AI Boosts Stocks; Pricing Unclear, Meta Expands AI in Products and more

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1. AI Revives Software Stocks Amid Pricing and Competition Uncertainties

The surge of Artificial Intelligence (AI), notably with the launch of generative AI like ChatGPT, has revitalized software stocks, leading to a surge in the shares of companies such as Palantir and C3.ai.

These companies present themselves as platforms equipped to harness the benefits of generative AI. The AI technology is broadly accessible due to its plug-and-play nature, causing intense competition among software companies. However, the impact on revenue is unclear, especially as companies grapple with the optimal pricing strategy for AI services. One potential risk includes customers paying less if AI efficiency reduces their software requirements. As a workaround, companies consider charging based on AI feature usage.

Adobe is among the incumbents predicted to leverage the AI wave successfully, but the challenge for these companies is to demonstrate true value beyond just reselling generative AI technology.

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2. Meta Intensifies Generative AI Integration Across Products

Meta CEO Mark Zuckerberg has announced the company's plans to incorporate generative AI across all its products, during an internal meeting.

This announcement comes amidst scrutiny over the company's handling of its open-source large language model (LLM) LLaMA. Zuckerberg declared Meta's intention to create a variety of generative models that can produce text, images, videos, and rich 3D content, up to entire metaverse worlds. These AI-driven experiences are at different stages of development, as a Meta spokesperson disclosed. Zuckerberg further unveiled LLM-powered AI agents, which come with distinct personas and skill sets to assist and engage users. These agents will be introduced initially to Messenger and WhatsApp but will be expanded to other apps and the metaverse.

He also introduced an experimental internal interface, Agents Playground, powered by LLaMA for user interaction and feedback collection.

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3. Adobe Offers AI Image Generator Firefly with Legal Cover

Adobe Inc. announced that it will offer Firefly, its artificial intelligence tool for generating images, to large business clients and provide financial indemnity for copyright issues related to content made using the tool.

This decision comes in response to a surge in legal disputes regarding image data used in AI services. Adobe Firefly, tested earlier this year, uses legally safe image data to generate images from a few words of text. It will be provided to corporate customers as part of Adobe Express, a tool designed to assist non-design business users in creating images and documents. Furthermore, Adobe plans to enable businesses to customize the service to include their logos and products.

Adobe also introduced AI-based features in its digital marketing tools, which allow users to generate reports from data by asking natural language questions.

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4. AI Startup Cohere Raises $270M, Valued at $2B

AI startup Cohere has secured $270 million in series C funding, marking its emergence as a significant player in the AI sector.

This funding round, led by Inovia and featuring contributions from Nvidia, Oracle, and Salesforce Ventures, values the Toronto-based company at over $2 billion. Cohere, which provides developers and businesses with access to natural language processing powered by large language models, has been commended for the quality of its foundation models. It is part of a broader investment trend in generative AI. The company is known for its cloud-agnostic enterprise AI suite, designed to integrate seamlessly into existing cloud environments or virtual private clouds.

Cohere was founded in 2019 by Aidan Gomez, Ivan Zhang, and Nick Frosst, after they identified barriers to the adoption of AI technology outside major tech companies.

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5. Generative AI: The Next Frontier in Business Productivity

Artificial Intelligence (AI) is revolutionizing the business sector, with Generative AI (GAI) leading the change.

Companies of all sizes, including tech giants like Microsoft, Cisco, Adobe, and Zoho, are leveraging AI to boost productivity, efficiency, and innovation. Microsoft Build 2023 emphasized the concept of AI "co-pilots", integrating these AI aids directly into workflows to enhance user productivity in applications like Word, Excel, PowerPoint, and Teams. Meanwhile, Zoho and Adobe have integrated similar GAI capabilities in their product offerings. Cisco also announced GAI features for its Webex suite, improving efficiency with AI-driven meeting summaries and other collaborative tools.

These developments reflect the evolving business landscape where humans and intelligent machines are working in tandem, reshaping the future of various industries.

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