4A's Noteworthy News - 13th Edition
THE BIG STORY:
The AI sector is beginning to show signs of a maturing market, as recent developments suggest a wave of consolidation is underway. Once the darling of venture capital, some AI startups are struggling to keep up with the hefty demands of research, talent, and infrastructure. A recent WSJ article highlights how a few of these startups are seeking bailouts from big tech companies, reflecting the growing difficulty of achieving sustainable growth without deep-pocketed backers. Meanwhile, those same deep-pocketed backers have told investors in recent earnings calls that they are playing the long game when it comes to realizing return on investment in AI.
At the same time, platforms like Canva are looking to supercharge their AI capabilities by acquiring Leonardo.AI. Such collaborations highlight how established companies are opting for strategic acquisitions or partnerships to enhance their offerings rather than developing these tools from scratch. This could be a sign that the race for AI dominance is entering a new phase, where a mix of home grown tools and partnerships / acquisitions becomes the recipe for success.
As these maneuvers unfold, it’s becoming clear that what some have called an AI bubble might not burst but rather leak a little air and then reshape. The market is no longer just about innovation—it's about who can integrate and scale these innovations effectively.
For agencies, market maturity may eventually bring an ideal combination of choice, innovation and scale. In the near term, carefully assessing the AI technology stack required to meet your objectives - and thoroughly vetting any potential partners - remains a best practice for successful AI implementation.
OTHER INTERESTING AI NEWS FOR AGENCIES:
LLMs are extremely powerful but also extremely resource hungry. The Drum wonders if Small Language Models (SLMs) might be a better solution for certain use cases while Campaign highlights the challenges agencies face in embracing AI while considering environmental impacts, including some comments from me.
GitHub Models allows developers to test and compare large language models and integrate them directly within their workflow
Google’s DeepMind maps different ways AI is used for nefarious purposes
A Harris Poll survey reveals that 84% of tech execs support copyright law updates to align with the AI era.
Another busy week in OpenAI news:
ChatGPT’s mobile app just had its biggest month yet
OpenAI dials back expectations for DevDay, but then Sam posts a mysterious photo of Strawberries, which - combined with a new model hitting the LMSYS Chatbot Arena - has caused the internet to speculate that the release of their next model, codenamed Strawberry, is imminent.
A trio of OpenAI leaders are departing or taking a leave of absence.
RECENT AI CAMPAIGNS AND AGENCY USE CASES:
Reckitt is using AI to cut drudgery and improve results
Diageo’s Johnnie Walker unveils generative AI personalized bottle experience
