Adopting AI ain’t so easy

In The Prompt this week, we look at how firms are trying to use genAI in their operations, and why Perplexity is getting sued. [Read from your browser]( The Prompt 🤖 Welcome to The Prompt! Delivered every fortnight, this free newsletter breaks down the biggest stories and trends in AI. Get all our content, including The Prompt, by [registering for a Tech in Asia account](. Alternatively, [sign up here]( if you just want to receive this newsletter. IN FOCUS In today's newsletter, we look at: - [The issues in adopting AI]( - The legacy media firms going after Perplexity --------------------------------------------------------------- Hello {NAME} I was slow to jump on the generative AI bandwagon, but the tech is slowly creeping into my life. Most nights, while walking my dog, I chat with a bot in French or Mandarin - two languages I’m trying to learn. This is no substitute for human interaction, but I figure that some practice is better than none at all. When I traveled to Helsinki, Finland’s capital, earlier this month, I also asked ChatGPT to come up with an itinerary for me. Similarly, many companies are now trying to use AI in their day-to-day operations. This week’s featured story discusses learning points from the experiences of three different firms that have tried to tap into genAI. While this shift comes with tangible benefits, like raising the tech’s potential for profitability, some challenges remain. Apart from the adoption curve that can be tricky to navigate, employees have to be convinced to use the suggestions provided by AI models. Meanwhile, in this week’s Hot Take, I delve deeper into the lawsuit filed by Dow Jones (the publisher of The Wall Street Journal) and the New York Post against Google challenger Perplexity. -- Simon  --------------------------------------------------------------- THE BIG STORY [AI interest is there, but the tech isn’t easy to adopt, firms say]( Some complicated functions still require experts to guide firms in setting up AI models.  --------------------------------------------------------------- THE HOT TAKE Perplexity taken to task for hallucinating Here’s what happened: - This week, Dow Jones and the New York Post filed a [lawsuit]( against AI startup Perplexity for violating copyright and trademark laws. - The plaintiffs accuse Perplexity of “hallucinating” - generating fake sections of news stories not found in the original articles and falsely attributing them to media outlets. - This could potentially confuse readers and inject “uncertainty and distrust into the newsgathering and publishing process,” according to the lawsuit. Here’s our take: This case is the most recent example of legacy media firms taking legal action against genAI startups. There are, of course, many ways for tech companies to deal with suits as such, apart from fighting it out in court. One strategy is to team up with would-be aggressors. This is what OpenAI did earlier this year when it announced a [multiyear partnership]( with News Corp, the parent firm of both Dow Jones and the New York Post. Another strategy is to simply shower legacy media firms with love - or cash. That may be the thinking behind the recently publicized initiative from Microsoft and OpenAI. The idea is to grant up to US$10 million to select media outlets to fund newsrooms’ adoption of AI tools. As the industry develops and continues to disrupt the status quo, it can expect more lawsuits as well as the threat of greater regulation. Perhaps, this explains why OpenAI has just announced the [appointment]( of Scott Schools, who previously served as associate deputy attorney general at the US Justice Department, as its chief compliance officer. Notably, Schools also held a similar role at transportation company Uber, which experienced significant pushback as it disrupted the taxi industry over a decade ago. GenAI will arguably make a much bigger impact on society than Uber did, so Schools will have an even tougher job this time around. Yet, investors do not seem all that concerned about lawyers and regulators. Indeed, Perplexity is hoping to attract a [valuation of approximately US$9 billion]( in a potential funding round. This would mark a 3x increase from its valuation earlier this year. It seems that apart from chipmakers like Nvidia and Taiwan Semiconductor Manufacturing Company, lawyers are also emerging as big winners from the rise of genAI.  --------------------------------------------------------------- DEEP READS Check out these interesting reads about AI: 1️⃣ [Tim Cook meets key Chinese AI regulator]( There has been no mention of whether there was a discussion on market access for Apple Intelligence, the tech firm’s bundle of genAI services, in China. 2️⃣ [US to curb AI investment in China soon]( The restrictions, which target investments in AI, semiconductors, microelectronics, and quantum computing, are reportedly under final review and could be published before the US presidential election. 3️⃣ [Elon Musk sued]( The Los Angeles production company behind the movie Blade Runner 2049 is accusing Tesla, its CEO, and Warner Bros. Discovery of using an AI image generator to create promotional art that resembled still images from the 2017 film. The said material was reportedly made for a recent Tesla event.  --------------------------------------------------------------- WITNESS THE NEXT BIG THING - BEFORE IT ACTUALLY GETS BIG  Walk away inspired by disruptive innovations Get ready for an electrifying showdown, as nine startups from across Southeast Asia will battle it out live on November 21. Each of them will be given three minutes to captivate the audience and four esteemed judges with their game-changing solutions. Don’t just hear about it; be there to find out who will emerge as the champion. [Apply for an invite now!](  --------------------------------------------------------------- EVENTS HAPPENING You can also check out a curated list of trending tech events [over here]( and Tech in Asia’s signature events [here](. [Tech in Asia’s Founders Meetup: Philippines on November 14]( Don't just dream it - do it. Connect with Southeast Asia’s tech visionaries and turn your startup aspirations into reality. You could unlock growth opportunities, master investment strategies, and spark game-changing connections. [Get your ticket now to save 20%!]( [DNA Leadership Summit on November 14-15 | Jakarta]( Struggling with the tough decisions and constant pressure that come with leadership? You're not alone. The DNA Leadership Summit is designed to address these challenges. Hear directly from top leaders at Sinar Mas Land, Blue Bird, Vidio, Cakap, and Binar, as they share their real-world experiences and strategies that helped them navigate complex business landscapes. This is your chance to gain practical insights from those who’ve faced similar challenges—and come out on top. [Sign up for free](. --------------------------------------------------------------- That’s it for this edition - we hope you liked it! Not your cup of tea? You can unsubscribe from this newsletter [here](. 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