researchers develop a new model that speeds up media generation by 50x (VentureBeat)
- Stability claims that the new Stable Diffusion 3.5 model series generates more “diverse” images (TechCrunch)
- These AI models reason better than their open-source peers—but still can’t rival humans (ZDnet)
✏️ Generative AI and Content Creation
- Google releases its SynthID system as open source, offering its AI watermarking tech for free to developers and businesses (ArsTechnica)
- Anthropic’s Claude chatbot can now write and run JavaScript code (TechCrunch)
- Perplexity says it’s now serving 100 million search queries a week (TechCrunch)
- Runway releases AI facial expression motion capture feature Act-One (VentureBeat)
- Canva launches text-to-image generator called Dream Lab, created from its acquisition of Leonardo AI (The Verge)
💰 Funding and Investments
- Waymo lands $5.6 billion Series C round of funding (Axios)
- Perplexity reportedly looking to raise $500 million in funding that would double its valuation to about $9 billion (CNBC)
- Humanoid robot startup Agility seeks to raise $150 million (Bloomberg)
- Interface AI raises $30 million to help banks field customer requests (TechCrunch)
- TollBit raises $24 million Series A for its two-sided marketplace for publishers and AI companies (Axios)
- Carbon Robotics raises $70 million to scale up AI-powered robotic farming solutions (Silicon Angle)
☁️ Enterprise AI Solutions
- Microsoft fires back at Salesforce, saying it will launch its AI agent builder feature in Copilot Studio next month, making it available in a public preview (My Two Cents)
- Asana launches no-code tool for designing AI agents (ZDnet)
- CrewAI now lets you build fleets of enterprise AI agents (VentureBeat)
- Augment Code unveils an AI coding assistant to challenge GitHub Copilot (My Two Cents)
⚙️ Hardware, Robotics, and Autonomous Systems
- How Intel got left behind in the AI chip boom (The New York Times)
- UiPath previews Agent Builder tool that combines gen AI with robots (Silicon Angle)
- Qualcomm and Alphabet team up for automotive AI (Reuters)
- Elon Musk says “Blade Runner 2049” “sucked” after production company sues him over copyright infringement for Tesla’s Robotaxi self-driving “cybercab” launch (Variety)
🔬 Science and Breakthroughs
- The race to find new materials with AI needs more data. Meta is giving massive amounts away for free (MIT Technology Review)
- Meta AI tackles maths problems that stumped humans for over a century (New Scientist)
- GE HealthCare announces time-saving AI tool for doctors who treat cancer (CNBC)
💼 Business, Marketing, Media and Consumer Applications
- Hiring in tech is harder than ever. AI isn’t helping (Runtime News)
- Gusto’s head of technology says cutting existing teams and hiring AI engineering specialists is “the wrong way to go” (TechCrunch)
- After selling Anchor to Spotify, co-founders reunite to build AI-powered educational startup Oboe with a $4 million seed investment (TechCrunch)
- How local stations are leveraging AI to increase revenue and improve efficiencies (TV News Check)
⚖️ Legal, Regulatory, and Ethical Issues
- President Biden signs first national security memorandum focused on AI that aims to balance innovation and adoption with privacy and civil liberties protections (NextGov/FCW)
- Former OpenAI researcher says company broke copyright law (The New York Times)
- Dow Jones and the New York Post sue Perplexity, alleging “massive” copyright infringement (Variety) — Perplexity responds, saying, “They wish this technology didn’t exist” (TechCrunch)
- News Corp’s Perplexity AI lawsuit signals the need for news data licensing (TV News Check)
💥 Disruption, Misinformation, and Risks
- AI detectors falsely accuse students of cheating—with big consequences (Bloomberg Businessweek)
- LinkedIn has verified more than 55 million users—on its way to 100 million—to combat AI’s spread of scams and misinformation (CNBC)
🔎 Opinions, Analysis, and Editorials
- The enterprise verdict on AI models: Why open source will win (VentureBeat)
- Gartner: 2025 will see the rise of AI agents (VentureBeat)
- I created an AI clone of myself, and the result was unintentionally hilarious (TechRadar)
End Output
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