Mistral AI's New Multimodal Model Sets New Standards, Intensifies Global AI Competition and Promotes Diversity
State of Play:
In November 2024, Mistral AI unveiled a new multimodal AI model, positioning itself as a formidable competitor to ChatGPT. Mistral's web platform, Le Chat is capable of processing and analyzing large PDFs, images, and intricate technical content, including mathematical equations and scientific documents. Additionally, with the integration of Black Forest Labs' Flux-Pro, it supports image generation and AI agents designed to streamline routine tasks.
Why it Matters:
In 2023, U.S.-based institutions produced 61 notable AI models, far surpassing the 21 developed by the European Union. Mistral's advancements intensify competition and promote diversity in AI models, adding one attuned to European languages and cultural values. This could lead to more localized tools for European markets, offering brands and corporates opportunities for culturally relevant AI-based engagement and signaling a broader push for AI sovereignty, potentially reshaping global AI development and adoption.
Strategic Alliances and Growing Investments: The Evolution of AI in Defense Tech
State of Play:
Anduril announced a partnership with OpenAI. The details of the collaboration are still unclear, but it is known that OpenAI will provide specialized AI models designed to enhance the defense of U.S. personnel and infrastructure. Within a year, OpenAI shifted from rejecting military use to collaborating with the Pentagon and developing battlefield systems.
Why it Matters:
Despite OpenAI's philosophical U-turn, the news is not surprising from a macro perspective, as investments in defense tech have surged in recent years, peaking at $48 billion in 2021 in the US. Moreover, relevant activities in this field have also recently occurred on the other side of the Atlantic, with Helsing, a leading player in the AI defense industry, introducing a new type of swarm-capable, software-based, and mass-producible drone.
Romanian Elections Postponed Amid Concerns of Russian Digital Interference
State of Play:
In Romania, the presidential elections were postponed due to concerns that the radical right candidate, Calin Georgescu, was receiving "digital backing" from Russia, potentially leading to excessively high electoral support in the first round of voting. Specifically, it was suggested that 800 TikTok accounts, created by Russia in 2016, were activated shortly before the elections, all supporting the right-wing conservative, pro-Kremlin candidate.
Why it Matters:
The Romanian elections highlight a recurring pattern of foreign interference in democratic processes, similar to the 2016 U.S. election, Brexit, and the 2017 French presidential elections. This underscores the need for vigilance in the digital landscape, as platforms like TikTok become targets for manipulation. For digital marketers, it is a reminder of the broader implications of platform security and integrity. Erosion of trust in these platforms can lead to stricter regulations and a fundamental shift in the digital marketing environment.
Potential U.S. TikTok Ban: Legal Battle and Implications for Brands and Users
State of Play:
In April 2024, President Biden signed a bill that would lead to a nationwide TikTok ban in the U.S. In response, TikTok filed a lawsuit challenging the government's actions, arguing that the ban violates the First Amendment and due process protections. The company also sought an emergency injunction to halt the ban's implementation, but the request was denied. The company then appealed to the U.S. Supreme Court, requesting immediate intervention to halt the ban while legal proceedings continue, and the Supreme Court agreed to . The Supreme Court’s decision is pending- if denied, the ban could proceed, disrupting access for users in the U.S.; if granted, enforcement will be temporarily delayed.
Why it Matters:
TikTok has been banned in several countries and on government devices in many others. With nearly 170 million U.S. users, a potential U.S. ban could set a significant precedent but is unlikely to be mirrored by U.S. allies. Such bans could fragment the digital landscape and benefit competitors like Meta and Google. Critics argue that banning TikTok without comprehensive tech regulation could strengthen tech monopolies without addressing broader privacy issues. Brands may need to reassess their strategies and diversify across multiple platforms to maintain audience engagement.
Lacking The Human Touch: Spotify Wrapped and the Limits of AI
State of Play:
Each year, Spotify users get insights into their personal Spotify Wrapped. This is a summary of the user's listening habits, showing, for example, how many minutes they spent listening to content on Spotify, what their top songs and artists were, and which genre they listened to the most. In their anticipation, users were disappointed this year, as the personalized Spotify Wrapped did not seem to meet the quality they expected.
Why it Matters:
The critique must be viewed in the context of Spotify laying off large parts of their staff in recent years while simultaneously embracing the potential of AI. In this instance, however, users seemed to recognize the limitations of AI with their Spotify Wrapped, missing the human touch in the insights. Similar reactions were observed with Coca-Cola's AI-generated Christmas commercial, which was received negatively for lacking realism and sidelining human creativity, highlighting a fundamental conflict between societal expectations and AI innovation.
Revolutionizing Retail: How Virtual Fitting Rooms are Transforming Online Shopping
State of Play:
Augmented reality, artificial intelligence, computer vision, and pose estimation are touted as solutions to the fundamental problem of online shopping: offering a virtual fitting room where consumers can try on clothing. In virtual fitting rooms, customers first create an avatar that reflects their personal measurements and body shapes. These avatars serve as virtual representations of the customers, allowing digitized clothing to be applied to them.
Why it Matters:
Tools such as virtual fitting rooms have the potential to revolutionize online shopping. According to Uri Minkoff, Co-founder and CEO of the fashion brand Rebecca Minkoff shoppers who interacted with a product in 3D are 27% more likely to purchase it, while customers who engaged with an item in augmented reality are 65% more likely to place an order. From an economic perspective, the market size was valued at $5.71 billion in 2024 and is predicted to grow to $25.11 billion by 2032, reflecting a significant growth trajectory.
