Welcome back AI enthusiasts!
In todayās AI Report:
š£Legal Bomb Dropped on Startups for Deceptive AI Claims
š¬Stability AI Embraces Hollywoodās AI Vision?
šShould We Label AI Systems Like Prescription Drugs?
š Trending Tools
š°Funding Frontlines
š¼Whoās Hiring?
Read Time: 3 minutes
šRECENT NEWS
AI REGULATION
š£Legal Bomb Dropped on Startups for Deceptive AI Claims
The Federal Trade Commission (FTC) is taking action against five startups for misleading consumers by making deceptive AI claims.
Key Details:
The FTCās new enforcement initiative, āOperation AI Comply,ā protects consumers from unfair business practices related to AI-powered services.
Today, āOperation AI Complyā announced itās taking action against five startups:
DoNotPay: Claimed to provide AI-powered legal services.
Ascend Ecom: Offered ācutting edgeā AI-powered tools to help consumers earn thousands of dollars through online storefronts.
Ecommerce Empire Builders (EEB): Promised to deliver massive revenue streams from AI-powered online stores.
Rytr: Marketed an AI writing assistant that generates false consumer reviews.
FBA Machine: Guaranteed passive income through AI-enhanced online storefronts.
Why Itās Important:
Among the startups targeted is DoNotPay, which claims to be the āworldās first robot lawyerā powered by OpenAIās GPT-4 to file āone-click lawsuits.ā
The FTCās complaint alleges the startup misled consumers by promising legal services that replace traditional lawyers.
STABILITY AI
š¬Stability AI Embraces Hollywoodās AI Vision?
Image Source: Canvaās AI Image Generators/Magic Media
Stability AI, a once-high-flying startup focused on developing and distributing open-source AI models, recently added a new member to the Board of Directors (BofD) as part of the startupās restructuring effort.
Key Details:
Stability AI Founder and CEO Emad Mostaque resigned from his role and position on the BofD to pursue decentralized AI.
His decision followed a string of high-level research member departures and investor pressure from Coatue Management and Lightspeed Venture Partners.
Mostaque posted on X: āWeāre not going to beat decentralized AI with more centralized AI.ā He also noted Stability AI had a āstrange focus on revenue.ā
In the First Quarter (Q1) of 2024, Stability AI generated less than $5 million in revenue and lost more than $30 million. It also owes nearly $100 million to cloud computing providers.
Former Weta Digital CEO Prem Akkaraju is stepping in as Stability AIās Managing Director.
In his first move, Akkaraju added Canadian filmmaker James Cameron to the BofD. Cameron is known for his expansive vision and innovative special-effects films, including the Avatar Films, Terminator Series, and Titanic.
Why Itās Important:
Stability AI is shifting toward creative AI applications in filmmaking to assist directors, actors, and actresses.
This decision comes as Hollywood grapples with AIās involvement in the creative process and is concerned over proper consent and compensation for creatives.
š©ŗ PULSE CHECK
Do you believe Stability AIās restructuring efforts will succeed?
AI ETHICS
šShould We Label AI Systems Like Prescription Drugs?
AI systems are increasingly being deployed in safety-critical healthcare situations. However, these AI systems sometimes hallucinate false information, which could seriously affect patients and clinicians.
MIT Associate Professor in Electrical Engineering and Computer Science (EECS) Marzyeh Ghassemi argues that to mitigate these potential harms, AI systems should be accompanied by responsible-use labels, similar to the U.S. Food and Drug Administrationās (FDAās) required labels on prescription drugs.
Responsible-use labels ācan help to ensure patients are aware of potential side effects, warnings, precautions, or adverse reactions,ā explained Ghassemi.
AI systems bypass various approval stages and long-term regulatory monitoring processes in the drug development phase. Generative AI (GenAI) has demonstrated that itās not guaranteed to be appropriate, robust, or unbiased.
š TRENDING TOOLS
šMagicPatterns prototypes your product ideas.
šæJimengAI turns inspiration into movies instantly.
šøClarityAI upscales, enhances, and adds details to your images.
šøOpenMusic generates high-quality music from text descriptions.
š§āāļøPocus generates custom sales strategies for your target accounts in seconds.
š®Browse our always Up-To-Date AI Tools Database.
š°FUNDING FRONTLINES
QureAI raises a $65M Series D to expand AI healthcare solutions globally.
ConvergeAI closes a $12M Pre-Seed Round to give AI agents long-term memory.
NurixAI secures a $27.5M Seed Round to deploy tailored AI agents for enterprise services.
š¼WHOāS HIRING?
Rippling (New York City, NY): Software Engineering Intern, Summer 2025
WisprAI Flow (San Francisco, CA): Software Engineering Intern, Summer 2025
Salesforce (San Francisco, CA): Business Insights Analyst Intern, Summer 2025
OpenAI (San Francisco, CA): Software Engineering Intern/Co-Op, Applied Emerging Talent
NVIDIA (Santa Clara, CA): Compiler Engineer, Low-Level Virtual Machine {LLVM}, New College Grad 2024
š¤PROMPT OF THE DAY
MARKETING
š„Call-To-Action (CTA) Buttons
Create five Call-To-Action (CTA) button ideas based on [Product, Service, or Company Description] for [Target Audience] with [Conversion Goals].
Prioritize using different colors, shapes, sizes, and fonts and create a sense of urgency to make customers feel like theyāll miss out if they wait.
Product, Service, or Company Description = [Insert Here]
Target Audience = [Insert Here]
Conversion Goals = [Insert Here]šFINAL NOTE
FEEDBACK
How would you rate todayās email?
ā¤ļøTAIP Review of The Day
āI look forward to every Sunday Special. Theyāre very interesting and informative.ā
REFER & EARN
šYour Friends Learn, You Earn!
{{rp_personalized_text}}
Refer 3 friends to learn how to š·āāļøBuild Custom Versions of OpenAIās ChatGPT.
Copy and paste this link to friends: {{rp_refer_url}}
