June 18, 2025

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Apple AI Limits, Microsoft Aurora, Oracle's $116B AI Surge

California is taking a proactive stance on AI regulation, releasing a report outlining rules focused on transparency and risk control, even as the federal government considers limiting state AI laws. The report, led by experts like Fei-Fei Li, emphasizes the need for third-party risk assessments and warns of potential irreversible damage if AI is not properly controlled, including the possibility of AI being used to obtain nuclear materials or create biological weapons. The state's AI regulations could serve as a model for other states. However, some experts question the current capabilities of AI. Researchers at Apple have identified "fundamental limitations" in leading AI models, while Salesforce AI Research engineers note a gap between AI abilities and real-world business needs. Despite these concerns, AI is making strides in various sectors. Microsoft's Aurora AI model can forecast weather 5,000 times faster than traditional systems and accurately predicted Typhoon Doksuri's path. Arizona State University (ASU) researchers are using AI to improve road safety with their eTraM system. Courts are also leveraging AI to manage caseloads and speed up the justice process. In the business world, Oracle's stock has soared, adding $116 billion to its value, due to investor excitement about the company's AI growth, drawing comparisons to Microsoft's cloud computing push and Nvidia's data center business. Payabli, after securing $28 million in funding, is exploring AI in spend management and fraud detection, working with Nvidia. Google's new 'AI Mode,' however, is raising concerns about reduced website traffic, with studies showing that Google's existing AI Overviews already reduce website traffic by 30% to 70%. At the Cannes Lions conference, experts highlighted the importance of human-centered AI and leadership, with Mia AI launching a platform to help women gain AI skills. Furthermore, AI is increasingly influencing consumer behavior, with nearly 60% of shoppers using AI for purchase decisions and almost half trusting AI more than friends for style advice.

Key Takeaways

  • California is pushing for AI regulation with a new report emphasizing transparency, risk control, and third-party assessments.
  • The California report warns AI could lead to serious dangers, including aiding in the acquisition of nuclear materials or creation of biological weapons.
  • Apple researchers have found "fundamental limitations" in leading AI models, questioning some of the hype.
  • Microsoft's Aurora AI model forecasts weather 5,000 times faster and more accurately than traditional systems.
  • Oracle's stock has surged, adding $116 billion in value, driven by investor enthusiasm for its AI growth.
  • Payabli is exploring AI in spend management and fraud detection after securing $28 million in funding, collaborating with Nvidia.
  • Google's new 'AI Mode' is causing concern as it may significantly reduce website traffic.
  • ASU researchers are using AI to improve road safety with the eTraM system, which collects road data without capturing personal images.
  • AI is helping courts manage caseloads and speed up the justice process by automating routine tasks.
  • Nearly 60% of shoppers use AI for purchase decisions, and almost half trust AI more than friends for style advice.

California releases AI policy report amid federal regulation concerns

California has released its _California Report on Frontier AI Policy_ which outlines rules for AI focusing on transparency and risk control. The report categorizes AI risks like misuse, malfunctions, and widespread issues, pushing for early action to prevent harm. Released as the federal government considers limiting state AI laws, the report highlights California's key role in shaping AI policy nationwide. The report suggests balancing innovation with safety and offers a plan for well-rounded AI policies.

California aims to regulate AI giants with new report

California is trying again to regulate AI companies, releasing a report stating that these companies don't fully understand the risks of AI. The report, led by experts like Fei-Fei Li, suggests more transparency and checks on AI models. It highlights that AI breakthroughs could greatly affect important areas like farming and medicine. The report also warns that AI could cause serious harm if not properly controlled and calls for third-party risk assessments to improve AI safety.

California AI report warns of possible irreversible damage

A new report commissioned by California Governor Gavin Newsom warns that AI could lead to serious dangers if not properly controlled. The report says AI could help people get nuclear materials or create biological weapons. It suggests that acting now to govern AI is important because the risks of not doing so could be very high. The report also suggests that California's AI regulations could serve as a model for other states.

Oracle's stock soars $116 billion amid AI optimism

Oracle Corp's stock has jumped 75% since April, adding $116 billion to its value, because investors are excited about the company's growth in AI. However, some signs suggest the stock might be rising too fast. Oracle's AI growth reminds some experts of Microsoft's cloud computing push and Nvidia's data center business. Oracle is investing heavily in cloud computing and expects much higher revenue growth due to strong demand for AI services.

Oracle's $116 billion surge depends on AI success

Oracle's stock has risen sharply due to excitement about AI, but some investors are worried it may be overvalued. The company's AI-driven revenue growth has led to a $116 billion increase in value. Experts compare Oracle's AI opportunity to Microsoft's cloud computing and Nvidia's data center business. Oracle is investing heavily in cloud computing and expects strong revenue growth from AI-related services.

Is the hype around AI starting to fade

A recent article in the _Wall Street Journal_ questions the exaggerated claims about AI's capabilities. Researchers from Apple found that leading AI models have "fundamental limitations" and struggle with complex reasoning tasks. Engineers at Salesforce AI Research also noted a gap between current AI abilities and real-world business needs. These AI systems can't solve logic puzzles that even a child could with some instruction.

Microsoft AI model forecasts weather 5,000 times faster

Microsoft's new AI model, Aurora, can predict major weather events faster and more accurately than many current systems. Aurora is trained on over 1 million hours of global weather data. It correctly predicted Typhoon Doksuri's path, outperforming forecasts from the U.S. National Hurricane Center. Aurora can produce high-resolution forecasts up to 5,000 times faster than traditional models. Microsoft has made Aurora's code and data available for research.

Google's new AI mode could hurt website traffic

Experts are worried that Google's new 'AI Mode' could greatly reduce website traffic and harm businesses that rely on search engine optimization (SEO). AI Mode creates mini articles that directly answer users' questions, potentially eliminating the need to visit websites. Google's Head of Search calls it "the future of Google Search." Studies show that Google's existing AI Overviews already reduce website traffic by 30% to 70%.

AI leadership takes center stage at Cannes conference

At the Cannes Lions conference, experts discussed the importance of human-centered AI and leadership. They emphasized that AI should be shaped by a wide range of voices, not just tech giants. Mia AI launched the Mia AI Circle, a free platform to help one million women gain AI skills. The goal is to empower people to lead with AI and use their unique human skills.

Payabli explores AI in spend management after $28M funding

Payabli, a payments company, is exploring AI and spend management after raising $28 million in funding. The company will use the money to add new products and explore AI applications. Payabli recently launched Amigo, an AI-powered support agent, and is developing AI models for fraud detection. They are working with Nvidia to use their AI technology.

ASU research uses AI to improve road safety

Arizona State University (ASU) researchers are using AI to make roads safer. They created eTraM, a system that collects road data without capturing personal images. The system records information on lighting, weather, and traffic events. ASU is also working with the International Road Federation to teach city planners how to use AI to improve traffic safety.

AI influences nearly 60% of shoppers buying decisions

Almost 60% of shoppers now use AI to help them shop, and nearly half trust AI more than friends for style advice. AI helps people make faster decisions and cuts through the overload of choices. Brands need to adapt their marketing to win over both consumers and the AI systems recommending products. Companies should be careful not to over-automate and should ensure transparency in AI recommendations.

AI can help courts improve justice access and speed

Courts are using AI to handle growing caseloads and staffing shortages. AI can quickly analyze large amounts of documents, saving time for court staff. It can also help draft legal documents and manage case timelines. By automating routine tasks, AI frees court staff to focus on more complex work and helps speed up the justice process.

Sources

AI Artificial Intelligence Regulation Policy California AI Risks Transparency Risk Control AI Models AI Safety Third-Party Risk Assessments Innovation Oracle Stock Market Revenue Growth Cloud Computing Microsoft Nvidia AI Capabilities AI Limitations Weather Forecasting Microsoft Aurora Google AI Mode Website Traffic Search Engine Optimization (SEO) AI Overviews Cannes Lions Human-Centered AI AI Leadership AI Skills Payabli Spend Management Fraud Detection Nvidia AI Road Safety Arizona State University (ASU) Traffic Safety Shopping Consumer Behavior Marketing Justice Courts Legal Documents Case Management