To help you stay on top of the latest news, our AI practice group has compiled a roundup of the developments we are following.
- The Associated Press reflects on 2024 in the world of AI, reporting that the year was marked by innovations in applying AI technologies to different situations and performing different tasks. While 2023 focused on the wonder and potential of AI, AI development in the year 2024 shifted toward practical implementation and product development, with companies working to integrate AI capabilities into everyday services like internet searches and photo editing tools. The year also brought increased attention to the financial implications of AI development, with tech companies facing questions about the substantial costs (of both capital and energy) of running AI systems. Notable developments included advances in medical applications, such as pharmaceutical research. 2024 also saw the rise of AI “agents” that perform computer tasks on a human user’s behalf. However, concern has been brought on AI’s impact on jobs held by people, especially in creative industries, and these concerns are expected to remain in coming months and years as the technology continues to develop.
- OpenAI has revealed further details regarding its plan to restructure into a for-profit company, according to The New York Times. The organization announced it will become a public benefit corporation (PBC), a structure that balances shareholder interests with public good and which is already used by competitors such as Anthropic and Elon Musk’s xAI. This transformation comes in the wake of internal turmoil from late 2023, when the board’s attempted removal of CEO Sam Altman raised concerns among major investors, including Microsoft. Under the new structure, the original nonprofit will receive shares in the PBC, though the exact value is still being negotiated by independent financial advisers. The move represents a significant shift from OpenAI’s nonprofit origins in 2015, when it was founded by Altman, Musk and others with the goal of developing AI for humanity’s benefit. The company, currently valued at $157 billion, has evolved from its initial nonprofit status to attract over $13 billion in funding, primarily from Microsoft, though a potential for-profit structure would allow the company to pursue even more funding.
- Meta has introduced AI-generated accounts onto its Facebook and Instagram social media platforms, according to the Financial Times. The company’s vice president of product for generative AI, Connor Hayes, revealed that such AI characters will have profiles, bios and the ability to generate and share content, similar to regular user accounts. This initiative is part of Meta’s broader strategy to make its platforms more engaging over the next two years, with hundreds of thousands of AI characters already created through a tool launched in the U.S. in July 2024. The move follows similar AI innovations by competitors like Snapchat and TikTok, who have introduced their own AI-powered features for creators and brands. However, experts have raised concerns about potential risks, including the spread of misinformation through AI-generated accounts and the possibility of low-quality content overwhelming the platforms, leading Meta to implement rules requiring clear labeling of AI-generated content. Indeed, the accounts were met with backlash on Facebook and Instagram, according to The Verge, especially as a bug prevented users from blocking such AI-generated accounts. The accounts have been temporarily removed to fix the issue, according to a Meta spokesman, though they also noted that the Financial Times’ reporting “was about our vision for AI characters existing on our platforms over time, not announcing any new product.”
- The governments of Japan and the U.S. have announced a partnership to research cyberattacks that use AI technologies, according to Nikkei Asia. Japan’s National Institute of Information and Communications Technology plans to establish a research facility in Washington, D.C. and collaborate with Mitre, a U.S. nonprofit organization that manages several federally funded research institutes, starting as early as April 2025. The partnership aims to combine American technological expertise with Japan’s data on cyber incidents outside English-speaking nations, addressing a crucial gap in U.S. cyberdefense research. This collaboration comes amid growing concerns about AI-enhanced cyber threats, with reports showing a 75% year-over-year increase in global cyberattacks on companies during Q3 2024. The initiative is particularly significant as the U.S. views AI-powered cyberattacks as a potential national security risk and seeks to strengthen its defenses against threats from China, while Japan aims to develop guidelines for AI cyberattack countermeasures.
- The incoming Trump administration’s AI push is expected to increase investment into new power sources for AI datacenters, according to The Wall Street Journal. Despite Trump’s previous criticism of clean energy projects, his emphasis on AI and cryptocurrency development could boost renewable energy projects, as the massive power demands of AI and crypto datacenters require electricity from all available sources, including renewables such as solar and wind. Industry executives note that current power generation cannot meet the demands of modern server farms that power online AI systems, with some individual facilities requiring as much energy as mid-sized cities. This has already led to significant investments, including a $20 billion partnership between Google, investment company TPG, and Intersect Power for renewable power projects, and a $600 million investment in Crusoe, a clean-energy datacenter startup. The situation has also prompted OpenAI to release an infrastructure blueprint calling for streamlined permitting of solar, wind and nuclear projects. Partly driven by AI demand, forecasts predict a 16% increase in U.S. electricity demand by 2029.
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