The European Union is taking a firm stance against Meta, accusing the tech giant of abusing its dominant market position by blocking rival AI chatbots from its WhatsApp messaging service. Since an October update, which took full effect on January 15, only Meta's own AI assistant, Meta AI, can be used on the popular app. EU Competition Commissioner Teresa Ribera stated that dominant companies cannot unfairly leverage their power, and the Commission believes this policy could significantly harm the market for AI chatbots, including those from companies like OpenAI. The EU is considering "interim measures" to potentially force Meta to reopen WhatsApp to third-party AI assistants, a move Meta argues is unwarranted, claiming WhatsApp Business API is not a primary channel for chatbots. Brazilian authorities have also initiated a similar case.
Meanwhile, Databricks CEO Ali Ghodsi highlighted the profound impact of AI agents, revealing that 80 percent of databases on Databricks' platform are now constructed by AI agents rather than human users. This trend spans across their more than 20,000 customers, indicating AI's growing role in building real software within major companies. Ghodsi further suggested that AI will eventually render traditional Software as a Service (SaaS) models, such as those from Salesforce or SAP, "irrelevant" by replacing complex user interfaces with natural language interactions. Databricks, which recently secured a $5 billion funding round, has developed Lakebase, a database specifically designed for AI agents, and its AI product Genie, an LLM user interface, is driving increased data warehouse usage.
The rapid advancements in AI are also fueling investor concerns, leading to a trend of "shorting" software stocks due to fears of AI-driven disruption. Companies like Salesforce have seen sharp drops, particularly after Anthropic launched a legal automation tool, raising questions about traditional business models. Goldman Sachs strategists note that software and data aggregation companies appear vulnerable, with short interest in the software sector reaching a two-year high. However, some industry experts believe AI will automate tasks rather than entire jobs, shifting human roles towards relationship building. Beyond market dynamics, the UK faces a significant challenge, needing to accelerate efforts to close its AI skills gap, as an estimated 60 percent of its workforce lacks responsible AI skills, despite over $1 trillion being invested globally in AI since last January.
AI's influence extends across various sectors, transforming operations and services. In the mortgage industry, AI-powered products are enhancing analytics and servicing, with ServiceLink introducing AI-driven recommendations and chat features for its auction buyer portal. The tax and finance sectors are also undergoing continuous AI transformation, with CEOs expecting generative and agentic AI to deliver deeper business insights, though many teams struggle with data silos and quality, leading 78 percent to seek third-party AI providers. Companies like Meridian are addressing the shift in consumer behavior by offering AI visibility platforms that help brands track and improve their presence in AI-driven search results. Interestingly, not every tech-forward development involves AI; Bosch confirmed that no AI tools were used for Guy Fieri's transformation into 'Justaguy' for their Super Bowl 60 ad, relying instead on traditional filming and post-production visual effects.
Key Takeaways
- The EU is challenging Meta for blocking rival AI chatbots, including OpenAI's ChatGPT, from WhatsApp since January 15, potentially imposing "interim measures."
- Databricks CEO Ali Ghodsi reports AI agents build 80% of databases on their platform, indicating AI's significant role in software development.
- Ghodsi predicts AI will make traditional SaaS products like Salesforce "irrelevant" by replacing complex UIs with natural language.
- Databricks recently closed a $5 billion funding round and developed Lakebase for AI agents, with its Genie product driving data warehouse usage.
- Investors are "shorting" software stocks, including Salesforce, due to fears of AI disruption, with short interest in the sector at a two-year high.
- Anthropic launched a legal automation tool, contributing to market concerns about AI's impact on traditional business models.
- Anthropic employs a philosopher, Amanda Askell, to teach its AI chatbot Claude morals and emotional intelligence.
- The UK needs to address a significant AI skills gap, with 60% of its workforce lacking responsible AI skills, despite over $1 trillion global AI investment.
- AI is transforming the mortgage industry with new analytics and servicing products, and the tax/finance sectors are seeking AI for deeper insights, often relying on platforms like Databricks and Snowflake.
- Meridian offers an AI visibility platform to help brands track and improve their presence in AI-driven search results.
EU warns Meta over WhatsApp AI chatbot block
The EU is threatening to take action against Meta for blocking rival AI chatbots from its WhatsApp messaging service. Since an October upgrade, only Meta AI can be used on WhatsApp, which the European Commission believes abuses Meta's dominant position. This could cause serious harm to the market, as WhatsApp is an important way for AI chatbots like OpenAI's ChatGPT to reach users. EU competition commissioner Teresa Ribera stated the need to defend market rules. Meta argues the EU's logic is incorrect and that WhatsApp Business API is not a key channel for chatbots. Brazilian authorities also brought a similar case last month.
EU demands Meta allow rival AI on WhatsApp
The EU has told Meta it broke rules by blocking other AI chatbots from WhatsApp and must make urgent changes. Since January 15, only Meta's own AI assistant, Meta AI, can access the popular messaging app. Teresa Ribera, the European Commission's competition chief, said dominant tech companies cannot unfairly use their power. Meta believes the EU has no reason to intervene and wrongly thinks WhatsApp Business was a main way people use chatbots. The EU may impose "interim measures" to prevent market harm, potentially forcing Meta to reopen WhatsApp to third-party AI assistants.
EU may force Meta to open WhatsApp to AI rivals
EU regulators are threatening Meta Platforms with interim measures for blocking rival AI chatbots from its WhatsApp service. The European Commission sent charges to Meta, believing it abuses its dominant position. EU antitrust chief Teresa Ribera stated that dominant tech companies cannot gain unfair advantages and that quick action is needed to protect competition. Meta's policy, implemented on January 15, only allows its Meta AI assistant on WhatsApp. Meta argues the EU has no reason to intervene and that its WhatsApp Business API is not a key channel for chatbots. The EU's decision on interim measures depends on Meta's response.
EU plans action to reverse Meta WhatsApp AI ban
The European Commission plans to impose "interim measures" on Meta to stop it from blocking third-party AI assistants on WhatsApp. The EU opened an investigation in December into whether Meta's new AI policy broke antitrust rules. On Monday, the EU stated its preliminary view is that Meta breached these rules. Commissioner for Competition Teresa Ribera said this action protects competition and prevents dominant tech companies from gaining unfair advantages. Meta updated its WhatsApp Business Solution Terms in October, effectively banning third-party AI, with the policy taking effect in January. Meta believes the EU has no reason to intervene, arguing its WhatsApp Business API is not a key distribution channel for chatbots.
Databricks CEO reveals AI agents build 80 percent of databases
Databricks CEO Ali Ghodsi shared new financial details about the real impact of AI agents. He revealed that 80 percent of databases on Databricks' platform are now built by AI agents, not people. This trend is happening across Databricks' more than 20,000 customers, not just tech companies. Ghodsi noted this is clear proof that AI agents are building real software within major companies. He observes which AI models are successful and how fast agents are improving, as the software industry grapples with AI's building capabilities.
Databricks CEO says AI will make SaaS irrelevant
Databricks CEO Ali Ghodsi believes AI will soon make Software as a Service SaaS irrelevant, even though it is not dead yet. He stated that AI is increasing usage for Databricks, which recently closed a 5 billion dollar funding round. Ghodsi highlighted their AI product, Genie, an LLM user interface, as a driver of data warehouse usage. He explained that AI will replace complex user interfaces with natural language, making products like Salesforce or SAP invisible. Databricks created Lakebase, a database for AI agents, which has seen rapid growth. Ghodsi also mentioned that Databricks is not planning another funding round or an IPO right now.
UK must boost AI skills to shape its future economy
The UK needs to accelerate its efforts to close the artificial intelligence skills gap. Steve Rigby notes that since the AI Opportunities Action Plan was published last January, over 1 trillion dollars has been invested globally in AI. The UK has a chance to be a major player, despite competition from the US and China, due to its foreign investment, sensible regulations, strong skills, and growing businesses. However, the Chartered Institute for IT estimates that 60 percent of the workforce lacks responsible AI skills. A digital divide is also growing, with independent schools three times more likely than state schools to have an AI strategy. The UK should aim to become an AI skills superpower, focusing on training and new job creation.
Meridian CEO Alex Dees discusses AI visibility platform
Alex Dees, Co-founder and CEO of Meridian, discussed his company's AI visibility platform. Meridian helps brands track, measure, and improve their presence in AI-driven search results. Dees explained that AI is changing how people find products, and businesses need to ensure their products are recommended correctly. The platform offers AI visibility tracking, citation analysis, competitor insights, and action workflows to boost visibility. Meridian has overcome challenges like inconsistent AI answers and complex attribution by using repeatable test sets and focusing on key metrics. The company's technology has evolved from basic tracking to advanced opportunity detection for customers.
AI sales tools transform modern business
Artificial intelligence sales tools are significantly changing the modern sales process. These advanced tools are transforming how businesses operate and interact with customers. The use of AI in sales is creating a new business environment.
AI and tech boost mortgage industry services
The mortgage industry is seeing new developments in analytics, servicing, and AI-powered products. LoanStream welcomed Wendy Licis and Brian Herbert to lead its East and West sales divisions, focusing on TPO and Non-QM production. ICE will showcase its MSP® loan servicing system at the MBA Servicing Solutions Conference and Expo from February 16-18. ServiceLink launched new features for its auction buyer portal, including AI-powered recommendations and chat, to help servicers sell properties faster. VeriTitle, backed by First American Data & Analytics, offers quick title insights to lenders, identifying potential issues early. January mortgage issuance surged to 119.8 billion dollars.
Tax and finance need constant AI transformation
The tax and finance sectors must continuously transform with AI, focusing on accuracy, trust, and data quality. Generative and agentic AI are set to change operations, with CEOs expecting these functions to provide deeper business insights. While deterministic AI offers consistent results for compliance, probabilistic AI from large language models can handle complex data but may yield varied outcomes. Many teams struggle with data silos and quality issues, as 80 percent report insufficient AI-ready data. Only a small percentage effectively manage data, leading 78 percent to seek third-party AI providers. Modern AI data cloud platforms like Databricks and Snowflake are crucial for centralizing data.
Bosch confirms no AI used for Guy Fieri Super Bowl ad
Food Network star Guy Fieri will appear in a Bosch Super Bowl 60 ad as a character named 'Justaguy,' without his usual spiked hair. Fieri teased this new look on Instagram for his 58th birthday, leading many to wonder if AI was used for the transformation. However, Bosch confirmed to USA TODAY that AI tools were not used. Instead, filming was done in person, and post-production visual effects were completed by Parliament, a company with twenty years of experience. Viewers will see the full transformation during the ad in the second quarter of the game.
Investors short software stocks amid AI disruption fears
A new trend in the AI market involves investors "shorting" software stocks due to fears of AI-driven disruption. Software and data services companies are under pressure after Anthropic launched a legal automation tool, raising concerns that AI could upend traditional business models. Goldman Sachs strategist Sharon Bell noted that companies aggregating software and data are seen as vulnerable. The S&P 500 Software & Services Index has fallen, with Salesforce, Thomson Reuters, and LegalZoom seeing sharp drops. Mark Dowding of RBC BlueBay Asset Management stated that short interest in the software sector is at a two-year high. However, Anish Acharya of a16z believes AI automates tasks, not entire jobs, shifting human roles to relationship building.
Philosopher teaches Anthropic AI chatbot Claude morals
Amanda Askell, a philosopher at Anthropic, is teaching the AI chatbot Claude to have morals and a sense of right and wrong. Askell spends her days understanding Claude's thinking and talking to the AI model. She believes AI models have a human-like quality and will eventually develop a sense of self. Her work is like raising a child, guiding Claude to be emotionally intelligent and to understand its identity as helpful and humane. She trains Claude to detect right from wrong and to avoid being manipulated.
Sources
- EU threatens to act over Meta blocking rival AI chatbots from WhatsApp
- EU tells Meta to let rivals run AI chatbots on WhatsApp
- EU threatens Meta with interim measure for blocking AI rivals from WhatsApp
- EU announces it plans to impose measures on Meta to reverse WhatsApp AI policy
- Under the hood of the AI economy with Databricks CEO Ali Ghodsi
- Databricks CEO says SaaS isn't dead, but AI will soon make it irrelevant
- UK needs ‘next gear’ to bridge the artificial intelligence skills gap
- Meridian: Interview With Co-Founder & CEO Alex Dees About The AI Visibility Platform
- How AI sales tools are changing the modern sales process
- Analytics, Servicing, AI, Warehouse, Doctor Products; MBS Trends: Credit Scores Matter
- AI Era Requires Continuous Tax and Finance Transformation
- Did Bosch use AI to make Guy Fieri 'Justaguy' for Super Bowl ad?
- The AI narrative now has a new trade
- This Philosopher Is Teaching AI to Have Morals
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