179 | 👮🚨 SEC defines and enforces “AI Washing”

In today’s Brainyacts:

1. SEC and AI Washing Videos

2. Sensory AI is exploding

3. OpenAI CEO interview and other AI model news

4. AI and the 4-day work week and other AI-related content

👋 to new subscribers!

To read previous editions, click here.

Lead Memo

👮🚨 SEC defines and enforces “AI Washing”

In charging two firms for making false claims about how they are using AI in their business, the SEC released the following video.

It explains that AI washing, an informal term that describes businesses’ making unfounded AI claims to the public, has emerged as a recent target of the agency’s enforcement efforts. The term echoes the greenwashing phenomena, which refers to companies misleading the public that their products or services are environmentally sustainable.

To drive the point home, SEC Chairman Gary Gensler released his own video on AI Washing.

I created a helpful checklist recently. While it is not directly intended to determine if a company is using AI Washing, it does have good questions and topics you should explore with any AI provider. Using these might help you determine if they have the capabilities they claim to.

Access the Checklist HERE.

Spotlight

👃👅 👂 Sensory AI Exploding

Following courtesy of Exploding Topics (this is not an ad).

AI perfume is any fragrance created using artificial intelligence technology.

Specifically, AI algorithms analyze vast amounts of data on fragrance compositions, customer preferences, and market trends to generate unique scent combinations.

For example, the startup EveryHuman provides a service they call “algorithmic perfumery.”

Their users answer a few questions, and EveryHuman’s AI analyzes the answers and creates a personalized perfume based on that data 

Google’s Cloud team has revealed that they’re working on “digitizing smell” using AI.

According to Google, approximately 40 billion molecules have an odor. However, only 100 million of those molecules have been identified to date. 

Their AI model is aiming to analyze massive amounts of data to help identify currently unknown scents.

What's Next

AI perfumes are part of the Sensory AI meta trend.

Search volume for “sensory AI” has grown by 525% over the past 24 months.

Sensory AI refers to AI systems that can learn through several sensory inputs: smell, hearing, vision, etc.

For example, Meta has unveiled the ImageBind AI model.

This model can learn from six types of sensory data.

While it’s still in its research phase, Meta believes that this system will be able generate multisensory content in the future.

AI Model Notables

► 2-hour interview with OpenAI CEO, Sam Altman

• They discuss the board saga, Elon lawsuit, Ilya, Sora, GPT-5, $7 trillion in compute, open source, and AGI. This is a truly fascinating conversation.
  
  Timestamps: 
  0:00 - Introduction
  1:05 - OpenAI board saga
  18:31 - Ilya Sutskever
  24:40 - Elon Musk lawsuit
  34:32 - Sora
  44:23 - GPT-4
  55:32 - Memory & privacy
  1:02:36 - Q*
  1:06:12 - GPT-5
  1:09:27 - $7 trillion of compute
  1:17:35 - Google and Gemini
  1:28:40 - Leap to GPT-5
  1:32:24 - AGI
  1:50:57 - Aliens

► Google (research paper) researchers just developed VLOGGER, a new AI model that can generate photorealistic talking avatar videos with full upper body motion from just a still image and audio clip.

► Microsoft to hold a special Windows and Surface AI event in May.

► Apple is in talks to let Google Gemini power iPhone AI features.

► Suno wants everyone to be able to produce their own pro-level songs — but what does that mean for artists?

► PwC in alliance with ContractPodAi to launch legal GenAI platform Leah for contracts.

News You Can Use:

➭ KPMG sees an opportunity to grow its legal business by outspending major law firms on artificial intelligence tools

➭ YouTube introduces a disclosure policy, requiring creators to divulge when realistic content has been generated using AI – a move believed to be aimed at combatting deepfakes and misinformation

➭ Vermont senator Bernie Sanders introduces four-day workweek bill citing advancements in AI

➭ US court reporters hire lobbying firm to take on AI in the courts

➭ AI is keeping GitHub chief legal officer Shelley McKinley busy

➭ India drops plan to require approval for AI model launches

➭ Reddit receives FTC inquiry on AI-related deals ahead of IPO

➭ China calls for advancing AI to protect children's rights

➭ China's cyberspace regulator launches campaign to oversee AI-generated content

➭ Mercedes begins piloting Apptronik humanoid robots to work alongside humans on factory floors

➭ US holds conference on military AI use with dozens of allies to determine 'responsible' use

Who is the author, Josh Kubicki?

Some of you know me. Others do not. Here is a short intro. I am a lawyer, entrepreneur, and teacher. I have transformed legal practices and built multi-million dollar businesses. Not a theorist, I am an applied researcher and former Chief Strategy Officer, recognized by Fast Company and Bloomberg Law for my unique work. Through this newsletter, I offer you pragmatic insights into leveraging AI to inform and improve your daily life in legal services.