AI takes on customer service roles in Japan as labour shortages grow
Companies in Japan are increasingly turning to AI to manage customer service roles, addressing the country’s ongoing labour shortage. These AI systems are now being used for more complex tasks, assisting workers across various industries.
Ridgelinez Ltd, a Fujitsu subsidiary, and Autobacs Seven Co have launched trials for ‘Rachel,’ an AI assistant that recommends products based on customer needs, specific car models, and available stock. The system, developed by Tokyo-based Couger Inc, is designed to ease the burden on car sales staff, allowing them to focus on more specialised tasks while the AI handles routine queries.
In other sectors, Oki Electric Industry and Kyushu Railway have introduced a trilingual AI assistant capable of speaking Japanese, English, and Chinese. This system provides passengers with station maps and assists with transfer information. Meanwhile, Tokyo startup Sapeet Co has developed an AI system that simulates customer interactions for training staff at jewellery stores, helping to improve customer service skills.
These AI solutions are playing a key role in addressing the labour shortage, allowing human employees to focus on more advanced tasks while AI systems manage routine customer service functions.
Microsoft poised to invest $1 billion in OpenAI as Apple exits talks
Apple has reportedly exited negotiations to participate in OpenAI’s upcoming funding round, expected to raise around $6.5 billion. The round is anticipated to close next week, according to the Wall Street Journal. Other major tech companies, including Microsoft and Nvidia, are still engaged in talks to invest.
Microsoft is expected to contribute approximately $1 billion to the round, after previously investing $13 billion into OpenAI. The funding round is part of the tech industry’s growing interest in generative AI, which has sparked an arms race among companies to secure a competitive edge.
OpenAI‘s fundraising is projected to value the company at over $100 billion, largely driven by the success of ChatGPT. The AI model’s launch in late 2022 encouraged companies across multiple sectors to invest heavily in the technology to remain competitive.
OpenAI declined to comment on the news, while Apple did not respond to requests for clarification regarding its withdrawal from the negotiations.
Meta postpones joining EU AI Pact, focuses on compliance
Meta Platforms has announced it will not immediately join the European Union‘s voluntary AI Pact, which is a temporary initiative ahead of the AI Act coming into force. The company is currently focusing on compliance with the forthcoming regulations set out in the act, but may sign the pact at a later stage.
The EU’s AI Act, agreed in May and adopted by the European Council, will introduce strict rules governing the development and use of artificial intelligence. Under these regulations, companies must provide detailed summaries of the data used to train their AI models. The majority of the law’s provisions will take effect from August 2026.
In the interim, the AI Pact encourages companies to voluntarily adopt some of the key requirements of the forthcoming act. Meta has expressed its support for harmonised EU regulations but is prioritising work on meeting the obligations of the AI Act.
Spotify enhances AI-powered playlists for premium users
Spotify is expanding its AI Playlist tool, which helps premium users create personalised playlists using generative AI, to four new markets, including the United States and Canada. Currently in beta, the feature allows subscribers to tailor their playlists with additional text prompts, enhancing the listening experience.
Launched earlier in the United Kingdom and Australia, AI Playlist is now being extended to Ireland and New Zealand as part of Spotify’s strategy to attract new subscribers. The company aims to differentiate itself from growing competition with Apple and Amazon by integrating more AI-driven features into its platform.
While the tool offers users customisable music choices, it is currently limited to music-related prompts and will not respond to queries about current events or brands. Spotify also provides other AI-powered tools like ‘daylist’, a playlist that updates daily, and ‘AI DJ’, which recommends music based on individual listening habits.
Spotify‘s paying subscribers rose 12% year-on-year, reaching 246 million in the second quarter. The company’s continued focus on AI innovations reflects its commitment to offering unique features to its global user base.
AI could raise inflation short term, warns Bank of Canada governor
Bank of Canada Governor Tiff Macklem has said that businesses adopting AI could create short-term inflationary pressures by increasing demand. Speaking at an AI conference in Toronto, he noted that while AI-driven productivity growth may benefit the economy in the long run, its immediate effects could add to inflation.
Macklem pointed to rising electricity demand from new data centres as an example of AI’s economic impact. He emphasised that central bankers are working to understand how AI will affect the economy, inflation, and employment. Despite concerns, there is no current evidence that AI displaces labour at a level that would significantly impact overall employment rates.
The Bank of Canada has begun using AI to improve economic forecasting, data analysis, and efficiency, though its application is still in the early stages. Macklem compared the central bank’s cautious approach to AI to cautiously entering a dark room, feeling the way forward before making decisions.
Canada has also introduced a Voluntary Code of Conduct for the responsible development of generative AI systems. Macklem underlined that while AI offers potential benefits, it brings challenges and uncertainties that require careful management by policymakers.
Connectly gains momentum with $20 million Series B funding led by Alibaba
Connectly, a startup specialising in conversational commerce through AI-driven personalised messaging has secured $20 million in a Series B funding round. The round was led by Alibaba and included participation from several notable investors, such as Unusual Ventures and Volpe Capital. This new investment boosts Connectly’s total funding to $37.2 million and brings its valuation close to $100 million.
The funds will be used to advance AI research and support Connectly’s expansion into the US and European markets. Additionally, the company plans to strengthen its engineering presence in Greece, aiming to make it a key hub alongside San Francisco. Connectly, a company that uses AI models to help retailers enhance customer engagement and drive sales, has experienced significant growth in the past year.
The successful funding round follows Connectly’s launch of its advanced AI recommendation tool, ‘Sofia AI,’ and its expansion into the US market. The partnership with Alibaba is expected to accelerate Connectly’s global reach further, integrating its AI solutions into Alibaba’s international e-commerce platforms. With plans to grow its workforce to 80 by year-end and a current client base of 300, Connectly is well-positioned to continue its impactful growth in the retail industry.