The week in AI

Hi, it’s Lynn in New York. This was the week AI went to court. ChatGPT creator OpenAI was hit with its first defamation lawsuit over its cha [View in browser]( [Bloomberg]( Hi, it’s Lynn in New York. This was the week AI went to court. The legal implications of AI ChatGPT creator OpenAI was hit with its first [defamation lawsuit](bbg://news/stories/RVW4ICDWRGG0) over its chatbot's hallucinations. (A Georgia radio host says it made up a legal complaint accusing him of embezzling money.) A man [accused of robbery](bbg://news/stories/RVWKHJDWRGG0), meanwhile, was given the authority to inspect the AI-powered, facial recognition technology that New Jersey investigators used to nab him. And a New York lawyer [faced punishment]( for filing a brief riddled with phony legal precedents created by ChatGPT. For a deeper look at the flawed output of generative AI, check out our [visually stunning and deeply reported Big Take]( on how Stable Diffusion's text-to-image model distorts reality and takes racial and gender disparities to extremes. It's no wonder the European Commission wants AI companies warning their users that the content they generate [can lead to disinformation](. The Dutch privacy regulator is [calling on OpenAI]( to hand over more information on how its models are trained on personal data. And the US Consumer Financial Protection Bureau warned banks that their growing use of AI-powered chatbots [risks alienating customers](bbg://news/stories/RVUE00DWX2PS) by handing out incorrect information and reducing human contact. We broke the news on French President[Emmanuel Macron](bbg://people/profile/16219480)'s meeting with artificial intelligence experts from Meta Platforms Inc. and Alphabet Inc.’s Google, among others, to discuss France’s role in[AI regulation and research](. We're told he's planning to present a generative AI strategy next week at a technology conference in Paris. Not to be outdone, UK Prime Minister [Rishi Sunak](bbg://people/profile/21204172) said he wants [his own government]( to play a leading role in the international regulation of AI. Meanwhile, the top AI adviser to US President Joe Biden [left the administration](bbg://news/stories/RVZVPZT0G1KW) on Thursday -- just as the White House is weighing how to grow and police the technology. In a Bloomberg TV interview, [Todd McKinnon](bbg://people/profile/17225256), the chief executive officer of software company Okta Inc., said it's “[too soon](” for AI regulation anyway, warning that restricting the technology without fully understanding it is “dangerous” and could allow other countries to win the race. The head of Scale AI similarly said the US [risks losing]( its edge to China. Meanwhile, OpenAI Inc. Chief Executive Officer Sam Altman continued his world tour with a stop in New Delhi where he said governments should actually be funding AI efforts and [integrating the technology]( with their services. During another stop in Abu Dhabi, he said he isn't interested in [taking his startup public]( because he wants to maintain full control over the technology. Maybe he's missing out: The AI frenzy has [catapulted](bbg://news/stories/RVW1EODWLU6A) the warehouse robotics firm Symbotic Inc. to become the top performing company that went public through a SPAC merger in the past five years. Adobe Inc. [enjoyed its own stock bump]( after saying it'll sell subscriptions for new AI services — including legal assurance against copyright infringement claims. Google said its cloud-computing unit will [begin offering](consulting services to help clients use generative AI. We broke the news on Microsoft Corp. [opening up access]( to OpenAI models to users of its government cloud-computing service, which include several US agencies. And TikTok-owner ByteDance Ltd. is [testing an AI-powered chatbot]( among employees. We had the exclusives on AI startup Cohere [raising]($270 million from investors including Oracle Corp. and Nvidia Corp. and on startup Instabase Inc. raising a [new round of funding]( that doubles its valuation to $2 billion, buoyed by generative AI tools. Read our scoop on LTX launching a [chatbot called BondGPT](. Not everyone was buying into the hype. On the first day of the Bloomberg Invest conference this week, money managers suggested that everyone needs to calm down. The way Marty Chavez -- vice chairman at Sixth Street, who’s also on Alphabet Inc.’s board and previously built technology as one of the top executives at Goldman Sachs Group Inc. -- put it: “[It’s just more software.](" —[Lynn Doan](mailto:ldoan6@bloomberg.net) One to watch [Watch the latest episode of AI IRL](, which explores love, loneliness and loss.​​​​ The week ahead Sam Altman will be among the speakers at an [AI conference]( in Beijing this weekend. Macron is expected to unveil a generative AI strategy at [VivaTech in Paris](, and AI is on the agenda for [London Tech Week](.  More from Bloomberg Get Bloomberg Tech newsletters in your inbox: - [Cyber Bulletin]( for coverage of the shadow world of hackers and cyber-espionage - [Game On]( for reporting on the video game business - [Power On]( for Apple scoops, consumer tech news and more - [Screentime]( for a front-row seat to the collision of Hollywood and Silicon Valley - [Soundbite]( for reporting on podcasting, the music industry and audio trends - [Hyperdrive]( for expert insight into the future of cars Follow Us You received this message because you are subscribed to Bloomberg's Tech Daily newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox. [Unsubscribe]( [Bloomberg.com]( [Contact Us]( Bloomberg L.P. 731 Lexington Avenue, New York, NY 10022 [Ads Powered By Liveintent]( [Ad Choices](