AI-Powered Black Friday

Happy Monday!  

This year's Black Friday shopping experience has been dramatically reshaped by the influence of generative AI technologies. Platforms like ChatGPT have revolutionized online shopping, contributing to an astounding 1,800% increase in traffic to retail websites compared to last year. This surge underscores a significant shift from traditional search engines to AI-powered tools, as consumers seek more personalized and efficient ways to find deals. While physical store visits have declined by 3.2%, nearly 44% of shoppers intended to leverage AI tools to uncover the best bargains.  Here are the highlights from last week:

• AI platforms like ChatGPT are transforming online shopping, with a significant increase in traffic from generative AI sources to retailers. This shift challenges traditional search engines and is expected to continue growing during the holiday season.  
• Generative AI-powered chatbots contributed to an 1,800% increase in traffic to retail sites compared to last year as stores see thin crowds. In contrast, physical store visits declined by 3.2%, indicating a preference for online shopping facilitated by AI technologies.
• Approximately 44% of Black Friday shoppers intended to leverage AI tools, such as ChatGPT, to find deals. The survey indicates a significant shift towards integrating AI into shopping strategies, with consumers leveraging these tools for product information and inspiration.
• Shoppers used AI-powered platforms like ChatGPT, PayPal's Honey app, and Perplexity AI's search features to uncover bargains. The piece also notes that while AI tools are gaining popularity, consumers are advised to double-check information, as some AI-generated suggestions may be outdated or inaccurate.
• U.S. e-commerce sales on Black Friday reached a record $10.8 billion, a 10.2% increase from 2023. Generative AI chatbots significantly contributed to this surge by enhancing customer service experiences, leading to a 9% higher conversion rate for retailers utilizing AI. The use of AI-powered chat services grew by 31% year-over-year, and mobile shopping accounted for 55% of online sales.  

Notable AI news from Last Week

The integration of AI with CRISPR is poised to be revolutionary, amplifying the power of genome-editing technology with artificial intelligence, and its transformative impact is already becoming evident.  

AI-generated writing has become pervasive on LinkedIn, with over half of longer English-language posts estimated to be AI-created, fueled by tools like ChatGPT and LinkedIn’s writing assistants. While some users appreciate AI for saving time and improving grammar, others criticize its use for devaluing human creativity and originality.  

A group calling itself "Sora PR Puppets" leaked early access to OpenAI’s Sora video generator, accusing the company of exploiting artists for unpaid labor and prioritizing PR over genuine artistic collaboration. The group claims OpenAI pressures early testers to promote Sora while restricting creative freedom and transparency.  

Neuralink, Elon Musk's brain implant company, has launched a feasibility study to test its N1 brain-computer interface (BCI) for controlling a robotic arm using thought alone. Unlike earlier, bulky systems, Neuralink's wireless implant decodes neural signals to control external devices and has shown promise in enhancing independence for individuals with paralysis.  

Flashing lights from emergency vehicles, such as police cars and ambulances, can disrupt image-based automated driving systems, potentially triggering "digital epileptic seizures" that increase the risk of accidents, according to new research.

Elon Musk’s AI startup, xAI, has rapidly scaled since its launch in 2023, aiming to compete with industry leaders like OpenAI. Backed by $11 billion in funding and valued at $50 billion, xAI has focused on developing proprietary data centers like the Colossus facility in Memphis, completed in record time. Despite its ambitious growth, including leveraging data from Musk’s companies and launching products like the Grok chatbot, xAI lags behind competitors in market presence and revenue.  

Tesla has released version 13 of its Full Self-Driving (FSD) software, featuring an updated end-to-end driving network and new capabilities, such as autonomous reversing from parking spaces. CEO Elon Musk anticipates that FSD will surpass human driving abilities by early 2025, with plans to launch a robotaxi service later that year.   

The Permian Basin's oil industry is leveraging AI to boost efficiency and productivity. AI applications include predicting optimal drilling locations, managing equipment, and detecting issues like methane leaks, leading to increased production with fewer workers and reduced environmental impact.

Notable Podcasts and Videos

NPR Podcast:  A look at a pilot program in Georgia that uses AI Robots (“jailbots”) to track inmates

Recent Investment Activity

Tracking 16 AI companies last week that raised $8.7B, here are the highlights:

/dev/agents: /dev/agents is a San Francisco startup creating a framework for AI services and agents to interconnect and communicate. It raised $56 million at a $500 million valuation, led by Index Ventures and CapitalG.

Argil: Argil is a Paris-based startup that allows content creators and brands to produce realistic AI-generated video avatars. It raised a $4.1 million seed round led by EQT Ventures. 

Biolevate: Biolevate is a Paris startup using AI to help medical writers create and manage research and compliance documents. It raised a $6.3 million seed round led by EQT Ventures.

Black Forest Labs: Black Forest Labs is a German startup developing advanced AI models for generating images and videos from text descriptions. It seeks to raise $200 million, with Andreessen Horowitz reportedly leading the round.

Boosted.ai: Boosted.ai is a Toronto-based startup using AI to assist investment managers with portfolio decisions and risk management. It raised $15 million, bringing total funding to $61 million, with investors including Fidelity Investments Canada and others.

Circleback: Circleback is a San Francisco startup offering an AI-powered app that records and transcribes meetings, integrating with platforms like Zoom and Microsoft Teams. It raised a $2.5 million seed round from Transpose Platform, Rebel Fund, and Pioneer Fund.

Cofactor AI: Cofactor AI is a Chicago startup that automates the insurance claim appeals process by integrating with electronic health record systems. It raised a $4 million seed round led by Drive Capital.

Cradle: Cradle is an Amsterdam and Zurich-based startup developing an AI platform to help scientists design and optimize proteins. It raised a $73 million Series B round led by IVP, bringing total funding to over $100 million. 

Databricks: Databricks is a San Francisco company providing a cloud platform for businesses to store, manage, and analyze big data. It's reportedly close to closing an $8 billion round at a $55 billion valuation, mainly through a secondary share sale.

Decart: Decart is a Tel Aviv startup aiming to improve AI model efficiency for faster training and real-time inference. It's seeking to raise $25 million at a $500 million valuation following a recent $21 million seed round.

Eon: Eon is a New York startup offering a cloud backup platform that automates scanning, mapping, and classifying cloud resources. It raised a $70 million Series C at a $1.4 billion valuation, led by Bond, bringing total funding to $200 million.

Halcyon: Halcyon is an Austin-based startup using AI to detect and prevent ransomware attacks. It raised a $100 million Series C at a $1 billion valuation, led by Evolution Capital Partners, totaling $190 million in funding. 

PlayAI: PlayAI is a Palo Alto startup that allows users to replicate voices with minimal input. It raised a $20 million seed round co-led by 500 Startups and Kindred Ventures, totaling $21 million in funding.

Range: Range is a McLean, VA-based startup offering an AI-driven wealth management platform integrating services like tax filing and investment management. It raised a $28 million Series B led by Cathay Innovation, totaling $40 million in funding.

Talus Network: Talus Network is a crypto startup enabling the creation of autonomous AI agents for tasks like managing financial portfolios and automating game characters. It raised a $6 million round at a $150 million valuation, led by Polychain Capital, totaling $9 million in funding.

Wherobots: Wherobots is a San Francisco startup offering cloud-based software for analyzing spatial data like satellite imagery and GPS info. It raised a $21.5 million Series A led by Felicis, with participation from JetBlue Ventures and others.

That's all from last week,

Doug Neal

Thanks for reading!

Not a subscriber yet?  Click here to subscribe.

#eLabAIReport #ai #artificialintelligence #deeptech #AIreport eLab Ventures