July 11, 2025

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OpenAI, Google Face EU AI Act, Musk's xAI Outperforms Meta

The European Union is moving forward with its AI Act, releasing a voluntary code of practice to help companies like OpenAI, Microsoft, and Google comply with the new regulations, which start on August 2, 2025, and become enforceable in August 2026. Fines for non-compliance could reach up to 7% of global revenue or 35 million euros. Meanwhile, in the business world, marketing giant WPP is investing heavily in AI to combat revenue declines, hoping its WPP Open platform can help it compete with faster-growing rivals and capture a larger share of the $1.08 trillion global ad market, despite a debt of £3.65 billion. In Hollywood, video game actors have secured AI protections in a new agreement with studios like Activision Productions and Electronic Arts Productions, ensuring consent and setting rules for AI digital replicas. However, the use of AI is also raising concerns, as seen at the AI for Good Global Summit, where a speaker was asked to censor mentions of companies like Microsoft and Amazon. Additionally, Hertz is facing customer complaints about its AI damage detection system, with some users being charged for minor issues, like one AI expert who was charged $190 for small dings. On the other hand, Idaho is cautiously planning to use AI in state government, with agencies potentially using tools like ChatGPT by August for customer service, balancing efficiency with ethical concerns. One individual even found a new job using AI after being displaced by it, highlighting AI's potential to aid in career transitions. iFLYTEK showcased its AI products, including the Spark All-in-One AI Machine and the Dual-Screen Translator 2.0, at MWC Shanghai 2025, focusing on international expansion. Finally, Chamath Palihapitiya highlighted that Elon Musk's xAI, with its Grok 4 model, is outperforming Meta in AI development despite lower spending, with Grok 4 even being ranked as more intelligent than OpenAI's GPT-4 and Google's Gemini 2.5 Pro.

Key Takeaways

  • The EU's AI Act is progressing with a voluntary code of practice to guide companies like OpenAI, Microsoft, and Google, with rules for general purpose AI starting August 2 and potential fines up to 7% of global revenue.
  • WPP is investing in AI through its WPP Open platform to reverse revenue declines and compete in the $1.08 trillion ad market, despite a debt of £3.65 billion.
  • Video game actors have secured AI protections in a new agreement with studios like Activision and Electronic Arts, including consent for digital replicas.
  • A speaker at the AI for Good Global Summit was asked to censor mentions of companies like Microsoft and Amazon, raising concerns about corporate influence.
  • Hertz's AI damage detection system is facing complaints, with customers being charged for minor damage.
  • Idaho plans to cautiously implement AI in state government, potentially using ChatGPT for customer service by August.
  • One person replaced by AI used AI to find a new job, highlighting its potential in career transitions.
  • iFLYTEK showcased its AI products, including the Spark All-in-One AI Machine and Dual-Screen Translator 2.0, at MWC Shanghai 2025, focusing on international expansion.
  • Chamath Palihapitiya noted that Elon Musk's xAI and its Grok 4 model are outperforming Meta in AI development with less spending.
  • Artificial Analysis ranked Grok 4 as more intelligent than OpenAI's GPT-4 and Google's Gemini 2.5 Pro.

EU Reveals AI Rules for Transparency and Safety

The European Union announced new rules for artificial intelligence to increase transparency and protect public safety. These rules will apply to companies like OpenAI, Microsoft, and Google that create powerful AI systems. The rules will be voluntary starting August 2, 2025, and become enforceable in August 2026. Companies that follow the rules may have less paperwork. Google and OpenAI are reviewing the rules, while Microsoft declined to comment.

EU's AI Code Aims to Help Businesses Follow New Rules

The European Union has released a voluntary code of practice to help businesses follow its new AI rules. This code supports the EU’s AI Act, which was approved last year and is being put in place in stages. The code focuses on transparency, copyright protection, and the safety of advanced AI systems. The AI Act's rules for general purpose AI will start on August 2. Companies that break the rules could be fined up to 35 million euros or 7% of their global revenue.

EU's AI Code Aims to Help Businesses Follow New Rules

The European Union has released a voluntary code of practice to help businesses follow its new AI rules. This code supports the EU’s AI Act, which was approved last year and is being put in place in stages. The code focuses on transparency, copyright protection, and the safety of advanced AI systems. The AI Act's rules for general purpose AI will start on August 2. Companies that break the rules could be fined up to 35 million euros or 7% of their global revenue.

Can WPP's AI Investments Save It From Market Decline?

WPP, a large marketing company, is facing revenue declines and is investing heavily in AI to turn things around. Their WPP Open platform uses AI to predict consumer behavior. Despite this, competitors like Publicis Groupe are growing faster. WPP's debt is \u00a33.65 billion, and they face challenges in regions like China. Investors are wondering if WPP's AI strategy can help them capture the $1.08 trillion global ad market.

Video Game Actors Secure AI Protection in New Studio Agreement

Hollywood video game actors have agreed to a new contract with studios that focuses on AI protections. The agreement includes rules about using AI digital replicas and requires consent from actors. SAG-AFTRA President Fran Drescher said this deal makes important progress on AI protections. The agreement covers studios like Activision Productions and Electronic Arts Productions. The new contract also includes safety measures for motion capture actors and pay increases for performers.

AI for Good Summit Speaker Censored Over Corporate Mentions

Abeba Birhane, a keynote speaker at the AI for Good Global Summit in Geneva, was asked to remove slides from her speech. Organizers wanted her to remove mentions of companies like Microsoft and Amazon and references to war crimes. Birhane's research focuses on AI ethics and algorithmic bias. She felt the censorship undermined the summit's goal of promoting AI for social good. She believes the summit has been overtaken by corporate agendas.

Hertz's AI Damage Detector Angers Customer with $190 Charge

Hertz is using a new AI system to detect damage on rental cars, but customers are complaining about being charged for minor issues. Adam Foley, an AI expert, was charged $190 for small dings on his rental car. He had trouble contacting a real person at Hertz to dispute the charge. Hertz says that most rentals are incident-free and that the AI system brings transparency to the damage detection process. The company stated that Foley's case was reviewed and the dents were confirmed as new.

Idaho to Use AI in State Government with Caution

Idaho is planning to use artificial intelligence in state government to improve efficiency. The Office of Information Technology is creating guidelines for state agencies to use AI responsibly. By August, agencies may start using tools like ChatGPT for tasks like customer service. The state aims to balance the benefits of AI with concerns about data access and job impacts. The plan includes a phased rollout over two years to build trust and ensure ethical use.

AI Replaced My Job So I Learned to Use AI

The author lost their job due to AI advancements but then used AI to find a new one. AI helped with tasks like writing cover letters and tailoring resumes, saving time and effort. AI also served as a strategic partner, identifying job leads and providing career advice. This led to a new role at a startup focused on the human-AI relationship. The author believes AI can maximize human potential and unlock new value, but companies should leverage the AI-human relationship to improve productivity.

iFLYTEK Shows Off AI Products at Shanghai Tech Show

iFLYTEK presented its latest AI products and solutions at MWC Shanghai 2025. The company highlighted the Spark All-in-One AI Machine for businesses, which offers a secure AI solution. They also showcased the Dual-Screen Translator 2.0, which supports real-time translation in 85 languages. iFLYTEK is focusing on expanding internationally, especially in Southeast Asia and the Middle East. They are partnering with local brands in Singapore to provide sales and customer service.

Musk's AI Beats Meta's Despite Lower Spending Says Palihapitiya

Chamath Palihapitiya praised Elon Musk's AI startup xAI for creating Grok 4, a leading AI model. He noted that Musk achieves this with less spending compared to companies like Meta. Meta's Superintelligence Labs spends $200 million a year to recruit AI talent. Artificial Analysis ranked Grok 4 as more intelligent than OpenAI's GPT-4 and Google's Gemini 2.5 Pro. xAI, founded in 2023, has seen its valuation increase and is seeking further funding.

Sources

Artificial Intelligence AI Regulations European Union AI Act Transparency Public Safety OpenAI Microsoft Google AI Ethics Algorithmic Bias AI for Good Corporate Influence AI Investment WPP Marketing Consumer Behavior AI Protection Video Game Actors SAG-AFTRA AI Digital Replicas AI Damage Detection Hertz Customer Complaints AI in Government Idaho ChatGPT AI Job Displacement AI Job Search Human-AI Collaboration iFLYTEK AI Products AI Translation xAI Elon Musk Grok 4 Meta AI Models AI Talent AI Funding