Advertisers are increasingly shifting their spending from traditional TV to retail media networks like those of Amazon, Walmart, and Kroger, which are expected to see ad spending more than double by 2027. This shift is driven by the valuable first-party data these retailers provide and the decline in traditional TV viewership. Retail media networks offer a new frontier for reaching consumers directly at points of sale, leveraging digital screens, websites, and apps to optimize ad exposure and effectiveness.
Gap's Old Navy is facing a lawsuit alleging that its AI-powered chatbot participates in illegal wiretapping by logging, recording, and storing conversations without informing consumers. Similar charges have been filed against other companies, highlighting the need for regulations around AI and online privacy. Experts suggest that companies will likely add warning labels to inform customers about data recording and sharing. However, concerns remain about the lack of transparency regarding the data used to train AI models and the potential misuse of personal information. The US lags behind Europe and Canada in terms of AI regulations, with a patchwork system of state-level privacy laws. The emerging regulations offer varying levels of protection, but challenges arise in deleting personal information once it has been used to train AI models. Privacy warnings and repeated disclosure are seen as crucial in addressing the ethical issues surrounding AI chatbots and personal data.
A former employee of the Consumer Financial Protection Bureau (CFPB) sent confidential consumer data on approximately 256,000 people to their personal email account, in what the agency described as a "major incident." The data included personally identifiable information, such as names and transaction-specific account numbers, of consumers of seven institutions. The CFPB says the employee is no longer with the agency, and the matter has been referred to the Office of the Inspector General. The agency has found no evidence that the staffer further disseminated the confidential data after it was sent to their personal email account.
