Who’s Betting, Where, and Why in AI – SwissCognitive AI Investment Radar

As global AI funding levels remain elevated, this week’s investment activity reveals a tightening pattern: fewer hubs, bigger bets, and sharper focus. Silicon Valley, Beijing, and Paris now account for 80% of global AI funding, while other regions navigate capital scarcity and look for niche leverage. Meanwhile, Amazon’s CEO used his annual letter to justify billions already spent, calling AI investments a necessity for long-term competitiveness.

In San Francisco, startup Virtue AI secured $30 million to tackle deployment risk, a concern that’s becoming more pronounced as adoption scales. UK-based Synthesia reported $100 million in revenue and welcomed Adobe Ventures as a new backer, underscoring the value of enterprise AI tools that are already delivering results. And in China, a newly launched $8 billion AI fund backed by government and finance ministries will channel early-stage investments into foundational research and startup formation.

CEE continues to gain investor attention as a cost-efficient and increasingly capable AI development region, while Korea saw a domestic political pledge of $70 billion toward AI initiatives. On the infrastructure front, Nvidia’s $500 billion long-term strategy—including chips and supercomputing partnerships—continues to drive share price gains, while nEye Systems closed a $58 million round to push optical chip development further into the AI stack.

Big tech players aren’t staying out of the startup scene either. Alphabet and Nvidia reportedly invested in SSI, the new venture by OpenAI co-founder Ilya Sutskever, and ex-OpenAI CTO Mira Murati’s startup is reportedly eyeing a massive $2 billion seed round. CMA CGM’s €100 million partnership with Mistral AI brings logistics into the funding spotlight, and the trend toward agentic AI for financial research continues to spread across fintech.

Previous SwissCognitive AI Radar: AI Funding Highlights.

Our article does not offer financial advice and should not be considered a recommendation to engage in any securities or products. Investments carry the risk of decreasing in value, and investors may potentially lose a portion or all of their investment. Past performance should not be relied upon as an indicator of future results.

Der Beitrag Who’s Betting, Where, and Why in AI – SwissCognitive AI Investment Radar erschien zuerst auf SwissCognitive | AI Ventures, Advisory & Research.

Global AI Capital Moves at Full Speed – SwissCognitive AI Investment Radar

AI funding momentum hasn’t slowed. From global infrastructure projects to nuanced questions about investor confidence, this week brought high-dollar commitments alongside critical reflections on where the money is flowing—and why.

The United Arab Emirates made headlines with a bold $1.4 trillion, 10-year commitment to invest in the United States, a move that reflects the centrality of AI and tech collaboration in long-term statecraft. Meanwhile, BlackRock’s joint initiative with Microsoft, NVIDIA, and xAI signals continued investor appetite for large-scale AI infrastructure, with $100 billion earmarked for global data centers and energy solutions.

Several firms are also reinforcing their US presence: Hyundai announced a $21 billion investment, Siemens followed with $10 billion, and Schneider Electric added another $700 million—all aimed at fortifying AI-driven manufacturing and operations amid ongoing trade policy uncertainty.

Vietnam’s small businesses are setting the tone in Asia-Pacific, where 44% named AI their top tech investment for 2024. Fractal Analytics’ $13.7 million investment into India’s first reasoning model and Germany’s €2.1 million seed round for enterprise AI search show how national AI goals are increasingly shaped by local strategies and use cases.

Yet, not all attention is on infrastructure. Thought leaders at Man Group and other investment firms raised flags about the sustainability of AI stock valuations. An AI model under a top-performing fund has been flashing warnings on mega-cap tech stocks, including Nvidia. Still, audiences from pharma to finance are assessing AI’s value not just in terms of returns, but in ethics and relevance, particularly when it comes to pharma’s future and the realities of Artificial General Intelligence claims.

As global interest in AI capital remains high, this week’s updates highlight a shift from novelty to operational depth. More investment—yes—but also more scrutiny.

Previous SwissCognitive AI Radar: New AI Investment Funds and Strategic Expansions.

Our article does not offer financial advice and should not be considered a recommendation to engage in any securities or products. Investments carry the risk of decreasing in value, and investors may potentially lose a portion or all of their investment. Past performance should not be relied upon as an indicator of future results.

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Major AI Funding Shifts – SwissCognitive AI Investment Radar

The AI investment landscape continues to evolve, with new funding rounds and strategic commitments driving the industry forward. This week, key players across finance, technology, and infrastructure have made major moves to expand AI capabilities, focusing on both software and cloud expansion. Salesforce pledged $1 billion toward AI development in Singapore, while Honor committed $10 billion to integrating AI across its product line.

Investment priorities are shifting from AI chips to software, with analysts predicting that software firms will capture more value in the coming years. Microsoft is expanding its cloud and AI infrastructure in South Africa with a $298 million investment, reflecting the rising demand for AI-driven services. Meanwhile, Barclays analysts note that AI models are evolving from training-based systems to more advanced reasoning engines, signaling a new phase in AI capabilities.

DeepSeek’s breakthrough continues to drive activity in China’s venture capital sector, attracting fresh funding after years of stagnation. Elsewhere, private equity firms are adjusting their investment strategies to keep pace with AI-driven business transformations.

With AI playing a bigger role in stock markets, investor sentiment is shifting as automation takes on a larger role in financial decision-making. The rise of AI-powered fintech solutions, such as Finnomena’s partnership with Google Cloud, further highlights the increasing role of AI in investment strategies.

Stay tuned as we track these developments and more, bringing you the latest insights from the growing AI investment world.

Previous SwissCognitive AI Radar: $100B for AI Chips, $40B for AI Bets.

Our article does not offer financial advice and should not be considered a recommendation to engage in any securities or products. Investments carry the risk of decreasing in value, and investors may potentially lose a portion or all of their investment. Past performance should not be relied upon as an indicator of future results.

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$100B for AI Chips, $40B for AI Bets – SwissCognitive AI Investment Radar

AI investment shows no signs of slowing, with capital flowing across semiconductors, cloud AI, financial AI, and responsible AI initiatives. This week, TSMC is preparing a staggering $100 billion investment in U.S. chip production, reinforcing the U.S. AI supply chain. Meanwhile, Anthropic’s valuation tripled to $61.5 billion, after securing $3.5 billion in funding to keep pace with OpenAI and DeepSeek.

The private sector’s AI appetite remains insatiable. Blackstone’s Jonathan Gray emphasized AI’s dominance in global investment trends, while Guggenheim and billionaire investors assembled a $40 billion AI investment pool to fuel finance, sports, and media innovation. Meanwhile, Canva’s AI report revealed that 94% of marketers have now integrated AI into their operations, marking a fundamental shift in business strategy.

The global AI race is also drawing government interest. The European Commission announced a €200 billion mobilization for AI investments, alongside France’s €109 billion push, as President Macron aims to position Europe as a heavyweight in AI development. Across the globe, China’s Honor pledged $10 billion to AI investment, deepening ties with Google for a global expansion.

The infrastructure for AI applications continues to scale rapidly. DoiT announced a $250 million fund dedicated to AI-driven cloud operations, while Shinhan Securities backed Lambda Labs with a $9.3 million investment to advance NVIDIA GPU-powered AI cloud services. Meanwhile, Accenture is doubling down on AI decision intelligence, backing Aaru to improve AI-powered behavioral simulations.

Beyond the corporate sphere, responsible AI investments are gaining traction. Chinese firms are increasing spending on ethical AI as part of a broader strategy to align AI governance with innovation. Meanwhile, Blackstone committed $300 million to AI-driven Insurtech, supporting AI-powered safety solutions in insurance.

With tech giants, startups, and governments all placing massive bets on AI, the sector’s financial landscape is evolving faster than ever. Investors are watching closely as AI’s long-term ROI takes center stage.

How will the capital influx shape AI’s next phase? The coming months will bring more answers.

Previous SwissCognitive AI Radar: AI Expansion and This Week’s Top Investments.

Our article does not offer financial advice and should not be considered a recommendation to engage in any securities or products. Investments carry the risk of decreasing in value, and investors may potentially lose a portion or all of their investment. Past performance should not be relied upon as an indicator of future results.

Der Beitrag $100B for AI Chips, $40B for AI Bets – SwissCognitive AI Investment Radar erschien zuerst auf SwissCognitive | AI Ventures, Advisory & Research.

SwissCognitive Guest Blogger: Samir Anil Jumade – “The Relentless Tide of Technological Disruption: Are You Ready?”

The world is evolving at an unprecedented pace, driven by rapid technological advancements. Many industries that once seemed invincible have either vanished or are on the verge of collapse due to their failure to adapt. The rise of artificial intelligence (AI), automation, blockchain, and digital platforms is fundamentally reshaping how businesses operate.

In this article, we explore how past giants like Kodak and Nokia disappeared, how today’s industries are facing a similar existential crisis, and how individuals and businesses must prepare for this inevitable transformation.

The Rise and Fall of Industry Giants

Remember Kodak? In 1997, they employed 160,000 people and dominated the photography market, with their cameras capturing 85% of the world’s images. Fast forward a few years, and the rise of mobile phone cameras decimated Kodak, leading to bankruptcy and the loss of all those jobs. Kodak’s story isn’t unique. A host of once-dominant companies, like HMT, Bajaj, Dyanora, Murphy, Nokia, Rajdoot, and Ambassador, failed to adapt and were swept aside by the relentless tide of technological change. These weren’t inferior products; they simply couldn’t evolve with the times.

This isn’t just a nostalgic look back. It’s a stark warning. The world is changing faster than ever, and we’re on the cusp of another massive transformation – the Fourth Industrial Revolution. Think about how much has changed in the last decade. Now imagine the next ten years. Experts predict that 70-90% of today’s jobs will be obsolete within that time frame. Are we prepared?

Look at some of today’s giants. Uber, the world’s largest taxi company, owns no cars. Airbnb, the biggest hotel chain, owns no hotels. These companies, built on software and connectivity, are disrupting traditional industries and redefining how we live and work. This disruption is happening across all sectors.

Consider the legal profession. AI-powered legal software like IBM Watson can analyze cases and provide advice far more efficiently than human lawyers. Similarly, in healthcare, diagnostic tools can detect diseases like cancer with greater accuracy than human doctors. These advancements, while offering immense potential benefits, also threaten to displace a significant portion of the workforce.

The automotive industry is another prime example. Self-driving cars are no longer science fiction; they’re a rapidly approaching reality. Imagine a world where 90% of today’s cars are gone, replaced by autonomous electric or hybrid vehicles. Roads would be less congested, accidents drastically reduced, and the need for parking and traffic enforcement would dwindle. But what happens to the millions of people whose livelihoods depend on driving, car insurance, or related industries?

Even the way we handle money is transforming. Cash is becoming a relic of the past, replaced by “plastic money” and, increasingly, mobile wallets like Paytm. This shift towards digital transactions offers convenience and efficiency, but also raises questions about security, privacy, and the future of traditional banking.

From STD Booths to Smartphones: A Revolution in Communication

Think back to the time when STD booths lined our streets. These public call offices were once essential for long-distance communication. But the advent of mobile phones sparked a revolution that swept STD booths into obsolescence. Those who adapted transformed into mobile recharge shops, only to be disrupted again by the rise of online mobile recharging. Today, mobile phone sales are increasingly happening directly through e-commerce platforms like Amazon and Flipkart, further highlighting the rapid pace of change.

The Evolving Definition of Money

The concept of money itself is undergoing a radical transformation. We’ve moved from cash to credit cards, and now mobile wallets are gaining traction. This shift offers convenience and efficiency, but it also has broader implications. As we move towards a cashless society, we need to consider the potential impact on financial inclusion, security, and privacy.

The Message is Clear: Adapt or Be Left Behind

The message is clear: adaptation is no longer a choice; it’s a necessity. We must embrace lifelong learning and upskilling to navigate this rapidly changing landscape. We need to foster creativity, critical thinking, and problem-solving skills – qualities that are difficult for machines to replicate. The future belongs to those who can innovate, adapt, and thrive in a world increasingly shaped by technology. The question is: will you be ready?

Additional Points to Consider:

· The environmental impact of technological advancements, both positive and negative.

· The ethical considerations surrounding AI and automation.

· The role of government and education in preparing the workforce for the future.

· The potential for new industries and job roles to emerge. By staying informed and proactive, we can harness the power of technology to create a better future for all.

References:

1. D. Deming, P. Ong, and L. H. Summers, “Technological Disruption in the Labor Market,” National Bureau of Economic Research, Working Paper No. 33323, Jan. 2025.
2. K. Hötte, M. Somers, and A. Theodorakopoulos, “Technology and Jobs: A Systematic Literature Review,” arXiv preprint arXiv:2204.01296, Apr. 2022.
3. D. Acemoglu and P. Restrepo, “Assessing the Impact of Technological Change on Similar Occupations,” Proceedings of the National Academy of Sciences, vol. 119, no. 40, e2200539119, Oct. 2022.
4. D. Acemoglu and P. Restrepo, “Occupational Choice in the Face of Technological Disruption,” National Bureau of Economic Research, Working Paper No. 29407, Oct. 2021. 5.S. Y. Lu and R. Zhao, “Artificial Intelligence for Data Classification and Protection in Cross-Border Transfers,” IEEE Transactions on Big Data, vol. 7, no. 3, pp. 536-545, 2021.

About the Author:

Samir Jumade is a passionate and experienced Blockchain Engineer with over three years of expertise in Ethereum and Bitcoin ecosystems. As a Senior Blockchain Engineer at Woxsen University, he has led innovative projects, including the Woxsen Stock Exchange and Chain Reviews, leveraging smart contracts, full nodes, and decentralized applications. With a strong background in Solidity, Web3.js, and backend technologies, Samir specializes in optimizing transaction processing, multisig wallets, and blockchain architecture.

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AI Market Adjustments and Billion-Dollar Bets – SwissCognitive AI Investment Radar

The AI investment landscape remains as active as ever, with Alphabet announcing a staggering $75 billion commitment to AI infrastructure. This substantial bet highlights Big Tech’s continued push into AI dominance, following Meta’s $240 billion market value surge as investors back its open-source AI approach. Meanwhile, SoftBank is doubling down on AI, unveiling a joint venture with OpenAI in Japan and backing a $230 million investment into Indian AI startup Krutrim as the country accelerates its AI ambitions.

While these headline moves dominate discussions, AI hype versus reality is becoming a growing concern for investors. Early Nvidia investor Jonathan Cohen warns about “AI washing,” with companies inflating their AI capabilities to attract capital. This skepticism extends to financial institutions, where banks are ramping up AI investments, yet most are focused on incremental gains rather than disruptive overhauls.

Across the Atlantic, European AI startups raised $8 billion in 2024, setting the stage for the upcoming Artificial Intelligence Action Summit in Paris, where global leaders will debate AI’s role in economic growth. In fintech, AI-powered tools are attracting fresh funding, with Jump securing $20 million to develop AI-driven financial advisory solutions, while Marlin Equity Partners takes a majority stake in Napier AI, reinforcing AI’s role in financial crime prevention.

For investors looking at the financial impact of AI, new data suggests that mid-sized businesses can break even on AI investments within 9.5 months, achieving a 281% ROI in just three years. Yet, with Alphabet set to report earnings soon, investors are keen to scrutinize its AI-related capital expenditures, questioning whether such massive spending will translate into real returns.

Finally, China-based DeepSeek remains a wildcard in the AI trade, following its disruptive AI model that rattled the market last week. Whether its breakthrough is a game-changer or an overhyped anomaly remains a key debate among industry watchers.

As AI investments continue to shape global industries, we’ll be tracking the key shifts, opportunities, and market reactions in next week’s AI Investment Radar.

Previous SwissCognitive AI Radar: The AI Market Shake-Up: Where the Investments Are Headed.

Our article does not offer financial advice and should not be considered a recommendation to engage in any securities or products. Investments carry the risk of decreasing in value, and investors may potentially lose a portion or all of their investment. Past performance should not be relied upon as an indicator of future results.

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Dalith Steiger-Gablinger, Co-Founder SwissCognitive – “AI Takes Center Stage at Davos 2025: A SwissCognitive Perspective”

As the snow-capped peaks of Davos played host to the World Economic Forum 2025, the air was thick with excitement and a palpable sense of urgency. This year’s theme, “Collaboration for the Intelligent Age,” set the stage for intense discussions on artificial intelligence (AI) and its potential to reshape our world. As co-founders of SwissCognitive, Andy Fitze and I, Dalith Steiger, had the privilege of being flies on the wall at various public side events, soaking in the insights and debates that unfolded.

The buzz around AI was impossible to ignore, with sessions ranging from “Harnessing AI for Social Innovation” to “The Pulse of AI Innovation”. Clearly, the technology has moved beyond mere hype and into the realm of transformative force. As James Ong, one of the panellists, aptly put it, “We need to rethink the philosophy and the relationship between AI and human beings.” AI is not just a tool; it’s a paradigm shift that will redefine how we work, live, and interact with the world around us.”

“We need to rethink the philosophy and the relationship between AI and human beings.” James Ong, Founder and Director of Artificial Intelligence International Institute [AIII]

One of the most striking aspects of the discussions was the emphasis on collaboration. Gone are the days of siloed AI development. The consensus at Davos was clear: to harness the full potential of AI and ensure its benefits are widely distributed, we need unprecedented levels of cooperation between governments, businesses, and civil society.

Another discussion that deeply resonates with our vision at SwissCognitive is the AI discussion in avoiding the pitfalls of the digital divide, emphasising the need for AI to “lift all boats” rather than exacerbate existing inequalities. We strongly advocated for inclusive AI development.

The ethical implications of AI were another hot topic. The sentiment that we are not just building algorithms; we are shaping the future of humanity was echoed across multiple panels, with discussions ranging from AI’s impact on privacy to its potential to either mitigate or exacerbate climate change.

As we navigated the bustling streets of Davos, Andy and I found ourselves in impromptu discussions with fellow attendees. One of the enlightening discussions was while waiting for the Meta hot chocolate or queuing for the entrance of the Dome. One thing that was present through all our exchanges. People engaged openly, with respect and humour.

The energy was infectious, with everyone from startup founders to policymakers eager to share their perspectives on AI’s future. One conversation that stuck with us was with a young entrepreneur who’s using AI to tackle food waste in developing countries. It was a powerful reminder of AI’s potential to address some of our most pressing global challenges and SDGs.

The governance of AI emerged as a critical theme throughout the forum. With the rapid pace of AI development, there’s a growing recognition that our regulatory frameworks need to evolve just as quickly. The call for adaptive, agile governance structures was loud and clear. We shouldn’t govern 21st-century technology with 20th-century laws!

“We shouldn’t govern 21st-century technology with 20th-century laws!” during a Chatham rules debate

Perhaps the most stimulating discussions, however, centred around the potential of AI to complement human capabilities rather than replace them. AI should be seen as a co-pilot, not an autopilot. As advocates of collaboration between humans and AI, Andy and I were heartened to hear leaders from different sectors emphasise the importance of involving humans in development.

“AI should be seen as a co-pilot, not an autopilot.” during a Chatham rules debate

The Open Source Revolution: A Game-Changer in the Global AI Race

Another topic that consistently emerged in our conversations was the growing importance of open source in AI development. This trend is not just reshaping the technological landscape; it’s also challenging the traditional narrative of national AI supremacy.

The United States’ commitment to investing a staggering $500 billion in AI over the next three years is undoubtedly headline-grabbing. However, as Yann LeCun, VP & Chief AI Scientist at Meta, astutely pointed out during several discussions in Davos, the real story might be the rise of open-source models rather than any single nation’s dominance.

LeCun’s perspective is particularly illuminating: “To people who see the performance of DeepSeek and think: ‘China is surpassing the US in AI.’ You are reading this wrong. The correct reading is: ‘Open source models are surpassing proprietary ones.'”

“Open source LLM models are surpassing proprietary ones.” Yann LeCun, VP & Chief AI Scientist at Meta

This shift towards open source is democratising AI development on a global scale. LeCun explained that “DeepSeek has profited from open research and open source (e.g. PyTorch and Llama from Meta). They came up with new ideas and built them on top of other people’s work. Because their work is published and open source, everyone can profit from it. That is the power of open research and open source.”

Indeed, the open-source movement in AI is gaining momentum rapidly. Models like Llama 2, Mistral, and DeepSeek are not just matching but, in some cases, surpassing the capabilities of proprietary giants like GPT-4 and Google Gemini. This trend is reshaping the AI ecosystem, offering adaptability, cost-efficiency, and privacy compliance that many enterprises find increasingly attractive.

The implications of this shift are profound. While national investments like the U.S.’s $500 billion commitment are crucial, the collaborative nature of open-source development means that innovations can come from anywhere. This global pool of talent and ideas could potentially accelerate AI development far beyond what any single nation or company could achieve alone.

Moreover, the open source movement aligns with the growing calls for AI transparency and accountability. One tech executive at Davos noted, “We’re not just building algorithms; we’re shaping the future of humanity.” Open source development allows for greater scrutiny and collective problem-solving, potentially leading to safer and more ethical AI systems.

“We’re not just building algorithms; we’re shaping the future of humanity.” CEO during a Panel in Davos

As we reflect on the discussions at Davos, it’s clear that the future of AI is not just about who can invest the most money. It’s about fostering a global ecosystem of innovation, collaboration, and shared progress. The rise of open source in AI is not just a technological trend; it’s a paradigm shift that could redefine how we approach some of the world’s most pressing challenges.

In this new landscape, the winners will not necessarily be the nations or companies with the deepest pockets but those who can best harness the collective intelligence of the global AI community. As we move forward, it will be fascinating to see how this open-source revolution continues to shape the future of AI and, by extension, our world.

“In this new landscape, the winners will not necessarily be the nations or companies with the deepest pockets, but those who can best harness the collective intelligence of the global AI community.” Andy Fitze, Co-Founder SwissCognitive

As the forum drew to a close, we left Davos with a sense of cautious optimism. The challenges ahead are significant, but so too is the collective will to address them. The conversations made it clear that we are at a pivotal moment in the development of AI, and the decisions we make now will shape its trajectory for years to come. This future belongs to the young generations. We, the older generation, must be aware that every decision we make won’t affect us, as it will affect the younger generations! This responsibility is imperative!

As we return to our work at SwissCognitive, we’re more energised than ever to continue fostering dialogue and collaboration in AI. The insights gained at Davos will undoubtedly inform our efforts to build a future where AI truly lifts all boats, creating a rising tide of innovation and prosperity for all.

“We are the change we wanna see”, Yip Thy Diep Ta, Founder & CEO @ J3D.AI, House of Collaboration

In reflecting on our experience, Andy remarked, “The technical possibilities of AI are astounding, but it’s the human ingenuity in applying these technologies that will truly change the world.” I couldn’t agree more, adding, “AI has the power to amplify our human potential, but only if we approach its development with empathy, wisdom, and a commitment to inclusivity.“

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Who’s Investing and Why in AI – SwissCognitive AI Investment Radar

From ByteDance’s $12 billion AI chip investment in 2025, aiming to strengthen its infrastructure, to Trump’s announcement of up to $500 billion in private sector investments, the focus on AI-driven infrastructure continues to expand across industries and geographies.

The UK’s AI sector has been attracting £200 million per day in private investment, highlighting strong confidence in its long-term growth potential. Meanwhile, China’s newly established $8.2 billion AI investment fund comes as a direct response to tightened US trade controls, signaling a strategic push to build domestic AI capabilities amid geopolitical challenges. On a different note, Capgemini’s research finds that 67% of businesses in Singapore see AI as their top investment priority for 2025.

Private firms are also positioning themselves for growth, with Nvidia set to invest over $500 million in a new AI research facility in Israel, aiming to accelerate advancements in AI technologies. Similarly, DDN’s $300 million funding from Blackstone is positioning the company as a leader in AI storage solutions, building on its established presence in high-performance computing.

However, despite the influx of investments, many companies are grappling with the ROI puzzle of AI, as leaders weigh the balance between potential and profitability. Some businesses are even considering selling non-core assets to fund AI projects, underscoring the financial pressures that come with large-scale adoption.

As AI investments continue to shape the global economy, staying informed about emerging trends and strategic priorities will be critical for stakeholders looking to navigate this rapidly evolving space. Join us next week too!

Previous SwissCognitive AI Radar: AI in Corporate Budgets and National Strategies.

Our article does not offer financial advice and should not be considered a recommendation to engage in any securities or products. Investments carry the risk of decreasing in value, and investors may potentially lose a portion or all of their investment. Past performance should not be relied upon as an indicator of future results.

Der Beitrag Who’s Investing and Why in AI – SwissCognitive AI Investment Radar erschien zuerst auf SwissCognitive | AI Ventures, Advisory & Research.

SwissCognitive Guest Blogger: Shivi Gupta – “Who Owns the Sound? AI in Music and the Legal Landscape”

Attending a live gig, enjoying the music from your favourite artist or band? What if it can come to your couch, with the feeling that they are performing right there in front of you? But hey, who is producing the music? Is it AL or Al

The creation is revered, but more than the creation, the creators are worshipped. Recently, Sony, Universal, and Warner have sued Suno and Udio (GenAI music startups), claiming copyright infringement in training models, to protect the artists affiliated with these giants.

Major record labels are protecting their clients, the artists, the great ones who produce music that can rarely be replicated. But in the day and age of generative AI or (GPT Generative Pretrained transformer), music is also replicated by machine learning algorithms to make songs sound like the original creators.

As one of the popular web3 music websites Unchainedmusic.io wrote in their article “Deepfake vocal synthesizers, an innovation in AI technology, can make a singer’s voice sound like a famous artist. Under English and EU law, it is unlikely that a style of singing, whether generated through deep learning, AI or vocal imitation, is protectable by copyright. However, other forms of intellectual property, such as passing off, may be relevant in some jurisdictions.”

There is no common universal law against intellectual property, and most countries have their own rules, copyrights, patents. Any commercial use begets a request or a permission from the creator who owns the intellectual property of their voice.

Problem:

All music can be created eclectically with different styles, lyrics and genres. GenAI music might saturate the market with more and more music generated by machine learning algorithms.

Possibility:

Music lovers will rely on humans creating songs as it has the emotional factor, the timber, tone, pitch, stretch, diction, accent are some of the unique human characteristics which helps us being empathetic and understanding of the singer’s mindset.

Probability:

These AI created songs will be used by ad companies and video editors to feature a product or sell a service with an attractive UX.

Musicians will continue creating great records and go on tours, and fill stadiums.

Editors, marketers, sales representatives will use GenAI music in elevators, advertisements, branding, showcase of their products and services. The GenAI music will complement the product *-as-a-service.

Proposed Solution:

Follow rules created by the countries in which these AI tools are used. For classical music the law states that as mentioned by edwardslaw.ca “it covers original literary, dramatic, musical, and artistic works of authorship. This is during the lifetime of the author, the remainder of the calendar year in which the author dies, plus 70 additional years (the Canadian copyright lifespan recently increased from 50 to 70 years in June of 2022). Once this term expires, the work becomes public domain. “ So works from Beethoven, Mozart et al. can be performed in public without permission or paying a fee – royalty free. So any music which has been recorded prior to 1974 can be used since it has entered the public domain, but if you have the London symphony orchestra uploaded their recording of Beethoven’s symphony number 5, one can’t use that without the permission from the orchestra.

For example this particular youtube video can’t be reused without BBC’s permission:

More on copyright of voices: “According to Herndon, much of vocal mimicry comes down to personality rights. “You cannot copyright a voice, but an artist retains exclusive commercial rights to their name and you cannot pass off a song as coming from them without their consent,” she wrote in a recent Twitter thread, citing previous legal cases related to vocal impersonation.”

More about ethics in AI.

About the Author:

Shivi Gupta is a  passionate data scientist and full-stack developer, working in the industry for over a decade. An AI expert navigating through the world of real vs generated content. With a focus on ethics , he creates websites, mobile applications, chatbots all powered by AI.

Der Beitrag Who Owns the Sound? AI in Music and the Legal Landscape erschien zuerst auf SwissCognitive | AI Ventures, Advisory & Research.

SwissCognitive Guest Blogger:  HennyGe Wichers, PhD – “What Happens When AI Commodifies Emotions?”

Imagine your customer service chatbot isn’t just solving your problem – it’s listening, empathising, and sounding eerily human. It feels like it cares. But behind the friendly tone and comforting words, that ‘care’ is just a product, finetuned to steer your emotions and shape your decisions. Welcome to the unsettling reality of empathetic AI, where emotions and mimicked – and monetised.

In 2024, empathetic AI took a leap forward. Hume.AI gave large language models voices that sound convincingly expressive and a perceptive ear to match. Microsoft’s Copilot got a human voice and an emotionally supportive attitude, while platforms like Character.ai and Psychologist sprouted bots that mimic therapy sessions. These developments are paving the way for a new industry: Empathy-as-a-Service, where emotional connection isn’t just simulated, it’s a product: packaged, scaled, and sold.

This is not just about convenience – but about influence. Empathy-as-a-Service (EaaS), an entirely hypothetical but now plausible product, could blur the line between genuine connection and algorithmic mimicry, creating systems where simulated care subtly nudges consumer behaviour. The stakes? A future where businesses profit from your emotions under the guise of customer experience. And for consumers on the receiving end, that raises some deeply unsettling questions.

A Hypothetical But Troubling Scenario

Take an imaginary customer service bot. One that helps you find your perfect style and fit – and also tracks your moods and emotional triggers. Each conversation teaches it a little more about how to nudge your behaviour, guiding your decisions while sounding empathetic. What feels like exceptional service is, in reality, a calculated strategy to lock in your loyalty by exploiting your emotional patterns.

Traditional loyalty programs, like the supermarket club card or rewards card, pale in comparison. By analysing preferences, moods, and triggers, empathetic AI digs into the most personal corners of human behaviour. For businesses, it’s a goldmine; for consumers, it’s a minefield. And it raises a new set of ethical questions about manipulation, regulation, and consent.

The Legal Loopholes

Under the General Data Protection Regulation (GDPR), consumer preferences are classified as personal data, not sensitive data. That distinction matters. While GDPR requires businesses to handle personal data transparently and lawfully, it doesn’t extend the stricter protections reserved for health, religious beliefs, or other special categories of information. This leaves businesses free to mine consumer preferences in ways that feel strikingly personal – and surprisingly unregulated.

The EU AI Act, introduced in mid-2024, goes one step further, requiring companies to disclose when users are interacting with AI. But disclosure is just the beginning. The AI Act doesn’t touch using behavioural data or mimicking emotional connection. Joanna Bryson, Professor of Ethics & Technology at the Hertie School, noted in a recent exchange: “It’s actually the law in the EU under the AI Act that people understand when they are interacting with AI. I hope that might extend to mandating reduced anthropomorphism, but it would take some time and court cases.”

Anthropomorphism, the tendency to project human qualities onto non-humans, is ingrained in human nature. Simply stating that you’re interacting with an AI doesn’t stop it. The problem is that it can lull users into a false sense of trust, making them more vulnerable to manipulation.

Empathy-as-a-Service could transform customer experiences, making interactions smoother, more engaging, and hyper-personalised. But there’s a cost. Social media already showed us what happens when human interaction becomes a commodity – and empathetic AI could take that even further. This technology could go beyond monetising attention to monetising emotions in deeply personal and private ways.

A Question of Values

As empathetic AI becomes mainstream, we have to ask: are we ready for a world where emotions are just another digital service – scaled, rented, and monetised? Regulation like the EU AI Act is a step in the right direction, but it will need to evolve fast to keep pace with the sophistication of these systems and the societal boundaries they’re starting to push.

The future of empathetic AI isn’t just a question of technological progress – it’s a question of values. What kind of society do we want to build? As we stand on the edge of this new frontier, the decisions we make today will define how empathy is shaped, and sold, in the age of AI.

About the Author:

HennyGe Wichers is a technology science writer and reporter. For her PhD, she researched misinformation in social networks. She now writes more broadly about artificial intelligence and its social impacts.

Der Beitrag What Happens When AI Commodifies Emotions? erschien zuerst auf SwissCognitive | AI Ventures, Advisory & Research.