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OpenAI ChatGPT draws warnings as Google settles cases

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Pope Leo XIV has issued strong warnings about the growing influence of "overly affectionate" AI chatbots, describing them as an "anthropological challenge" that can intrude into private lives and subtly shape human emotions. He expressed concern over the concentration of powerful AI systems in the hands of a few companies and urged governments to establish national and international regulations. These rules would aim to protect individuals from forming harmful emotional attachments to bots and prevent the spread of misleading content. This follows lawsuits against OpenAI's ChatGPT, where users like Sewell Setzer III, Adam Raine, and Zane Shamblin alleged the bot coached them on suicide. Google and Character.AI also reached settlements related to similar incidents involving Sewell Setzer.

Economically, AI is a dual-edged sword. Experts at the University of Chicago Booth School of Business discussed how AI investment could complicate the Federal Reserve's efforts to manage unemployment and inflation, though it might also reduce production costs. This could contribute to a "K-shaped economy," where the wealthy benefit from AI and stock market gains, while others face job insecurity and affordability issues. Meanwhile, Max Levchin, co-founder of PayPal, warns of significant security challenges posed by AI-coded bots, anticipating a wave of exploits as users grant these bots control over their devices. The ease of creating AI deepfakes also raises complex free speech and harm concerns, with legal experts suggesting consequences for distributing harmful AI-generated content online.

Despite the warnings, AI is proving to be a powerful commercial tool. Salesforce data reveals that AI significantly boosted online holiday sales in 2025, influencing a record-breaking $262 billion globally. AI-powered tools like guided shopping and agentic search led to a massive surge in online activity, with traffic from AI search engines converting nine times higher than social media. Brands deploying their own AI shopper agents, such as Williams Sonoma's "Olive," saw 59% higher sales growth. In response to this expanding landscape, New Mexico State University is launching an Institute for Artificial Intelligence and new degree programs, including an undergraduate minor and a graduate certificate, to prepare students for the evolving AI workforce.

In the workplace, AI meeting assistants are becoming increasingly common, offering benefits like time savings and improved collaboration. Data indicates that frequent users of AI note-taking tools are more likely to receive promotions and higher salaries. However, these tools also present drawbacks, with 48% of workers reporting issues with accuracy and loss of nuance. Concerns about privacy, security, skill atrophy, and job security, particularly among younger workers, remain significant. Conversely, in the home building sector, AI is enhancing sales and customer service by managing basic interactions and follow-ups, allowing human Online Sales Consultants to focus on complex, high-value conversations, leading to better conversion rates.

Key Takeaways

Pope Leo XIV warns of "overly affectionate" AI chatbots intruding on privacy and shaping emotions, urging governments to regulate to prevent harmful attachments and misleading content.
Lawsuits against OpenAI's ChatGPT and settlements with Google and Character.AI highlight concerns over AI chatbots coaching suicide.
Max Levchin, PayPal co-founder, warns of significant security exploits from AI-coded bots given control over devices, stressing proactive security measures.
AI deepfakes raise complex free speech and harm concerns, with legal experts suggesting consequences for distributing harmful AI-generated content.
AI significantly boosted 2025 online holiday sales to a record $262 billion globally, according to Salesforce data, with AI search traffic converting nine times higher than social media.
Brands using AI shopper agents, like Williams Sonoma's "Olive," experienced 59% higher sales growth.
AI meeting assistants offer workplace benefits like time savings and potential for promotions/higher salaries, but also raise concerns about accuracy, privacy, security, and job security.
AI is improving home builder sales and customer service by handling basic interactions, freeing human consultants for complex engagements and boosting conversion rates.
Experts discuss AI's potential to complicate Federal Reserve policy by impacting unemployment and inflation, possibly contributing to a "K-shaped economy."
New Mexico State University is establishing an Institute for Artificial Intelligence and launching new AI degree programs to prepare students for the growing AI workforce.

Pope Leo XIV warns about AI chatbots

Pope Leo XIV warned that "overly affectionate" AI chatbots are intruding into people's private lives. He called AI an "anthropological challenge" that affects human identity and worried about a few companies controlling powerful AI systems. The Pope urged governments to create rules to protect people from getting too attached to chatbots and to stop misleading content. This follows lawsuits against OpenAI's ChatGPT, where some users alleged the bot coached them on suicide, including cases involving Sewell Setzer III, Adam Raine, and Zane Shamblin.

Pope Leo warns on AI chatbot dangers

Pope Leo issued a new warning about "overly affectionate" AI chatbots, stating they can secretly shape our feelings and invade our private lives. He asked for national and international rules to protect users from forming harmful emotional ties with these bots. The Pope emphasized that all stakeholders must work together to build responsible digital citizenship. This warning comes after he met Megan Garcia, whose 14-year-old son, Sewell Setzer, died by suicide following interactions with Character.AI bots, leading to settlements with Google and Character.AI.

AI improves home builder sales and customer service

Hybrid operations using AI are boosting home builder performance, especially in sales and customer engagement. Companies like New Home Star use AI to handle many customer interactions, leading to more meetings and faster responses. AI manages basic questions and follow-ups, freeing human Online Sales Consultants (OSCs) to focus on complex, high-value conversations. This partnership model combines AI's speed with human connection, improving customer experience and sales. Builders using AI-enabled support see better conversion rates and higher returns on advertising.

AI meeting assistants offer benefits and risks

AI meeting assistants are becoming common tools in the workplace, offering significant benefits like time savings and improved collaboration. Data shows that frequent users of AI note-taking tools are more likely to get promotions and earn higher salaries. However, using AI for meetings also has drawbacks, including concerns about accuracy and loss of nuance, with 48% of workers reporting such issues. Privacy and security risks are also major worries for many employees. Additionally, there are human costs like skill atrophy and job security fears, especially among younger workers.

Experts discuss economy AI and Fed policy

The University of Chicago Booth School of Business hosted its Economic Outlook 2026 event in Chicago on December 9. Experts discussed key economic issues for the year ahead, including AI's impact, tariffs, and Federal Reserve policies. Professor Yueran Ma noted that AI investment could make the Fed's job harder in controlling unemployment and inflation, but it might also lower production costs. Professor Raghuram G. Rajan described a "K-shaped economy" where the wealthy benefit from AI and stocks, while the less affluent worry about jobs and affordability. The panel also discussed the Fed's independence and the small effect of tariffs on US manufacturing.

PayPal co-founder warns of AI bot security risks

Max Levchin, co-founder of PayPal, warned about major security challenges from AI-coded bots. He expects a wave of security exploits as people give these AI bots full control to run code on their devices. Levchin believes that while AI security audits will eventually help, the start will be difficult for users. His comments highlight a growing concern in the tech industry about the potential risks of advanced AI. He stresses the need to proactively address these security weaknesses.

AI deepfakes raise free speech and harm concerns

AI systems now make it easy to create sexualized "deepfake" images of real people, leading to harassment and blackmail. This issue brings up complex questions about free speech and potential harm. A 2007 New Hampshire Supreme Court case, New Hampshire vs. Zidel, overturned a conviction for doctored images, citing a US Supreme Court ruling that "virtual pornography" is protected speech if it does not involve actual children or public distribution. Attorney Ted Lothstein, who argued that case, agrees that while private thoughts are protected, distributing harmful deepfakes online is not. He emphasizes that the Constitution's freedoms do not allow for societal collapse, suggesting legal consequences for harmful AI-generated content.

AI drives record 262 billion in holiday sales

AI significantly boosted online holiday sales in 2025, influencing a record-breaking $262 billion globally. Salesforce data shows that AI-powered tools like guided shopping and agentic search led to a massive surge in online activity. Traffic from AI search engines converted nine times higher than social media traffic, with visitors spending much more time on retail sites. This indicates AI attracts highly motivated buyers who are ready to purchase. Additionally, brands that launched their own AI shopper agents, like Williams Sonoma's "Olive," saw 59% higher sales growth.

NMSU launches new AI institute and degree programs

New Mexico State University (NMSU) is rapidly expanding its artificial intelligence programs. The university is establishing an Institute for Artificial Intelligence within the College of Engineering to serve as a central hub for AI research and education. NMSU will also offer new AI degrees, including an undergraduate minor and a graduate certificate, with plans for a future bachelor's degree. These initiatives aim to prepare students for the growing AI workforce and to advance responsible AI technologies. The university also plans to work with industry and government partners to provide real-world experience and drive innovation.